Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 617

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 617
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    $2,974  
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    $2,974  
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7.
NOTES PAYABLE AND DERIVATIVE LIABILITY

Background

On
October 14, 2024, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) for the purchase of
senior secured convertible notes (the “Note”) with an institutional investor (the “Holder”). The principal amount
for the initial note is $45.0 million (the “Initial Principal Amount”), with an option for the Company to issue additional
principal in the amount of $30.0 million (the “Additional Principal Amount” and, together with the Initial Principal Amount,
the “Principal Amount”) of convertible notes to the Holder, subject to certain limitation.

The
Note will rank senior to all outstanding and future indebtedness of the Company. Beginning on January 1, 2025, the Holder may elect to
require the Company to partially repay the Notes up to $1.8 million monthly prior to April 1, 2025, and up to $3.5 million monthly on
and after April 1, 2025, plus a 10% premium. In lieu of electing a partial repayment in each of the stated months, the Holder has the
right to convert the Note to shares of the Company’s common stock at a conversion price of $0.7462 prior to June 1, 2025 and $1.5960
on or after June 1, 2025, subject to certain conditions.

Additionally,
the Company has the option to require the Holder to convert the entire Note to shares of common stock if the share price exceeds $2.3940
on each of 20 consecutive VWAP Trading Days, subject to certain other equity conditions. If not fully repaid or converted, the end of
term maturity balance is the outstanding principal balance of the Note multiplied by 110% and matures on October 1, 2026. The Note bears
zero coupon. Pursuant to terms of the Note, the Company will maintain minimum liquidity of $30.0 million for the duration of the Note
term, subject to decreases beginning on May 1, 2025.

On
October 23, 2024, the Purchase Agreement closed and