Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 628

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 8
Chunk 628
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 which commenced in December 2022.
In addition to base rent, the Company will pay additional rent comprised of a proportionate share of any operating expenses, real estate
taxes, and management fees. During the quarter ended June 30, 2023, a payment of $3.0 million was received as an incentive to terminate
the Company’s previous lease. The gain is recorded as other income in the consolidated statements of operations. The lease, which
expires in December 2032, contains an option to extend the term for one ten-year renewal period. Subsequent to the date of these financial
statements, on February 13, 2025, the Company signed a Letter of Intent (“LOI”) with a third party to sublease a portion
of this office space. The sublease, which, if executed, would commence on or around April 1, 2025, has an expected term of 57 months
and expected monthly rent of $0.1 million.

In
April 2022, the Company entered into a lease agreement for product testing for engineering and development activities in Nuremberg, Germany
which commenced in May 2022. In June 2024, the Company abandoned the space prior to its expiration of November 2027. During the year
ended December 31, 2024, impairment expense of $0.2 million was incurred and is recorded within sales, marketing, general and administrative
expense on the consolidated statements of operations.

In
September 2022, the Company entered into a lease agreement for office space in Nuremberg, Germany which commenced in November 2022. In
June 2024, the Company entered into an early termination agreement to decrease the expiration from April 2027 to April 2025, resulting
in an insignificant early termination fee. During the year ended December 31, 2024, impairment expense of $0.1 million was incurred and
is recorded within sales, marketing, general and administrative expense on the consolidated statements of operations.

Additionally,
in connection with the January 2023 acquisition of assets from Ibeo, the Company assumed three leases in Hamburg, Germany. Each lease
was abandoned or expired in 2024, resulting in impairment expense of $0.1 million during the year ended December 31, 2024.

In
December 2023, the Company entered into a lease agreement for office space in Hamburg, Germany which commenced in November 2024. The
lease