MICROVISION, INC. Revenue Disclosure

5. REVENUE RECOGNITION

 

Disaggregation of Revenue

 

The following table provides information about disaggregated revenue by timing of revenue recognition (in thousands):

 SCHEDULE OF DISAGGREGATION OF REVENUE 

		Revenue				Revenue				Revenue				Total
		Year Ended December 31, 2025
						License and
		Product				Royalty				Contract
		Revenue				Revenue				Revenue				Total
Timing of revenue recognition:
Products and services transferred at a point in time		$	610			$	550			$	8			$	1,168
Products and services transferred over time			-				-				40				40
Total		$	610			$	550			$	48			$	1,208

 

		Revenue				Revenue				Revenue				Total
		Year Ended December 31, 2024
						License and
		Product				Royalty				Contract
		Revenue				Revenue				Revenue				Total
Timing of revenue recognition:
Products and services transferred at a point in time		$	4,117			$	475			$	104			$	4,696
Products and services transferred over time			-				-				-				-
Total		$	4,117			$	475			$	104			$	4,696

 

		Revenue				Revenue				Revenue				Total
		Year Ended December 31, 2023
						License and
		Product				Royalty				Contract
		Revenue				Revenue				Revenue				Total
Timing of revenue recognition:
Products and services transferred at a point in time		$	1,019			$	4,888			$	1,106			$	7,013
Products and services transferred over time			-				-				246				246
Total		$	1,019			$	4,888			$	1,352			$	7,259

 

The following table provides information about revenue and long-lived assets, which is comprised of property and equipment, net, and operating lease right-of-use assets, by geographic area (in thousands):

SCHEDULE OF INFORMATION ABOUT REVENUE AND LONG-LIVED ASSETS 

		December 31,								December 31,								December 31,
		2025								2024								2023
Geographic Area		Revenue				Long-Lived Assets				Revenue				Long-Lived Assets				Revenue				Long-Lived Assets
United States		$	260			$	13,943			$	1,058			$	17,583			$	4,627			$	19,580
Germany			945				4,412				3,628				6,224				2,138				3,210
Other foreign countries			3				-				10				-				494				-
Total		$	1,208			$	18,355			$	4,696			$	23,807			$	7,259			$	22,790

 

 

Contract Balances

 

Under Topic 606, the Company’s rights to consideration are presented separately depending on whether those rights are conditional or unconditional. Unconditional rights to consideration are included within accounts receivable, net of allowances in the consolidated balance sheets.

 

Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages):

 SCHEDULE OF CONTRACT WITH CUSTOMER, CONTRACT ASSET, CONTRACT LIABILITY, AND RECEIVABLE 

		December 31,				December 31,
		2025				2024				$ Change				% Change
Contract assets and accounts receivable		$	47			$	926			$	(879	)			(94.9	)
Contract liabilities			-				(308	)			308				100.0
Net contract assets (liabilities)		$	47			$	618			$	(571	)			(92.4	)

 

Contract Acquisition Costs

 

The Company is required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. As the Company currently does not pay any commissions upon the signing of a contract, no commission cost has been incurred as of December 31, 2025.