Vuzix (VUZI) 10-Q 10 May 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 10, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Entity Registrant Name	Vuzix Corp
Entity Central Index Key	1,463,972
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	VUZI
Entity Common Stock, Shares Outstanding		27,429,614

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current Assets
Cash and Cash Equivalents	$ 36,067,880	$ 14,889,636
Accounts Receivable, Net	1,051,337	974,172
Accrued Project Revenue	0	497,784
Inventories, Net	4,276,330	3,852,317
Manufacturing Vendor Prepayments	126,059	154,717
Prepaid Expenses and Other Assets	512,581	873,947
Total Current Assets	42,034,187	21,242,573
Long-Term Assets
Fixed Assets, Net	4,178,799	4,124,466
Patents and Trademarks, Net	854,451	813,774
Software Development Costs, Net	452,473	408,723
Licenses, Net	246,488	243,717
Total Assets	47,766,398	26,833,253
Current Liabilities
Accounts Payable	1,747,419	3,726,056
Customer Deposits	210,640	73,462
Unearned Revenue	0	107,824
Accrued Expenses	1,075,932	1,389,771
Derivative Liability	124,794	152,927
Income and Other Taxes Payable	22,751	3,500
Total Current Liabilities	3,181,536	5,453,540
Long-Term Liabilities
Total Liabilities	3,181,536	5,453,540
Stockholders’ Equity
Preferred Stock - $.001 Par Value, 5,000,000 Shares Authorized; 49,626 and 49,626 Shares Issued and Outstanding as of March 31, 2018 and December 31, 2017.	50	50
Common Stock - $.001 Par Value, 100,000,000 Shares Authorized; 27,307,455 Shares Issued and Outstanding as of March 31, 2018 and 24,276,275 as of December 31, 2017.	27,307	24,276
Additional Paid-in Capital	146,313,883	117,827,839
Accumulated Deficit	(101,756,378)	(96,472,452)
Total Stockholders’ Equity	44,584,862	21,379,713
Total Liabilities and Stockholders’ Equity	$ 47,766,398	$ 26,833,253

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	49,626	49,626
Preferred Stock, Shares Outstanding	49,626	49,626
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	27,307,455	24,276,275
Common Stock, Shares Outstanding	27,307,455	24,276,275

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 3 months ended Mar. 31, 2018 - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Dec. 31, 2017	$ 21,379,713	$ 50	$ 24,276	$ 117,827,839	$ (96,472,452)
Balance (in shares) at Dec. 31, 2017		49,626	24,276,275
Cumulative Revenue Adjustment - ASC 606 Adoption	81,724	$ 0	$ 0	0	81,724
Exercise of Warrants	39,375		$ 25	39,350
Exercise of Warrants (in shares)			24,930
Stock-Based Compensation Expense	424,700	$ 0	$ 6	424,694	0
Stock-Based Compensation Expense (in shares)		0	6,250
Proceeds from Common Stock Offerings	30,000,000	$ 0	$ 3,000	29,997,000	0
Proceeds from Common Stock Offerings (in shares)		0	3,000,000
Direct Costs of Common Stock Offerings	(1,975,000)	$ 0	$ 0	(1,975,000)	0
Net Loss for the Three months ended March 31, 2018	(5,365,650)	0	0	0	(5,365,650)
Balance at Mar. 31, 2018	$ 44,584,862	$ 50	$ 27,307	$ 146,313,883	$ (101,756,378)
Balance (in shares) at Mar. 31, 2018		49,626	27,307,455

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Sales:
Sales of Products	$ 1,363,379	$ 959,383
Sales of Engineering Services	180,516	251,280
Total Sales	1,543,895	1,210,663
Cost of Sales:
Cost of Sales - Products	1,182,215	953,903
Cost of Sales - Engineering Services	184,555	108,000
Total Cost of Sales	1,366,770	1,061,903
Gross Profit (exclusive of depreciation shown separately below)	177,125	148,760
Operating Expenses:
Research and Development	2,055,787	1,668,956
Selling and Marketing	1,534,097	1,030,999
General and Administrative	1,665,229	1,235,183
Depreciation and Amortization	273,622	239,830
Total Operating Expenses:	5,528,735	4,174,968
Loss from Operations	(5,351,610)	(4,026,208)
Other Income (Expense)
Investment Income	0	17,900
Other Taxes	(28,542)	(10,550)
Foreign Exchange (Loss) Gain	(4,418)	1,097
Gain on Derivative Valuation	28,133	22,560
Amortization of Term Debt Discounts and Deferred Issuance Costs	0	(145,645)
Interest Expense	(9,213)	(40,966)
Total Other Income (Expense)	(14,040)	(155,604)
Loss Before Provision for Income Taxes	(5,365,650)	(4,181,812)
Provision for Income Taxes	0	0
Net Loss	(5,365,650)	(4,181,812)
Preferred Stock Dividends	(438,836)	(413,464)
Loss Attributable to Common Stockholders	$ (5,804,486)	$ (4,595,276)
Basic and Diluted Loss per Share	$ (0.22)	$ (0.23)
Weighted-average Shares Outstanding - Basic and Diluted	26,296,188	19,714,396

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities
Net Loss	$ (5,365,650)	$ (4,181,812)
Non-Cash Adjustments
Depreciation and Amortization	273,622	239,830
Amortization of Software Development Costs in Cost of Sales - Products	0	71,613
Stock-Based Option Compensation Expense	424,700	210,074
Common Stock Issued for Services	83,751	0
Amortization of Term Debt Discount and Deferred Issuance Costs	0	145,645
Gain on Derivative Valuation	(28,133)	(22,560)
(Increase) Decrease in Operating Assets
Accounts Receivable	(77,165)	(217,261)
Accrued Project Revenue	497,784	0
Inventories	(424,013)	(69,614)
Vendor Prepayments	28,658	(68,111)
Prepaid Expenses and Other Assets	277,615	246,687
Increase (Decrease) in Operating Liabilities
Accounts Payable	(1,978,637)	(82,323)
Accrued Expense	(211,052)	49,262
Customer Deposits	137,178	42,123
Unearned Revenue	(26,100)	(211,399)
Income and Other Taxes Payable	19,251	(1,169)
Accrued Compensation	(92,000)	(25,110)
Accrued Interest	(10,787)	40,926
Net Cash Flows Used in Operating Activities	(6,470,978)	(3,833,199)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(306,739)	(262,774)
Investments in Licenses, Patents and Trademarks	(64,664)	(42,315)
Investments in Software Development	(43,750)	0
Net Cash Used in Investing Activities	(415,153)	(305,089)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants	39,375	0
Proceeds from Common Stock Offerings	30,000,000	0
Issuance Costs from Common Stock Offerings	(1,975,000)	0
Net Cash Flows Provided by Financing Activities	28,064,375	0
Net Increase (Decrease) in Cash and Cash Equivalents	21,178,244	(4,138,288)
Cash and Cash Equivalents - Beginning of Period	14,889,636	14,533,944
Cash and Cash Equivalents - End of Period	36,067,880	10,395,656
Supplemental Disclosures
Interest Paid in Cash	19,999	10,690
Conversion of Term Debt and Accrued Interest into Common Stock	0	1,197,341
Receivable from Stock Option Exercise	0	14,820
Cumulative Revenue Adjustment - ASC 606 Adoption	$ 81,724	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2018
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Presentation	Note 1 — Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Vuzix Corporation and Subsidiaries (“the Company") 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. Accordingly, the unaudited Condensed Consolidated Financial Statements do not include all of the 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. The condensed consolidated balance sheet as of December 31, 2017 was derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (the “Annual Report”). The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company as of December 31, 2017, as reported in the Company’s Annual Report. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. For the three months ended March 31, 2018, Toshiba Japan represented 94 18 96 20 25 75

Revenue Recognition and Contrac

Revenue Recognition and Contracts with Customers	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Revenue Recognition and Contracts with Customers	Note 2 – Revenue Recognition and Contracts with Customers Adoption On January 1, 2018, the Company adopted the new guidance on Revenue from Contracts with Customers under Topic 606 using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting treatment under Topic 605. We recorded a net decrease to opening accumulated deficit of $ 81,724 Balance at December New Revenue Standard Balance at January 1, Liabilities Unearned Revenue $ 81,724 $ (81,724) $ — Shareholders’ Equity Accumulated Deficit $ (96,472,452) $ 81,724 $ (96,390,728) Under the modified retrospective method of adoption, we are required to disclose the impact to revenues had we continued to follow our accounting policies under the previous revenue recognition guidance. We estimate that the impact to revenues for the quarter ended March 31, 2018, primarily due to deferrals of PCS amounts for product shipped offset by the amortization of the unearned revenue related to our prior PCS deferred revenue under Topic 605, would have been immaterial. Disaggregated Revenue During the quarter ended March 31, 2018, the Company’s total revenue was comprised of four major product lines: Smart Glasses and Video Eyewear sales, OEM product sales, Waveguide sales, and Engineering services. The following table summarizes the revenue recognized by major product line for the quarter ended March 31, 2018: Three Months Ended March 31, 2018 2017 Revenues Smart Glasses and Video Eyewear Sales $ 1,212,771 $ 959,383 OEM Product Sales 114,170 — Waveguide Sales 36,438 — Engineering Services 180,516 251,280 Total Revenue $ 1,543,895 $ 1,210,663 Significant Judgments In applying the new guidance under Topic 606, we performed an assessment of judgments used 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. Judgments made include variable consideration in determining our transaction prices for our standard product sales that include a 30-day right to return and payment terms are Net 30 - 60 days. For our Engineering Services performance obligations recognized over time using the input method, the estimated costs to complete each project is considered a significant judgment. For the three months ended March 31, 2018 and the year ended December 31, 2017, the significant judgments previously mentioned did not have a material effect on the timing or the amount of revenue recognized under the new guidance. Performance Obligations Revenues from our performance obligations satisfied at a point in time are typically for standard goods (Smart Glasses, Video Eyewear and Waveguides) and are recognized when the customer obtains control, which is generally upon delivery and acceptance. The Company also records revenue for performance obligations relating to our OEM Product Sales and Engineering Services over time by using either the input method or output method measuring progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our OEM Products are measured using the output method measured by units delivered to the customer, which appropriately reflects the transfer of control to the customer and are directly observable by both parties. Satisfaction of our performance obligations related to our Engineering Services are measured using the input method measured by the Company’s cost 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 of completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time for our OEM Products and Engineering Services, correlates directly with the transfer of control of the underlying assets to our customers. Our standard product sales include a twelve (12) month standard, assurance-type product warranty, not covered by this subtopic. Or in the case of our OEM product and waveguide sales, some may have standard product warranties of up to eighteen (18) months. Our engineering services contracts vary from contract to contract but typically include payment terms of Net 30 days from date of billing, subject to an agreed upon customer acceptance period. % of Total Net Sales Point in Time 81 % Input Method 12 % Output Method 7 % Total 100 % Remaining Performance Obligations As of March 31, 2018, the Company had $ 944,000

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
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 and warrants, and the conversion of any convertible debt and convertible preferred shares. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive. Since the Company reported a net loss for the three months ended March 31, 2018 and 2017, 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. As of March 31, 2018 and 2017, there were 8,800,821 6,446,784

Inventories, Net

Inventories, Net	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Inventories	Note 4 — Inventories, Net Inventories are stated at the lower of cost and net realizable value and consisted of the following: March 31, December 31, Purchased Parts and Components $ 2,078,104 $ 1,669,209 Work in Process 7,179 25,090 Finished Goods 3,410,879 2,994,342 Less: Reserve for Obsolescence (1,219,832) (836,324) Net $ 4,276,330 $ 3,852,317

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Accrued Expenses	Note 5 — Accrued Expenses March 31, December 31, Accrued Wages and Related Costs $ 259,910 $ 163,305 Accrued Officer Compensation 235,469 327,469 Accrued Professional Services 185,400 531,728 Accrued Warranty Obligations 198,016 167,503 Accrued Interest 160,649 171,435 Other Accrued Expenses 36,488 28,331 Total $ 1,075,932 $ 1,389,771 Included in the above accrued officer compensation are amounts owed to officers of the Company for services rendered prior to 2016. The amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally one year except in certain European countries where it is two years for some products. 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 on product-based historical performance rates and related costs to repair. Accrued Warranty Obligations at December 31, 2017 $ 167,503 Reductions for Settling Warranties (92,547) Warranties Issued During Period 123,060 Accrued Warranty Obligations at March 31, 2018 $ 198,016

Derivative Liability and Fair V

Derivative Liability and Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability and Fair Value Measurements	Note 6 – Derivative Liability and Fair Value Measurements The Company recognized a derivative liability for the warrants to purchase shares of its common stock issued in connection with the equity offering and related debt conversions on August 5, 2013. These warrants have a cashless exercise provision and an exercise price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions) along with full-ratchet anti-dilution provisions. In accordance with FASB ASC 815-10-25, we measured the derivative liability using a Monte Carlo Options Lattice pricing model at their issuance date and subsequently re-measured the liability on each reporting date. Accordingly, at the end of each quarterly reporting date, the derivative fair market value is re-measured and adjusted to current market value. As of March 31, 2018 and December 31, 2017 a total of 38,100 The Company has adopted FASB ASC Topic 820 for financial instruments measured at fair value on a recurring basis. FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: - Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; - Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and - Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amount of cash, accounts receivable, accounts payable, and accrued expenses approximates their fair value due to their short maturity. Total Level 1 Level 2 Level 3 Derivative Liability $ 124,794 $ — $ — $ 124,794 Total liabilities measured at fair value (Current liabilities) $ 124,794 $ — $ — $ 124,794 We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2017: Total Level 1 Level 2 Level 3 Derivative Liability $ 152,927 $ — $ — $ 152,927 Total liabilities measured at fair value (Long-Term) $ 152,927 $ — $ — $ 152,927 Fair value – December 31, 2017 $ 152,927 Change in fair value for the period of warrant derivative liability (28,133) Fair value – March 31, 2018 $ 124,794 March 31, December 31, Assumptions for Pricing Model: Expected term in years 0.35 0.59 Volatility range for years 145 % 143 % Risk-free interest rate 2.09 % 1.76 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 124,794 $ 152,927

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 — 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	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Capital Stock	Note 8 — Capital Stock Preferred stock The Company may issue shares of undesignated preferred stock in one or more series. The Board of Directors is authorized to establish and designate the different series and to fix and determine their voting powers and other special rights and terms. A total of 5,000,000 49,626 49,626 On January 2, 2015 the Company closed a sale of Series A Preferred Stock to Intel Corporation (the “Series A Purchaser”), pursuant to which we issued and sold an aggregate of 49,626 500 24,813,000 Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6 5,287,899 4,849,063 The Series A Purchaser has the right, but not the obligation, to participate in any proposed issuance by the Company of its securities, subject to certain exceptions and in such amount as is sufficient to maintain the Series A Purchaser’s ownership percentage in the Company, calculated immediately prior to such applicable financing, at a purchase price equal to the per share price of the Company’s securities in such applicable financing. Common Stock The Company’s authorized common stock consists of 100,000,000 0.001 27,307,455 24,276,275 3,000,000 1,200,000 10.00 0.4 30,000,000 10.00 28,025,000

Stock Warrants

Stock Warrants	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Stock Warrants	Note 9 — Stock Warrants Number of Warrants Outstanding at December 31, 2017 1,184,912 Exercised During the Period (27,500) Issued During the Period 1,200,000 Expired During the Period — Warrants Outstanding at March 31, 2018 2,357,412 The outstanding warrants as of March 31, 2018 expire from July 31, 2018 to June 18, 2021. The weighted average remaining term of the warrants is 1.85 8.29

Stock Based Compensation Plans

Stock Based Compensation Plans	3 Months Ended
	Mar. 31, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation Plans	Note 10 — Stock Based Compensation Plans Number of Weighted Outstanding at December 31, 2017 1,510,244 $ 5.04 Granted — — Exercised — — Expired or Forfeited (29,435) 7.81 Outstanding at March 31, 2018 1,480,809 $ 4.99 The weighted average remaining contractual term for all options as of March 31, 2018 and December 31, 2017 was 7.5 7.6 As of March 31, 2018, there were 850,721 4.55 6.6 As of March 31, 2018, there were 630,088 5.57 8.7 The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At March 31, 2018, the Company had approximately $ 3,130,000 2.8 During the year ended December 31, 2017, the Company issued 100,000 5.90 590,000 458,000 3.1 During the year ended December 31, 2017, the Company issued 50,000 6.70 335,000 For the three months ended March 31, 2018 and 2017, the Company recorded total stock compensation expense of approximately $ 425,000 210,000

Litigation

Litigation	3 Months Ended
	Mar. 31, 2018
Litigation Disclosure [Abstract]
Litigation	Note 11 — Litigation We are not currently involved in any actual or pending legal proceeding or litigation and we are not aware of any such proceedings contemplated by or against us or our property except as follows: We filed a defamation lawsuit against Ricardo Antonio Pearson (a\k\a Richard Pearson) in the Supreme Court of the State of New York, County of New York on April 5, 2018. The Company’s complaint against Mr. Pearson alleges he published false and defamatory articles about the Company. Vuzix is seeking damages in excess of $80 million, including punitive damages, and money damages.

Contractual Obligations

Contractual Obligations	3 Months Ended
	Mar. 31, 2018
Contractual Obligations [Abstract]
Contractual Obligations	Note 12 — Contractual Obligations The Company is party to several lease agreements, with the largest being for its office and manufacturing facility under an operating lease that commenced October 3, 2015 and expires on October 3, 2020. The Company also leases small office spaces in Spain under a five-year lease, England under a two-year lease and in Japan under a two-year lease arrangement. Total 2018 (9 months remaining) $ 332,932 2019 $ 443,910 2020 $ 383,483 2021 $ 7,816 2022 9,119 Total $ 1,177,260 Under the lease agreements described above, the Company is required to pay the pro rata share of the real property taxes and assessments, expenses and other charges associated with these facilities. Rent expense for the three months ended March 31, 2018 and 2017 totaled $ 112,896 110,369

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 13 — Recent Accounting Pronouncements In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. The amendments also require qualitative disclosures along with specific quantitative disclosures. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The amendments must be applied on a modified retrospective basis. We anticipate the adoption of this standard will have a material impact on our financial statements. While we are continuing to assess all the potential impacts of the standard, we currently believe the most significant impact relates to our accounting for our office lease. Under the new guidance, the net present value of the obligation for our office lease will appear on the balance sheet. Currently, it is classified as an operating lease and payments are expensed in the period incurred. Recently Adopted Accounting Pronouncements In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new standard is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. We have adopted this standard for the quarter ended March 31, 2018. The adoption of this standard did not have a material impact on our consolidated financial statements and related disclosures. In August 2016, the FASB issued Accounting Standards Update 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments”. The standard makes eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The new standard requires adoption on a retrospective basis unless it is impracticable to apply, in which case the Company would be required to apply the amendments prospectively as of the earliest date practicable. The Company has adopted this standard effective January 1, 2018. Adoption of this standard did not impact our Consolidated Financial Statements for the current or prior periods presented. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting treatment under Topic 605. We recorded a net decrease to opening accumulated deficit of $ 81,724

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Subsequent Events [Abstract]
Subsequent Events	Note 14 – Subsequent Events Recent Stock Awards: Since March 31, 2018, the Company has awarded 105,000 shares of common stock to its board members and members of management. The fair market value of each share awarded was $6.10 on the date of grant, May 4, 2018, for an aggregate fair market value of $640,500. The aggregate fair market value of stock awards issued to external directors was $122,000 and $518,500 to other members of management, which will vest over twelve (12) and forty-eight (48) month periods, respectively.

Revenue Recognition and Contr21

Revenue Recognition and Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue from Contract with Customer [Abstract]
Detailed effect to our consolidated balance sheet	Refer to the following table for the detailed effect to our consolidated balance sheet upon adoption: Balance at December New Revenue Standard Balance at January 1, Liabilities Unearned Revenue $ 81,724 $ (81,724) $ — Shareholders’ Equity Accumulated Deficit $ (96,472,452) $ 81,724 $ (96,390,728)
Company’s total revenue was comprised of four major product lines	During the quarter ended March 31, 2018, the Company’s total revenue was comprised of four major product lines: Smart Glasses and Video Eyewear sales, OEM product sales, Waveguide sales, and Engineering services. The following table summarizes the revenue recognized by major product line for the quarter ended March 31, 2018: Three Months Ended March 31, 2018 2017 Revenues Smart Glasses and Video Eyewear Sales $ 1,212,771 $ 959,383 OEM Product Sales 114,170 — Waveguide Sales 36,438 — Engineering Services 180,516 251,280 Total Revenue $ 1,543,895 $ 1,210,663
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 net sales by revenue recognition method as a percentage of total net sales for the quarter ended March 31, 2018: % of Total Net Sales Point in Time 81 % Input Method 12 % Output Method 7 % Total 100 %

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost and net realizable value and consisted of the following: March 31, December 31, Purchased Parts and Components $ 2,078,104 $ 1,669,209 Work in Process 7,179 25,090 Finished Goods 3,410,879 2,994,342 Less: Reserve for Obsolescence (1,219,832) (836,324) Net $ 4,276,330 $ 3,852,317

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2018
Payables and Accruals [Abstract]
Components of Accrued Expenses	March 31, December 31, Accrued Wages and Related Costs $ 259,910 $ 163,305 Accrued Officer Compensation 235,469 327,469 Accrued Professional Services 185,400 531,728 Accrued Warranty Obligations 198,016 167,503 Accrued Interest 160,649 171,435 Other Accrued Expenses 36,488 28,331 Total $ 1,075,932 $ 1,389,771
Changes in Accrued Warranty Obligations	The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2018 and the balance as of December 31, 2017 were as follows: Accrued Warranty Obligations at December 31, 2017 $ 167,503 Reductions for Settling Warranties (92,547) Warranties Issued During Period 123,060 Accrued Warranty Obligations at March 31, 2018 $ 198,016

Derivative Liability and Fair24

Derivative Liability and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis	Total Level 1 Level 2 Level 3 Derivative Liability $ 124,794 $ — $ — $ 124,794 Total liabilities measured at fair value (Current liabilities) $ 124,794 $ — $ — $ 124,794 We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2017: Total Level 1 Level 2 Level 3 Derivative Liability $ 152,927 $ — $ — $ 152,927 Total liabilities measured at fair value (Long-Term) $ 152,927 $ — $ — $ 152,927
Schedule of Fair Value Level 3 warrant liabilities	Fair value – December 31, 2017 $ 152,927 Change in fair value for the period of warrant derivative liability (28,133) Fair value – March 31, 2018 $ 124,794
Schedule Of Fair Value Of Warrants	The Monte Carlo Options Lattice pricing model was used to estimate the fair value of the warrants outstanding: March 31, December 31, Assumptions for Pricing Model: Expected term in years 0.35 0.59 Volatility range for years 145 % 143 % Risk-free interest rate 2.09 % 1.76 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 124,794 $ 152,927

Stock Warrants (Tables)

Stock Warrants (Tables)	3 Months Ended
	Mar. 31, 2018
Stockholders' Equity Note [Abstract]
Changes in Warrants	Number of Warrants Outstanding at December 31, 2017 1,184,912 Exercised During the Period (27,500) Issued During the Period 1,200,000 Expired During the Period — Warrants Outstanding at March 31, 2018 2,357,412

Stock Based Compensation Plans

Stock Based Compensation Plans (Tables)	3 Months Ended
	Mar. 31, 2018
Stock Based Compensation Plans [Abstract]
Stock option plans	Number of Weighted Outstanding at December 31, 2017 1,510,244 $ 5.04 Granted — — Exercised — — Expired or Forfeited (29,435) 7.81 Outstanding at March 31, 2018 1,480,809 $ 4.99

Contractual Obligations (Tables

Contractual Obligations (Tables)	3 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Contractual Payment Obligations for Operating Leases	Total 2018 (9 months remaining) $ 332,932 2019 $ 443,910 2020 $ 383,483 2021 $ 7,816 2022 9,119 Total $ 1,177,260

Basis of Presentation (Addition

Basis of Presentation (Additional Information (Detail) - Toshiba Japan [Member]	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Basis Of Presentation [Line Items]
Engineering Revenues Percentage	94.00%	96.00%
Sales Revenue, Net [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	18.00%	20.00%
Accounts Receivable [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	25.00%	75.00%

Revenue Recognition and Contr29

Revenue Recognition and Contracts with Customers (Detailed effect to our consolidated balance sheet) (Detail) - USD ($)	Jan. 02, 2018	Mar. 31, 2018
Unearned Revenue, Beginning balance	$ 81,724
Unearned Revenue, New Revenue Standard Adjustment	(81,724)
Unearned Revenue, Ending balance	0
Accumulated Deficit, Beginning balance	(96,472,452)	$ (96,472,452)
Accumulated Deficit, New Revenue Standard Adjustment	81,724	81,724
Accumulated Deficit, Ending balance	$ (96,390,728)	$ (101,756,378)

Revenue Recognition and Contr30

Revenue Recognition and Contracts with Customers (Company’s total revenue was comprised of four major product lines) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Sales Revenue Net	$ 1,543,895	$ 1,210,663
Smart Glasses and Video Eyewear Sales [Member]
Sales Revenue Net	1,212,771	959,383
OEM Product Sales [Member]
Sales Revenue Net	114,170	0
Waveguide Sales [Member]
Sales Revenue Net	36,438	0
Engineering Services [Member]
Sales Revenue Net	$ 180,516	$ 251,280

Revenue Recognition and Contr31

Revenue Recognition and Contracts with Customers (Company’s net sales by revenue recognition method as a percentage of total net sales) (Detail)	3 Months Ended
	Mar. 31, 2018
Revenue, Performance Obligation, Percentage	100.00%
Point in Time [Member]
Revenue, Performance Obligation, Percentage	81.00%
Input Method [Member]
Revenue, Performance Obligation, Percentage	12.00%
Output Method [Member]
Revenue, Performance Obligation, Percentage	7.00%

Revenue Recognition and Contr32

Revenue Recognition and Contracts with Customers (Additional Information (Detail) - USD ($)	Jan. 02, 2018	Mar. 31, 2018
Cumulative Effect on Retained Earnings, Net of Tax	$ 81,724	$ 81,724
Revenue, Remaining Performance Obligation		$ 944,000

Loss Per Share (Additional Info

Loss Per Share (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Earnings Per Share, Potentially Dilutive Securities	8,800,821	6,446,784

Inventories, Net (Components of

Inventories, Net (Components of Inventories) (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Inventory Disclosure [Line Items]
Purchased Parts and Components	$ 2,078,104	$ 1,669,209
Work in Process	7,179	25,090
Finished Goods	3,410,879	2,994,342
Less: Reserve for Obsolescence	(1,219,832)	(836,324)
Net	$ 4,276,330	$ 3,852,317

Accrued Expenses (Components of

Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Accrued Liabilities [Line Items]
Accrued Wages and Related Costs	$ 259,910	$ 163,305
Accrued Officer Compensation	235,469	327,469
Accrued Professional Services	185,400	531,728
Accrued Warranty Obligations	198,016	167,503
Accrued Interest	160,649	171,435
Other Accrued Expenses	36,488	28,331
Total	$ 1,075,932	$ 1,389,771

Accrued Expenses (Changes in Ac

Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail)	3 Months Ended
	Mar. 31, 2018USD ($)
Class Of Warrant Or Right [Line Items]
Accrued Warranty Obligations at December 31, 2017	$ 167,503
Reductions for Settling Warranties	(92,547)
Warranties Issued During Period	123,060
Accrued Warranty Obligations at March 31, 2018	$ 198,016

Accrued Expenses (Additional In

Accrued Expenses (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2018
Officers Compensation Payable Compounding Monthly Interest Rate	8.00%

Derivative Liability and Fair38

Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	$ 124,794	$ 152,927
Total liabilities measured at fair value (Current liabilities)	124,794	152,927
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	0	0
Total liabilities measured at fair value (Current liabilities)	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	0	0
Total liabilities measured at fair value (Current liabilities)	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	124,794	152,927
Total liabilities measured at fair value (Current liabilities)	$ 124,794	$ 152,927

Derivative Liability and Fair39

Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail)	3 Months Ended
	Mar. 31, 2018USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value - December 31, 2017	$ 152,927
Change in fair value for the period of warrant derivative liability	(28,133)
Fair value - March 31, 2018	$ 124,794

Derivative Liability and Fair40

Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - Monte Carlo Options Lattice Pricing Model Warrants Outstanding - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Assumptions for Pricing Model:
Expected term in years	4 months 6 days	7 months 2 days
Volatility range for years	145.00%	143.00%
Risk-free interest rate	2.09%	1.76%
Expected annual dividends	0.00%	0.00%
Value of warrants outstanding:
Fair value of warrants	$ 124,794	$ 152,927

Derivative Liability and Fair41

Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - shares	Mar. 31, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	38,100	38,100

Capital Stock (Additional Infor

Capital Stock (Additional Information) (Detail) - USD ($)	Jan. 02, 2015	Jan. 29, 2018	Mar. 31, 2018	Dec. 31, 2017
Preferred Stock Shares Authorized			5,000,000	5,000,000
Stock Issued During Period, Value, New Issues			$ 30,000,000
Preferred Stock Shares Outstanding			49,626	49,626
Dividends Payable			$ 5,287,899	$ 4,849,063
Common Stock Shares Authorized			100,000,000	100,000,000
Common Stock Shares Issued			27,307,455	24,276,275
Common Stock Shares Outstanding			27,307,455	24,276,275
Common Stock, Par Or Stated Value Per Share			$ 0.001	$ 0.001
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 10
Proceeds from Issuance or Sale of Equity		$ 28,025,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		1,200,000
Warrant [Member]
Number Of Warrant Issued For Purchase Of Each Common Stock		0.4
Common Stock [Member]
Stock Issued During Period, Shares, New Issues		3,000,000	3,000,000
Shares Issued, Price Per Share		$ 10
Stock Issued During Period, Value, New Issues		$ 30,000,000	$ 3,000
Series A Preferred Stock [Member]
Conversion of Stock, Description	Each share of Series A Preferred Stock is convertible, at the option of the Series A holder, into 100 shares of the Company’s common stock (determined by dividing the Series A Original Issue Price of $500 by the Series A Conversion Price). The Series A Conversion Price is $5.00, subject to adjustment in the event of stock splits, dividends or other combinations.
Preferred Stock, Dividend Rate, Percentage			6.00%
Series A Preferred Stock [Member] | Corporation [Member]
Stock Issued During Period, Shares, New Issues	49,626
Shares Issued, Price Per Share	$ 500
Stock Issued During Period, Value, New Issues	$ 24,813,000

Stock Warrants (Changes in Warr

Stock Warrants (Changes in Warrants) (Detail)	3 Months Ended
	Mar. 31, 2018shares
Class Of Warrant Or Right [Line Items]
Warrants Outstanding at December 31, 2017	1,184,912
Exercised During the Period	(27,500)
Issued During the Period	1,200,000
Expired During the Period	0
Warrants Outstanding at March 31, 2018	2,357,412

Stock Warrants (Additional Info

Stock Warrants (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2018$ / shares
Class of Warrant or Right [Line Items]
Weighted average term of warrants	1 year 10 months 6 days
Weighted average exercise price of warrants per share	$ 8.29

Stock Based Compensation Plan45

Stock Based Compensation Plans (Summary of Stock Option Activity) (Detail) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Number of Options
Outstanding, Beginning Balance | shares	1,510,244
Granted | shares	0
Exercised | shares	0
Expired or Forfeited | shares	(29,435)
Outstanding, Ending Balance | shares	1,480,809
Weighted Average Exercise Price
Outstanding, Beginning Balance | $ / shares	$ 5.04
Granted | $ / shares	0
Exercised | $ / shares	0
Expired or Forfeited | $ / shares	7.81
Outstanding, Ending Balance | $ / shares	$ 4.99

Stock Based Compensation Plan46

Stock Based Compensation Plans (Additional Information) (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Exercisable Options Outstanding Shares	850,721
Weighted average exercise price per share	$ 4.55
Unvested Options Outstanding, Shares	630,088
Unvested Options Outstanding, Weighted average exercise price	$ 5.57
Unvested Warrant Outstanding Weighted average remaining life (yrs)	8 years 8 months 12 days
Weighted average remaining contractual term on unvested options	6 years 7 months 6 days
Unrecognized stock compensation expense	$ 3,130,000
Weighted average recognition period	2 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 years 6 months		7 years 7 months 6 days
Share-Based Compensation	$ 424,700	$ 210,074
Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Unrecognized stock compensation expense	$ 458,000
Weighted average recognition period	3 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested Issued , Number			100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, NonVested in Period, Fair Value			$ 590,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 5.90
External Board [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Unrecognized stock compensation expense	$ 83,750
Stock Issued During Period, Shares, Issued for Services			50,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value			$ 6.70
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value			$ 335,000

Litigation (Additional Informat

Litigation (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2018
Gain Contingency, Description	We filed a defamation lawsuit against Ricardo Antonio Pearson (a\k\a Richard Pearson) in the Supreme Court of the State of New York, County of New York on April 5, 2018. The Company’s complaint against Mr. Pearson alleges he published false and defamatory articles about the Company. Vuzix is seeking damages in excess of $80 million, including punitive damages, and money damages.

Contractual Obligations (Future

Contractual Obligations (Future Minimum Payments Required Under Operating Lease) (Detail)	Mar. 31, 2018USD ($)
Future Minimum Payments Required Under Operating Lease [Line Items]
2018 (9 months remaining)	$ 332,932
2,019	443,910
2,020	383,483
2,021	7,816
2,022	9,119
Total	$ 1,177,260

Contractual Obligations (Additi

Contractual Obligations (Additional Information) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Commitment Contingencies Disclosure [Line Items]
Operating Leases, Rent Expense	$ 112,896	$ 110,369

Recent Accounting Pronounceme50

Recent Accounting Pronouncements (Additional Information) (Detail) - USD ($)	Jan. 02, 2018	Mar. 31, 2018
Cumulative Effect on Retained Earnings, Net of Tax	$ 81,724	$ 81,724

Subsequent Events (Additional I

Subsequent Events (Additional Information) (Detail) - Stock Compensation Plan [Member] - USD ($)	May 04, 2018	Mar. 31, 2018
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		105,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 6.10
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 640,500
Subsequent Event [Member] | External Directors [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 122,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	12 months
Subsequent Event [Member] | Management [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 518,500
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	48 months