Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 49

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 49
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 commitment pursuant to the convertible note facility of $30.0
million, subject to certain limitations (see Note 7. Notes Payable and Derivative Liability).

Subsequent to the date of these financial statements, on February 4, 2025,
the Company sold shares of common stock and warrants to purchase common stock for net proceeds of approximately $7.8 million. Additionally, subsequent to the date of these financial statements, maturities of the $45.0 million senior secured
convertible notes were reduced by $10.6 million (see Note 16. Subsequent Events). To date, total maturities have been reduced by $12.3
million, inclusive of $1.8 million reduced prior to December 31, 2024 (see Note 7. Notes Payable and Derivative 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 consolidated financial statements.

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles
of Consolidation

The
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. Certain reclassifications have been made to prior year financial statements
to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders’ equity
or cash flows, as previously reported.

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 business combinations, valuation of intangibles, valuation
of derivative liabilities, 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 and losses on those foreign currency transactions are included in determining net loss for
the period of exchange and are recorded in other income in the consolidated statements of operations.

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Segment
Information

The
Company determines operating segments based on how the chief operating decision maker (“