U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE |
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For the quarterly period ended March 31, 2003 |
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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 |
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98011-3008 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (425) 415-6847 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). o Yes ý No
As of April 30, 2003, 17,799,000 shares of the Company’s common stock, no par value, were outstanding.
2
Microvision, Inc.
(In thousands)
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March 31, |
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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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$ |
16,911 |
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$ |
9,872 |
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Investment securities, available-for-sale |
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3,037 |
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5,304 |
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Accounts receivable, net of allowances of $109 and $109 |
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2,013 |
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1,315 |
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Costs and estimated earnings in excess of billings on uncompleted contracts |
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955 |
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1,073 |
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Inventory, net |
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244 |
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747 |
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Other current assets |
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2,134 |
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2,348 |
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Total current assets |
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25,294 |
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20,659 |
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Property and equipment, net |
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7,077 |
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7,672 |
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Restricted investments |
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1,297 |
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1,356 |
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Receivables from related parties, net |
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1,843 |
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2,043 |
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Other assets |
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392 |
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537 |
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Total assets |
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$ |
35,903 |
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$ |
32,267 |
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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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$ |
1,576 |
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$ |
1,462 |
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Accrued liabilities |
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5,011 |
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4,309 |
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Billings in excess of costs and estimated earnings on uncompleted contracts |
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184 |
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230 |
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Current portion of capital lease obligations |
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79 |
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84 |
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Current portion of long-term debt |
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65 |
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63 |
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Total current liabilities |
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6,915 |
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6,148 |
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Research liability |
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1,477 |
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1,025 |
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Capital lease obligations, net of current portion |
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73 |
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94 |
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Long-term debt, net of current portion |
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152 |
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169 |
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Deferred rent, net of current portion |
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170 |
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192 |
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Total liabilities |
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8,787 |
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7,628 |
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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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5,334 |
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7,223 |
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Shareholders’ Equity |
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Common stock and paid-in capital, no par value, 31,250 shares authorized; 17,799 and 15,154 shares issued and outstanding |
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158,644 |
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147,058 |
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Deferred compensation |
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(1,273 |
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(1,490 |
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Subscriptions receivable from related parties |
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(166 |
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(166 |
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Accumulated other comprehensive income |
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80 |
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121 |
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Accumulated deficit |
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(135,503 |
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(128,107 |
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Total shareholders’ equity |
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21,782 |
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17,416 |
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Total liabilities, minority interests and shareholders’ equity |
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$ |
35,903 |
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$ |
32,267 |
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The accompanying notes are an integral part of these financial statements.
3
Microvision, Inc.
Consolidated Statement of Operations
(In thousands, except earnings per share data)
(Unaudited)
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Three months ended March 31, |
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2003 |
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2002 |
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Revenue |
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$ |
3,537 |
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$ |
3,804 |
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Cost of revenue |
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1,409 |
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1,811 |
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Gross margin |
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2,128 |
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1,993 |
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Research and development expense (exclusive of non-cash compensation expense of $251 and $256 for the three months ended March 31, 2003 and 2002, respectively) |
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6,800 |
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7,369 |
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Marketing, general and administrative expense (exclusive of non-cash compensation expense of $214 and $259 for the three months ended March 31, 2003 and 2002, respectively) |
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4,285 |
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4,509 |
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Non-cash compensation expense |
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465 |
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515 |
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Total operating expenses |
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11,550 |
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12,393 |
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Loss from operations |
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(9,422 |
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(10,400 |
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Interest income |
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123 |
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338 |
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Interest expense |
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(14 |
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(18 |
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Realized gain on sale of investment securities |
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27 |
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— |
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Loss before minority interests |
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(9,286 |
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(10,080 |
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