Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 09, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
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, Suite A | |
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, par value $0.001 | |
Trading Symbol | VUZI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,739,650 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and Cash Equivalents | $ 90,374,403 | $ 120,203,873 |
Accounts Receivable | 3,118,036 | 2,242,429 |
Accrued Revenues in Excess of Billings | 393,250 | |
Inventories, Net | 12,229,472 | 12,151,982 |
Manufacturing Vendor Prepayments | 430,721 | 504,051 |
Prepaid Expenses and Other Assets | 2,465,117 | 2,047,819 |
Total Current Assets | 109,010,999 | 137,150,154 |
Long-Term Assets | ||
Fixed Assets, Net | 9,524,178 | 5,190,438 |
Operating Lease Right-of-Use Asset | 707,574 | 1,117,022 |
Patents and Trademarks, Net | 2,141,157 | 1,988,370 |
Technology Licenses, Net | 15,657,333 | 1,389,936 |
Intangible Asset, Net | 147,548 | |
Other Assets, Net | 1,716,810 | 1,483,589 |
Total Assets | 138,758,051 | 148,467,057 |
Current Liabilities | ||
Accounts Payable | 2,196,590 | 2,054,762 |
Unearned Revenue | 24,370 | 27,797 |
Accrued Expenses | 1,174,372 | 1,419,308 |
Licensing Fees Commitment | 4,250,000 | |
Income and Other Taxes Payable | 46,604 | 120,242 |
Operating Lease Right-of-Use Liability | 525,882 | 534,146 |
Total Current Liabilities | 8,217,818 | 4,156,255 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 181,692 | 582,876 |
Licensing Fees Commitment | 4,750,000 | |
Total Long-Term Liabilities | 4,931,692 | 582,876 |
Total Liabilities | 13,149,510 | 4,739,131 |
Stockholders' Equity | ||
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 63,776,335 shares issued and 63,739,650 shares outstanding as of September 30, 2022 and 63,672,268 shares issued and outstanding as of December 31, 2021. | 63,777 | 63,672 |
Additional Paid-in Capital | 358,872,631 | 346,736,397 |
Accumulated Deficit | (233,076,810) | (203,072,143) |
Treasury Stock, at cost, 36,685 shares as of September 30, 2022 and 0 shares as of December 31, 2021 | (251,057) | |
Total Stockholders' Equity | 125,608,541 | 143,727,926 |
Total Liabilities and Stockholders' Equity | $ 138,758,051 | $ 148,467,057 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 63,776,335 | 63,672,268 |
Common Stock, Shares Outstanding | 63,739,650 | 63,672,268 |
Common shares held in treasury | 36,685 | 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock | Total |
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 | 14,377,950 | 14,378,318 | |||
Stock-Based Compensation Expense (in shares) | 368,047 | |||||
Stock Option Exercises | $ 621 | 713,083 | 713,704 | |||
Stock Option Exercises (in shares) | 620,784 | |||||
Stock Warrant Exercises | $ 7,274 | 34,697,794 | 34,705,068 | |||
Stock Warrant Exercises (in shares) | 7,274,328 | |||||
Proceeds from Common Stock Offering | $ 4,768 | 97,784,270 | 97,789,038 | |||
Proceeds from Common Stock Offering (in shares) | 4,768,293 | |||||
Direct Costs of Common Stock Offering | (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 & Preferred Dividend Settlement | $ (50) | $ 4,963 | (10,004,913) | (10,000,000) | ||
Preferred Stock Converted & Preferred Dividend Settlement (in shares) | (49,626) | 4,962,600 | ||||
Net Loss | (28,884,390) | (28,884,390) | ||||
Balance at Sep. 30, 2021 | $ 63,631 | 342,644,630 | (191,579,373) | 151,128,888 | ||
Balance (in shares) at Sep. 30, 2021 | 63,631,054 | |||||
Balance at Jun. 30, 2021 | $ 63,278 | 336,770,866 | (181,091,825) | 155,742,319 | ||
Balance (in shares) at Jun. 30, 2021 | 63,278,096 | |||||
Stock-Based Compensation Expense | $ 300 | 5,833,873 | 5,834,173 | |||
Stock-Based Compensation Expense (in shares) | 300,000 | |||||
Stock Option Exercises | $ 53 | 39,891 | 39,944 | |||
Stock Option Exercises (in shares) | 52,958 | |||||
Net Loss | (10,487,548) | (10,487,548) | ||||
Balance at Sep. 30, 2021 | $ 63,631 | 342,644,630 | (191,579,373) | 151,128,888 | ||
Balance (in shares) at Sep. 30, 2021 | 63,631,054 | |||||
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 | |||||
Stock-Based Compensation Expense | $ (2) | 12,087,836 | 12,087,834 | |||
Stock-Based Compensation Expense (in shares) | (3,017) | |||||
Stock Option Exercises | $ 107 | 48,398 | 48,505 | |||
Stock Option Exercises (in shares) | 107,084 | |||||
Purchases of Treasury Stock | $ (251,057) | $ (251,057) | ||||
Purchases of Treasury Stock (in Shares) | (36,685) | 36,685 | ||||
Net Loss | (30,004,667) | $ (30,004,667) | ||||
Balance at Sep. 30, 2022 | $ 63,777 | 358,872,631 | (233,076,810) | $ (251,057) | 125,608,541 | |
Balance (in shares) at Sep. 30, 2022 | 63,776,335 | (36,685) | ||||
Balance at Jun. 30, 2022 | $ 64,026 | 355,322,990 | (223,599,811) | $ (251,057) | 131,536,148 | |
Balance (in shares) at Jun. 30, 2022 | 64,025,640 | (36,685) | ||||
Stock-Based Compensation Expense | $ (291) | 3,549,683 | 3,549,392 | |||
Stock-Based Compensation Expense (in shares) | (291,667) | |||||
Stock Option Exercises | $ 42 | (42) | ||||
Stock Option Exercises (in shares) | 42,362 | |||||
Net Loss | (9,476,999) | (9,476,999) | ||||
Balance at Sep. 30, 2022 | $ 63,777 | $ 358,872,631 | $ (233,076,810) | $ (251,057) | $ 125,608,541 | |
Balance (in shares) at Sep. 30, 2022 | 63,776,335 | (36,685) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Sales: | ||||
Total Sales | $ 3,426,823 | $ 3,018,774 | $ 8,937,633 | $ 9,850,702 |
Cost of Sales: | ||||
Cost of Sales - Depreciation and Amortization | 221,772 | 252,759 | 676,720 | 953,614 |
Total Cost of Sales | 2,558,602 | 2,622,812 | 7,328,335 | 8,330,733 |
Gross Profit | 868,221 | 395,962 | 1,609,298 | 1,519,969 |
Operating Expenses: | ||||
Research and Development | 3,440,685 | 3,397,118 | 9,540,272 | 8,326,431 |
Selling and Marketing | 1,980,748 | 1,653,013 | 5,895,332 | 4,305,632 |
General and Administrative | 4,854,014 | 5,463,247 | 15,307,242 | 16,672,046 |
Depreciation and Amortization | 510,099 | 246,902 | 1,149,046 | 731,035 |
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 48,075 | 7,544 | 97,676 | 66,040 |
Total Operating Expenses | 10,833,621 | 10,767,824 | 31,989,568 | 30,185,092 |
Loss From Operations | (9,965,400) | (10,371,862) | (30,380,270) | (28,665,123) |
Other Income (Expense): | ||||
Investment Income | 572,721 | 29,843 | 690,028 | 45,448 |
Income and Other Taxes | (19,768) | (105,526) | (98,727) | (138,034) |
Foreign Exchange Loss | (64,552) | (40,003) | (215,698) | (126,681) |
Total Other Income (Expense), Net | 488,401 | (115,686) | 375,603 | (219,267) |
Loss Before Provision for Income Taxes | (9,476,999) | (10,487,548) | (30,004,667) | (28,884,390) |
Net Loss | $ (9,476,999) | $ (10,487,548) | $ (30,004,667) | $ (28,884,390) |
Basic Loss per Common Share | $ (0.15) | $ (0.17) | $ (0.47) | $ (0.48) |
Diluted Loss per Common Share | $ (0.15) | $ (0.17) | $ (0.47) | $ (0.48) |
Weighted-average Shares Outstanding - Basic | 63,776,154 | 63,520,878 | 63,724,982 | 60,278,923 |
Weighted-average Shares Outstanding - Diluted | 63,776,154 | 63,520,878 | 63,724,982 | 60,278,923 |
Sales of Products | ||||
Sales: | ||||
Total Sales | $ 2,537,539 | $ 3,018,774 | $ 7,939,483 | $ 9,657,589 |
Cost of Sales: | ||||
Cost of Sales | 2,034,123 | $ 2,370,053 | 6,289,612 | 7,347,450 |
Sales of Engineering Services | ||||
Sales: | ||||
Total Sales | 889,284 | 998,150 | 193,113 | |
Cost of Sales: | ||||
Cost of Sales | $ 302,707 | $ 362,003 | $ 29,669 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (30,004,667) | $ (28,884,390) |
Non-Cash Adjustments | ||
Depreciation and Amortization | 1,700,766 | 1,453,367 |
Amortization of Software Development Costs and Prepaid Licenses in Cost of Sales | 125,000 | 180,296 |
Stock-Based Compensation | 12,016,334 | 12,830,782 |
Impairment of Patents and Trademarks | 97,676 | 66,040 |
Loss on Fixed Asset Disposal | 83,908 | |
(Increase) Decrease in Operating Assets | ||
Accounts Receivable | (875,607) | 330,092 |
Accrued Revenues in Excess of Billings | (393,250) | |
Inventories, Net | (77,490) | (3,779,513) |
Manufacturing Vendor Prepayments | 73,330 | (1,417,100) |
Prepaid Expenses and Other Assets | (417,298) | (238,066) |
Increase (Decrease) in Operating Liabilities | ||
Accounts Payable | 141,828 | (34,346) |
Accrued Expenses | (244,935) | 602,293 |
Unearned Revenue | (3,425) | (26,901) |
Income and Other Taxes Payable | (73,637) | (75,890) |
Net Cash Flows Used in Operating Activities | (17,935,375) | (18,909,428) |
Cash Flows from Investing Activities | ||
Purchases of Fixed Assets | (5,203,562) | (3,592,703) |
Investments in Patents and Trademarks | (362,981) | (442,582) |
Investments in Licenses, Intangibles and Other Assets | (6,125,000) | (305,158) |
Net Cash Flows Used in Investing Activities | (11,691,543) | (4,340,443) |
Cash Flows from Financing Activities | ||
Proceeds from Exercise of Warrants | 34,705,068 | |
Proceeds from Exercise of Stock Options | 48,505 | 713,703 |
Proceeds from Common Stock Offering, Net | 91,652,617 | |
Purchases of Treasury Stock | (251,057) | |
Preferred Dividend Settlement Payment | (10,000,000) | |
Employee Tax Withholdings Payment | (1,144,364) | |
Net Cash Flows (Used in) Provided from Financing Activities | (202,552) | 115,927,024 |
Net (Decrease) Increase in Cash and Cash Equivalents | (29,829,470) | 92,677,153 |
Cash and Cash Equivalents - Beginning of Period | 120,203,873 | 36,069,508 |
Cash and Cash Equivalents - End of Period | 90,374,403 | 128,746,661 |
Supplemental Disclosures | ||
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | 1,204,942 | 1,729,646 |
Non-Cash Investment in Licenses | 9,000,000 | 1,341,614 |
Stock-Based Compensation Expense - Expensed less Previously Issued | $ (71,502) | $ (1,547,536) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications may have been made to prior periods to conform with current reporting impacting Costs of Sales, Gross Profit and Depreciation and Amortization. The results of the Company’s operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2021, as reported in the Company’s Annual Report on Form 10-K/A filed with the SEC on October 25, 2022. Restatement As described in additional detail in Note 2 to the financial statements included in its 2021 Form 10-K/A, the Company restated its previous unaudited quarterly results in the Form 10-K for the year ended December 31, 2021. Previously filed 2021 quarterly reports on Form 10-Q for the periods affected by the restatement were not amended and should no longer be relied upon. See Note 2, Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements Quarterly Financial Information (Unaudited) The impact of the restatement on the unaudited quarterly financial statements is presented below. The impact of the restatement to the Consolidated Balance Sheet: 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 impact of the restatement to the Consolidated Statements of Operation: For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously As Previously Condensed Statement of Operations Reported Adjustment As Restated Reported Adjustment As Restated Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 — 2,435,437 7,608,401 — 7,608,401 Gross Profit 583,337 — 583,337 2,242,301 — 2,242,301 Operating Expenses: Research and Development 3,270,255 126,863 3,397,118 8,050,915 275,516 8,326,431 Selling and Marketing 1,589,582 63,431 1,653,013 4,167,874 137,758 4,305,632 General and Administrative 3,112,059 2,351,188 5,463,247 11,565,816 5,106,230 16,672,046 Depreciation and Amortization 434,277 — 434,277 1,453,367 — 1,453,367 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 8,413,717 2,541,482 10,955,199 25,387,920 5,519,504 30,907,424 Loss From Operations (7,830,380) (2,541,482) (10,371,862) (23,145,619) (5,519,504) (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (7,946,066) $ (2,541,482) $ (10,487,548) $ (23,364,886) $ (5,519,504) $ (28,884,390) Basic and Diluted Loss per Common Share $ (0.13) $ (0.04) $ (0.17) $ (0.39) $ (0.10) $ (0.48) The impact of the restatement to the Statement of Changes in Stockholders’ Equity: 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 Statement of Cash Flows: 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) Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Operations for the three and nine months ended September 30, 2021, to reclassify depreciation expense related to our manufacturing operations from the amounts of reported depreciation and amortization expenses originally included in Operating Expenses. This change in classification does not affect previously reported Net Loss or reported Cash Flows Used in Operating Activities in the Consolidated Statements of Cash Flows or Consolidated Balance Sheets. The below table is a summary of the impact to these reclassifications: For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) Condensed Statement of Operations As Restated Reclassification Revised As Restated Reclassification Revised Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 187,375 2,622,812 7,608,401 722,332 8,330,733 Gross Profit 583,337 (187,375) 395,962 2,242,301 (722,332) 1,519,969 Operating Expenses: — Research and Development 3,397,118 — 3,397,118 8,326,431 — 8,326,431 Selling and Marketing 1,653,013 — 1,653,013 4,305,632 — 4,305,632 General and Administrative 5,463,247 — 5,463,247 16,672,046 — 16,672,046 Depreciation and Amortization 434,277 (187,375) 246,902 1,453,367 (722,332) 731,035 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 10,955,199 (187,375) 10,767,824 30,907,424 (722,332) 30,185,092 Loss From Operations (10,371,862) — (10,371,862) (28,665,123) — (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (10,487,548) $ — $ (10,487,548) $ (28,884,390) $ — $ (28,884,390) Customer Concentrations For the three months ended September 30, 2022, one customer represented 21% of total product revenue and two customers represented 100% of engineering services revenue. For the three months ended September 30, 2021, two customers represented 12% and 10% of total product revenue. For the nine months ended September 30, 2022, one customer represented 20% of total product revenue and two customers represented 100% of engineering services revenue. For the nine months ended September 30, 2021, no one customer represented more than 10% of total product revenue and two customers represented 100% of engineering services revenue. As of September 30, 2022, three customers represented 30%, 13% and 11% of accounts receivable, respectively. As of December 31, 2021, three customers represented 27%, 20% and 10% of accounts receivable, respectively. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent re-issuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. The following table summarizes the revenue recognized by major product line: Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues Smart Glasses Sales $ 2,537,539 $ 3,018,774 $ 7,939,483 $ 9,657,589 Engineering Services 889,284 — 998,150 193,113 Total Revenue $ 3,426,823 $ 3,018,774 $ 8,937,633 $ 9,850,702 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 also records revenue for performance obligations relating to our engineering services over time by using the input method to measure the 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, using percentage-of-completion, 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 The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the nine months ended September 30, 2022: % of Total Net Sales 2022 2021 Point-in-Time 89 % 98 % Over Time – Input Method 11 % 2 % Total 100 % 100 % Remaining Performance Obligations As of September 30, 2022, the Company had approximately $320,000 of remaining performance obligations under two current waveguide development projects, which represents the remainder of the total transaction prices totaling $1,318,000 under these development agreements, less revenue recognized under percentage of completion to date. The Company currently expects to recognize the remaining revenue relating to these existing performance obligations of $320,000 in the fourth quarter of 2022 The Company had no material outstanding performance obligations related to product sales, other than its standard product warranty. |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Loss Per Share | |
Loss Per Share | Note 3 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are anti-dilutive. Since the Company reported a net loss for the three and nine months ended September 30, 2022 and 2021, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. At September 30, 2022 and 2021, there were 8,532,349 and 8,612,869 common stock share equivalents, respectively, potentially exercisable or issuable under conversion or exercise of stock options that could dilute basic earnings per share in the future. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 2022 | |
Inventories, Net | |
Inventories, Net | Note 4 – Inventories, Net Inventories are stated at the lower of cost and net realizable value, and consisted of the following: September 30, December 31, 2022 2021 Purchased Parts and Components $ 10,811,529 $ 11,580,766 Work-in-Process 320,152 226,126 Finished Goods 2,249,105 1,472,534 Less: Reserve for Obsolescence (1,151,314) (1,127,444) Inventories, Net $ 12,229,472 $ 12,151,982 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2022 | |
Fixed Assets | |
Fixed Assets | Note 5 – Fixed Assets September 30, December 31, 2022 2021 Tooling and Manufacturing Equipment $ 11,639,721 $ 6,612,811 Leaseholds 826,329 797,059 Computers and Purchased Software 1,054,127 980,561 Furniture and Equipment 2,673,787 2,661,346 16,193,964 11,051,777 Less: Accumulated Depreciation (6,669,786) (5,861,339) Fixed Assets, Net $ 9,524,178 $ 5,190,438 On April 27, 2022, the Company signed a purchase order for new manufacturing equipment upgrades to further our waveguide production capabilities. The purchase order totaled On May 12, 2022, the Company signed a series of agreements with Atomistic SAS, which provided for an exclusive license by the Company of key m all of which is custom to the Company. During the three months ended September 30, 2022, the Company made an additional progress payment of $1,500,000 towards this custom chip tooling asset, in addition to the $4,029,120 progress payments made to-date. These payments, totaling $5,529,120 are included in construction-in-progress in Tooling and Manufacturing Equipment until the asset is placed into service in the next 18 to 21 months . The remaining $9,470,880 commitment towards this custom backplane is expected to be paid over the same period as referenced above. |
Technology Licenses, Net
Technology Licenses, Net | 9 Months Ended |
Sep. 30, 2022 | |
Technology Licenses, Net | |
Technology Licenses, Net | Note 6 – Technology Licenses, Net September 30, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions 15,000,000 1,404,750 Less: Accumulated Amortization (1,786,023) (1,053,420) Licenses, Net $ 15,657,333 $ 1,389,936 As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS (the “Atomistic Agreements”), which provided for an exclusive license of key m m As of the effective date of the Atomistic Agreements, the Company recorded an intangible technology license asset of $15,000,000 and an accrued liability (short-term and long-term) defined as a Licensing Fees Commitment, of $15,000,000 . This intangible asset is to be amortized over a towards this commitment and recorded a total of $375,000 and $562,500, in the three and nine months ended Spetember 30, 2022, respectively, in amortization relating to this intangible asset. The remaining balance of $9,000,000 associated with this contractual obligation is to be paid over the next 15 months. |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets | |
Other Assets | Note 7 - Other Assets September 30, December 31, 2022 2021 Private Corporation Investments (at cost) $ 450,000 $ 450,000 Software Development Costs 750,000 500,000 Additions 125,000 250,000 Less: Accumulated Amortization (333,333) (208,334) Software Development Costs, Net 541,667 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 725,143 491,923 Total Other Assets $ 1,716,810 $ 1,483,589 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 is being amortized on a straight-line basis over its expected product life cycle of thirty-six |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Expenses | |
Accrued Expenses | Note 8 – Accrued Expenses Accrued expenses consisted of the following: September 30, December 31, 2022 2021 Accrued Wages and Related Costs $ 350,409 $ 683,044 Accrued Professional Services 245,660 551,220 Accrued Warranty Obligations 170,934 185,044 Other Accrued Expenses 407,369 — Total $ 1,174,372 $ 1,419,308 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve The changes in the Company’s accrued warranty obligations for the nine months ended September 30, 2022 were as follows: Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (252,294) Warranties Issued During Year 238,184 Accrued Warranty Obligations at September 30, 2022 $ 170,934 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes | |
Income Taxes | Note 9 – Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets. |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2022 | |
Capital Stock | |
Capital Stock | Note 10 – Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of September 30, 2022 and December 31, 2021. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil shares of Series A Preferred Stock issued and outstanding on September 30, 2022 and December 31, 2021, respectively. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 63,776,335 shares issued and 63,739,650 shares outstanding as of September 30, 2022 and 63,672,268 shares issued In connection with the Atomistic Agreements, the Company will, upon the achievement or waiver of performance milestones contained in the Atomistic Agreements, be committed to pay $2,500,000 and to issue a minimum of 1,750,000 common shares of Vuzix to the stockholders of Atomistic (as a portion of the consideration for certain shares of Atomistic) which would result in Vuzix obtaining Series A Convertible Preferred shares in Atomistic that could ultimately be converted into common shares of Atomistic, with Atomistic becoming a subsidiary of the Company, and Vuzix ultimately owning 100% of Atomistic. The share issuances by the Company may not commence any earlier than April 2023 and are expected to be issued over the next 15 Treasury Stock may be suspended or discontinued at any time at the Company’s sole discretion. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11 – Stock-Based Compensation A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the nine months ended September 30, 2022 is as follows: Weighted Number of Average Options Exercise Price Outstanding at December 31, 2021 2,823,634 $ 7.67 Granted 183,500 5.92 Exercised (137,866) 2.62 Expired or Forfeited (120,919) 8.27 Outstanding at September 30, 2022 2,748,349 $ 7.37 The weighted average remaining contractual term for all options as of September 30, 2022 and December 31, 2021 was 7.37 years and 7.95 years, respectively. As of September 30, 2022, there were 1,409,352 options that were fully-vested and exercisable at a weighted average exercise price of $6.91 per share. The weighted average remaining contractual term of the vested options is 6.5 years. As of September 30, 2022, there were 1,338,997 unvested options exercisable at a weighted average exercise price of $9.75 per share. The weighted average remaining contractual term of the unvested options is 8.3 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At September 30, 2022, the Company had $9,293,768 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 2.6 years. For the three months ended September 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $1,157,556 and $1,137,862, respectively. For the nine months ended September 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $3,730,899 and $2,606,700, respectively |
Long-term Incentive Plan
Long-term Incentive Plan | 9 Months Ended |
Sep. 30, 2022 | |
Long-term Incentive Plan | |
Long-term Incentive Plan | Note 12 – 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 three months ended September 30, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $2,658,294 and $3,031,307, respectively, for options that vested or are probable to vest. For the nine months ended September 30, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $8,285,435 and $10,224,082, respectively, for options that vested or are probable to vest. These expenses are presented in the same financial statement line items in the Statements of Operations as the cash-based compensation expenses for the same employees. 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 September 30, 2022, we had $20,054,731 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 six 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 leaves the Company prior to the expiration of the option life for market capitalization milestone or the performance awards are 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 September 30, 2022, 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 unvested remaining equity market capitalization 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 September 30, 2022 and 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 Last Twelve Months Revenue Last Twelve Months 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 |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2022 | |
Litigation | |
Litigation | Note 13 – Litigation We are not currently involved in any actual or pending legal proceedings or litigation that we consider to be material, and we are not aware of any such material proceedings contemplated by or against us or involving our property. |
Right-of-Use Assets and Liabili
Right-of-Use Assets and Liabilities | 9 Months Ended |
Sep. 30, 2022 | |
Right-of-Use Assets and Liabilities | |
Right-of-Use Assets and Liabilities | Note 14 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of September 30, 2022 were as follows: 2022 $ 137,812 2023 546,916 2024 45,576 Total Future Lease Payments 730,304 Less: Imputed Interest (22,730) Total Lease Liability Balance $ 707,574 Operating lease costs under the operating leases totaled $160,767 and $172,014 for the three months ended September 30, 2022 and 2021, respectively. Operating lease costs under the operating leases totaled $486,409 and $460,434 for the nine months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the weighted average discount rate was 4.5% and the weighted average remaining lease term was 1.3 years. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events | |
Subsequent Events | Note 15 – Subsequent Events On October 20, 2022 the Company purchased Moviynt®, a US-based SAP Certified ERP platform software solution provider, to support handheld mobile phones and scanners used in logistics, warehousing and manufacturing applications. Starting in Q4-2022 its operations will be presented on a consolidated basis. The purchase price allocation has not been finalized, due to the timing of the acquisition and the filing date of this Quarterly Report on Form 10-Q. Therefore, the allocation of the purchase price to the assets acquired and liabilities assumed, including values to be recognized for goodwill and other intangible assets, will be disclosed in the Annual Report on Form 10-K for the year ending December 31, 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation | |
Basis of Presentation | The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications may have been made to prior periods to conform with current reporting impacting Costs of Sales, Gross Profit and Depreciation and Amortization. The results of the Company’s operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2021, as reported in the Company’s Annual Report on Form 10-K/A filed with the SEC on October 25, 2022. |
Restatement | Restatement As described in additional detail in Note 2 to the financial statements included in its 2021 Form 10-K/A, the Company restated its previous unaudited quarterly results in the Form 10-K for the year ended December 31, 2021. Previously filed 2021 quarterly reports on Form 10-Q for the periods affected by the restatement were not amended and should no longer be relied upon. See Note 2, Restatement of Previously Issued 2021 Unaudited Quarterly Financial Statements Quarterly Financial Information (Unaudited) The impact of the restatement on the unaudited quarterly financial statements is presented below. The impact of the restatement to the Consolidated Balance Sheet: 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 impact of the restatement to the Consolidated Statements of Operation: For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously As Previously Condensed Statement of Operations Reported Adjustment As Restated Reported Adjustment As Restated Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 — 2,435,437 7,608,401 — 7,608,401 Gross Profit 583,337 — 583,337 2,242,301 — 2,242,301 Operating Expenses: Research and Development 3,270,255 126,863 3,397,118 8,050,915 275,516 8,326,431 Selling and Marketing 1,589,582 63,431 1,653,013 4,167,874 137,758 4,305,632 General and Administrative 3,112,059 2,351,188 5,463,247 11,565,816 5,106,230 16,672,046 Depreciation and Amortization 434,277 — 434,277 1,453,367 — 1,453,367 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 8,413,717 2,541,482 10,955,199 25,387,920 5,519,504 30,907,424 Loss From Operations (7,830,380) (2,541,482) (10,371,862) (23,145,619) (5,519,504) (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (7,946,066) $ (2,541,482) $ (10,487,548) $ (23,364,886) $ (5,519,504) $ (28,884,390) Basic and Diluted Loss per Common Share $ (0.13) $ (0.04) $ (0.17) $ (0.39) $ (0.10) $ (0.48) The impact of the restatement to the Statement of Changes in Stockholders’ Equity: 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 Statement of Cash Flows: 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) |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Operations for the three and nine months ended September 30, 2021, to reclassify depreciation expense related to our manufacturing operations from the amounts of reported depreciation and amortization expenses originally included in Operating Expenses. This change in classification does not affect previously reported Net Loss or reported Cash Flows Used in Operating Activities in the Consolidated Statements of Cash Flows or Consolidated Balance Sheets. The below table is a summary of the impact to these reclassifications: For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) Condensed Statement of Operations As Restated Reclassification Revised As Restated Reclassification Revised Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 187,375 2,622,812 7,608,401 722,332 8,330,733 Gross Profit 583,337 (187,375) 395,962 2,242,301 (722,332) 1,519,969 Operating Expenses: — Research and Development 3,397,118 — 3,397,118 8,326,431 — 8,326,431 Selling and Marketing 1,653,013 — 1,653,013 4,305,632 — 4,305,632 General and Administrative 5,463,247 — 5,463,247 16,672,046 — 16,672,046 Depreciation and Amortization 434,277 (187,375) 246,902 1,453,367 (722,332) 731,035 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 10,955,199 (187,375) 10,767,824 30,907,424 (722,332) 30,185,092 Loss From Operations (10,371,862) — (10,371,862) (28,665,123) — (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (10,487,548) $ — $ (10,487,548) $ (28,884,390) $ — $ (28,884,390) |
Customer Concentrations | Customer Concentrations For the three months ended September 30, 2022, one customer represented 21% of total product revenue and two customers represented 100% of engineering services revenue. For the three months ended September 30, 2021, two customers represented 12% and 10% of total product revenue. For the nine months ended September 30, 2022, one customer represented 20% of total product revenue and two customers represented 100% of engineering services revenue. For the nine months ended September 30, 2021, no one customer represented more than 10% of total product revenue and two customers represented 100% of engineering services revenue. As of September 30, 2022, three customers represented 30%, 13% and 11% of accounts receivable, respectively. As of December 31, 2021, three customers represented 27%, 20% and 10% of accounts receivable, respectively. |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent re-issuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method. |
Recent Accounting Pronouncements | 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 does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Basis of Presentation | |
Impact of the restatement on the unaudited consolidated balance sheets | 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 consolidated statements of operations | For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) As Previously As Previously Condensed Statement of Operations Reported Adjustment As Restated Reported Adjustment As Restated Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 — 2,435,437 7,608,401 — 7,608,401 Gross Profit 583,337 — 583,337 2,242,301 — 2,242,301 Operating Expenses: Research and Development 3,270,255 126,863 3,397,118 8,050,915 275,516 8,326,431 Selling and Marketing 1,589,582 63,431 1,653,013 4,167,874 137,758 4,305,632 General and Administrative 3,112,059 2,351,188 5,463,247 11,565,816 5,106,230 16,672,046 Depreciation and Amortization 434,277 — 434,277 1,453,367 — 1,453,367 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 8,413,717 2,541,482 10,955,199 25,387,920 5,519,504 30,907,424 Loss From Operations (7,830,380) (2,541,482) (10,371,862) (23,145,619) (5,519,504) (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (7,946,066) $ (2,541,482) $ (10,487,548) $ (23,364,886) $ (5,519,504) $ (28,884,390) Basic and Diluted Loss per Common Share $ (0.13) $ (0.04) $ (0.17) $ (0.39) $ (0.10) $ (0.48) |
Impact of the restatement on statement of stockholders' equity | 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 cash flow | 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) |
Reclassification of prior year presentation | For the Three Months Ended September 30, 2021 (Unaudited) For the Nine Months Ended September 30, 2021 (Unaudited) Condensed Statement of Operations As Restated Reclassification Revised As Restated Reclassification Revised Total Sales $ 3,018,774 $ — $ 3,018,774 $ 9,850,702 $ — $ 9,850,702 Total Cost of Sales 2,435,437 187,375 2,622,812 7,608,401 722,332 8,330,733 Gross Profit 583,337 (187,375) 395,962 2,242,301 (722,332) 1,519,969 Operating Expenses: — Research and Development 3,397,118 — 3,397,118 8,326,431 — 8,326,431 Selling and Marketing 1,653,013 — 1,653,013 4,305,632 — 4,305,632 General and Administrative 5,463,247 — 5,463,247 16,672,046 — 16,672,046 Depreciation and Amortization 434,277 (187,375) 246,902 1,453,367 (722,332) 731,035 Loss on Fixed Asset Disposal — — — 83,908 — 83,908 Impairment of Patents and Trademarks 7,544 — 7,544 66,040 — 66,040 Total Operating Expenses 10,955,199 (187,375) 10,767,824 30,907,424 (722,332) 30,185,092 Loss From Operations (10,371,862) — (10,371,862) (28,665,123) — (28,665,123) Total Other Expense, Net (115,686) — (115,686) (219,267) — (219,267) Net Loss $ (10,487,548) $ — $ (10,487,548) $ (28,884,390) $ — $ (28,884,390) |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Revenues Smart Glasses Sales $ 2,537,539 $ 3,018,774 $ 7,939,483 $ 9,657,589 Engineering Services 889,284 — 998,150 193,113 Total Revenue $ 3,426,823 $ 3,018,774 $ 8,937,633 $ 9,850,702 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the nine months ended September 30, 2022: % of Total Net Sales 2022 2021 Point-in-Time 89 % 98 % Over Time – Input Method 11 % 2 % Total 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventories, Net | |
Schedule of Inventories | September 30, December 31, 2022 2021 Purchased Parts and Components $ 10,811,529 $ 11,580,766 Work-in-Process 320,152 226,126 Finished Goods 2,249,105 1,472,534 Less: Reserve for Obsolescence (1,151,314) (1,127,444) Inventories, Net $ 12,229,472 $ 12,151,982 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fixed Assets | |
Fixed Assets, Net | September 30, December 31, 2022 2021 Tooling and Manufacturing Equipment $ 11,639,721 $ 6,612,811 Leaseholds 826,329 797,059 Computers and Purchased Software 1,054,127 980,561 Furniture and Equipment 2,673,787 2,661,346 16,193,964 11,051,777 Less: Accumulated Depreciation (6,669,786) (5,861,339) Fixed Assets, Net $ 9,524,178 $ 5,190,438 |
Technology Licenses, Net (Table
Technology Licenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Licenses [Member] | |
Schedule of Finite-Lived Intangible Assets | September 30, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions 15,000,000 1,404,750 Less: Accumulated Amortization (1,786,023) (1,053,420) Licenses, Net $ 15,657,333 $ 1,389,936 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Other Assets | |
Schedule of other assets | September 30, December 31, 2022 2021 Private Corporation Investments (at cost) $ 450,000 $ 450,000 Software Development Costs 750,000 500,000 Additions 125,000 250,000 Less: Accumulated Amortization (333,333) (208,334) Software Development Costs, Net 541,667 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 725,143 491,923 Total Other Assets $ 1,716,810 $ 1,483,589 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accrued Expenses | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: September 30, December 31, 2022 2021 Accrued Wages and Related Costs $ 350,409 $ 683,044 Accrued Professional Services 245,660 551,220 Accrued Warranty Obligations 170,934 185,044 Other Accrued Expenses 407,369 — Total $ 1,174,372 $ 1,419,308 |
Schedule of changes in accrued warranty obligations | The changes in the Company’s accrued warranty obligations for the nine months ended September 30, 2022 were as follows: Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (252,294) Warranties Issued During Year 238,184 Accrued Warranty Obligations at September 30, 2022 $ 170,934 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Stock-Based Compensation | |
Schedule of Summary of Stock Option Activity | A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the nine months ended September 30, 2022 is as follows: Weighted Number of Average Options Exercise Price Outstanding at December 31, 2021 2,823,634 $ 7.67 Granted 183,500 5.92 Exercised (137,866) 2.62 Expired or Forfeited (120,919) 8.27 Outstanding at September 30, 2022 2,748,349 $ 7.37 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Long-term Incentive Plan | |
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 Last Twelve Months Revenue Last Twelve Months 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 Liabi_2
Right-of-Use Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | Future lease payments under operating leases as of September 30, 2022 were as follows: 2022 $ 137,812 2023 546,916 2024 45,576 Total Future Lease Payments 730,304 Less: Imputed Interest (22,730) Total Lease Liability Balance $ 707,574 |
Basis of Presentation (Details)
Basis of Presentation (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Total revenues | Sales of Engineering Services | |||||
Number of customers | 2 | 2 | 2 | ||
Total revenues | Sales of Products | |||||
Number of customers | 1 | 2 | 1 | 0 | |
Accounts Receivable | |||||
Number of customers | 3 | 3 | |||
One customer | Total revenues | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 10% | ||||
One customer | Total revenues | Sales of Products | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 21% | 12% | 20% | ||
One customer | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 30% | 27% | |||
Two customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 100% | 100% | 100% | ||
Two customers | Total revenues | Sales of Products | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 10% | ||||
Two customers | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 13% | 20% | |||
Three customers | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 11% | 10% |
Basis of Presentation - Restate
Basis of Presentation - Restatement to the Consolidated Balance Sheets (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2022 | Dec. 31, 2021 | |
Additional Paid-in Capital | $ 342,644,630 | ||
Accumulated Deficit | (191,579,373) | $ (233,076,810) | $ (203,072,143) |
Previously Reported [Member] | |||
Additional Paid-in Capital | 337,125,126 | ||
Accumulated Deficit | (186,059,869) | ||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||
Additional Paid-in Capital | 5,519,504 | ||
Accumulated Deficit | $ (5,519,504) |
Basis of Presentation - Changes
Basis of Presentation - Changes to Impacted Consolidated Statements of Operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total Sales | $ 3,426,823 | $ 3,018,774 | $ 8,937,633 | $ 9,850,702 |
Total Cost of Sales | 2,558,602 | 2,622,812 | 7,328,335 | 8,330,733 |
Gross Profit (exclusive of depreciation shown separately below) | 868,221 | 395,962 | 1,609,298 | 1,519,969 |
Operating Expenses: | ||||
Research and Development | 3,440,685 | 3,397,118 | 9,540,272 | 8,326,431 |
Selling and Marketing | 1,980,748 | 1,653,013 | 5,895,332 | 4,305,632 |
General and Administrative | 4,854,014 | 5,463,247 | 15,307,242 | 16,672,046 |
Depreciation and Amortization | 510,099 | 246,902 | 1,149,046 | 731,035 |
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 48,075 | 7,544 | 97,676 | 66,040 |
Total Operating Expenses | 10,833,621 | 10,767,824 | 31,989,568 | 30,185,092 |
Loss From Operations | (9,965,400) | (10,371,862) | (30,380,270) | (28,665,123) |
Total Other Expense | 488,401 | (115,686) | 375,603 | (219,267) |
Net Loss | $ (9,476,999) | $ (10,487,548) | $ (30,004,667) | $ (28,884,390) |
Basic Loss per Common Share | $ (0.15) | $ (0.17) | $ (0.47) | $ (0.48) |
Diluted Loss per Common Share | $ (0.15) | $ (0.17) | $ (0.47) | $ (0.48) |
Previously Reported [Member] | ||||
Total Sales | $ 3,018,774 | $ 9,850,702 | ||
Total Cost of Sales | 2,435,437 | 7,608,401 | ||
Gross Profit (exclusive of depreciation shown separately below) | 583,337 | 2,242,301 | ||
Operating Expenses: | ||||
Research and Development | 3,270,255 | 8,050,915 | ||
Selling and Marketing | 1,589,582 | 4,167,874 | ||
General and Administrative | 3,112,059 | 11,565,816 | ||
Depreciation and Amortization | 434,277 | 1,453,367 | ||
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 7,544 | 66,040 | ||
Total Operating Expenses | 8,413,717 | 25,387,920 | ||
Loss From Operations | (7,830,380) | (23,145,619) | ||
Total Other Expense | (115,686) | (219,267) | ||
Net Loss | $ (7,946,066) | $ (23,364,886) | ||
Basic Loss per Common Share | $ (0.13) | $ (0.39) | ||
Diluted Loss per Common Share | $ (0.13) | $ (0.39) | ||
Revision of Prior Period, Error Correction, Adjustment [Member] | ||||
Operating Expenses: | ||||
Research and Development | $ 126,863 | $ 275,516 | ||
Selling and Marketing | 63,431 | 137,758 | ||
General and Administrative | 2,351,188 | 5,106,230 | ||
Total Operating Expenses | 2,541,482 | 5,519,504 | ||
Loss From Operations | (2,541,482) | (5,519,504) | ||
Net Loss | $ (2,541,482) | $ (5,519,504) | ||
Basic Loss per Common Share | $ (0.04) | $ (0.10) | ||
Diluted Loss per Common Share | $ (0.04) | $ (0.10) | ||
Revision of Prior Period, As Restated [Member] | ||||
Total Sales | $ 3,018,774 | $ 9,850,702 | ||
Total Cost of Sales | 2,435,437 | 7,608,401 | ||
Gross Profit (exclusive of depreciation shown separately below) | 583,337 | 2,242,301 | ||
Operating Expenses: | ||||
Research and Development | 3,397,118 | 8,326,431 | ||
Selling and Marketing | 1,653,013 | 4,305,632 | ||
General and Administrative | 5,463,247 | 16,672,046 | ||
Depreciation and Amortization | 434,277 | 1,453,367 | ||
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 7,544 | 66,040 | ||
Total Operating Expenses | 10,955,199 | 30,907,424 | ||
Loss From Operations | (10,371,862) | (28,665,123) | ||
Total Other Expense | (115,686) | (219,267) | ||
Net Loss | $ (10,487,548) | $ (28,884,390) | ||
Basic Loss per Common Share | $ (0.17) | $ (0.48) | ||
Diluted Loss per Common Share | $ (0.17) | $ (0.48) |
Basis of Presentation - Chang_2
Basis of Presentation - Changes to Impacted Stockholders Equity Accounts (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Stock-Based Compensation Expense | $ 3,549,392 | $ 5,834,173 | $ 12,087,834 | $ 14,378,318 | |
Additional Paid-in Capital | 358,872,631 | 342,644,630 | 358,872,631 | 342,644,630 | $ 346,736,397 |
Net Loss | (9,476,999) | (10,487,548) | (30,004,667) | (28,884,390) | |
Accumulated Deficit | $ (233,076,810) | (191,579,373) | $ (233,076,810) | (191,579,373) | $ (203,072,143) |
Previously Reported [Member] | |||||
Stock-Based Compensation Expense | 8,858,814 | ||||
Additional Paid-in Capital | 337,125,126 | 337,125,126 | |||
Net Loss | (7,946,066) | (23,364,886) | |||
Accumulated Deficit | (186,059,869) | (186,059,869) | |||
Revision of Prior Period, Error Correction, Adjustment [Member] | |||||
Stock-Based Compensation Expense | 5,519,504 | ||||
Additional Paid-in Capital | 5,519,504 | 5,519,504 | |||
Net Loss | (2,541,482) | (5,519,504) | |||
Accumulated Deficit | $ (5,519,504) | $ (5,519,504) |
Basis of Presentation - Chang_3
Basis of Presentation - Changes to Impacted Consolidated Statements of Cash Flows (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Loss | $ (9,476,999) | $ (10,487,548) | $ (30,004,667) | $ (28,884,390) |
Stock-Based Compensation | 12,016,334 | 12,830,782 | ||
Net Cash Flows Used in Operating Activities | $ (17,935,375) | (18,909,428) | ||
Previously Reported [Member] | ||||
Net Loss | (7,946,066) | (23,364,886) | ||
Stock-Based Compensation | 7,311,278 | |||
Net Cash Flows Used in Operating Activities | (18,909,428) | |||
Revision of Prior Period, Error Correction, Adjustment [Member] | ||||
Net Loss | $ (2,541,482) | (5,519,504) | ||
Stock-Based Compensation | $ 5,519,504 |
Basis of Presentation - Reclass
Basis of Presentation - Reclassification of results of operations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Total Sales | $ 3,426,823 | $ 3,018,774 | $ 8,937,633 | $ 9,850,702 |
Total Cost of Sales | 2,558,602 | 2,622,812 | 7,328,335 | 8,330,733 |
Gross Profit (exclusive of depreciation shown separately below) | 868,221 | 395,962 | 1,609,298 | 1,519,969 |
Operating Expenses: | ||||
Research and Development | 3,440,685 | 3,397,118 | 9,540,272 | 8,326,431 |
Selling and Marketing | 1,980,748 | 1,653,013 | 5,895,332 | 4,305,632 |
General and Administrative | 4,854,014 | 5,463,247 | 15,307,242 | 16,672,046 |
Depreciation and Amortization | 510,099 | 246,902 | 1,149,046 | 731,035 |
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 48,075 | 7,544 | 97,676 | 66,040 |
Total Operating Expenses | 10,833,621 | 10,767,824 | 31,989,568 | 30,185,092 |
Loss From Operations | (9,965,400) | (10,371,862) | (30,380,270) | (28,665,123) |
Total Other Expense | 488,401 | (115,686) | 375,603 | (219,267) |
Net loss | $ (9,476,999) | (10,487,548) | $ (30,004,667) | (28,884,390) |
Revision of Prior Period, As Restated [Member] | ||||
Total Sales | 3,018,774 | 9,850,702 | ||
Total Cost of Sales | 2,435,437 | 7,608,401 | ||
Gross Profit (exclusive of depreciation shown separately below) | 583,337 | 2,242,301 | ||
Operating Expenses: | ||||
Research and Development | 3,397,118 | 8,326,431 | ||
Selling and Marketing | 1,653,013 | 4,305,632 | ||
General and Administrative | 5,463,247 | 16,672,046 | ||
Depreciation and Amortization | 434,277 | 1,453,367 | ||
Loss on Fixed Asset Disposal | 83,908 | |||
Impairment of Patents and Trademarks | 7,544 | 66,040 | ||
Total Operating Expenses | 10,955,199 | 30,907,424 | ||
Loss From Operations | (10,371,862) | (28,665,123) | ||
Total Other Expense | (115,686) | (219,267) | ||
Net loss | (10,487,548) | (28,884,390) | ||
Revision of Prior Period, Reclassification, Adjustment [Member] | ||||
Total Cost of Sales | 187,375 | 722,332 | ||
Gross Profit (exclusive of depreciation shown separately below) | (187,375) | (722,332) | ||
Operating Expenses: | ||||
Depreciation and Amortization | (187,375) | (722,332) | ||
Total Operating Expenses | $ (187,375) | $ (722,332) |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) product | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) product | Sep. 30, 2021 USD ($) | |
Revenue | $ 3,426,823 | $ 3,018,774 | $ 8,937,633 | $ 9,850,702 |
Number of major product lines | product | 2 | 2 | ||
Smart Glasses Sales | ||||
Revenue | $ 2,537,539 | $ 3,018,774 | $ 7,939,483 | 9,657,589 |
Engineering Services | ||||
Revenue | $ 889,284 | $ 998,150 | $ 193,113 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue Performance Obligation Percentage | 100% | 100% |
Point-in-Time - Output Method | ||
Revenue Performance Obligation Percentage | 89% | 98% |
Over Time - Input Method | ||
Revenue Performance Obligation Percentage | 11% | 2% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2022 USD ($) project | Sep. 30, 2021 item | |
Standard Product Warranty Term | 12 months | |
Revenue, Remaining Performance Obligation | $ 320,000 | |
Number of development projects | project | 2 | |
Revenue, Performance Obligation, Total Transaction Price | $ 1,318,000 | |
Accrued Revenues in Excess of Billings | $ 393,250 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | |
Extended warranties | ||
Standard Product Warranty Term | 12 months | |
Number of additional 12 months period | item | 2 | |
OEM products and waveguide sales | ||
Standard Product Warranty Term | 18 months |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Loss Per Share | ||
Anti-dilutive shares | 8,532,349 | 8,612,869 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Inventories, Net | ||
Purchased Parts and Components | $ 10,811,529 | $ 11,580,766 |
Work-in-Process | 320,152 | 226,126 |
Finished Goods | 2,249,105 | 1,472,534 |
Less: Reserve for Obsolescence | (1,151,314) | (1,127,444) |
Inventories, Net | $ 12,229,472 | $ 12,151,982 |
Fixed Assets - Schedule Of Fixe
Fixed Assets - Schedule Of Fixed Assets (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 16,193,964 | $ 11,051,777 |
Less: Accumulated Depreciation | (6,669,786) | (5,861,339) |
Fixed Assets, Net | 9,524,178 | 5,190,438 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 11,639,721 | 6,612,811 |
Leaseholds | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 826,329 | 797,059 |
Computers and Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 1,054,127 | 980,561 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 2,673,787 | $ 2,661,346 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Apr. 27, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | May 12, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Payments to Acquire Property | $ 5,203,562 | $ 3,592,703 | |||
Commitment Fee | $ 9,470,880 | $ 9,470,880 | |||
Atomistic SAS | |||||
Property, Plant and Equipment [Line Items] | |||||
Exclusive license agreement, total value | $ 30,000,000 | ||||
Amount allocated to technology license | $ 15,000,000 | ||||
Tooling and Manufacturing Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Property plant and equipment, purchase order placed | $ 2,162,481 | ||||
Property, plant And equipment, down payment made | $ 1,050,748 | ||||
Payments to Acquire Property | $ 5,529,120 | ||||
Tooling and Manufacturing Equipment | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Period in which the fixed asset is to be placed in service | 18 months | ||||
Tooling and Manufacturing Equipment | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Period in which the fixed asset is to be placed in service | 21 months | ||||
Custom Chip Tooling Asset | |||||
Property, Plant and Equipment [Line Items] | |||||
Property, plant And equipment, down payment made | $ 4,029,120 | ||||
Additional progress payments towards custom chip tooling asse | $ 1,500,000 |
Technology Licenses, Net (Detai
Technology Licenses, Net (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Licenses Net [Line Items] | ||
Technology Licenses, Net | $ 15,657,333 | $ 1,389,936 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 2,443,356 | 1,038,606 |
Additions | 15,000,000 | 1,404,750 |
Less: Accumulated Amortization | (1,786,023) | (1,053,420) |
Technology Licenses, Net | $ 15,657,333 | $ 1,389,936 |
Technology Licenses, Net - Addi
Technology Licenses, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 57 Months Ended | ||
May 12, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Licenses Net [Line Items] | |||||
Licensing fees commitment | $ 9,000,000 | $ 9,000,000 | $ 9,000,000 | ||
Payment of licensing fee commitment | 1,500,000 | $ 4,500,000 | |||
Amortization expense | 375,000 | 562,500 | |||
Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Exclusive license agreement, total value | $ 30,000,000 | ||||
Amount allocated to technology license | 15,000,000 | ||||
Licensing fees commitment | $ 15,000,000 | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Atomistic SAS | Minimum | |||||
Licenses Net [Line Items] | |||||
Contractual obligation period | 15 months | ||||
Licensing agreements | |||||
Licenses Net [Line Items] | |||||
Value of shares development milestones | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | $ 1,404,750 | |
Licensing agreements | Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Value of shares development milestones | $ 15,000,000 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Oct. 31, 2021 | Dec. 31, 2020 | |
Private Corporation Investments (at cost) | $ 450,000 | $ 450,000 | |||
Additions | 9,524,178 | 5,190,438 | |||
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | 725,143 | 491,923 | |||
Total Other Assets | 1,716,810 | 1,483,589 | |||
Software Development | |||||
Software Development Costs | 750,000 | 500,000 | |||
Additions | 125,000 | 250,000 | $ 125,000 | $ 250,000 | $ 500,000 |
Less: Accumulated Amortization | (333,333) | (208,334) | |||
Software Development Costs, Net | $ 541,667 | $ 541,666 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2020 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | |
Other assets [Line Items] | |||||
Additions | $ 9,524,178 | $ 5,190,438 | |||
Software Development | |||||
Other assets [Line Items] | |||||
Additions | $ 500,000 | $ 125,000 | $ 125,000 | $ 250,000 | $ 250,000 |
Useful life | 36 months |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 350,409 | $ 683,044 |
Accrued Professional Services | 245,660 | 551,220 |
Accrued Warranty Obligations | 170,934 | 185,044 |
Other Accrued Expenses | 407,369 | |
Total | $ 1,174,372 | $ 1,419,308 |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Accrued Expenses | |
Accrued Warranty Obligations, beginning of period | $ 185,044 |
Reductions for Settling Warranties | (252,294) |
Warranties Issued During Period | 238,184 |
Accrued Warranty Obligations, end of period | $ 170,934 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Standard Product Warranty Term | 12 months |
Other Accrued Expenses | $ 407,369 |
Next Generation Smart Glasses | |
Other Accrued Expenses | $ 268,000 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | 9 Months Ended | ||
Mar. 02, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | |
Preferred Stock, Par Value | $ 0.001 | $ 0.001 | |
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 | 63,776,335 | 63,672,268 | |
Common Stock, Shares, Outstanding | 63,739,650 | 63,672,268 | |
Aggregate value of shares authorized | $ 25 | ||
Share repurchase program term | 1 year | ||
Purchases of Treasury Stock (in Shares) | 36,685 | ||
Average cost | $ 6.84 | ||
Common shares held in treasury | 36,685 | 0 | |
Atomistic agreement | |||
Amount committed to pay upon the achievement or waiver of performance milestones | $ 2,500,000 | ||
Period for equity bonus | 5 years | ||
Threshold percentage of market capital from developed technology | 50% | ||
Share commitments issued to date | 0 | ||
Atomistic agreement | Atomistic SAS | |||
Ownership percent | 100% | ||
Minimum | |||
Fair market value | $ 8 | ||
Minimum | Atomistic agreement | |||
Issuance of shares, performance milestones (in shares) | 1,750,000 | ||
Period of time to issue per agreement | 15 months | ||
Threshold market valuation | $ 3,500,000,000 | ||
Issuance of shares on exceeding valuation target (in shares) | 262,500 | ||
Maximum | |||
Fair market value | $ 13 | ||
Maximum | Atomistic agreement | |||
Period of time to issue per agreement | 24 months | ||
Issuance of shares on fair valuation shortfall (in shares) | 1,093,750 | ||
Equity bonus (as a percent) | 15% | ||
Issuance of shares on exceeding valuation target (in shares) | 426,563 | ||
Series A Preferred Stock | |||
Preferred Stock, Shares Authorized | 49,626 | 49,626 | |
Preferred Stock, Shares Issued | 0 | 0 | |
Preferred Stock, Shares Outstanding | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock options | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of Options | |
Outstanding, Beginning Balance | shares | 2,823,634 |
Granted | shares | 183,500 |
Exercised | shares | (137,866) |
Expired or Forfeited | shares | (120,919) |
Outstanding, Ending Balance | shares | 2,748,349 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ / shares | $ 7.67 |
Granted | $ / shares | 5.92 |
Exercised | $ / shares | 2.62 |
Expired or Forfeited | $ / shares | 8.27 |
Outstanding, Ending Balance | $ / shares | $ 7.37 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Stock-Based Compensation Plans | |||||
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 4 months 13 days | 7 years 11 months 12 days | |||
Exercisable Options Outstanding Shares | 1,409,352 | 1,409,352 | |||
Weighted average exercise price per share, Exercisable | $ 6.91 | $ 6.91 | |||
Weighted average remaining contractual term on vested options | 6 years 6 months | ||||
Unvested Options Outstanding, Shares | 1,338,997 | 1,338,997 | |||
Unvested Options Outstanding, Weighted average exercise price | $ 9.75 | ||||
Unvested Options Outstanding Weighted average remaining life (years) | 8 years 3 months 18 days | ||||
Unrecognized stock compensation expense | $ 9,293,768 | $ 9,293,768 | |||
Weighted average recognition period | 2 years 7 months 6 days | ||||
Share-Based compensation excludes the long term incentive plan expense | $ 1,157,556 | $ 1,137,862 | $ 3,730,899 | $ 2,606,700 |
Long-term Incentive Plan (Detai
Long-term Incentive Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 17, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Long-term Incentive Plan | ||||||
Exercise price | $ 6.91 | $ 6.91 | ||||
Share-based Compensation | $ 12,016,334 | $ 12,830,782 | ||||
Unrecognized stock-based compensation expense | $ 9,293,768 | $ 9,293,768 | ||||
Recognition period | 2 years 7 months 6 days | |||||
Options available in equity market and operational milestone | 5,409,000 | 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 | |||||
Stock options | Long-term Incentive Plan 2021 | ||||||
Long-term Incentive Plan | ||||||
Granted | 5,784,000 | |||||
Exercise price | $ 19 | |||||
Share-based Compensation | 2,658,294 | $ 3,031,307 | $ 8,285,435 | $ 10,224,082 | ||
Stock options | Vest immediately | Long-term Incentive Plan 2021 | ||||||
Long-term Incentive Plan | ||||||
Shares vesting | 375,000 | |||||
Stock options tied to equity market capitalization milestone | ||||||
Long-term Incentive Plan | ||||||
Unrecognized stock-based compensation expense | 20,054,731 | 20,054,731 | ||||
Amount of threshold additional stock based compensation expense | $ 34,100,000 | $ 34,100,000 | ||||
Stock options tied to equity market capitalization milestone | Maximum | ||||||
Long-term Incentive Plan | ||||||
Recognition period | 6 years |
Long-term Incentive Plan - LTIP
Long-term Incentive Plan - LTIP (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
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 | 5,409,000 | 5,409,000 |
Stock option tied to equity market and operational milestones | ||
Long-term Incentive Plan | ||
Options available in equity market and operational milestone | 5,409,000 | |
Equity market and operational milestone one | ||
Long-term Incentive Plan | ||
Options available in equity market and operational milestone | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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 | 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) | Sep. 30, 2022 USD ($) |
Right-of-Use Assets and Liabilities | |
2022 | $ 137,812 |
2023 | 546,916 |
2024 | 45,576 |
Total Future Lease Payments | 730,304 |
Less: Imputed Interest | (22,730) |
Total Lease Liability Balance | $ 707,574 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Right-of-Use Assets and Liabilities | ||||
Operating lease costs | $ 160,767 | $ 172,014 | $ 486,409 | $ 460,434 |
Weighted average discount rate | 4.50% | 4.50% | ||
Weighted average remaining term | 1 year 3 months 18 days | 1 year 3 months 18 days |