Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 156

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1B
Chunk 156
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     6,475  
     7,833 
  
    Total deferred tax assets 
     157,249  
     145,790 
  
    Deferred tax liabilities: 

    Operating lease right-of-use assets 
     (4,106) 
     (3,272)
  
    Total deferred tax liabilities 
     (4,106) 
     (3,272)
  
    Net valuation allowances 
     (152,935) 
     (142,376)
  
    Deferred tax assets 
    $208  
    $142 

As
of December 31, 2024, a valuation allowance of $152.9 million was maintained for deferred tax assets which have been deemed not more
likely than not to be realized.

As
of December 31, 2024, the Company has net operating loss carryforwards of approximately $498.0 million for federal income tax reporting
purposes. In addition, the Company has research and development tax credits of $11.1 million. During 2024, $28.2 million federal net
operating losses and $0.2 million general business credits expired unused. A majority of the net operating loss carryforwards and research
and development credits available to offset future taxable income, if any, will expire in varying amounts from 2025 to 2044, if not previously
used.

Certain
net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference
between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes,
the tax effect of this deduction, when recognized, is accounted for as an income tax benefit.

In
certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of shareholders
during any three-year period would result in limitations on the ability to use a portion of net operating loss carryforwards.

    58

The
Company had no unrecognized tax benefits as of December 31, 2024 or 2023.

Interest
accrued and penalties related to unrecognized tax benefits are recognized in tax expense. During the years ended December 31, 2024, 2023
and 2022, no interest or penalties were recognized.

Income
tax returns are filed in the U.S. federal jurisdiction, certain U.S. states, and in Germany. Due to the