Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 5-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Microvision Inc | ' |
Entity Central Index Key | '0000065770 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 42,971,000 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $15,338 | $5,375 |
Accounts receivable, net of allowance of $373 and $373 | 135 | 24 |
Inventory | 49 | 49 |
Other current assets | 256 | 336 |
Total current assets | 15,778 | 5,784 |
Property and equipment, net | 924 | 1,065 |
Restricted cash | 435 | 435 |
Intangible assets | 1,112 | 1,145 |
Other assets | 18 | 18 |
Total assets | 18,267 | 8,447 |
Current liabilities | ' | ' |
Accounts payable | 1,369 | 1,610 |
Accrued liabilities | 2,700 | 2,455 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 347 | 680 |
Warrant liability | 0 | 4,902 |
Current portion of capital lease obligations | 5 | 15 |
Total current liabilities | 4,421 | 9,662 |
Deferred rent, net of current portion | 533 | 481 |
Total liabilities | 4,954 | 10,143 |
Commitments and contingencies (Note 6) | ' | ' |
Shareholders equity | ' | ' |
Preferred stock, par value $.001; 25,000 shares authorized; 0 and 0 shares issued and outstanding | 0 | 0 |
Common stock, par value $.001; 100,000 shares authorized; 42,961 and 32,069 shares issued and outstanding | 43 | 32 |
Additional paid-in capital | 471,997 | 448,981 |
Accumulated deficit | -458,727 | -450,709 |
Total shareholders' equity (deficit) | 13,313 | -1,696 |
Total liabilities and shareholders' equity | $18,267 | $8,447 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | ||
Current assets | ' | ' |
Allowance for doubtful accounts receivable, current | $373 | $373 |
Stockholders equity | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000 | 25,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 42,961 | 32,069 |
Common stock, shares outstanding | 42,961 | 32,069 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Development revenue | $1,193 | $300 |
Product revenue | 9 | 1,219 |
Contract revenue | 17 | 282 |
Total revenue | 1,219 | 1,801 |
Cost of product revenue | -10 | 664 |
Cost of contract revenue | 9 | 137 |
Total cost of revenue | -1 | 801 |
Gross margin | 1,220 | 1,000 |
Research and development expense | 2,543 | 2,252 |
Sales, marketing, general and administrative expense | 1,959 | 2,403 |
Gain on disposal of fixed assets | 0 | -2 |
Gain on sale of previously reserved inventory | -227 | -5 |
Total operating expenses | 4,275 | 4,648 |
Loss from operations | -3,055 | -3,648 |
Loss on warrant exchange | -4,967 | 0 |
Other income (expense) | 4 | -6 |
Net loss | ($8,018) | ($3,654) |
Net loss per share - basic and diluted | ($0.23) | ($0.14) |
Weighted-average shares outstanding - basic and diluted | 34,842 | 25,240 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Common stock | Additional paid-in capital | Accumulated deficit | Total |
In Thousands, except Share data | ||||
Beginning balances at Dec. 31, 2012 | $25 | $442,560 | ($437,531) | $5,054 |
Beginning balances, shares at Dec. 31, 2012 | 25,237,000 | ' | ' | ' |
Share-based compensation expense | 0 | 1,589 | 0 | 1,589 |
Share-based compensation expense, shares | 323,000 | ' | ' | ' |
Exercise of warrants and options | 0 | 41 | 0 | 41 |
Exercise of warrants and options, shares | 23,000 | ' | ' | ' |
Sales of common stock and warrants | 7 | 4,255 | 0 | 4,262 |
Sales of common stock and warrants, shares | 6,128,000 | ' | ' | ' |
Exchange of warrants | 0 | 536 | 0 | 536 |
Exchange of warrants, shares | 358,000 | ' | ' | ' |
Net loss | 0 | 0 | -13,178 | -13,178 |
Ending balances at Dec. 31, 2013 | 32 | 448,981 | -450,709 | -1,696 |
Ending balances, shares at Dec. 31, 2013 | 32,069,000 | ' | ' | ' |
Share-based compensation expense | 0 | 310 | 0 | 310 |
Share-based compensation expense, shares | 19,000 | ' | ' | ' |
Sales of common stock and warrants | 7 | 12,841 | 0 | 12,848 |
Sales of common stock and warrants, shares | 7,160,000 | ' | ' | ' |
Exchange of warrants | 4 | 9,865 | 0 | 9,869 |
Exchange of warrants, shares | 3,713,000 | ' | ' | ' |
Net loss | 0 | 0 | -8,018 | -8,018 |
Ending balances at Mar. 31, 2014 | $43 | $471,997 | ($458,727) | $13,313 |
Ending balances, shares at Mar. 31, 2014 | 42,961,000 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Cash Flows [Abstract] | ' | ' |
Net loss | ($8,018) | ($3,654) |
Adjustments to reconcile net loss to net cash used in operations: | ' | ' |
Depreciation | 158 | 239 |
Amortization of intangible assets | 33 | 40 |
Gain on disposal of property and equipment | 0 | -2 |
Non-cash share-based compensation expense | 305 | 385 |
Realized loss on warrant exchange | 4,967 | 0 |
Non-cash deferred rent | -15 | 0 |
Change in: | ' | ' |
Accounts receivable, net | -111 | -391 |
Inventory | 0 | 280 |
Other current assets | 85 | 509 |
Other assets | 0 | 4 |
Accounts payable | -274 | -754 |
Accrued liabilities | 272 | -506 |
Deferred revenue | 0 | -246 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -333 | 594 |
Net cash used in operating activities | -2,931 | -3,502 |
Cash flows from investing activities | ' | ' |
Decrease in restricted cash | 0 | 1 |
Proceeds on sale of property and equipment | 0 | 2 |
Purchases of property and equipment | -77 | -4 |
Net cash used in investing activities | -77 | -1 |
Cash flows from financing activities | ' | ' |
Principal payments under capital leases and long-term debt | -10 | -37 |
Net proceeds from issuance of common stock and warrants | 12,981 | 0 |
Net cash provided by (used in) financing activities | 12,971 | -37 |
Net increase (decrease) in cash and cash equivalents | 9,963 | -3,540 |
Cash and cash equivalents, at beginning of period | 5,375 | 6,850 |
Cash and cash equivalents, at end of period | 15,338 | 3,310 |
Supplemental disclosure of cash flow information | ' | ' |
Cash paid for interest | 0 | 5 |
Supplemental schedule of non-cash investing and financing activities | ' | ' |
Other non-cash additions to property and equipment | 0 | 33 |
Issuance of common stock for exchange of warrants | $9,869 | $0 |
MANAGEMENTS_STATEMENT_AND_PRIN
MANAGEMENT'S STATEMENT AND PRINCIPLES OF CONSOLIDATION - Note 1 | 3 Months Ended |
Mar. 31, 2014 | |
Organization Consolidation Abstract | ' |
Management's Statement and Principles of Consolidation - Note 1 | ' |
1. MANAGEMENT'S STATEMENT AND PRINCIPLES OF CONSOLIDATION | |
Management's Statement | |
The Condensed Consolidated Balance Sheet as of March 31, 2014, the Condensed Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013, the Condensed Consolidated Statements of Shareholders' Equity (Deficit), and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013 have been prepared by MicroVision, Inc. ("we" or "us") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at March 31, 2014 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (the "SEC"). The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed consolidated financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. | |
We have incurred significant losses since inception. We have funded operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from contract revenues, collaborative research and development agreements and product sales. At March 31, 2014, we had $15.3 million in cash and cash equivalents. | |
Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the third quarter of 2014. We will require additional cash to fund our operating plan past that time. | |
We plan to obtain additional cash through the issuance of equity or debt securities. There can be no assurance that additional cash will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate funds are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in development projects resulting in reductions in staff, operating costs, property and equipment expenditures and investment in research and development. | |
Our capital requirements will depend on many factors, including, but not limited to, the rate at which original equipment manufacturers (OEMs) or original device manufacturers (ODMs) introduce products incorporating the PicoP® display and image capture technologies and the market acceptance and competitive position of such products. If revenues are less than anticipated, if the mix of revenues vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to further the development of our technologies, for expenses associated with product development, and to respond to competitive pressures or to meet unanticipated development difficulties. In addition, our operating plan provides for the development of strategic relationships with systems and equipment manufacturers that may require additional investments by us. | |
We have received a report from our independent registered public accounting firm regarding the consolidated financial statements for the year ended December 31, 2013 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. These consolidated financial statements are prepared assuming the Company will continue as a going concern. | |
Principles of Consolidation | |
Our condensed consolidated financial statements include the accounts of MicroVision, Inc. and MicroVision Innovations Singapore Pte. Ltd. ("MicroVision Singapore"), a wholly owned foreign subsidiary. MicroVision Singapore was incorporated in April 2011 and was engaged in advanced research and development activities and operation support functions for MicroVision, Inc. There were no material intercompany accounts and transactions during the three months ended March 31, 2014. | |
NET_LOSS_PER_SHARE_Note_2
NET LOSS PER SHARE - Note 2 | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Earnings Per Share [Abstract] | ' | ||||||
Net Loss Per Share - Note 2 | ' | ||||||
2. NET LOSS PER SHARE | |||||||
Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the reporting periods. Diluted net loss per share is calculated using the weighted-average number of common shares outstanding and taking into account the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities outstanding. Potentially dilutive common stock equivalents primarily consist of warrants, employee stock options and nonvested equity shares. Diluted net loss per share for the three months ended March 31, 2014 and 2013 is equal to basic net loss per share because the effect of all potential common stock outstanding during the periods, including options, warrants and nonvested equity shares is anti-dilutive. The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Numerator: | |||||||
Net loss available for common shareholders - basic and diluted | $ | -8,018 | $ | -3,654 | |||
Denominator: | |||||||
Weighted-average common shares outstanding - basic and diluted | 34,842 | 25,240 | |||||
Net loss per share - basic and diluted | $ | -0.23 | $ | -0.14 | |||
On March 31, 2014 and 2013, we excluded the following convertible securities from diluted net loss per share, as the effect of including them would have been anti-dilutive: publicly traded warrants exercisable for 0 and 753,000 shares of common stock, respectively, options and private warrants exercisable into a total of 8,388,000 and 5,657,000 shares of common stock, respectively, and 108,000 and 176,000 nonvested equity shares, respectively. | |||||||
CONCENTRATION_OF_SALES_TO_MAJO
CONCENTRATION OF SALES TO MAJOR CUSTOMERS - Note3 | 3 Months Ended |
Mar. 31, 2014 | |
Risks and Uncertainties [Abstract] | ' |
CONCENTRATION OF SALES TO MAJOR CUSTOMERS - Note3 | ' |
3. CONCENTRATION OF SALES TO MAJOR CUSTOMERS | |
For the three months ended March 31, 2014, one commercial customer accounted for 98% of our total revenue and one commercial customer accounted for 83% of our net accounts receivable balance at March 31, 2014. For the three months ended March 31, 2013, two commercial customers accounted for approximately 84% of our total revenue. The accounts receivable balance from these customers was approximately 95% of our net accounts receivable balance at March 31, 2013. | |
INVENTORY_Note_4
INVENTORY - Note 4 | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventory Disclosure | ' | ||||||
Inventory - Note 4 | ' | ||||||
4. INVENTORY | |||||||
Inventory consists of the following: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 23,000 | $ | 23,000 | |||
Finished goods | 26,000 | 26,000 | |||||
$ | 49,000 | $ | 49,000 | ||||
The inventory at March 31, 2014 and December 31, 2013 consisted of components and finished goods primarily composed of our accessory pico projectors. Inventory is stated at the lower of cost or market. Management periodically assesses the need to provide for obsolescence of inventory and adjusts the carrying value of inventory to its net realizable value when required. In addition, we reduce the value of our inventory to its estimated scrap value when management determines that it is not probable that the inventory will be consumed through the normal course of business during the next twelve months. In 2013, we recorded inventory write-downs of $303,000. At March 31, 2014 and December 31, 2013, we have recorded aggregate write-downs of $7,761,000 and $7,964,000, respectively, offsetting inventory deemed to be obsolete or scrap inventory. From time to time, we may enter into arrangements to sell the obsolete or scrap inventory, or enter into consignment agreements with third-parties to sell the units, resulting in a gain in the period such transactions are realized. | |||||||
SHAREBASED_COMPENSATION_Note_5
SHARE-BASED COMPENSATION - Note 5 | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Disclosure Of Compensation Related Costs | ' | ||||||||||
Share-Based Compensation - Note 5 | ' | ||||||||||
5. SHARE-BASED COMPENSATION | |||||||||||
We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. The following table shows the amount of share-based compensation expense included in the consolidated statements of operations: | |||||||||||
Three Months Ended | |||||||||||
Share-based compensation | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Cost of contract revenue | $ | - | $ | 4,000 | |||||||
Cost of product revenue | - | 1,000 | |||||||||
Research and development expense | 114,000 | 160,000 | |||||||||
Sales, marketing, general and administrative expense | 191,000 | 220,000 | |||||||||
Total share-based compensation expense | $ | 305,000 | $ | 385,000 | |||||||
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 March 31, 2014: | |||||||||||
Weighted | |||||||||||
Average | |||||||||||
Weighted | Remaining | ||||||||||
Average | Contractual | Aggregate | |||||||||
Exercise | Term | Intrinsic | |||||||||
Options | Shares | Price | (years) | Value | |||||||
Outstanding as of March 31, 2014 | 1,860,000 | $ | 8.78 | 7.4 | $ | 85,000 | |||||
Exercisable as of March 31, 2014 | 903,000 | $ | 15.38 | 5.6 | $ | 46,000 | |||||
As of March 31, 2014, our unamortized share-based employee compensation related to stock options was $1.0 million which we plan to amortize over the next 2.1 years and our unamortized share-based compensation related to the restricted stock units was $82,000 which we plan to amortize over the next 0.3 years. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES - Note 6 | 3 Months Ended |
Mar. 31, 2014 | |
Commitments And Contingencies Disclosure Footnote | ' |
Commitments and Contingencies - Note 6 | ' |
6. COMMITMENTS AND CONTINGENCIES | |
Litigation | |
On March 31, 2014, Asia Optical Co., Inc., a supplier pursuant to an agreement entered into in 2008, filed a complaint for arbitration with the American Arbitration Association claiming that we ordered products from them and failed to take delivery of and pay for such products. The relief sought in the complaint is $3.6 million plus attorneys' fees, interest and arbitration costs. We are defending against the claim. An adverse outcome of these proceedings could materially and adversely affect our financial condition. At this stage, we cannot predict the likelihood of an unfavorable outcome or the range of potential loss. | |
We are also subject to various claims and pending or threatened lawsuits in the normal course of business. We are not currently party to any other legal proceedings that management believes are reasonably possible to have a material adverse effect on our consolidated financial position, results of operations or cash flows. | |
Adverse purchase commitments | |
We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our PicoP based products. We periodically assess the need to provide for impairment on these purchase contracts and record a loss on purchase commitments when required. As of March 31, 2014 and December 31, 2013 we had approximately $500,000 and $500,000, respectively, accrued for adverse purchase commitments related to these purchase contracts. | |
COMMON_STOCK_AND_WARRANTS_Note
COMMON STOCK AND WARRANTS - Note 7 | 3 Months Ended |
Mar. 31, 2014 | |
Common Stock And Warrants - Note 7 | ' |
COMMON STOCK AND WARRANTS - Note 7 | ' |
7. COMMON STOCK AND WARRANTS | |
In March 2014, we raised $13.9 million before issuance costs of approximately $1.0 million through an underwritten offering of 7.2 million shares of our common stock and warrants to purchase 2.1 million shares of our common stock. Each unit was sold to investors for $1.94 and consisted of one share of common stock and one warrant to purchase 0.3 shares of common stock. The warrants have an exercise price of $2.47 per share, are exercisable beginning six months from the date of issuance, and expire on the fifth anniversary of the date of issuance. | |
In September 2013, we raised $6.6 million before issuance costs of approximately $452,000 from the sale of 3.5 million shares of common stock and warrants to purchase up to an aggregate of 2.1 million shares of our common stock in a registered direct offering. | |
In May 2013, we raised $5.85 million before issuance costs of approximately $362,000 from the sale of 2.6 million shares of common stock and warrants to purchase up to an aggregate of 2.0 million shares of our common stock in a registered direct offering. | |
In February 2014, we issued 3,713,309 shares of our common stock under the warrant exchange provisions of our May and September 2013 registered direct offerings. Under the warrant exchange provisions, the holders could elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. We did not receive additional cash consideration in the exchange transaction. During the three months ended March 31, 2014, we recognized a loss of $5.0 million on the exchange as the fair market value of the common stock issued was greater than the obligation recorded due to an increase in our stock price since December 31, 2013. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Management's Statement | ' |
Management's Statement | |
The Condensed Consolidated Balance Sheet as of March 31, 2014, the Condensed Consolidated Statements of Operations for the three months ended March 31, 2014 and 2013, the Condensed Consolidated Statements of Shareholders' Equity (Deficit), and Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2014 and 2013 have been prepared by MicroVision, Inc. ("we" or "us") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at March 31, 2014 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (the "SEC"). The year-end condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed consolidated financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. | |
We have incurred significant losses since inception. We have funded operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from contract revenues, collaborative research and development agreements and product sales. At March 31, 2014, we had $15.3 million in cash and cash equivalents. | |
Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the third quarter of 2014. We will require additional cash to fund our operating plan past that time. | |
We plan to obtain additional cash through the issuance of equity or debt securities. There can be no assurance that additional cash will be available or that, if available, it will be available on terms acceptable to us on a timely basis. If adequate funds are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include reducing our planned investment in development projects resulting in reductions in staff, operating costs, property and equipment expenditures and investment in research and development. | |
Our capital requirements will depend on many factors, including, but not limited to, the rate at which original equipment manufacturers (OEMs) or original device manufacturers (ODMs) introduce products incorporating the PicoP® display and image capture technologies and the market acceptance and competitive position of such products. If revenues are less than anticipated, if the mix of revenues vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to further the development of our technologies, for expenses associated with product development, and to respond to competitive pressures or to meet unanticipated development difficulties. In addition, our operating plan provides for the development of strategic relationships with systems and equipment manufacturers that may require additional investments by us. | |
Going Concern | ' |
We have received a report from our independent registered public accounting firm regarding the consolidated financial statements for the year ended December 31, 2013 that includes an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. These consolidated financial statements are prepared assuming the Company will continue as a going concern. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
Our condensed consolidated financial statements include the accounts of MicroVision, Inc. and MicroVision Innovations Singapore Pte. Ltd. ("MicroVision Singapore"), a wholly owned foreign subsidiary. MicroVision Singapore was incorporated in April 2011 and was engaged in advanced research and development activities and operation support functions for MicroVision, Inc. There were no material intercompany accounts and transactions during the three months ended March 31, 2014. | |
Net Loss Per Share | ' |
Net Loss Per Share | |
Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the reporting periods. Diluted net loss per share is calculated using the weighted-average number of common shares outstanding and taking into account the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities outstanding. Potentially dilutive common stock equivalents primarily consist of warrants, employee stock options and nonvested equity shares. | |
Share-based Compensation | ' |
We use the straight-line attribution method to allocate the fair value of share-based compensation awards over the requisite service period for each award. | |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Net Loss Per Share Tables | ' | ||||||
Net Loss Per Share (Tables) | ' | ||||||
The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Numerator: | |||||||
Net loss available for common shareholders - basic and diluted | $ | -8,018 | $ | -3,654 | |||
Denominator: | |||||||
Weighted-average common shares outstanding - basic and diluted | 34,842 | 25,240 | |||||
Net loss per share - basic and diluted | $ | -0.23 | $ | -0.14 | |||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | ||||||
Mar. 31, 2014 | |||||||
Inventory Tables | ' | ||||||
Inventory (Tables) | ' | ||||||
Inventory consists of the following: | |||||||
March 31, | December 31, | ||||||
2014 | 2013 | ||||||
Raw materials | $ | 23,000 | $ | 23,000 | |||
Finished goods | 26,000 | 26,000 | |||||
$ | 49,000 | $ | 49,000 | ||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 3 Months Ended | ||||||||||
Mar. 31, 2014 | |||||||||||
Share-Based Compensation Tables | ' | ||||||||||
Stock-based employee compensation expense | ' | ||||||||||
The following table shows the amount of share-based compensation expense included in the consolidated statements of operations: | |||||||||||
Three Months Ended | |||||||||||
Share-based compensation | March 31, | ||||||||||
2014 | 2013 | ||||||||||
Cost of contract revenue | $ | - | $ | 4,000 | |||||||
Cost of product revenue | - | 1,000 | |||||||||
Research and development expense | 114,000 | 160,000 | |||||||||
Sales, marketing, general and administrative expense | 191,000 | 220,000 | |||||||||
Total share-based compensation expense | $ | 305,000 | $ | 385,000 | |||||||
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 March 31, 2014: | |||||||||||
Weighted | |||||||||||
Average | |||||||||||
Weighted | Remaining | ||||||||||
Average | Contractual | Aggregate | |||||||||
Exercise | Term | Intrinsic | |||||||||
Options | Shares | Price | (years) | Value | |||||||
Outstanding as of March 31, 2014 | 1,860,000 | $ | 8.78 | 7.4 | $ | 85,000 | |||||
Exercisable as of March 31, 2014 | 903,000 | $ | 15.38 | 5.6 | $ | 46,000 | |||||
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Net Loss Per Share Details | ' | ' | ' |
Net loss available for common shareholders - basic and diluted | ($8,018) | ($3,654) | ($13,178) |
Weighted-average shares outstanding - basic and diluted | 34,842 | 25,240 | ' |
Net loss per share - basic and diluted | ($0.23) | ($0.14) | ' |
Net_Loss_Per_Share_Convertible
Net Loss Per Share (Convertible Securities and Options Excluded Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Publicly Traded Warrants Exercisable | ' | ' |
Anti-dilutive shares | 0 | 753,000 |
Options and Private Warrants Exercisable | ' | ' |
Anti-dilutive shares | 8,388,000 | 5,657,000 |
Nonvested Equity Shares | ' | ' |
Anti-dilutive shares | 108,000 | 176,000 |
Recovered_Sheet1
Concentration of Sales to Major Customers (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Customer Revenue Concentration | ' | ' |
Concentration Risk, Percentage | 98.00% | 84.00% |
Accounts Receivable Concentration | ' | ' |
Concentration Risk, Percentage | 83.00% | 95.00% |
Inventory_Components_Details
Inventory Components (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Inventory Components Details | ' | ' |
Raw materials | $23,000 | $23,000 |
Finished goods | 26,000 | 26,000 |
Inventory, net | $49,000 | $49,000 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
Inventory Narrative Details | ' | ' | ' |
Inventory write-downs | $0 | $303,000 | ' |
Inventory allowance | $7,761,000 | ' | $7,964,000 |
ShareBased_Compensation_Schedu
Share-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based employee compensation expense | $305,000 | $385,000 |
Cost of contract revenue | ' | ' |
Share-based employee compensation expense | 0 | 4,000 |
Cost of product revenue | ' | ' |
Share-based employee compensation expense | 0 | 1,000 |
Research and development expense | ' | ' |
Share-based employee compensation expense | 114,000 | 160,000 |
Sales, marketing, general and administrative expense | ' | ' |
Share-based employee compensation expense | $191,000 | $220,000 |
SharedBased_Compensation_Optio
Shared-Based Compensation (Options Activity and Position) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Shared-Based Compensation Options Activity And Position Details | ' |
Outstanding shares | 1,860,000 |
Weighted-average exercise price of options outstanding | $8.78 |
Weighted-average remaining contractual term (in years) of options outstanding | '7 years 146 days |
Aggregate intrinsic value of options outstanding | $85,000 |
Exercisable shares | 903,000 |
Weighted-average exercise price of options exercisable | $15.38 |
Weighted-average remaining contractual term (in years) of options exercisable | '5 years 219 days |
Aggregate intrinsic value of options exercisable | $46,000 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Employee Stock Options | ' |
Unrecognized compensation cost related to share-based compensation | $1,000,000 |
Weighted-average service period, years | '2 years 37 days |
Restricted Stock Rights | ' |
Unrecognized compensation cost related to share-based compensation | $82,000 |
Weighted-average service period, years | '0 years 110 days |
Recovered_Sheet2
Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Commitments And Contingencies Adverse Purchase Commitments Narrative Details | ' | ' |
Accrued liability for loss on commitments to purchase materials to support production of PicoP based products | $500,000 | $500,000 |
Common_Stock_and_Warrants_Narr
Common Stock and Warrants (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Feb. 28, 2014 | Sep. 30, 2013 | 31-May-13 | Mar. 31, 2014 | Dec. 31, 2013 | |
Common Stock And Warrants Narrative Details | ' | ' | ' | ' | ' | ' |
Number of shares of common stock issued | 7,200,000 | 3,713,309 | 3,500,000 | 2,600,000 | ' | ' |
Cash received from stock sale, before issuance costs | $13,900,000 | $0 | $6,600,000 | $5,850,000 | $12,848,000 | $4,262,000 |
Stock issuance costs | $1,000,000 | ' | $452,000 | $362,000 | ' | ' |
Common shares underlying warrants | 2,100,000 | ' | ' | ' | 2,100,000 | ' |
Warrant exercise price, per share | $2.47 | ' | ' | ' | $2.47 | ' |
Date from which warrants are exercisable | 30-Sep-14 | ' | ' | ' | ' | ' |
Warrant term, in years | '5 years | ' | ' | ' | ' | ' |
Warrant terms and provisions | ' | ' | ' | ' | ' | ' |
In March 2014, we raised $13.9 million before issuance costs of approximately $1.0 million through an underwritten offering of 7.2 million shares of our common stock and warrants to purchase 2.1 million shares of our common stock. Each unit was sold to investors for $1.94 and consisted of one share of common stock and one warrant to purchase 0.3 shares of common stock. The warrants have an exercise price of $2.47 per share, are exercisable beginning six months from the date of issuance, and expire on the fifth anniversary of the date of issuance. | In February 2014, we issued 3,713,309 shares of our common stock under the warrant exchange provisions of our May and September 2013 registered direct offerings. Under the warrant exchange provisions, the holders could elect to exchange the warrants for a variable number of shares of common stock as determined by a formula included in the warrants. We did not receive additional cash consideration in the exchange transaction. During the three months ended March 31, 2014, we recognized a loss of $5.0 million on the exchange as the fair market value of the common stock issued was greater than the obligation recorded due to an increase in our stock price since December 31, 2013. | In September 2013, we raised $6.6 million before issuance costs of approximately $452,000 from the sale of 3.5 million shares of common stock and warrants to purchase up to an aggregate of 2.1 million shares of our common stock in a registered direct offering. | In May 2013, we raised $5.85 million before issuance costs of approximately $362,000 from the sale of 2.6 million shares of common stock and warrants to purchase up to an aggregate of 2.0 million shares of our common stock in a registered direct offering. | |||