Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 50

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 50
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CODM”) manages the business, makes
operating decisions around the allocation of resources, and evaluates operating performance. The CODM is the Executive Management team.
The Company has determined that it operates in one operating segment and one reportable segment, relating to the sale and servicing of
lidar hardware and software, as the CODM regularly reviews financial information presented on a consolidated basis. Financial information
regularly reviewed by the CODM includes revenue, income or loss from operations, and net income or loss.

Business
Combination

Business
combinations are accounted for under the acquisition method. As such, the fair value of the Ibeo purchase consideration was allocated
to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date.
The excess of the fair value of the underlying net assets acquired and liabilities assumed over the purchase consideration was included
in bargain purchase gain, net of tax in the consolidated statements of operations. Such valuations require management to make significant
estimates and assumptions, especially with respect to intangible assets.

Cash
and Cash Equivalents and Fair Value of Financial Instruments

Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction
between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes
a three level fair value inputs hierarchy and requires an entity to maximize the use of observable valuation inputs and minimize the
use of unobservable inputs. The Company uses market data, assumptions and risks that market participants would use in measuring the fair
value of the asset or liability, including the risks inherent in the inputs and the valuation techniques.

Financial
instruments include cash and cash equivalents, investment securities, accounts receivable, accounts payable and accrued liabilities.
The carrying value of financial instruments approximate fair value due to their short maturities. Cash equivalents are comprised of short-term
highly rated (A rated securities and above) money market savings accounts.

Short-term
investment securities primarily consist of debt securities. The Company has classified its entire investment portfolio as available-for-sale.
Available-for-sale securities are stated at fair value with unrealized gains and losses included in other comprehensive income (loss).
Dividend and interest income are recognized when earned. Realized gains and losses, if any, are presented separately on the income statement.

Restricted
Cash