Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 185

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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see Note 7. Warrant Liability). Based on the current operating plan, the Company anticipates having sufficient cash
and cash equivalents to fund operations for at least the next 12 months from the issuance of these condensed consolidated financial
statements.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles
of Consolidation and Basis of Presentation

The
unaudited condensed consolidated financial statements and accompanying notes include the accounts of the Company and its wholly owned
subsidiaries, after elimination of all intercompany balances and transactions. The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”)
and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim financial information. Certain
information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed
or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited financial
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 U.S. 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