Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 129

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 129
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 13%, and 10% of total revenue, respectively, or $2.8 million, $0.6
million, and $0.5 million of total revenue, respectively. For the same period in 2023, two customers accounted for 63% and 11% of total
revenue, respectively, or $4.6 million and $0.8 million, respectively.

As
of December 31, 2024, accounts receivable related to these customers accounted for 82% of total accounts receivable, net of allowances
on the consolidated balance sheets.

Typically,
a significant concentration of components and the products sold are manufactured and obtained from single or limited-source suppliers.
The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in
the supply chain of components from these suppliers could subject the Company to risks and uncertainties including, but not limited to,
increased cost of sales, possible loss of revenues, or significant delays in product development or product deliveries, any of which
could adversely affect the Company’s financial condition and operating results.

Income
Taxes

Deferred
tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that
will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets
to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or
decreased by the change in deferred tax assets and liabilities during the period.

Research
and Development

Research
and development expense consists of labor and subcontractor costs for internal research and product development activities, direct material
to support development programs, laboratory operations, outsourced development and processing work, and other operating expenses. Research
and development resources are assigned based on the business opportunity of the available projects, the skill mix of the resources available
and the contractual commitments have been made to customers. Research and development costs are expensed as incurred. It is highly likely
that a substantial level of continuing research and development expense will be required for the Company to further develop its technology.

Share-Based
Compensation

The
Company issues share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs), and
stock options. Share-based awards are