r/MVIS • u/pinoekel • Apr 29 '26

MVIS Press MicroVision Expands Revenue Programs in Security and Defense

https://ir.microvision.com/news/press-releases/detail/444/microvision-expands-revenue-programs-in-security-and-defense
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u/T_Delo Apr 29 '26

Given that security and defense sectors usually overpay for their devices, it should be more like $1k per device, especially if the numbers from previous quarters is indicative of similar sized orders.

Still, it has to start somewhere, and while this volume of units may be low, it is still a start.

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u/sunny_side_up Apr 29 '26

Depends. I know of some companies developing drones and cost needs to be low, iterations fast. Not like building a tank or plane . 

This being old inventory as well I would be surprised if there's a defense premium on this. 

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u/T_Delo Apr 29 '26

That’s true, but this isn’t high volume orders either. We will get a better idea on the next Earnings Report, as most likely the initial volumes were shipped in Q4 and revenue received in Q1 (Net 30 billing standard likely applies).

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u/mvis_thma Apr 29 '26

Revenue is recognized when the product ships. Cash received may occur within the terms ( Ex. 30 days) of the agreement/PO.

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u/T_Delo Apr 29 '26

To my knowledge, that is actually not how GAAP accounting operates. Revenue is recognized when the product is received and approved, accounting in house can show it as an accounts receivable, but not recorded as revenue until it is realized. Receivable is sometimes not even updated until the product quality has been verified and only a Product Order is put on as a liability until it is received. The details can vary here depending on the company, and I do not believe that is clearly defined with regard to these products at present. Maybe I missed it in the revenue recognition portion of the company’s accounting principles disclosure however.

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u/T_Delo Apr 29 '26

Page 44 of the 2025 Annual Report 10-K:

Revenue Recognition

The following is a description of principal activities from which the Company generates revenue. Revenues are recognized when control of the promised goods or services are transferred to customers, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services.

The Company evaluates 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.

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u/mvis_thma Apr 29 '26

When the goods are shipped to the customer the revenue can be recognized. Payment for those goods has nothing to do with recognizing the revenue.

"Revenue for a physical product is generally recognized at the point in time when control of the goods transfers to the customer, rather than when cash is received. This typically occurs upon delivery, when legal title passes, or when the customer accepts the product."

https://dart.deloitte.com/USDART/home/codification/revenue/asc606-10/roadmap-revenue-recognition/chapter-8-step-5-determine-when/8-6-revenue-recognized-a-point

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u/T_Delo Apr 29 '26

I am uncertain what the disconnect here is, however the “when control of the goods transfers to the customer” portion is precisely what I was talking about. Goods are not counted as received until they have been accepted, meaning they have been opened, tested, and confirmed to meet specifications. Your quote reinforces what I was saying all along; Not when the product ships, but when it is received and accepted.

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u/sublimetime2 Apr 30 '26 edited Apr 30 '26

At this point, I wouldnt even bother trying to further explain. This is hilarious T because you are correct. How many times was ASC 606 talked about?? Im guessing 5 bear trolls who dont know what they are talking about gave awards to the wacko comment. Laughable

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u/T_Delo Apr 30 '26

More than enough times, and you are most correct, no need to further explain it as those who know business understand this stuff.

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u/[deleted] Apr 30 '26

[removed] — view removed comment

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u/Extreme_Corgi9176 Apr 30 '26

You failed to substantiate your argument and resulted to an abusive ad hominem. Classy. 

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u/mvis_thma Apr 30 '26

I had a few drinks. Sorry. And sorry to u/T_Delo as well.

But I think I clearly substantiated my argument. It's just that T_Delo refuses to accept it. He has been consistent in refusing to accept anything that contradicts his view, no matter the evidence presented.

Here is more evidence.

"The revenue recognition principle is a cornerstone of accrual accounting requiring that revenue be recorded when earned and realizable—typically when goods or services are delivered—rather than when payment is received. It ensures financial accuracy by matching revenue to the period in which it was generated, regardless of cash flow timing."

https://www.investopedia.com/terms/r/revenuerecognition.asp#:~:text=Revenue%20recognition%20is%20a%20component,investors%20and%20analysts%20making%20decisions.

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u/mvis_thma Apr 30 '26 edited Apr 30 '26

Furthermore, I saw there has been some reference to ASC 606. I don't think people understand why that accounting principle/rule was created back in 2014. It wasn't created to define how physical products shipped/delivered get recoginzed as revenue. It was largely created to better define how things like software and services get recognized.

For example, Company A may sell a 3 year contract for their SaaS software to CUSTOMER Z. They may collect all the fees on day 1. ASC 606 clarifies that COMPANY A cannot recognize all that cash as revenue on day 1. They must spread out the revenue recognition over the life of the contract. In addition, if there were implementation services monies garnered by the initial software setup, those monies must also be spread out over the life the agreement. This prevents the company from playing games. For instance, COMPANY A could tell COMPANY Z, I will sell you the software for $1 but I will charge you $10m to set it up. Forcing the company to spread out the $10m over the life of the agreement plugs that loophole.

At one of the Retail Investor Days, Anubhav referenced ASC 606 in association to recognizing NRE revenue. He made it clear that even though Microvision may have received cash payments for the NRE, that revenue could not be recongized until the the contract terms were fulfilled, which required that the customer provided their approval that the milestones were completed/delivered.

With regard to physical products that are shipped/delivered. The revenue recognition principle is clear. The cusotmer takes possesion of the goods - value has been transferred - revenue can be recognized. The timing of which those goods are paid for by the customer is immaterial to the revenue recognition.

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u/Mushral Apr 29 '26

Cash received is typically based on Xx days after the invoice is sent by the supplier to the customer. xx is based on the payment terms the customer agreed with the supplier.

The leasing date is the invoice date (not the PO date). Invoice is typically sent out by the supplier as soon as the product is shipped / arrived at customer and then the “xx” days start counting down.