Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 70

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 70
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 on October 23, 2024,
a Monte Carlo simulation was further incorporated in order to simulate the Company’s share price as of the registration date, which
occurred on November 21, 2024.

The
fair value of the host contract excluding embedded derivative features is estimated using a debt discounted cash flow model, which assumes
that the contract is a debt instrument with only the option to redeem partial principal payments prior to maturity. Projected cash flows
are based on the assumption that the Holder will fully exercise early redemption options, based on the estimated internal rate of return
for the Holder resulting from early redemption as compared to redemption at maturity. The debt discount rate is estimated based on the
rate of similar non-convertible debt instruments reflecting the Company’s credit risk.

The
valuation inputs hierarchy classification for liabilities measured at fair value on a recurring basis are summarized below as of December
31, 2024 and 2023 (in thousands). See Note 6. Investment Securities, Available-For-Sale and Fair Value Measurements, for discussion of the fair value
level hierarchy.

SCHEDULE
OF HIERARCHY LIABILITIES FAIR VALUE

    As of December 31, 2024 
    Level 1  
    Level 2  
    Level 3 
  
    Derivative liability 
    $-  
    $-  
    $14,581 
  
    Total 
    $-  
    $-  
    $14,581 

The
table below lists the inputs and assumptions for the Company’s initial valuation as of October 23, 2024 and re-valuation of the
derivative liability as of December 31, 2024:

SCHEDULE
OF REVALUATION DERIVATIVE LIABILITY

    December 31,  
    October 23, 

    2024  
    2024 
  
    Expected term (years) 
     1.75  
     1.94 
  
    Risk-free interest rate 
     4.18% 
     4.04%
  
    Dividend yield 
     0% 
     0%
  
    Volatility 
     78.02% 
     73.00%
  
    Discount rate 
     50.0% 
     50.0%

8.
FINANCIAL STATEMENT COMPONENTS

Restricted
Cash

During
the year ended December 31, 2024, Restricted cash,