Vuzix Announces Improvements in Balance Sheet
Recent financial transactions results in increase in cash, stockholders' equity and assets and decrease in derivative liabilities
ROCHESTER, N.Y., Jan. 9, 2015 /PRNewswire/ -- Vuzix® Corporation (OTCQB: VUZI) ("Vuzix" or, the "Company"), a leading supplier of video eyewear and smart glasses products in the consumer, commercial and entertainment markets, today provided further details with regards to the recently announced $24.8 million investment into the Company by Intel Corporation ("Intel").
The Company filed a pro forma balance sheet with the Securities and Exchange Commission on Form 8-K. As a result of the transaction with Intel, the Company's stockholders' equity (deficit) increased to $22,970,939 from ($9,973,188) , total assets increased to $28,504,441 from $3,944,441, and $8,384,127 of derivative liability was removed from the Company's balance sheet, as of September 30, 2014, on a pro forma basis. The reduction in the derivative liability occurred as a result of 100% of holders of notes issued by the Company in June 3, 2014 and 86% of the warrants issued on July 30, 2013, agreeing to irrevocably waive their right to anti-dilution protection in connection with the transaction with Intel.
About Vuzix Corporation
Vuzix is a leading supplier of Video Eyewear and Smart Glasses products in the consumer, commercial and entertainment markets.
The Company's products include personal display and wearable computing devices that offer users a portable high quality viewing experience, provide solutions for mobility, wearable displays and virtual and augmented reality. Vuzix holds 39 patents and 10 additional patents pending and numerous IP licenses in the Video Eyewear field. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2014 and several wireless technology innovation awards, among others. Founded in 1997, Vuzix is a public company (VUZI.QB) with offices in Rochester, NY, Oxford, UK and Tokyo, Japan.
Forward-Looking Statements Disclaimer
Certain statements contained in this news release are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. Forward-looking statements contained in this release relate to potential impact of the investment transaction, the estimated pro forma balance sheet amounts as of September 30, 2014, , the value of the IP portfolio, among other things, and the Company's leadership in the Video Eyewear and AR display industry. They are generally identified by words such as "believes," "may," "expects," "anticipates," "should" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially due to risk factors and other items described in more detail in the "Risk Factors" section of the Company's Annual Reports and MD&A filed with the United States Securities and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sec.gov and www.sedar.com, respectively). Subsequent events and developments may cause these forward-looking statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.
For further investor information contact:
Investor Relations Contact:
Tel: (877) 368-3566
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SOURCE Vuzix Corporation
Released January 9, 2015