MicroVision (MVIS) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	6 Months Ended
	Jun. 30, 2020	Jul. 31, 2020
Contract with Customer, Liability, Current, Change
Entity Registrant Name	Microvision, Inc.
Trading Symbol	MVIS
Entity Listing, Security Trading Currency	USD
Entity Listing, Par Value Per Share	$ 0.001
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Entity Central Index Key	0000065770
Entity File Number	001-34170
Entity Incorporation, State or Country Code	DE
Interactive Data Current	Yes
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		143,447,635
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 7,805	$ 5,837
Accounts receivable, net of allowances of $0 and $0, respectively	0	1,079
Inventory	0	192
Other current assets	301	729
Total current assets	8,106	7,837
Property and equipment, net	1,623	1,849
Operating lease right-of-use asset	1,132	1,308
Restricted cash	435	435
Intangible assets	192	221
Other assets	18	186
Total assets	11,506	11,836
Current liabilities
Accounts payable	1,498	1,871
Accrued liabilities	501	2,045
Deferred revenue	0	21
Contract liabilities	8,699	9,755
Other current liabilities	0	83
Current portion of long-term debt	694	0
Current portion of operating lease liability	666	656
Current portion of finance lease obligations	20	25
Total current liabilities	12,078	14,456
Long-term debt, net of current portion	880	0
Operating lease liability, net of current portion	1,069	1,348
Finance lease obligations, net of current portion	1	9
Total liabilities	14,028	15,813
Commitments and contingencies (Note 10)
Shareholders' equity (deficit)
Preferred stock, par value $0.001; 25,000 shares authorized; 0 and 0 shares issued and outstanding	0	0
Common stock, par value $0.001; 150,000 shares authorized; 143,433 and 125,803 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively	143	126
Additional paid-in capital	577,172	568,496
Accumulated deficit	(579,837)	(572,599)
Total shareholders' equity (deficit)	(2,522)	(3,977)
Total liabilities and shareholders' equity (deficit)	11,506	11,836
Reconciliation of cash, cash equivalents, and restricted cash balances
Cash and cash equivalents	7,805	5,837
Restricted cash	435	435
Cash, cash equivalents, and restricted cash	$ 8,240	$ 6,272

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets
Allowance for doubtful accounts receivable, current	$ 0	$ 0
Stockholders equity
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000	25,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	150,000	150,000
Common stock, shares issued	143,433	125,803
Common stock, shares outstanding	143,433	125,803

Condensed Statements of Operati

Condensed Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenues	$ 587	$ 1,240	$ 2,056	$ 3,091
Operating expenses:
Total cost of revenue	(1)	1,823	1,398	3,066
Gross profit	588	(583)	658	25
Research and development expense	1,607	5,945	5,290	11,918
Sales, marketing, general and administrative expense	1,280	2,455	3,051	5,154
Gain on disposal of fixed assets	0	0	(450)	0
Total operating expenses	2,887	8,400	7,891	17,072
Loss from operations	(2,299)	(8,983)	(7,233)	(17,047)
Other expense, net	(5)	(7)	(5)	(11)
Net loss	$ (2,304)	$ (8,990)	$ (7,238)	$ (17,058)
Net loss per share - basic and diluted	$ (0.02)	$ (0.08)	$ (0.05)	$ (0.16)
Weighted-average shares outstanding - basic and diluted	140,107,000	106,872,000	133,661,000	104,435,000
Product revenue
Revenue from Contract with Customer, Including Assessed Tax	$ 0	$ 0	$ 1,247	$ 199
Operating expenses:
Cost of Goods and Services Sold	(1)	1,025	1,394	1,313
License and royalty
Revenue from Contract with Customer, Including Assessed Tax	572	0	784	0
Contract
Revenue from Contract with Customer, Including Assessed Tax	15	1,240	25	2,892
Operating expenses:
Cost of Goods and Services Sold	$ 0	$ 798	$ 4	$ 1,753

Condensed Statements of Shareho

Condensed Statements of Shareholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Common stock	Additional paid-in capital	Accumulated deficit	Total
Beginning balances at Dec. 31, 2018	$ 100	$ 550,133	$ (546,116)	$ 4,117
Beginning balances, shares at Dec. 31, 2018	100,105
Share-based compensation expense	$ 0	619	0	619
Share-based compensation expense, shares	250
Sales of common stock	$ 10	7,582	0	7,592
Sales of common stock, shares	9,868
Net loss	$ 0	0	(17,058)	(17,058)
Ending balances at Jun. 30, 2019	$ 110	558,334	(563,171)	(4,730)
Ending balances, shares at Jun. 30, 2019	110,223
Beginning balances at Mar. 31, 2019	$ 102	551,650	(554,184)	(2,432)
Beginning balances, shares at Mar. 31, 2019	102,105
Share-based compensation expense	$ 0	269	0	269
Share-based compensation expense, shares	250
Sales of common stock	$ 8	6,415	0	6,423
Sales of common stock, shares	7,868
Net loss	$ 0	0	(8,990)	(8,990)
Ending balances at Jun. 30, 2019	$ 110	558,334	(563,171)	(4,730)
Ending balances, shares at Jun. 30, 2019	110,223
Beginning balances at Dec. 31, 2019	$ 126	568,496	(572,599)	(3,977)
Beginning balances, shares at Dec. 31, 2019	125,803
Share-based compensation expense	$ 0	344	0	344
Share-based compensation expense, shares	201
Exercise of options	$ 0	3	0	3
Exercise of options, shares	4
Sales of common stock	$ 17	8,329	0	8,346
Sales of common stock, shares	17,425
Net loss	$ 0	0	(7,238)	(7,238)
Ending balances at Jun. 30, 2020	$ 143	577,172	(579,837)	(2,522)
Ending balances, shares at Jun. 30, 2020	143,433
Beginning balances at Mar. 31, 2020	$ 131	570,128	(577,533)	(7,274)
Beginning balances, shares at Mar. 31, 2020	130,878
Share-based compensation expense	$ 0	187	0	187
Share-based compensation expense, shares	201
Exercise of options	$ 0	3	0	3
Exercise of options, shares	4
Sales of common stock	$ 12	6,854	0	6,866
Sales of common stock, shares	12,350
Net loss	$ 0	0	(2,304)	(2,304)
Ending balances at Jun. 30, 2020	$ 143	$ 577,172	$ (579,837)	$ (2,522)
Ending balances, shares at Jun. 30, 2020	143,433

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net loss	$ (7,238)	$ (17,058)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization	488	1,103
Gain on disposal of property and equipment	(450)	0
Share-based compensation expense	389	619
Non-cash interest expense	3	0
Inventory write-downs	168	852
Change in:
Accounts receivable, net	1,079	(2,048)
Costs and estimated earnings in excess of billings on uncompleted contracts	0	987
Inventory	24	203
Other current and non-current assets	551	336
Accounts payable	(355)	(412)
Accrued liabilities	(1,544)	(608)
Deferred revenue	(21)	0
Billings on uncompleted contracts in excess of related costs	0	101
Other currrent liabilities	(1,139)	(112)
Operating lease liabilities	(325)	(321)
Net cash used in operating activities	(8,370)	(16,358)
Cash flows from investing activities
Proceeds on sale of property and equipment	525	0
Purchases of property and equipment	(94)	(513)
Net cash provided by (used in) investing activities	431	(513)
Cash flows from financing activities
Principal payments under finance leases	(13)	(9)
Increase in long-term debt	1,571	0
Net proceeds from issuance of common stock	8,349	7,728
Net cash provided by financing activities	9,907	7,719
Change in cash and cash equivalents, and restricted cash	1,968	(9,152)
Cash, cash equivalents and restricted cash at beginning of period	6,272	14,201
Cash, cash equivalents and restricted cash at end of period	8,240	5,049
Supplemental schedule of non-cash investing and financing activities
Non-cash additions to property and equipment	19	15
Issuance of common stock for commitment fee	$ 0	$ 258

MANAGEMENT'S STATEMENT - Note 1

MANAGEMENT'S STATEMENT - Note 1	6 Months Ended
	Jun. 30, 2020
Management Disclosure
MANAGEMENT'S STATEMENT - Note 1	1. MANAGEMENT’S STATEMENT The Condensed Balance Sheets as of June 30, 2020, the Condensed Statements of Operations and the Condensed Statements of Shareholders' Equity (Deficit) for the three and six months ended June 30, 2020 and 2019, and the Condensed Statements of Cash Flows for the six months ended June 30, 2020 and 2019, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at June 30, 2020 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. In February 2020, we were informed by an original equipment manufacturer (OEM) that products using our interactive display module will not be launched in 2020 as we planned. Since we do not have orders from an OEM for 2020 delivery, we reduced our headcount by approximately 60% and focused our attention on strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, as well as licensing and other transactions. We have funded our operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At June 30, 2020, we had $7.8 million in cash and cash equivalents. Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the fourth quarter of 2020. We will require additional capital to fund our operating plan past that time. We plan to seek additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available to us or, if available, will be available on terms acceptable to us or on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include further reductions in our production capacities, research and development projects, staff, operating costs, and capital expenditures. Additionally, we need additional authorized shares of common stock if we are going to be able to raise any significant amount of cash through the sale of common stock. A Special Shareholder meeting is being called to authorize such share increase on October 8, 2020. A similar shareholder vote on May 19, 2020 to increase authorized shares of common stock required 65,088,815 votes, a majority of outstanding shares, to be approved. The proposal received a majority of votes cast (61,533,922 in favor of the proposal and 47,257,388 against or abstaining) and failed to pass by 3,554,893 of the 108,791,310 votes cast on the proposal. The Board of Directors recommends approval of the proposal to authorize additional shares of common stock. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) modules, the rate at which original equipment manufacturers (OEMs) or original design manufacturers (ODMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. Our unaudited financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern.

NET LOSS PER SHARE - Note 2

NET LOSS PER SHARE - Note 2	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share - Note 2	2. NET LOSS PER SHARE Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the period. 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 period, including options and warrants computed using the treasury stock method, is anti-dilutive. The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator: Net loss available for common shareholders - basic and diluted $ (2,304) $ (8,990) $ (7,238) $ (17,058) Denominator: Weighted-average common shares outstanding - basic and diluted 140,107 106,872 133,661 104,435 Net loss per share - basic and diluted $ (0.02) $ (0.08) $ (0.05) $ (0.16) For the three and six months ended June 30, 2020 and 2019, we excluded the following securities from net loss per share as the effect of including them would have been anti-dilutive: outstanding options exercisable into a total of 4,011,000 and 4,437,000 shares of common stock, respectively, and 1,981,000 and 1,247,000 nonvested restricted and performance stock units, respectively.

LONG-TERM CONTRACTS - Note 3

LONG-TERM CONTRACTS - Note 3	6 Months Ended
	Jun. 30, 2020
Notes To Financial Statements Abstract
Long-term contracts - Note 3	3. LONG-TERM CONTRACTS In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we earned on each component we had previously produced. Under the new arrangement, the royalties earned will be applied against the remaining $8.7 million prepayment that we had previously received from the customer until the prepayment is exhausted.

LONG-TERM DEBT - Note 4

LONG-TERM DEBT - Note 4	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
LONG-TERM DEBT - Note 4	4. LONG-TERM DEBT In April 2020, we received funds in the amount of $1,570,881 pursuant to a loan under the Paycheck Protection Program of the 2020 CARES Act ("PPP") administered by the Small Business Administration. The loan has an interest rate of 0.98% and a term of 24 months. No payments are due for the first 6 months, although interest accrues during that period. Thereafter, the loan is repayable in monthly installments over the next 18 months to retire the loan plus accrued interest. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs may be forgivable, all as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. We may prepay the loan at any time prior to maturity with no prepayment penalties.

REVENUE RECOGNITION - Note 5

REVENUE RECOGNITION - Note 5	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION - Note 5	5. REVENUE RECOGNITION The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time. Disaggregation of revenue The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Three Months Ended June 30, 2020 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 572 $ - $ 572 Product and services transferred over time - - 15 15 Total $ - $ 572 $ 15 $ 587 Six Months Ended June 30, 2020 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,247 $ 784 $ 4 $ 2,035 Product and services transferred over time - - 21 21 Total $ 1,247 $ 784 $ 25 $ 2,056 Three Months Ended June 30, 2019 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ - $ 36 $ 36 Product and services transferred over time - - 1,204 1,204 Total $ - $ - $ 1,240 $ 1,240 Six Months Ended June 30, 2019 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 199 $ - $ 52 $ 251 Product and services transferred over time - - 2,840 2,840 Total $ 199 $ - $ 2,892 $ 3,091 Contract balances The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): June 30, December 31, 2020 2019 Accounts receivable, net $ - $ 1,079 Accrued liabilities 159 432 Deferred revenue - 21 Contract liabilities 8,699 9,755 Under Topic 606, our rights to consideration are presented separately depending on whether those rights are conditional or unconditional. We present our unconditional rights to consideration as "accounts receivable" in our Balance Sheet. Contract liabilities in the table below are presented as contract liabilities, deferred revenue, and a portion of accrued liabilities on the balance sheet. Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): June 30, December 31, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (8,858) (10,208) 1,350 (13.2) Net contract assets (liabilities) $ (8,858) $ (10,208) $ 1,350 (13.2) During the three and six months ended June 30, 2020, we applied $572,000 and $1.1 million, respectively, against the contract liability with our April 2017 customer. During 2019, we reached an agreement with the distributor in our Ragentek contract on the final transaction price of the units shipped to them. As part of the agreement, we agreed to return $432,000 of the original transaction price to our distributor and the amount was included in accrued liabilities at December 31, 2019. During the three and six months ended June 30, 2020, payments totaling $41,000 and $273,000 were made to the distributor. Contract acquisition costs We are required to capitalize certain contract acquisition costs consisting primarily of commissions paid when contracts are signed. We currently do not pay any commissions upon the signing of a contract; therefore, no commission cost has been incurred as of June 30, 2020. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period. The $10.0 million upfront payment received from a major technology company was being recognized as revenue as component sales were transferred to the customer. Under the new arrangement reached in March 2020, the royalties we expect to earn will be applied against the remaining prepayment. We expect to apply an additional $1.1 million during the second half of 2020, and this amount is included in revenue below. Because there is uncertainty about the timing of the application of the remainder of the contract liability, it has been excluded from future estimated revenue in the table below. The $8.7 million contract liability is classified as a current liability on our balance sheet. It is likely that recognition of revenue may extend beyond the next twelve months. The following table provides information about the estimated timing of revenue recognition (in thousands): Remainder of 2020 2021 License and royalty revenue $ 1,051 $ -

CONCENTRATION OF CREDIT RISK AN

CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 6	6 Months Ended
	Jun. 30, 2020
Risks and Uncertainties [Abstract]
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS - Note 6	6. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS AND SUPPLIERS Concentration of credit risk Financial instruments that potentially subject us to a concentration of credit risk are primarily cash equivalents and accounts receivable. We typically do not require collateral from our customers. As of June 30, 2020, our cash and cash equivalents are comprised of short-term highly rated money market savings accounts. Concentration of major customers and suppliers For the three and six months ended June 30, 2020, one customer accounted for $587,000 and $2.1 million in revenue, representing 100% and 100% of our total revenue, respectively. For the three and six months ended June 30, 2019, one customer accounted for $1.2 million and $2.8 million in revenue, representing 97% and 92% of our total revenue, respectively. A significant concentration of our components and the products we sell are currently manufactured and obtained from single or limited-source suppliers. The loss of any single or limited-source supplier, the failure of any of these suppliers to perform as expected, or the disruption in the supply chain of components from these suppliers could subject us to risks and uncertainties including, but not limited to, increased cost of sales, possible loss of revenues, or significant delays in product deliveries, any of which could adversely affect our financial condition and operating results.

INVENTORY - Note 7

INVENTORY - Note 7	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure
Inventory - Note 7	7. INVENTORY Inventory consists of the following: June 30, December 31, ( in thousands 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192 Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. 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. As of December 31, 2019, $168,000 of materials that were not expected to be consumed during the next twelve months were classified as "other assets" on the balance sheet. During the six months ended June 30, 2020 and 2019, we recorded inventory write-downs of $168,000 and $852,000, respectively.

SHARE-BASED COMPENSATION - Note

SHARE-BASED COMPENSATION - Note 8	6 Months Ended
	Jun. 30, 2020
Disclosure Of Compensation Related Costs
Share-Based Compensation - Note 8	8. SHARE-BASED COMPENSATION We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense. The following table summarizes the amount of share-based compensation expense by line item on the statements of operations: Three Months Ended Six Months Ended June 30, June 30, ( in thousands 2020 2019 2020 2019 Cost of product revenue $ - $ - $ - $ 1 Research and development expense 103 76 142 199 Sales, marketing, general and administrative expense 97 192 247 419 $ 200 $ 268 $ 389 $ 619 Options activity and positions The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2020: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of June 30, 2020 4,011,000 $ 1.50 6.8 $ 1,070,000 Exercisable as of June 30, 2020 2,287,000 $ 1.98 5.4 $ 165,000 During the three months ended June 30, 2020, we issued 1.2 million shares of RSUs to non-executive employees for retention purposes. These shares were valued based on the closing price of our common stock on the date of grant. These shares vest on the earlier of a change of control of the Company or the one-year anniversary of the grant date. During the three months ended June 30, 2019 we issued 475,000 stock options and 195,000 PSUs to our executive officers. These PSUs have performance criteria that would require the Company's stock price to appreciate by more than 100% of the closing stock price on the grant date before they become earned. In the event that the performance criteria are satisfied, earned PSUs vest in equal annual installments on each of the first three anniversaries of May 22, 2019, subject to the recipient's continued employment on the applicable vesting date. In the event the performance criteria are satisfied after any such annual vesting date, the portion of any such earned PSUs that would have vested on any such earlier annual vesting date will immediately vest. As of June 30, 2020, our unrecognized share-based employee compensation related to stock options was $600,000 which we plan to amortize over the next 1.6 years, our unrecognized share-based compensation related to RSUs was $1.3 million which we plan to amortize over the next 0.9 years, and our unrecognized share-based compensation related to the PSUs was $8,000, which we plan to amortize over the next 1.4 years.

LEASES - Note 9

LEASES - Note 9	6 Months Ended
	Jun. 30, 2020
Notes To Financial Statements Abstract
LEASES - Note 9	9. LEASES In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. We adopted this guidance using the cumulative-effect adjustment method on January 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in Topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard did not have a material impact on our Statement of Operations or Statement of Cash flows. Accounting for our capital leases remains substantially unchanged. We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to three years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our ROU asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option. The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Operating lease expense $ 116 $ 116 $ 232 $ 232 Finance lease expense: Amortization of leased assets 6 4 12 8 Interest on lease liabilities 1 2 2 3 Total finance lease expense 7 6 14 11 Total lease expense $ 123 $ 122 $ 246 $ 243 Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 (in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 325 $ 321 Operating cash flows from finance leases 2 3 Financing cash flows from finance leases 13 9 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 Finance leases - - Supplemental balance sheet information related to leases was as follows: June 30, 2020 December 31, 2019 (in thousands) Operating leases Operating lease right-of-use assets $ 1,132 $ 1,308 Current portion of operating lease liability 666 656 Operating lease liability, net of current portion 1,069 1,348 Total operating lease liabilities $ 1,735 $ 2,004 Finance leases Property and equipment, at cost $ 66 $ 66 Accumulated depreciation (32) (25) Property and equipment, net $ 34 $ 41 Current portion of finance lease obligations $ 20 $ 25 Finance lease obligations, net of current portion 1 9 Total finance lease liabilities $ 21 $ 34 Weighted Average Remaining Lease Term Operating leases 3 years 3 years Finance leases 1 year 1 year Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 13.8% 13.8% As of June 30, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2020 $ 330 $ 13 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 1,877 22 Less: amount representing interest (142) (1) Present value of capital lease liabilities $ 1,735 $ 21

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Note10	6 Months Ended
	Jun. 30, 2020
Commitments And Contingencies Disclosure Footnote
Commitments and Contingencies - Note 10	10. COMMITMENTS AND CONTINGENCIES Litigation In March 2019, we filed a Notice of Arbitration in Hong Kong against Ragentek as a result of its failure to perform its obligations under a purchase order with us. The relief sought is $4.0 million dollars plus interest and arbitration costs. At this time we cannot predict the likelihood of a favorable outcome. We are 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 our financial position, results of operations or cash flows.

COMMON STOCK - Note 11

COMMON STOCK - Note 11	6 Months Ended
	Jun. 30, 2020
Common Stock - Note 11
COMMON STOCK - Note 11	11. COMMON STOCK In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we may sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of June 30, 2020, we have issued 19.3 million shares and raised a total of $9.3 million under this agreement. In April 2019, we raised $2.0 million before issuance costs of approximately $34,000 through a registered direct offering of 2.3 million shares of our common stock to a private investor. In April 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $11.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of $1.0 million in shares of common stock at a purchase price of $0.98 per share. In consideration for entering into the agreement, we issued 250,000 shares of our common stock, having a value of $258,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $92,000 in issuance costs. As of December 31, 2019, we had issued 15.7 million shares and raised a total of $11.0 million under this agreement. No further shares are available for sales under this agreement. In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor.

Significant Accounting Policies

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Notes To Financial Statements Abstract
Management's Statement	The Condensed Balance Sheets as of June 30, 2020, the Condensed Statements of Operations and the Condensed Statements of Shareholders' Equity (Deficit) for the three and six months ended June 30, 2020 and 2019, and the Condensed Statements of Cash Flows for the six months ended June 30, 2020 and 2019, have been prepared by MicroVision, Inc. ("we" or "our") and have not been audited. In the opinion of management, all adjustments necessary to state fairly the financial position at June 30, 2020 and the results of operations and cash flows for all periods presented have been made and consist of normal recurring adjustments. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules of the Securities and Exchange Commission (SEC). The year-end condensed balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America. You should read these condensed financial statements in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the operating results that may be attained for the entire fiscal year. We have incurred significant losses since inception. In February 2020, we were informed by an original equipment manufacturer (OEM) that products using our interactive display module will not be launched in 2020 as we planned. Since we do not have orders from an OEM for 2020 delivery, we reduced our headcount by approximately 60% and focused our attention on strategic alternatives, including a potential sale or merger of the Company, sale of part of the Company, strategic minority investment, as well as licensing and other transactions. We have funded our operations to date primarily through the sale of common stock, convertible preferred stock, warrants, the issuance of convertible debt and, to a lesser extent, from development contract revenues, product sales and licensing activities. At June 30, 2020, we had $7.8 million in cash and cash equivalents. Based on our current operating plan, we anticipate that we have sufficient cash and cash equivalents to fund our operations through the fourth quarter of 2020. We will require additional capital to fund our operating plan past that time. We plan to seek additional capital through the issuance of equity or debt securities, product sales and/or licensing activities. There can be no assurance that additional capital will be available to us or, if available, will be available on terms acceptable to us or on a timely basis. If adequate capital resources are not available on a timely basis, we intend to consider limiting our operations substantially. This limitation of operations could include further reductions in our production capacities, research and development projects, staff, operating costs, and capital expenditures. Additionally, we need additional authorized shares of common stock if we are going to be able to raise any significant amount of cash through the sale of common stock. A Special Shareholder meeting is being called to authorize such share increase on October 8, 2020. A similar shareholder vote on May 19, 2020 to increase authorized shares of common stock required 65,088,815 votes, a majority of outstanding shares, to be approved. The proposal received a majority of votes cast (61,533,922 in favor of the proposal and 47,257,388 against or abstaining) and failed to pass by 3,554,893 of the 108,791,310 votes cast on the proposal. The Board of Directors recommends approval of the proposal to authorize additional shares of common stock. We are introducing new technology and products into an emerging market which creates significant uncertainty about our ability to accurately project revenue, costs and cash flows. Our capital requirements will depend on many factors, including, but not limited to, the commercial success of our laser beam scanning (LBS) modules, the rate at which original equipment manufacturers (OEMs) or original design manufacturers (ODMs) introduce products incorporating our PicoP® scanning technology and the market acceptance and competitive position of such products. If revenues are less than we anticipate, if the mix of revenues and the associated margins vary from anticipated amounts or if expenses exceed the amounts budgeted, we may require additional capital earlier than expected to fund our operations. In addition, our operating plan provides for the development of strategic relationships with suppliers of components and systems and equipment manufacturers that may require additional investments by us. These factors raise substantial doubt regarding our ability to continue as a going concern. Our unaudited financial statements have been prepared assuming we will continue as a going concern and do not include any adjustments that might be necessary should we be unable to continue as a going concern.
Net Loss Per Share	Basic net loss per share is calculated using the weighted-average number of common shares outstanding during the period. 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 period, including options and warrants computed using the treasury stock method, is anti-dilutive.
Revenue recognition	The following is a description of principal activities from which we generate revenue. Revenues are recognized when control of the promised goods or services are transferred to our customers, in an amount that reflects the consideration that we expect to receive in exchange for those goods or services. We generate all of our revenue from contracts with customers. We evaluate contracts based on the 5-step model as stated in Topic 606 as follows: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price, and (v) recognize revenue when (or as) performance obligations are satisfied. A contract contains a promise (or promises) to transfer goods or services to a customer. A performance obligation is a promise (or a group of promises) that is distinct, as defined in the revenue standard. The transaction price is the amount of consideration an entity expects to be entitled to from a customer in exchange for providing the goods or services. A number of factors should be considered to determine the transaction price, including whether there is variable consideration, a significant financing component, noncash consideration, or amounts payable to the customer. The determination of variable consideration will require a significant amount of judgment. In estimating the transaction price we will use either the expected value method or the most likely amount method. The transaction price is allocated to the separate performance obligations in the contract based on relative standalone selling prices. Determining the relative standalone selling price can be challenging when goods or services are not sold on a standalone basis. The revenue standard sets out several methods that can be used to estimate a standalone selling price when one is not directly observable. Allocating discounts and variable consideration must also be considered. Allocating the transaction price can require significant judgement on our part. Revenue is recognized when (or as) the customer obtains control of the good or service/performance obligations are satisfied. Topic 606 provides guidance to help determine if a performance obligation is satisfied at a point in time or over time. Where a performance obligation is satisfied over time, the related revenue is also recognized over time.
Inventory	Inventory consists of raw materials and finished goods assemblies. Inventory is computed using the first-in, first-out (FIFO) method and is stated at the lower of cost and net realizable value. 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. As of December 31, 2019, $168,000 of materials that were not expected to be consumed during the next twelve months were classified as "other assets" on the balance sheet. During the six months ended June 30, 2020 and 2019, we recorded inventory write-downs of $168,000 and $852,000, respectively.
Share-based Compensation	We issue share-based compensation to employees in the form of stock options, restricted stock units (RSUs), and performance stock units (PSUs). We account for the share-based awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award, net of estimated forfeitures. The fair value of stock options is estimated on the grant date using the Black-Scholes option pricing model. The fair value of RSUs is determined by the closing price of our common stock on the grant date. The PSUs are valued using a binomial option pricing model using the following inputs: stock price, volatility, and risk-free interest rates. Changes in estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.
Leases	In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use (ROU) asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. We adopted this guidance using the cumulative-effect adjustment method on January 1, 2019, meaning we did not restate prior periods. Current year financial information is presented under the guidance in Topic 842, while prior year information will continue to be presented under Topic 840. Adoption of the standard resulted in the recognition of an operating ROU asset of approximately $1.6 million, a lease liability of approximately $2.5 million, and a reduction in other short-term and long-term liabilities of $873,000. Adoption of the standard did not have a material impact on our Statement of Operations or Statement of Cash flows. Accounting for our capital leases remains substantially unchanged. We lease our office space and certain equipment under finance and operating leases. Our leases have remaining lease terms of one to three years. Our office space lease contains an option to extend the lease for one period of five years. This extension period is not included in our ROU asset or lease liability amounts. Our office lease agreement includes both lease and non-lease components, which are accounted for separately. Our finance leases contain options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless we are reasonably certain to exercise the purchase option.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Contract with Customer, Asset, Net, Current, Percent Change
Net Loss Per Share (Tables)	The components of basic and diluted net loss per share were as follows (in thousands, except loss per share data): Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Numerator: Net loss available for common shareholders - basic and diluted $ (2,304) $ (8,990) $ (7,238) $ (17,058) Denominator: Weighted-average common shares outstanding - basic and diluted 140,107 106,872 133,661 104,435 Net loss per share - basic and diluted $ (0.02) $ (0.08) $ (0.05) $ (0.16)

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue Recognition
Schedule of disaggregation of revenues	The following table provides information about disaggregated revenue by timing of revenue recognition, (in thousands): Three Months Ended June 30, 2020 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ 572 $ - $ 572 Product and services transferred over time - - 15 15 Total $ - $ 572 $ 15 $ 587 Six Months Ended June 30, 2020 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 1,247 $ 784 $ 4 $ 2,035 Product and services transferred over time - - 21 21 Total $ 1,247 $ 784 $ 25 $ 2,056 Three Months Ended June 30, 2019 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ - $ - $ 36 $ 36 Product and services transferred over time - - 1,204 1,204 Total $ - $ - $ 1,240 $ 1,240 Six Months Ended June 30, 2019 Product License and Contract revenue revenue revenue Total Timing of revenue recognition: Products transferred at a point in time $ 199 $ - $ 52 $ 251 Product and services transferred over time - - 2,840 2,840 Total $ 199 $ - $ 2,892 $ 3,091
Costs in excess of billings and billings in excess of costs	The following table provides information about receivables, contract assets, and contract liabilities from contracts with customers (in thousands): June 30, December 31, 2020 2019 Accounts receivable, net $ - $ 1,079 Accrued liabilities 159 432 Deferred revenue - 21 Contract liabilities 8,699 9,755
Schedule of contract assets and liabilities	Significant changes in the contract assets and the contract liabilities balances during the period are as follows (in thousands, except percentages): June 30, December 31, 2020 2019 $ Change % Change Contract assets $ - $ - $ - - Contract liabilities (8,858) (10,208) 1,350 (13.2) Net contract assets (liabilities) $ (8,858) $ (10,208) $ 1,350 (13.2)
Transaction price allocated to the remaining performance obligations, expected timing	The following table provides information about the estimated timing of revenue recognition (in thousands): Remainder of 2020 2021 License and royalty revenue $ 1,051 $ -

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2020
Long-term Contracts Costs Incurred On Contracts Details
Inventory (Tables)	Inventory consists of the following: June 30, December 31, ( in thousands 2020 2019 Raw materials $ - $ - Finished goods - 192 $ - $ 192

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Canceled/expired
Stock-based employee compensation expense	The following table summarizes the amount of share-based compensation expense by line item on the statements of operations: Three Months Ended Six Months Ended June 30, June 30, ( in thousands 2020 2019 2020 2019 Cost of product revenue $ - $ - $ - $ 1 Research and development expense 103 76 142 199 Sales, marketing, general and administrative expense 97 192 247 419 $ 200 $ 268 $ 389 $ 619
Options activity and positions	The following table summarizes shares, weighted-average exercise price, weighted-average remaining contractual term and aggregate intrinsic value of options outstanding and options exercisable as of June 30, 2020: Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Shares Price Term (years) Value Outstanding as of June 30, 2020 4,011,000 $ 1.50 6.8 $ 1,070,000 Exercisable as of June 30, 2020 2,287,000 $ 1.98 5.4 $ 165,000

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Components of lease expense	The components of lease expense were as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Operating lease expense $ 116 $ 116 $ 232 $ 232 Finance lease expense: Amortization of leased assets 6 4 12 8 Interest on lease liabilities 1 2 2 3 Total finance lease expense 7 6 14 11 Total lease expense $ 123 $ 122 $ 246 $ 243
Cash flow supplemental disclosures for leases	Supplemental cash flow information related to leases was as follows: Six Months Ended June 30, 2020 2019 (in thousands) Cash paid for amounts included in measurement of lease liabilities: Operating cash flows from operating leases $ 325 $ 321 Operating cash flows from finance leases 2 3 Financing cash flows from finance leases 13 9 Right-of-use assets obtained in exchange for new lease obligations: Operating leases $ - $ 1,638 Finance leases - -
Supplemental balance sheet information related to leases	Supplemental balance sheet information related to leases was as follows: June 30, 2020 December 31, 2019 (in thousands) Operating leases Operating lease right-of-use assets $ 1,132 $ 1,308 Current portion of operating lease liability 666 656 Operating lease liability, net of current portion 1,069 1,348 Total operating lease liabilities $ 1,735 $ 2,004 Finance leases Property and equipment, at cost $ 66 $ 66 Accumulated depreciation (32) (25) Property and equipment, net $ 34 $ 41 Current portion of finance lease obligations $ 20 $ 25 Finance lease obligations, net of current portion 1 9 Total finance lease liabilities $ 21 $ 34 Weighted Average Remaining Lease Term Operating leases 3 years 3 years Finance leases 1 year 1 year Weighted Average Discount Rate Operating leases 6.0% 6.0% Finance leases 13.8% 13.8%
Schedule of future minimum lease payments	As of June 30, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2020 $ 330 $ 13 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 1,877 22 Less: amount representing interest (142) (1) Present value of capital lease liabilities $ 1,735 $ 21
Lease guarantee future commitments	As of June 30, 2020, maturities of lease liabilities were as follows: Operating Finance (in thousands) leases leases Years Ended December 31, 2020 $ 330 $ 13 2021 676 9 2022 696 - 2023 175 - Thereafter - - Total minimum lease payments 1,877 22 Less: amount representing interest (142) (1) Present value of capital lease liabilities $ 1,735 $ 21

Net Loss Per Share (Details)

Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net loss available for common shareholders	$ (2,304)	$ (8,990)	$ (7,238)	$ (17,058)
Dilutive incremental share effect from:
Weighted-average common shares outstanding	140,107,000	106,872,000	133,661,000	104,435,000
Net loss per share - basic and diluted	$ (0.02)	$ (0.08)	$ (0.05)	$ (0.16)

(Net Loss Per Share Convertible

(Net Loss Per Share Convertible Securities and Options Excluded (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Options Exercisable
Anti-dilutive shares	4,011,000	4,437,000	4,011,000	4,437,000
Related to RSUs
Anti-dilutive shares	1,981,000	1,247,000	1,981,000	1,247,000

Long-Term Contracts (Narrative)

Long-Term Contracts (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Deferred revenue, classified within other currrent liabilities	$ 8,858	$ 10,208
LBS Display System
Deferred Revenue, Description	In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under the agreement, we received an upfront payment of $10.0 million in 2017 and, as of December 31, 2019, had also received $15.0 million, net of early payment discounts, representing all payment due for development work. The original contract was for $14.0 million in fees for development work, but we and our customer agreed to add $1.1 million in additional work to total $15.1 million. After applying early payment discounts, we recognized revenue of $15.0 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. Beginning in the fourth quarter of 2019, the $10.0 million upfront payment was being recognized as revenue at the point in time that component sales were sold to the major technology customer. In March 2020, we entered into an agreement for our customer to take over production of the components we had been producing for them. The agreement provides that, beginning in March 2020, we will earn a royalty on each component shipped that is approximately equal to the gross profit we earned on each component we had previously produced. Under the new arrangement, the royalties earned will be applied against

Long-Term Debt (Narrative) (Det

Long-Term Debt (Narrative) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Long-term Debt Narrative
Long-term Debt, Description	In April 2020, we received funds in the amount of $1,570,881 pursuant to a loan under the Paycheck Protection Program of the 2020 CARES Act ("PPP") administered by the Small Business Administration. The loan has an interest rate of 0.98% and a term of 24 months.
Long-term Debt, Maturities, Repayment Terms	No payments are due for the first 6 months, although interest accrues during that period. Thereafter, the loan is repayable in monthly installments over the next 18 months to retire the loan plus accrued interest. Funds from the loan may only be used for certain purposes, including payroll, benefits, rent and utilities, and a portion of the loan used to pay certain costs may be forgivable, all as provided by the terms of the PPP. The loan is evidenced by a promissory note, which contains customary events of default relating to, among other things, payment defaults and breaches of representations and warranties. We may prepay the loan at any time prior to maturity with no prepayment penalties.
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate	0.98%
Debt Instrument, Face Amount	$ 1,570,881

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregated Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregated revenue	$ 587	$ 1,240	$ 2,056	$ 3,091
Product revenue
Disaggregated revenue	0	0	1,247	199
License and royalty revenue
Disaggregated revenue	572	0	784	0
Contract revenue
Disaggregated revenue	15	1,240	25	2,892
Transferred at Point in Time
Disaggregated revenue	572	36	2,035	251
Transferred at Point in Time | Product revenue
Disaggregated revenue	0	0	1,247	199
Transferred at Point in Time | License and royalty revenue
Disaggregated revenue	572	0	784	0
Transferred at Point in Time | Contract revenue
Disaggregated revenue	0	36	4	52
Transferred over Time
Disaggregated revenue	15	1,204	21	2,840
Transferred over Time | Product revenue
Disaggregated revenue	0	0	0	0
Transferred over Time | License and royalty revenue
Disaggregated revenue	0	0	0	0
Transferred over Time | Contract revenue
Disaggregated revenue	$ 15	$ 1,204	$ 21	$ 2,840

Revenue Recognition - Contract

Revenue Recognition - Contract Balances with Contract Customers (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Accounts receivable, net	$ 0	$ 1,079
Deferred revenue	0	21
Contract liabilities	8,699	9,755
Other current assets	301	729
Other current liabilities	0	83
Contracts with Customers
Accounts receivable, net	0	1,079
Accrued liabilities	159	432
Deferred revenue	0	21
Contract liabilities	$ 8,699	$ 9,755

Revenue Recognition - Schedule

Revenue Recognition - Schedule of Significant Changes in Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Contractors [Abstract]
Contract assets	$ 0	$ 0
Change in Contract Asset	$ 0
Percent Change in Contract Asset	0.00%
Contract liabilities	$ (8,858)	(10,208)
Change in Contract Liability	$ 1,350
Percent Change in Contract Liability	(13.20%)
Net contract assets (liabilities)	$ (8,858)	$ (10,208)
Change in Net Contract Assets (Liabilities)	$ 1,350
Percent Change in Net Contract Assets (Liabilities)	(13.20%)

Revenue Recognition - Estimated

Revenue Recognition - Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) - License and royalty revenue $ in Thousands	Jun. 30, 2020USD ($)
Remainder 2020
Revenue, Remaining Performance Obligation	$ 1,051
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year	2020
2021
Revenue, Remaining Performance Obligation	$ 0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Year	2021

Concentration of Sales to Major

Concentration of Sales to Major Customers) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Total revenue	$ 587	$ 1,240	$ 2,056	$ 3,091
Customer Revenue Concentration
Total revenue	$ 587,000	$ 1,200	$ 2,100	$ 2,800
Concentration Risk, Percentage	100.00%	97.00%	100.00%	92.00%

Inventory Components (Details)

Inventory Components (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventory Components Details Abstract
Raw materials	$ 0	$ 0
Finished goods	0	192,000
Inventory, net	$ 0	$ 192,000

Inventory (Narrative) (Details)

Inventory (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Inventory Narrative
Material classified as other assets			$ 168,000
Inventory write-downs	$ 168,000	$ 852,000

Share-Based Compensation (Sched

Share-Based Compensation (Schedule Of Stock-Based Compensation Expense By Statement Of Operations) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based employee compensation expense	$ 200	$ 268	$ 389	$ 619
Cost of product revenue
Share-based employee compensation expense	0	0	0	1
Research and development expense
Share-based employee compensation expense	103	76	142	199
Sales, marketing, general and administrative expense
Share-based employee compensation expense	$ 97	$ 192	$ 247	$ 419

Shared-Based Compensation (Opti

Shared-Based Compensation (Options Activity and Position) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares
Income Taxes Narrative Details
Outstanding shares | shares	4,011,000
Weighted-average exercise price of options outstanding | $ / shares	$ 1.5
Weighted-average remaining contractual term (in years) of options outstanding	6 years 288 days
Aggregate intrinsic value of options outstanding | $	$ 1,070,000
Exercisable shares | shares	2,287,000
Weighted-average exercise price of options exercisable | $ / shares	$ 1.98
Weighted-average remaining contractual term (in years) of options exercisable	5 years 144 days
Aggregate intrinsic value of options exercisable | $	$ 165,000

Share-Based Compensation (Narra

Share-Based Compensation (Narrative) (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Options Exercisable
Unrecognized compensation cost related to share-based compensation	$ 600,000
Weighted-average service period, years	1 year 216 days
Related to RSUs
Unrecognized compensation cost related to share-based compensation	$ 240,000
Weighted-average service period, years	1 year 108 days
PSU
Unrecognized compensation cost related to share-based compensation	$ 8,000
Weighted-average service period, years	1 year 144 days

Components of Lease Expense (De

Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 116	$ 116	$ 232	$ 232
Finance lease expense:
Amortization of leased assets	6	4	12	8
Interest on lease liabilities	1	2	2	3
Total finance lease cost	7	6	14	11
Total lease expense	$ 123	$ 122	$ 246	$ 243

Supplemental Cash Flow Informat

Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 325	$ 321
Operating cash flows from finance leases	2	3
Financing cash flows from finance leases	13	9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	0	1,638
Finance leases	$ 0	$ 0

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information Related to Leases (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Operating Leases
Operating lease right-of-use assets	$ 1,132	$ 1,308
Total operating lease liabilities	1,735	2,004
Finance Leases
Property and equipment, net	1,623	1,849
Total finance lease liabilities	$ 21	$ 34
Weighted Average Remaining Lease Term
Operating leases	3 years	3 years
Finance leases	1 year	1 year
Weighted Average Discount Rate
Operating leases	6.00%	6.00%
Finance leases	13.80%	13.80%
Finance Lease
Finance Leases
Property and equipment, at cost	$ 66
Accumulated depreciation	(32)
Property and equipment, net	34
Finance Lease
Finance Leases
Property and equipment, at cost		$ 66
Accumulated depreciation		(25)
Property and equipment, net		41
Other Current Liabilities
Operating Leases
Total operating lease liabilities	666	656
Finance Leases
Total finance lease liabilities	20	25
Other Noncurrent Liabilities
Operating Leases
Total operating lease liabilities	1,069	1,348
Finance Leases
Total finance lease liabilities	1	9
Operating Lease Liabilities
Operating Leases
Total operating lease liabilities	$ 1,735	$ 2,004

Maturities of Lease Liabilities

Maturities of Lease Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Years Ended December 31,
Operating leases, 2020	$ 330
Operating leases, 2021	676
Operating leases 2022	696
Operating leases, 2023	175
Operating leases, thereafter	0
Operating leases, total mimimum lease payments	1,877
Operating leases, less amount representing interest	(142)
Operating leases present value	1,735	$ 2,004
Finance leases, 2020	13
Finance leases, 2021	9
Finance leases, 2022	0
Finance leases, 2023	0
Finance leases, thereafter	0
Finance leases, total minimum lease payments	22
Finance leases, less amount representing interest	(1)
Finance leases present value	$ 21	$ 34

Common Stock Issuance (Narrativ

Common Stock Issuance (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Cash received from stock sale, before issuance costs	$ 6,866,000	$ 6,423,000	$ 8,346,000	$ 7,592,000
December 2019 Agreement
Number of shares of common stock issued			19,300,000
Cash received from stock sale, before issuance costs			$ 9,300,000
Stock issuance costs			$ 90,000
Terms and provisions			In December 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park Capital Fund, LLC ("Lincoln Park") granting us the right to sell shares of our common stock having an aggregate value of up to $16.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of 1.5 million shares of common stock for $1.0 million at a purchase price of $0.6531 per share. Subject to various limitations and conditions set forth in the agreement, we may sell up to an additional $15.0 million in shares of common stock, from time to time, at our sole discretion to Lincoln Park over a 24-month period beginning December 2019. In consideration for entering into the agreement, we issued 375,000 shares of our common stock, having a value of $277,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $90,000 in issuance costs. As of June 30, 2020, we have issued 19.3 million shares and raised a total of $9.3 million under this agreement.
Registered April 2019
Number of shares of common stock issued			2,300,000
Cash received from stock sale, before issuance costs			$ 2,000,000
Stock issuance costs			$ 34,000
Terms and provisions			In April 2019, we raised $2.0 million before issuance costs of approximately $34,000 through a registered direct offering of 2.3 million shares of our common stock to a private investor.
Lincoln Park April 2019
Number of shares of common stock issued			15,700,000
Cash received from stock sale, before issuance costs			$ 11,000,000
Stock issuance costs			$ 92,000
Terms and provisions			In April 2019, we entered into a Common Stock Purchase Agreement with Lincoln Park granting us the right to sell shares of our common stock having an aggregate value of up to $11.0 million. Under the terms of the agreement, Lincoln Park made an initial purchase of $1.0 million in shares of common stock at a purchase price of $0.98 per share. In consideration for entering into the agreement, we issued 250,000 shares of our common stock, having a value of $258,000, based on the closing stock price at the date of grant, to Lincoln Park as a commitment fee. We incurred an additional $92,000 in issuance costs. As of December 31, 2019, we had issued 15.7 million shares and raised a total of $11.0 million under this agreement. No further shares are available for sales under this agreement.
Registered January 2019
Number of shares of common stock issued			2,000,000
Cash received from stock sale, before issuance costs			$ 1,200,000
Stock issuance costs			$ 26,000
Terms and provisions			In January 2019, we raised $1.2 million before issuance costs of approximately $26,000 through a registered direct offering of 2.0 million shares of our common stock to a private investor.