Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 68

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 68
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 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 
     33,002  
     - 

Interest
expense related to the amortization of the debt discount and issuance costs was $4.4 million for the year ended December 31, 2024, and
$0.0 million for the year ended December 31, 2023. The monthly effective interest rate implicit in the Note as of December 31, 2024 under
the interest method was 5.1%.

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 
    $38,500 
  
    2026 
     9,075 
  
    Total partial repayments 
    $47,575 

Subsequent
to December 31