Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 162

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 162
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 was available under this sales agreement.

13.
INCOME TAXES

The
Company recognized income tax expense of $0.2 million and $0.1 million during the three months ended September 30, 2025 and 2024, respectively,
and $0.3 million and $0.4 million during the nine months ended September 30, 2025 and 2024, respectively. Income tax expense for the
nine months ended September 30, 2025 was largely the result of income in foreign jurisdictions, 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 assets in the first
quarter of 2023. The change in income tax expense during the quarter ended September 30, 2025 was largely the result of profitability
in foreign jurisdictions.

As
of September 30, 2025, the Company continues to have no unrecognized tax positions.

14.
RESTRUCTURING CHARGES

In
the first half of 2024, to better align the Company’s resources to support business needs, the Company reduced the global workforce
by approximately 37%. The Company recognized approximately $5.8 million in restructuring and related reorganization charges during the
nine months ended September 30, 2024 which is recorded within research and development expense and sales, marketing, general and administrative
expense on the condensed consolidated statement of operations. The charges were predominately related to employee severance and benefit
costs. Consistent with the impairment analysis for this period, the workforce reduction and restructuring included, among other things,
impacts from the de-emphasis on the Company’s MOSAIK software business. There were no restructuring charges during the nine months
ended September 30, 2025.

15.
SUBSEQUENT EVENTS

Subsequent
to the date of these financial statements, on October 1, 2025, the Company entered into an Asset Purchase Agreement (the
“APA”) with Scantinel Photonics GmbH (“Scantinel”), a Germany-based developer of 1550nm FMCW LiDAR
technology, pursuant to which, subject to the satisfaction or waiver of closing conditions, the
Company has agreed to acquire from Scantinel certain assets related to Scantinel’s 1550nm FMCW ultra-long range LiDAR sensor
business. Under the APA, the Company has also agreed to advance operating funds to support Scantinel’s operations prior to