Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 196

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 196
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 2024, respectively. Total interest expense of $12.9 million for the three
months ended March 31, 2025 is comprised of the following components:

 SCHEDULE OF COMPONENTS INTEREST EXPENSE

    March 31, 
  
    (in thousands) 
    2025 
  
    Amortization of debt discount and issuance costs 
    $3,502 
  
    Interest expense from modification of notes payable 
     2,057 
  
    Discount on warrants (see Note 7. Warrant Liability) 
     7,325 
  
    Other 
     19 
  
    Total interest expense 
    $12,903 

The monthly effective interest rate implicit in the Note as of March 31, 2025 under the interest
method was 2.34%.

Maturities
of partial repayments, if elected by the Holder, are as follows:

 SCHEDULE OF MATURITIES LONG TERM DEBT

    (in
                                     thousands)
                                                       Years
                                            Ended December 31, 
    Maturities 
  
    2025 (remainder) 
    $22,000 
  
    2026 
     14,025 
  
    Total
    partial repayments 
    $36,025 

Derivative
Liability

As
a result of the modification, one embedded feature previously accounted for within the derivative liability no longer required bifurcation
and was recombined with the host contract at a fair value of $0.2 million. Subsequent to the modification, the derivative liability was
initially recorded at its fair value of $7.2 million as of the modification date of February 3, 2025. The derivative liability is subsequently
remeasured and reported at fair value each reporting period, with the changes in fair value recorded as an unrealized gain or loss and
recognized in earnings.

The
fair value of derivatives not designated as hedging instruments are as follows:

 SCHEDULE
OF DERIVATIVES INSTRUMENTS

    March
    31,  
    December
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Derivative
    liability 
    $4,867  
    $14,581 
  
    Total 
    $4,867  
    $14,581 

    14

Unrealized
gains and losses associated with derivatives