Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 137

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 137
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 statements and notes thereto for the year ended December 31, 2024. The
information as of December 31, 2024 included in the condensed consolidated balance sheets was derived from those audited financial
statements.

The
unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements
and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary for the fair statement
of the Company’s financial information for the interim periods presented. The unaudited condensed consolidated results of operations
for the interim period are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any
other future annual or interim period.

    8

Use
of Estimates

The
preparation of financial statements in conformity with US GAAP requires the Company to make estimates and assumptions that affect the
reported amounts therein. The most significant estimates and assumptions relate to valuations of intangibles, derivatives, and warrants,
revenue recognition, inventory valuation, valuation of share-based payments, income taxes, depreciable lives assessment and related disclosure
of contingent assets and liabilities. Due to the inherent uncertainty involved, actual results reported in future periods could differ
from those estimates.

Foreign
Currency Translation

Foreign
currency transaction gains and losses are a result of the effect of exchange rate changes on transactions denominated in currencies other
than the functional currency. Realized gains and losses on those foreign currency transactions are included in determining net loss for
the period of exchange and are recorded in other income in the condensed consolidated statements of operations.

Segment
Information 

The
Company determines operating segments based on how the chief operating decision maker (“CODM”) manages the business, makes
operating decisions around the allocation of resources, and evaluates operating performance. The CODM is the Executive Management team.
The Company has determined that it operates in one operating segment and one reportable segment, relating to the sale and servicing of
lidar hardware and software, as the CODM regularly reviews financial information presented on a consolidated basis. Financial information
regularly reviewed by the CODM includes revenue, income or loss from operations, and net income or loss.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to a concentration of credit risk are primarily cash, cash equivalents, and investment
securities. As of September 30, 2025, cash and cash equivalents are comprised of operating checking accounts and short-term highly