Long-Term Contracts (Narrative) (Details) - USD ($)

1 Months Ended

3 Months Ended

9 Months Ended

Oct. 31, 2018

Sep. 30, 2018

Sep. 30, 2017

Display-Only

Upfront payment received

$ 5,000,000

Deferred Revenue, Description

In May 2018, we signed a five-year license agreement with a customer granting them exclusive license to our LBS technology for display-only applications. As part of the agreement, we received a first payment of $5.0 million in June 2018 and the second payment of $5.0 million in October 2018. The contract includes requirements that must be met in order to maintain exclusivity. In addition to the up-front license fees, we expect payments for non-recurring engineering expenses associated with process and product transfer and qualification milestones, and component sales. During the three months ended September 30, 2018 we completed the transfer of the performance obligations required by the contract. As a result, we recognized $10.0 million in license and royalty revenue for the three and nine months ended September 30, 2018.

LBS Display System

Upfront payment received

$ 10,000,000

Contract revenue from development fees

$ 1,500,000

$ 5,600,000

Deferred Revenue, Description

In April 2017, we signed a contract with a major technology company to develop an LBS display system. Under this agreement, we are working to develop a new generation of MEMS, ASICs and related firmware for a high resolution, LBS-based product that the technology company is planning to produce. Under the agreement, we received an upfront payment of $10.0 million in 2017 and may receive up to $14.4 million in fees for development work that is expected to span into the second quarter of 2019. Our receipt of the development fees is contingent on completion of milestones in 2017 and 2018, and into the second quarter of 2019. As of September 30, 2018, we have received $9.2 million in fees for development work and recognized $10.3 million in revenue. Upon successful completion of the development program, if the major technology company decides to manufacture the product with the MicroVision display components, the $10.0 million upfront payment would be applied as a discount to future component purchases from us. If the contract is terminated by the technology company for our failure to meet milestones, the $10.0 million upfront payment is subject to repayment. We are recognizing revenue on the $14.4 million in development fees over time based on the proportion of total cost expended (under Topic 606, the "input method") to the total cost expected to complete the contract performance obligation. For the three and nine months ended September 30, 2018, we have recognized $1.5 million and $5.6 million, respectively, of contract revenue from development fees on this agreement. We have an amount equal to the $10.0 million upfront payment classified as an other current liability on the balance sheet.

Deferred revenue, classified within other currrent liabilities

$ 10,000,000