Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 83

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 83
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0%
  
    Total 
     (0.5)% 
     (1.4)% 
     0.0%

Components
of deferred tax assets are as follows (in thousands):

SCHEDULE OF DEFERRED TAX ASSETS  

    December 31, 

    2024  
    2023 
  
    Deferred tax assets 

    Reserves 
    $430  
    $632 
  
    Net operating loss carryforwards 
     104,575  
     97,254 
  
    R&D credit carryforwards 
     11,052  
     10,114 
  
    Depreciation/amortization deferred 
     29,618  
     26,079 
  
    Operating lease liabilities 
     5,099  
     3,878 
  
    Other 
     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