Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 135

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 135
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     (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 authoritative guidance establishes
a three level fair value inputs hierarchy and requires an entity to maximize the use of observable valuation inputs and minimize the
use of unobservable inputs. The Company uses market data, assumptions, and risks that market participants would use in measuring the
fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. The hierarchy is summarized
below.

Level
1 - Quoted prices in active markets for identical assets and liabilities at the measurement date that the reporting entity has the ability
to access.

Level
2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active
markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable