Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 140

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 140
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 are included in the derivative liability on the condensed
consolidated balance sheets. The host contract, which represents the Note excluding the derivative liability, is accounted for as
non-convertible debt under ASC 470, “Debt” and is included in notes payable, current and notes payable, net of current
portion on the condensed consolidated balance sheets.

Notes
Payable

Subsequent
to the modification, the host contract is recorded at the total amount repayable at maturity of $36.0 million, less any unamortized debt
discount. The debt discount is equal to the amount repayable at maturity, net of the initial fair value of the bifurcated derivative
liability. There were no material qualifying debt issuance costs resulting from the modification.

Supplemental
balance sheet information is as follows:

 SCHEDULE
OF SUPPLEMENT BALANCE SHEET

    March
    31,  
    December
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Amount repayable
    at maturity 
    $36,025  
    $47,575 
  
    Unamortized debt discount 
     (5,918) 
     (12,021)
  
    Unamortized
    issuance costs 
     -  
     (2,552)
  
    Net
    carrying amount 
     30,107  
     33,002 

Interest
expense related to the amortization of the debt discount and issuance costs was $3.5
million and $0.0
million for the three months ended March 31, 2025 and 2024, respectively. Total interest expense of $12.9 million for the three
months ended March 31, 2025 is comprised of the following components:

 SCHEDULE OF COMPONENTS INTEREST EXPENSE

    March 31, 
  
    (in thousands) 
    2025 
  
    Amortization of debt discount and issuance costs 
    $3,502 
  
    Interest expense from modification of notes payable 
     2,057 
  
    Discount on warrants (see Note 7. Warrant Liability) 
     7,325 
  
    Other 
     19 
  
    Total interest expense 
    $12,903 

The monthly effective interest rate implicit in the Note as of March 31, 2025 under the