Company: MVIS
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0001641172-25-000783
Chunk: 56

Company: MICROVISION, INC.
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 56
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can fluctuate substantially from period to period.

Manufacturing
overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to
inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting
production or research and development activity.

Concentration
of Credit Risk

Financial
instruments that potentially subject the Company to a concentration of credit risk are primarily cash, cash equivalents, and investment
securities. As of December 31, 2024, cash and cash equivalents are comprised of operating checking accounts and short-term highly rated
money market savings accounts. Short-term investments are comprised of highly rated corporate bonds and U.S. Treasury securities.

    43

For
the year ended December 31, 2024, three customers accounted for 60%, 13%, and 10% of total revenue, respectively, or $2.8 million, $0.6
million, and $0.5 million of total revenue, respectively. For the same period in 2023, two customers accounted for 63% and 11% of total
revenue, respectively, or $4.6 million and $0.8 million, respectively.

As
of December 31, 2024, accounts receivable related to these customers accounted for 82% of total accounts receivable, net of allowances
on the consolidated balance sheets.

Typically,
a significant concentration of components and the products sold are manufactured and obtained from single or limited-source suppliers.
The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in
the supply chain of components from these suppliers could subject the Company to risks and uncertainties including, but not limited to,
increased cost of sales, possible loss of revenues, or significant delays in product development or product deliveries, any of which
could adversely affect the Company’s financial condition and operating results.

Income
Taxes

Deferred
tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that
will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the
differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets
to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or