Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 562

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 562
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 the Note was issued for net proceeds of approximately $38.1 million, inclusive of
all discounts, fees, and expenses related to the transaction.

On
December 30, 2024, pursuant to the terms of the Note, the Holder elected to convert $1.8 million of outstanding principal into 2,345,068
shares of the Company’s common stock. See Note 16. Subsequent Events for details of additional conversions subsequent to the date
of these financial statements.

    49

Components

The
Note is a convertible debt instrument with multiple redemption, conversion, and put features. Certain features qualify as embedded derivatives
requiring bifurcation. Therefore, the bifurcated features are accounted for separately as a compound embedded derivative in accordance
ASC 815, “Derivatives and Hedging” and are included in the derivative liability on the consolidated balance sheets. The host
contract, which represents the Note excluding the derivative liability, is accounted for as non-convertible debt under ASC 470, “Debt”
and is included in notes payable, current and notes payable, net of current portion on the consolidated balance sheets.

Notes
Payable

The
host contract is recorded at the total amount repayable at maturity of $49.5 million, comprised of $45.0 million principal plus a $4.5
million 10% repayment premium, less any conversions of outstanding principal, net of debt discount and issuance costs. The debt discount
is equal to the amount repayable at maturity, net of cash proceeds received at issuance and the initial fair value of the bifurcated
derivative liability. Debt issuance costs are comprised of qualifying expenses resulting directly from the transaction. During the year
ended December 31, 2024, conversions reduced the amount repayable at maturity to $47.6 million.

Supplemental
balance sheet information is as follows:

SCHEDULE
OF SUPPLEMENT BALANCE SHEET

    (in thousands) 
    2024  
    2023 

    Year Ended December 31, 
  
    (in thousands) 
    2024  
    2023 
  
    Amount repayable at maturity 
    $47,575  
    $- 
  
    Unamortized debt discount 
     (12,021) 
     - 
  
    Unamortized issuance costs 
     (2,552) 
     - 
  
    Net carrying amount