MicroVision(MVIS)2025-05-12 21:28Revenue Performance - Revenue for the three months ended March 31, 2025, was $589,000, a decrease of $367,000 or 38.4% compared to $956,000 in the same period of 2024[112]. - Revenue for Q1 2025 was $589,000, a decrease of 38.4% from $956,000 in Q1 2024, primarily due to reduced shipments of MOVIA L sensors[112][113]. Cost of Revenue - Cost of revenue for the three months ended March 31, 2025, was $550,000, representing 93.4% of revenue, down from $1,277,000 or 133.6% of revenue in 2024, a decrease of $727,000 or 56.9%[114]. - Cost of revenue decreased to $550,000 in Q1 2025, representing 93.4% of revenue, compared to $1.277 million or 133.6% of revenue in Q1 2024, attributed to decreased revenue and revenue mix[114][115]. Expenses - Research and development expenses for the three months ended March 31, 2025, were $7,403,000, a decrease of $9,908,000 or 57.2% compared to $17,311,000 in 2024[116]. - Research and development expenses dropped to $7.403 million in Q1 2025, a 57.2% decrease from $17.311 million in Q1 2024, mainly due to lower salary and benefits expenses[116][118]. - Sales, marketing, general and administrative expenses for the three months ended March 31, 2025, were $6,676,000, a decrease of $2,402,000 or 26.5% from $9,078,000 in 2024[119]. - Sales, marketing, general and administrative expenses were $6.676 million in Q1 2025, down 26.5% from $9.078 million in Q1 2024, primarily due to reduced salary and benefits expenses[119][120]. Interest Expense - Interest expense for the three months ended March 31, 2025, was $(12,903,000), an increase of $12,885,000 or 71,583.3% compared to $(18,000) in 2024[121]. - Interest expense increased significantly to $(12.903) million in Q1 2025 from $(18) in Q1 2024, largely due to non-cash interest expenses related to warrants and notes payable[121]. Cash and Investments - As of March 31, 2025, the company had $51.9 million in cash and cash equivalents and $17.1 million in short-term investment securities[125]. - The company has approximately $113.4 million available under its existing $150.0 million ATM facility, which was established in the first quarter of 2024[125]. - As of March 31, 2025, the company reported an unrealized gain on derivative liability of $842,000 due to a decrease in the fair value of the derivative liability[122]. - The unrealized gain on warrant liability was $1,761,000 as of March 31, 2025, reflecting a decrease in the fair value of the warrant liability[123]. - The company recognized a realized loss on debt extinguishment of $4,654,000 during the three months ended March 31, 2025[124]. - Cash used in operating activities decreased to $14.1 million in Q1 2025 from $20.8 million in Q1 2024, primarily due to reduced operating expenses related to personnel[126]. - Net cash provided by investing activities was $3.1 million in Q1 2025, compared to a net cash used of $3.3 million in Q1 2024, with short-term investment securities purchased totaling $10.3 million and sold totaling $13.5 million[127]. - Cash provided by financing activities totaled $8.2 million in Q1 2025, down from $21.0 million in Q1 2024, with net proceeds from the issuance of common stock and warrants being $8.2 million in Q1 2025[128]. - The company has a remaining commitment of $30.0 million under its convertible note facility, subject to certain limitations[125]. Future Expectations - The company expects to continue incurring significant losses in the near term, having funded operations primarily through equity and convertible debt[110]. - The company expects to make minimum payments of approximately $2.6 million to its contract manufacturing partner for MOVIA sensor inventory production during 2025 and 2026[126]. - The company restructured its workforce in 2024, resulting in a 41% reduction, which added approximately $6.0 million to fiscal year 2024 expenses but is expected to extend its financial runway[107]. - In February 2025, the company entered into a securities purchase agreement for 5,750,225 shares of common stock and warrants, receiving net proceeds of $7.8 million[129].