Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 77

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 77
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, or over three years.

As
of December 31, 2024, unrecognized share-based compensation related to RSUs was $6.8 million, which will be expensed over the next 2.0
years. Unrecognized share-based compensation related to executive PSUs was $2.5 million, which will be expensed over the next 1.0 year.
Unrecognized share-based compensation related to the non-executive PSUs was $0.3 million, which will be expensed over the next 0.5 years.

    54

10.
LEASES

The
Company leases office space and certain equipment under operating and finance leases. All leases have remaining lease terms of one to
eight years. Office lease agreements include both lease and non-lease components, which are accounted for separately. Finance leases
contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected
lease term, unless the Company is reasonably certain to exercise the purchase option.

In
September 2021, the Company entered into a lease agreement for product testing and lab space in Redmond, Washington which commenced in
November 2021. In addition to base rent, the Company pays additional rent comprised of a proportionate share of any operating expenses,
real estate taxes, and management fees. The lease, which expires in July 2032, includes an option to extend the term for one ten-year
renewal period.

In
September 2021, the Company entered into a lease agreement for office space in Redmond, Washington which commenced in December 2022.
In addition to base rent, the Company will pay additional rent comprised of a proportionate share of any operating expenses, real estate
taxes, and management fees. During the quarter ended June 30, 2023, a payment of $3.0 million was received as an incentive to terminate
the Company’s previous lease. The gain is recorded as other income in the consolidated statements of operations. The lease, which
expires in December 2032, contains an option to extend the term for one ten-year renewal period. Subsequent to the date of these financial
statements, on February 13, 2025, the Company signed a Letter of Intent (“LOI”) with a third party to sublease a portion
of this office space. The sublease, which, if executed, would commence on or around April 1, 2025, has an expected term of