Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 02, 2022 | Jun. 30, 2021 | |
Document and Entity Information | |||
Document Type | 10-K/A | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-35955 | ||
Entity Registrant Name | Vuzix Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Central Index Key | 0001463972 | ||
Entity Tax Identification Number | 04-3392453 | ||
Entity Address, Address Line One | 25 Hendrix Road | ||
Entity Address, City or Town | West Henrietta | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 14586 | ||
City Area Code | 585 | ||
Local Phone Number | 359-5900 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | VUZI | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 1,082,000,000 | ||
Entity Common Stock, Shares Outstanding | 63,672,268 | ||
Auditor Name | Freed Maxick CPAs, P.C. | ||
Auditor Firm ID | 317 | ||
Auditor Location | Buffalo, New York | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | true | ||
Amendment Description | EXPLANATORY NOTE. This Amendment No. 1 on Form 10-K/A to the Annual Report of Vuzix Corporation (the "Company", "its", "we," "our," or us") for the fiscal year ended December 31, 2021, filed with the Securities and Exchange Commission on March 2, 2022 (the "Original Form 10-K"), is being filed, in connection with comments received from the staff of the Securities and Exchange Commission, for the purpose of expanding upon the level of detail provided on our previously issued Form 10-Q's for 2021 as it relates to a correction of an error that affected the Company's 2021 Quarterly Reports. As further described in Note 2 of this Form 10-K/A, the Company's management and the audit committee of the Company's Board of Directors concluded that due to a correction of an error that was discovered just before our filing of the Original Form 10-K/A, the previously issued unaudited financial statements and other financial information contained in the Company's Quarterly Reports on Forms 10-Q for the fiscal periods ended March 31, 2021, June 30, 2021 and September 30, 2021, and the Company's earnings releases and other financial communications for these periods should no longer be relied upon. The unaudited interim financial information for the periods ended March 31, 2021, June 30, 2021, and September 30, 2021 are restated in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021. We are filing this Amendment No. 1 to amend the 2021 Form 10-K with modification as necessary to further describe the restatements that affected the unaudited interim financial information for the periods ended March 31, 2021, June 30, 2021 and September 30, 2021. The following items have been amended to reflect the restatements:Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, Part II, Item 8. Financial Statements and Supplementary Data. In addition, the Company's Chief Executive Officer and Chief Financial Officer have provided new certifications dated as of the date of this filing in connection with this Form 10-K/A (Exhibits 31.1, 31.2, 32.1 and 32.2). Except as described above, this Form 10-K/A does not modify or update the disclosures in, or exhibits to, the Original Form 10-K, and such disclosures in, or exhibits to, the Original Form 10-K remain unchanged and speak as of the date of the filing of the Original Form 10-K, except that new certifications are being filed herewith. In particular, this Form 10-K/A does not modify the Company's consolidated financial results for the periods presented in the Original Form 10-K. |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and Cash Equivalents | $ 120,203,873 | $ 36,069,508 |
Accounts Receivable | 2,242,429 | 1,388,882 |
Inventories, Net | 12,151,982 | 6,100,824 |
Licenses, Net | 272,444 | |
Manufacturing Vendor Prepayments | 504,051 | 485,032 |
Prepaid Expenses and Other Assets | 2,047,819 | 738,561 |
Total Current Assets | 137,150,154 | 45,055,251 |
Long-Term Assets | ||
Fixed Assets, Net | 5,190,438 | 2,837,402 |
Operating Lease Right-of-Use Asset | 1,117,022 | 1,517,306 |
Patents and Trademarks, Net | 1,988,370 | 1,593,049 |
Licenses, Net | 1,389,936 | 193,687 |
Intangible Asset, Net | 147,548 | 566,456 |
Other Assets, Net | 1,483,589 | 708,333 |
Total Assets | 148,467,057 | 52,471,484 |
Current Liabilities | ||
Accounts Payable | 2,054,762 | 1,517,155 |
Unearned Revenue | 27,797 | 41,152 |
Accrued Expenses | 1,419,308 | 983,033 |
Income and Other Taxes Payable | 120,242 | 109,653 |
Operating Lease Right-of-Use Liability | 534,146 | 444,495 |
Total Current Liabilities | 4,156,255 | 3,095,488 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 582,876 | 1,072,811 |
Total Liabilities | 4,739,131 | 4,168,299 |
Stockholders' Equity | ||
Preferred Stock - $0.001 Par Value, 5,000,000 Shares Authorized; zero and 49,626 Shares Issued and Outstanding as of December 31, 2021 and December 31, 2020. | 50 | |
Common Stock - $0.001 Par Value, 100,000,000 Shares Authorized; 63,672,268 and 45,645,166 Shares Issued and Outstanding as of December 31, 2021 and December 31, 2020. | 63,672 | 45,645 |
Additional Paid-in Capital | 346,736,397 | 210,952,473 |
Accumulated Deficit | (203,072,143) | (162,694,983) |
Total Stockholders' Equity | 143,727,926 | 48,303,185 |
Total Liabilities and Stockholders' Equity | $ 148,467,057 | $ 52,471,484 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 49,626 |
Preferred Stock, Shares Outstanding | 0 | 49,626 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 63,672,268 | 45,645,166 |
Common Stock, Shares Outstanding | 63,672,268 | 45,645,166 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2018 | $ 50 | $ 27,591 | $ 148,695,775 | $ (118,266,441) | $ 30,456,975 |
Balance (in shares) at Dec. 31, 2018 | 49,626 | 27,591,670 | |||
Stock-Based Compensation Expense | $ 58 | 1,404,773 | 1,404,831 | ||
Stock-Based Compensation Expense (in shares) | 57,496 | ||||
Proceeds from Common Stock Offerings | $ 5,479 | 19,994,528 | 20,000,007 | ||
Proceeds from Common Stock Offerings (in shares) | 5,479,454 | ||||
Direct Costs of Common Stock Offerings | (1,145,000) | (1,145,000) | |||
Net Loss | (26,476,370) | (26,476,370) | |||
Balance at Dec. 31, 2019 | $ 50 | $ 33,128 | 168,950,076 | (144,742,811) | 24,240,443 |
Balance (in shares) at Dec. 31, 2019 | 49,626 | 33,128,620 | |||
Stock-Based Compensation Expense | $ 943 | 2,656,888 | 2,657,831 | ||
Stock-Based Compensation Expense (in shares) | 942,986 | ||||
Stock Option Exercises | $ 44 | 29,176 | 29,220 | ||
Stock Option Exercises (in shares) | 43,854 | ||||
Stock Warrant Exercises | $ 2,883 | 14,125,644 | 14,128,527 | ||
Stock Warrant Exercises (in shares) | 2,882,647 | ||||
Proceeds from Common Stock Offerings | $ 8,647 | 26,741,355 | 26,750,002 | ||
Proceeds from Common Stock Offerings (in shares) | 8,647,059 | ||||
Direct Costs of Common Stock Offerings | (1,550,666) | (1,550,666) | |||
Net Loss | (17,952,172) | (17,952,172) | |||
Balance at Dec. 31, 2020 | $ 50 | $ 45,645 | 210,952,473 | (162,694,983) | 48,303,185 |
Balance (in shares) at Dec. 31, 2020 | 49,626 | 45,645,166 | |||
Stock-Based Compensation Expense | $ 368 | 18,429,556 | 18,429,924 | ||
Stock-Based Compensation Expense (in shares) | 368,047 | ||||
Stock Option Exercises | $ 659 | 781,618 | 782,277 | ||
Stock Option Exercises (in shares) | 659,398 | ||||
Stock Warrant Exercises | $ 7,277 | 34,708,451 | 34,715,728 | ||
Stock Warrant Exercises (in shares) | 7,276,928 | ||||
Proceeds from Common Stock Offerings | $ 4,768 | 97,745,239 | 97,750,007 | ||
Proceeds from Common Stock Offerings (in shares) | 4,768,293 | ||||
Direct Costs of Common Stock Offerings | (6,136,420) | (6,136,420) | |||
Shares Redeemed to Cover Employee Tax Withholdings | $ (83) | (1,144,282) | (1,144,365) | ||
Shares Redeemed to Cover Employee Tax Withholdings (in shares) | (83,164) | ||||
Stock Issued for Technology License Purchase | $ 75 | 1,404,675 | 1,404,750 | ||
Stock Issued for Technology License Purchase (in shares) | 75,000 | ||||
Preferred Stock Converted | $ (50) | $ 4,963 | (10,004,913) | (10,000,000) | |
Preferred Stock Converted (in shares) | (49,626) | 4,962,600 | |||
Net Loss | (40,377,160) | (40,377,160) | |||
Balance at Dec. 31, 2021 | $ 63,672 | $ 346,736,397 | $ (203,072,143) | $ 143,727,926 | |
Balance (in shares) at Dec. 31, 2021 | 63,672,268 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sales: | |||
Total Sales | $ 13,164,933 | $ 11,581,496 | $ 6,670,604 |
Cost of Sales: | |||
Total Cost of Sales | 10,714,088 | 9,653,887 | 11,078,725 |
Gross Profit (Loss) (exclusive of depreciation shown separately below) | 2,450,845 | 1,927,609 | (4,408,121) |
Operating Expenses: | |||
Research and Development | 11,674,954 | 7,568,074 | 8,900,837 |
Selling and Marketing | 6,118,929 | 4,039,772 | 4,215,611 |
General and Administrative | 22,502,833 | 6,915,213 | 6,600,092 |
Depreciation and Amortization | 1,870,459 | 2,458,482 | 2,441,581 |
Loss on Fixed Asset Disposal | 183,614 | 0 | 0 |
Impairment of Patents and Trademarks | 80,163 | 73,532 | |
Total Operating Expenses | 42,430,952 | 21,055,073 | 22,158,121 |
Loss From Operations | (39,980,107) | (19,127,464) | (26,566,242) |
Other Income (Expense): | |||
Investment Income | 53,511 | 41,120 | 252,416 |
Income and Other Taxes | (307,368) | (103,833) | (110,269) |
Foreign Exchange Loss | (143,196) | (67,895) | (52,275) |
Gain on Debt Extinguishment, net of Loss on Note Receivable | 1,305,900 | ||
Total Other Income (Expense), Net | (397,053) | 1,175,292 | 89,872 |
Loss Before Provision for Income Taxes | (40,377,160) | (17,952,172) | (26,476,370) |
Provision for Income Taxes | |||
Net Loss | (40,377,160) | (17,952,172) | (26,476,370) |
Preferred Stock Dividends - Accrued not Paid | (2,056,150) | (1,931,860) | |
Loss Attributable to Common Stockholders | $ (40,377,160) | $ (20,008,322) | $ (28,408,230) |
Basic Loss per Common Share | $ (0.66) | $ (0.53) | $ (0.94) |
Diluted Loss per Common Share | $ (0.66) | $ (0.53) | $ (0.94) |
Weighted-average Shares Outstanding - Basic | 61,125,215 | 38,109,765 | 30,348,452 |
Weighted-average Shares Outstanding - Diluted | 61,125,215 | 38,109,765 | 30,348,452 |
Sales of Products | |||
Sales: | |||
Total Sales | $ 12,784,600 | $ 10,081,209 | $ 5,997,453 |
Cost of Sales: | |||
Cost of Sales | 10,148,380 | 8,098,014 | 6,334,333 |
Inventory Reserve for Obsolescence | |||
Cost of Sales: | |||
Cost of Sales | 519,950 | 1,273,835 | 4,572,659 |
Sales of Engineering Services | |||
Sales: | |||
Total Sales | 380,333 | 1,500,287 | 673,151 |
Cost of Sales: | |||
Cost of Sales | $ 45,758 | $ 282,038 | $ 171,733 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | |||
Net Loss | $ (40,377,160) | $ (17,952,172) | $ (26,476,370) |
Non-Cash Adjustments | |||
Depreciation and Amortization | 1,870,459 | 2,458,482 | 2,441,581 |
Amortization of Software Development Costs and Prepaid Licenses in Cost of Sales - Products | 439,112 | 183,328 | 100,000 |
Stock-Based Compensation | 17,302,833 | 2,805,842 | 1,498,357 |
Impairment of Patents and Trademarks | 80,163 | 73,532 | |
Loss on Fixed Asset Disposal | 183,614 | 0 | 0 |
Gain on Debt Extinguishment, net of Loss on Note Receivable | (1,305,900) | ||
Inventory Reserve for Obsolescence | 519,950 | 1,273,835 | 4,572,659 |
(Increase) Decrease in Operating Assets | |||
Accounts Receivable | (853,547) | (289,413) | (599,577) |
Inventories | (6,571,108) | (1,666,792) | (2,998,724) |
Manufacturing Vendor Prepayments | (19,019) | (242,493) | 512,680 |
Prepaid Expenses and Other Assets | (526,825) | 156,537 | 414,997 |
Increase (Decrease) in Operating Liabilities | |||
Accounts Payable | 537,607 | 454,370 | (1,605,456) |
Accrued Expenses | 436,276 | 97,136 | 21,819 |
Customer Deposits | (152,362) | ||
Unearned Revenue | (13,355) | (101,311) | (69,263) |
Income and Other Taxes | 10,589 | 90,966 | (15,361) |
Net Cash Flows Used in Operating Activities | (26,980,411) | (13,964,053) | (22,355,020) |
Cash Flows from Investing Activities | |||
Purchases of Fixed Assets | (3,809,268) | (496,629) | (1,898,771) |
Investments in Patents and Trademarks | (593,184) | (488,884) | (250,304) |
Investments in Licenses, Intangible and Other Assets | (450,000) | (758,464) | |
Notes Receivable | (250,000) | ||
Investments in Software Development | (500,000) | ||
Net Cash Flows Used in Investing Activities | (4,852,452) | (1,485,513) | (3,157,539) |
Cash Flows from Financing Activities | |||
Proceeds from Exercise of Warrants | 34,715,728 | 14,128,527 | |
Proceeds from Exercise of Stock Options | 782,277 | 29,220 | |
Proceeds from Common Stock Offering, Net | 91,613,587 | 25,199,336 | 18,855,007 |
Preferred Dividend Settlement Payment | (10,000,000) | ||
Employee Tax Withholdings Payment | (1,144,364) | ||
Proceeds from Term Note | 1,555,900 | ||
Net Cash Flows Provided from Financing Activities | 115,967,228 | 40,912,983 | 18,855,007 |
Net Increase in Cash and Cash Equivalents | 84,134,365 | 25,463,417 | (6,657,552) |
Cash and Cash Equivalents - Beginning of Period | 36,069,508 | 10,606,091 | 17,263,643 |
Cash and Cash Equivalents - End of Period | 120,203,873 | 36,069,508 | 10,606,091 |
Supplemental Disclosures | |||
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | 1,365,242 | 219,051 | 83,475 |
Non-Cash Investment in Licenses | 1,294,262 | 272,444 | |
Stock-Based Compensation Expense - Expensed less Previously Issued | $ (1,127,091) | $ 148,011 | $ 93,587 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | VUZIX CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 — Summary of Significant Accounting Policies Operations Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in West Henrietta, New York (a suburb of Rochester). We are engaged in the design, manufacture, marketing and sale of augmented reality wearable display and computing devices also referred to as head mounted displays (or HMDs, but also known as near-eye displays), in the form of Smart Glasses and Augmented Reality (AR) glasses. Our AR 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 micro-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. The wearable display products we produce can be used for a variety of enterprise, commercial and medical uses and applications, including AR for on-the-go users and as mobile displays and remote service support. Our products are available with varying features and are offered as monocular and binocular display systems. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned UK subsidiary, Vuzix (Europe) Limited. All significant inter-company transactions have been eliminated. Segment Data, Geographic Information and Significant Customers The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 19 — Geographic and Other Financial Information (Unaudited). Foreign Currency Transactions The Company considers the US dollar as the functional currency of the Company’s UK Subsidiary. The Company’s UK Subsidiary transacts in Euros and British pounds. All transactions in foreign currencies are recorded in US dollars at the then current exchange rate(s). Upon settlement of the underlying transaction, all amounts are re-measured to US dollars at the current exchange rate on date of settlement. All unsettled foreign currency transactions that remain in accounts receivable and trade account payables are re-measured to US dollars at the period end exchange rates. All re-measurement gains and losses are recorded in the current period net income. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Cash and Cash Equivalents Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, unearned revenue, accrued expenses, and income taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. Accounts Receivable The Company carries its trade accounts receivable at the invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at-risk receivables. The allowance for doubtful accounts as of December 31, 2021, 2020 and 2019 was nil. The Company does not accrue interest on any past due accounts receivable unless such receivable goes into collection. Customer and Supplier Concentrations One customer represented 10% of total product revenue and four customers represented 39%, 28%, 16% and 12%, respectively, of our engineering services revenue for the year ended December 31, 2021. No one customer represented more than 10% of total product revenue and two customers represented 48% and 26%, respectively, of our engineering services revenue for the year ended December 31, 2020. One customer represented 16% of total product revenue and one customer represented 100% of engineering services revenue for the year ended December 31, 2019 Three customers represented 27%, 20% and 10%, respectively, of accounts receivable at December 31, 2021. Two customers represented 21% and 14%, respectively, of accounts receivable at December 31, 2020. Three customers represented 32%, 26% and 13%, respectively, of accounts receivable at December 31, 2019. Two third-party vendors represented 38% and 24%, respectively, of material purchases for the year ended December 31, 2021. As of December 31, 2021, the net amount due to these vendors was $504,073. Accrued Project Revenue The Company carries accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project less amounts invoiced, if any. As of December 31, 2021, 2020 and 2019, we had nil in accrued project revenue. Inventories Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. Revenue Recognition The Company adopted the new guidance on Revenue from Contracts with Customers under FASB ASC Topic 606, "Revenue from Contracts with Customers", as of January 1, 2018. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales as performance obligations are satisfied and transfer of control and ownership to the customer has occurred, typically upon physical shipment. Revenue is recognized in the amount that the Company expects to receive in exchange from the sale of our products. FOB shipping point is our standard shipping term and revenue is recognized as our products ship to customers, as control and ownership are transferred at this point in time. All of our standard product sales include a 30-day money back guarantee and expected returns are estimated at each reporting period date and a portion of revenue is deferred for all estimated returns. As of December 31, 2021 and 2020, deferred revenue associated with our expected returns were immaterial. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. Unearned Revenue These amounts represent deferred revenue against our expected product sales returns for all December 2021 products sales that are subject to the Company’s 30-day money back guarantee return policy. Cost of Product Sales Cost of product sales includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing facility and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. Depreciation on manufacturing tools and equipment is included in Operating Expenses in our consolidated statement of operations. The cost of product sales can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct cost of materials. Cost of Engineering Services Sales Cost of engineering services revenues includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in performing under the contract. Direct costs also include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of engineering sales is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. Fixed Assets Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. Patents and Trademarks The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. Ongoing maintenance and legal fees for issued patents and trademarks are expensed as incurred. Software Development Costs The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management or of purchased software solutions when placed into service. Such costs are accumulated and capitalized. Projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period when the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of product sales over the estimated life of the products, which currently is estimated as three years using a straight-line basis. As of December 31, 2021, 2020 and 2019, we had $541,666, $458,333 and $100,000, respectively, of net software development costs included in Other Assets. For the years ended December 31, 2021, 2020 and 2019, there was nil in impairment of software development costs. Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the life of the license. In some cases, future royalties are subject to annual limits. Long-Lived Assets The Company at least annually assesses all of its long-lived assets for impairment and when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” For the years ended December 31, 2021 and 2020, there was an impairment charge of $80,163 and $73,532, respectively, to Patents and Trademarks and nil in 2019. For the year ended December 31, 2021, we recorded a loss on fixed asset disposal of $183,614 upon the retirement of certain tooling and manufacturing equipment assets no longer in use. No loss on fixed asset disposal charges on tooling and equipment were recorded in 2020 or 2019. Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third-party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. Provision for Future Warranty Costs The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based upon historical experience of warranty claims and costs. Advertising Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2021, 2020 and 2019 was $1,263,897, $974,461 and $1,302,120, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. Net Loss Per Share Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2021, 2020 and 2019, all outstanding instruments would be antidilutive. As of December 31, 2021, 2020 and 2019, there were 8,606,062, 14,872,703 and 12,858,707 common stock share equivalents, respectively, that were potentially issuable under stock options, conversion of preferred shares (excluding accrued dividends), and stock warrants that could potentially dilute basic earnings per share in the future. Stock-Based Compensation Expense The Company accounts for stock-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation - Stock Compensation,” which requires that compensation expense be recognized in the consolidated financial statements for stock-based awards based on the grant date fair value. For stock option awards, the Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. For common stock awards, the Company uses the fair market value of our common stock on the date of each stock-based award based on the market price of the Company’s common shares and the expense related to these awards is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock awards and stock option grants for the years ended December 31, 2021, 2020 and 2019 was $4,047,444, $2,805,842 and $1,498,357, respectively, excluding awards under the Company’s Long-term Incentive Plan (LTIP). The Company issues new shares upon stock option exercises. For stock options awarded under the Company's LTIP, options vest only upon the achievement of certain equity market conditions or performance-based milestones. The fair value of options granted under this program were calculated by using a Monte Carlo simulation for the equity market condition tranches and the Black-Scholes-Merton option pricing method on the performance-based tranches. Stock-based compensation expense associated with the Company's LTIP for the year ended December 31, 2021 was $13,255,388 and nil for the years ended December 31, 2020 and 2019. Leases The Company determines if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Historically, non-lease components such as utilities have been immaterial. Payments under our lease arrangements are primarily fixed. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of December 31, 2021, all of our leases are considered operating leases. Operating lease right-of-use assets and liabilities were included on our Consolidated Balance Sheets beginning January 1, 2019. The Company does not have any finance leases as of December 31, 2021. 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. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company is currently evaluating the guidance and its impact to the financial statements. |
Restatement of Previously Issue
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements | |
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements | Note 2 – Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements During the fourth quarter of 2021 and just before the original 10-K was filed, the Company reviewed its estimate for future expenses related to its Long-Term Incentive Plan for the potential achievement of market capitalization awards, which resulted in increased fair market values on this portion of the new LTIP, first put into place in March 2021. The Company’s Audit Committee concluded, on March 1, 2022, that previously issued unaudited financial statements for all quarterly periods previously filed on Form 10-Q for 2021 should no longer be relied upon. The Audit Committee discussed this matter with the Company’s independent accountant. As a result, the total fair market value under of the market capitalization awards at that time of grant increased to approximately $33.6 million from $12.1 million as of March 31, 2021. This change was a result of management’s determination that the initial fair market value model’s inputs that were utilized were ultimately considered unacceptable according to U.S. GAAP guidance and as a result were revised by management and subsequently updated in its current model for determining the fair market of these market capitalization awards. This error correction was made in the fourth quarter of 2021. The Company’s previously filed unaudited quarterly financial statements for the first three quarters of 2021 filed under Forms 10-Q were affected by the correction of this error. The quarterly periods ending March 31, 2021, June 30, 2021, and September 2021 were restated in the Company’s Annual Form 10-K. Impact of the Restatements The impact of the restatement on the unaudited consolidated balance sheets, statements of changes in stockholders’ equity, statements of operations and statements of cash flows for the 2021 affected quarterly periods is presented below. The change in the amount of stock-based compensation expenses related to the LTIP resulted in the correction of an error in accumulated deficit and additional paid-in capital. The impact of the restatement to the Consolidated Balance Sheets for the three quarters is as follows: March 31, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 316,208,276 $ 2,512,007 $ 318,720,283 Accumulated deficit $ (169,334,346) $ (2,512,007) $ (171,846,353) June 30, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 333,792,844 $ 2,978,022 $ 336,770,866 Accumulated deficit $ (178,113,803) $ (2,978,022) $ (181,091,825) September 30, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 337,125,126 $ 5,519,504 $ 342,644,630 Accumulated deficit $ (186,059,869) $ (5,519,504) $ (191,579,373) The Company’s statements of stockholders’ equity has been restated to reflect the changes to the impacted stockholders’ equity accounts described above: For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 2,047,378 $ 2,512,007 $ 4,559,385 Additional Paid-In Capital 316,208,276 2,512,007 318,720,283 Net Loss (6,639,363) (2,512,007) (9,151,370) Accumulated Deficit $ (169,334,346) $ (2,512,007) $ (171,846,353) For the Six Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 5,566,124 $ 2,978,022 $ 8,544,146 Additional Paid-In Capital 333,792,844 2,978,022 336,770,866 Net Loss (15,418,820) (2,978,022) (18,396,842) Accumulated Deficit $ (178,113,803) $ (2,978,022) $ (181,091,825) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 8,858,814 $ 5,519,504 $ 14,378,318 Additional Paid-In Capital 337,125,126 5,519,504 342,644,630 Net Loss (23,364,886) (5,519,504) (28,884,390) Accumulated Deficit $ (186,059,869) $ (5,519,504) $ (191,579,373) The impact of the restatement to the previously reported quarterly Consolidated Statements of Operations for each of the quarters ended in 2021 is presented below: For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 3,915,389 $ — $ 3,915,389 Total Cost of Sales 2,835,798 — 2,835,798 Gross Profit (exclusive of depreciation shown separately below) 1,079,591 — 1,079,591 Operating Expenses: Research and Development 2,079,927 125,391 2,205,318 Selling and Marketing 1,240,734 62,696 1,303,430 General and Administrative 3,703,837 2,323,920 6,027,757 Depreciation and Amortization 517,412 — 517,412 Loss on Fixed Asset Disposal 83,908 — 83,908 Impairment of Patents and Trademarks 27,731 — 27,731 Total Operating Expenses 7,653,549 2,512,007 10,165,556 Loss From Operations (6,573,958) (2,512,007) (9,085,965) Total Other Expense (65,405) — (65,405) Net Loss $ (6,639,363) $ (2,512,007) $ (9,151,370) Basic and Diluted Loss per Common Share $ (0.12) $ (0.05) $ (0.17) For the Three Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 2,916,538 $ — $ 2,916,538 Total Cost of Sales 2,337,166 — 2,337,166 Gross Profit (exclusive of depreciation shown separately below) 579,372 — 579,372 Operating Expenses: Research and Development 2,700,732 23,262 2,723,994 Selling and Marketing 1,337,558 11,631 1,349,189 General and Administrative 4,749,920 431,122 5,181,042 Depreciation and Amortization 501,678 — 501,678 Loss on Fixed Asset Disposal — — — Impairment of Patents and Trademarks 30,765 — 30,765 Total Operating Expenses 9,320,653 466,015 9,786,668 Loss From Operations (8,741,281) (466,015) (9,207,296) Total Other Expense (38,176) — (38,176) Net Loss $ (8,779,457) $ (466,015) $ (9,245,472) Basic and Diluted Loss per Common Share $ (0.14) $ (0.01) $ (0.15) For the Three Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 3,018,774 $ — $ 3,018,774 Total Cost of Sales 2,435,437 — 2,435,437 Gross Profit (exclusive of depreciation shown separately below) 583,337 — 583,337 Operating Expenses: Research and Development 3,270,255 126,863 3,397,118 Selling and Marketing 1,589,582 63,431 1,653,013 General and Administrative 3,112,059 2,351,188 5,463,247 Depreciation and Amortization 434,277 — 434,277 Loss on Fixed Asset Disposal — — — Impairment of Patents and Trademarks 7,544 — 7,544 Total Operating Expenses 8,413,717 2,541,482 10,955,199 Loss From Operations (7,830,380) (2,541,482) (10,371,862) Total Other Expense (115,686) — (115,686) Net Loss $ (7,946,066) $ (2,541,482) $ (10,487,548) Basic and Diluted Loss per Common Share $ (0.13) $ (0.04) $ (0.17) The impact of the restatement to the previously reported quarterly Consolidated Statements of Cash Flows in 2021 is presented below: For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (6,639,363) $ (2,512,007) $ (9,151,370) Stock-Based Compensation 2,106,206 2,512,007 4,618,213 Net Cash Flows Used in Operating Activities $ (5,921,629) $ — $ (5,921,629) For the Six Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (15,418,820) $ (2,978,022) $ (18,396,842) Stock-Based Compensation 5,683,591 2,978,022 8,661,613 Net Cash Flows Used in Operating Activities $ (13,108,703) $ — $ (13,108,703) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (23,364,886) $ (5,519,504) $ (28,884,390) Stock-Based Compensation 7,311,278 5,519,504 12,830,782 Net Cash Flows Used in Operating Activities $ (18,909,428) $ — $ (18,909,428) |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | Note 3 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of four major product lines: Smart Glasses, OEM Product Sales, Waveguide and Display Engine Sales, and Engineering Services. The following table summarizes the revenue recognized by major product line: For the Years Ended December 31, 2021 2020 2019 Revenues Smart Glasses Sales $ 12,784,600 $ 10,081,209 $ 4,893,384 OEM Product Sales — — 951,570 Waveguide and Display Engine Sales — — 152,499 Engineering Services 380,333 1,500,287 673,151 Total Revenue $ 13,164,933 $ 11,581,496 $ 6,670,604 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. Our standard product sales include a twelve eighteen twelve twelve As of December 31, 2021 and 2020, there was no outstanding performance obligations remaining for extended warranties. The following table presents a summary of the Company’s net sales by revenue recognition method as a percentage of total net sales: For the Years Ended December 31, 2021 2020 2019 Point-in-Time 97 % 87 % 90 % Over Time – Input Method 3 % 13 % 10 % Total 100 % 100 % 100 % Remaining Performance Obligations As of December 31, 2021, the Company had no outstanding performance obligations under its engineering services and waveguide development projects, as all projects were completed and delivered in 2021. In addition, the Company had no material outstanding performance obligations related to product sales, other than its standard product warranty. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventories, Net | |
Inventories, Net | Note 4 — Inventories, Net Inventories consisted of the following: December 31, December 31, 2021 2020 Purchased Parts and Components $ 11,580,766 $ 5,252,709 Work-in-Process 226,126 1,381,677 Finished Goods 1,472,534 3,352,057 Less: Reserve for Obsolescence (1,127,444) (3,885,619) Inventories, Net $ 12,151,982 $ 6,100,824 In addition to its normal Reserve for Obsolescence provision, the Company reserved for (i) an additional twenty-five percent of its remaining M300XL finished goods and related accessory inventory on-hand as of December 31, 2021 and (ii) all of its Blade 1.5 excess components that will not be used in current planned builds of the Blade 1.5 and the new Blade 2.0 in 2022, due to end-of-life availability of some required components. The total reserve write-down recorded at December 31, 2021 was $519,950. The write-down and obsolescence provision for finished goods and components totaled $1,273,835 and $4,572,659 for the years ended December 31, 2020 and 2019, respectively. These provisions were included in Cost of Sales on the Consolidated Statements of Operations. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Fixed Assets, Net | |
Fixed Assets, Net | Note 5 — Fixed Assets, Net Fixed Assets consisted of the following: December 31, December 31, 2021 2020 Tooling and Manufacturing Equipment $ 6,612,811 $ 5,494,491 Leaseholds 797,059 773,734 Computers and Purchased Software 980,561 798,881 Furniture and Equipment 2,661,346 2,134,788 11,051,777 9,201,894 Less: Accumulated Depreciation (5,861,339) (6,364,492) Fixed Assets, Net $ 5,190,438 $ 2,837,402 Total depreciation expense for fixed assets for the years ended December 31, 2021, 2020 and 2019 was $1,306,479, $1,904,282 and $1,913,409, respectively. |
Patents and Trademarks, Net
Patents and Trademarks, Net | 12 Months Ended |
Dec. 31, 2021 | |
Patents and Trademarks, Net | |
Patents and Trademarks, Net | Note 6 — Patents and Trademarks, Net December 31, December 31, 2021 2020 Patents and Trademarks $ 2,854,521 $ 2,330,720 Less: Accumulated Amortization (866,151) (737,671) Patents and Trademarks, Net $ 1,988,370 $ 1,593,049 Total amortization expense for patents and trademarks for the years ended December 31, 2021, 2020 and 2019 was $145,072, $130,656 and $120,172, respectively. The estimated aggregate annual amortization expense for each of the next five fiscal years |
Licenses, Net
Licenses, Net | 12 Months Ended |
Dec. 31, 2021 | |
Licenses, Net | |
Licenses, Net | Note 7 — Licenses, Net December 31, December 31, 2021 2020 Licenses $ 1,038,606 $ 493,717 Additions 1,404,750 544,889 Less: Accumulated Amortization / Expensed (1,053,420) (572,475) 1,389,936 466,131 Less: Current Portion — (272,444) Licenses, Net $ 1,389,936 $ 193,687 The Company acquired two licenses in 2017. The first related to the renegotiation of an existing license at a cost of $114,967, which resulted in lower royalty rates being paid by the Company over the next 10 years. This license went into effect as of January 1, 2018. The second license was a result of the Company entering into a Technology Purchase and Royalty Agreement where it acquired all the seller’s right, title and interest in certain Transferred Intellectual Property (IP). Pursuant to the agreement, the Company paid approximately $75,702 as reimbursement of related patent application costs incurred by the seller to date, which are included in Patents and Trademarks. The Company also issued 25,000 shares of common stock, valued at $128,750, upon the original closing in October 2017 and agreed to certain further issuances of 75,000 shares based upon the achievement of certain development milestones as well as per unit royalties once the technology was commercialized for the life of the related patents. In June 2021, the Company assumed or purchased outright the obligations for ongoing royalties under the original license agreement and certain other intellectual property rights in connection with consulting services by the original seller in exchange for the issuance of 75,000 shares with an assigned market value of $18.73 per share or a total of $1,404,750. The underlying technology is not yet ready for commercialization, but the Company intends to proceed with further research and development work relating to such underlying technology. Total amortization expense related to licenses in the years ended December 31, 2021, 2020 and 2019 was $480,945, $393,174, and $122,704, respectively. |
Intangible Asset, Net
Intangible Asset, Net | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Asset, Net | |
Intangible Asset, Net | Note 8 — Intangible Asset, Net December 31, December 31, 2021 2020 Intangible Asset $ 1,500,000 $ 1,500,000 Less: Accumulated Amortization (1,352,452) (933,544) Intangible Asset, Net $ 147,548 $ 566,456 On October 4, 2018, the Company entered into amendment No. 1 to 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 is permitted to engage in sales of heads-up display components or subsystems (and any services to support such sale) for incorporation into a finished good or system for sale to military organizations, subject to certain conditions. The Company is also 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 15, 2022, when the amendment and original non-compete agreements expire, after which the Company will be permitted to sell any product to any customer world-wide without owing any commission to TDG. Total commissions expense under this agreement for the years ended December 31, 2021, 2020 and 2019 was $70,860, $243,273 and $116,469, respectively. Total amortization expense for this intangible asset for the years ended December 31, 2021, 2020 and 2019 was $418,908, $423,544 and $408,000, respectively. Future monthly amortization expense for the next 5 months is approximately $30,000 per month. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Other Assets | Note 9 – Other Assets The Company’s other assets consists of the following: December 31, December 31, 2021 2020 Private Corporation Investments $ 450,000 $ 250,000 Software Development Costs 750,000 500,000 Less: Accumulated Amortization (208,334) (41,667) Software Development Costs, Net 541,666 458,333 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 491,923 — Total Other Assets $ 1,483,589 $ 708,333 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. In the first quarter of 2021, the Company acquired, for a purchase price of $200,000, approximately a 3% ownership interest, in the form of preferred stock, in a private corporation developing smart glasses software for use by retailers in their stock keeping. These investments were recorded at cost as its fair value is not readily determinable. The Company has reviewed these investments and concluded that there were no indicators of impairment or unrealized gain present as of December 31, 2021. During 2020, the Company invested $500,000 in Android operating systems upgrades for its CPU platform used on its M400 and M4000 products. This upgrade was finished and placed into service in the beginning of the fourth quarter of 2020. This capitalized asset will be amortized on a straight-line over its expected product life cycle of 36 months, which began on October 1, 2020. In October 2021, the Company invested $250,000 for further Android operating systems version upgrades to the CPU platform it uses on its M400 and M4000 products. This development work has not yet been completed and will ultimately be amortized once placed into service which is expected by early 2023. Total amortization expense for capitalized software development costs for the years ended December 31, 2021, 2020 and 2019 was $240,395, $183,328 and $100,000, respectively, and are included in Cost of Sales – Products in the Consolidated Statements of Operations. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Expenses | |
Accrued Expenses | Note 10 — Accrued Expenses Accrued expenses consisted of the following: December 31, December 31, 2021 2020 Accrued Wages and Related Costs $ 683,044 $ 582,924 Accrued Professional Services 551,220 187,323 Accrued Warranty Obligations 185,044 143,898 Other Accrued Expenses — 68,888 Total $ 1,419,308 $ 983,033 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve (12) months. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its future warranty costs based upon product-based historical performance rates and related costs to repair. The changes in the Company’s accrued warranty obligations for the years ended December 31, 2021, 2020 and 2019 were as follows: Accrued Warranty Obligations at December 31, 2018 $ 218,047 Reductions for Settling Warranties (204,583) Warranty Issued During Year 85,429 Accrued Warranty Obligations at December 31, 2019 98,893 Reductions for Settling Warranties (193,503) Warranty Issued During Year 238,508 Accrued Warranty Obligations at December 31, 2020 143,898 Reductions for Settling Warranties (342,392) Warranties Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2021 $ 185,044 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Income Taxes | Note 11 — Income Taxes The Company files U.S. federal and various state and foreign tax returns. Pre-tax earnings consisted of the following for the years ended: December 31, December 31, December 31, 2021 2020 2019 Pre-Tax Income (Loss) U.S. $ (39,906,101) $ (18,238,773) $ (26,482,033) Outside the U.S. (471,059) 286,601 5,663 Total Pre-Tax Income (Loss) $ (40,377,160) $ (17,952,172) $ (26,476,370) The provision expense/(benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows: 2021 2020 2019 U.S. Income Taxes: Current Provision $ — $ — $ — Deferred Provision (8,924,947) (3,897,293) (5,382,746) Valuation Allowance 8,924,947 3,897,293 5,382,746 Income Taxes Outside the U.S.: Current Provision — — — Deferred Provision (341,181) 7,916 (511,672) Valuation Allowance 341,181 (7,916) 511,672 State Income Taxes: Current Provision — — — Deferred Provision (636,401) (94,324) (189,200) Valuation Allowance 636,401 94,324 189,200 Total Provision $ — $ — $ — A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2021, 2020 and 2019 is as follows: 2021 2020 2019 % % % Federal Income Tax at Statutory Rate 21.0 21.0 21.0 State Tax Provision, Net of Federal Benefit 1.6 0.3 0.3 Permanent Differences — (0.4) (0.1) Forgiveness of PPP Loan — 1.8 — Federal Tax Credits 0.2 1.1 1.3 Stock Compensation 1.5 (2.1) (1.9) Foreign Tax Provision 0.6 0.3 1.9 Expiration of NOL, Credits, Charitable Contribution (0.7) 0.1 — Other 0.3 0.1 0.5 Effective Tax Rate 24.5 22.2 23.0 Change in Valuation Allowance (24.5) (22.2) (23.0) Net Effective Tax Rate — — — Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, December 31, 2021 2020 2019 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 36,705,377 $ 29,264,829 $ 25,678,591 Tax Credit Carry-forwards 3,924,660 3,778,001 3,535,863 Inventory Valuation Adjustment 290,713 847,441 982,160 Stock-Based Compensation 2,989,427 208,803 — Lease Obligation Liability 240,741 323,186 446,488 Other 425,737 368,243 263,348 Total Deferred Tax Assets 44,576,655 34,790,503 30,906,450 Deferred Tax Liabilities: Income from Foreign Operations — 10,727 — Lease Right of Use Asset 240,741 323,186 446,488 Other 4,057 27,262 14,335 Total Deferred Tax Liabilities 244,798 361,175 460,823 Net Deferred Tax Assets Before Valuation Allowance $ 44,331,857 $ 34,429,328 $ 30,445,627 Valuation Allowance (44,331,857) (34,429,328) (30,445,627) Net Deferred Tax Assets $ — $ — $ — As of December 31, 2021, the Company has approximately $167.1 million in US federal net operating loss (NOL) carry-forwards and $2.2 million of Japanese NOL carryforwards. The federal NOL carryforwards generated in tax years prior to 2018 will began to expire in 2022. The federal NOL carryforwards generated in tax years after 2017 have no expiration. The Company has state NOL carryforwards of approximately $6.8 million available in various jurisdictions in which it files that will begin to expire in 2034. The Company also has approximately $3.9 million of federal and state credit carry-forwards. The federal and state credit carryforwards began to expire in 2022. Utilization of the NOL and credit carryforwards may be subject to an annual limitation in the case of sufficient equity ownership changes under Section 382 of the tax law or the carryforwards may expire unutilized. As the result of the assessment of the FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109), the Company has no unrecognized tax benefits. The Company’s U.S. federal and state tax returns for the years 2018 through 2021 remain subject to examination by the respective tax authorities. FASB ASC 740 (Prior Authoritative Literature: SFAS No. 109, Accounting for Income Taxes), requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100% valuation allowance has been recorded to fully offset any benefit associated with the net deferred tax assets, for which realization is not considered more likely than not to occur. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Capital Stock | |
Capital Stock | Note 12 — Capital Stock Preferred stock The Board of Directors are authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other special rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of December 31, 2021 and December 31, 2020. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil and 49,626 shares of Series A Preferred Stock issued outstanding On January 28, 2021, Intel Corporation (“Intel”) (which was the holder of all of the outstanding shares of Series A Preferred Stock) converted all of its 49,626 shares of Series A Preferred Stock into 4,962,600 shares of common stock and the shares of Series A Preferred Stock have been retired and cannot be reissued. In connection with the foregoing, Intel and the Company entered into an agreement pursuant to which Intel agreed to accept $10,000,000 in full payment of all accrued Series A Preferred Stock dividends in the approximate amount of $10,800,000. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001 as of December 31, 2021 and December 31, 2020. There were 63,672,268 and 45,645,166 shares of common stock issued outstanding On March 25, 2021, the Company entered into an underwriting agreement with BTIG, LLC for the sale of the Company’s common stock in an underwritten public offering at a public offering price of $20.50 per share. The Company closed on this public offering (including the full exercise of the over-allotment option granted to the underwriters), receiving total gross proceeds of $97,750,007 from the sale of 4,768,293 shares. The Company received net proceeds after the underwriting discount and issuance costs and expenses of $91,613,587. |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2021 | |
Stock Warrants | |
Stock Warrants | Note 13 — Stock Warrants The following table shows the various changes in warrants for the years ended: December 31, December 31, December 31, 2021 2020 2019 Warrants Outstanding at December 31, 2020 7,276,928 6,512,516 2,233,062 Exercised During the Period (7,276,928) (2,882,647) — Issued During the Period — 3,647,059 5,479,454 Expired During the Period — — (1,200,000) Warrants Outstanding at December 31, 2021 — 7,276,928 6,512,516 During the year ended December 31, 2021, a total of 7,276,928 warrants were exercised on a cash basis resulting in the issuance of 7,276,928 shares of common stock and proceeds of $34,715,728. During the year ended December 31, 2020, a total of 2,882,647 warrants were exercised on a cash basis resulting in the issuance of 2,882,647 shares of common stock and proceeds of $14,128,527. During the year ended December 31, 2019 there were no warrants exercised. As of December 31, 2021, there were no outstanding warrants remaining. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 14 — Stock-Based Compensation The Company has the following Stock Option Plans (“Plans”) that allow for the granting of both incentive stock options or ISOs, which can result in potentially favorable tax treatment to the participant, and non-statutory stock options. The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) was approved by the stockholders of the Company on June 26, 2014. The Company no longer issues any options under its prior 2009 Plan. The 2014 Plan has an “evergreen provision”, under which the maximum number of shares of common stock that may be issued under the 2014 Plan was approved by the Company’s stockholders to increase the number of shares available for issuance thereunder to 20% of the outstanding shares of common stock. As of December 31, 2021, the authorized shares of common stock under the 2014 Plan, as amended, were 12,734,454. The exercise price per share subject to an option is determined by the administrator, but in the case of an ISO must not be less than the fair market value of a share of our common stock on the date of grant and in the case of a non- statutory stock option must not be less than 100% of the fair market value of a share of our common stock on the date of grant. Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, performance awards of stock and/or cash, and stock awards of restricted stock. Options issued or outstanding under the Stock Options Plans are as follows: 2009 2014 Plan Plan Total Outstanding as of December 31, 2019 85,498 1,298,093 1,383,591 Available for future issuance under plan — 5,329,309 5,329,309 Total authorized by plan 85,498 6,627,402 6,712,900 Outstanding as of December 31, 2020 85,498 2,547,677 2,633,175 Available for future issuance under plan — 6,583,033 6,583,033 Totals authorized by plan 85,498 9,130,710 9,216,208 Outstanding as of December 31, 2021 — 11,184,450 11,184,450 Available for future issuance under plan — 1,550,004 1,550,004 Totals authorized by plan — 12,734,454 12,734,454 The 2014 Plan gives the Board of Directors of the Company the ability to determine vesting periods for all stock incentives granted under the 2014 Plan and allows option terms to be up to ten years from the original grant date. Employees’ incentive stock options typically vest at a minimum rate of 25% per year over a four-year period, commencing on the date of grant. The following table summarizes stock option activity related to the Company’s standard employee incentive plan, excluding options awarded under the Long-term Incentive Plan (LTIP), for the years ended December 31, 2021, 2020 and 2019: Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2018 1,546,521 $ 5.11 7.19 Granted 73,500 2.36 Exercised — — Expired or Forfeited (236,430) 6.21 Outstanding at December 31, 2019 1,383,591 $ 4.77 6.25 Granted 1,481,000 1.66 Exercised (82,083) 4.67 Expired or Forfeited (149,333) 3.68 Outstanding at December 31, 2020 2,633,175 $ 3.09 6.53 Granted 1,100,500 17.23 Exercised (739,956) 3.36 Expired or Forfeited (170,085) 8.58 Outstanding at December 31, 2021 2,823,634 $ 7.67 7.95 As of December 31, 2021, there were 1,069,639 options that were fully vested and exercisable at a weighted average exercise price of $5.70 per share. The weighted average remaining contractual term on the vested options is 6.58 years. The unvested balance of 1,753,995 options as of December 31, 2021 are exercisable at a weighted average exercise price of $9.62 per share. The weighted average remaining contractual term on the unvested options is 8.8 years. As of December 31, 2020, there were 1,251,241 options that were fully vested and exercisable at a weighted average exercise price of $4.17 per share. The weighted average remaining contractual term on the vested options is 4.58 years. The unvested balance of 1,381,934 options as of December 31, 2020 were exercisable at a weighted average exercise price of $2.16 per share. The weighted average remaining contractual term on the vested options was 9.3 years. As of December 31, 2019, there were 1,015,019 options that were fully vested and exercisable at a weighted average exercise price of $4.63 per share. The weighted average remaining contractual term on the vested options is 5.4 years. The unvested balance of 368,572 options as of December 31, 2019 were exercisable at a weighted average exercise price of $5.17 per share. The weighted average remaining contractual term on the vested options was 8.5 years. The aggregate intrinsic value of the options exercised during the year ended December 31, 2021, 2020 and 2019 was approximately $13,697,906, $869,177 and $493,500, respectively. The aggregate intrinsic value of the options outstanding as of December 31, 2021, 2020 and 2019 was approximately $9,314,887, $16,444,695 and nil, respectively. The Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. We have never paid cash dividends on our common stock and do not anticipate paying cash dividends on our common stock in the foreseeable future. Therefore, the assumed expected dividend yield is zero. The following summary table shows the assumptions used to compute the fair value of stock options granted, excluding LTIP, during 2021, 2020 and 2019 and their estimated value: December 31, 2021 2020 2019 Assumptions for Black-Scholes: Expected term in years 6.1 to 6.5 6.2 to 6.6 6.2 to 6.3 Expected Volatility 82.8% to 86.0 % 73.3% to 76.8 % 79.4% to 89.4 % Risk-free interest rate 0.96% to 1.25 % 0.41% to 0.55 % 1.63% to 1.68 % Expected annual dividends None None None Value of options granted: Number of options granted 1,100,500 1,481,000 73,500 Weighted average fair value per share $ 12.40 $ 1.08 $ 1.71 Fair value of options granted $ 13,642,976 $ 1,602,267 $ 125,814 Under FASB ASC Topic 718, “Compensation – Stock Compensation”, the Company has elected to account for forfeitures as they occur. Unrecognized stock-based compensation expense was $9,355,603 as of December 31, 2021, relating to a total of 1,753,995 unvested stock options under the Company’s stock option plans. This stock-based compensation expense is expected to be recognized over a weighted average period of approximately 3.2 years. During the year ended December 31, 2021, the Company issued 68,047 shares of common stock to its independent board members as part of their annual retainer for services covering the period of July 2021 to June 2022 and for the onboarding of the 3 new directors. The fair market value on the date of award of the stock issued was $16.90, resulting in an aggregate fair value of approximately $1,150,000. The unamortized portion is included in Prepaid Expenses and Other Assets on our consolidated balance sheet. The fair market value of these awards is expensed over twelve (12) months for 59,170 shares and twenty-four (24) months for 8,877 shares beginning on July 1, 2021. During the year ended December 31, 2021, the Company awarded 300,000 shares of restricted common stock to the new managing director of its newly established Vuzix Custom Solutions (VCS) business unit, also formerly referred to as Integrated Solutions Business Unit. This equity award was granted pursuant to Nasdaq Listing Rule 5635(c)(4) inducement grant exception as a component of Mr. Spiliotis’s employment compensation and was granted as an inducement material to his acceptance of employment with Vuzix. These restricted shares are subject to vesting, including 50,000 shares that may be earned over 3 years based upon continued employment with the Company, and 250,000 shares that are being held in escrow, and which may be earned upon achievement of revenue and EBITDA operational milestones for VCS within specified periods of time over 5 years. Any such milestone shares will be cancelled if not earned within the appropriate milestone time period. The fair market value on the date of award of the restricted stock issued was $15.58, resulting in an aggregate fair value of approximately $4,674,000, of which, $779,000 has been recorded in short-term and long-term Prepaid Expenses and Other Assets associated with the time vesting option, to be amortized over 36 months beginning October 1, 2021. The balance of shares held in escrow related to the performance-based milestones, representing a fair market value of $3,895,000, is not being amortized until such time as the performance milestones are considered probable to be achieved or have been achieved in accordance with ASC 718. For the years ended December 31, 2021, 2020 and 2019, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $4,047,444, $2,805,842, and $1,498,357, respectively. |
Long-term Incentive Plan
Long-term Incentive Plan | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Incentive Plan | |
Long-term Incentive Plan | Note 15 – Long-term Incentive Plan On March 17, 2021, the Company granted options to purchase a total of 5,784,000 shares of common stock to its officers and certain other members of its management team. The options were granted under the Company’s existing 2014 Incentive Stock Plan. The options have an exercise price of $19.00, with 375,000 options vesting immediately and the remaining portion vesting upon the achievement of certain equity market capitalization milestones, and revenue and EBITDA operational milestones. For the year ended December 31, 2021, the Company recorded non-cash stock-based compensation expense of $13,255,388 for options that vested or are probable to vest. There was no stock-based compensation expense related to the Company’s LTIP in the year ended December 31, 2020 and 2019. The fair value of option grants was calculated using a Monte Carlo simulation on the equity market capitalization tranches and the Black-Scholes-Merton option pricing method on the operational milestone tranches. As of December 31, 2021, we had $28,340,458 of total unrecognized stock-based compensation expense for the portion of options tied to equity market capitalization milestones and the portion of options tied to operational milestones that were considered probable of achievement, all of which will be recognized over a service period of up to 6 years. The probabilities of the milestone achievements are subject to catch-adjustments in each instance where an equity market capitalization milestone is achieved or when an operational milestone becomes probable to be achieved or is achieved. Compensation costs could be reversed in subsequent periods if an awardee leave the Company prior to the expiration of the option life for market capitalization milestone or performance ward vesting of a performance award no longer determined to be probable. If such milestones are achieved earlier in their expected service periods, the remaining unrecognized compensation expense related to that particular milestone would be accelerated and recognized in full during the period where that achievement is affirmed by the Board of Directors. As of December 31, 2021, and going forward, should all of the operational milestones which are currently not yet deemed probable of achievement become probable of achievement or are achieved, then the Company could ultimately recognize up to an additional $34.1 million in non-cash stock-based compensation expense at such time. The following summary table shows the assumptions used to compute the fair value of the equity market capitalization awards and their estimated value: December 31, 2021 Assumptions for Monte Carlo: Expected term in years 1.4 to 5.2 Volatility 70.58 % Risk-free interest rate 0.07 % to 1.28 % Expected annual dividends None Value of options granted: Number of options granted 3,079,500 Weighted average fair value per share $ 10.92 Fair value of options granted $ 33,623,423 The following summary table shows the assumptions used to compute the fair value of the performance-based awards and their estimated value: December 31, 2021 Assumptions for Black-Scholes: Expected term in years 6.0 to 10.0 Expected Volatility 84.67 % to 116.39 % Risk-free interest rate 1.03 % to 1.63 % Expected annual dividends None Value of options granted: Number of options granted 2,704,500 Weighted average fair value per share $ 15.54 Fair value of options granted $ 42,040,151 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 5,409,000 unvested options outstanding as of December 31, 2021, there are 2,704,500 options unvested for the achievement of Equity Market Capitalization targets, 1,893,150 unvested options for the achievement of annual Revenue targets, and 811,350 unvested options for the achievement of annual EBITDA Margins Before Non-Cash Charges targets. Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market LTM Revenue LTM EBITDA 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 |
Right-of-Use Assets and Liabili
Right-of-Use Assets and Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-Use Assets and Liabilities | |
Right-of-Use Assets and Liabilities | Note 16 — Right-of-Use Assets and Liabilities The Company has signed lease agreements, with the largest being for its office and manufacturing facility in the West Henrietta, New York area under an operating lease that commenced October 3, 2015 and was set to expire on October 3, 2020. This lease has an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed to lease rates. On June 25, 2020, the Company exercised the first of two renewal terms, extending our current lease term to January 31, 2024. Operating lease costs under the operating leases totaled $630,085, $559,975 and $572,767 for the years ended December 31, 2021, 2020 and 2019, respectively. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance charges in the annual rental payments. Short-term leases are leases having a term of twelve (12) months or less. The Company recognizes short-term leases on an as incurred basis and does not record a related lease asset or liability for such leases. As none of our leases provide an implicit interest rate, we use our incremental borrowing rate to determine our discount rate at lease inception based upon the information available at commencement in determining the present value of lease payments. As of December 31, 2021, the weighted average discount rate was 4.5% and the weighted average remaining lease term was 2.1 years. Future lease payments under operating leases as of December 31, 2021 were as follows: 2022 $ 559,916 2023 546,916 2024 45,576 Total Future Lease Payments 1,152,408 Less: Imputed Interest (35,386) Total Lease Liability Balance $ 1,117,022 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 17 — Employee Benefit Plans The Company has a Section 401(k) Savings Plan which covers employees who meet certain age and length of service requirements. Effective July 1, 2018, the Company’s Plan was amended to include a 100% match by the Company on all eligible employee salary deferrals. The Company’s matching contribution is limited to 3% of covered employee’s annual salary. Total 401(k) matching expense for the years ended December 31, 2021, 2020 and 2019 totaled $280,660, $148,131 and $142,414, respectively. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2021 | |
Litigation | |
Litigation | Note 18 — Litigation We are not currently involved in any actual or pending material legal proceedings or litigation, and we are not aware of any such proceedings contemplated by or against us or our property. |
Geographic and Other Financial
Geographic and Other Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Geographic and Other Financial Information (Unaudited) | |
Geographic and Other Financial Information (Unaudited) | Note 19 — Geographic and Other Financial Information (Unaudited) Geographic Financial Information (Unaudited) Geographical revenue information, based on ship-to destination of the customers for the three years ended December 31, 2021, 2020 and 2019 is as follows (in thousands): By Continent and Region: Fiscal Year 2021 2020 2019 Revenue % of Total Revenue % of Total Revenue % of Total North America $ 5,003 38 % $ 4,531 40 % $ 2,781 42 % Europe 4,683 36 % 3,290 28 % 2,058 31 % Asia-Pacific 2,960 22 % 3,383 29 % 1,656 25 % Others 519 4 % 377 3 % 176 2 % Total Revenues $ 13,165 100 % $ 11,581 100 % $ 6,671 100 % By Country: Fiscal Year 2021 2020 2019 Revenue % of Total Revenue % of Total Revenue % of Total US $ 4,767 36 % $ 4,364 38 % $ 2,673 40 % Japan 2,078 16 % 2,502 22 % 873 13 % China 205 2 % 68 1 % 972 15 % Germany 322 2 % 378 3 % 769 12 % Others 5,793 44 % 4,269 36 % 1,384 20 % Total Revenues $ 13,165 100 % $ 11,581 100 % $ 6,671 100 % The Company does not maintain significant amounts of long-lived assets outside of the United States. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | Note 20 — Quarterly Financial Information (Unaudited) The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 3,314 $ 3,019 $ 2,917 $ 3,915 Gross profit 209 583 579 1,080 Net loss (11,493) (10,488) (9,245) (9,151) Net loss per share, basic and diluted (0.17) (0.17) (0.15) (0.17) Net loss attributable to common stockholders (11,493) (10,488) (9,245) (9,151) *Refer to Note 2 concerning the restatements of 2021 quarterly amounts for the three months ended March 31, 2021, June 30,2021 and September 30, 2021 in previously filed Form 10-Q for those periods. Fiscal Year 2020 December 31, September 30, June 30, March 31, Revenue $ 4,233 $ 2,779 $ 3,037 $ 1,532 Gross profit 703 348 796 81 Net loss (3,590) (4,761) (4,239) (5,362) Net loss per share, basic and diluted (0.09) (0.13) (0.13) (0.18) Net loss attributable to common stockholders (4,120) (5,281) (4,746) (5,861) Fiscal Year 2019 December 31, September 30, June 30, March 31, Revenue $ 1,953 $ 1,159 $ 2,186 $ 1,373 Gross profit (loss) (4,369) (231) 152 40 Net loss (9,583) (5,477) (5,056) (6,360) Net loss per share, basic and diluted (0.31) (0.18) (0.20) (0.25) Net loss attributable to common stockholders (10,081) (5,967) (5,534) (6,826) |
Schedule II -Valuation And Qual
Schedule II -Valuation And Qualification Accounts | 12 Months Ended |
Dec. 31, 2021 | |
Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | VUZIX CORPORATION Schedule II — Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Charged to Balance at End Description Period Expenses Deductions of Period For the Year Ended December 31, 2019 Allowances deducted from assets Doubtful Accounts $ 7 $ (7) (a) $ — $ — Inventory 364 4,573 (149) 4,788 Total allowances deducted from assets $ 371 $ 4,566 $ (149) $ 4,788 For the Year Ended December 31, 2020 Allowances deducted from assets Doubtful Accounts $ — $ — $ — $ — Inventory 4,788 1,274 (2,176) (b) 3,886 Total allowances deducted from assets $ 4,788 $ 1,274 $ (2,176) $ 3,886 For the Year Ended December 31, 2021 Allowances deducted from assets Doubtful Accounts $ — $ — $ — $ — Inventory 3,886 520 (3,279) (c) 1,127 Total allowances deducted from assets $ 3,886 $ 520 $ (3,279) $ 1,127 (a) Recovery of amounts previously written off. (b) Deductions in 2020 primarily related to the disposal of raw components related to the discontinuance of production of our original M300, all of which was fully provisioned for as of December 31, 2019. (c) Deductions in 2021 primarily related to the disposal of finished goods related to the discontinuance of sales and marketing activities related to our M300 series products, which had been previously provisioned for. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Operations | Operations Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in West Henrietta, New York (a suburb of Rochester). We are engaged in the design, manufacture, marketing and sale of augmented reality wearable display and computing devices also referred to as head mounted displays (or HMDs, but also known as near-eye displays), in the form of Smart Glasses and Augmented Reality (AR) glasses. Our AR 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 micro-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. The wearable display products we produce can be used for a variety of enterprise, commercial and medical uses and applications, including AR for on-the-go users and as mobile displays and remote service support. Our products are available with varying features and are offered as monocular and binocular display systems. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned UK subsidiary, Vuzix (Europe) Limited. All significant inter-company transactions have been eliminated. |
Segment Data, Geographic Information and Significant Customers | Segment Data, Geographic Information and Significant Customers The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 19 — Geographic and Other Financial Information (Unaudited). |
Foreign Currency Transactions | Foreign Currency Transactions The Company considers the US dollar as the functional currency of the Company’s UK Subsidiary. The Company’s UK Subsidiary transacts in Euros and British pounds. All transactions in foreign currencies are recorded in US dollars at the then current exchange rate(s). Upon settlement of the underlying transaction, all amounts are re-measured to US dollars at the current exchange rate on date of settlement. All unsettled foreign currency transactions that remain in accounts receivable and trade account payables are re-measured to US dollars at the period end exchange rates. All re-measurement gains and losses are recorded in the current period net income. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, notes receivable, accounts payable, unearned revenue, accrued expenses, and income taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. |
Accounts Receivable | Accounts Receivable The Company carries its trade accounts receivable at the invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at-risk receivables. The allowance for doubtful accounts as of December 31, 2021, 2020 and 2019 was nil. The Company does not accrue interest on any past due accounts receivable unless such receivable goes into collection. |
Customer and Supplier Concentrations | Customer and Supplier Concentrations One customer represented 10% of total product revenue and four customers represented 39%, 28%, 16% and 12%, respectively, of our engineering services revenue for the year ended December 31, 2021. No one customer represented more than 10% of total product revenue and two customers represented 48% and 26%, respectively, of our engineering services revenue for the year ended December 31, 2020. One customer represented 16% of total product revenue and one customer represented 100% of engineering services revenue for the year ended December 31, 2019 Three customers represented 27%, 20% and 10%, respectively, of accounts receivable at December 31, 2021. Two customers represented 21% and 14%, respectively, of accounts receivable at December 31, 2020. Three customers represented 32%, 26% and 13%, respectively, of accounts receivable at December 31, 2019. Two third-party vendors represented 38% and 24%, respectively, of material purchases for the year ended December 31, 2021. As of December 31, 2021, the net amount due to these vendors was $504,073. |
Accrued Project Revenue | Accrued Project Revenue The Company carries accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project less amounts invoiced, if any. As of December 31, 2021, 2020 and 2019, we had nil in accrued project revenue. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. |
Revenue Recognition | Revenue Recognition The Company adopted the new guidance on Revenue from Contracts with Customers under FASB ASC Topic 606, "Revenue from Contracts with Customers", as of January 1, 2018. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales as performance obligations are satisfied and transfer of control and ownership to the customer has occurred, typically upon physical shipment. Revenue is recognized in the amount that the Company expects to receive in exchange from the sale of our products. FOB shipping point is our standard shipping term and revenue is recognized as our products ship to customers, as control and ownership are transferred at this point in time. All of our standard product sales include a 30-day money back guarantee and expected returns are estimated at each reporting period date and a portion of revenue is deferred for all estimated returns. As of December 31, 2021 and 2020, deferred revenue associated with our expected returns were immaterial. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. |
Unearned Revenue | Unearned Revenue These amounts represent deferred revenue against our expected product sales returns for all December 2021 products sales that are subject to the Company’s 30-day money back guarantee return policy. |
Cost of Product Sales | Cost of Product Sales Cost of product sales includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing facility and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. Depreciation on manufacturing tools and equipment is included in Operating Expenses in our consolidated statement of operations. The cost of product sales can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct cost of materials. |
Cost of Engineering Services Sales | Cost of Engineering Services Sales Cost of engineering services revenues includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in performing under the contract. Direct costs also include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of engineering sales is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. |
Patents and Trademarks | Patents and Trademarks The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. Ongoing maintenance and legal fees for issued patents and trademarks are expensed as incurred. |
Software Development Costs | Software Development Costs The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management or of purchased software solutions when placed into service. Such costs are accumulated and capitalized. Projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period when the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of product sales over the estimated life of the products, which currently is estimated as three years using a straight-line basis. As of December 31, 2021, 2020 and 2019, we had $541,666, $458,333 and $100,000, respectively, of net software development costs included in Other Assets. For the years ended December 31, 2021, 2020 and 2019, there was nil in impairment of software development costs. |
Licenses | Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the life of the license. In some cases, future royalties are subject to annual limits. |
Long-Lived Assets | Long-Lived Assets The Company at least annually assesses all of its long-lived assets for impairment and when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” For the years ended December 31, 2021 and 2020, there was an impairment charge of $80,163 and $73,532, respectively, to Patents and Trademarks and nil in 2019. For the year ended December 31, 2021, we recorded a loss on fixed asset disposal of $183,614 upon the retirement of certain tooling and manufacturing equipment assets no longer in use. No loss on fixed asset disposal charges on tooling and equipment were recorded in 2020 or 2019. |
Research and Development | Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third-party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. |
Provision for Future Warranty Costs | Provision for Future Warranty Costs The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based upon historical experience of warranty claims and costs. |
Advertising | Advertising Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2021, 2020 and 2019 was $1,263,897, $974,461 and $1,302,120, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. |
Net Loss Per Share | Net Loss Per Share Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2021, 2020 and 2019, all outstanding instruments would be antidilutive. As of December 31, 2021, 2020 and 2019, there were 8,606,062, 14,872,703 and 12,858,707 common stock share equivalents, respectively, that were potentially issuable under stock options, conversion of preferred shares (excluding accrued dividends), and stock warrants that could potentially dilute basic earnings per share in the future. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company accounts for stock-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation - Stock Compensation,” which requires that compensation expense be recognized in the consolidated financial statements for stock-based awards based on the grant date fair value. For stock option awards, the Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. For common stock awards, the Company uses the fair market value of our common stock on the date of each stock-based award based on the market price of the Company’s common shares and the expense related to these awards is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock awards and stock option grants for the years ended December 31, 2021, 2020 and 2019 was $4,047,444, $2,805,842 and $1,498,357, respectively, excluding awards under the Company’s Long-term Incentive Plan (LTIP). The Company issues new shares upon stock option exercises. For stock options awarded under the Company's LTIP, options vest only upon the achievement of certain equity market conditions or performance-based milestones. The fair value of options granted under this program were calculated by using a Monte Carlo simulation for the equity market condition tranches and the Black-Scholes-Merton option pricing method on the performance-based tranches. Stock-based compensation expense associated with the Company's LTIP for the year ended December 31, 2021 was $13,255,388 and nil for the years ended December 31, 2020 and 2019. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Historically, non-lease components such as utilities have been immaterial. Payments under our lease arrangements are primarily fixed. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of December 31, 2021, all of our leases are considered operating leases. Operating lease right-of-use assets and liabilities were included on our Consolidated Balance Sheets beginning January 1, 2019. The Company does not have any finance leases as of December 31, 2021. |
Recent Accounting Pronouncements | 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. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company is currently evaluating the guidance and its impact to the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Significant Accounting Policies | |
Schedule of Property and Equipment Estimated Useful Life | Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years |
Restatement of Previously Iss_2
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements | |
Impact of the restatement on the unaudited consolidated balance sheets | March 31, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 316,208,276 $ 2,512,007 $ 318,720,283 Accumulated deficit $ (169,334,346) $ (2,512,007) $ (171,846,353) June 30, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 333,792,844 $ 2,978,022 $ 336,770,866 Accumulated deficit $ (178,113,803) $ (2,978,022) $ (181,091,825) September 30, 2021 (Unaudited) As Previously Balance Sheet Reported Adjustment As Restated Additional paid-in capital $ 337,125,126 $ 5,519,504 $ 342,644,630 Accumulated deficit $ (186,059,869) $ (5,519,504) $ (191,579,373) |
Impact of the restatement on statement of stockholders' equity | For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 2,047,378 $ 2,512,007 $ 4,559,385 Additional Paid-In Capital 316,208,276 2,512,007 318,720,283 Net Loss (6,639,363) (2,512,007) (9,151,370) Accumulated Deficit $ (169,334,346) $ (2,512,007) $ (171,846,353) For the Six Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 5,566,124 $ 2,978,022 $ 8,544,146 Additional Paid-In Capital 333,792,844 2,978,022 336,770,866 Net Loss (15,418,820) (2,978,022) (18,396,842) Accumulated Deficit $ (178,113,803) $ (2,978,022) $ (181,091,825) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Changes in Stockholders' Equity Reported Adjustment As Restated Stock-Based Compensation Expense $ 8,858,814 $ 5,519,504 $ 14,378,318 Additional Paid-In Capital 337,125,126 5,519,504 342,644,630 Net Loss (23,364,886) (5,519,504) (28,884,390) Accumulated Deficit $ (186,059,869) $ (5,519,504) $ (191,579,373) |
Impact of the restatement on consolidated statements of operations | For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 3,915,389 $ — $ 3,915,389 Total Cost of Sales 2,835,798 — 2,835,798 Gross Profit (exclusive of depreciation shown separately below) 1,079,591 — 1,079,591 Operating Expenses: Research and Development 2,079,927 125,391 2,205,318 Selling and Marketing 1,240,734 62,696 1,303,430 General and Administrative 3,703,837 2,323,920 6,027,757 Depreciation and Amortization 517,412 — 517,412 Loss on Fixed Asset Disposal 83,908 — 83,908 Impairment of Patents and Trademarks 27,731 — 27,731 Total Operating Expenses 7,653,549 2,512,007 10,165,556 Loss From Operations (6,573,958) (2,512,007) (9,085,965) Total Other Expense (65,405) — (65,405) Net Loss $ (6,639,363) $ (2,512,007) $ (9,151,370) Basic and Diluted Loss per Common Share $ (0.12) $ (0.05) $ (0.17) For the Three Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 2,916,538 $ — $ 2,916,538 Total Cost of Sales 2,337,166 — 2,337,166 Gross Profit (exclusive of depreciation shown separately below) 579,372 — 579,372 Operating Expenses: Research and Development 2,700,732 23,262 2,723,994 Selling and Marketing 1,337,558 11,631 1,349,189 General and Administrative 4,749,920 431,122 5,181,042 Depreciation and Amortization 501,678 — 501,678 Loss on Fixed Asset Disposal — — — Impairment of Patents and Trademarks 30,765 — 30,765 Total Operating Expenses 9,320,653 466,015 9,786,668 Loss From Operations (8,741,281) (466,015) (9,207,296) Total Other Expense (38,176) — (38,176) Net Loss $ (8,779,457) $ (466,015) $ (9,245,472) Basic and Diluted Loss per Common Share $ (0.14) $ (0.01) $ (0.15) For the Three Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Operations Reported Adjustment As Restated Total Sales $ 3,018,774 $ — $ 3,018,774 Total Cost of Sales 2,435,437 — 2,435,437 Gross Profit (exclusive of depreciation shown separately below) 583,337 — 583,337 Operating Expenses: Research and Development 3,270,255 126,863 3,397,118 Selling and Marketing 1,589,582 63,431 1,653,013 General and Administrative 3,112,059 2,351,188 5,463,247 Depreciation and Amortization 434,277 — 434,277 Loss on Fixed Asset Disposal — — — Impairment of Patents and Trademarks 7,544 — 7,544 Total Operating Expenses 8,413,717 2,541,482 10,955,199 Loss From Operations (7,830,380) (2,541,482) (10,371,862) Total Other Expense (115,686) — (115,686) Net Loss $ (7,946,066) $ (2,541,482) $ (10,487,548) Basic and Diluted Loss per Common Share $ (0.13) $ (0.04) $ (0.17) |
Impact of the restatement on consolidated statements of cash flow | For the Three Months Ended March 31, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (6,639,363) $ (2,512,007) $ (9,151,370) Stock-Based Compensation 2,106,206 2,512,007 4,618,213 Net Cash Flows Used in Operating Activities $ (5,921,629) $ — $ (5,921,629) For the Six Months Ended June 30, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (15,418,820) $ (2,978,022) $ (18,396,842) Stock-Based Compensation 5,683,591 2,978,022 8,661,613 Net Cash Flows Used in Operating Activities $ (13,108,703) $ — $ (13,108,703) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously Condensed Statement of Cash Flows Reported Adjustment As Restated Net Loss $ (23,364,886) $ (5,519,504) $ (28,884,390) Stock-Based Compensation 7,311,278 5,519,504 12,830,782 Net Cash Flows Used in Operating Activities $ (18,909,428) $ — $ (18,909,428) |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | For the Years Ended December 31, 2021 2020 2019 Revenues Smart Glasses Sales $ 12,784,600 $ 10,081,209 $ 4,893,384 OEM Product Sales — — 951,570 Waveguide and Display Engine Sales — — 152,499 Engineering Services 380,333 1,500,287 673,151 Total Revenue $ 13,164,933 $ 11,581,496 $ 6,670,604 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | For the Years Ended December 31, 2021 2020 2019 Point-in-Time 97 % 87 % 90 % Over Time – Input Method 3 % 13 % 10 % Total 100 % 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventories, Net | |
Schedule of Inventories | Inventories consisted of the following: December 31, December 31, 2021 2020 Purchased Parts and Components $ 11,580,766 $ 5,252,709 Work-in-Process 226,126 1,381,677 Finished Goods 1,472,534 3,352,057 Less: Reserve for Obsolescence (1,127,444) (3,885,619) Inventories, Net $ 12,151,982 $ 6,100,824 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fixed Assets, Net | |
Fixed Assets, Net | Fixed Assets consisted of the following: December 31, December 31, 2021 2020 Tooling and Manufacturing Equipment $ 6,612,811 $ 5,494,491 Leaseholds 797,059 773,734 Computers and Purchased Software 980,561 798,881 Furniture and Equipment 2,661,346 2,134,788 11,051,777 9,201,894 Less: Accumulated Depreciation (5,861,339) (6,364,492) Fixed Assets, Net $ 5,190,438 $ 2,837,402 |
Patents and Trademarks, Net (Ta
Patents and Trademarks, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Patents and Trademarks [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2021 2020 Patents and Trademarks $ 2,854,521 $ 2,330,720 Less: Accumulated Amortization (866,151) (737,671) Patents and Trademarks, Net $ 1,988,370 $ 1,593,049 |
Licenses, Net (Tables)
Licenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Licenses [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2021 2020 Licenses $ 1,038,606 $ 493,717 Additions 1,404,750 544,889 Less: Accumulated Amortization / Expensed (1,053,420) (572,475) 1,389,936 466,131 Less: Current Portion — (272,444) Licenses, Net $ 1,389,936 $ 193,687 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Intangible Assets | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2021 2020 Intangible Asset $ 1,500,000 $ 1,500,000 Less: Accumulated Amortization (1,352,452) (933,544) Intangible Asset, Net $ 147,548 $ 566,456 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Assets | |
Schedule of other assets | The Company’s other assets consists of the following: December 31, December 31, 2021 2020 Private Corporation Investments $ 450,000 $ 250,000 Software Development Costs 750,000 500,000 Less: Accumulated Amortization (208,334) (41,667) Software Development Costs, Net 541,666 458,333 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 491,923 — Total Other Assets $ 1,483,589 $ 708,333 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Expenses | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: December 31, December 31, 2021 2020 Accrued Wages and Related Costs $ 683,044 $ 582,924 Accrued Professional Services 551,220 187,323 Accrued Warranty Obligations 185,044 143,898 Other Accrued Expenses — 68,888 Total $ 1,419,308 $ 983,033 |
Schedule of changes in accrued warranty obligations | The changes in the Company’s accrued warranty obligations for the years ended December 31, 2021, 2020 and 2019 were as follows: Accrued Warranty Obligations at December 31, 2018 $ 218,047 Reductions for Settling Warranties (204,583) Warranty Issued During Year 85,429 Accrued Warranty Obligations at December 31, 2019 98,893 Reductions for Settling Warranties (193,503) Warranty Issued During Year 238,508 Accrued Warranty Obligations at December 31, 2020 143,898 Reductions for Settling Warranties (342,392) Warranties Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2021 $ 185,044 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes | |
Schedule Of Pre Tax Earnings | Pre-tax earnings consisted of the following for the years ended: December 31, December 31, December 31, 2021 2020 2019 Pre-Tax Income (Loss) U.S. $ (39,906,101) $ (18,238,773) $ (26,482,033) Outside the U.S. (471,059) 286,601 5,663 Total Pre-Tax Income (Loss) $ (40,377,160) $ (17,952,172) $ (26,476,370) |
Schedule of Components of Income Tax Expense (Benefit) | The provision expense/(benefit) for income taxes for the years ended December 31, 2021, 2020 and 2019 was as follows: 2021 2020 2019 U.S. Income Taxes: Current Provision $ — $ — $ — Deferred Provision (8,924,947) (3,897,293) (5,382,746) Valuation Allowance 8,924,947 3,897,293 5,382,746 Income Taxes Outside the U.S.: Current Provision — — — Deferred Provision (341,181) 7,916 (511,672) Valuation Allowance 341,181 (7,916) 511,672 State Income Taxes: Current Provision — — — Deferred Provision (636,401) (94,324) (189,200) Valuation Allowance 636,401 94,324 189,200 Total Provision $ — $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2021, 2020 and 2019 is as follows: 2021 2020 2019 % % % Federal Income Tax at Statutory Rate 21.0 21.0 21.0 State Tax Provision, Net of Federal Benefit 1.6 0.3 0.3 Permanent Differences — (0.4) (0.1) Forgiveness of PPP Loan — 1.8 — Federal Tax Credits 0.2 1.1 1.3 Stock Compensation 1.5 (2.1) (1.9) Foreign Tax Provision 0.6 0.3 1.9 Expiration of NOL, Credits, Charitable Contribution (0.7) 0.1 — Other 0.3 0.1 0.5 Effective Tax Rate 24.5 22.2 23.0 Change in Valuation Allowance (24.5) (22.2) (23.0) Net Effective Tax Rate — — — |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, December 31, 2021 2020 2019 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 36,705,377 $ 29,264,829 $ 25,678,591 Tax Credit Carry-forwards 3,924,660 3,778,001 3,535,863 Inventory Valuation Adjustment 290,713 847,441 982,160 Stock-Based Compensation 2,989,427 208,803 — Lease Obligation Liability 240,741 323,186 446,488 Other 425,737 368,243 263,348 Total Deferred Tax Assets 44,576,655 34,790,503 30,906,450 Deferred Tax Liabilities: Income from Foreign Operations — 10,727 — Lease Right of Use Asset 240,741 323,186 446,488 Other 4,057 27,262 14,335 Total Deferred Tax Liabilities 244,798 361,175 460,823 Net Deferred Tax Assets Before Valuation Allowance $ 44,331,857 $ 34,429,328 $ 30,445,627 Valuation Allowance (44,331,857) (34,429,328) (30,445,627) Net Deferred Tax Assets $ — $ — $ — |
Stock Warrants (Tables)
Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock Warrants | |
Schedule of changes in warrants | The following table shows the various changes in warrants for the years ended: December 31, December 31, December 31, 2021 2020 2019 Warrants Outstanding at December 31, 2020 7,276,928 6,512,516 2,233,062 Exercised During the Period (7,276,928) (2,882,647) — Issued During the Period — 3,647,059 5,479,454 Expired During the Period — — (1,200,000) Warrants Outstanding at December 31, 2021 — 7,276,928 6,512,516 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stock-Based Compensation | |
Schedule of Stock option plans | Options issued or outstanding under the Stock Options Plans are as follows: 2009 2014 Plan Plan Total Outstanding as of December 31, 2019 85,498 1,298,093 1,383,591 Available for future issuance under plan — 5,329,309 5,329,309 Total authorized by plan 85,498 6,627,402 6,712,900 Outstanding as of December 31, 2020 85,498 2,547,677 2,633,175 Available for future issuance under plan — 6,583,033 6,583,033 Totals authorized by plan 85,498 9,130,710 9,216,208 Outstanding as of December 31, 2021 — 11,184,450 11,184,450 Available for future issuance under plan — 1,550,004 1,550,004 Totals authorized by plan — 12,734,454 12,734,454 |
Schedule of Summary of Stock Option Activity | The following table summarizes stock option activity related to the Company’s standard employee incentive plan, excluding options awarded under the Long-term Incentive Plan (LTIP), for the years ended December 31, 2021, 2020 and 2019: Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2018 1,546,521 $ 5.11 7.19 Granted 73,500 2.36 Exercised — — Expired or Forfeited (236,430) 6.21 Outstanding at December 31, 2019 1,383,591 $ 4.77 6.25 Granted 1,481,000 1.66 Exercised (82,083) 4.67 Expired or Forfeited (149,333) 3.68 Outstanding at December 31, 2020 2,633,175 $ 3.09 6.53 Granted 1,100,500 17.23 Exercised (739,956) 3.36 Expired or Forfeited (170,085) 8.58 Outstanding at December 31, 2021 2,823,634 $ 7.67 7.95 |
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of stock options granted, excluding LTIP, during 2021, 2020 and 2019 and their estimated value: December 31, 2021 2020 2019 Assumptions for Black-Scholes: Expected term in years 6.1 to 6.5 6.2 to 6.6 6.2 to 6.3 Expected Volatility 82.8% to 86.0 % 73.3% to 76.8 % 79.4% to 89.4 % Risk-free interest rate 0.96% to 1.25 % 0.41% to 0.55 % 1.63% to 1.68 % Expected annual dividends None None None Value of options granted: Number of options granted 1,100,500 1,481,000 73,500 Weighted average fair value per share $ 12.40 $ 1.08 $ 1.71 Fair value of options granted $ 13,642,976 $ 1,602,267 $ 125,814 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Long-term Incentive Plan | |
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of stock options granted, excluding LTIP, during 2021, 2020 and 2019 and their estimated value: December 31, 2021 2020 2019 Assumptions for Black-Scholes: Expected term in years 6.1 to 6.5 6.2 to 6.6 6.2 to 6.3 Expected Volatility 82.8% to 86.0 % 73.3% to 76.8 % 79.4% to 89.4 % Risk-free interest rate 0.96% to 1.25 % 0.41% to 0.55 % 1.63% to 1.68 % Expected annual dividends None None None Value of options granted: Number of options granted 1,100,500 1,481,000 73,500 Weighted average fair value per share $ 12.40 $ 1.08 $ 1.71 Fair value of options granted $ 13,642,976 $ 1,602,267 $ 125,814 |
Schedule of equity market and operational milestone under the long term | Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market LTM Revenue LTM EBITDA 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 |
Equity Market Capitalization Targets [Member] | |
Long-term Incentive Plan | |
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of the equity market capitalization awards and their estimated value: December 31, 2021 Assumptions for Monte Carlo: Expected term in years 1.4 to 5.2 Volatility 70.58 % Risk-free interest rate 0.07 % to 1.28 % Expected annual dividends None Value of options granted: Number of options granted 3,079,500 Weighted average fair value per share $ 10.92 Fair value of options granted $ 33,623,423 |
Performance-based awards | |
Long-term Incentive Plan | |
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of the performance-based awards and their estimated value: December 31, 2021 Assumptions for Black-Scholes: Expected term in years 6.0 to 10.0 Expected Volatility 84.67 % to 116.39 % Risk-free interest rate 1.03 % to 1.63 % Expected annual dividends None Value of options granted: Number of options granted 2,704,500 Weighted average fair value per share $ 15.54 Fair value of options granted $ 42,040,151 |
Right-of-Use Assets and Liabi_2
Right-of-Use Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | Future lease payments under operating leases as of December 31, 2021 were as follows: 2022 $ 559,916 2023 546,916 2024 45,576 Total Future Lease Payments 1,152,408 Less: Imputed Interest (35,386) Total Lease Liability Balance $ 1,117,022 |
Geographic and Other Financia_2
Geographic and Other Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Geographic and Other Financial Information (Unaudited) | |
Schedule of revenue from external customers by geographic areas | Geographical revenue information, based on ship-to destination of the customers for the three years ended December 31, 2021, 2020 and 2019 is as follows (in thousands): By Continent and Region: Fiscal Year 2021 2020 2019 Revenue % of Total Revenue % of Total Revenue % of Total North America $ 5,003 38 % $ 4,531 40 % $ 2,781 42 % Europe 4,683 36 % 3,290 28 % 2,058 31 % Asia-Pacific 2,960 22 % 3,383 29 % 1,656 25 % Others 519 4 % 377 3 % 176 2 % Total Revenues $ 13,165 100 % $ 11,581 100 % $ 6,671 100 % By Country: Fiscal Year 2021 2020 2019 Revenue % of Total Revenue % of Total Revenue % of Total US $ 4,767 36 % $ 4,364 38 % $ 2,673 40 % Japan 2,078 16 % 2,502 22 % 873 13 % China 205 2 % 68 1 % 972 15 % Germany 322 2 % 378 3 % 769 12 % Others 5,793 44 % 4,269 36 % 1,384 20 % Total Revenues $ 13,165 100 % $ 11,581 100 % $ 6,671 100 % |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information (Unaudited) | |
Schedule of quarterly financial information | The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 3,314 $ 3,019 $ 2,917 $ 3,915 Gross profit 209 583 579 1,080 Net loss (11,493) (10,488) (9,245) (9,151) Net loss per share, basic and diluted (0.17) (0.17) (0.15) (0.17) Net loss attributable to common stockholders (11,493) (10,488) (9,245) (9,151) *Refer to Note 2 concerning the restatements of 2021 quarterly amounts for the three months ended March 31, 2021, June 30,2021 and September 30, 2021 in previously filed Form 10-Q for those periods. Fiscal Year 2020 December 31, September 30, June 30, March 31, Revenue $ 4,233 $ 2,779 $ 3,037 $ 1,532 Gross profit 703 348 796 81 Net loss (3,590) (4,761) (4,239) (5,362) Net loss per share, basic and diluted (0.09) (0.13) (0.13) (0.18) Net loss attributable to common stockholders (4,120) (5,281) (4,746) (5,861) Fiscal Year 2019 December 31, September 30, June 30, March 31, Revenue $ 1,953 $ 1,159 $ 2,186 $ 1,373 Gross profit (loss) (4,369) (231) 152 40 Net loss (9,583) (5,477) (5,056) (6,360) Net loss per share, basic and diluted (0.31) (0.18) (0.20) (0.25) Net loss attributable to common stockholders (10,081) (5,967) (5,534) (6,826) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 USD ($) | Jun. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) segment customer item shares | Dec. 31, 2020 USD ($) customer shares | Dec. 31, 2019 USD ($) customer shares | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 | $ 0 | |||
Accounts Payable | 2,054,762 | 1,517,155 | ||||
Accrued Revenue Current | 0 | 0 | 0 | |||
Software impairment costs | 0 | 0 | 0 | |||
Impairment of Software Development Cost | 80,163 | 73,532 | 0 | |||
Loss on Fixed Asset Disposal | $ 83,908 | (183,614) | 0 | 0 | ||
Advertising Expense | $ 1,263,897 | $ 974,461 | $ 1,302,120 | |||
Dilutive securities | shares | 8,606,062 | 14,872,703 | 12,858,707 | |||
Share-Based compensation excludes the long term incentive plan expense | $ 4,047,444 | $ 2,805,842 | $ 1,498,357 | |||
Stock-Based Compensation | $ 4,618,213 | $ 8,661,613 | $ 12,830,782 | 17,302,833 | 2,805,842 | 1,498,357 |
Long-term Incentive Plan 2021 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Stock-Based Compensation | 13,255,388 | $ 0 | $ 0 | |||
Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers | customer | 1 | |||||
Third-party Vendor One and Two | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Accounts Payable | $ 504,073 | |||||
Total revenues [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers | customer | 1 | 1 | ||||
Accounts Receivable [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers | customer | 3 | 2 | 3 | |||
Cost of Goods and Service Benchmark [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of third party vendors | item | 2 | |||||
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk | Third-party Vendor One | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 38% | |||||
Cost of Goods and Service Benchmark [Member] | Supplier Concentration Risk | Third-party Vendor Two | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 24% | |||||
Minimum | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization period (in years) | 3 years | |||||
Trademarks and Patents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Amortization period (in years) | 15 years | |||||
One customer | Total revenues [Member] | Customer Concentration Risk | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 10% | 16% | ||||
One customer | Total revenues [Member] | Customer Concentration Risk | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 39% | 48% | 100% | |||
One customer | Accounts Receivable [Member] | Customer Concentration Risk | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 27% | 21% | 32% | |||
Two customers | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers | customer | 2 | |||||
Two customers | Total revenues [Member] | Customer Concentration Risk | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 28% | 26% | ||||
Two customers | Accounts Receivable [Member] | Customer Concentration Risk | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 20% | 14% | 26% | |||
Three customers | Total revenues [Member] | Customer Concentration Risk | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 16% | |||||
Three customers | Accounts Receivable [Member] | Customer Concentration Risk | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 10% | 13% | ||||
Four customers | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers | segment | 4 | |||||
Four customers | Total revenues [Member] | Customer Concentration Risk | Sales of Engineering Services | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Concentration Risk, Percentage | 12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property Plant And Equipment Useful Life (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Computers and Purchased Software | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Leasehold Improvements | |||
Property, Plant and Equipment, Estimated Useful Lives | Lesser of expected life or lease term | ||
Manufacturing Equipment | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Tooling | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Furniture and Equipment | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Software and Software Development Costs | |||
Software Development Costs, Net | $ 541,666 | $ 458,333 | $ 100,000 |
Restatement of Previously Iss_3
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2021 | |
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements | ||
Aggregate fair value | $ 12.1 | $ 33.6 |
Restatement of Previously Iss_4
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements - Restatement to the Consolidated Balance Sheets (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Additional Paid-in Capital | $ 346,736,397 | $ 342,644,630 | $ 336,770,866 | $ 318,720,283 | $ 210,952,473 |
Retained Earnings Accumulated Deficit | $ (203,072,143) | (191,579,373) | (181,091,825) | (171,846,353) | $ (162,694,983) |
Previously Reported [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Additional Paid-in Capital | 337,125,126 | 333,792,844 | 316,208,276 | ||
Retained Earnings Accumulated Deficit | (186,059,869) | (178,113,803) | (169,334,346) | ||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Additional Paid-in Capital | 5,519,504 | 2,978,022 | 2,512,007 | ||
Retained Earnings Accumulated Deficit | $ (5,519,504) | $ (2,978,022) | $ (2,512,007) |
Restatement of Previously Iss_5
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements - Changes to Impacted Stockholders Equity Accounts (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Stock-Based Compensation Expense | $ 4,559,385 | $ 8,544,146 | $ 14,378,318 | $ 18,429,924 | $ 2,657,831 | $ 1,404,831 | |||||||||||
Additional Paid-in Capital | $ 346,736,397 | $ 342,644,630 | $ 336,770,866 | 318,720,283 | $ 210,952,473 | 336,770,866 | 342,644,630 | 346,736,397 | 210,952,473 | ||||||||
Net Loss | (11,493,000) | (10,487,548) | (9,245,472) | (9,151,370) | (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (9,583,000) | $ (5,477,000) | $ (5,056,000) | $ (6,360,000) | (18,396,842) | (28,884,390) | (40,377,160) | (17,952,172) | $ (26,476,370) |
Retained Earnings Accumulated Deficit | $ (203,072,143) | (191,579,373) | (181,091,825) | (171,846,353) | $ (162,694,983) | (181,091,825) | (191,579,373) | $ (203,072,143) | $ (162,694,983) | ||||||||
Previously Reported [Member] | |||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Stock-Based Compensation Expense | 2,047,378 | 5,566,124 | 8,858,814 | ||||||||||||||
Additional Paid-in Capital | 337,125,126 | 333,792,844 | 316,208,276 | 333,792,844 | 337,125,126 | ||||||||||||
Net Loss | (7,946,066) | (8,779,457) | (6,639,363) | (15,418,820) | (23,364,886) | ||||||||||||
Retained Earnings Accumulated Deficit | (186,059,869) | (178,113,803) | (169,334,346) | (178,113,803) | (186,059,869) | ||||||||||||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Stock-Based Compensation Expense | 2,512,007 | 2,978,022 | 5,519,504 | ||||||||||||||
Additional Paid-in Capital | 5,519,504 | 2,978,022 | 2,512,007 | 2,978,022 | 5,519,504 | ||||||||||||
Net Loss | (2,541,482) | (466,015) | (2,512,007) | (2,978,022) | (5,519,504) | ||||||||||||
Retained Earnings Accumulated Deficit | $ (5,519,504) | $ (2,978,022) | $ (2,512,007) | $ (2,978,022) | $ (5,519,504) |
Restatement of Previously Iss_6
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements - Changes to Impacted Consolidated Statements of Operations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Total Sales | $ 3,314,000 | $ 3,018,774 | $ 2,916,538 | $ 3,915,389 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 1,953,000 | $ 1,159,000 | $ 2,186,000 | $ 1,373,000 | $ 13,164,933 | $ 11,581,496 | $ 6,670,604 | ||
Total Cost of Sales | 2,435,437 | 2,337,166 | 2,835,798 | 10,714,088 | 9,653,887 | 11,078,725 | |||||||||||
Gross Profit (exclusive of depreciation shown separately below) | 209,000 | 583,337 | 579,372 | 1,079,591 | 703,000 | 348,000 | 796,000 | 81,000 | (4,369,000) | (231,000) | 152,000 | 40,000 | 2,450,845 | 1,927,609 | (4,408,121) | ||
Operating Expenses: | |||||||||||||||||
Research and Development | 3,397,118 | 2,723,994 | 2,205,318 | 11,674,954 | 7,568,074 | 8,900,837 | |||||||||||
Selling and Marketing | 1,653,013 | 1,349,189 | 1,303,430 | 6,118,929 | 4,039,772 | 4,215,611 | |||||||||||
General and Administrative | 5,463,247 | 5,181,042 | 6,027,757 | 22,502,833 | 6,915,213 | 6,600,092 | |||||||||||
Depreciation and Amortization | 434,277 | 501,678 | 517,412 | 1,870,459 | 2,458,482 | 2,441,581 | |||||||||||
Loss on Fixed Asset Disposal | 83,908 | (183,614) | 0 | 0 | |||||||||||||
Impairment of Patents and Trademarks | 7,544 | 30,765 | 27,731 | ||||||||||||||
Total Operating Expenses | 10,955,199 | 9,786,668 | 10,165,556 | 42,430,952 | 21,055,073 | 22,158,121 | |||||||||||
Loss From Operations | (10,371,862) | (9,207,296) | (9,085,965) | (39,980,107) | (19,127,464) | (26,566,242) | |||||||||||
Total Other Expense | (115,686) | (38,176) | (65,405) | (397,053) | 1,175,292 | 89,872 | |||||||||||
Net Loss | $ (11,493,000) | $ (10,487,548) | $ (9,245,472) | $ (9,151,370) | $ (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (9,583,000) | $ (5,477,000) | $ (5,056,000) | $ (6,360,000) | $ (18,396,842) | $ (28,884,390) | $ (40,377,160) | $ (17,952,172) | $ (26,476,370) |
Net loss per share, basic | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.31) | $ (0.18) | $ (0.20) | $ (0.25) | $ (0.66) | $ (0.53) | $ (0.94) | ||
Net loss per share, diluted | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.31) | $ (0.18) | $ (0.20) | $ (0.25) | $ (0.66) | $ (0.53) | $ (0.94) | ||
Previously Reported [Member] | |||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Total Sales | $ 3,018,774 | $ 2,916,538 | $ 3,915,389 | ||||||||||||||
Total Cost of Sales | 2,435,437 | 2,337,166 | 2,835,798 | ||||||||||||||
Gross Profit (exclusive of depreciation shown separately below) | 583,337 | 579,372 | 1,079,591 | ||||||||||||||
Operating Expenses: | |||||||||||||||||
Research and Development | 3,270,255 | 2,700,732 | 2,079,927 | ||||||||||||||
Selling and Marketing | 1,589,582 | 1,337,558 | 1,240,734 | ||||||||||||||
General and Administrative | 3,112,059 | 4,749,920 | 3,703,837 | ||||||||||||||
Depreciation and Amortization | 434,277 | 501,678 | 517,412 | ||||||||||||||
Loss on Fixed Asset Disposal | 83,908 | ||||||||||||||||
Impairment of Patents and Trademarks | 7,544 | 30,765 | 27,731 | ||||||||||||||
Total Operating Expenses | 8,413,717 | 9,320,653 | 7,653,549 | ||||||||||||||
Loss From Operations | (7,830,380) | (8,741,281) | (6,573,958) | ||||||||||||||
Total Other Expense | (115,686) | (38,176) | (65,405) | ||||||||||||||
Net Loss | $ (7,946,066) | $ (8,779,457) | $ (6,639,363) | (15,418,820) | (23,364,886) | ||||||||||||
Net loss per share, basic | $ (0.13) | $ (0.14) | $ (0.12) | ||||||||||||||
Net loss per share, diluted | $ (0.13) | $ (0.14) | $ (0.12) | ||||||||||||||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||||||||||||||
Operating Expenses: | |||||||||||||||||
Research and Development | $ 126,863 | $ 23,262 | $ 125,391 | ||||||||||||||
Selling and Marketing | 63,431 | 11,631 | 62,696 | ||||||||||||||
General and Administrative | 2,351,188 | 431,122 | 2,323,920 | ||||||||||||||
Total Operating Expenses | 2,541,482 | 466,015 | 2,512,007 | ||||||||||||||
Loss From Operations | (2,541,482) | (466,015) | (2,512,007) | ||||||||||||||
Net Loss | $ (2,541,482) | $ (466,015) | $ (2,512,007) | $ (2,978,022) | $ (5,519,504) | ||||||||||||
Net loss per share, basic | $ (0.04) | $ (0.01) | $ (0.05) | ||||||||||||||
Net loss per share, diluted | $ (0.04) | $ (0.01) | $ (0.05) |
Restatement of Previously Iss_7
Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements - Changes to Impacted Consolidated Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Net Loss | $ (11,493,000) | $ (10,487,548) | $ (9,245,472) | $ (9,151,370) | $ (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (9,583,000) | $ (5,477,000) | $ (5,056,000) | $ (6,360,000) | $ (18,396,842) | $ (28,884,390) | $ (40,377,160) | $ (17,952,172) | $ (26,476,370) |
Stock-Based Compensation | 4,618,213 | 8,661,613 | 12,830,782 | 17,302,833 | 2,805,842 | 1,498,357 | |||||||||||
Net Cash Flows Used in Operating Activities | (5,921,629) | (13,108,703) | (18,909,428) | $ (26,980,411) | $ (13,964,053) | $ (22,355,020) | |||||||||||
Previously Reported [Member] | |||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Net Loss | (7,946,066) | (8,779,457) | (6,639,363) | (15,418,820) | (23,364,886) | ||||||||||||
Stock-Based Compensation | 2,106,206 | 5,683,591 | 7,311,278 | ||||||||||||||
Net Cash Flows Used in Operating Activities | (5,921,629) | (13,108,703) | (18,909,428) | ||||||||||||||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||
Net Loss | $ (2,541,482) | $ (466,015) | (2,512,007) | (2,978,022) | (5,519,504) | ||||||||||||
Stock-Based Compensation | $ 2,512,007 | $ 2,978,022 | $ 5,519,504 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 USD ($) product | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Sep. 30, 2019 USD ($) | Jun. 30, 2019 USD ($) | Mar. 31, 2019 USD ($) | Dec. 31, 2021 USD ($) product | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Revenue | $ 3,314,000 | $ 3,018,774 | $ 2,916,538 | $ 3,915,389 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 1,953,000 | $ 1,159,000 | $ 2,186,000 | $ 1,373,000 | $ 13,164,933 | $ 11,581,496 | $ 6,670,604 |
Number of major product lines | product | 4 | 4 | |||||||||||||
Smart Glasses Sales | |||||||||||||||
Revenue | $ 12,784,600 | 10,081,209 | 4,893,384 | ||||||||||||
OEM Product Sales | |||||||||||||||
Revenue | 951,570 | ||||||||||||||
Waveguide and Display Engine Sales | |||||||||||||||
Revenue | 152,499 | ||||||||||||||
Engineering Services | |||||||||||||||
Revenue | $ 380,333 | $ 1,500,287 | $ 673,151 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Performance Obligation Percentage | 100% | 100% | 100% |
Point-in-Time - Output Method [Member] | |||
Revenue Performance Obligation Percentage | 97% | 87% | 90% |
Over Time - Input Method [Member] | |||
Revenue Performance Obligation Percentage | 3% | 13% | 10% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Standard Product Warranty Term | 12 months |
Revenue, Remaining Performance Obligation | $ 0 |
Extended warranties | |
Standard Product Warranty Term | 12 months |
Revenue, Remaining Performance Obligation | $ 0 |
OEM products and waveguide sales | |
Standard Product Warranty Term | 18 months |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Inventories, Net | ||
Purchased Parts and Components | $ 11,580,766 | $ 5,252,709 |
Work in Process | 226,126 | 1,381,677 |
Finished Goods | 1,472,534 | 3,352,057 |
Less: Reserve for Obsolescence | (1,127,444) | (3,885,619) |
Inventories, Net | $ 12,151,982 | $ 6,100,824 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Inventories, Net | |||
Percent of additional reserve for obsolescence on finished goods inventory | 25% | ||
Net realizable value on inventory write-down | $ 519,950 | ||
Inventory Reserve For Obsolescence | $ 519,950 | $ 1,273,835 | $ 4,572,659 |
Fixed Assets, Net - Schedule Of
Fixed Assets, Net - Schedule Of Fixed Assets (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 11,051,777 | $ 9,201,894 |
Less: Accumulated Depreciation | (5,861,339) | (6,364,492) |
Property, Plant and Equipment, Net, Total | 5,190,438 | 2,837,402 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 6,612,811 | 5,494,491 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 797,059 | 773,734 |
Computers and Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 980,561 | 798,881 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 2,661,346 | $ 2,134,788 |
Fixed Assets, Net - Additional
Fixed Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fixed Assets, Net | |||
Depreciation and Amortization | $ 1,306,479 | $ 1,904,282 | $ 1,913,409 |
Patents and Trademarks, Net - S
Patents and Trademarks, Net - Schedule Of Patents and Trademarks (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Net (Excluding Goodwill), Total | $ 1,988,370 | $ 1,593,049 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks | 2,854,521 | 2,330,720 |
Less: Accumulated Amortization | (866,151) | (737,671) |
Intangible Assets, Net (Excluding Goodwill), Total | $ 1,988,370 | $ 1,593,049 |
Patents and Trademarks, Net - A
Patents and Trademarks, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Software Development Cost | $ 80,163 | $ 73,532 | $ 0 |
Patents and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 145,072 | 130,656 | 120,172 |
2022 | 190,000 | ||
2023 | 190,000 | ||
2024 | 190,000 | ||
2025 | 190,000 | ||
2026 | 190,000 | ||
Impairment of Software Development Cost | $ 80,163 | $ 73,532 | $ 0 |
Licenses, Net (Details)
Licenses, Net (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Licenses Net [Line Items] | ||
Less: Current Portion | $ (272,444) | |
Licenses, Net | $ 1,389,936 | 193,687 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 1,038,606 | 493,717 |
Additions | 1,404,750 | 544,889 |
Less: Accumulated Amortization / Expensed | (1,053,420) | (572,475) |
Licenses, Net | 1,389,936 | 466,131 |
Less: Current Portion | (272,444) | |
Licenses, Net | $ 1,389,936 | $ 193,687 |
Licenses, Net - Additional Info
Licenses, Net - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||||
Mar. 25, 2021 shares | Jun. 30, 2021 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2017 USD ($) item shares | |
Licenses Net [Line Items] | ||||||
Company awarded shares | shares | 4,768,293 | |||||
Shares issued value | $ 97,750,007 | $ 26,750,002 | $ 20,000,007 | |||
Minimum | ||||||
Licenses Net [Line Items] | ||||||
Amortization period (in years) | 3 years | |||||
Licensing agreements | ||||||
Licenses Net [Line Items] | ||||||
Number of license acquired | item | 2 | |||||
Licenses, Net | $ 1,389,936 | 466,131 | ||||
Value of shares development milestones | 1,404,750 | 544,889 | ||||
Amortization expense | $ 480,945 | $ 393,174 | $ 122,704 | |||
First license agreements | ||||||
Licenses Net [Line Items] | ||||||
Licenses, Net | $ 114,967 | |||||
Amortization period (in years) | 10 years | |||||
Second license agreements | ||||||
Licenses Net [Line Items] | ||||||
Patent application costs | $ 75,702 | |||||
Company awarded shares | shares | 25,000 | |||||
Shares issued value | $ 128,750 | |||||
Issuance of shares development milestones | shares | 75,000 | 75,000 | ||||
Market value per share | $ / shares | $ 18.73 | |||||
Value of shares development milestones | $ 1,404,750 |
Intangible Asset, Net - Schedul
Intangible Asset, Net - Schedule of Finite-Lived Intangible Assets (Details) - Intangible Assets - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Intangible Asset | $ 1,500,000 | $ 1,500,000 |
Less: Accumulated Amortization | (1,352,452) | (933,544) |
Intangible Asset, Net | $ 147,548 | $ 566,456 |
Intangible Asset, Net - Additio
Intangible Asset, Net - Additional Information (Details) - TDG Acquisition Company LLC [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Total commission expense | $ 70,860 | $ 243,273 | $ 116,469 |
Amortization of intangible assets | $ 418,908 | $ 423,544 | $ 408,000 |
Amortization period (in months) | 5 months | ||
Future monthly amortization expense | $ 30,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Private Corporation Investment | $ 450,000 | $ 250,000 |
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | 491,923 | |
Total Other Assets | 1,483,589 | 708,333 |
Software Development | ||
Software development costs | 750,000 | 500,000 |
Less: Accumulated Amortization | (208,334) | (41,667) |
Software Development Costs, Net | $ 541,666 | $ 458,333 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2021 | Mar. 31, 2021 | Jun. 30, 2018 | |
Other assets [Line Items] | ||||||
Additions | $ 5,190,438 | $ 2,837,402 | ||||
Capitalized Software Development Costs | ||||||
Other assets [Line Items] | ||||||
Amortization expense | $ 240,395 | 183,328 | $ 100,000 | |||
Software Development | ||||||
Other assets [Line Items] | ||||||
Additions | $ 500,000 | $ 250,000 | ||||
Useful life | 36 months | |||||
Private Corporation [Member] | ||||||
Other assets [Line Items] | ||||||
Purchase Price | $ 200,000 | $ 250,000 | ||||
Equity Method Investment, Ownership Percentage | 3% | 1% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 683,044 | $ 582,924 |
Accrued Professional Services | 551,220 | 187,323 |
Accrued Warranty Obligations | 185,044 | 143,898 |
Other Accrued Expenses | 68,888 | |
Total | $ 1,419,308 | $ 983,033 |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accrued Expenses | |||
Accrued Warranty Obligations, beginning of period | $ 143,898 | $ 98,893 | $ 218,047 |
Reductions for Settling Warranties | (342,392) | (193,503) | (204,583) |
Warranties Issued During Period | 383,538 | 238,508 | 85,429 |
Accrued Warranty Obligations, end of period | $ 185,044 | $ 143,898 | $ 98,893 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Expenses | |
Standard Product Warranty Term | 12 months |
Income Taxes - Pre-Tax Earnings
Income Taxes - Pre-Tax Earnings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | $ (40,377,160) | $ (17,952,172) | $ (26,476,370) |
US | |||
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | (39,906,101) | (18,238,773) | (26,482,033) |
Outside the U.S. [Member] | |||
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | $ (471,059) | $ 286,601 | $ 5,663 |
Income Taxes - Provision Benefi
Income Taxes - Provision Benefit For Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
U.S. Income Taxes: | |||
Deferred Provision | $ (8,924,947) | $ (3,897,293) | $ (5,382,746) |
Valuation Allowance | 8,924,947 | 3,897,293 | 5,382,746 |
Income Taxes Outside the U.S.: | |||
Deferred Provision | (341,181) | 7,916 | (511,672) |
Valuation Allowance | 341,181 | (7,916) | 511,672 |
State Income Taxes: | |||
Deferred Provision | (636,401) | (94,324) | (189,200) |
Valuation Allowance | 636,401 | 94,324 | 189,200 |
Income Tax Expense (Benefit), Total |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Taxes | |||
Federal Income Tax at Statutory Rate | 21% | 21% | 21% |
State Tax Provision, Net of Federal Benefit | 1.60% | 0.30% | 0.30% |
Permanent Differences | (0.40%) | (0.10%) | |
Forgiveness of PPP Loan | 1.80% | ||
Federal Tax Credits | 0.20% | 1.10% | 1.30% |
Stock Compensation | 1.50% | (2.10%) | (1.90%) |
Foreign Tax Provision | 0.60% | 0.30% | 1.90% |
Expiration of NOL, Credits, Charitable Contribution | (0.70%) | 0.10% | |
Other | 0.30% | 0.10% | 0.50% |
Effective Tax Rate | 24.50% | 22.20% | 23% |
Change in Valuation Allowance | (24.50%) | (22.20%) | (23.00%) |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax assets And liabilities (Details) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets: | |||
Net Operating Loss Carry-forwards | $ 36,705,377 | $ 29,264,829 | $ 25,678,591 |
Tax Credit Carry-forwards | 3,924,660 | 3,778,001 | 3,535,863 |
Inventory Valuation Adjustment | 290,713 | 847,441 | 982,160 |
Stock-Based Compensation | 2,989,427 | 208,803 | |
Lease Obligation Liability | 240,741 | 323,186 | 446,488 |
Other | 425,737 | 368,243 | 263,348 |
Total Deferred Tax Assets | 44,576,655 | 34,790,503 | 30,906,450 |
Deferred Tax Liabilities: | |||
Income from Foreign Operations | 10,727 | ||
Lease Right of Use Asset | 240,741 | 323,186 | 446,488 |
Other | 4,057 | 27,262 | 14,335 |
Total Deferred Tax Liabilities | 244,798 | 361,175 | 460,823 |
Net Deferred Tax Assets Before Valuation Allowance | 44,331,857 | 34,429,328 | 30,445,627 |
Valuation Allowance | $ (44,331,857) | $ (34,429,328) | $ (30,445,627) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Federal and state tax credit carry-forwards | $ 3,900,000 |
Unrecognized tax benefits | 0 |
US | |
Operating Loss Carryforwards [Line Items] | |
Federal and State Net Operating Loss Carryforwards | 167,100,000 |
Japan | |
Operating Loss Carryforwards [Line Items] | |
Federal and State Net Operating Loss Carryforwards | 2,200,000 |
State | |
Operating Loss Carryforwards [Line Items] | |
Federal and State Net Operating Loss Carryforwards | $ 6,800,000 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Mar. 25, 2021 | Jan. 28, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 | |||
Preferred Stock, Shares Issued | 0 | 49,626 | |||
Preferred Stock, Shares Outstanding | 0 | 49,626 | |||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Common Stock, Shares, Issued | 63,672,268 | 45,645,166 | |||
Common Stock, Shares, Outstanding | 63,672,268 | 45,645,166 | |||
Public offering price | $ 20.50 | ||||
Proceeds from issuance of sale of equity gross | $ 97,750,007 | ||||
Company awarded shares | 4,768,293 | ||||
Underwriting discount and issuance costs and expenses | $ 91,613,587 | ||||
Common Stock | |||||
Company awarded shares | 4,768,293 | 8,647,059 | 5,479,454 | ||
Corporation | |||||
Conversion of stock | 49,626 | ||||
Shares issued on conversion | 4,962,600 | ||||
Dividend payment amount | $ 10,000,000 | ||||
Dividend accrued | $ 10,800,000 | ||||
Series A Preferred Stock [Member] | |||||
Preferred Stock, Shares Issued | 0 | 49,626 | |||
Preferred Stock, Shares Outstanding | 0 | 49,626 |
Stock Warrants - Changes in War
Stock Warrants - Changes in Warrants (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock Warrants | |||
Warrants Outstanding, Beginning of Period | 7,276,928 | 6,512,516 | 2,233,062 |
Exercised During the Period | (7,276,928) | (2,882,647) | |
Issued During the Period | 3,647,059 | 5,479,454 | |
Expired During the Period | (1,200,000) | ||
Warrants Outstanding, End of Period | 0 | 7,276,928 | 6,512,516 |
Stock Warrants - Additional Inf
Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capital Stock | ||||
Warrants exercised on cash basis | 7,276,928 | 2,882,647 | ||
Warrants exercised | 7,276,928 | 2,882,647 | 0 | |
Proceeds from issuance of warrants | $ 34,715,728 | $ 14,128,527 | ||
Warrants outstanding | 0 | 7,276,928 | 6,512,516 | 2,233,062 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Stock Option Plans (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Stock Option Plan [Line Items] | |||
Stock Options Plans, Outstanding | 11,184,450 | 2,633,175 | 1,383,591 |
Available for future issuance under plan | 1,550,004 | 6,583,033 | 5,329,309 |
Totals authorized by plan | 12,734,454 | 9,216,208 | 6,712,900 |
2009 Plan | |||
Stock Option Plan [Line Items] | |||
Stock Options Plans, Outstanding | 85,498 | 85,498 | |
Totals authorized by plan | 85,498 | 85,498 | |
2014 Plan | |||
Stock Option Plan [Line Items] | |||
Stock Options Plans, Outstanding | 11,184,450 | 2,547,677 | 1,298,093 |
Available for future issuance under plan | 1,550,004 | 6,583,033 | 5,329,309 |
Totals authorized by plan | 12,734,454 | 9,130,710 | 6,627,402 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Options | ||||
Outstanding, Beginning Balance | 2,633,175 | 1,383,591 | ||
Outstanding, Ending Balance | 11,184,450 | 2,633,175 | 1,383,591 | |
Stock options | ||||
Number of Options | ||||
Outstanding, Beginning Balance | 2,633,175 | 1,383,591 | 1,546,521 | |
Granted | 1,100,500 | 1,481,000 | 73,500 | |
Exercised | (739,956) | (82,083) | ||
Expired or Forfeited | (170,085) | (149,333) | (236,430) | |
Outstanding, Ending Balance | 2,823,634 | 2,633,175 | 1,383,591 | 1,546,521 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance | $ 3.09 | $ 4.77 | $ 5.11 | |
Granted | 17.23 | 1.66 | 2.36 | |
Exercised | 3.36 | 4.67 | ||
Expired or Forfeited | 8.58 | 3.68 | 6.21 | |
Outstanding, Ending Balance | $ 7.67 | $ 3.09 | $ 4.77 | $ 5.11 |
Weighted Average Remaining Life (Years) | ||||
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 11 months 12 days | 6 years 6 months 10 days | 6 years 3 months | 7 years 2 months 8 days |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used To Compute The Fair Value Of Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions for Black-Scholes: | |||
Volatility, Minimum | 82.80% | 73.30% | 79.40% |
Volatility, Maximum | 86% | 76.80% | 89.40% |
Risk-free interest rate, Minimum | 0.96% | 0.41% | 1.63% |
Risk-free interest rate, Maximum | 1.25% | 0.55% | 1.68% |
Expected annual dividends | $ 0 | $ 0 | $ 0 |
Value of options granted: | |||
Number of options granted | 1,100,500 | 1,481,000 | 73,500 |
Weighted average fair value per share | $ 12.40 | $ 1.08 | $ 1.71 |
Fair value of options granted | $ 13,642,976 | $ 1,602,267 | $ 125,814 |
Minimum | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 1 month 6 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Maximum | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 6 months | 6 years 7 months 6 days | 6 years 3 months 18 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 25, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stock-Based Compensation Plans | |||||
Number of shares authorized by plan | 12,734,454 | 9,216,208 | 6,712,900 | ||
Exercisable Options Outstanding Shares | 1,069,639 | 1,251,241 | 1,015,019 | ||
Weighted average exercise price per share, Exercisable | $ 5.70 | $ 4.17 | $ 4.63 | ||
Weighted average remaining contractual term on vested options | 6 years 6 months 29 days | 4 years 6 months 29 days | 5 years 4 months 24 days | ||
Unvested Options Outstanding, Shares | 1,753,995 | 1,381,934 | 368,572 | ||
Unvested Options Outstanding, Weighted average exercise price | $ 9.62 | $ 2.16 | $ 5.17 | ||
Unvested Options Outstanding Weighted average remaining life (years) | 8 years 9 months 18 days | 9 years 3 months 18 days | 8 years 6 months | ||
Aggregate intrinsic value of the options exercised | $ 13,697,906 | $ 869,177 | $ 493,500 | ||
Aggregate intrinsic value of the options outstanding | 9,314,887 | $ 16,444,695 | $ 0 | ||
Unrecognized stock compensation expense | $ 9,355,603 | ||||
Weighted average recognition period | 3 years 2 months 12 days | ||||
Weighted average fair value per share | $ 12.40 | $ 1.08 | $ 1.71 | ||
Aggregate fair value | $ 12,100,000 | $ 33,600,000 | |||
Company awarded shares | 4,768,293 | ||||
Share-Based compensation excludes the long term incentive plan expense | $ 4,047,444 | $ 2,805,842 | $ 1,498,357 | ||
Board of directors and management members | |||||
Stock-Based Compensation Plans | |||||
Stock award issued | 68,047 | ||||
Weighted average fair value per share | $ 16.90 | ||||
Aggregate fair value | $ 1,150,000 | ||||
Fair market value awards expensed over twelve months | 59,170 | ||||
Fair market value awards expensed over twenty four months | 8,877 | ||||
Restricted Stock | |||||
Stock-Based Compensation Plans | |||||
Fair value weighted average | $ 15.58 | ||||
Aggregate fair value | $ 4,674,000 | ||||
Amortization period | 36 months | ||||
Fair market value of shares held in escrow | $ 3,895,000 | ||||
Restricted Stock | Prepaid Expenses and Other Assets | |||||
Stock-Based Compensation Plans | |||||
Aggregate fair value | $ 779,000 | ||||
Restricted Stock | Director | |||||
Stock-Based Compensation Plans | |||||
Company awarded shares | 300,000 | ||||
Restricted Stock | Director | Continued employment | |||||
Stock-Based Compensation Plans | |||||
Award vesting period | 3 years | ||||
Company awarded shares | 50,000 | ||||
Restricted Stock | Director | Shares earned upon achievement of revenue | |||||
Stock-Based Compensation Plans | |||||
Award vesting period | 5 years | ||||
Company awarded shares | 250,000 | ||||
Common Stock | |||||
Stock-Based Compensation Plans | |||||
Company awarded shares | 4,768,293 | 8,647,059 | 5,479,454 | ||
2014 Plan | |||||
Stock-Based Compensation Plans | |||||
Percentage of maximum number of shares that may be issued in accordance with the plan | 20% | ||||
Number of shares authorized by plan | 12,734,454 | 9,130,710 | 6,627,402 | ||
Award expiration period | 10 years | ||||
Award vesting period | 4 years | ||||
2014 Plan | Minimum | |||||
Stock-Based Compensation Plans | |||||
Exercise price to fair value | 100% | ||||
Vesting rights percentage | 25% |
Long-term Incentive Plan (Detai
Long-term Incentive Plan (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 17, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Long-term Incentive Plan | |||||||
Exercise price | $ 5.70 | $ 4.17 | $ 4.63 | ||||
Share-based Compensation | $ 4,618,213 | $ 8,661,613 | $ 12,830,782 | $ 17,302,833 | $ 2,805,842 | $ 1,498,357 | |
Unrecognized stock-based compensation expense | $ 9,355,603 | ||||||
Recognition period | 3 years 2 months 12 days | ||||||
Options available in equity market and operational milestone | 5,409,000 | ||||||
Equity Market Capitalization Targets | |||||||
Long-term Incentive Plan | |||||||
Options available in equity market and operational milestone | 2,704,500 | ||||||
Annual Revenue Targets | |||||||
Long-term Incentive Plan | |||||||
Options available in equity market and operational milestone | 1,893,150 | ||||||
Annual EBITDA Margins Before Non-Cash Charges Targets | |||||||
Long-term Incentive Plan | |||||||
Options available in equity market and operational milestone | 811,350 | ||||||
Long-term Incentive Plan 2021 | |||||||
Long-term Incentive Plan | |||||||
Share-based Compensation | $ 13,255,388 | 0 | 0 | ||||
Stock options | Long-term Incentive Plan 2014 | |||||||
Long-term Incentive Plan | |||||||
Granted | 5,784,000 | ||||||
Exercise price | $ 19 | ||||||
Share-based Compensation | 13,255,388 | $ 0 | $ 0 | ||||
Stock options | Vest immediately | Long-term Incentive Plan 2014 | |||||||
Long-term Incentive Plan | |||||||
Options vested | $ 375,000 | ||||||
Stock options tied to equity market capitalization milestone | Long-term Incentive Plan 2014 | |||||||
Long-term Incentive Plan | |||||||
Unrecognized stock-based compensation expense | 28,340,458 | ||||||
Amount of threshold additional stock based compensation expense | $ 34,100,000 | ||||||
Stock options tied to equity market capitalization milestone | Maximum | Long-term Incentive Plan 2014 | |||||||
Long-term Incentive Plan | |||||||
Recognition period | 6 years |
Long-term Incentive Plan - Assu
Long-term Incentive Plan - Assumptions Used To Compute The Fair Value And Estimated Value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assumptions | |||
Volatility, Minimum | 82.80% | 73.30% | 79.40% |
Volatility, Maximum | 86% | 76.80% | 89.40% |
Risk-free interest rate, Minimum | 0.96% | 0.41% | 1.63% |
Risk-free interest rate, Maximum | 1.25% | 0.55% | 1.68% |
Value of options granted: | |||
Number of options granted | 1,100,500 | 1,481,000 | 73,500 |
Weighted average fair value per share | $ 12.40 | $ 1.08 | $ 1.71 |
Fair value of options granted | $ 13,642,976 | $ 1,602,267 | $ 125,814 |
Minimum | |||
Assumptions | |||
Expected term in years | 6 years 1 month 6 days | 6 years 2 months 12 days | 6 years 2 months 12 days |
Maximum | |||
Assumptions | |||
Expected term in years | 6 years 6 months | 6 years 7 months 6 days | 6 years 3 months 18 days |
Equity Market Capitalization Targets [Member] | |||
Assumptions | |||
Volatility | 70.58% | ||
Risk-free interest rate, Minimum | 0.07% | ||
Risk-free interest rate, Maximum | 1.28% | ||
Expected annual dividends | 0% | ||
Value of options granted: | |||
Number of options granted | 3,079,500 | ||
Weighted average fair value per share | $ 10.92 | ||
Fair value of options granted | $ 33,623,423 | ||
Equity Market Capitalization Targets [Member] | Minimum | |||
Assumptions | |||
Expected term in years | 1 year 4 months 24 days | ||
Equity Market Capitalization Targets [Member] | Maximum | |||
Assumptions | |||
Expected term in years | 5 years 2 months 12 days | ||
Performance-based awards | |||
Assumptions | |||
Volatility, Minimum | 84.67% | ||
Volatility, Maximum | 116.39% | ||
Risk-free interest rate, Minimum | 1.03% | ||
Risk-free interest rate, Maximum | 1.63% | ||
Expected annual dividends | 0% | ||
Value of options granted: | |||
Number of options granted | 2,704,500 | ||
Weighted average fair value per share | $ 15.54 | ||
Fair value of options granted | $ 42,040,151 | ||
Performance-based awards | Minimum | |||
Assumptions | |||
Expected term in years | 6 years | ||
Performance-based awards | Maximum | |||
Assumptions | |||
Expected term in years | 10 years |
Long-term Incentive Plan - LTIP
Long-term Incentive Plan - LTIP (Details) | 12 Months Ended |
Dec. 31, 2021 USD ($) shares | |
Long-term Incentive Plan | |
Percentage of weightage for equity market capitalization target | 50% |
Percentage of weightage for last twelve months revenue target | 35% |
Percentage of weightage for last twelve months EBITDA margin before non-cash charges | 15% |
Options available in equity market and operational milestone | shares | 5,409,000 |
Stock option tied to equity market and operational milestones | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 5,409,000 |
Equity market and operational milestone one | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 2,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 25,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 0% |
Equity market and operational milestone two | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 3,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 50,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 2% |
Equity market and operational milestone three | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 4,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 100,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 4% |
Equity market and operational milestone four | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 5,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 200,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 6% |
Equity market and operational milestone five | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 586,000 |
Amount of equity market capitalization target | $ 6,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 300,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 8% |
Equity market and operational milestone six | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 586,000 |
Amount of equity market capitalization target | $ 7,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 450,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 10% |
Equity market and operational milestone seven | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 561,000 |
Amount of equity market capitalization target | $ 8,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 675,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 12% |
Equity market and operational milestone eight | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 491,000 |
Amount of equity market capitalization target | $ 9,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 1,000,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 14% |
Equity market and operational milestone nine | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 441,000 |
Amount of equity market capitalization target | $ 10,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 1,500,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 16% |
Right-of-Use Assets and Liabi_3
Right-of-Use Assets and Liabilities - Operating Leases (Details) | Dec. 31, 2021 USD ($) |
Right-of-Use Assets and Liabilities | |
2022 | $ 559,916 |
2023 | 546,916 |
2024 | 45,576 |
Total Future Lease Payments | 1,152,408 |
Less: Imputed Interest | (35,386) |
Total Lease Liability Balance | $ 1,117,022 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Right-of-Use Assets and Liabilities | |||
Term of contract | 5 years | ||
Operating lease, option to extend | true | ||
Renewal term | 3 years | ||
Operating lease costs | $ 630,085 | $ 559,975 | $ 572,767 |
Weighted average discount rate | 4.50% | ||
Weighted average remaining term | 2 years 1 month 6 days |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Details) - USD ($) | 12 Months Ended | |||
Jul. 01, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefit Plans | ||||
Percentage of employee deferrals | 100% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3% | |||
Defined Contribution Plan, Cost | $ 280,660 | $ 148,131 | $ 142,414 |
Geographic and Other Financia_3
Geographic and Other Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 3,314,000 | $ 3,018,774 | $ 2,916,538 | $ 3,915,389 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 1,953,000 | $ 1,159,000 | $ 2,186,000 | $ 1,373,000 | $ 13,164,933 | $ 11,581,496 | $ 6,670,604 |
Revenue | Geographic Concentration Risk 1 [Member] | |||||||||||||||
Revenue | $ 13,165,000 | $ 11,581,000 | $ 6,671,000 | ||||||||||||
Concentration Risk, Percentage | 100% | 100% | 100% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | North America | |||||||||||||||
Revenue | $ 5,003,000 | $ 4,531,000 | $ 2,781,000 | ||||||||||||
Concentration Risk, Percentage | 38% | 40% | 42% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Europe | |||||||||||||||
Revenue | $ 4,683,000 | $ 3,290,000 | $ 2,058,000 | ||||||||||||
Concentration Risk, Percentage | 36% | 28% | 31% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Asia-Pacific | |||||||||||||||
Revenue | $ 2,960,000 | $ 3,383,000 | $ 1,656,000 | ||||||||||||
Concentration Risk, Percentage | 22% | 29% | 25% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Others | |||||||||||||||
Revenue | $ 519,000 | $ 377,000 | $ 176,000 | ||||||||||||
Concentration Risk, Percentage | 4% | 3% | 2% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | |||||||||||||||
Revenue | $ 13,165,000 | $ 11,581,000 | $ 6,671,000 | ||||||||||||
Concentration Risk, Percentage | 100% | 100% | 100% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | US | |||||||||||||||
Revenue | $ 4,767,000 | $ 4,364,000 | $ 2,673,000 | ||||||||||||
Concentration Risk, Percentage | 36% | 38% | 40% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Japan | |||||||||||||||
Revenue | $ 2,078,000 | $ 2,502,000 | $ 873,000 | ||||||||||||
Concentration Risk, Percentage | 16% | 22% | 13% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | China | |||||||||||||||
Revenue | $ 205,000 | $ 68,000 | $ 972,000 | ||||||||||||
Concentration Risk, Percentage | 2% | 1% | 15% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Germany | |||||||||||||||
Revenue | $ 322,000 | $ 378,000 | $ 769,000 | ||||||||||||
Concentration Risk, Percentage | 2% | 3% | 12% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Others | |||||||||||||||
Revenue | $ 5,793,000 | $ 4,269,000 | $ 1,384,000 | ||||||||||||
Concentration Risk, Percentage | 44% | 36% | 20% |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Unaudited [Abstract] | |||||||||||||||||
Revenue | $ 3,314,000 | $ 3,018,774 | $ 2,916,538 | $ 3,915,389 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 1,953,000 | $ 1,159,000 | $ 2,186,000 | $ 1,373,000 | $ 13,164,933 | $ 11,581,496 | $ 6,670,604 | ||
Gross profit (loss) | 209,000 | 583,337 | 579,372 | 1,079,591 | 703,000 | 348,000 | 796,000 | 81,000 | (4,369,000) | (231,000) | 152,000 | 40,000 | 2,450,845 | 1,927,609 | (4,408,121) | ||
Net loss | $ (11,493,000) | $ (10,487,548) | $ (9,245,472) | $ (9,151,370) | $ (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (9,583,000) | $ (5,477,000) | $ (5,056,000) | $ (6,360,000) | $ (18,396,842) | $ (28,884,390) | $ (40,377,160) | $ (17,952,172) | $ (26,476,370) |
Net loss per share, basic | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.31) | $ (0.18) | $ (0.20) | $ (0.25) | $ (0.66) | $ (0.53) | $ (0.94) | ||
Net loss per share, diluted | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.31) | $ (0.18) | $ (0.20) | $ (0.25) | $ (0.66) | $ (0.53) | $ (0.94) | ||
Net loss attributable to common stockholders | $ (11,493,000) | $ (10,488,000) | $ (9,245,000) | $ (9,151,000) | $ (4,120,000) | $ (5,281,000) | $ (4,746,000) | $ (5,861,000) | $ (10,081,000) | $ (5,967,000) | $ (5,534,000) | $ (6,826,000) | $ (40,377,160) | $ (20,008,322) | $ (28,408,230) |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualification Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance at Beginning of Period | $ 3,886 | $ 4,788 | $ 371 |
Charged to Expenses | 520 | 1,274 | 4,566 |
Deductions | (3,279) | (2,176) | (149) |
Balance at End of Period | 1,127 | 3,886 | 4,788 |
Doubtful Accounts | |||
Balance at Beginning of Period | 0 | 0 | 7 |
Charged to Expenses | 0 | 0 | (7) |
Deductions | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Inventory | |||
Balance at Beginning of Period | 3,886 | 4,788 | 364 |
Charged to Expenses | 520 | 1,274 | 4,573 |
Deductions | (3,279) | (2,176) | (149) |
Balance at End of Period | $ 1,127 | $ 3,886 | $ 4,788 |