U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934.
o TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to .
Commission File Number 0-21221
MICROVISION, INC.
(Exact Name of Registrant as Specified in Its Charter)
|
Washington |
|
91-1600822 |
|
(State or Other
Jurisdiction of Incorporation |
|
(I.R.S. Employer Identification No.) |
|
|
|
|
|
19910 North Creek Parkway, Bothell, Washington |
|
98011-3008 |
|
(Address of Principal Executive Offices) |
|
(Zip Code) |
|
|
|
|
|
Registrant’s telephone number, including area code: (425) 415-6847 |
||
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. [X] Yes [ ] No
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). [ ] Yes [X] No
As of August 1, 2003, 17,799,000 shares of the Company’s common stock, no par value, were outstanding.
PART I
FINANCIAL INFORMATION
2
Microvision, Inc.
(In thousands)
(Unaudited)
|
|
|
June 30, |
|
December 31, |
|
||
|
Assets |
|
|
|
|
|
||
|
Current Assets |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
9,275 |
|
$ |
9,872 |
|
|
Investment securities, available-for-sale |
|
2,495 |
|
5,304 |
|
||
|
Accounts receivable, net of allowances of $109 and $109 |
|
2,476 |
|
1,315 |
|
||
|
Costs and estimated earnings in excess of billings on uncompleted contracts |
|
1,445 |
|
1,073 |
|
||
|
Inventory, net |
|
450 |
|
747 |
|
||
|
Other current assets |
|
1,680 |
|
2,348 |
|
||
|
Total current assets |
|
17,821 |
|
20,659 |
|
||
|
|
|
|
|
|
|
||
|
Property and equipment, net |
|
6,509 |
|
7,672 |
|
||
|
Restricted investments |
|
1,269 |
|
1,356 |
|
||
|
Receivables from related parties, net |
|
1,843 |
|
2,043 |
|
||
|
Other assets |
|
358 |
|
537 |
|
||
|
Total assets |
|
$ |
27,800 |
|
$ |
32,267 |
|
|
|
|
|
|
|
|
||
|
Liabilities, Minority Interests and Shareholders’ Equity |
|
|
|
|
|
||
|
Current Liabilities |
|
|
|
|
|
||
|
Accounts payable |
|
$ |
1,261 |
|
$ |
1,462 |
|
|
Accrued liabilities |
|
5,189 |
|
4,309 |
|
||
|
Current portion of research liability |
|
2,002 |
|
— |
|
||
|
Billings in excess of costs and estimated earnings on uncompleted contracts |
|
119 |
|
230 |
|
||
|
Current portion of capital lease obligations |
|
77 |
|
84 |
|
||
|
Current portion of long-term debt |
|
67 |
|
63 |
|
||
|
Total current liabilities |
|
8,715 |
|
6,148 |
|
||
|
|
|
|
|
|
|
||
|
Research liability, net of current portion |
|
— |
|
1,025 |
|
||
|
Capital lease obligations, net of current portion |
|
56 |
|
94 |
|
||
|
Long-term debt, net of current portion |
|
135 |
|
169 |
|
||
|
Deferred rent, net of current portion |
|
149 |
|
192 |
|
||
|
Total liabilities |
|
9,055 |
|
7,628 |
|
||
|
|
|
|
|
|
|
||
|
Commitments and Contingencies |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
||
|
Minority Interests |
|
3,482 |
|
7,223 |
|
||
|
|
|
|
|
|
|
||
|
Shareholders’ Equity |
|
|
|
|
|
||
|
Common stock and paid-in capital, no par value, 31,250 shares authorized; 17,799 and 15,154 shares issued and outstanding |
|
158,644 |
|
147,058 |
|
||
|
Deferred compensation |
|
(1,072 |
) |
(1,490 |
) |
||
|
Subscriptions receivable from related parties |
|
(166 |
) |
(166 |
) |
||
|
Accumulated other comprehensive income |
|
52 |
|
121 |
|
||
|
Accumulated deficit |
|
(142,195 |
) |
(128,107 |
) |
||
|
Total shareholders’ equity |
|
15,263 |
|
17,416 |
|
||
|
Total liabilities, minority interests and shareholders’ equity |
|
$ |
27,800 |
|
$ |
32,267 |
|
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)
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
||||||||
|
|
|
2003 |
|
2002 |
|
2003 |
|
2002 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Revenue |
|
$ |
4,511 |
|
$ |
4,734 |
|
$ |
8,048 |
|
$ |
8,538 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cost of revenue |
|
2,201 |
|
2,195 |
|
3,610 |
|
4,006 |
|
||||
|
Gross margin |
|
2,310 |
|
2,539 |
|
4,438 |
|
4,532 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Research and development expense (exclusive of non-cash compensation expense of $251 and $245 for the three months and $503 and $501 for the six months ended June 30, 2003 and 2002, respectively) |
|
6,079 |
|
5,960 |
|
12,879 |
|
13,329 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Marketing, general and administrative expense (exclusive of non-cash compensation expense of $201 and $153 for the three months and $414 and $412 for the six months ended June 30, 2003 and 2002, respectively) |
|
4,386 |
|
4,373 |
|
8,671 |
|
8,882 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-cash compensation expense |
|
452 |
|
398 |
|
917 |
|
913 |
|
||||
|
Total operating expenses |
|
10,917 |
|
||||||||||