Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 150

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 150
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 depreciable life of assets and leasehold improvements are limited by the expected
lease term, unless the Company is reasonably certain to exercise the purchase option.

In
September 2021, the Company entered into a lease agreement for product testing and lab space in Redmond, Washington which commenced in
November 2021. In addition to base rent, the Company pays additional rent comprised of a proportionate share of any operating expenses,
real estate taxes, and management fees. The lease, which expires in July 2032, includes an option to extend the term for one ten-year
renewal period.

In
September 2021, the Company entered into a lease agreement for office space in Redmond, Washington which commenced in December 2022.
In addition to base rent, the Company will pay additional rent comprised of a proportionate share of any operating expenses, real estate
taxes, and management fees. During the quarter ended June 30, 2023, a payment of $3.0 million was received as an incentive to terminate
the Company’s previous lease. The gain is recorded as other income in the consolidated statements of operations. The lease, which
expires in December 2032, contains an option to extend the term for one ten-year renewal period. Subsequent to the date of these financial
statements, on February 13, 2025, the Company signed a Letter of Intent (“LOI”) with a third party to sublease a portion
of this office space. The sublease, which, if executed, would commence on or around April 1, 2025, has an expected term of 57 months
and expected monthly rent of $0.1 million.

In
April 2022, the Company entered into a lease agreement for product testing for engineering and development activities in Nuremberg, Germany
which commenced in May 2022. In June 2024, the Company abandoned the space prior to its expiration of November 2027. During the year
ended December 31, 2024, impairment expense of $0.2 million was incurred and is recorded within sales, marketing, general and administrative
expense on the consolidated statements of operations.

In
September 2022, the Company entered into a lease agreement for office space in Nuremberg, Germany which commenced in November 2022. In
June 2024, the Company entered into an early termination agreement to decrease the expiration from April 2027 to April 2025,