MicroVision, Inc. (MVIS) stock prices are up by 5.16% as of market close on April 22nd 2021, bringing the price per share up to USD$13.14
Q4 2020 Revenues
Earlier in March, MVIS had announced its financial reports for the previous quarter and the year ended December 31st, 2020. Q4 2020 reported revenues of USD$395,000, all of which was derived from royalties that were attributable to their April 2017 customer. Comparatively, Q3 2020 had seen USD$639,000, of which USD$539,000 was from royalties and the rest from product revenue.
Sources of Revenue
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The lack of product revenue in the fourth quarter is explained by MVIS having moved to a royalty model of payment as of March 1st, 2020. The royalties due to MVIS are credited against payments made in 2017, with cash payments being made once the prepayment is exhausted. As of the end of Q4 2020, the prepayment balance was USD$7.8 million.
The remaining prepayment balance is non-refundable and is a contract liability on the balance sheet, with USD$2 million having been put towards the prepayment in the year ended December 31st, 2020. Seeing how royalties are not associated with any cost of revenue, MVIS enjoyed a Q4 2020 devoid of any cost of revenue. This resulted in gross profits of USD$395,000 for the quarter.
Q4 2020 Operating Costs
Operating costs for the fourth quarter of 2020 were reported to be USD$4 million dollar, up from the USD$3.5 million reported in the previous quarter. This difference is attributable to additional expenses incurred from the development of the company’s first-generation LiDAR sensor as well as an expansion of their engineering staff.
Expansion of Workforce
At the onset of the pandemic, MVIS reduced their workforce by 60% on account of future uncertainty in regard to COVID-19. Recent developments have seen the rehiring of employees that were laid off in February of 2020, as well as new employees. This move is promising for investors who see it as a sign of confidence in the company’s future after such an uncertain year behind them, as well as being appealing for potential investors who could see it as an indicator of future growth.
With Q4 2020 ending with cash and cash equivalents coming in at a confidence inspiring USD$16.9 million, up from USD$5 million in Q3 2020, MVIS continues to invest in its long-range LiDAR technology. Their future potential success is further compounded by the addition of USD$61.4 million they raised in net proceeds from 2 ATMS completed in January and February of 2021.
Future Outlook for MVIS
MVIS is in the strongest financial position they have been in several years, in times that have proved to be unprecedentedly uncertain. With promising developments to their LiDAR technology, the company is poised to extrapolate its success into the future and increase shareholder value.
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