Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 139

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 139
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480, and whether the warrants
meet all of the requirements for equity classification under ASC 815. This assessment, which requires the use of professional judgment,
is conducted at the time of warrant issuance and as of each subsequent reporting period end date while the warrants are outstanding.

    9

Warrants
that meet all of the criteria for equity classification are required to be recorded as a component of additional paid-in capital at the
time of issuance, or when the conditions for equity classification are met, and are not remeasured. Warrants that do not meet the required
criteria for equity classification are classified as liabilities. The Company adjusts such warrants to fair value at each reporting period
until the warrants are exercised or expire. Changes in fair value are recognized in the Company’s condensed consolidated statements
of operations.

Recently
Adopted Accounting Pronouncements

In
March 2024, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2024-01, Compensation: Stock Compensation (Topic 718). The amendments in this ASU clarify existing guidance related to profits interest
and similar awards. ASU 2024-01 was adopted by the Company beginning January 1, 2025. The adoption of the new standard did not have a
material impact on the Company’s condensed consolidated financial statements.

Recently
Issued Accounting Pronouncements

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this
update require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on
income taxes paid. ASU 2023-09 is effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted.
The ASU is expected to result in incremental disclosures to the Company’s financial statements.

In
November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures
(Subtopic 220-40). The amendments in this ASU require additional disclosure of specified information about certain costs and expenses
in the notes to the financial statements. ASU 2024-03 is effective for annual periods for the Company beginning January 1, 2027, with
early adoption permitted. The Company is currently evaluating the impact this ASU may have on its financial statement disclosures.

In
November