MicroVision (MVIS) 10-Q 6 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 03, 2014
Document And Entity Information	'	'
Entity Registrant Name	'Microvision Inc	'
Entity Central Index Key	'0000065770	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-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	'	44,448,000
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'
Cash and cash equivalents	$10,896	$5,375
Accounts receivable, net	577	24
Inventory	79	49
Other current assets	458	336
Total current assets	12,010	5,784
Property and equipment, net	842	1,065
Restricted cash	435	435
Intangible assets	1,046	1,145
Other assets	18	18
Total assets	14,351	8,447
Current liabilities	'	'
Accounts payable	1,660	1,610
Accrued liabilities	2,361	2,455
Billings in excess of costs and estimated earnings on uncompleted contracts	103	680
Warrant liability	0	4,902
Current portion of capital lease obligations	0	15
Total current liabilities	4,124	9,662
Deferred rent, net of current portion	523	481
Total liabilities	4,647	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; 44,444 and 32,069 shares issued and outstanding	44	32
Additional paid-in capital	475,143	448,981
Accumulated deficit	-465,483	-450,709
Total shareholders' equity (deficit)	9,704	-1,696
Total liabilities and shareholders' equity	$14,351	$8,447

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Stockholders equity	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,444,000	32,069,000
Common stock, shares outstanding	44,444,000	32,069,000

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Statement [Abstract]	'	'	'	'
Development revenue	$230	$660	$1,691	$1,840
Product revenue	16	176	44	2,312
Contract revenue	722	128	1,063	483
Total revenue	968	964	2,798	4,635
Cost of product revenue	5	8	28	1,509
Cost of contract revenue	363	76	507	239
Total cost of revenue	368	84	535	1,748
Gross margin	600	880	2,263	2,887
Research and development expense	2,369	2,893	7,148	7,484
Sales, marketing, general and administrative expense	1,588	2,132	5,416	6,636
Gain on disposal of fixed assets	-1	-33	-29	-35
Gain on sale of previously reserved inventory	'	-26	-455	-32
Total operating expenses	3,956	4,966	12,080	14,053
Loss from operations	-3,356	-4,086	-9,817	-11,166
Change in warrant liability	0	397	0	397
Loss on warrant exchange	0	18	-4,967	18
Other income (expense)	1	4	10	-6
Net loss	($3,355)	($3,667)	($14,774)	($10,757)
Net loss per share - basic and diluted	($0.08)	($0.13)	($0.36)	($0.40)
Weighted-average shares outstanding - basic and diluted	43,858	28,448	40,605	26,739

Consolidated_Statements_of_Sha

Consolidated Statements of Shareholders' Equity (USD $)	Common stock	Additional paid-in capital	Accumulated deficit	Total
Beginning balances at Dec. 31, 2012	$25,000	$442,560,000	($437,531,000)	$5,054,000
Beginning balances, shares at Dec. 31, 2012	25,237,000	'	'	'
Share-based compensation expense	0	1,589,000	0	1,589,000
Share-based compensation expense, shares	323,000	'	'	'
Exercise of warrants and options	0	41,000	0	41,000
Exercise of warrants and options, shares	23,000	'	'	'
Sales of common stock and warrants	7,000	4,255,000	0	4,262,000
Sales of common stock and warrants, shares	6,128,000	'	'	'
Exchange of warrants	0	536,000	0	536,000
Exchange of warrants, shares	358,000	'	'	'
Net loss	0	0	-13,178,000	-13,178,000
Ending balances at Dec. 31, 2013	32,000	448,981,000	-450,709,000	-1,696,000
Ending balances, shares at Dec. 31, 2013	32,069,000	'	'	'
Share-based compensation expense	0	721,000	0	721,000
Share-based compensation expense, shares	101,000	'	'	'
Sales of common stock and warrants	8,000	15,576,000	0	15,584,000
Sales of common stock and warrants, shares	8,561,000	'	'	'
Exchange of warrants	4,000	9,865,000	0	9,869,000
Exchange of warrants, shares	3,713,000	'	'	'
Net loss	0	0	-14,774,000	-14,774,000
Ending balances at Sep. 30, 2014	$44,000	$475,143,000	($465,483,000)	$9,704,000
Ending balances, shares at Sep. 30, 2014	44,444,000	'	'	'

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Statement of Cash Flows [Abstract]	'	'
Net loss	($14,774)	($10,757)
Adjustments to reconcile net loss to net cash used in operations:	'	'
Depreciation	331	727
Amortization of intangible assets	99	118
Gain on disposal of property and equipment	-29	-35
Non-cash share-based compensation expense	717	996
Change in warrant liability	'	-397
Realized loss on warrant exchange	4,967	-18
Inventory write-downs	42	303
Non-cash deferred rent	-47	-16
Change in:	'	'
Accounts receivable, net	-553	978
Inventory	-72	166
Other current assets	-118	789
Other assets	0	4
Accounts payable	110	-1,413
Accrued liabilities	-5	-896
Deferred revenue	0	-609
Billings in excess of costs and estimated earnings on uncompleted contracts	-577	111
Net cash used in operating activities	-9,909	-9,949
Cash flows from investing activities	'	'
Decrease in restricted cash	0	1
Proceeds on sale of property and equipment	34	35
Purchases of property and equipment	-173	-273
Net cash used in investing activities	-139	-237
Cash flows from financing activities	'	'
Principal payments under capital leases and long-term debt	-15	-106
Net proceeds from issuance of common stock and warrants	15,584	11,763
Net cash provided by financing activities	15,569	11,657
Net increase (decrease) in cash and cash equivalents	5,521	1,471
Cash and cash equivalents, at beginning of period	5,375	6,850
Cash and cash equivalents, at end of period	10,896	8,321
Supplemental disclosure of cash flow information	'	'
Cash paid for interest	2	10
Supplemental schedule of non-cash investing and financing activities	'	'
Other non-cash additions to property and equipment	0	431
Issuance of common stock for exchange of warrants	$9,869	$207

MANAGEMENTS_STATEMENT_AND_PRIN

MANAGEMENT'S STATEMENT AND PRINCIPLES OF CONSOLIDATION - Note 1	9 Months Ended
	Sep. 30, 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 September 30, 2014, the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013, the Condensed Consolidated Statements of Shareholders' Equity (Deficit), and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013 have been prepared by MicroVision, Inc. (the "Company", "we" or "us") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at September 30, 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 ("GAAP"). 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 and nine months ended September 30, 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 September 30, 2014, we had $10.9 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 first quarter of 2015. 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 or 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 PicoP® display technology 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 and nine months ended September 30, 2014.

NET_LOSS_PER_SHARE_Note_2

NET LOSS PER SHARE - Note 2	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 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				Nine Months Ended
			30-Sep				30-Sep
			2014		2013		2014		2013
	Numerator:
	Net loss available for common shareholders - basic and diluted	$	-3,355	$	-3,667	$	-14,774	$	-10,757
	Denominator:
	Weighted-average common shares outstanding - basic and diluted		43,858		28,448		40,605		26,739
	Net loss per share - basic and diluted	$	-0.08	$	-0.13	$	-0.36	$	-0.4
	We excluded the following convertible securities from diluted net loss per share, as the effect of including them would have been anti-dilutive:
			Three Months Ended				Nine Months Ended
			30-Sep				30-Sep
			2014		2013		2014		2013
	Options and Warrants Exercisable		8,990,000		10,239,000		8,990,000		10,239,000
	Nonvested Equity Shares		60,000		308,000		60,000		308,000
	Total		9,050,000		10,547,000		9,050,000		10,547,000

CONCENTRATION_OF_SALES_TO_MAJO

CONCENTRATION OF SALES TO MAJOR CUSTOMERS - Note3	9 Months Ended
	Sep. 30, 2014
Risks and Uncertainties [Abstract]	'
CONCENTRATION OF SALES TO MAJOR CUSTOMERS - Note3	'
	3. CONCENTRATION OF SALES TO MAJOR CUSTOMERS
	For the three and nine months ended September 30, 2014, three commercial customers accounted for 92% and 91% of our total revenue, respectively. One commercial customer accounted for 100% of our net accounts receivable balance at September 30, 2014. For both the three and nine months ended September 30, 2013, three commercial customers accounted for approximately 89% of our total revenue, respectively. At September 30, 2013, one commercial customer accounted for 52% of our net accounts receivable balance.

INVENTORY_Note_4

INVENTORY - Note 4	9 Months Ended
	Sep. 30, 2014
Inventory Disclosure	'
Inventory - Note 4	'
	4. INVENTORY
	Inventory consists of the following:
			30-Sep		December 31,
			2014		2013
	Raw materials	$	-	$	23,000
	Finished goods		79,000		26,000
		$	79,000	$	49,000
	The inventory at September 30, 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. During the nine months ended September 30, 2014, we recorded inventory write-downs of $42,000. In 2013, we recorded inventory write-downs of $303,000. At September 30, 2014 and December 31, 2013, we have recorded aggregate write-downs of $7,605,000 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	9 Months Ended
	Sep. 30, 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						Nine Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
	Cost of contract revenue	$	27,000		$	11,000		$	27,000		$	15,000
	Cost of product revenue		-			-			-			1,000
	Research and development expense		36,000			172,000			23,000			260,000
	Sales, marketing, general and administrative expense		148,000			332,000			667,000			720,000
	Total share-based employee compensation expense	$	211,000		$	515,000		$	717,000		$	996,000
	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 September 30, 2014:
							Weighted
							Average
					Weighted		Remaining
					Average		Contractual			Aggregate
					Exercise		Term			Intrinsic
	Options	Shares			Price		(years)			Value
	Outstanding as of September 30, 2014	2,429,000		$	6.72		7.6		$	201,000
	Exercisable as of September 30, 2014	1,240,000		$	11.23		6.1		$	66,485
	As of September 30, 2014, our unamortized share-based employee compensation was $1.3 million which we plan to amortize over the next 2.9 years and our unamortized share-based compensation related to restricted stock units was $65,000 which we plan to amortize over the next 0.7 years.

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES - Note 6	9 Months Ended
	Sep. 30, 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 products based on our PicoP® display technology. We periodically assess the need to provide for impairment on these purchase contracts and record a loss on purchase commitments when required. As of September 30, 2014 and December 31, 2013 we had $500,000 accrued for adverse purchase commitments related to these purchase contracts.

COMMON_STOCK_AND_WARRANTS_Note

COMMON STOCK AND WARRANTS - Note 7	9 Months Ended
	Sep. 30, 2014
Common Stock And Warrants - Note 7	'
COMMON STOCK AND WARRANTS - Note 7	'
	7. COMMON STOCK AND WARRANTS
	In June 2014, we entered into an At-the-Market (ATM) equity offering agreement with Meyers Associates, L.P. Under the agreement we may, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $4.5 million. As of September 30, 2014, we have received proceeds of approximately $2.9 million before issuance costs of approximately $158,000 from the sale of 1.4 million shares of our common stock.
	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 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 3.7 million shares of our common stock under the exchange provisions of warrants issued in our May and September 2013 registered direct offerings. During the nine months ended September 30, 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.

NEW_ACCOUNTING_PRONOUNCEMENTS_

NEW ACCOUNTING PRONOUNCEMENTS - Note 8	9 Months Ended
	Sep. 30, 2014
New Accounting Pronouncements Disclosure	'
New Accounting Pronouncements	'
	8. NEW ACCOUNTING PRONOUNCEMENTS
	In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. ASU 2014-09 will be effective in the first quarter of fiscal 2017 and may be applied on a full retrospective or modified retrospective approach. We are still evaluating the impact of implementation of this standard on our financial statements.
	In August 2014, the FASB issued Accounting Standards Update No. 2014-15 ("ASU 2014-15"), Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. ASU 2014-15 will be effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We do not expect the implementation of this standard to have a material effect on our financial statements.

Summary_of_Significant_Account

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Notes to Financial Statements	'
Management's Statement	'
	Management's Statement
	The Condensed Consolidated Balance Sheet as of September 30, 2014, the Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2014 and 2013, the Condensed Consolidated Statements of Shareholders' Equity (Deficit), and Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013 have been prepared by MicroVision, Inc. (the "Company", "we" or "us") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at September 30, 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 ("GAAP"). 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 and nine months ended September 30, 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 September 30, 2014, we had $10.9 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 first quarter of 2015. 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 or 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 PicoP® display technology 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 and nine months ended September 30, 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)	9 Months Ended
	Sep. 30, 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				Nine Months Ended
			30-Sep				30-Sep
			2014		2013		2014		2013
	Numerator:
	Net loss available for common shareholders - basic and diluted	$	-3,355	$	-3,667	$	-14,774	$	-10,757
	Denominator:
	Weighted-average common shares outstanding - basic and diluted		43,858		28,448		40,605		26,739
	Net loss per share - basic and diluted	$	-0.08	$	-0.13	$	-0.36	$	-0.4
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	'
	We excluded the following convertible securities from diluted net loss per share, as the effect of including them would have been anti-dilutive:
			Three Months Ended				Nine Months Ended
			30-Sep				30-Sep
			2014		2013		2014		2013
	Options and Warrants Exercisable		8,990,000		10,239,000		8,990,000		10,239,000
	Nonvested Equity Shares		60,000		308,000		60,000		308,000
	Total		9,050,000		10,547,000		9,050,000		10,547,000

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Sep. 30, 2014
Inventory Tables	'
Inventory (Tables)	'
	Inventory consists of the following:
			30-Sep		December 31,
			2014		2013
	Raw materials	$	-	$	23,000
	Finished goods		79,000		26,000
		$	79,000	$	49,000

ShareBased_Compensation_Tables

Share-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 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						Nine Months Ended
			30-Sep						30-Sep
			2014			2013			2014			2013
	Cost of contract revenue	$	27,000		$	11,000		$	27,000		$	15,000
	Cost of product revenue		-			-			-			1,000
	Research and development expense		36,000			172,000			23,000			260,000
	Sales, marketing, general and administrative expense		148,000			332,000			667,000			720,000
	Total share-based employee compensation expense	$	211,000		$	515,000		$	717,000		$	996,000
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 September 30, 2014:
							Weighted
							Average
					Weighted		Remaining
					Average		Contractual			Aggregate
					Exercise		Term			Intrinsic
	Options	Shares			Price		(years)			Value
	Outstanding as of September 30, 2014	2,429,000		$	6.72		7.6		$	201,000
	Exercisable as of September 30, 2014	1,240,000		$	11.23		6.1		$	66,485

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended		9 Months Ended		12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Net Loss Per Share Details	'	'	'	'	'
Net loss available for common shareholders - basic and diluted	($3,355)	($3,667)	($14,774)	($10,757)	($13,178)
Weighted-average shares outstanding - basic and diluted	43,858	28,448	40,605	26,739	'
Net loss per share - basic and diluted	($0.08)	($0.13)	($0.36)	($0.40)	'

Net_Loss_Per_Share_Convertible

Net Loss Per Share (Convertible Securities and Options Excluded Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Anti-dilutive shares	9,050,000	10,547,000	9,050,000	10,547,000
Options and Private Warrants Exercisable	'	'	'	'
Anti-dilutive shares	8,900,000	10,239,000	8,990,000	10,239,000
Nonvested Equity Shares	'	'	'	'
Anti-dilutive shares	60,000	308,000	60,000	308,000

Recovered_Sheet1

Concentration of Sales to Major Customers (Narrative) (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Customer Revenue Concentration	'	'	'	'
Concentration Risk, Percentage	92.00%	89.00%	91.00%	89.00%
Accounts Receivable Concentration	'	'	'	'
Concentration Risk, Percentage	'	'	100.00%	52.00%

Inventory_Components_Details

Inventory Components (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Inventory Components Details	'	'
Raw materials	$0	$23,000
Finished goods	79,000	26,000
Inventory, net	$79,000	$49,000

Inventory_Narrative_Details

Inventory (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Inventory Narrative Details	'	'	'
Inventory write-downs	$42,000	$303,000	'
Inventory allowance	$7,605,000	'	$7,964,000

ShareBased_Compensation_Schedu

Share-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based employee compensation expense	$211,000	$515,000	$717,000	$996,000
Cost of contract revenue	'	'	'	'
Share-based employee compensation expense	27,000	11,000	27,000	15,000
Cost of product revenue	'	'	'	'
Share-based employee compensation expense	0	0	0	1,000
Research and development expense	'	'	'	'
Share-based employee compensation expense	36,000	172,000	23,000	260,000
Sales, marketing, general and administrative expense	'	'	'	'
Share-based employee compensation expense	$148,000	$332,000	$667,000	$720,000

SharedBased_Compensation_Optio

Shared-Based Compensation (Options Activity and Position) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Shared-based Compensation Options Activity And Position Details	'
Outstanding shares	2,429,000
Weighted-average exercise price of options outstanding	$6.72
Weighted-average remaining contractual term (in years) of options outstanding	'7 years 219 days
Aggregate intrinsic value of options outstanding	$201,000
Exercisable shares	1,240,000
Weighted-average exercise price of options exercisable	$11.23
Weighted-average remaining contractual term (in years) of options exercisable	'6 years 37 days
Aggregate intrinsic value of options exercisable	$66,485

ShareBased_Compensation_Narrat

Share-Based Compensation (Narrative) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Employee Stock Options	'
Unrecognized compensation cost related to share-based compensation	$1,300,000
Weighted-average service period, years	'2 years 329 days
Restricted Stock Rights	'
Unrecognized compensation cost related to share-based compensation	$65,000
Weighted-average service period, years	'0 years 256 days

Recovered_Sheet2

Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) (USD $)	Sep. 30, 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					9 Months Ended	12 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Sep. 30, 2013	31-May-13	Sep. 30, 2014	Dec. 31, 2013
Common Stock And Warrants Narrative Details	'	'	'	'	'	'	'
Number of shares of common stock issued	1,400,000	7,200,000	3,700,000	3,500,000	2,600,000	'	'
Cash received from stock sale, before issuance costs	$2,900,000	$13,900,000	$0	$6,600,000	$5,850,000	$15,584,000	$4,262,000
Stock issuance costs	$158,000	$1,000,000	'	$452,000	$362,000	'	'
Common shares underlying warrants	'	2,100,000	'	'	'	'	'
Warrant exercise price, per share	'	$2.47	'	'	'	'	'
Date from which warrants are exercisable	'	30-Sep-14	'	'	'	'	'
Warrant term, in years	'	'5 years	'	'	'	'	'
Warrant terms and provisions	'	'	'	'	'	'	'
	In June 2014, we entered into an At-the-Market (ATM) equity offering agreement with Meyers Associates, L.P. Under the agreement we may, from time to time, at our discretion offer and sell shares of our common stock having an aggregate value of up to $4.5 million. As of September 30, 2014, we have received proceeds of approximately $2.9 million before issuance costs of approximately $158,000 from the sale of 1.4 million shares of our common stock.	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 and expire on the fifth anniversary of the date of issuance.	In February 2014, we issued 3.7 million shares of our common stock under the exchange provisions of warrants issued in our May and September 2013 registered direct offerings. During the nine months ended September 30, 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.