Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 252

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 2
Chunk 252
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2023  
    $
    change  
    %
    change 
  
    (In thousands) 

    Interest expense 
    $(4,457) 
    $(80) 
    $(4,377) 
     5,471.3 

The
increase in interest expense during the year ended December 31, 2024 compared to the same period in 2023 relates to $4.4 million of non-cash
interest expense on notes payable that originated in October 2024. See Part II, Item 8, Note 7. Notes Payable and Derivative Liability
for additional discussion.

Unrealized
loss on derivative liability

    2024  
    2023  
    $
    change  
    %
    change 
  
    (In
    thousands) 

    Unrealized loss
    on derivative liability 
    $(8,866) 
    $-  
    $(8,866) 
     - 

Unrealized
loss on derivative liability reflects the revaluation of our derivative liability associated with notes payable as of December 31, 2024.
Due to the increase in the fair value of the derivative liability as of December 31, 2024 relative to its initial measurement on October
23, 2024, we recognized an unrealized loss during 2024. See Part II, Item 8, Note 7. Notes Payable and Derivative Liability for
additional discussion.

Other
income (expense), net 

    2024  
    2023  
    $
    change  
    %
    change 
  
    (In thousands) 

    Other income 
    $2,434  
    $5,590  
    $(3,156) 
     (56.5)

The
decrease in other income during the year ended December 31, 2024 compared to the same period in 2023 is primarily due to a payment received
in 2023 of $3.0 million as an incentive to terminate our previous building lease.

Income
Taxes

During
the years ended December 31, 2024 and 2023, we recognized tax expense of $0.5 million and $1.1 million, respectively, mainly related
to income in foreign jurisdictions offset, partially offset by a deferred income tax benefit generated by the reduction to a deferred
tax liability created as a result of the acquisition of Ibeo