Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 198

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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75 
  
    Risk-free interest rate 
     3.92% 
     4.18%
  
    Dividend yield 
     0% 
     0%
  
    Volatility 
     82.36% 
     78.02%
  
    Discount rate 
     50.0% 
     50.0%

7.
WARRANT LIABILITY

On
February 3, 2025, the Company entered into a new Securities Purchase Agreement (the “2025 Purchase Agreement”) with an institutional
investor. In exchange for $8.0 million, the Holder agreed to purchase  5,750,225 shares of common stock (the “closing shares”)
and warrants to purchase up to 5,750,225 shares of common stock at an exercise price of $1.57 per share (the “warrants”).
On February 4, 2025, the 2025 Purchase Agreement closed for net proceeds of approximately $7.8 million, inclusive of all fees and
expenses related to the transaction. The warrants are exercisable beginning August 4, 2025 and expire on August 4, 2030.

The
warrants are accounted for as a liability under ASC 480, Distinguishing Liabilities from Equity. Both the closing shares and the warrants
are initially recorded at their fair values of $9.0 million and $6.3 million, respectively. The warrant liability is subsequently remeasured
and reported at fair value each reporting period, with the changes in fair value recorded as an unrealized gain or loss and recognized
in earnings.

The
fair value of warrants are as follows:

 SCHEDULE
OF FAIR VALUE OF WARRANTS

    March
    31,  
    December
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Warrant
    liability 
    $4,536  
    $     - 
  
    Total 
    $4,536  
    $- 

    15

Unrealized
gains and losses associated with warrants are as follows:

 SCHEDULE
OF UNREALIZED GAINS AND LOSSES ASSOCIATED WITH WARRANTS

    March
    31,  
    March
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Unrealized
    gain