Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 57

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 57
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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 accounted for by recognizing the fair value of share-based compensation expense on a straight-line
basis over the service period of the award, net of estimated forfeitures. The fair value of RSUs and PSUs is determined by the closing
price of common stock on the date of grant. The fair value of stock options is estimated on the grant date using the Black-Scholes option
pricing model. Changes in estimated inputs or using other option valuation methods may result in materially different option values and
share-based compensation expense.

Recently
Adopted Accounting Pronouncements

In
November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this update expand annual and interim
disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. All disclosure
requirements under this standard will also be required for public entities with a single reportable segment. The Company adopted ASU
2023-07 during the year ended December 31, 2024.

Recently
Issued Accounting Pronouncements

In
December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments in this
update require disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on
income taxes paid. ASU 2023-09 is effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted.
The AS