Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 11, 2015 | Jun. 30, 2014 | |
Document And Entity Information | |||
Entity Registrant Name | Microvision Inc | ||
Entity Central Index Key | 65770 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 44,776,000 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Public Float | $87,400,000 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $8,349 | $5,375 |
Accounts receivable, net of allowances of $52 and $373 | 669 | 24 |
Inventory | 116 | 49 |
Other current assets | 491 | 336 |
Total current assets | 9,625 | 5,784 |
Property and equipment, net | 894 | 1,065 |
Restricted cash | 435 | 435 |
Intangible assets | 973 | 1,145 |
Other assets | 18 | 18 |
Total assets | 11,945 | 8,447 |
Current liabilities | ||
Accounts payable | 1,626 | 1,610 |
Accrued liabilities | 2,729 | 2,470 |
Billings on uncompleted contracts in excess of related costs | 230 | 680 |
Warrant liability | 0 | 4,902 |
Total current liabilities | 4,585 | 9,662 |
Deferred rent, net of current portion | 488 | 481 |
Total liabilities | 5,073 | 10,143 |
Commitments and contingencies (Note 11) | ||
Shareholders Equity (Deficit) | ||
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; 44,758 and 32,069 shares issued and outstanding at December 31, 2014 and 2013, respectively | 45 | 32 |
Additional paid-in capital | 475,656 | 448,981 |
Accumulated deficit | -468,829 | -450,709 |
Total shareholders' equity (deficit) | 6,872 | -1,696 |
Total liabilities and shareholders' equity (deficit) | $11,945 | $8,447 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Allowance for doubtful accounts | $52 | $373 |
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 | 44,758,000 | 32,069,000 |
Common stock, shares outstanding | 44,758,000 | 32,069,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Statement [Abstract] | ||
Development revenue | $1,691 | $2,909 |
Product revenue | 392 | 2,341 |
Contract revenue | 1,402 | 602 |
Total revenue | 3,485 | 5,852 |
Cost of product revenue | 228 | 1,518 |
Cost of contract revenue | 816 | 283 |
Total cost of revenue | 1,044 | 1,801 |
Gross margin | 2,441 | 4,051 |
Research and development expense | 9,067 | 10,544 |
Sales, marketing, general and administrative expense | 7,005 | 8,757 |
Gain on sale of previously reserved inventory | -463 | -156 |
Total operating expenses | 15,609 | 19,145 |
Loss from operations | -13,168 | -15,094 |
Gain (loss) on warrant exchange | -4,967 | 1,900 |
Other income (expense) | 15 | 16 |
Net loss | ($18,120) | ($13,178) |
Net loss per share - basic and diluted | ($0.44) | ($0.47) |
Weighted-average shares outstanding - basic and diluted | 41,599 | 28,025 |
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 options | 0 | 41,000 | 0 | 41,000 |
Exercise of 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 | 705,000 | 0 | 705,000 |
Share-based compensation expense, shares | 105,000 | |||
Sales of common stock and warrants | 9,000 | 16,105,000 | 0 | 16,114,000 |
Sales of common stock and warrants, shares | 8,871,000 | |||
Exchange of warrants | 4,000 | 9,865,000 | 0 | 9,869,000 |
Exchange of warrants, shares | 3,713,000 | |||
Net loss | 0 | 0 | -18,120,000 | -18,120,000 |
Ending balances at Dec. 31, 2014 | $45,000 | $475,656,000 | ($468,829,000) | $6,872,000 |
Ending balances, shares at Dec. 31, 2014 | 44,758,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities | ||
Net loss | ($18,120) | ($13,178) |
Adjustments to reconcile net loss to net cash used in operations: | ||
Depreciation | 414 | 923 |
Amortization of intangible assets | 132 | 158 |
Impairment of intangible assets | 40 | 277 |
Non-cash share-based compensation expense | 713 | 1,606 |
(Gain) loss on warrant exchange | 4,967 | -1,900 |
Inventory write-downs | 42 | 303 |
Other non-cash adjustments | -91 | -66 |
Change in: | ||
Accounts receivable, net | -645 | 1,091 |
Inventory | -109 | 145 |
Other current and non-current assets | -155 | 884 |
Accounts payable | -25 | -1,486 |
Accrued liabilities | 335 | -1,387 |
Deferred revenue | 0 | -609 |
Billings on uncompleted contracts in excess of related costs | -450 | 582 |
Net cash used in operating activities | -12,952 | -12,657 |
Cash flows from investing activities | ||
Proceeds on sale of property and equipment | 34 | 35 |
Purchases of property and equipment | -207 | -375 |
Net cash used in investing activities | -173 | -340 |
Cash flows from financing activities | ||
Principal payments under capital leases and long-term debt | -15 | -120 |
Net proceeds from issuance of common stock and warrants | 16,114 | 11,642 |
Net cash provided by financing activities | 16,099 | 11,522 |
Net increase (decrease) in cash and cash equivalents | 2,974 | -1,475 |
Cash and cash equivalents, at beginning of period | 5,375 | 6,850 |
Cash and cash equivalents, at end of period | 8,349 | 5,375 |
Supplemental disclosure of cash flow information | ||
Cash paid for interest | 3 | 12 |
Supplemental schedule of non-cash investing and financing activities | ||
Non-cash additions to property and equipment | 101 | 407 |
Issuance of common stock for exchange of warrants | $9,869 | $536 |
1_The_Company_and_liquidity
1. The Company and liquidity | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
The Company and liquidty - Note 1 | 1. The Company and liquidity |
MicroVision, Inc. (the "Company") is developing its proprietary PicoP® display technology which can be used by our customers to create high-resolution miniature laser display and imaging engines. Our PicoP display technology uses our widely patented expertise in two dimensional Micro-Electrical Mechanical Systems (MEMS), lasers, optics, and electronics to create a high quality video or still image from a small form factor device with lower power needs than conventional display technologies. Our ingredient brand strategy is to develop and supply PicoP display technology directly or through licensing arrangements to original device manufacturers (ODMs) and original equipment manufacturers (OEMs) in various market segments, including consumer electronics and automotive, for integration into their products. | |
Based on our current operating plan, and including the $8.0 million payment received under a licensing agreement that was executed with our customer in March 2015, we anticipate that we have sufficient cash and cash equivalents to fund our operations through December 2015. We will require additional cash to fund our operating plan past that time. We plan to obtain additional cash through sales and licensing activities and/or 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, capital expenditures and investments in research and development. | |
Our capital requirements will depend on many factors, including, but not limited to, the rate at which OEMs or 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, 2014 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. | |
Summary_of_significant_account
Summary of significant accounting policies - Note 2 | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization Consolidation Abstract | |||||||||||||
Summary of significant accounting policies - Note 2 | 2. Summary of significant accounting policies | ||||||||||||
Use of estimates | |||||||||||||
The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. We have identified the following areas where prudent estimates and assumptions have been made in preparing the financial statements: revenue recognition, valuation of share-based payments, and impairment assessment. | |||||||||||||
Cash and cash equivalents and fair value of financial instruments | |||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. The hierarchy is summarized below. | |||||||||||||
Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities, | |||||||||||||
Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in markets that are not sufficiently active to qualify as Level 1 or, other inputs that are derived principally from or corroborated by observable market data by correlation or other means, and | |||||||||||||
Level 3 - Unobservable inputs for which there is little or no market data, which requires us to develop our own assumptions, which are significant to the measurement of the fair values. | |||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, long-term debt and warrant liabilities. Excluding the long term debt and warrant liabilities, the carrying value of our financial instruments approximates fair value due to their short maturities. The carrying amount of long-term debt at December 31, 2013 was not materially different from the fair value based on rates available for similar types of arrangements. In combination with our registered direct offerings of common stock in May and September 2013, we issued warrants to purchase common stock. Based on the terms in the conditional exchange provision of the warrants issued, we made the determination to classify the warrants as a liability given that the exchange provision could result in the issuance of a variable number of shares of common stock. At each balance sheet date that the warrants were outstanding, we evaluated the warrant liability and any change in value was recorded as a non-operating gain or loss on the statement of operations. Due to the exchange provision of the warrants, the determination of the fair value of the warrant liability varied depending on our common stock price. Because the price of our common stock was less than the exercise price of the warrant, we calculated the fair value of the warrant liability as the fair value of the common stock that would have been required to be issued to settle the exchange provision of the warrant. | |||||||||||||
There were no assets or liabilities measured at fair value using level 2 or 3 valuation inputs as of December 31, 2014. | |||||||||||||
The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | |||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liabilities | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Our cash equivalents are comprised of money market savings accounts and equity securities. We classify investment securities available-for-sale purchased with 90 days or less remaining until contractual maturity as cash equivalents. | |||||||||||||
Intangible assets | |||||||||||||
Our intangible assets consist exclusively of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of these assets is measured by comparison of their carrying values to the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. | |||||||||||||
Inventory | |||||||||||||
Inventory consists of raw materials and finished goods assemblies. Inventory is recorded at the lower of cost or market with cost determined on a net realizable value basis. We periodically assess the need to account for obsolescence of inventory and adjust 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 we determine that it is not probable that the inventory will be consumed through normal production during the next twelve months. | |||||||||||||
Property and equipment | |||||||||||||
Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. | |||||||||||||
Restricted cash | |||||||||||||
As of December 31, 2014 and 2013, restricted cash was in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted cash balance includes two letters of credit which are outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, Washington. The balance is required over the term of the lease, which expires in January 2019. | |||||||||||||
Revenue recognition | |||||||||||||
We generate revenue from many sources and activities. To date, our sources can be classified as development revenue, product revenue, or contract revenue. | |||||||||||||
Development revenue | |||||||||||||
We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following: | |||||||||||||
the nature of our obligation under the agreement, | |||||||||||||
whether provisions leading to variable revenues exist, | |||||||||||||
whether any payments are refundable, | |||||||||||||
whether the deliverables should be treated as one unit of accounting or separated into multiple units, | |||||||||||||
whether substantive milestones exist, | |||||||||||||
whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and | |||||||||||||
whether a licensing agreement exists. | |||||||||||||
We recognize development revenue as work progresses on an agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement. Amendments to the estimated costs are recognized in the period in which the facts become known. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense. | |||||||||||||
Product revenue | |||||||||||||
Product revenue is recognized when there is sufficient evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. Product revenue is recognized either upon expiration of the contractual acceptance period after which there are no rights of return, or net of estimated returns and allowances. Provisions are made for warranties at the time revenue is recognized. | |||||||||||||
Contract revenue | |||||||||||||
We recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period, after which there are no rights of return. | |||||||||||||
We recognize contract revenue on long-term, cost plus fixed fee, and fixed price contracts using the percentage-of-completion method. Under the percentage-of-completion method, revenue is recognized as work progresses on the contract. Our analysis of these contracts also contemplates whether contracts should be combined or segmented. We combine closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, we may segment a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The percentage-of-completion method relies on estimates of total expected contract revenue and costs. We have developed processes that allow us to make prudent estimates of the cost to complete a contract. When work begins on a contract, and at the end of each accounting period, we estimate the labor, material and other costs required to complete the contract using data provided by our technical team, project managers, vendors, outside consultants and others and compare these to costs incurred to date. Recognized revenues are subject to amendments for actual costs incurred. Amendments to revenue estimates are recognized in the period in which the facts become known. Historically, we have made only immaterial amendments to estimates to complete the contract at each reporting period. In the future, amendments to estimates could significantly impact recognized revenue in any one reporting period. If we are unable to estimate costs on a contract, revenue is recognized using the completed-contract method. Under the completed-contract method, revenue and contract costs are deferred and both are recognized when all deliverables are completed. | |||||||||||||
We establish an allowance for estimated losses if the estimated cost to complete a contract exceeds the remaining contract value. The entire estimated loss is recognized in the period in which the loss becomes known. We determine the estimated cost to complete a contract through a detailed review of the work to be completed, the resources available to complete the work and the technical difficulty of the remaining work. If amendments to estimated costs to complete the contract are higher than the total contract revenue, the entire contract loss will be recognized. The actual cost to complete a contract can vary significantly from the estimated cost, due to a variety of factors including availability of technical staff, availability of materials and technical difficulties that arise during the course of a project. | |||||||||||||
Cost of revenue | |||||||||||||
Cost of product revenue includes the direct and allocated indirect costs of manufacturing products sold to customers. Direct costs include labor, materials and other costs incurred directly in the manufacture of these products. Indirect costs include labor and other costs associated with operating our manufacturing capabilities and capacity. | |||||||||||||
Cost of contract revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units and evaluation kits. Direct costs include labor, materials and other costs incurred directly in performing on a contract or producing prototype units and evaluation kits. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. | |||||||||||||
Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. | |||||||||||||
Concentration of credit risk and sales to major customers | |||||||||||||
Concentration of Credit Risk | |||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2014, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. | |||||||||||||
Concentration of Sales to Major Customers | |||||||||||||
During 2014, two commercial customers accounted for 65% of our total revenue and one commercial customer accounted for 80% of our accounts receivable balance at December 31, 2014. During 2013, two commercial customers accounted for 86% of our total revenue. | |||||||||||||
Income taxes | |||||||||||||
Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | |||||||||||||
Net loss per share | |||||||||||||
Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share assuming dilution is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share assuming dilution is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods including options and warrants computed using the treasury stock method, is anti-dilutive. | |||||||||||||
As of December 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. The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years. | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Options and private warrants | 8,953,000 | 9,996,000 | |||||||||||
Nonvested equity shares | 60,000 | 108,000 | |||||||||||
9,013,000 | 10,104,000 | ||||||||||||
Research and development | |||||||||||||
Research and development expenses consist of costs incurred for internally funded research and product development activities as well as collaborative research and development activities that are funded by customers. These costs include compensation related costs of employees, share-based compensation, materials, subcontracted services, facility costs, and depreciation of facilities and lab equipment. Research and development costs are expensed as incurred. | |||||||||||||
Share-based compensation | |||||||||||||
We issue share-based compensation to employees in the form of options exercisable into our common stock and restricted or unrestricted shares of our common stock. We account for equity instruments issued to employees using the straight-line attribution method of allocating the fair value of share-based compensation expense over the requisite service period of the related award. The value of restricted or unrestricted shares is determined using the fair value method, which is based on the number of shares granted and the closing price of our common stock on the NASDAQ Global Market on the date of grant. The value of options is determined using the Black-Scholes option pricing model with estimates of option lives, stock price volatility and interest rates, then expensed over the periods of service allowing for pre-vest forfeitures. Changes in the estimated inputs or using other option valuation methods could result in materially different option values and share-based compensation expense. The following table shows the amount of share-based compensation expense included in each line item of the statement of operations for each period shown: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Cost of product revenue | $ | - | $ | 1,000 | |||||||||
Cost of contract revenue | 28,000 | 19,000 | |||||||||||
Research and development expense | 34,000 | 466,000 | |||||||||||
Sales, marketing, general and administrative expense | 651,000 | 1,120,000 | |||||||||||
$ | 713,000 | $ | 1,606,000 | ||||||||||
Reclassifications | |||||||||||||
Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows as previously reported. | |||||||||||||
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. | |||||||||||||
Longterm_contracts_Note_3
Long-term contracts - Note 3 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Long-term contracts - Note 3 | 3. Long-term contracts | |||||||||
In October 2014, we entered into a $1.5 million agreement for display module support services as part of the production readiness and commercialization of our PicoP® display technology into products being developed by a prominent electronics company. Based on the terms of this agreement, we will recognize contract revenue under the completed-contract method. | ||||||||||
In March 2013, we entered into a $4.6 million collaborative research and development agreement with a prominent electronics company to incorporate our PicoP® display technology into a display module that would enable a variety of new products. As of September 30, 2014, we had completed all deliverables and obligations under the collaborative research and development agreement and have recognized the full contract value of $4.6 million. | ||||||||||
The following table summarizes the costs incurred on our collaborative research and development agreements and revenue contracts (in thousands): | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Costs and estimated earnings incurred on uncompleted contracts | $ | 314 | $ | 2,909 | ||||||
Billings on uncompleted contracts | -544 | -3,589 | ||||||||
$ | -230 | $ | -680 | |||||||
Included in accompanying consolidated balance sheets under the following captions: | ||||||||||
Billings on uncompleted contracts in excess of | ||||||||||
related costs | $ | -230 | $ | -680 | ||||||
$ | -230 | $ | -680 | |||||||
Inventory_Note_4
Inventory - Note 4 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Inventory Disclosure | ||||||||||
Inventory - Note 4 | 4. Inventory | |||||||||
Inventory consists of the following: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Raw materials | $ | 42,000 | $ | 23,000 | ||||||
Finished goods | 74,000 | 26,000 | ||||||||
$ | 116,000 | $ | 49,000 | |||||||
The inventory at December 31, 2014 and 2013 consisted of raw materials and finished goods assemblies. Inventory is stated at the lower of cost or market. Management periodically assesses the need to account 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 2014 and 2013, we recorded inventory write-downs of $42,000 and $303,000, respectively. At December 31, 2014 and 2013, we have aggregate write-downs recorded of $6,927,000 and $7,964,000, respectively, offsetting inventory on hand deemed to be obsolete or scrap inventory. | ||||||||||
Accrued_liabilities_Note_5
Accrued liabilities - Note 5 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Accrued liabilities - Note 5 | 5. Accrued liabilities | |||||||||
Accrued liabilities consist of the following: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Bonuses | $ | 889,000 | $ | 725,000 | ||||||
Payroll and payroll taxes | 322,000 | 375,000 | ||||||||
Compensated absences | 336,000 | 315,000 | ||||||||
Deferred rent credit | 134,000 | 99,000 | ||||||||
Warranty | 35,000 | 32,000 | ||||||||
Adverse purchase commitments | 500,000 | 500,000 | ||||||||
Professional fees | 78,000 | 76,000 | ||||||||
Other | 435,000 | 348,000 | ||||||||
$ | 2,729,000 | $ | 2,470,000 | |||||||
Property_and_equipment_net_Not
Property and equipment, net - Note 6 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Notes to Financial Statements | ||||||||||
Property and equipment, net - Note 6 | 6. Property and equipment, net | |||||||||
Property and equipment consists of the following: | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Production equipment | $ | 3,078,000 | $ | 2,943,000 | ||||||
Leasehold improvements | 494,000 | 502,000 | ||||||||
Computer hardware and software/lab equipment | 4,486,000 | 4,373,000 | ||||||||
Office furniture and equipment | 1,087,000 | 1,100,000 | ||||||||
9,145,000 | 8,918,000 | |||||||||
Less: Accumulated depreciation | -8,251,000 | -7,853,000 | ||||||||
$ | 894,000 | $ | 1,065,000 | |||||||
Depreciation expense was $414,000 and $923,000 in 2014 and 2013, respectively. | ||||||||||
The capital leases are collateralized by the related assets financed and by security deposits held by the lessors under the lease agreements. The cost and accumulated depreciation of equipment under capital leases was $704,000 and $704,000, respectively, at December 31, 2014 and 2013. | ||||||||||
Intangible_assets_Note_7
Intangible assets - Note 7 | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Notes to Financial Statements | |||||||
Intangible assets - Note 7 | 7. Intangible assets | ||||||
Our intangible assets consist exclusively of technology-based purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. The gross value of our intangible assets was $1.6 million as of December 31, 2014 and 2013. Amortization expense was $132,000 and $158,000 in 2014 and 2013, respectively. In 2014, we recorded an impairment amounting to $40,000 on 5 patents that were abandoned in prosecution. In 2013, we recorded an impairment amounting to $277,000 on 42 patents that were abandoned in prosecution. | |||||||
The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2014: | |||||||
Year ended December 31, | Amount | ||||||
2015 | $ | 128,000 | |||||
2016 | 127,000 | ||||||
2017 | 116,000 | ||||||
2018 | 115,000 | ||||||
2019 | 115,000 | ||||||
Thereafter | 372,000 | ||||||
Total | $ | 973,000 | |||||
8_Common_stock
8. Common stock | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Common stock - Note 8 | 8. Common stock |
In June 2014, we entered into an At-the-Market (ATM) equity 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 December 31, 2014 we have received proceeds of approximately $3.5 million before issuance costs of approximately $175,000 from the sale of 1.7 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. Details of the warrants are described below in Note 9. | |
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. Details of the warrants are described below in Note 9. | |
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. Details of the warrants are described below in Note 9. | |
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. 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. Details of the warrants are described below in Note 9. | |
9_Warrants
9. Warrants | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Notes to Financial Statements | ||||||||||||||||
Warrants - Note 9 | 9. 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 and expire on the fifth anniversary of the date of issuance. | ||||||||||||||||
In combination with our registered direct offerings of common stock in May and September 2013, we issued warrants to purchase common stock. Based on the terms in the conditional exchange provision of the warrants issued, we made the determination to classify the warrants as a liability given that the exchange provision could result in the issuance of a variable number of shares of common stock. At each balance sheet date that the warrants were outstanding, we evaluated the fair value of the warrants and any change in value was recorded as a non- operating gain or loss on the statement of operations. Due to the conditional exchange provision of the warrants, the determination of the fair value of the warrant liability varied depending on our common stock price. If the price of our common stock was less than the exercise price of the warrant, we calculated the fair value of the warrant liability as the fair value of the common stock that would have been required to be issued to settle the exchange provision of the warrant. If the price of our common stock had been greater than the exercise price of the warrant, we would have used a binomial option pricing model to estimate the fair value of the warrant as the exchange provision provided per the agreement would have no longer been available to the holder. | ||||||||||||||||
In February 2014, we issued 3,713,309 shares of our common stock under the conditional exchange provision of the warrants. We did not receive additional cash consideration in the exchange transaction. We recorded a loss of $5.0 million during the year ended December 31, 2014 on the exchange, as the fair market value of the common stock issued was greater than the obligation recorded due to the increase in stock price from December 31, 2013 to the date the warrants were exchanged. | ||||||||||||||||
The following summarizes activity with respect to MicroVision common stock warrants during the two years ended December 31, 2014: | ||||||||||||||||
Warrants to | Weighted | |||||||||||||||
purchase | average | |||||||||||||||
common | exercise | |||||||||||||||
shares | price | |||||||||||||||
Outstanding at December 31, 2012 | 5,131,000 | $ | 7.28 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | 2,216,000 | 2.71 | ||||||||||||||
Exercise price greater than intrinsic value | 1,855,000 | 2.44 | ||||||||||||||
Exercised | -358,000 | 1.77 | ||||||||||||||
Canceled/expired | -753,000 | 28.80 | ||||||||||||||
Outstanding at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | - | - | ||||||||||||||
Exercise price greater than intrinsic value | 2,148,000 | 2.47 | ||||||||||||||
Exercised | -3,713,000 | 2.67 | ||||||||||||||
Canceled/expired | - | - | ||||||||||||||
Outstanding at December 31, 2014 | 6,526,000 | $ | 3.08 | |||||||||||||
Exercisable at December 31, 2014 | 6,526,000 | $ | 3.08 | |||||||||||||
With the exception of common stock warrants that included the conditional exchange provision described above, we estimate the fair value of our common stock warrants using the Black-Scholes option pricing model with the following weighted-average assumptions used for grants in 2014: dividend yield of zero percent; expected volatility of 100%; risk-free interest rates of 1.6% and contractual lives of 5 years. | ||||||||||||||||
The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2014: | ||||||||||||||||
Warrants outstanding | Warrants exercisable | |||||||||||||||
Weighted | ||||||||||||||||
Number | average | Weighted | Number | Weighted | ||||||||||||
outstanding at | remaining | average | exercisable at | average | ||||||||||||
December 31, | contractual | exercise | December 31, | exercise | ||||||||||||
Range of exercise prices | 2014 | life (years) | price | 2014 | price | |||||||||||
$2.13 | 1,000,000 | 0.39 | $ | 2.13 | 1,000,000 | $ | 2.13 | |||||||||
$2.24 | 2,100,000 | 2.47 | 2.24 | 2,100,000 | 2.24 | |||||||||||
$2.47 | 2,148,000 | 4.21 | 2.47 | 2,148,000 | 2.47 | |||||||||||
$6.24 | 1,278,000 | 1.88 | 6.24 | 1,278,000 | 6.24 | |||||||||||
$2.13-$6.24 | 6,526,000 | 6,526,000 | ||||||||||||||
10_SharedBased_Compensation
10. Shared-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Of Compensation Related Costs | |||||||||||||
Share-based compensation - Note 10 | 10. 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 valuation of and accounting for share-based awards includes a number of complex and subjective estimates. These estimates include, but are not limited to, the future volatility of our stock price, future stock option exercise behaviors, estimated employee turnover and award forfeiture rates. We recognized $713,000 in share-based compensation expense for the year ended December 31, 2014, which includes a benefit of $344,000 related to a forfeiture adjustment that was recorded as a result of actual forfeitures being higher than initially estimated. | |||||||||||||
Description of Incentive Plans | |||||||||||||
The Company currently has two share-based incentive plans - the 2013 Incentive Plan and the Independent Director Stock Option Plan. | |||||||||||||
The 2013 Incentive Plan has 5.6 million shares authorized, of which 1,548,000 shares were available for awards as of December 31, 2014. The Independent Director Stock Option Plan has 113,000 shares authorized, of which 51,000 are issued and outstanding as of December 31, 2014. In June 2008, we determined not to issue additional options from the Independent Director Stock Option Plan. | |||||||||||||
Options Valuation Methodology and Assumptions | |||||||||||||
We use the Black-Scholes option valuation model to determine the fair value of options granted and use the closing price of our common stock as the fair market value of our stock on that date. | |||||||||||||
We consider historical stock price volatilities, volatilities of similar companies and other factors in determining estimates of future volatilities. | |||||||||||||
We use historical lives, including post-termination exercise behavior, as the basis for estimating expected lives. | |||||||||||||
Risk free rates are based on the U.S. Treasury Yield Curve as published by the U.S. Treasury. | |||||||||||||
The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assumptions (weighted average) | |||||||||||||
Volatility | 100% | 96% | |||||||||||
Expected term (in years) | 4.0 | 4.1 | |||||||||||
Risk-free rate | 1.30% | 1.00% | |||||||||||
Expected dividends | 0.00% | 0.00% | |||||||||||
Pre-vest forfeiture rate | 8.50% | 8.50% | |||||||||||
Grant date fair value of options granted | $ | 1.22 | $ | 1.49 | |||||||||
Options Activity and Positions | |||||||||||||
The following table summarizes activity and positions with respect to options for the two years ended December 31, 2014: | |||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Weighted | Remaining | ||||||||||||
Average | Contractual | Aggregate | |||||||||||
Exercise | Term | Intrinsic | |||||||||||
Options | Shares | Price | (years) | Value | |||||||||
Outstanding as of December 31, 2012 | 1,318,000 | $ | 13.71 | 6.8 | $ | - | |||||||
Granted | 824,000 | 2.22 | - | - | |||||||||
Exercised | -23,000 | 1.80 | - | - | |||||||||
Forfeited or expired | -214,000 | 13.86 | - | - | |||||||||
Outstanding as of December 31, 2013 | 1,905,000 | 8.86 | 7.4 | 1,500 | |||||||||
Granted | 717,000 | 1.78 | - | - | |||||||||
Exercised | - | - | - | - | |||||||||
Forfeited or expired | -195,000 | 9.49 | - | - | |||||||||
Outstanding as of December 31, 2014 | 2,427,000 | $ | 6.72 | 7.4 | $ | 18,700 | |||||||
Vested and expected to vest as of December 31, 2014 | 2,293,000 | $ | 7.00 | 7.3 | $ | 18,100 | |||||||
Exercisable as of December 31, 2014 | 1,263,000 | $ | 11.06 | 5.9 | $ | 14,100 | |||||||
There were no option exercises during the year ended December 31, 2014. The total intrinsic value of options exercised during the year ended December 31, 2013 was $21,000. | |||||||||||||
The total grant date fair value of options vested during the years ended December 31, 2014 and 2013 was $3.3 million and $1.7 million, respectively. As of December 31, 2014, our unamortized share-based compensation was $1.1 million which we plan to amortize over the next 2.7 years. | |||||||||||||
In August 2013, we issued 201,000 shares of restricted common stock to employees for payment of 2012 performance bonuses. These shares were valued using our closing stock price on the date of grant. These shares vested in November 2013 and expense was recognized over the vesting period. During 2013 we expensed $457,000 of share-based employee compensation for these awards. | |||||||||||||
As of December 31, 2014, our unamortized share-based compensation related to the restricted stock units was $43,000 which we plan to amortize over the next 6 months. | |||||||||||||
11_Commitments_and_contingenci
11. Commitments and contingencies | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments And Contingencies Disclosure Footnote | |||||||
Commitments and contingencies - Note 11 | 11. 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 contest the claim and are defending against it. 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 legal proceedings that management believes are reasonably possible to have a material adverse effect on the Company's financial position, results of operations or cash flows. | |||||||
Lease commitments | |||||||
We lease our office space and certain equipment under noncancelable capital and operating leases with initial or remaining terms in excess of one year. | |||||||
Future minimum rental commitments under operating leases for years ending December 31 are as follows: | |||||||
Operating | |||||||
leases | |||||||
2015 | $ | 430,000 | |||||
2016 | 442,000 | ||||||
2017 | 439,000 | ||||||
2018 | 446,000 | ||||||
2019 | 38,000 | ||||||
Thereafter | - | ||||||
Total minimum lease payments | $ | 1,795,000 | |||||
Net rent expense was $542,000 and $636,000 for 2014 and 2013, respectively. | |||||||
Adverse purchase commitments | |||||||
We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments when required if such commitments are in excess of our product needs or the costs are not expected to be recoverable. As of December 31, 2014 we have $500,000 accrued for commitments to purchase materials for the SHOWWX that were in excess of our estimated future proceeds from sale of the SHOWWX. | |||||||
12_Income_taxes
12. Income taxes | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Notes to Financial Statements | |||||||
Income taxes - Note 12 | 12. Income taxes | ||||||
A provision for income taxes has not been recorded for 2014 and 2013 due to the valuation allowances placed against the net operating losses and deferred tax assets arising during such periods. A valuation allowance has been recorded for all deferred tax assets. Based on our history of losses since inception, the available objective evidence creates sufficient uncertainty regarding the realizability of the deferred tax assets. | |||||||
At December 31, 2014, we have net operating loss carry-forwards of approximately $341.5 million, for federal income tax reporting purposes. In addition, we have research and development tax credits of $6.5 million. The net operating loss carry-forwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2018 to 2034 if not previously utilized. In addition to the tax benefits above, we have $1.2 million of capital loss carry-forwards that are scheduled to expire between 2015 and 2017. In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our stockholders during any three-year period would result in limitations on our ability to utilize our net operating loss carry-forwards. | |||||||
Deferred tax assets are summarized as follows: | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets, current | |||||||
Reserves | $ | 2,526,000 | $ | 2,994,000 | |||
Other | 617,000 | 621,000 | |||||
Total gross deferred tax assets, current | 3,143,000 | 3,615,000 | |||||
Deferred tax assets, noncurrent | |||||||
Net operating loss carryforwards | 116,520,000 | 111,339,000 | |||||
R&D credit carryforwards | 6,520,000 | 6,277,000 | |||||
Depreciation/amortization deferred | 22,642,000 | 24,526,000 | |||||
Other | 7,846,000 | 7,544,000 | |||||
Total gross deferred tax assets, noncurrent | 153,528,000 | 149,686,000 | |||||
Net deferred taxes before valuation allowance | 156,671,000 | 153,301,000 | |||||
Less: Valuation allowance | -156,671,000 | -153,301,000 | |||||
Deferred tax assets | $ | - | $ | - | |||
The valuation allowance, permanent items and the research and development credit carry forwards account for substantially all of the difference between our effective income tax rate and the Federal statutory tax rate of 34%. | |||||||
Certain net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes, the tax effect of this deduction when recognized is accounted for as a credit to shareholders' equity. | |||||||
We did not have any unrecognized tax benefits at December 31, 2014 and at December 31, 2013. | |||||||
We recognize interest accrued and penalties related to unrecognized tax benefits in tax expense. During the years ended December 31, 2014 and 2013, we recognized no interest or penalties. | |||||||
We file income tax returns in the U.S. federal jurisdiction and various states. Due to our operating loss and credit carry-forwards, the U.S. federal statute of limitations remains open for 1998 and onward. | |||||||
13_Retirement_savings_plan
13. Retirement savings plan | 12 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
Retirement savings plan - Note 13 | 13. Retirement savings plan |
We have a retirement savings plan that qualifies under Internal Revenue Code Section 401(k). The plan covers all qualified employees. Contributions to the plan by the Company are made at the discretion of the Board of Directors. During 2014 and 2013, there were no contributions to the plan by the Company. | |
14_Quarterly_financial_informa
14. Quarterly financial information (unaudited) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Quarterly financial information (unaudited) - Note 14 | 14. Quarterly financial information (Unaudited) | ||||||||||||
The following table presents our unaudited quarterly financial information for the years ending December 31, 2014 and 2013 (in thousands, except per share data): | |||||||||||||
Fiscal Year 2014 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 687 | $ | 968 | $ | 611 | $ | 1,219 | |||||
Gross margin | 178 | 600 | 443 | 1,220 | |||||||||
Net loss | -3,346 | -3,355 | -3,401 | -8,018 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.08 | -0.08 | -0.23 | |||||||||
Fiscal Year 2013 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 1,217 | $ | 964 | $ | 1,870 | $ | 1,801 | |||||
Gross margin | 1,164 | 880 | 1,007 | 1,000 | |||||||||
Net loss | -2,421 | -3,667 | -3,436 | -3,654 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.13 | -0.13 | -0.14 | |||||||||
15_Subsequent_events
15. Subsequent events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
15. Subsequent events | 15. Subsequent events |
In March 2015, we signed a multi-year license agreement with a customer granting them a non-exclusive license to our PicoP display technology for use in display modules it manufactures and sells. As part of the agreement, we received an $8.0 million up-front license fee in March 2015. In addition to the initial up-front license fee, we will also receive royalties for display modules sold by our customer. | |
In March 2015, we received orders from a customer totaling $14.5 million for components. We plan to begin shipment of components for these orders in the second half of 2015 and expect fulfillment to continue into 2016. | |
Recovered_Sheet1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Management's Statement and Policies (Policies) | MicroVision, Inc. (the "Company") is developing its proprietary PicoP® display technology which can be used by our customers to create high-resolution miniature laser display and imaging engines. Our PicoP display technology uses our widely patented expertise in two dimensional Micro-Electrical Mechanical Systems (MEMS), lasers, optics, and electronics to create a high quality video or still image from a small form factor device with lower power needs than conventional display technologies. Our ingredient brand strategy is to develop and supply PicoP display technology directly or through licensing arrangements to original device manufacturers (ODMs) and original equipment manufacturers (OEMs) in various market segments, including consumer electronics and automotive, for integration into their products. | ||||||||||||
Going Concern and Management's Plan | Based on our current operating plan, and including the $8.0 million payment received under a licensing agreement that was executed with our customer in March 2015, we anticipate that we have sufficient cash and cash equivalents to fund our operations through December 2015. We will require additional cash to fund our operating plan past that time. We plan to obtain additional cash through sales and licensing activities and/or 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, capital expenditures and investments in research and development. | ||||||||||||
Our capital requirements will depend on many factors, including, but not limited to, the rate at which OEMs or 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, 2014 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. | |||||||||||||
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles of the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from our estimates. We have identified the following areas where prudent estimates and assumptions have been made in preparing the financial statements: revenue recognition, valuation of share-based payments, and impairment assessment. | ||||||||||||
Principles of Consolidation | These consolidated financial statements are prepared assuming the Company will continue as a going concern. | ||||||||||||
Fair value of financial instruments | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, the authoritative guidance establishes a three level fair value inputs hierarchy, and requires an entity to maximize the use of observable valuation inputs and minimize the use of unobservable inputs. We use market data, assumptions and risks we believe market participants would use in measuring the fair value of the asset or liability, including the risks inherent in the inputs and the valuation techniques. The hierarchy is summarized below. | ||||||||||||
Level 1 - Observable inputs such as quoted prices in active markets for identical assets or liabilities, | |||||||||||||
Level 2 - Observable inputs such as quoted prices for similar assets or liabilities in markets that are not sufficiently active to qualify as Level 1 or, other inputs that are derived principally from or corroborated by observable market data by correlation or other means, and | |||||||||||||
Level 3 - Unobservable inputs for which there is little or no market data, which requires us to develop our own assumptions, which are significant to the measurement of the fair values. | |||||||||||||
Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities, long-term debt and warrant liabilities. Excluding the long term debt and warrant liabilities, the carrying value of our financial instruments approximates fair value due to their short maturities. The carrying amount of long-term debt at December 31, 2013 was not materially different from the fair value based on rates available for similar types of arrangements. In combination with our registered direct offerings of common stock in May and September 2013, we issued warrants to purchase common stock. Based on the terms in the conditional exchange provision of the warrants issued, we made the determination to classify the warrants as a liability given that the exchange provision could result in the issuance of a variable number of shares of common stock. At each balance sheet date that the warrants were outstanding, we evaluated the warrant liability and any change in value was recorded as a non-operating gain or loss on the statement of operations. Due to the exchange provision of the warrants, the determination of the fair value of the warrant liability varied depending on our common stock price. Because the price of our common stock was less than the exercise price of the warrant, we calculated the fair value of the warrant liability as the fair value of the common stock that would have been required to be issued to settle the exchange provision of the warrant. | |||||||||||||
There were no assets or liabilities measured at fair value using level 2 or 3 valuation inputs as of December 31, 2014. | |||||||||||||
The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | |||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liabilities | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Our cash equivalents are comprised of money market savings accounts and equity securities. We classify investment securities available-for-sale purchased with 90 days or less remaining until contractual maturity as cash equivalents. | |||||||||||||
Cash and cash equivalents | Our cash equivalents are comprised of money market savings accounts and equity securities. We classify investment securities available-for-sale purchased with 90 days or less remaining until contractual maturities as cash equivalents. | ||||||||||||
Intangible assets | Our intangible assets consist exclusively of purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability of these assets is measured by comparison of their carrying values to the projected undiscounted net cash flows associated with the related intangible assets or group of assets over their remaining lives. Measurement of an impairment loss for our intangible assets is based on the difference between the fair value of the asset and its carrying value. | ||||||||||||
Inventory | Inventory consists of raw materials and finished goods assemblies. Inventory is recorded at the lower of cost or market with cost determined on a net realizable value basis. We periodically assess the need to account for obsolescence of inventory and adjust 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 we determine that it is not probable that the inventory will be consumed through normal production during the next twelve months. | ||||||||||||
Property and equipment | Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (two to five years) using the straight-line method. Leasehold improvements are depreciated over the shorter of estimated useful lives or the lease term. Costs for repairs and maintenance are charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal. | ||||||||||||
Restricted investments | As of December 31, 2014 and 2013, restricted cash was in money market savings accounts and serve as collateral for $435,000 in irrevocable letters of credit. The restricted cash balance includes two letters of credit which are outstanding in connection with a lease agreement for our corporate headquarters building in Redmond, Washington. The balance is required over the term of the lease, which expires in January 2019. | ||||||||||||
Revenue recognition | We generate revenue from many sources and activities. To date, our sources can be classified as development revenue, product revenue, or contract revenue. | ||||||||||||
Development revenue | |||||||||||||
We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following: | |||||||||||||
the nature of our obligation under the agreement, | |||||||||||||
whether provisions leading to variable revenues exist, | |||||||||||||
whether any payments are refundable, | |||||||||||||
whether the deliverables should be treated as one unit of accounting or separated into multiple units, | |||||||||||||
whether substantive milestones exist, | |||||||||||||
whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and | |||||||||||||
whether a licensing agreement exists. | |||||||||||||
We recognize development revenue as work progresses on an agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement. Amendments to the estimated costs are recognized in the period in which the facts become known. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense. | |||||||||||||
Product revenue | |||||||||||||
Product revenue is recognized when there is sufficient evidence of an arrangement, delivery has occurred, the fee is fixed or determinable, and collection is reasonably assured. Product revenue is recognized either upon expiration of the contractual acceptance period after which there are no rights of return, or net of estimated returns and allowances. Provisions are made for warranties at the time revenue is recognized. | |||||||||||||
Contract revenue | |||||||||||||
We recognize contract revenue on the sale of prototype units and evaluation kits upon acceptance of the deliverables by the customer or expiration of the contractual acceptance period, after which there are no rights of return. | |||||||||||||
We recognize contract revenue on long-term, cost plus fixed fee, and fixed price contracts using the percentage-of-completion method. Under the percentage-of-completion method, revenue is recognized as work progresses on the contract. Our analysis of these contracts also contemplates whether contracts should be combined or segmented. We combine closely related contracts when all the applicable criteria under GAAP are met. The combination of two or more contracts requires judgment in determining whether the intent of entering into the contracts was effectively to enter into a single project, which should be combined to reflect an overall profit rate. Similarly, we may segment a project, which may consist of a single contract or group of contracts, with varying rates of profitability, only if the applicable criteria under GAAP are met. Judgment also is involved in determining whether a single contract or group of contracts may be segmented based on how the arrangement was negotiated and the performance criteria. The decision to combine a group of contracts or segment a contract could change the amount of revenue and gross profit recorded in a given period. The percentage-of-completion method relies on estimates of total expected contract revenue and costs. We have developed processes that allow us to make prudent estimates of the cost to complete a contract. When work begins on a contract, and at the end of each accounting period, we estimate the labor, material and other costs required to complete the contract using data provided by our technical team, project managers, vendors, outside consultants and others and compare these to costs incurred to date. Recognized revenues are subject to amendments for actual costs incurred. Amendments to revenue estimates are recognized in the period in which the facts become known. Historically, we have made only immaterial amendments to estimates to complete the contract at each reporting period. In the future, amendments to estimates could significantly impact recognized revenue in any one reporting period. If we are unable to estimate costs on a contract, revenue is recognized using the completed-contract method. Under the completed-contract method, revenue and contract costs are deferred and both are recognized when all deliverables are completed. | |||||||||||||
We establish an allowance for estimated losses if the estimated cost to complete a contract exceeds the remaining contract value. The entire estimated loss is recognized in the period in which the loss becomes known. We determine the estimated cost to complete a contract through a detailed review of the work to be completed, the resources available to complete the work and the technical difficulty of the remaining work. If amendments to estimated costs to complete the contract are higher than the total contract revenue, the entire contract loss will be recognized. The actual cost to complete a contract can vary significantly from the estimated cost, due to a variety of factors including availability of technical staff, availability of materials and technical difficulties that arise during the course of a project. | |||||||||||||
Cost of revenue | Cost of product revenue includes the direct and allocated indirect costs of manufacturing products sold to customers. Direct costs include labor, materials and other costs incurred directly in the manufacture of these products. Indirect costs include labor and other costs associated with operating our manufacturing capabilities and capacity. | ||||||||||||
Cost of contract revenue includes both the direct and allocated indirect costs of performing on development contracts and producing prototype units and evaluation kits. Direct costs include labor, materials and other costs incurred directly in performing on a contract or producing prototype units and evaluation kits. Indirect costs include labor and other costs associated with operating our research and development department and building our technical capabilities and capacity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. | |||||||||||||
Our overhead, which includes the costs of procuring, inspecting and storing material, and facility and depreciation costs, is allocated to inventory, cost of product revenue, cost of contract revenue, and research and development expense based on the level of effort supporting production or research and development activity. | |||||||||||||
Concentration of credit risk and sales to major customers | Concentration of Credit Risk | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of December 31, 2014, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. | |||||||||||||
Concentration of Sales to Major Customers | |||||||||||||
During 2014, two commercial customers accounted for 65% of our total revenue and one commercial customer accounted for 80% of our accounts receivable balance at December 31, 2014. During 2013, two commercial customers accounted for 86% of our total revenue. | |||||||||||||
Income taxes | Deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable for the period increased or decreased by the change in deferred tax assets and liabilities during the period. | ||||||||||||
Certain net operating losses arise from the deductibility for tax purposes of compensation under nonqualified stock options equal to the difference between the fair value of the stock on the date of exercise and the exercise price of the options. For financial reporting purposes, the tax effect of this deduction when recognized is accounted for as a credit to shareholders' equity. | |||||||||||||
Net loss per share | Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the periods. Net loss per share assuming dilution is calculated using the weighted-average number of common shares outstanding and the dilutive effect of all potentially dilutive securities, including common stock equivalents and convertible securities. Net loss per share assuming dilution is equal to basic net loss per share because the effect of dilutive securities outstanding during the periods including options and warrants computed using the treasury stock method, is anti-dilutive. | ||||||||||||
Research and development | Research and development expenses consist of costs incurred for internally funded research and product development activities as well as collaborative research and development activities that are funded by customers. These costs include compensation related costs of employees, share-based compensation, materials, subcontracted services, facility costs, and depreciation of facilities and lab equipment. Research and development costs are expensed as incurred. | ||||||||||||
Share-based compensation | We issue share-based compensation to employees in the form of options exercisable into our common stock and restricted or unrestricted shares of our common stock. We account for equity instruments issued to employees using the straight-line attribution method of allocating the fair value of share-based compensation expense over the requisite service period of the related award. The value of restricted or unrestricted shares is determined using the fair value method, which is based on the number of shares granted and the closing price of our common stock on the NASDAQ Global Market on the date of grant. The value of options is determined using the Black-Scholes option pricing model with estimates of option lives, stock price volatility and interest rates, then expensed over the periods of service allowing for pre-vest forfeitures. Changes in the estimated inputs or using other option valuation methods could result in materially different option values and share-based compensation expense. | ||||||||||||
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 valuation of and accounting for share-based awards includes a number of complex and subjective estimates. These estimates include, but are not limited to, the future volatility of our stock price, future stock option exercise behaviors, estimated employee turnover and award forfeiture rates. | |||||||||||||
Reclassifications | Certain reclassifications have been made to prior year financial statements to conform to classifications used in the current year. These reclassifications had no impact on net loss, shareholders' equity or cash flows as previously reported. | ||||||||||||
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 | |||||||||||||
Adverse purchase commitments | We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments when required if such commitments are in excess of our product needs or the costs are not expected to be recoverable. | ||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Fair Value) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary Of Significant Accounting Policies Fair Value Tables | |||||||||||||
Fair Value Measurement (Tables) | The valuation inputs hierarchy classification for the warrant liability measured at fair value on a recurring basis is summarized below as of December 31, 2013. | ||||||||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | |||||||||
Liabilities | |||||||||||||
Warrant liability | $ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | |||||
$ | - | $ | 4,902,000 | $ | - | $ | 4,902,000 | ||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Net Loss Per Share) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary Of Significant Accounting Policies Net Loss Per Share Tables | |||||||
Excluded Securities from Net Loss Per Share | As of December 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. The shares shown represent the number of shares of common stock which would be issued upon conversion in the respective years. | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
Options and private warrants | 8,953,000 | 9,996,000 | |||||
Nonvested equity shares | 60,000 | 108,000 | |||||
9,013,000 | 10,104,000 | ||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Share-Based Compensation) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Summary Of Significant Accounting Policies Share-based Compensation Tables | |||||||
Stock-based employee compensation expense | The following table shows the amount of share-based compensation expense included in the statements of operations for each period shown: | ||||||
Year Ended December 31, | |||||||
2014 | 2013 | ||||||
Cost of product revenue | $ | - | $ | 1,000 | |||
Cost of contract revenue | 28,000 | 19,000 | |||||
Research and development expense | 34,000 | 466,000 | |||||
Sales, marketing, general and administrative expense | 651,000 | 1,120,000 | |||||
$ | 713,000 | $ | 1,606,000 | ||||
Longterm_Contracts_Tables
Long-term Contracts (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Long-term Contracts Tables | ||||||||||
Long-term Contracts (Tables) | The following table summarizes the costs incurred on our collaborative research and development agreements and revenue contracts (in thousands): | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Costs and estimated earnings incurred on uncompleted contracts | $ | 314 | $ | 2,909 | ||||||
Billings on uncompleted contracts | -544 | -3,589 | ||||||||
$ | -230 | $ | -680 | |||||||
Included in accompanying consolidated balance sheets under the following captions: | ||||||||||
Billings on uncompleted contracts in excess of | ||||||||||
related costs | $ | -230 | $ | -680 | ||||||
$ | -230 | $ | -680 | |||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Inventory Tables | ||||||||||
Inventory (Tables) | Inventory consists of the following: | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Raw materials | $ | 42,000 | $ | 23,000 | ||||||
Finished goods | 74,000 | 26,000 | ||||||||
$ | 116,000 | $ | 49,000 | |||||||
Accrued_liabilities_Tables
Accrued liabilities (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Accrued Liabilities Tables | ||||||||||
Accrued liabilities (Tables) | Accrued liabilities consist of the following: | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Bonuses | $ | 889,000 | $ | 725,000 | ||||||
Payroll and payroll taxes | 322,000 | 375,000 | ||||||||
Compensated absences | 336,000 | 315,000 | ||||||||
Deferred rent credit | 134,000 | 99,000 | ||||||||
Warranty | 35,000 | 32,000 | ||||||||
Adverse purchase commitments | 500,000 | 500,000 | ||||||||
Professional fees | 78,000 | 76,000 | ||||||||
Other | 435,000 | 348,000 | ||||||||
$ | 2,729,000 | $ | 2,470,000 | |||||||
Property_and_equipment_net_Tab
Property and equipment, net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property And Equipment Net Tables | ||||||||||
Components of Property, Plant and Equipment | Property and equipment consists of the following: | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Production equipment | $ | 3,078,000 | $ | 2,943,000 | ||||||
Leasehold improvements | 494,000 | 502,000 | ||||||||
Computer hardware and software/lab equipment | 4,486,000 | 4,373,000 | ||||||||
Office furniture and equipment | 1,087,000 | 1,100,000 | ||||||||
9,145,000 | 8,918,000 | |||||||||
Less: Accumulated depreciation | -8,251,000 | -7,853,000 | ||||||||
$ | 894,000 | $ | 1,065,000 | |||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Intangible Assets Tables | |||||||
Estimated future amortization expense of intangible assets | The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2014: | ||||||
Year ended December 31, | Amount | ||||||
2015 | $ | 128,000 | |||||
2016 | 127,000 | ||||||
2017 | 116,000 | ||||||
2018 | 115,000 | ||||||
2019 | 115,000 | ||||||
Thereafter | 372,000 | ||||||
Total | $ | 973,000 | |||||
Warrants_Tables
Warrants (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Warrants Tables | ||||||||||||||||
Warrant activity and summary | The following summarizes activity with respect to MicroVision common stock warrants during the two years ended December 31, 2014: | |||||||||||||||
Warrants to | Weighted | |||||||||||||||
purchase | average | |||||||||||||||
common | exercise | |||||||||||||||
shares | price | |||||||||||||||
Outstanding at December 31, 2012 | 5,131,000 | $ | 7.28 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | 2,216,000 | 2.71 | ||||||||||||||
Exercise price greater than intrinsic value | 1,855,000 | 2.44 | ||||||||||||||
Exercised | -358,000 | 1.77 | ||||||||||||||
Canceled/expired | -753,000 | 28.80 | ||||||||||||||
Outstanding at December 31, 2013 | 8,091,000 | $ | 3.07 | |||||||||||||
Granted: | ||||||||||||||||
Exercise price less than intrinsic value | - | - | ||||||||||||||
Exercise price greater than intrinsic value | 2,148,000 | 2.47 | ||||||||||||||
Exercised | -3,713,000 | 2.67 | ||||||||||||||
Canceled/expired | - | - | ||||||||||||||
Outstanding at December 31, 2014 | 6,526,000 | $ | 3.08 | |||||||||||||
Exercisable at December 31, 2014 | 6,526,000 | $ | 3.08 | |||||||||||||
The following table summarizes information about our common stock warrants outstanding and exercisable at December 31, 2014: | ||||||||||||||||
Warrants outstanding | Warrants exercisable | |||||||||||||||
Weighted | ||||||||||||||||
Number | average | Weighted | Number | Weighted | ||||||||||||
outstanding at | remaining | average | exercisable at | average | ||||||||||||
December 31, | contractual | exercise | December 31, | exercise | ||||||||||||
Range of exercise prices | 2014 | life (years) | price | 2014 | price | |||||||||||
$2.13 | 1,000,000 | 0.39 | $ | 2.13 | 1,000,000 | $ | 2.13 | |||||||||
$2.24 | 2,100,000 | 2.47 | 2.24 | 2,100,000 | 2.24 | |||||||||||
$2.47 | 2,148,000 | 4.21 | 2.47 | 2,148,000 | 2.47 | |||||||||||
$6.24 | 1,278,000 | 1.88 | 6.24 | 1,278,000 | 6.24 | |||||||||||
$2.13-$6.24 | 6,526,000 | 6,526,000 | ||||||||||||||
Sharebased_compensation_Tables
Share-based compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary Of Significant Accounting Policies Share-based Compensation Tables | |||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the weighted-average valuation assumptions and weighted-average grant date fair value of options granted during the periods shown below: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assumptions (weighted average) | |||||||||||||
Volatility | 100% | 96% | |||||||||||
Expected term (in years) | 4.0 | 4.1 | |||||||||||
Risk-free rate | 1.30% | 1.00% | |||||||||||
Expected dividends | 0.00% | 0.00% | |||||||||||
Pre-vest forfeiture rate | 8.50% | 8.50% | |||||||||||
Grant date fair value of options granted | $ | 1.22 | $ | 1.49 | |||||||||
Options activity and positions | The following table summarizes activity and positions with respect to options for the two years ended December 31, 2014: | ||||||||||||
Weighted | |||||||||||||
Average | |||||||||||||
Weighted | Remaining | ||||||||||||
Average | Contractual | Aggregate | |||||||||||
Exercise | Term | Intrinsic | |||||||||||
Options | Shares | Price | (years) | Value | |||||||||
Outstanding as of December 31, 2012 | 1,318,000 | $ | 13.71 | 6.8 | $ | - | |||||||
Granted | 824,000 | 2.22 | - | - | |||||||||
Exercised | -23,000 | 1.80 | - | - | |||||||||
Forfeited or expired | -214,000 | 13.86 | - | - | |||||||||
Outstanding as of December 31, 2013 | 1,905,000 | 8.86 | 7.4 | 1,500 | |||||||||
Granted | 717,000 | 1.78 | - | - | |||||||||
Exercised | - | - | - | - | |||||||||
Forfeited or expired | -195,000 | 9.49 | - | - | |||||||||
Outstanding as of December 31, 2014 | 2,427,000 | $ | 6.72 | 7.4 | $ | 18,700 | |||||||
Vested and expected to vest as of December 31, 2014 | 2,293,000 | $ | 7.00 | 7.3 | $ | 18,100 | |||||||
Exercisable as of December 31, 2014 | 1,263,000 | $ | 11.06 | 5.9 | $ | 14,100 | |||||||
Commitments_and_contingencies_
Commitments and contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Commitments And Contingencies Tables | |||||||
Future minimum annual capital and operating lease payments | Future minimum rental commitments under operating leases for years ending December 31 are as follows: | ||||||
Operating | |||||||
leases | |||||||
2015 | $ | 430,000 | |||||
2016 | 442,000 | ||||||
2017 | 439,000 | ||||||
2018 | 446,000 | ||||||
2019 | 38,000 | ||||||
Thereafter | - | ||||||
Total minimum lease payments | $ | 1,795,000 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Income Taxes Tables | |||||||
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | Deferred tax assets are summarized as follows: | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
Deferred tax assets, current | |||||||
Reserves | $ | 2,526,000 | $ | 2,994,000 | |||
Other | 617,000 | 621,000 | |||||
Total gross deferred tax assets, current | 3,143,000 | 3,615,000 | |||||
Deferred tax assets, noncurrent | |||||||
Net operating loss carryforwards | 116,520,000 | 111,339,000 | |||||
R&D credit carryforwards | 6,520,000 | 6,277,000 | |||||
Depreciation/amortization deferred | 22,642,000 | 24,526,000 | |||||
Other | 7,846,000 | 7,544,000 | |||||
Total gross deferred tax assets, noncurrent | 153,528,000 | 149,686,000 | |||||
Net deferred taxes before valuation allowance | 156,671,000 | 153,301,000 | |||||
Less: Valuation allowance | -156,671,000 | -153,301,000 | |||||
Deferred tax assets | $ | - | $ | - | |||
Quarterly_financial_informatio
Quarterly financial information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Quarterly Financial Information Tables | |||||||||||||
Selected Quarterly Financial Data (Unaudited) (Tables) | The following table presents our unaudited quarterly financial information for the years ending December 31, 2014 and 2013 (in thousands, except per share data): | ||||||||||||
Fiscal Year 2014 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 687 | $ | 968 | $ | 611 | $ | 1,219 | |||||
Gross margin | 178 | 600 | 443 | 1,220 | |||||||||
Net loss | -3,346 | -3,355 | -3,401 | -8,018 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.08 | -0.08 | -0.23 | |||||||||
Fiscal Year 2013 | |||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||
Revenue | $ | 1,217 | $ | 964 | $ | 1,870 | $ | 1,801 | |||||
Gross margin | 1,164 | 880 | 1,007 | 1,000 | |||||||||
Net loss | -2,421 | -3,667 | -3,436 | -3,654 | |||||||||
Net loss per share basic and diluted | -0.08 | -0.13 | -0.13 | -0.14 | |||||||||
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Fair Value of Financial Instruments) (Details) (USD $) | Dec. 31, 2013 |
Liabilities | |
Warrant liability | $4,902,000 |
Total | 4,902,000 |
(Level 1) | |
Liabilities | |
Warrant liability | 0 |
Total | 0 |
(Level 2) | |
Liabilities | |
Warrant liability | 4,902,000 |
Total | 4,902,000 |
(Level 3) | |
Liabilities | |
Warrant liability | 0 |
Total | $0 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Property and Equipment Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Property and Equipment, Useful Life | P2Y |
Maximum | |
Property and Equipment, Useful Life | P5Y |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Concentration of Sales to Major Customers Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Customer Revenue Concentration | ||
Concentration Risk, Percentage | 65.00% | 86.00% |
Accounts Receivable Concentration | ||
Concentration Risk, Percentage | 80.00% |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Net Loss Per Share) (Convertible Securities and Options Excluded) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Anti-dilutive shares | 9,013,000 | 10,104,000 |
Options and Private Warrants Exercisable | ||
Anti-dilutive shares | 8,953,000 | 9,996,000 |
Nonvested Equity Shares | ||
Anti-dilutive shares | 60,000 | 108,000 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based employee compensation expense | $713,000 | $1,606,000 |
Cost of product revenue | ||
Share-based employee compensation expense | 0 | 1,000 |
Cost of contract revenue | ||
Share-based employee compensation expense | 28,000 | 19,000 |
Research and development expense | ||
Share-based employee compensation expense | 34,000 | 466,000 |
Sales, marketing, general and administrative expense | ||
Share-based employee compensation expense | $651,000 | $1,120,000 |
Longterm_contracts_Costs_Incur
Long-term contracts (Costs Incurred on Contracts) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Contracts Costs Incurred On Contracts Details | ||
Costs and estimated earnings incurred on uncompleted contracts | $314 | $2,909 |
Billings on uncompleted contracts | -544 | -3,589 |
Net of costs and billings on uncompleted contracts | -230 | -680 |
Billings on uncompleted contracts in excess of related costs | -230 | -680 |
Net of costs and billings on uncompleted contracts | ($230) | ($680) |
Inventory_Components_Details
Inventory Components (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Components Details | ||
Raw materials | $42,000 | $23,000 |
Finished goods | 74,000 | 26,000 |
Inventory, net | $116,000 | $49,000 |
Inventory_Narrative_Details
Inventory (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Inventory Narrative Details | ||
Inventory write-downs | $42,000 | $303,000 |
Inventory allowance | $6,927,000 | $7,964,000 |
Accrued_liabilities_components
Accrued liabilities components (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Liabilities Components Details | ||
Bonuses | $889,000 | $725,000 |
Payroll and payroll taxes | 322,000 | 375,000 |
Compensated absences | 336,000 | 315,000 |
Deferred rent credit | 134,000 | 99,000 |
Warranty | 35,000 | 32,000 |
Adverse purchase commitments | 500,000 | 500,000 |
Professional fees | 78,000 | 76,000 |
Other | 435,000 | 348,000 |
Accrued liabilities | $2,729,000 | $2,470,000 |
Property_and_equipment_Details
Property and equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property And Equipment Details | ||
Production equipment | $3,078,000 | $2,943,000 |
Leasehold improvements | 494,000 | 502,000 |
Computer hardware and software/lab equipment | 4,486,000 | 4,373,000 |
Office furniture and equipment | 1,087,000 | 1,100,000 |
Property and equipment, gross | 9,145,000 | 8,918,000 |
Less: Accumulated depreciation | -8,251,000 | -7,853,000 |
Property and equipment, net | $894,000 | $1,065,000 |
Property_and_equipment_Narrati
Property and equipment (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property And Equipment Narrative Details | ||
Depreciation expense | $414,000 | $923,000 |
Property and equipment under capital lease | 704,000 | 704,000 |
Accumulated depreciation related to assets under capital lease | $704,000 | $704,000 |
Intangible_assets_Future_Amort
Intangible assets (Future Amortization) (Details) (USD $) | Dec. 31, 2014 |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2015 | $128,000 |
2016 | 127,000 |
2017 | 116,000 |
2018 | 115,000 |
2019 | 115,000 |
Thereafter | 372,000 |
Total | $973,000 |
Intangible_Assets_Useful_Life_
Intangible Assets (Useful Life Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Finite-Lived Intangible Asset, Useful Life | 1 year |
Maximum | |
Finite-Lived Intangible Asset, Useful Life | 17 years |
Intangible_assets_Narrative_De
Intangible assets (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Intangible Assets Narrative Details | ||
Gross value of intangible assets | $1,600,000 | $1,600,000 |
Amortization expense | 132,000 | 158,000 |
Impairment of intangible assets | $40,000 | $277,000 |
Number of patents abandoned in prosecution | 5 | 42 |
Common_Stock_Narrative_Details
Common Stock (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2014 | Mar. 31, 2014 | Feb. 28, 2014 | Sep. 30, 2013 | 31-May-13 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock 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 | $16,114,000 | $4,262,000 | |
Stock issuance costs | $158,000 | $1,000,000 | $452,000 | $362,000 | ||||
Common shares underlying warrants | 2,100,000 | 6,526,000 | 8,091,000 | 5,131,000 | ||||
Warrant exercise price, per share | $2.47 | $3.08 | $3.07 | $7.28 | ||||
Date from which warrants are exercisable | 30-Sep-14 | |||||||
Warrant term, in years | 5 years | |||||||
Terms and provisions | In June 2014, we entered into an At-the-Market (ATM) equity 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 December 31, 2014 we have received proceeds of approximately $3.5 million before issuance costs of approximately $175,000 from the sale of 1.7 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. Details of the warrants are described below in Note 9. | 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. 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. Details of the warrants are described below in Note 9. | 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. Details of the warrants are described below in Note 9. | 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. Details of the warrants are described below in Note 9. | |||
Warrants_Summary_of_Warrant_Ac
Warrants (Summary of Warrant Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | |
Warrants Summary Of Warrant Activity Details | |||
Warrants, Outstanding as of beginning of period | 8,091,000 | 5,131,000 | 2,100,000 |
Granted with exercise price less than intrinsic value | 0 | 2,216,000 | |
Granted with exercise price greater than intrinsic value | 2,148,000 | 1,855,000 | |
Exercised | -3,713,000 | -358,000 | |
Canceled/expired | 0 | -753,000 | |
Warrants, Outstanding as of end of period | 6,526,000 | 8,091,000 | 2,100,000 |
Warrants, Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $3.07 | $7.28 | $2.47 |
Warrants, Weighted-Average Exercise Prices, Granted less than intrinsic value | $0 | $2.71 | |
Warrants, Weighted-Average Exercise Prices, Granted greater than intrinsic value | $2.44 | $2.44 | |
Warrants, Weighted-Average Exercise Prices, Exercised | 2.67 | 1.77 | |
Warrants, Weighted-Average Exercise Prices, cancelled or expired | $0 | $28.80 | |
Warrants, Weighted-Average Exercise Prices, Outstanding as of end of period | $3.08 | $3.07 | $2.47 |
Warrants, Exercisable at end of period | 6,526,000 | ||
Warrants, Weighted-Average Exercise Price, Exercisable | $3.08 |
Warrants_Outstanding_and_Exerc
Warrants Outstanding and Exercisable (Details) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Warrant, exercise price | $3.08 | $2.47 | $3.07 | $7.28 |
Warrants, Outstanding as of end of period | 6,526,000 | 2,100,000 | 8,091,000 | 5,131,000 |
Warrants, Exercisable at end of period | 6,526,000 | |||
Warrants exercisable, weighted average exercise price | $3.08 | |||
2.13 | ||||
Warrant, exercise price | $2.13 | |||
Warrants, Outstanding as of end of period | 1,000,000 | |||
Warrants outstanding, weighted average remaining contractual life, years | $0.39 | |||
Warrants outstanding, weighted average exercise price | $2.13 | |||
Warrants, Exercisable at end of period | 1,000,000 | |||
Warrants exercisable, weighted average exercise price | $2.13 | |||
2.24 | ||||
Warrant, exercise price | $2.24 | |||
Warrants, Outstanding as of end of period | 2,100,000 | |||
Warrants outstanding, weighted average remaining contractual life, years | $2.47 | |||
Warrants outstanding, weighted average exercise price | $2.24 | |||
Warrants, Exercisable at end of period | 2,100,000 | |||
Warrants exercisable, weighted average exercise price | $2.24 | |||
2.47 | ||||
Warrant, exercise price | $2.47 | |||
Warrants, Outstanding as of end of period | 2,148,000 | |||
Warrants outstanding, weighted average remaining contractual life, years | $4.21 | |||
Warrants outstanding, weighted average exercise price | $2.47 | |||
Warrants, Exercisable at end of period | 2,148,000 | |||
Warrants exercisable, weighted average exercise price | $2.47 | |||
6.24 | ||||
Warrant, exercise price | $6.24 | |||
Warrants, Outstanding as of end of period | 1,278,000 | |||
Warrants outstanding, weighted average remaining contractual life, years | $1.88 | |||
Warrants outstanding, weighted average exercise price | $6.24 | |||
Warrants, Exercisable at end of period | 1,278,000 | |||
Warrants exercisable, weighted average exercise price | $6.24 |
Warrants_Narrative_Details
Warrants (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Warrants Narrative Details | |||||
Common shares underlying warrants | 2,100,000 | 6,526,000 | 8,091,000 | 5,131,000 | |
Warrant exercise price, per share | $2.47 | $3.08 | $3.07 | $7.28 | |
Warrant term, in years | 5 years | ||||
Loss on warrant exchange | $5,000 | ($4,967) | $1,900 | ||
Warrant Transactions Connected with Contingently Convertible Securities | 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 3,713,309 shares of our common stock under the conditional exchange provision of the warrants. We did not receive additional cash consideration in the exchange transaction. We recorded a loss of $5.0 million during the year ended December 31, 2014 on the exchange, as the fair market value of the common stock issued was greater than the obligation recorded due to the increase in stock price from December 31, 2013 to the date the warrants were exchanged. | |||
Warrants_Fair_Value_Assumption
Warrants Fair Value Assumptions (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions (weighted average) | ||
Volatility | 100.00% | 96.00% |
Risk-free rate | 1.30% | 1.00% |
Expected dividends | $0 | $0 |
All Warrants | ||
Assumptions (weighted average) | ||
Volatility | 100.00% | |
Expected term (in years) | 5 years | |
Risk-free rate | 1.60% | |
Expected dividends | $0 |
Sharebased_compensation_Weight
Share-based compensation (Weighted Average Assumptions) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Y | Y | |
Assumptions (weighted average) | ||
Volatility | 100.00% | 96.00% |
Expected term (in years) | 4 | 4.1 |
Risk-free rate | 1.30% | 1.00% |
Expected dividends | $0 | $0 |
Pre-vest forfeiture rate | 8.50% | 8.50% |
Grant date fair value of options granted | $1.22 | $1.49 |
Sharebased_compensation_Schedu
Share-based compensation (Schedule Of Stock Option Activity) (Details) (MVIS, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MVIS | |||
Options, Outstanding as of beginning of period | 1,905,000 | 1,318,000 | |
Options, Granted | 717,000 | 824,000 | |
Options, Exercised | -16,000 | -23,000 | |
Options, Forfeited, cancelled or expired | -301,000 | -214,000 | |
Options, Outstanding as of end of period | 2,427,000 | 1,905,000 | |
Weighted-Average Exercise Prices, Outstanding as of beginnig of period | $8.86 | $13.71 | |
Weighted-Average Exercise Prices, Granted | $1.78 | $2.22 | |
Weighted-Average Exercise Prices, Exercised | $0 | $1.80 | |
Weighted-Average Exercise Prices, Forfeited, cancelled or expired | $9.49 | $13.86 | |
Weighted-Average Exercise Prices, Outstanding as of end of period | $6.72 | $8.86 | |
Options Outstanding, Weighted-Average Remaining Contractual Term (in years) | 7 years 146 days | 7 years 146 days | |
Options, Outstanding, Aggregate Intrinsic Value | $18,700 | $1,500 | $0 |
Options, Vested and expected to vest at end of period | 2,293,000 | ||
Weighted-Average Exercise Price, Vested and expected to vest | $7 | ||
Weighted-Average Remaining Contractual Term (in years), Vested and expected to vest | 7 years 110 days | ||
Options, Vested and expected to vest, Aggregate Intrinsic Value | 18,100 | ||
Options, Exercisable at end of period | 1,263,000 | ||
Weighted-Average Exercise Price, Exercisable | $11.06 | ||
Weighted-Average Remaining Contractual Term (in years), Exercisable | 5 years 329 days | ||
Options, Exercisable, Aggregate Intrinsic Value | 14,100 | ||
Options, Exercises in Period, Intrinsic Value | 21,000 | ||
Grant date fair value of options vested | $3,300,000 | $1,700,000 |
ShareBased_Compensation_Narrat
Share-Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Employee Stock Options | |
Unrecognized compensation cost related to share-based compensation | $1,100,000 |
Weighted-average service period, years | 2 years 256 days |
Restricted Stock Rights | |
Unrecognized compensation cost related to share-based compensation | $43,000 |
Weighted-average service period, years | 0 years 180 days |
Recovered_Sheet2
Commitments and Contingencies (Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
Year ending December 31: | |
2015 | $430,000 |
2016 | 442,000 |
2017 | 439,000 |
2018 | 446,000 |
2019 | 38,000 |
Thereafter | 0 |
Total minimum lease payments | $1,795,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Lease Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies Lease Narrative Details | ||
Net rent expense | $542,000 | $636,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Adverse Purchase Commitments Narrative) (Details) (USD $) | Dec. 31, 2014 |
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 |
Income_taxes_Deferred_Tax_Asse
Income taxes (Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets, current | ||
Reserves | $2,526,000 | $2,994,000 |
Other | 617,000 | 621,000 |
Total gross deferred tax assets, current | 3,143,000 | 3,615,000 |
Deferred tax assets, noncurrent | ||
Net operating loss carryforwards | 116,520,000 | 111,339,000 |
R&D credit carryforwards | 6,520,000 | 6,277,000 |
Depreciation/amortization deferred | 22,642,000 | 24,526,000 |
Other | 7,846,000 | 7,544,000 |
Total gross deferred tax assets, noncurrent | 153,528,000 | 149,686,000 |
Net deferred taxes before valuation allowance | 156,671,000 | 153,301,000 |
Less: Valuation allowance | -156,671,000 | -153,301,000 |
Deferred tax assets | $0 | $0 |
Income_taxes_Narrative_Details
Income taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes Narrative Details | ||
Provision for income taxes | $0 | $0 |
Operating Loss Carryforwards | 341.5 | |
Operating loss carryforwards, expiration date | 31-Dec-18 | |
Annual limit on operating loss carryforwards | In certain circumstances, as specified in the Internal Revenue Code, a 50% or more ownership change by certain combinations of our stockholders during any three-year period would result in limitations on our ability to utilize our net operating loss carry-forwards. | |
Accrued penalties and interest | 0 | 0 |
Unrecognized tax benefits | $0 | $0 |
Tax years open for examination | 1998 | |
Operating loss carryforwards, expiration dates | The net operating loss carry-forwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2018 to 2034 if not previously utilized. | |
Income_taxes_Credit_Carryforwa
Income taxes (Credit Carryforwards Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Tax credit carryforwards, expiration dates | The net operating loss carry-forwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2018 to 2034 if not previously utilized. |
R&D Tax Credit | |
Tax Credit Carryforward, Description | Research and development credits available to offset future taxable income. |
Tax Credit Carryforward, Amount | 6.5 |
Tax Credit Carryforward, Expiration Date | 31-Dec-18 |
Tax credit carryforwards, expiration dates | The net operating loss carry-forwards and research and development credits available to offset future taxable income, if any, will expire in varying amounts from 2018 to 2034 if not previously utilized. |
Capital Loss Carryforward | |
Tax Credit Carryforward, Description | Capital loss carry-forwards that are scheduled to expire between 2015 and 2017. |
Tax Credit Carryforward, Amount | 1.2 |
Tax Credit Carryforward, Expiration Date | 31-Dec-15 |
Tax credit carryforwards, expiration dates | In addition to the tax benefits above, we have $1.2 million of capital loss carry-forwards that are scheduled to expire between 2015 and 2017. |
Retirement_savings_plan_Narrat
Retirement savings plan (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Retirement Savings Plan Narrative Details | ||
Contribution to 401 (k) plan | $0 | $0 |
Quarterly_financial_informatio1
Quarterly financial information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Quarterly Financial Information Details | ||||||||||
Revenue | $687 | $968 | $611 | $1,219 | $1,217 | $964 | $1,870 | $1,801 | $3,485 | $5,852 |
Gross margin | 178 | 600 | 443 | 1,220 | 1,164 | 880 | 1,007 | 1,000 | 2,441 | 4,051 |
Net loss | ($3,346) | ($3,355) | ($3,401) | ($8,018) | ($2,421) | ($3,667) | ($3,436) | ($3,654) | ($18,120) | ($13,178) |
Net loss per share - basic and diluted | ($0.08) | ($0.08) | ($0.08) | ($0.23) | ($0.08) | ($0.13) | ($0.13) | ($0.14) |
Subsequent_Event_Narrative_Det
Subsequent Event (Narrative) (Details) (USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Subsequent Event Narrative Details | |
Subsequent Event, Description | In March 2015, we signed a multi-year license agreement with a customer granting them a non-exclusive license to our PicoP display technology for use in display modules it manufactures and sells. As part of the agreement, we received an $8.0 million up-front license fee in March 2015. In addition to the initial up-front license fee, we will also receive royalties for display modules sold by our customer. |
In March 2015, we received orders from a customer totaling $14.5 million for components. We plan to begin shipment of components for these orders in the second half of 2015 and expect fulfillment to continue into 2016. | |
Deferred revenue | $8 |
Product orders received, amount | $14.50 |