IVAS and the $1.2M additional Payment from the 2017 April Contract

Let's assume a few things before I get started..

1. The 2017 April Contract client is Microsoft

2. the $1.2M of additional payment from MSFT was for the IVAS program.

3. The IVAS program will be utilizing LBS mems scanners, and MSFT needs to supply the program with 2,550 units by the end of 2020 - schedule of IVAS program for ref.

4. Upon completion of the IVAS program at the end of 2020, the DoD will award the largest purchase order of AR units towards Microsoft, totaling approximately 200,000 units.

Now to the thought exercise

What would be your estimated cost of components towards the IVAS program that MSFT received in that $1.2M worth of extension?

In the Q4 2018 CC, it was reported that the 2017 April Contract client had extended MVIS contract by 3 months (as it was reported on March 5, 2019 and it was expected to be completed by the end of Q2 2019 or June 2019), and the bulk being component parts and samples.

Steve Holt

There's a possibility that the customer could ask for something. We haven't announced anything about that, but I suppose there's nothing that would preclude that. On this contract, the $1.2 million additional, just in the last few months we've done some additional work on things that I really can't disclose. And also provided some additional component parts and samples to them that is the bulk of the $1.2 million.

If all of the above are true, wouldn't MVIS be looking at a >$100M in Q1 of 2021 (after doing the math properly it's more like $80M)? Is that why they seem so non-chalant about everything regarding PPS and NASDAQ delisting?

Anyways some food for thought, I'd love to hear everyone's opinion on what I wrote above.

GLTAL's