Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 156

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 156
---
    Three Months Ended March 31, 
    $589  
    $956  
    $(367) 
     (38.4)

Revenues
are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration
that we expect to receive in exchange for those goods or services. We recognize revenue either at a point in time, or over time, depending
upon the characteristics of the individual contract. If control of the deliverable(s) occurs over time, the revenue is recognized in
proportion to the transfer of control. If control passes to the customer only upon completion and transfer of the asset, revenue is recognized
at the completion of the contract.

The
decrease in revenue for the three months ended March 31, 2025 compared to the same period in 2024 was primarily due to shipments
of MOVIA L sensors to Daimler Truck North America and affiliates in the first quarter of 2024 as part of their RFQ evaluation
process.

Cost
of revenue

    (in
    thousands) 
    2025  
    %
    of Revenue  
    2024  
    %
    of Revenue  
    $
    change  
    %
    change 
  
    Three Months Ended March 31, 
    $550  
     93.4  
    $1,277  
     133.6  
    $(727) 
     (56.9)

Cost
of revenue includes both direct and allocated indirect costs of products and services sold to customers. Direct costs include labor,
materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers,
in the manufacture of these products. Indirect costs include labor, overhead, and other costs associated with operating our manufacturing
capabilities and our research and development department. Overhead includes the costs of procuring, inspecting and storing material,
facility and other costs, and is allocated to cost of revenue based on the proportion of indirect labor which supported revenue activities.

Cost
of revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of overhead expense
and the volume of direct material purchased. The decrease in cost of revenue for the three months ended March 31, 2025 compared to the
same period in 2024 was primarily due to decreased revenue and the revenue mix.

Research
and development expense

    (in