Quarterly report pursuant to Section 13 or 15(d)

Cost-Method Investment

Cost-Method Investment
9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Cost-Method Investment
Note 5 – Cost-Method Investment
The Company’s cost-method investments consist of the following:
September 30,
December 31,
Private Corporation
In the second quarter of 2018, the Company acquired, 
for a purchase price of $250,000,
approximately a 1% ownership interest, in the form of preferred stock, in a private 
corporation in the low vision near eye display market,
which the Company has
valued at cost. As part of this investment, the private 
and the Company entered into a non-binding memorandum of understanding, with the goal of assisting in the Company’s development and supply of Vuzix display systems for
the private corporation’s 
products. The Company expects to earn additional equity in the private corporation by being compensated for its work in kind and as a result could earn approximately a further 4% equity interest in this firm. This investment was recorded at cost as its fair value is not readily determinable. As of September 30, 2018, the investment is included in Long-Term Other Assets.