Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 190

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 190
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 $956 

Contract
Balances

Under
Topic 606, the Company’s rights to consideration are presented separately depending on whether those rights are conditional or
unconditional. Unconditional rights to consideration are included within accounts receivable, net of allowances in the condensed consolidated
balance sheets.

Significant
changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages):

 SCHEDULE
OF CONTRACT WITH CUSTOMER, CONTRACT ASSET, CONTRACT LIABILITY, AND RECEIVABLE

    March 31,  
    December 31,  

    2025  
    2024  
    $ Change  
    % Change 
  
    Contract assets 
    $252  
    $926  
    $(674) 
     (72.8)
  
    Contract liabilities 
     (314) 
     (308) 
     (6) 
     1.9 
  
    Net contract assets (liabilities) 
    $(62) 
    $618  
    $(680) 
     (110.0)

Contract
Acquisition Costs

The
Company is required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed.
As the Company currently does not pay any commissions upon the signing of a contract, no commission cost has been incurred as of March
31, 2025.

Transaction
Price Allocated to the Remaining Performance Obligations

The
remaining balance of the contract liabilities was approximately $0.3 million as of March 31, 2025. The Company expects to recognize 100%
of this revenue over the next 12 months.

5.
INVESTMENT SECURITIES, AVAILABLE-FOR-SALE AND FAIR VALUE MEASUREMENTS

Investment
securities, available-for-sale is comprised of corporate and government debt securities. The principal markets for the debt securities
are dealer markets which have a high level of price transparency. The market participants for debt securities are typically large money
center banks and regional banks, brokers, dealers, pension funds, and other entities with debt investment portfolios.

    11

Fair
value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction
between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market
participants would use in pricing an asset or liability. As a basis for considering such assumptions, the