Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 600

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 600
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 with U.S. GAAP requires the Company to make estimates and assumptions that affect the
reported amounts therein. The most significant estimates and assumptions relate to business combinations, valuation of intangibles, valuation
of derivative liabilities, revenue recognition, inventory valuation, valuation of share-based payments, income taxes, depreciable lives
assessment and related disclosure of contingent assets and liabilities. Due to the inherent uncertainty involved, actual results reported
in future periods could differ from those estimates.

Foreign
Currency Translation

Foreign
currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other
than the functional currency. Realized gains and losses on those foreign currency transactions are included in determining net loss for
the period of exchange and are recorded in other income in the consolidated statements of operations.

    39

Segment
Information

The
Company determines operating segments based on how the chief operating decision maker (“CODM”) manages the business, makes
operating decisions around the allocation of resources, and evaluates operating performance. The CODM is the Executive Management team.
The Company has determined that it operates in one operating segment and one reportable segment, relating to the sale and servicing of
lidar hardware and software, as the CODM regularly reviews financial information presented on a consolidated basis. Financial information
regularly reviewed by the CODM includes revenue, income or loss from operations, and net income or loss.

Business
Combination

Business
combinations are accounted for under the acquisition method. As such, the fair value of the Ibeo purchase consideration was allocated
to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date.
The excess of the fair value of the underlying net assets acquired and liabilities assumed over the purchase consideration was included
in bargain purchase gain, net of tax in the consolidated statements of operations. Such valuations require management to make significant
estimates and assumptions, especially with respect to intangible assets.

Cash
and Cash Equivalents and Fair Value of Financial Instruments

Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction
between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes
a three level fair value inputs hierarchy and requires an entity to maximize the use of observable valuation inputs and