Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 426

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 4
Chunk 426
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 combination. The results of operations for the acquisition are included in the consolidated
financial statements from the date of acquisition onwards.

The
following table summarizes the final purchase price allocation to assets acquired and liabilities assumed (in thousands):

SCHEDULE OF PURCHASE PRICE
ALLOCATION TO ASSETS ACQUIRED AND LIABILITIES ASSUMED

    Weighted Average 

    Amount  
    Useful Life (in years) 
  
    Total purchase consideration 
    $21,611  

    Inventory 
    $1,197  

    Other current assets 
     703  

    Operating lease right-of-use assets 
     234  

    Property and equipment, net 
     5,330  

    Intangible assets: 

    Acquired technology(1) 
     17,987  
     13 
  
    Order backlog 
     26  
     1 
  
    Contract liabilities 
     (1,178) 

    Operating lease liabilities 
     (234) 

    Deferred tax liabilities 
     (785) 

    Total identifiable net assets 
    $23,280  

    Bargain purchase gain(2) 
     (1,669) 

(1)During
                                            the year ended December 31, 2024, the Company recognized a $4.2 million impairment charge
                                            on certain identified intangible assets acquired in this business combination. See Note 8.
                                            Financial Statement Components.

(2)The
                                            bargain purchase gain represents the excess of the fair value of the underlying net assets
                                            acquired and liabilities assumed over the purchase consideration and is included in bargain
                                            purchase gain, net of tax in the consolidated statements of operations. The bargain purchase
                                            gain was attributable to the negotiation process with Ibeo during its insolvency proceedings
                                            resulting in cash consideration paid being less than the fair value of the net assets acquired.

The
estimated fair value of acquired technology was calculated through the income approach using the multi-period excess earnings and relief
from royalty methodologies. The estimated fair value of the order backlog was calculated through the income approach using the multi-period
excess earnings methodology.

Revenue and net income from the acquisition included in the consolidated statement of operations from the acquisition
date through December 31, 2023 is $2.3 million and $3.9 million, respectively.

5.
REVENUE RECOGNITION

Disaggregation
of Revenue

The
following table provides information