Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 61

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 4
Chunk 61
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 note in the principal amount of $45.0 million. Pursuant to the securities purchase
agreement dated October 14, 2024, we can issue up to an aggregate principal amount of $75.0 million in senior secured convertible notes
to the holder of the October 2024 convertible note, subject to certain conditions and limitations. The terms of any additional convertible
notes issued pursuant to the October 2024 securities purchase agreement would be similar to the terms of the existing convertible note.

The
convertible note provides for certain events of default, such as our failing to make timely payments under the note and failing to timely
comply with the reporting requirements of the Exchange Act. The October 2024 securities purchase agreement and the convertible note also
contain customary affirmative and negative covenants, including limitations on incurring additional indebtedness, the creation of additional
liens on our assets, and entering into investments, as well as a minimum liquidity requirement.

Our
ability to remain in compliance with the covenants under the convertible note depends on, among other things, our operating performance,
competitive developments, financial market conditions and stock exchange listing of our common stock, all of which are significantly
affected by financial, business, economic and other factors. We are not able to control many of these factors. Accordingly, our cash
flow may not be sufficient to allow us to pay principal on the note and any additional convertible notes issued under the securities
purchase agreement or meet our other obligations thereunder. Our level of indebtedness under the securities purchase agreement could
have other important consequences, including the following:

●we
                                            may need to use a substantial portion of our cash flow from operations to pay principal on
                                            the convertible note and any additional convertible notes issued under the securities purchase
                                            agreement, which would reduce funds available to us for other purposes such as working capital,
                                            capital expenditures, potential acquisitions and other general corporate purposes;

●we
                                            may need to use a substantial portion of our cash flow from operations to pay principal on
                                            the convertible note and any additional convertible notes issued under the securities purchase
                                            agreement, which would reduce funds available to us for other purposes such as working capital,
                                            capital expenditures, potential acquisitions and other general corporate purposes;

●we
                                            may be unable to comply with financial and other covenants related to the convertible note,
                                            which could result in an event of default that, if not cured or waived, may result in acceleration
                                            of the note and any additional convertible