Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 105

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 105
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crease in other income during the year ended December 31, 2024 compared to the same period in 2023 is primarily due to a payment received
in 2023 of $3.0 million as an incentive to terminate our previous building lease.

Income
Taxes

During
the years ended December 31, 2024 and 2023, we recognized tax expense of $0.5 million and $1.1 million, respectively, mainly related
to income in foreign jurisdictions offset, 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 in Q2 2023. The change in income tax expense during the year ended December
31, 2024 was largely the result of lower profitability in foreign jurisdictions. As of December 31, 2024, we had net operating loss carryforwards
of approximately $498.0 million for federal income tax reporting purposes. In addition, we have research and development tax credits
of $11.1 million. During 2024, $28.2 million federal net operating losses and $0.2 million general business credits expired unused. A
majority of the net operating loss carryforwards and research and development credits available to offset future taxable income, if any,
will expire in varying amounts from 2025 to 2044, if not previously used.

27

In
certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our shareholders
during any three-year period would result in a limitation on our ability to use a portion of our net operating loss carryforwards.

We
recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. We did not have any unrecognized tax benefits
at December 31, 2024 or at December 31, 2023.

Liquidity
and Capital Resources

We
have incurred significant losses since inception. We have funded operations to date primarily through the sale of common stock,
convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues,
product sales, and licensing activities. As of December 31, 2024, the Company had $54.5 million in cash and cash equivalents and
$20.2 million in short-term investment securities, or $74.7 million total. In February 2025, we raised net proceeds of $7.8