Company: MVIS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021931
Chunk: 34

Company: MICROVISION, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 3
Chunk 34
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Interest
Rate and Market Liquidity Risk

As
of September 30, 2025, all of our cash and cash equivalents have variable interest rates; however, we believe our exposure to market
and interest rate risks is not material. Due to the generally short-term maturities of our investment securities, we believe that the
market risk arising from our holdings of these financial instruments is not significant. We do not believe that inflation has had a material
effect on our business, financial condition or results of operations; however, we do anticipate our labor costs to increase as a result
of inflationary pressures. In the current macroeconomic environment, interests rate changes are unpredictable and inflationary pressures
uncertain.

Our
investment policy generally directs that the investment managers should select investments to achieve the following goals: principal
preservation, adequate liquidity, and return. As of September 30, 2025, our cash and cash equivalents are comprised of short-term highly
rated (A rated securities and above) money market savings accounts and our short-term investments are comprised of highly rated corporate
and government debt securities (A rated securities and above). The values of cash and cash equivalents and investment securities, available-for-sale
as of September 30, 2025, are as follows (in thousands):

    (in thousands) 
    Amount  
    Percent 
  
    Cash and cash equivalents 
    $72,832  
     73.2%
  
    Less than one year 
     26,676  
     26.8%

    $99,508  
     100.0%

Foreign
Exchange Rate Risk

Our
major contract and collaborative research and development agreements, product sales, and licensing activity payments are currently made
in U.S. dollars or Euros. Changes in the relative value of the U.S. dollar to the Euro and other currencies may affect revenue and other
operating results as expressed in U.S. dollars. In addition, our international subsidiary financial statements are denominated in Euros.
As such, the consolidated financial statements will continue to remain subject to the impact of foreign currency translation as our international
operations continue to expand. In the future, we may enter into foreign currency hedges to offset material exposure to currency fluctuations
when we can adequately determine the timing and amounts of the exposure.

U.S.
policy changes and uncertainty about such changes may increase market volatility and currency exchange rate fluctuations. Given the relative
significance of our European operations, unfavorable fluctuations in relevant exchange rates will