Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 16

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 16
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 pressure on the price of our common stock.

Sales
of shares of our common stock by the holder of the October 2024 convertible note may cause our stock price to decline.

Sales
of substantial amounts of our shares of common stock in the public market by the holder of the convertible note issued by us in October
2024, or the perception that those sales may occur, could cause the market price of shares of our common stock to decline and impair
our ability to raise capital through the sale of additional shares of our common stock.

29

We
do not currently intend to pay dividends on our common stock, and any return to investors is expected to come, if at all, only from potential
increases in the price of our common stock.

At
the present time, we intend to use available funds to finance our operations. Accordingly, while any payment of dividends would be at
the discretion of our board of directors, no cash dividends on our common shares have been declared or paid by us and we have no intention
of paying any such dividends in the foreseeable future. Any return to investors is expected to come, if at all, only from potential increases
in the price of our common stock.

There
are risks associated with our outstanding convertible note, and any additional convertible notes that may be issued under the October
2024 securities purchase agreement, that could adversely affect our business and financial condition.

On
October 23, 2024, we issued a senior secured convertible note in the principal amount of $45.0 million. Pursuant to the securities purchase
agreement dated October 14, 2024, we can issue up to an aggregate principal amount of $75.0 million in senior secured convertible notes
to the holder of the October 2024 convertible note, subject to certain conditions and limitations. The terms of any additional convertible
notes issued pursuant to the October 2024 securities purchase agreement would be similar to the terms of the existing convertible note.

The
convertible note provides for certain events of default, such as our failing to make timely payments under the note and failing to timely
comply with the reporting requirements of the Exchange Act. The October 2024 securities purchase agreement and the convertible note also
contain customary affirmative and negative covenants, including limitations on incurring additional indebtedness, the creation of additional
liens on our assets, and entering into investments, as well as a minimum liquidity requirement.

Our
ability to remain in compliance with the covenants under the convertible note