Vuzix (VUZI) 10-Q 10 Aug 20 2020 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2020	Aug. 10, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
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
Trading Symbol	VUZI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		39,004,106
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Current Assets
Cash and Cash Equivalents	$ 13,229,182	$ 10,606,091
Accounts Receivable, Net	1,021,069	1,371,913
Accrued Project Revenue	175,005
Note Receivable	250,000	250,000
Inventories, Net	6,256,333	5,707,867
Licenses	471,809
Manufacturing Vendor Prepayments	617,330	242,539
Prepaid Expenses and Other Assets	902,540	895,098
Total Current Assets	22,923,268	19,073,508
Long-Term Assets
Fixed Assets, Net	3,501,971	4,327,676
Operating Lease Right-of-Use Asset	1,726,700	2,096,190
Patents and Trademarks, Net	1,370,180	1,294,675
Licenses, Net	254,051	314,416
Intangible Asset, Net	775,910	990,000
Other Assets, Net	550,000	350,000
Total Assets	31,102,080	28,446,465
Current Liabilities
Accounts Payable	832,584	1,062,785
Unearned Revenue	65,216	142,463
Accrued Expenses	762,926	885,897
Taxes Payable	24,601	18,687
Operating Lease Right-of-Use Liability	444,495	524,825
Current Portion of Debt	684,286
Total Current Liabilities	2,814,108	2,634,657
Long-Term Liabilities
Operating Lease Right-of-Use Liability	1,282,205	1,571,365
Long-Term Portion of Debt	871,614
Total Long-Term Liabilities	2,153,819	1,571,365
Total Liabilities	4,967,927	4,206,022
Stockholders' Equity
Preferred Stock - $.001 Par Value, 5,000,000 Shares Authorized; 49,626 Shares Issued and Outstanding as of June 30, 2020 and December 31, 2019.	50	50
Common Stock - $.001 Par Value, 100,000,000 Shared Authorized; 39,004,106 and 33,128,620 Shares Issued and Outstanding as of June 30, 2020 and December 31, 2019.	39,004	33,128
Additional Paid-in Capital	180,438,200	168,950,076
Accumulated Deficit	(154,343,101)	(144,742,811)
Total Stockholders' Equity	26,134,153	24,240,443
Total Liabilities and Stockholders' Equity	$ 31,102,080	$ 28,446,465

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	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	39,004,106	33,128,620
Common Stock, Shares Outstanding	39,004,106	33,128,620

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at Dec. 31, 2018	$ 50	$ 27,591	$ 148,695,775	$ (118,266,441)	$ 30,456,975
Balance (in shares) at Dec. 31, 2018	49,626	27,591,670
Stock-Based Compensation Expense		$ 13	749,132		749,145
Stock-Based Compensation Expense (in shares)		12,496
Net Loss				(11,415,695)	(11,415,695)
Balance at Jun. 30, 2019	$ 50	$ 27,604	149,444,907	(129,682,136)	19,790,425
Balance (in shares) at Jun. 30, 2019	49,626	27,604,166
Balance at Dec. 31, 2018	$ 50	$ 27,591	148,695,775	(118,266,441)	30,456,975
Balance (in shares) at Dec. 31, 2018	49,626	27,591,670
Net Loss					(26,476,370)
Balance at Dec. 31, 2019	$ 50	$ 33,128	168,950,076	(144,742,811)	24,240,443
Balance (in shares) at Dec. 31, 2019	49,626	33,128,620
Balance at Mar. 31, 2019	$ 50	$ 27,598	149,109,454	(124,626,202)	24,510,900
Balance (in shares) at Mar. 31, 2019	49,626	27,597,917
Stock-Based Compensation Expense		$ 6	335,453		335,459
Stock-Based Compensation Expense (in shares)		6,249
Net Loss				(5,055,934)	(5,055,934)
Balance at Jun. 30, 2019	$ 50	$ 27,604	149,444,907	(129,682,136)	19,790,425
Balance (in shares) at Jun. 30, 2019	49,626	27,604,166
Balance at Dec. 31, 2019	$ 50	$ 33,128	168,950,076	(144,742,811)	24,240,443
Balance (in shares) at Dec. 31, 2019	49,626	33,128,620
Stock-Based Compensation Expense		$ 876	910,815		911,691
Stock-Based Compensation Expense (in shares)		875,486
Proceeds from Common Stock Offerings		$ 5,000	11,245,000		11,250,000
Proceeds from Common Stock Offerings (in shares)		5,000,000
Direct Costs of Common Stock Offerings			(667,691)		$ (667,691)
Exercise of Stock Options (in shares)					0
Net Loss				(9,600,290)	$ (9,600,290)
Balance at Jun. 30, 2020	$ 50	$ 39,004	180,438,200	(154,343,101)	26,134,153
Balance (in shares) at Jun. 30, 2020	49,626	39,004,106
Balance at Mar. 31, 2020	$ 50	$ 33,128	169,160,041	(150,104,435)	19,088,784
Balance (in shares) at Mar. 31, 2020	49,626	33,128,620
Stock-Based Compensation Expense		$ 876	700,850		701,726
Stock-Based Compensation Expense (in shares)		875,486
Proceeds from Common Stock Offerings		$ 5,000	11,245,000		11,250,000
Proceeds from Common Stock Offerings (in shares)		5,000,000
Direct Costs of Common Stock Offerings			(667,691)		(667,691)
Net Loss				(4,238,666)	(4,238,666)
Balance at Jun. 30, 2020	$ 50	$ 39,004	$ 180,438,200	$ (154,343,101)	$ 26,134,153
Balance (in shares) at Jun. 30, 2020	49,626	39,004,106

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Sales:
Total Sales	$ 3,036,843	$ 2,185,861	$ 4,568,559	$ 3,559,232
Cost of Sales:
Total Cost of Sales	2,240,923	2,033,822	3,692,122	3,367,304
Gross Profit (exclusive of depreciation shown separately below)	795,920	152,039	876,437	191,928
Operating Expenses:
Research and Development	1,796,268	1,987,129	3,819,326	4,503,228
Selling and Marketing	796,857	822,749	1,949,665	2,240,714
General and Administrative	1,799,958	1,803,590	3,337,778	3,699,992
Depreciation and Amortization	640,711	607,965	1,289,253	1,167,054
Impairment of Patents and Trademarks			57,532
Total Operating Expenses	5,033,794	5,221,433	10,453,554	11,610,988
Loss from Operations	(4,237,874)	(5,069,394)	(9,577,117)	(11,419,060)
Other Income (Expense):
Investment Income	7,089	32,739	29,246	91,052
Other Taxes	(9,379)	(10,301)	(27,065)	(62,963)
Foreign Exchange Gain (Loss)	1,498	(8,978)	(25,354)	(24,724)
Total Other Income (Expense)	(792)	13,460	(23,173)	3,365
Loss Before Provision for Income Taxes	(4,238,666)	(5,055,934)	(9,600,290)	(11,415,695)
Net Loss	(4,238,666)	(5,055,934)	(9,600,290)	(11,415,695)
Preferred Stock Dividends	(507,315)	(477,907)	(1,007,153)	(943,672)
Loss Attributable to Common Stockholders	$ (4,745,981)	$ (5,533,841)	$ (10,607,443)	$ (12,359,367)
Basic and Diluted Loss per Share	$ (0.13)	$ (0.20)	$ (0.31)	$ (0.45)
Weighted-average Shares Outstanding - Basic and Diluted	36,341,616	27,602,014	34,735,118	27,598,909
Products Sold
Sales:
Total Sales	$ 2,335,189	$ 1,834,915	$ 3,706,699	$ 3,208,286
Cost of Sales:
Cost of Sales	2,122,329	1,941,350	3,548,367	3,274,832
Sales of Engineering Services
Sales:
Total Sales	701,654	350,946	861,860	350,946
Cost of Sales:
Cost of Sales	$ 118,594	$ 92,472	$ 143,755	$ 92,472

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash Flows from Operating Activities
Net Loss	$ (9,600,290)	$ (11,415,695)
Non-Cash Adjustments
Depreciation and Amortization	1,289,253	1,167,054
Amortization of Software Development Costs in Cost of Sales - Products	91,664	50,000
Stock-Based Compensation	941,933	872,250
Impairment of Patents and Trademarks	57,532
(Increase) Decrease in Operating Assets
Accounts Receivable	(120,965)	(251,810)
Accrued Project Revenue	(175,005)	(281,783)
Inventories	(548,466)	(1,146,421)
Vendor Prepayments	(374,791)	239,558
Prepaid Expenses and Other Assets	(7,442)	496,613
Increase (Decrease) in Operating Liabilities
Accounts Payable	(230,201)	(1,080,970)
Accrued Expenses	(122,971)	(223,286)
Customer Deposits		(151,542)
Unearned Revenue	(77,247)	17,479
Income and Other Taxes Payable	5,915	25,432
Net Cash Flows Used in Operating Activities	(8,871,081)	(11,683,121)
Cash Flows from Investing Activities
Purchase of Fixed Assets	(253,174)	(1,286,811)
Investments in Patents and Trademarks	(140,863)	(137,755)
Investments in Licenses and Other Intangible Assets	(250,000)	(796,226)
Net Cash Used in Investing Activities	(644,037)	(2,220,792)
Cash Flows from Financing Activities
Net Proceeds from Sale of Equity	10,582,309
Proceeds from Term Note	1,555,900
Net Cash Flows from Financing Activities	12,138,209
Net Increase (Decrease) in Cash and Cash Equivalents	2,623,091	(13,903,913)
Cash and Cash Equivalents - Beginning of Period	10,606,091	17,263,643
Cash and Cash Equivalents - End of Period	13,229,182	3,359,730
Supplemental Disclosures
Unamortized Common Stock Expense included in Prepaid Expenses	223,496	$ 123,105
Non-Cash Investment in Licenses	471,809
Stock-Based Compensation Expense - Expensed less Previously Issued	$ 31,118

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Basis of Presentation	Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements of Vuzix Corporation (“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 (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. The results of the Company’s operations for the three and six months ended June 30, 2020 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 December 31, 2019, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2020. Going Concern The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These unaudited consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. The Company incurred net losses for the six months ended June 30, 2020 of $9,600,290 and annual net losses of $26,476,370 in 2019 and $21,875,713 in 2018. As of June 30, 2020, the Company had an accumulated deficit of $154,343,101. The Company’s cash requirements are primarily for funding operating losses, research and development, working capital, and capital expenditures. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily by the sale of equity securities. On May 10, 2020, the Company entered into a securities purchase agreement with certain purchasers for the sale of an aggregate of 5,000,000 shares of the Company’s common stock in a registered direct offering at a purchase price of $2.25 per share for aggregate gross sale proceeds of $11,250,000. The purchase agreement closed on May 13, 2020. The Company received net proceeds after issuance costs and expenses of $10,582,309. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● the expected growing success of our third-generation monocular device for enterprise, the M400 Smart Glasses, which entered production near the end of the third quarter of 2019, and to date customer interest and adoption of the M400 has been more rapid than earlier models; ​ ● the introduction of the M4000 in the Fall of 2020 which will be the Company’s next generation see-through waveguide-based product specifically designed for the enterprise market; ​ ● the continued sale of our existing M300XL finished goods and Blade component inventory, of which we have significant levels; ​ ● increased efforts to further promote our engineering services programs, which result in overall higher gross margins since such programs enable the absorption of some of our operating costs by utilizing a significant portion of our internal engineering fixed salary costs; ​ ● continued to pursue licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ​ ● implementation of a Company-wide voluntary payroll reduction program where employees could take salary reductions between 5% to 50% of their base salary for the period from May to December 2020 in exchange for shares of common stock at a value of 150% of the net cash wage reduction. The cash savings under this program will be approximately $888,000. The issuance of the related stock awards is further explained in Note 12; ​ ● decreased tradeshow and external PR expenditures; ​ ● right-sized operations and implemented greater control of operating costs across all areas of the Company, including head-count freezes or reductions; ​ ● delayed or curtailed discretionary and non-essential capital expenditures not related to near-term new products; ​ ● reduced the rate of new product introductions and leveraged existing platforms to reduce new product development and engineering costs; and ​ ● further reduced the rate of research and development spending on new technologies, particularly the use of external contractors. ​ Based upon our current amount of cash on hand, management’s historical ability to raise capital, and our ability to manage our cost structure and adjust operating plans if and as required, we have concluded that substantial doubt of our ability to continue as a going concern has been alleviated. Customer Concentrations For the three months ended June 30, 2020, no one customer represented more than 10% of total product revenue and two defense customers represented 100% of engineering services revenue. For the three months ended June 30, 2019, one customer represented 48% of total product revenue and one defense customer represented 100% of engineering services revenue. For the six months ended June 30, 2020, no one customer represented more than 10% of total product revenue and two defense customers represented 100% of engineering services revenue. For the six months ended June 30, 2019, one customer represented 30% of total product revenue. As of June 30, 2020, three customers represented 36%, 20% and 12% of accounts receivable, respectively, and one defense customer represented 100% of accrued project revenue. As of December 31, 2019, three customers represented 32%, 26% and 13%, respectively, of accounts receivable. 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	6 Months Ended
	Jun. 30, 2020
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 four major product lines: Smart Glasses Sales, OEM Product Sales, Waveguide and Display Engine Sales, and Engineering Services. The following table summarizes the revenue recognized by major product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2020 2019 2020 2019 Revenues ​ ​ ​ ​ Smart Glasses Sales ​ $ 2,335,189 ​ $ 835,847 ​ $ 3,706,699 ​ $ 2,114,218 OEM Product Sales ​ — ​ 951,570 ​ — ​ 951,570 Waveguide and Display Engine Sales ​ — ​ 47,498 ​ — ​ 142,498 Engineering Services ​ 701,654 ​ 350,946 ​ 861,860 ​ 350,946 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue ​ $ 3,036,843 ​ $ 2,185,861 ​ $ 4,568,559 ​ $ 3,559,232 ​ Significant Judgments Under Topic 606 “Revenue from Contracts with Customers”, there are 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 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 our product and include 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 measuring progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our Engineering Services is measured by the Company’s costs incurred as a percentage of total expected costs to project completion as the inputs of actual costs incurred by the Company are directly correlated with progress of completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time for our Engineering Services correlate directly with the transfer of control of the underlying assets to our customers. Our standard product sales include a twelve 12 eighteen 18 twelve 12 twelve 12 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 six months ended June 30, 2020: ​ ​ ​ ​ ​ ​ % of Total Net Sales Point-in-Time 77 % Over Time – Input Method 23 % ​ ​ ​ ​ Total 100 % ​ Remaining Performance Obligations As of June 30, 2020, the Company had less than $10,000 of remaining performance obligations under two current waveguide development projects with two global aerospace and defense firms, which represents the remainder of the total transaction price of these development agreements of $855,000, less revenue recognized under percentage of completion in the six months ended June 30, 2020. The Company currently expects to recognize the remaining revenue relating to these existing performance obligations of $10,000 in the third quarter of 2020. Revenues earned less amounts invoiced at June 30, 2020 in the amount of $175,005 are reflected as Accrued Project Revenue in the accompanying Consolidated Balance Sheets. As of June 30, 2020, the Company had $43,000 of remaining performance obligations related to its extended warranties, which are included in deferred revenue on our Consolidated Balance Sheets. The Company is recognizing this deferred revenue on a straight-line basis ending on September 30, 2020.

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2020
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 and warrants, and the conversion of convertible preferred shares. 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 six months ended June 30, 2020 and 2019, 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 June 30, 2020 and 2019, there were 14,147,580 and 7,390,669 common stock share equivalents, respectively, potentially issuable under conversion of preferred shares, options, and warrants that could dilute basic earnings per share in the future.

Inventories, Net

Inventories, Net	6 Months Ended
	Jun. 30, 2020
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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 5,351,135 ​ $ 5,985,214 Work-in-Process ​ 2,072,466 ​ 2,414,142 Finished Goods ​ 2,734,039 ​ 2,096,744 Less: Reserve for Obsolescence ​ (3,901,307) ​ (4,788,233) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 6,256,333 ​ $ 5,707,867 ​

Licenses, Net

Licenses, Net	6 Months Ended
	Jun. 30, 2020
Licenses, Net
Licenses, Net	Note 5 – Licenses, Net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 493,717 ​ $ 493,717 Less: Accumulated Amortization ​ (312,746) ​ (179,301) Additions ​ 544,889 ​ — ​ ​ ​ 725,860 ​ ​ 314,416 Less: Current Portion ​ ​ (471,809) ​ ​ — ​ ​ ​ ​ ​ ​ ​ Licenses, Net ​ $ 254,051 ​ $ 314,416 ​ In January 2020, the Company entered into a global non-exclusive master reseller agreement for certain smart glasses software under which it committed to sell a minimum number of software licenses in 2020. The amount capitalized, included in current assets on the Consolidated Balance Sheets, will be expensed to cost of goods sold during the period based upon actual software licenses sold, with any of the remaining prepaid licenses expensed at the end of the term of the master reseller agreement.

Debt

Debt	6 Months Ended
	Jun. 30, 2020
Debt
Debt	Note 6 – Debt Long-term debt consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ Unsecured Term Note - Two-year term beginning on April 22, 2020. The note bears an annual interest rate of six (6) ​ $ 1,555,900 ​ $ — ​ Less: Amount Due Within One Year ​ (684,286) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Due After One Year ​ $ 871,614 ​ $ — ​ ​ On April 21, 2020, the Company entered into a Paycheck Protection Program (“PPP”) Term Note (“PPP Note”) under the Paycheck Protection Program of the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the U.S. Small Business Administration (the “US SBA”). The Company received total proceeds of $1,555,900 from the PPP Note. The PPP Note bears interest at the annual rate of 1%, with the first six months of interest deferred, has a term of two years, and is unsecured and guaranteed by the US SBA. The Company intends to apply for forgiveness of the PPP Note once rules are finalized, with the amount which may be forgiven expected to equal the sum of payroll costs, covered rent obligations, and covered utility payments incurred by the Company during the twenty four-week period beginning on April 21, 2020, calculated in accordance with the terms of the CARES Act.

Intangible Asset, Net

Intangible Asset, Net	6 Months Ended
	Jun. 30, 2020
Intangible Asset, Net
Intangible Asset, Net	Note 7 – Intangible Asset, Net ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ Intangible Asset ​ $ 1,500,000 ​ $ 1,500,000 Less: Accumulated Amortization ​ (724,090) ​ (510,000) ​ ​ ​ ​ ​ ​ ​ Intangible Asset, Net ​ $ 775,910 ​ $ 990,000 ​ On October 4, 2018, the Company entered into amendment No. 1 to agreements (the “TDG Amendment”) with TDG Acquisition Company, LLC (“TDG”), aka Six15 Technologies, LLC. The TDG Amendment amends certain provisions of prior agreements between Vuzix and TDG, including an asset purchase agreement dated June 15, 2012, and an authorized reseller agreement dated June 15, 2012. Pursuant to the TDG Amendment, the Company will be permitted to engage in sales of heads-up display components or subsystems (and any services to support such sale) for incorporation into a finished good or system for sale to military organizations, subject to certain conditions. The Company will also be permitted to sell its products to defense and security organizations that include business customers and governmental entity customers that primarily provide security and defense services, including police, fire fighters, EMTs, other first responders, and homeland and border security. The Company will owe TDG commissions with respect to all such sales until June 15, 2022, when the amendment and original non-compete agreements expire, after which the Company will be free to sell any product to any customer world-wide with no commission liability to TDG. Total commissions expense under this agreement for the three months ended June 30, 2020 and 2019 was $140,364 and nil, respectively. Total commissions expense under this agreement for the six months ended June 30, 2020 and 2019 was $176,944 and nil, respectively. All commissions expense related to this agreement are included in Selling and Marketing expense. Total amortization expense for this intangible asset for the three months ended June 30, 2020 and 2019 was $112,090 and $102,000. Total amortization expense for this intangible asset for the six months ended June 30, 2020 and 2019 was $214,090 and $204,000. Future monthly amortization expense for the next 23 months is approximately $34,000 per month or $408,000 per year.

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Accrued Expenses	Note 8 – Accrued Expenses Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 299,607 ​ $ 394,669 Accrued Professional Services ​ 109,480 ​ 217,721 Accrued Warranty Obligations ​ 111,769 ​ 98,893 Other Accrued Expenses ​ 242,070 ​ 174,614 ​ ​ ​ ​ ​ ​ ​ Total ​ $ 762,926 ​ $ 885,897 ​ The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve 12 The changes in the Company’s accrued warranty obligations for the six months ended June 30, 2020 and the balance as of December 31, 2019 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligation at December 31, 2019 ​ $ 98,893 Reductions for Settling Warranties ​ (59,780) Warranties Issued During Period ​ 72,656 ​ ​ ​ ​ Accrued Warranty Obligations at June 30, 2020 ​ $ 111,769 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
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	6 Months Ended
	Jun. 30, 2020
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 special rights and qualifications. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of June 30, 2020 and December 31, 2019, 49,626 of which are designated as Series A Preferred Stock. There were 49,626 shares of Series A Preferred Stock issued and outstanding on June 30, 2020 and December 31, 2019. 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 shares of the Company's Series A Preferred Stock, at a purchase price of $500 per share, for an aggregate purchase price of $24,813,000. 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, which is equal to $5.00). Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6% per year, compounded quarterly and payable in cash or in kind, at the Company’s sole discretion. As of June 30, 2020, total accumulated and unpaid preferred dividends were $9,608,245. As of December 31, 2019, total accumulated and unpaid preferred dividends were $8,601,092. There were no declared preferred dividends owed as of June 30, 2020 or December 31, 2019. 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 shares, par value of $0.001. There were 39,004,106 and 33,128,620 shares of common stock issued outstanding ​ Historically, the Company has met its cash needs primarily by the sale of equity securities. On May 10, 2020, the Company entered into a securities purchase agreement with certain purchasers for the sale of an aggregate of 5,000,000 shares of the Company’s common stock in a registered direct offering at a purchase price of $2.25 per share for aggregate gross sale proceeds of $11,250,000. The purchase agreement closed on May 13, 2020. The Company received net proceeds after issuance costs and expenses of $10,582,309. ​ On May 4, 2020, the Company implemented a Company-wide voluntary payroll reduction program for all employees, pursuant to which they could take salary reductions between of 5% to 50% for the period from May to December 2020 in exchange for shares of common stock at a value of 150% of the net cash wage reduction. The cash savings under this program will be approximately $888,000 and resulted in the issuance of stock awards under the Company’s 2014 Stock Incentive Plan of 830,486 shares. These awards are subject to vesting and resale rules as disclosed in Note 12.

Stock Warrants

Stock Warrants	6 Months Ended
	Jun. 30, 2020
Stock Warrants
Stock Warrants	Note 11 – Stock Warrants A summary of the various changes in warrants during the six months ended June 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ Number of ​ ​ Warrants Warrants Outstanding at December 31, 2019 6,512,516 Exercised During the Period — Issued During the Period — Expired During the Period — ​ ​ ​ Warrants Outstanding at June 30, 2020 6,512,516 ​ Of the outstanding warrants as of June 30, 2020, 1,033,062 expire on June 18, 2021 and the remaining 5,479,454 expire on January 2, 2022. The weighted average remaining term of the warrants was 1.4 years. The weighted average exercise price was $4.56 per share.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2020
Stock-Based Compensation
Stock-Based Compensation	Note 12 – Stock-Based Compensation A summary of stock option activity for the six months ended June 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number of ​ Average ​ Options Exercise Price Outstanding at December 31, 2019 1,383,591 ​ $ 4.77 Granted 1,370,000 ​ 1.36 Exercised — ​ — Expired or Forfeited (81,127) ​ 2.97 ​ ​ ​ ​ ​ ​ Outstanding at June 30, 2020 2,672,464 ​ $ 3.08 ​ The weighted average remaining contractual term for all options as of June 30, 2020 and December 31, 2019 was 7.7 years and 6.3 years, respectively. As of June 30, 2020, there were 1,135,945 options that were fully vested and exercisable at a weighted average exercise price of $4.51 per share. The weighted average remaining contractual term on the vested options is 5.2 years. As of June 30, 2020, there were 1,536,519 unvested options exercisable at a weighted average exercise price of $2.02 per share. The weighted average remaining contractual term on the unvested options is 9.5 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At June 30, 2020, the Company had approximately $2,236,787 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 2.8 years. On May 4, 2020, the Company implemented a Company-wide voluntary payroll reduction program for all employees, pursuant to which they could take salary reductions between of 5% to 50% for the period from May to December 2020 in exchange for shares of common stock at a value of 150% of the net cash wage reduction. The cash savings under this program will be approximately $888,000 and resulted in the issuance of stock awards under the Company’s 2014 Stock Incentive Plan. The fair market value of these stock awards has been determined to be $1.53 per share and a total of 830,486 shares were issued for a total fair market value of $1,270,641. These awards are subject to vesting and resale rules. The total expense of $1,270,641 will be amortized over the salary reduction period or eight months, which began in May. For the three months ended June 30, 2020 and 2019, the Company recorded total stock-based compensation expense, including stock awards, of $639,358 and $382,000, respectively. For the six months ended June 30, 2020 and 2019, the Company recorded total stock-based compensation expense, including stock awards, of $941,933 and $872,250, respectively

Litigation

Litigation	6 Months Ended
	Jun. 30, 2020
Litigation
Litigation	Note 13 – 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 involving our property, except as follows: On or about December 16, 2019, Throop, LLC ("Throop") filed a

Right-of-Use Assets and Liabili

Right-of-Use Assets and Liabilities	6 Months Ended
	Jun. 30, 2020
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 June 30, 2020 were as follows: ​ ​ ​ ​ ​ Remainder of 2020 ​ $ 261,051 2021 ​ 512,285 2022 ​ 536,270 2023 ​ 536,270 2024 ​ 44,689 Total Future Lease Payments ​ 1,890,565 Less: Imputed Interest ​ (163,865) Total Lease Liability Balance ​ $ 1,726,700 ​ Operating lease costs under the operating leases totaled $156,606 and $149,777 for the three months ended June 30, 2020 and 2019, respectively. Operating lease costs under the operating leases totaled $306,606 and $290,077 for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the weighted average discount rate was 4.5% and the weighted average remaining lease term was 3.5 years.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2020
Basis of Presentation
Basis of Presentation	The accompanying unaudited consolidated financial statements of Vuzix Corporation (“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 (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. The results of the Company’s operations for the three and six months ended June 30, 2020 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 December 31, 2019, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 16, 2020.
Going Concern	Going Concern The accompanying unaudited consolidated financial statements have been prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These unaudited consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. The Company incurred net losses for the six months ended June 30, 2020 of $9,600,290 and annual net losses of $26,476,370 in 2019 and $21,875,713 in 2018. As of June 30, 2020, the Company had an accumulated deficit of $154,343,101. The Company’s cash requirements are primarily for funding operating losses, research and development, working capital, and capital expenditures. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily by the sale of equity securities. On May 10, 2020, the Company entered into a securities purchase agreement with certain purchasers for the sale of an aggregate of 5,000,000 shares of the Company’s common stock in a registered direct offering at a purchase price of $2.25 per share for aggregate gross sale proceeds of $11,250,000. The purchase agreement closed on May 13, 2020. The Company received net proceeds after issuance costs and expenses of $10,582,309. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● the expected growing success of our third-generation monocular device for enterprise, the M400 Smart Glasses, which entered production near the end of the third quarter of 2019, and to date customer interest and adoption of the M400 has been more rapid than earlier models; ​ ● the introduction of the M4000 in the Fall of 2020 which will be the Company’s next generation see-through waveguide-based product specifically designed for the enterprise market; ​ ● the continued sale of our existing M300XL finished goods and Blade component inventory, of which we have significant levels; ​ ● increased efforts to further promote our engineering services programs, which result in overall higher gross margins since such programs enable the absorption of some of our operating costs by utilizing a significant portion of our internal engineering fixed salary costs; ​ ● continued to pursue licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ​ ● implementation of a Company-wide voluntary payroll reduction program where employees could take salary reductions between 5% to 50% of their base salary for the period from May to December 2020 in exchange for shares of common stock at a value of 150% of the net cash wage reduction. The cash savings under this program will be approximately $888,000. The issuance of the related stock awards is further explained in Note 12; ​ ● decreased tradeshow and external PR expenditures; ​ ● right-sized operations and implemented greater control of operating costs across all areas of the Company, including head-count freezes or reductions; ​ ● delayed or curtailed discretionary and non-essential capital expenditures not related to near-term new products; ​ ● reduced the rate of new product introductions and leveraged existing platforms to reduce new product development and engineering costs; and ​ ● further reduced the rate of research and development spending on new technologies, particularly the use of external contractors. ​ Based upon our current amount of cash on hand, management’s historical ability to raise capital, and our ability to manage our cost structure and adjust operating plans if and as required, we have concluded that substantial doubt of our ability to continue as a going concern has been alleviated.
Customer Concentrations	Customer Concentrations For the three months ended June 30, 2020, no one customer represented more than 10% of total product revenue and two defense customers represented 100% of engineering services revenue. For the three months ended June 30, 2019, one customer represented 48% of total product revenue and one defense customer represented 100% of engineering services revenue. For the six months ended June 30, 2020, no one customer represented more than 10% of total product revenue and two defense customers represented 100% of engineering services revenue. For the six months ended June 30, 2019, one customer represented 30% of total product revenue. As of June 30, 2020, three customers represented 36%, 20% and 12% of accounts receivable, respectively, and one defense customer represented 100% of accrued project revenue. As of December 31, 2019, three customers represented 32%, 26% and 13%, respectively, of accounts receivable.
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.

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue Recognition and Contracts with Customers
Schedule of company's total revenue by major product lines	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2020 2019 2020 2019 Revenues ​ ​ ​ ​ Smart Glasses Sales ​ $ 2,335,189 ​ $ 835,847 ​ $ 3,706,699 ​ $ 2,114,218 OEM Product Sales ​ — ​ 951,570 ​ — ​ 951,570 Waveguide and Display Engine Sales ​ — ​ 47,498 ​ — ​ 142,498 Engineering Services ​ 701,654 ​ 350,946 ​ 861,860 ​ 350,946 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue ​ $ 3,036,843 ​ $ 2,185,861 ​ $ 4,568,559 ​ $ 3,559,232 ​
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 net sales by revenue recognition method as a percentage of total net sales for the six months ended June 30, 2020: ​ ​ ​ ​ ​ ​ % of Total Net Sales Point-in-Time 77 % Over Time – Input Method 23 % ​ ​ ​ ​ Total 100 % ​

Inventories, Net (Tables)

Inventories, Net (Tables)	6 Months Ended
	Jun. 30, 2020
Inventories, Net
Schedule of Inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 5,351,135 ​ $ 5,985,214 Work-in-Process ​ 2,072,466 ​ 2,414,142 Finished Goods ​ 2,734,039 ​ 2,096,744 Less: Reserve for Obsolescence ​ (3,901,307) ​ (4,788,233) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 6,256,333 ​ $ 5,707,867

Licenses, Net (Tables)

Licenses, Net (Tables)	6 Months Ended
	Jun. 30, 2020
Schedule of Finite-Lived Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ Intangible Asset ​ $ 1,500,000 ​ $ 1,500,000 Less: Accumulated Amortization ​ (724,090) ​ (510,000) ​ ​ ​ ​ ​ ​ ​ Intangible Asset, Net ​ $ 775,910 ​ $ 990,000 ​
Licenses [Member]
Schedule of Finite-Lived Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 493,717 ​ $ 493,717 Less: Accumulated Amortization ​ (312,746) ​ (179,301) Additions ​ 544,889 ​ — ​ ​ ​ 725,860 ​ ​ 314,416 Less: Current Portion ​ ​ (471,809) ​ ​ — ​ ​ ​ ​ ​ ​ ​ Licenses, Net ​ $ 254,051 ​ $ 314,416

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt
Schedule of debt	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ Unsecured Term Note - Two-year term beginning on April 22, 2020. The note bears an annual interest rate of six (6) ​ $ 1,555,900 ​ $ — ​ Less: Amount Due Within One Year ​ (684,286) ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ Amount Due After One Year ​ $ 871,614 ​ $ — ​

Intangible Asset, Net (Tables)

Intangible Asset, Net (Tables)	6 Months Ended
	Jun. 30, 2020
Intangible Asset, Net
Schedule of Finite-Lived Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, December 31, ​ ​ 2020 ​ 2019 ​ ​ ​ ​ ​ ​ ​ Intangible Asset ​ $ 1,500,000 ​ $ 1,500,000 Less: Accumulated Amortization ​ (724,090) ​ (510,000) ​ ​ ​ ​ ​ ​ ​ Intangible Asset, Net ​ $ 775,910 ​ $ 990,000 ​

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Schedule of Accrued Expenses	Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2020 2019 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 299,607 ​ $ 394,669 Accrued Professional Services ​ 109,480 ​ 217,721 Accrued Warranty Obligations ​ 111,769 ​ 98,893 Other Accrued Expenses ​ 242,070 ​ 174,614 ​ ​ ​ ​ ​ ​ ​ Total ​ $ 762,926 ​ $ 885,897 ​
Schedule of changes in accrued warranty obligations	The changes in the Company’s accrued warranty obligations for the six months ended June 30, 2020 and the balance as of December 31, 2019 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligation at December 31, 2019 ​ $ 98,893 Reductions for Settling Warranties ​ (59,780) Warranties Issued During Period ​ 72,656 ​ ​ ​ ​ Accrued Warranty Obligations at June 30, 2020 ​ $ 111,769

Stock Warrants (Tables)

Stock Warrants (Tables)	6 Months Ended
	Jun. 30, 2020
Stock Warrants
Schedule of changes in warrants	A summary of the various changes in warrants during the six months ended June 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ Number of ​ ​ Warrants Warrants Outstanding at December 31, 2019 6,512,516 Exercised During the Period — Issued During the Period — Expired During the Period — ​ ​ ​ Warrants Outstanding at June 30, 2020 6,512,516 ​

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2020
Stock-Based Compensation
Schedule of Summary of Stock Option Activity	A summary of stock option activity for the six months ended June 30, 2020 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number of ​ Average ​ Options Exercise Price Outstanding at December 31, 2019 1,383,591 ​ $ 4.77 Granted 1,370,000 ​ 1.36 Exercised — ​ — Expired or Forfeited (81,127) ​ 2.97 ​ ​ ​ ​ ​ ​ Outstanding at June 30, 2020 2,672,464 ​ $ 3.08 ​

Right-of-Use Assets and Liabi_2

Right-of-Use Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2020
Right-of-Use Assets and Liabilities
Schedule of Future lease payments under operating leases	Future lease payments under operating leases as of June 30, 2020 were as follows: ​ ​ ​ ​ ​ Remainder of 2020 ​ $ 261,051 2021 ​ 512,285 2022 ​ 536,270 2023 ​ 536,270 2024 ​ 44,689 Total Future Lease Payments ​ 1,890,565 Less: Imputed Interest ​ (163,865) Total Lease Liability Balance ​ $ 1,726,700 ​

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Details) - USD ($)	May 13, 2020	May 04, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Summary Of Significant Accounting Policies [Line Items]
Net Income Loss			$ (4,238,666)	$ (5,055,934)	$ (9,600,290)	$ (11,415,695)	$ (26,476,370)	$ (21,875,713)
Retained Earnings Accumulated Deficit			$ (154,343,101)		$ (154,343,101)		$ (144,742,811)
Sale of Stock, Number of Shares Issued in Transaction	5,000,000
Shares Issued, Price Per Share	$ 2.25
Proceeds From Issuance Or Sale Of Equity Gross	$ 11,250,000
Proceeds from Issuance or Sale of Equity, Net	$ 10,582,309
Common Stock Value As Percentage Of Wage Reduction Value, Percentage		150
Cash Savings Under Payroll Reduction Program		$ 888,000
Sales of Engineering Services
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			100.00%	100.00%	100.00%
Accrued Project Revenue [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage					100.00%
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Salary Reduction Percentage		5.00%
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Salary Reduction Percentage		50.00%
Maximum [Member] | Total revenues [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			10.00%		10.00%
One customer | Total revenues [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage				48.00%		30.00%
One customer | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage					36.00%		32.00%
Two customers | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage					20.00%		26.00%
Three Customers | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage					12.00%		13.00%

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue	$ 3,036,843	$ 2,185,861	$ 4,568,559	$ 3,559,232
Smart Glasses Sales [Member]
Revenue	2,335,189	835,847	3,706,699	2,114,218
OEM Product Sales [Member]
Revenue		951,570		951,570
Waveguide and Display Engine Sales [Member]
Revenue		47,498		142,498
Engineering Services [Member]
Revenue	$ 701,654	$ 350,946	$ 861,860	$ 350,946

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details)	6 Months Ended
	Jun. 30, 2020
Revenue Performance Obligation Percentage	100.00%
Point-in-Time - Output Method [Member]
Revenue Performance Obligation Percentage	77.00%
Over Time - Input Method [Member]
Revenue Performance Obligation Percentage	23.00%

Revenue Recognition and Contr_5

Revenue Recognition and Contracts with Customers - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Standard Product Warranty Term	12 months
Revenue, Performance Obligation, Total Transaction Price	$ 855,000
Expects to Recognize Sales in Existing Remaining Performance Obligation	10,000
Accrued Project Revenue	175,005
Maximum [Member]
Revenue, Remaining Performance Obligation	$ 10,000
Extended Warranties [Member]
Standard Product Warranty Term	12 months
Revenue, Remaining Performance Obligation	$ 43,000
OEM Product and Waveguide Sales [Member]
Standard Product Warranty Term	18 months

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Loss Per Share
Earnings Per Share, Potentially Dilutive Securities	14,147,580	7,390,669

Inventories, Net - Components o

Inventories, Net - Components of Inventories (Detail) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Inventories, Net
Purchased Parts and Components	$ 5,351,135	$ 5,985,214
Work in Process	2,072,466	2,414,142
Finished Goods	2,734,039	2,096,744
Less: Reserve for Obsolescence	(3,901,307)	(4,788,233)
Inventories, Net	$ 6,256,333	$ 5,707,867

Licenses, Net (Details)

Licenses, Net (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Licenses,Net [Line Items]
Less: Current Portion	$ (471,809)
Licenses, Net	254,051	$ 314,416
Licensing Agreements [Member]
Licenses,Net [Line Items]
Licenses	493,717	493,717
Less: Accumulated Amortization	(312,746)	(179,301)
Additions	544,889
Licenses, Net	725,860	314,416
Less: Current Portion	(471,809)
Licenses, Net	$ 254,051	$ 314,416

Debt (Details)

Debt (Details) - USD ($)	Apr. 22, 2020	Apr. 21, 2020	Jun. 30, 2020
Debt Instrument [Line Items]
Less: Amount Due Within One Year			$ (684,286)
Amount Due After One Year			871,614
Unsecured Term	2 years
Unsecured Debt [Member]
Debt Instrument [Line Items]
Unsecured Term Note - Two year term beginning on April 22, 2020. The note bears an annual interest rate of 1%, with no principal or interest payments for six (6) months			1,555,900
Less: Amount Due Within One Year			(684,286)
Amount Due After One Year			$ 871,614
Unsecured Term		6 months
Interest rate (as a percent)	1.00%
Period of principal or interest payments	6 months
Paycheck Protection Program [Member]
Debt Instrument [Line Items]
Unsecured Term		2 years
Interest rate (as a percent)		1.00%
Proceeds from Issuance of Other Long-term Debt		$ 1,555,900

Intangible Asset, Net - Schedul

Intangible Asset, Net - Schedule of Finite-Lived Intangible Assets (Details) - Intangible Assets [Member] - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Intangible Asset	$ 1,500,000	$ 1,500,000
Less: Accumulated Amortization	(724,090)	(510,000)
Intangible Asset, Net	$ 775,910	$ 990,000

Intangible Asset, Net - Additio

Intangible Asset, Net - Additional Information (Details) - TDG Acquisition Company LLC [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Amortization of Intangible Assets	$ 112,090	$ 102,000	$ 214,090	$ 204,000
Finite-Lived Intangible Assets, Remaining Amortization Period			23 months
Future monthly amortization expense	34,000		$ 34,000
Future per annum amortization expense	408,000		408,000
Selling and Marketing Expense
Total commission expense	$ 140,364	$ 0	$ 176,944	$ 0

Accrued Expenses - Components o

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($)	Jun. 30, 2020	Dec. 31, 2019
Accrued Expenses
Accrued Wages and Related Costs	$ 299,607	$ 394,669
Accrued Professional Services	109,480	217,721
Accrued Warranty Obligations	111,769	98,893
Other Accrued Expenses	242,070	174,614
Total	$ 762,926	$ 885,897

Accrued Expenses - Changes in A

Accrued Expenses - Changes in Accrued Warranty Obligations (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Accrued Expenses
Accrued Warranty Obligation	$ 98,893
Reductions for Settling Warranties	(59,780)
Warranties Issued During Period	72,656
Accrued Warranty Obligations	$ 111,769

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020
Accrued Expenses
Standard Product Warranty Term	12 months

Capital Stock - Additional Info

Capital Stock - Additional Information (Details) - USD ($)	May 13, 2020	May 04, 2020	Jan. 02, 2015	Jun. 30, 2020	Jun. 30, 2020	Dec. 31, 2019
Preferred Stock, Shares Authorized				5,000,000	5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share				$ 0.001	$ 0.001	$ 0.001
Preferred Stock, Shares Issued				49,626	49,626	49,626
Preferred Stock, Shares Outstanding				49,626	49,626	49,626
Shares Issued, Price Per Share	$ 2.25
Stock Issued During Period, Value, New Issues				$ 11,250,000	$ 11,250,000
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, which is equal to $5.00)
Dividends Payable				9,608,245	9,608,245	$ 8,601,092
Preferred Stock, Dividends, Declared				$ 0	$ 0	$ 0
Common Stock, Shares Authorized				100,000,000	100,000,000	100,000,000
Common Stock, Shares, Issued				39,004,106	39,004,106	33,128,620
Common Stock, Shares, Outstanding				39,004,106	39,004,106	33,128,620
Common Stock, Par or Stated Value Per Share				$ 0.001	$ 0.001	$ 0.001
Sale of Stock, Number of Shares Issued in Transaction	5,000,000
Proceeds From Issuance Or Sale Of Equity Gross	$ 11,250,000
Proceeds from Issuance or Sale of Equity, Net	$ 10,582,309
Common Stock Value As Percentage Of Wage Reduction Value, Percentage		150
Cash Savings Under Payroll Reduction Program		$ 888,000
Stock Incentive Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		830,486
Minimum [Member]
Salary Reduction Percentage		5.00%
Maximum [Member]
Salary Reduction Percentage		50.00%
Series A Preferred Stock [Member]
Preferred Stock, Shares Issued				49,626	49,626	49,626
Preferred Stock, Shares Outstanding				49,626	49,626	49,626
Number of shares for convertible preferred stock			100
Conversion price of convertible Preferred Stock			$ 5
Share Price			$ 500
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 War

Stock Warrants - Changes in Warrants (Details)	6 Months Ended
	Jun. 30, 2020shares
Stock Warrants
Warrants Outstanding, Beginning of Year	6,512,516
Exercised During the Year	0
Issued During the Year	0
Expired During the Year	0
Warrants Outstanding, End of Year	6,512,516

Stock Warrants - Additional Inf

Stock Warrants - Additional Information (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Class of Warrant or Right [Line Items]
Class of Warrant or Right Weighted Average Exercise Price of Warrants or Rights | $ / shares	$ 4.56
Warrants
Class of Warrant or Right [Line Items]
Warrants, expire on June 18, 2021	1,033,062
Remaining of warrants, expires on January 2, 2022	5,479,454
Weighted average term of warrants	1 year 4 months 24 days

Stock Option Plans - Summary of

Stock Option Plans - Summary of Stock Option Activity (Details)	6 Months Ended
	Jun. 30, 2020$ / sharesshares
Number of Options
Outstanding, Beginning Balance | shares	1,383,591
Granted | shares	1,370,000
Exercised | shares	0
Expired or Forfeited | shares	(81,127)
Outstanding, Ending Balance | shares	2,672,464
Weighted Average Exercise Price
Outstanding, Beginning Balance | $ / shares	$ 4.77
Granted | $ / shares	1.36
Exercised | $ / shares	0
Expired or Forfeited | $ / shares	2.97
Outstanding, Ending Balance | $ / shares	$ 3.08

Stock Option Plans - Additional

Stock Option Plans - Additional Information (Details) - USD ($)	May 04, 2020	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Stock-Based Compensation Plans
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term				7 years 8 months 12 days		6 years 3 months 18 days
Exercisable Options Outstanding Shares		1,135,945		1,135,945
Weighted average exercise price per share, Exercisable		$ 4.51		$ 4.51
Weighted average remaining contractual term on vested options				5 years 2 months 12 days
Unvested Options Outstanding, Shares		1,536,519		1,536,519
Unvested Options Outstanding, Weighted average exercise price				$ 2.02
Unvested Options Outstanding Weighted average remaining life (years)				9 years 6 months
Unrecognized stock compensation expense		$ 2,236,787		$ 2,236,787
Weighted average recognition period				2 years 9 months 18 days
Common Stock Value As Percentage Of Wage Reduction Value, Percentage	150
Cash Savings Under Payroll Reduction Program	$ 888,000
Share-based Compensation		$ 639,358	$ 382,000	$ 941,933	$ 872,250
Stock Incentive Plan 2014 [Member]
Stock-Based Compensation Plans
Weighted average fair value per share	$ 1.53
Number of options granted	830,486
Fair value of options granted during the period	$ 1,270,641
Minimum [Member]
Stock-Based Compensation Plans
Salary Reduction Percentage	5.00%
Maximum [Member]
Stock-Based Compensation Plans
Salary Reduction Percentage	50.00%

Litigation - Additional Informa

Litigation - Additional Information (Details)	Dec. 16, 2019lawsuit
Litigation
Number of lawsuits	1

Right-of-Use Assets and Liabi_3

Right-of-Use Assets and Liabilities - Operating Leases (Details)	Jun. 30, 2020USD ($)
Right-of-Use Assets and Liabilities
Remainder of 2020	$ 261,051
2021	512,285
2022	536,270
2023	536,270
2024	44,689
Total Future Lease Payments	1,890,565
Less: Imputed Interest	(163,865)
Total Lease Liability Balance	$ 1,726,700

Right-of-Use Assets and Liabi_4

Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Right-of-Use Assets and Liabilities
Operating Leases, Rent Expense	$ 156,606	$ 149,777	$ 306,606	$ 290,077
Operating Lease, Weighted Average Discount Rate, Percent	4.50%		4.50%
Operating Lease, Weighted Average Remaining Lease Term	3 years 6 months		3 years 6 months