U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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ý QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE |
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For the quarterly period ended September 30, 2002 |
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o TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(D) OF THE SECURITIES |
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For the transition period from to . |
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Commission File Number 0-21221 |
MICROVISION, INC.
(Exact Name of Registrant as Specified in Its Charter)
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Washington |
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91-1600822 |
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(State or Other
Jurisdiction of Incorporation |
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(I.R.S. Employer Identification No.) |
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19910 North Creek Parkway, Bothell, Washington 98011-3008 |
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(Address of Principal Executive Offices) |
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Issuer’s telephone number, including area code: (425) 415-6847 |
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Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ý Yes o No
As of October 31, 2002, 15,154,400 shares of the Company’s common stock, no par value, were outstanding.
PART I
FINANCIAL INFORMATION
2
Microvision, Inc.
Consolidated Balance Sheet
(In thousands)
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September 30, |
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December 31, |
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(Unaudited) |
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Assets |
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Current Assets |
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Cash and cash equivalents |
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$ |
10,763 |
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$ |
15,587 |
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Investment securities, available-for-sale |
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9,719 |
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18,065 |
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Accounts receivable, net of allowances of $109 and $109 |
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2,703 |
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1,712 |
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Costs and estimated earnings in excess of billings on uncompleted contracts |
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1,797 |
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1,584 |
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Inventory, net |
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994 |
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99 |
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Current restricted investments |
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11 |
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102 |
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Other current assets |
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3,096 |
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2,302 |
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Total current assets |
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29,083 |
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39,451 |
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Long-term investment, at cost |
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— |
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624 |
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Property and equipment, net |
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8,027 |
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8,960 |
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Restricted investments |
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1,356 |
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1,434 |
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Receivables from related parties, net |
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2,243 |
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2,252 |
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Other assets |
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568 |
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1,334 |
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Total assets |
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$ |
41,277 |
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$ |
54,055 |
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Liabilities, Minority Interests and Shareholders’ Equity |
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Current Liabilities |
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Accounts payable |
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$ |
1,942 |
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$ |
1,613 |
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Accrued liabilities |
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4,893 |
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4,298 |
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Allowance for estimated contract losses |
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155 |
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155 |
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Billings in excess of costs and estimated earnings on uncompleted contracts |
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179 |
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60 |
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Current portion of capital lease obligations |
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91 |
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170 |
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Current portion of long-term debt |
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62 |
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57 |
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Total current liabilities |
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7,322 |
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6,353 |
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Capital lease obligations, net of current portion |
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97 |
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61 |
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Long-term debt, net of current portion |
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185 |
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232 |
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Deferred rent, net of current portion |
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271 |
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259 |
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Total liabilities |
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7,875 |
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6,905 |
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Commitments and Contingencies |
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— |
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— |
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Minority Interests |
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9,176 |
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14,824 |
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Shareholders’ Equity |
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Common stock and paid-in capital, no par value, 31,250 shares authorized; 15,154 and 12,998 shares issued and outstanding |
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147,042 |
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135,954 |
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Deferred compensation |
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(1,693 |
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(2,803 |
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Subscriptions receivable from related parties |
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(183 |
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(321 |
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Accumulated other comprehensive income |
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266 |
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427 |
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Accumulated deficit |
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(121,206 |
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(100,931 |
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Total shareholders’ equity |
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24,226 |
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32,326 |
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Total liabilities, minority interests and shareholders’ equity |
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$ |
41,277 |
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$ |
54,055 |
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The accompanying notes are an integral part of these consolidated financial statements.
3
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
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Three months ended September 30, |
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Nine months ended September 30, |
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2002 |
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2001 |
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2002 |
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2001 |
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Revenue |
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$ |
4,186 |
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$ |
2,402 |
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$ |
12,724 |
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$ |
6,511 |
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Cost of revenue |
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1,919 |
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1,338 |
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5,925 |
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3,981 |
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Gross margin |
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2,267 |
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1,064 |
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6,799 |
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2,530 |
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Research and development expense (exclusive of non-cash compensation expense of $253 and $257 for the three months and $753 and $608 for the nine months ended September 30, 2002 and 2001, respectively) |
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5,433 |
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8,479 |
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18,762 |
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24,489 |
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Marketing, general and administrative expense (exclusive of non-cash compensation expense of $197 and $294 for the three months and $610 and $1,261 for the nine months ended September 30, 2002 and 2001, respectively) |
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3,904 |
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3,816 |
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12,786 |
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10,820 |
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Non-cash compensation expense |
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450 |
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551 |
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1,363 |
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1,869 |
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Total operating expenses |
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9,787 |
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12,846 |
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