Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 4

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 4
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 the costs of procuring, inspecting and storing material,
facility and other costs, and is allocated to cost of revenue based on the proportion of indirect labor which supported revenue activities.

Cost
of revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of overhead expense
and the volume of direct material purchased. The decrease in cost of revenue for the three months ended March 31, 2025 compared to the
same period in 2024 was primarily due to decreased revenue and the revenue mix.

Research
and development expense

    (in
    thousands) 
    2025  
    2024  
    $
    change  
    %
    change 
  
    Three Months Ended March 31, 
    $7,403  
    $17,311  
    $(9,908) 
     (57.2)

Research
and development expense consists of compensation related costs of employees and contractors engaged in internal research and product
development activities, direct material to support development programs, laboratory operations, outsourced development and processing
work, and other operating expenses. We assign our research and development resources based on the business opportunity of the available
projects, the skill mix of the resources available and the contractual commitments we have made to our customers. We believe that a substantial
level of continuing research and development expense will be required to further develop our scanning technology.

23

The
decrease in research and development expense during the three months ended March 31, 2025 compared to the same period in 2024 was
primarily due to lower salary and benefits expense of $5.6 million, lower restructuring charges of $2.4 million, lower purchased
services of $1.2 million, and lower direct materials and equipment costs of $0.4 million.

Sales,
marketing, general and administrative expense

    (in
    thousands) 
    2025  
    2024  
    $
    change  
    %
    change 
  
    Three Months Ended March 31, 
    $6,676  
    $9,078  
    $(2,402) 
     (26.5)

Sales,
marketing, general and administrative expense includes compensation and support costs for marketing, sales, management and administrative
staff, and for other general and administrative costs, including legal and accounting services, consultants and other operating expenses.

The
decrease in sales, marketing, general and administrative expense during