Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 159

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 159
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    %
    change 
  
    Three Months Ended March 31, 
    $(4,654) 
    $-  
    $(4,654) 
     - 

As
a result of the debt modification during the three months ended March 31, 2025, we recognized a loss on extinguishment of notes payable.
See Part I, Item 1, Note 6. Notes Payable and Derivative Liability for additional discussion.

24

Liquidity
and Capital Resources

We
have incurred significant losses since inception. We have funded operations to date primarily through the sale of common stock, convertible
preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales,
and licensing activities. As of March 31, 2025, we had $51.9 million in cash and cash equivalents and $17.1 million in short-term investment
securities. We also have approximately $113.4 million availability left on our existing $150.0 million ATM facility that was put in place
in the first quarter of 2024, although sales under the ATM facility require sufficient authorized capital. In addition, we have a remaining commitment pursuant to the convertible note facility of $30.0 million, subject to
certain limitations. Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to
fund our operations for at least the next 12 months.

Operating
activities

Cash
used in operating activities totaled $14.1 million during the three months ended March 31, 2025 compared to cash used in operating
activities of $20.8 million during the same period in 2024. Cash used in operating activities resulted primarily from cash used to
fund our net loss, after adjusting for non-cash charges such as interest expense, share-based compensation, depreciation and
amortization charges, unrealized gains and losses, and changes in operating assets and liabilities. The changes in cash used in
operating activities were primarily attributed to decreased operating expenses related to personnel. We expect to make minimum
payments to our contract manufacturing partner in connection with the production of MOVIA sensor inventory of approximately $2.6
million during the remainder of 2025 and 2026 in line with agreed-upon deliveries.

Investing
activities

During
the three months ended March 31, 2025, net cash provided by investing activities was $3.1 million compared to net