Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 143

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 143
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 at an exercise price of $1.57 per share (the “warrants”).
On February 4, 2025, the 2025 Purchase Agreement closed for net proceeds of approximately $7.8 million, inclusive of all fees and
expenses related to the transaction. The warrants are exercisable beginning August 4, 2025 and expire on August 4, 2030.

The
warrants are accounted for as a liability under ASC 480, Distinguishing Liabilities from Equity. Both the closing shares and the warrants
are initially recorded at their fair values of $9.0 million and $6.3 million, respectively. The warrant 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 warrants are as follows:

 SCHEDULE
OF FAIR VALUE OF WARRANTS

    March
    31,  
    December
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Warrant
    liability 
    $4,536  
    $     - 
  
    Total 
    $4,536  
    $- 

    15

Unrealized
gains and losses associated with warrants are as follows:

 SCHEDULE
OF UNREALIZED GAINS AND LOSSES ASSOCIATED WITH WARRANTS

    March
    31,  
    March
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Unrealized
    gain on warrant liability 
    $1,761  
    $     - 
  
    Total 
    $1,761  
    $- 

Interest
expense of $7.3 million representing the discount on the transaction was recorded on the condensed consolidated financial statements
for the three months ended March 31, 2025.

The
valuation inputs hierarchy classification for liabilities measured at fair value on a recurring basis are summarized below as of March
31, 2025 and December 31, 2024 (in thousands). See Note 5. Investment Securities, Available-For-Sale and Fair Value Measurements,
for discussion of the fair value level hierarchy.

 SCHEDULE
OF HIERARCHY WARRANT LIABILITIES FAIR VALUE

    As
    of March