Company: MVIS
Filing Date: 2025-04-28
Form Type: DEF 14A
Source: 0001641172-25-006436
Chunk: 38

Company: MICROVISION, INC.
Filing Date: 2025-04-28
Form: DEF 14A
Chunk 38
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 ordinary income at the time of disposition. Any gain in excess
of that amount will be a capital gain. If a loss is recognized, there will be no ordinary income, and such loss will be a capital loss.
Any ordinary income recognized by the optionee upon the disqualifying disposition of the shares generally should be deductible by the
company for federal income tax purposes, except to the extent such deduction is limited by applicable provisions of the Code.

The difference between the option exercise price and
the fair market value of the shares on the exercise date is treated as an adjustment in computing the optionee’s alternative minimum
taxable income and may be subject to an alternative minimum tax which is paid if such tax exceeds the regular tax for the year. Special
rules may apply with respect to certain subsequent sales of the shares in a disqualifying disposition, certain basis adjustments for purposes
of computing the alternative minimum taxable income on a subsequent sale of the shares and certain tax credits which may arise with respect
to optionees subject to the alternative minimum tax.

Nonstatutory Stock Options

Options not designated or qualifying as incentive
stock options will be nonstatutory stock options having no special U.S. tax status. An optionee generally recognizes no taxable income
as the result of the grant of such an option. Upon exercise of a nonstatutory stock option, the optionee normally recognizes ordinary
income equal to the amount that the fair market value of the shares on such date exceeds the exercise price. If the optionee is an employee,
such ordinary income generally is subject to withholding of income and employment taxes. Upon the sale of stock acquired by the exercise
of a nonstatutory stock option, any gain or loss, based on the difference between the sale price and the fair market value on the exercise
date, will be taxed as capital gain or loss. No tax deduction is available to the company with respect to the grant of a nonstatutory
stock option or the sale of the stock acquired through such grant.

Stock Appreciation Rights

In general, no taxable income is reportable when a
stock appreciation right is granted to a participant. Upon exercise, the participant generally will recognize ordinary income in an amount
equal to the fair market value of any shares of our common stock received. If the participant is an employee, such ordinary income generally
is subject to withholding of income and employment taxes. Any additional gain or loss recognized upon any later disposition of the shares
would be capital gain or loss.

Restricted Stock Awards

A participant acquiring restricted