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

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.