Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 167

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 167
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    2025  
    2024  
    $
    change  
    %
    change 
  
    Three Months Ended September 30, 
    $241  
    $190  
    $51  
     26.8 
  
    Nine Months Ended September 30, 
     985  
     3,046  
     (2,061) 
     (67.7)

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 nine months ended September 30, 2025 compared to the same period in 2024 was primarily due to higher sales
of sensors to industrial customers in the 2024 period driven by shipments of MOVIA L sensors to Daimler Truck North America and affiliates
as part of RFQ evaluation processes.

24

Cost
of Revenue

    (in thousands) 
    2025  
    %
                                            of
                                                                                revenue  
    2024  
    %
                                            of
                                                                                revenue  
    $
    change  
    %
    change 
  
    Three Months Ended September 30, 
    $957  
     397.1  
    $583  
     306.8  
    $374  
     64.2 
  
    Nine Months Ended September 30, 
     2,223  
     225.7  
     3,414  
     112.1  
     (1,191) 
     (34.9)

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