Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 149

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 149
---
    Discount on warrants (see Note 7. Warrant Liability) 
     -  
     -  
     (7,325) 
     - 
  
    Other interest expense 
     (6) 
     (21) 
     (30) 
     (51)
  
    Total interest expense 
    $(2,197) 
    $(21) 
    $(17,270) 
    $(51)

The
monthly effective interest rate implicit in the Note as of September 30, 2025 under the interest method was 2.34%.

Maturities
of partial repayments, if elected by the Holder, are as follows as of September 30, 2025:

 SCHEDULE OF MATURITIES LONG TERM DEBT

    (in thousands) 

    Years Ended December 31, 
    Maturities 
  
    2025 (remainder) 
    $16,500 
  
    2026 
     14,025 
  
    Total partial repayments 
    $30,525 

Derivative
Liability

As
a result of the modification, one embedded feature previously accounted for within the derivative liability no longer required bifurcation
and was recombined with the host contract at a fair value of $0.2 million. Subsequent to the modification, the derivative liability was
initially recorded at its fair value of $7.2 million as of the modification date of February 3, 2025. The derivative liability is subsequently
remeasured and reported at fair value each reporting period, with the changes in fair value recorded as an unrealized gain or loss and
recognized in earnings.

The
fair value of derivatives not designated as hedging instruments as of September 30, 2025 and December 31, 2024 are as follows:

 SCHEDULE
OF DERIVATIVES INSTRUMENTS

    September 30,  
    December 31, 
  
    (in thousands) 
    2025  
    2024 
  
    Derivative liability 
    $1,856  
    $14,581 
  
    Total 
    $1,856  
    $14,581 

Unrealized
gains and losses associated with derivatives not designated as hedging instruments for the three and nine months ended September 30,
2025 and 2024 are as follows:

 SCHEDULE OF UNREALIZED GAIN