Company: MVIS
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001641172-25-022632
Chunk: 86

Company: MICROVISION, INC.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 86
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 Purchase Agreement closed for net proceeds of approximately $7.8 million, inclusive of all fees and expenses
related to the transaction. The warrants are exercisable beginning August 4, 2025 and expire on August 4, 2030. There have been no exercises
of warrants as of June 30, 2025.

The
warrants are accounted for as a liability under ASC 480, Distinguishing Liabilities from Equity. Both the closing shares and the warrants
are initially recorded on February 4, 2025 at their fair values of $9.0 million and $6.3 million, respectively. The warrant liability
is subsequently remeasured and reported at fair value each reporting period, with the changes in fair value recorded as an unrealized
gain or loss and recognized in earnings.

The
fair value of warrants as of June 30, 2025 and December 31, 2024 are as follows:

 SCHEDULE
OF FAIR VALUE OF WARRANTS

    June
    30,  
    December
    31, 
  
    (in
    thousands) 
    2025  
    2024 
  
    Warrant
    liability 
    $3,733  
    $- 
  
    Total 
    $3,733  
    $- 

Unrealized
gains and losses associated with warrants are as follows:

 SCHEDULE
OF UNREALIZED GAINS AND LOSSES ASSOCIATED WITH WARRANTS

    (in thousands) 
    2025  
    2024  
    2025  
    2024 

    Three Months
    Ended  
    Six Months
    Ended 

    June
    30,  
    June
    30, 
  
    (in thousands) 
    2025  
    2024  
    2025  
    2024 
  
    Unrealized gain (loss) on warrant
    liability 
    $803  
    $-  
    $2,564  
    $- 

Interest
expense of $7.3 million representing the discount on the transaction was recorded on the condensed consolidated financial statements
for the six months ended June 30, 2025.

The
valuation inputs hierarchy classification for liabilities measured at fair value on a recurring basis are summarized below as of June
30, 2025 and December 31,