Intangible Asset, Net
|3 Months Ended|
Mar. 31, 2019
|Disclosure of Intangible Asset Net [Abstract]|
|Intangible Asset, Net||
Note 5 – Intangible Asset, Net
On October 4, 2018, the Company entered into amendment No. 1 to the original agreements (the “TDG Amendment”) with TDG Acquisition Company, LLC (“TDG”), aka Six15 Technologies, LLC. The TDG Amendment amends certain provisions of prior agreements between Vuzix and TDG, including an asset purchase agreement dated June 15, 2012, and an authorized reseller agreement dated June 15, 2012.
Pursuant to the TDG Amendment, the Company will be permitted to engage in sales of heads-up display components or subsystems (and any services to support such sale) for incorporation into a finished goods or systems for sale to military organizations, subject to certain conditions. The Company will also be permitted to sell its products to defense and security organizations that include business customers and governmental entity customers that primarily provide security and defense services, including police, fire fighters, EMTs, other first responders, and homeland and border security. The Company will owe TDG commissions with respect to all such sales until June 2022.
This reacquired right covers the entire remaining term of the original non-compete agreement with TDG, which expires
June 15, 2022
. The capitalized cost of this reacquired right is being amortized
over 44 months, which began in
. Total amortization expense for this intangible asset for the three months ended
March 31, 2019
was $102,000. As of
March 31, 2019
final payment due under the terms of this agreement.
, there was $in accrued current liabilities for the
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef