Intangible assets - Note 7

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Intangible assets - Note 7

7. Intangible assets

Our intangible assets consist entirely of technology-based purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. The gross value of our intangible assets was $2.3 million as of December 31, 2012 and 2011, respectively. Amortization expense was $184,000 and $185,000 in 2012 and 2011, respectively. In 2012 we recorded an impairment amounting to $284,000 on 35 patents that were abandoned in prosecution. We estimate that we have no significant residual value related to our intangible assets.

In October 2010, we entered into an agreement to purchase a patent portfolio containing 195 patents and patents pending from Motorola, Inc. to complement our current portfolio of pico projection and display patents. Under terms of the agreement we issued approximately 104,000 shares of MicroVision common stock in October 2010, made cash payments of $220,000 and $330,000 in June 2011 and June 2012, respectively.

The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2012:

Year ended December 31,		Amount
2013	$	158,000
2014		158,000
2015		157,000
2016		157,000
2017		146,000
Thereafter		804,000
Total	$	1,580,000