UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number
(Exact name of registrant as specified in its charter)
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(Address of principal executive offices) | (Zip Code) |
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ | ☒ | |
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Smaller reporting company | Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes
As of May 10, 2023, there were
Vuzix Corporation
INDEX
2
Part 1: FINANCIAL INFORMATION
Item 1: Consolidated Financial Statements
VUZIX CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited) |
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March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
ASSETS |
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Current Assets |
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Cash and Cash Equivalents | $ | | $ | | ||
Accounts Receivable, Net |
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Accrued Revenues in Excess of Billings |
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Employee Retention Credit Receivable | | | ||||
Inventories, Net |
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Manufacturing Vendor Prepayments |
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Prepaid Expenses and Other Assets |
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Total Current Assets |
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Long-Term Assets |
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Fixed Assets, Net |
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Operating Lease Right-of-Use Asset | | | ||||
Patents and Trademarks, Net |
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Technology Licenses, Net |
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Intangible Asset, Net |
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Goodwill |
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Other Assets, Net |
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Total Assets | $ | | $ | | ||
LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current Liabilities |
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Accounts Payable | $ | | $ | | ||
Unearned Revenue |
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Accrued Expenses |
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Licensing Fees Commitment |
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Income and Other Taxes Payable |
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Operating Lease Right-of-Use Liability | | | ||||
Total Current Liabilities |
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Long-Term Liabilities | ||||||
Operating Lease Right-of-Use Liability | | | ||||
Total Liabilities |
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Stockholders' Equity |
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Common Stock - $ |
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Additional Paid-in Capital |
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Accumulated Deficit |
| ( |
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Treasury Stock, at cost, |
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Total Stockholders' Equity |
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Total Liabilities and Stockholders' Equity | $ | | $ | |
The accompanying notes are an integral part of these consolidated financial statements.
3
VUZIX CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(Unaudited)
Common Stock | Additional | Accumulated | Treasury Stock | ||||||||||||||||
| Shares |
| Amount |
| Paid-In Capital |
| Deficit |
| Shares |
| Amount |
| Total | ||||||
Balance - January 1, 2023 |
| | $ | | $ | | $ | ( | ( | $ | ( | $ | | ||||||
Stock-Based Compensation Expense |
| — |
| — |
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| — |
| — |
| — |
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Stock Option Exercises |
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| — |
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Purchases of Treasury Stock |
| — |
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| — |
| ( |
| ( |
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Net Loss |
| — |
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| — |
| ( |
| — |
| — |
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Balance - March 31, 2023 |
| | $ | | $ | | $ | ( |
| ( | $ | ( | $ | |
Common Stock | Additional | Accumulated | Treasury Stock | ||||||||||||||||
| Shares |
| Amount |
| Paid-In Capital |
| Deficit |
| Shares |
| Amount |
| Total | ||||||
Balance - January 1, 2022 |
| | $ | | $ | | $ | ( | — | $ | — | $ | | ||||||
Stock-Based Compensation Expense |
| — |
| — |
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| — |
| — |
| — |
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Stock Option Exercises |
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| — |
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| — |
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Purchases of Treasury Stock |
| — |
| — |
| — |
| — |
| ( |
| ( |
| ( | |||||
Net Loss |
| — |
| — |
| — |
| ( |
| — |
| — |
| ( | |||||
Balance - March 31, 2022 |
| | $ | | $ | | $ | ( |
| ( | $ | ( | $ | |
The accompanying notes are an integral part of these consolidated financial statements.
4
VUZIX CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended March 31, | |||||||
| 2023 |
| 2022 |
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Sales: |
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Sales of Products | $ | | $ | | |||
Cost of Sales: |
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Cost of Sales - Products Sold |
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Cost of Sales - Depreciation and Amortization | | | |||||
Total Cost of Sales |
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Gross Profit |
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Operating Expenses: |
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Research and Development |
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Selling and Marketing |
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General and Administrative |
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Depreciation and Amortization |
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Impairment of Patents and Trademarks |
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Total Operating Expenses |
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Loss From Operations |
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Other Income (Expense): |
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Investment Income |
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Income and Other Taxes |
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Foreign Exchange Loss |
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Total Other Income (Expense), Net |
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Loss Before Provision for Income Taxes |
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Provision for Income Taxes |
| — |
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Net Loss |
| ( |
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Basic and Diluted Loss per Common Share | $ | ( | $ | ( | |||
Weighted-average Shares Outstanding - Basic and Diluted |
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The accompanying notes are an integral part of these consolidated financial statements.
5
VUZIX CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended March 31, | ||||||
| 2023 |
| 2022 | |||
Cash Flows from Operating Activities |
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Net Loss | $ | ( | $ | ( | ||
Non-Cash Adjustments |
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Depreciation and Amortization |
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Stock-Based Compensation |
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Impairment of Patents and Trademarks |
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(Increase) Decrease in Operating Assets |
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Accounts Receivable |
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Accrued Revenues in Excess of Billings |
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Inventories |
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Manufacturing Vendor Prepayments |
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Prepaid Expenses and Other Assets |
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Increase (Decrease) in Operating Liabilities |
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Accounts Payable |
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Accrued Expenses |
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Unearned Revenue |
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Income and Other Taxes Payable |
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Net Cash Flows Used in Operating Activities |
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Cash Flows from Investing Activities |
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Purchases of Fixed Assets |
| ( |
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Investments in Patents and Trademarks |
| ( |
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Investments in Licenses, Intangibles and Other Assets |
| ( |
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Investments in Software Development | ( | — | ||||
Investments in Other Assets |
| ( |
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Net Cash Flows Used in Investing Activities |
| ( |
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Cash Flows from Financing Activities |
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Proceeds from Exercise of Warrants |
| — |
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Purchases of Treasury Stock | ( | ( | ||||
Net Cash Flows Used in Financing Activities |
| ( |
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Net Decrease in Cash and Cash Equivalents |
| ( |
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Cash and Cash Equivalents - Beginning of Period |
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Cash and Cash Equivalents - End of Period | $ | | $ | | ||
Supplemental Disclosures |
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Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | $ | | $ | | ||
Non-Cash Investment in Licenses | | — | ||||
Stock-Based Compensation Expense - Expensed less Previously Issued | | |
The accompanying notes are an integral part of these consolidated financial statements.
6
VUZIX CORPORATION
NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Basis of Presentation
The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications have been made to prior comparable periods to conform with current reporting impacting Costs of Sales, Gross Profit and Depreciation and Amortization. The results of the Company’s operations for the three months ended March 31, 2023 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period.
The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2022, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2023.
Reclassification of Prior Year Presentation
Certain prior year amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Operations for the three months ended March 31, 2022, to reclassify depreciation expense related to our manufacturing operations from the amounts of reported depreciation and amortization expenses originally included in Operating Expenses. This change in classification does not affect previously reported Net Loss or reported Cash Flows Used in Operating Activities in the Consolidated Statements of Cash Flows or Consolidated Balance Sheets. The below table is a summary of the impact of these reclassifications:
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| For the Three Months Ended March 31, 2022 |
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Condensed Statement of Operations | As Previously Presented | Reclassification | Revised | ||||||||
Total Sales | $ | | $ | — | $ | | |||||
Cost of Sales - Products Sold | | ( | | ||||||||
Cost of Sales - Depreciation and Amortization | — | | | ||||||||
Gross Profit | | | | ||||||||
Operating Expenses: | |||||||||||
Research and Development | | | |||||||||
Selling and Marketing | | | |||||||||
General and Administrative | | | |||||||||
Depreciation and Amortization | | ( | | ||||||||
Impairment of Patents and Trademarks | | | |||||||||
Total Operating Expenses | | ( | | ||||||||
Loss From Operations |
| ( |
| — |
| ( | |||||
Total Other Expense, Net | ( | ( | |||||||||
Net Loss | $ | ( | $ | — | $ | ( |
Customer Concentrations
For the three months ended March 31, 2023,
7
As of March 31, 2023,
Treasury Stock
Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent re-issuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method.
Recent Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. The Company adopted ASU 2016-13 effective on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements.
Note 2 – Revenue Recognition and Contracts with Customers
Disaggregated Revenue
The Company’s total revenue was comprised of
Three Months Ended | ||||||
March 31, | ||||||
| 2023 |
| 2022 | |||
Revenues |
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Products Sales | $ | | $ | | ||
Significant Judgments
Under Topic 606 “Revenue from Contracts with Customers”, we use judgments that could potentially impact both the timing of our satisfaction of performance obligations and our determination of transaction prices used in determining revenue recognized by major product line. Such judgments include considerations in determining our transaction prices and when our performance obligations are satisfied for our standard product sales that include an end-user 30-day right to return if not satisfied with product and general payment terms that are between Net 30 and 60 days. For our engineering services, performance obligations are recognized over time using the input method and the estimated costs to complete each project are considered significant judgments.
Performance Obligations
Revenues from our performance obligations are typically satisfied at a point-in-time for Smart Glasses, Waveguides and Display Engines, and our OEM Products, which are recognized when the customer obtains control and ownership, which is generally upon shipment. The Company considers shipping and handling activities performed to be fulfillment activities and not a separate performance obligation. The Company also records revenue for performance obligations relating to our engineering services over time by using the input method measuring progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our engineering services is measured by the Company’s costs incurred as a percentage of total expected costs to project completion as the inputs of actual costs incurred by the Company are directly correlated with progress toward completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time for our engineering services correlate directly with the transfer of control of the underlying assets to our customers.
8
Our standard product sales include a
( ) month assurance-type product warranty. In the case of certain of our OEM products and waveguide sales, some include a standard product warranty of up to ( ) months to allow distribution channels to offer the end customer a full ( ) months of coverage. We offer extended warranties to customers, which extend the standard product warranty on product sales for an additional ( ) month period. All revenue related to extended product warranty sales is deferred and recognized over the extended warranty period. Our engineering services contracts vary from contract to contract but typically include payment terms of Net 30 days from the date of billing, subject to an agreed upon customer acceptance period.The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three months ended March 31:
| % of Total Net Sales | ||||
2023 |
| 2022 |
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Point-in-Time |
| | % | | % |
Remaining Performance Obligations
As of March 31, 2023, the Company had approximately $
The Company had no material outstanding performance obligations related to product sales, other than its standard product warranty.
Note 3 – Loss Per Share
Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are anti-dilutive. Since the Company reported a net loss for the three months ended March 31, 2023 and 2022, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. At March 31, 2023 and 2022, there were
Note 4 – Inventories, Net
Inventories are stated at the lower of cost and net realizable value, and consisted of the following:
March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
Purchased Parts and Components | $ | | $ | | ||
Work-in-Process |
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Finished Goods |
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Less: Reserve for Obsolescence |
| ( |
| ( | ||
Inventories, Net | $ | | $ | |
9
Note 5 – Fixed Assets
Fixed Assets consisted of the following:
March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
Tooling and Manufacturing Equipment | $ | | $ | | ||
Leaseholds |
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Computers and Purchased Software |
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Furniture and Equipment |
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Less: Accumulated Depreciation |
| ( |
| ( | ||
Fixed Assets, Net | $ | | $ | |
During the three months ended March 31, 2023, the Company invested approximately $
Total depreciation expense for fixed assets, not included in Cost of Sales, for the three months ended March 31, 2023 and 2022 was $
Note 6 – Technology Licenses, Net
March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
Licenses | $ | | $ | | ||
Additions |
| — |
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Less: Accumulated Amortization |
| ( |
| ( | ||
Licenses, Net | $ | | $ | |
Total amortization expense related to technology licenses for the three months ended March 31, 2023 and 2022 was $
Note 7 - Other Assets
March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
Private Corporation Investments | $ | | $ | | ||
Additions | | — | ||||
Total Private Corporation Investments (at cost) | | | ||||
Software Development Costs | | | ||||
Additions | | | ||||
Less: Accumulated Amortization | ( | ( | ||||
Software Development Costs, Net | | | ||||
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | | | ||||
Total Other Assets | $ | | $ | |
10
In 2021, the Company acquired, for a purchase price of $
During 2020, the Company invested $
Total amortization expense related to all software updates for the three months ended March 31, 2023 and 2022 were $
Note 8 – Accrued Expenses
Accrued expenses consisted of the following:
March 31, | December 31, | |||||
| 2023 |
| 2022 | |||
Accrued Wages and Related Costs | $ | | $ | | ||
Accrued Professional Services |
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Accrued Warranty Obligations |
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Other Accrued Expenses |
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Total | $ | | $ | |
The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally
The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2023 were as follows:
Accrued Warranty Obligations at December 31, 2022 | $ | | |
Reductions for Settling Warranties |
| ( | |
Warranties Issued During Year |
| | |
Accrued Warranty Obligations at March 31, 2023 | $ | |
Note 9 – Income Taxes
The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets.
11
Note 10 – Capital Stock
Preferred stock
The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. A total of
Common Stock
The Company’s authorized common stock consists of
Treasury Stock
On March 2, 2022, our Board of Directors approved the repurchase by the Company of up to an aggregate of $
Note 11 – Stock-Based Compensation
A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the three months ended March 31, 2023 is as follows:
Weighted | Average | ||||||
Number of | Average | Remaining Life | |||||
| Options |
| Exercise Price |
| (years) | ||
Outstanding at December 31, 2022 |
| | $ | |
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Granted |
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Exercised |
| ( |
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Expired or Forfeited |
| ( |
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Outstanding at March 31, 2023 |
| | $ | |
|
The weighted average remaining contractual term for all options as of March 31, 2023 and December 31, 2022 was
As of March 31, 2023, there were
As of March 31, 2023, there were
The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. As of March 31, 2023, the Company had $
12
For the three months ended March 31, 2023 and 2022, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $
Note 12 – Long-Term Incentive Plan
On March 17, 2021, the Company granted options to purchase a total of
The fair value of option grants was calculated using a Monte Carlo simulation for the equity market capitalization tranches and the Black-Scholes-Merton option pricing method for the operational milestone tranches. As of March 31, 2023, we had $
The unvested remaining equity market and operational milestones under the LTIP with their total related option grants and criteria achievement weightings of the options available for meeting a target are shown in the following table. Of the total
Award Potential | Criteria Achievement Weighting | ||
Options Available | Equity Market | Last Twelve Months Revenue | Last Twelve Months EBITDA |
| $ | $ | |
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13
Note 13 – Litigation
We are not currently involved in any actual or pending legal proceedings or litigation that we consider to be material, and we are not aware of any such material proceedings contemplated by or against us or involving our property.
Note 14 – Right-of-Use Assets and Liabilities
Future lease payments under operating leases as of March 31, 2023 were as follows:
2023 | $ | | |
2024 |
| | |
2025 |
| | |
Total Future Lease Payments |
| | |
Less: Imputed Interest |
| ( | |
Total Lease Liability Balance | $ | |
Operating lease costs under the operating leases totaled $
As of March 31, 2023, the weighted average discount rate was
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion and analysis of financial condition and results of operations in conjunction with the financial statements and related notes appearing elsewhere in this quarterly report and in our Annual Report on Form 10-K for the year ended December 31, 2022.
As used in this report, unless otherwise indicated, the terms “Company,” “Vuzix”, “management,” “we,” “our,” and “us” refer to Vuzix Corporation.
Critical Accounting Policies and Significant Developments and Estimates
The discussion and analysis of our financial condition and results of operations is based upon our unaudited consolidated financial statements and related notes appearing elsewhere in this quarterly report. The preparation of these statements in conformity with GAAP requires the appropriate application of certain accounting policies, many of which require us to make estimates and assumptions about future events and their impact on amounts reported in our consolidated financial statements, including the statement of operations, balance sheet, cash flow and related notes. We continually evaluate our estimates used in the preparation of our financial statements, including those related to revenue recognition, bad debts, inventories, warranty reserves, product warranty, carrying value of long-lived assets, fair value measurement of financial instruments, valuation of stock compensation awards, achievement of equity market capitalization and probability of operational milestones being achieved under our LTIP, and income taxes. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not apparent from other sources. Since future events and their impact cannot be determined with certainty, the actual results will inevitably differ from our estimates. Such differences could be material to the consolidated financial statements.
We believe that our application of accounting policies, and the estimates inherently required therein, are reasonable. We periodically re-evaluate these accounting policies and estimates and make adjustments when facts and circumstances dictate a change. Historically, we have found our application of accounting policies to be appropriate, and actual results have not differed materially from those determined using such necessary estimates.
14
Management believes certain factors and trends are important in understanding our financial performance. The critical accounting policies, judgments and estimates that we believe have the most significant effect on our consolidated financial statements are:
● | Valuation of inventories; |
● | Variable Interest Entities; |
● | Business combinations; |
● | Carrying value of long-lived assets; |
● | Software development costs; |
● | Revenue recognition; |
● | Product warranty; |
● | Stock-based compensation; and |
● | Income taxes. |
Our accounting policies are more fully described in the notes to our consolidated financial statements included in this quarterly report and in our Annual Report on Form 10-K for the year ended December 31, 2022. There have been no significant changes in our accounting policies for the three months ended March 31, 2023.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have, or are reasonably likely to have, an effect on our financial condition, financial statements, revenues or expenses.
Business Matters
We are engaged in the design, manufacture, marketing and sale of wearable computing devices and augmented reality wearable display devices, also referred to as head mounted displays (or HMDs), heads-up displays (HUDs) or near-eye displays, in the form of Smart Glasses and Augmented Reality (AR) glasses. Our wearable display devices are worn like eyeglasses or attach to a head-worn mount. These devices typically include cameras, sensors, and a computer that enable the user to view, record and interact with video and digital content, such as computer data, the internet, social media or entertainment applications. Our wearable display products integrate display technology with our advanced optics to produce compact high-resolution display engines, less than half an inch diagonally, which when viewed through our Smart Glasses products create virtual images that appear comparable in size to that of a computer monitor or a large-screen television.
With respect to our Smart Glasses and AR products, we are focused on the enterprise, industrial, commercial, security, first responder, medical, and defense markets. We also provide custom solutions and engineering services to third parties, including OEMs, of waveguides to enable fully-integrated wearable display systems, including HMDs to commercial, industrial and defense customers. We do not offer “work-for-hire” services per se but rather offer our engineering services for projects that we expect could result in advancing our technology and potentially lead to long-term supply or OEM relationships.
All of the mobile displays and wearable and mobile electronics markets in which we compete, including mobile and wearable displays and electronics, have been and continue to be subject to consistent and rapid technological change, with ever greater capabilities and performance, including mobile devices with larger screen sizes and improved display resolutions as well as, in many cases, reductions in pricing for mobile devices. As a result, we must continue to
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improve our products’ performance and lower our costs. We believe our intellectual property portfolio gives us a leadership position in the design and manufacturing of micro-display projection engines, waveguides, mechanical packaging, ergonomics, and optical systems.
Recent Accounting Pronouncements
See Note 1 to the Unaudited Consolidated Financial Statements.
Results of Operations
Comparison of Three Months Ended March 31, 2023 and 2022
The following table compares the Company’s consolidated statements of operations data for the three months ended March 31, 2023 and 2022:
Three Months Ended March 31, |
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| Dollar |
| % Increase |
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2023 | 2022 | Change | (Decrease) |
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Sales: |
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Sales of Products | $ | 4,191,361 |
| $ | 2,503,051 |
| $ | 1,688,310 |
| 67 | % | |
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Cost of Sales: |
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Cost of Sales - Products |
| 3,082,439 |
| 1,803,598 |
| 1,278,841 |
| 71 | % | |||
Cost of Sales - Depreciation and Amortization |
| 232,916 |
| 223,785 |
| 9,131 |
| 4 | % | |||
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Total Cost of Sales |
| 3,315,355 |
| 2,027,383 |
| 1,287,972 |
| 64 | % | |||
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Gross Profit |
| 876,006 |
| 475,668 |
| 400,338 |
| 84 | % | |||
Gross Profit % |
| 21 | % | 19 | % |
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Operating Expenses: |
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Research and Development |
| 3,069,797 |
| 3,103,444 |
| (33,647) |
| (1) | % | |||
Selling and Marketing |
| 2,539,659 |
| 2,023,435 |
| 516,224 |
| 26 | % | |||
General and Administrative |
| 5,131,824 |
| 5,453,833 |
| (322,009) |
| (6) | % | |||
Depreciation and Amortization |
| 964,265 |
| 259,245 |
| 705,020 |
| 272 | % | |||
Impairment of Patents and Trademarks |
| 17,666 |
| 49,603 |
| (31,937) |
| (64) | % | |||
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Loss from Operations |
| (10,847,205) |
| (10,413,892) |
| (433,313) |
| 4 | % | |||
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Other Income (Expense): |
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Investment Income |
| 695,783 |
| 6,280 |
| 689,503 |