MICROVISION, INC. Stock Compensation Disclosure

10. SHARE-BASED COMPENSATION

 

The Company issues share-based compensation to employees in the form of restricted stock units (RSUs), performance stock units (PSUs), and stock options. The following table summarizes the amount of share-based compensation expense by line item on the consolidated statements of operations:

 SCHEDULE OF SHARE-BASED COMPENSATION EXPENSE 

		Year Ended December 31,
		2025				2024				2023
Research and development expense		$	2,577			$	3,973			$	6,531
Sales, marketing, general and administrative expense			(1,876	)			7,562				9,610
Total Share-based compensation expense		$	701			$	11,535			$	16,141

 

During the year ended December 31, 2025, $4.4 million and $3.2 million of expense previously recognized within sales, marketing, general and administrative expense was reversed related to the forfeiture of awards in connection with the CEO and CFO separations, respectively, that occurred during the same period.

 

 

Options Activity and Positions

 

The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term, and aggregate intrinsic value of options outstanding and options exercisable as of December 31, 2025 (in thousands, except per share data):

 SCHEDULE OF OPTIONS ACTIVITY AND POSITIONS 

Options		Shares				Weighted-average exercise price				Weighted-average remaining contractual term (in years)				Aggregate intrinsic value (thousands)
Outstanding as of December 31, 2022			945			$	1.26				5.7			$	1,137
Granted			-				-
Exercised			(191	)			0.92
Forfeited or expired			(2	)			0.28
Outstanding as of December 31, 2023			752			$	1.35				4.6			$	1,083
Granted			-				-
Exercised			(84	)			0.73
Forfeited or expired			(2	)			1.18
Outstanding as of December 31, 2024			666			$	1.43				3.5			$	185
Granted			-
Exercised			(14	)
Forfeited or expired			(50	)
Outstanding as of December 31, 2025			602			$	1.40				2.0			$	44
Vested and expected to vest as of December 31, 2025			602			$	1.40				2.0				44
Exercisable as of December 31, 2025			602			$	1.40				2.0				44

 

As of December 31, 2025, there is no unrecognized share-based employee compensation related to stock options.

 

Restricted Stock Activity and Positions

 

The following table summarizes activity and positions with respect to RSUs and PSUs for the years ended December 31, 2025, 2024 and 2023 (in thousands, except per share data):

 SCHEDULE OF ACTIVITY AND POSITIONS WITH RESPECT TO RSUs AND PSUs 

		Shares				Weighted-average price
Unvested as of December 31, 2022			8,866			$	3.85
Granted			3,491				3.89
Vested			(1,872	)			6.98
Forfeited			(502	)			7.47
Unvested as of December 31, 2023			9,983				3.09
Granted			9,234				1.26
Vested			(4,537	)			3.63
Forfeited			(1,767	)			2.65
Unvested as of December 31, 2024 ¹			12,913				1.53
Granted			12,730				1.16
Vested			(4,373	)			1.59
Forfeited			(11,408	)			1.34
Unvested as of December 31, 2025			9,862			$	1.24

 

1

The number of unvested RSUs and PSUs and the weighted-average price as of December 31, 2024 reported in this Note has been adjusted to 12,913 from 12,013 and to $1.53 from $1.51, respectively, as reported in Note 9 of the Notes to Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, due to the correction of an administrative error. The correction resulted in no change to the previously issued financial statements and the Company deem the administrative error not material from a quantitative or qualitative perspective.

 

During the year ended December 31, 2025, the Company granted 3,064,000 shares to non-executive employees for annual, short-term incentive, and new hire awards. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately or over three or four years.

 

 

During the year ended December 31, 2025, the Company granted 78,000 shares to non-employees. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately.

 

During the year ended December 31, 2025, the Company granted 9,589,000 shares to executive employees and directors for annual, short-term incentive, and long-term incentive awards. These shares are valued based on the closing price of common stock on the dates of grant and vest immediately, over one year, or over three years

 

As of December 31, 2025, unrecognized share-based compensation related to RSUs was $6.2 million, which will be expensed over the next 1.9 years. Unrecognized share-based compensation related to executive PSUs was $1.2 million, which will be expensed over the next 0.4 years.