Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 131

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 131
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Financial
instruments that potentially subject the Company to a concentration of credit risk are primarily cash, cash equivalents, and investment
securities. As of March 31, 2025, cash and cash equivalents are comprised of operating checking accounts and short-term highly rated
money market savings accounts. Short-term investments are comprised of highly rated corporate bonds and U.S. Treasury securities.

For
the three months ended March 31, 2025, a leading manufacturer of agricultural equipment and an automotive supplier accounted for $0.5
million and $0.1 million of total revenue, respectively, representing 80% and 14% of total revenue, respectively. For the same period
in 2024, a major global commercial trucking OEM accounted for $0.5 million in revenue, representing 52% of total revenue, and a leading
manufacturer of agricultural equipment accounted for $0.3 million in revenue, representing 33% of total revenue.

As
of March 31, 2025, accounts receivable related to these customers accounted for 41% of total accounts receivable, net of allowances on
the condensed consolidated balance sheets. Also as of March 31, 2025, the Company’s contract liability with one customer accounted for 55% of total accounts
receivable, net of allowances.

Typically,
a significant concentration of components and the products sold are manufactured and obtained from single or limited-source suppliers.
The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in
the supply chain of components from these suppliers could subject the Company to risks and uncertainties including, but not limited to,
increased cost of sales, possible loss of revenues, or significant delays in product development or product deliveries, any of which
could adversely affect the Company’s financial condition and operating results.

Warrant
Liability

The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s
specific terms and applicable authoritative guidance included in Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity, and ASC 815, Derivatives
and Hedging. The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, whether the warrants
meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification
under ASC 815. This assessment, which requires the use of professional judgment