MicroVision(MVIS) - 2021 Q3 - Quarterly Report

PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS (Unaudited) Presents MicroVision's unaudited condensed financial statements, covering balance sheets, operations, equity, cash flows, and accounting notes Condensed Balance Sheets Summarizes the company's financial position, showing assets, liabilities, and equity at specific points in time Condensed Balance Sheet Highlights (in thousands) | Metric | September 30, 2021 | December 31, 2020 | | :-------------------------- | :------------------- | :------------------ | | Cash and cash equivalents | $125,135 | $16,862 | | Total current assets | $129,097 | $17,560 | | Total assets | $134,065 | $21,006 | | Total current liabilities | $11,384 | $10,028 | | Total liabilities | $11,718 | $11,997 | | Total shareholders' equity | $122,347 | $9,009 | - The company's cash and cash equivalents significantly increased from $16.86 million at December 31, 2020, to $125.14 million at September 30, 2021, primarily due to financing activities[13] - Total shareholders' equity saw a substantial increase from $9.01 million at December 31, 2020, to $122.35 million at September 30, 2021[13] Condensed Statements of Operations Details the company's revenues, expenses, and net loss over specific periods, reflecting operational performance Condensed Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :---------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Product revenue | $0 | $100 | $0 | $1,347 | | License and royalty revenue | $718 | $539 | $1,943 | $1,323 | | Total revenue | $718 | $639 | $1,943 | $2,695 | | Gross profit | $728 | $639 | $1,989 | $1,297 | | Research and development expense | $5,791 | $1,972 | $17,629 | $7,262 | | Sales, marketing, general and admin | $5,006 | $1,485 | $15,608 | $4,536 | | Total operating expenses | $10,797 | $3,457 | $33,237 | $11,348 | | Loss from operations | $(10,069) | $(2,818) | $(31,248) | $(10,051) | | Net loss | $(9,382) | $(2,826) | $(30,575) | $(10,064) | | Net loss per share | $(0.06) | $(0.02) | $(0.19) | $(0.07) | - Total revenue for the nine months ended September 30, 2021, decreased to $1.94 million from $2.70 million in the prior year, primarily due to the cessation of product shipments and a shift to royalty revenue[15] - Net loss significantly increased for the nine months ended September 30, 2021, to $(30.58) million compared to $(10.06) million in the same period of 2020, driven by higher operating expenses, particularly in R&D and SG&A[15] Condensed Statements of Shareholders' Equity (Deficit) Outlines changes in the company's equity over time, including common stock, additional paid-in capital, and accumulated deficit Shareholders' Equity Changes (in thousands) | Metric | Balance at Jan 1, 2021 | Sales of common stock | Share-based compensation expense | Net loss | Balance at Sep 30, 2021 | | :----------------------------- | :--------------------- | :-------------------- | :------------------------------- | :------- | :---------------------- | | Common Stock (Par value) | $153 | $8 | $2 | - | $164 | | Additional paid-in capital | $601,224 | $122,885 | $12,343 | - | $738,991 | | Subscriptions receivable | $(6,135) | $6,135 | - | - | $0 | | Accumulated deficit | $(586,233) | - | - | $(30,575) | $(616,808) | | Total shareholders' equity | $9,009 | $129,028 | $12,345 | $(30,575) | $122,347 | - Total shareholders' equity increased significantly from $9.01 million at January 1, 2021, to $122.35 million at September 30, 2021, primarily driven by $129.03 million from sales of common stock[18] - The accumulated deficit grew from $(586.23) million at January 1, 2021, to $(616.81) million at September 30, 2021, reflecting the net loss incurred during the period[18] Condensed Statements of Cash Flows Reports the cash generated and used by operating, investing, and financing activities over specific periods Condensed Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(21,245) | $(11,847) | | Net cash provided by (used in) investing activities | $(2,034) | $431 | | Net cash provided by financing activities | $131,552 | $10,606 | | Change in cash, cash equivalents, and restricted cash | $108,273 | $(810) | | Cash, cash equivalents, and restricted cash at end of period | $125,570 | $5,462 | - Net cash used in operating activities increased to $(21.25) million for the nine months ended September 30, 2021, from $(11.85) million in the prior year, primarily due to increased operating expenses[20][98] - Net cash provided by financing activities significantly increased to $131.55 million for the nine months ended September 30, 2021, from $10.61 million in the prior year, mainly driven by proceeds from common stock issuance[20][100][101][103] Notes to Condensed Financial Statements Provides detailed explanations and additional information regarding the figures presented in the condensed financial statements 1. Management's Statement Management confirms the unaudited financial statements are fairly stated and highlights the strategic shift to automotive Lidar development - MicroVision, Inc. is prioritizing the development of its 1st Generation Long Range Lidar (LRL) module for automotive safety and autonomous driving applications[24] - The company's previous strategy of selling AR displays, Interactive Displays, or Consumer Lidars to OEMs/ODMs has not yielded significant sales or royalties, leading to a search for strategic alternatives since February 2020[25] Cash and Cash Equivalents | Date | Amount (in millions) | | :--- | :------------------- | | Sep 30, 2021 | $125.1 | 2. Net Loss Per Share Explains the calculation of basic and diluted net loss per share, noting that potentially dilutive securities were anti-dilutive Net Loss Per Share (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :------------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Net loss available for common shareholders | $(9,382) | $(2,826) | $(30,575) | $(10,064) | | Weighted-average common shares outstanding | 163,985 | 143,685 | 159,452 | 137,027 | | Net loss per share - basic and diluted | $(0.06) | $(0.02) | $(0.19) | $(0.07) | - The net loss per share increased from $(0.02) to **$(0