Company: MVIS
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001641172-25-009765
Chunk: 8

Company: MICROVISION, INC.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 2
Chunk 8
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                                            October 2024, we entered into a securities purchase agreement for the purchase of senior
                                            secured convertible notes with an institutional investor. The principal amount for the initial
                                            note is $45.0 million, with an option for us to issue additional principal in the amount
                                            of $30.0 million of convertible notes to the holder, subject to certain limitations. We received
                                            proceeds, net of all costs, of $38.1 million.

●In
                                            March 2024, we entered into a $150.0 million ATM equity offering agreement with Deutsche
                                            Bank Securities, Inc., Mizuho Securities USA LLC and Craig-Hallum Capital Group LLC (collectively,
                                            the “Agents”). Under the agreement, we are able, at our discretion, to offer
                                            and sell shares of our common stock having an aggregate value of up to $150.0 million through
                                            or directly to the Agents. As of March 31, 2025, we completed sales under such sales agreement
                                            of 23.5 million shares for net proceeds of $35.0 million. As of March 31, 2025, we have approximately
                                            $113.4 million available under this sales agreement.

25

ITEM
3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest
Rate and Market Liquidity Risks

As
of March 31, 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 March 31, 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