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Microcap & Penny Stocks : Microvision (MVIS) -- Ignore unavailable to you. Want to Upgrade?

To: BDR who wrote (2419)	4/15/1999 12:54:00 AM
From: Obewon	Respond to of 7720

Just got finished reading the 10K - Whew! Several interesting things grabbed my attention: 1) Details of VP Wiley's stock incentive program: 4.1 An option to purchase up to 56,000 shares at a price of $14.00. These options shall vest in four equal quarterly installments, commencing on October 1, 1998. 4.2 An option to purchase up to 56,000 shares at a price of $17.50. These options shall vest in four equal quarterly installments commencing on October 1, 1999. 4.3 An option to purchase up to 56,000 shares at a price of $21.88. These options shall vest in four equal quarterly installments commencing on October 1, 2000. 4.4 An option to purchase up to 56,000 shares at a price of $27.34. These options shall vest in four equal quarterly installments commencing on October 1, 2001. 4.5 An option to purchase up to 14,000 shares at a price of $34.18. These options shall vest in one quarterly installment commencing on October 1, 2002. This clearly illustrates the extent to which the company is optimistic about the company's stock price. Of course, some on the thread will be disappointed by the exercise prices for options in the future is not high considering the rosy view they have. 2) It is unlikely that the company will head back to the market for additional funding until October at the least. The private placement with Heights Capital Management gives them a "right of first refusal" for 180 days. Any securities MVIS might want to sell would first have to be offered to HCM. 3) The loss last year was much greater than $7M. In one of the footnotes, the company relates that if they used the guidance of FASB 123 (relating to using stock options as compensation and requires using the Black-Scholls method of valuing option grants), compensation expense would have been much greater leading to a loss of $10M for the year. (Note: Most other tech companies don't use this method in their normal calculations either so its not as if MVIS is trying to pull a fast one here.) 4) Rental expense and leases will nearly triple in 1999. The cost of the expansion and move to Bothell appears to be around $1.5M. 5) The true value of MVIS's patent portfolio is not yet reflected by the balance sheet since the company hasn't yet developed a commercial product. This has the effect of keeping down both assets and equity and will result in higher ROA and ROE figures if the company turns a profit. Other than these issues I think the company did tremendously last year and am hoping for a repeat performance (along with a little more stock appreciation, of course!) Obewon