Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 10, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 001-35955 | |
Entity Registrant Name | Vuzix Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Central Index Key | 0001463972 | |
Entity Tax Identification Number | 04-3392453 | |
Entity Address, Address Line One | 25 Hendrix Road, Suite A | |
Entity Address, City or Town | West Henrietta | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14586 | |
City Area Code | 585 | |
Local Phone Number | 359-5900 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | VUZI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,667,941 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and Cash Equivalents | $ 113,329,734 | $ 120,203,873 |
Accounts Receivable | 1,551,654 | 2,242,429 |
Inventories, Net | 12,559,066 | 12,151,982 |
Manufacturing Vendor Prepayments | 586,564 | 504,051 |
Prepaid Expenses and Other Assets | 1,470,415 | 2,047,819 |
Total Current Assets | 129,497,433 | 137,150,154 |
Long-Term Assets | ||
Fixed Assets, Net | 5,042,421 | 5,190,438 |
Operating Lease Right-of-Use Asset | 968,269 | 1,117,022 |
Patents and Trademarks, Net | 2,020,099 | 1,988,370 |
Licenses, Net | 1,333,236 | 1,389,936 |
Intangible Asset, Net | 42,821 | 147,548 |
Other Assets, Net | 1,445,897 | 1,483,589 |
Total Assets | 140,350,176 | 148,467,057 |
Current Liabilities | ||
Accounts Payable | 1,223,741 | 2,054,762 |
Unearned Revenue | 29,623 | 27,797 |
Accrued Expenses | 1,127,021 | 1,419,308 |
Income and Other Taxes Payable | 45,692 | 120,242 |
Operating Lease Right-of-Use Liability | 514,204 | 534,146 |
Total Current Liabilities | 2,940,281 | 4,156,255 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 454,065 | 582,876 |
Total Liabilities | 3,394,346 | 4,739,131 |
Stockholders' Equity | ||
Common Stock - $0.001 Par Value, 100,000,000 Shares Authorized; 63,704,626 shares issued and 63,667,941 share outstanding as of March 31, 2022 and 63,672,268 Shares Issued and Outstanding as of December 31, 2021 | 63,705 | 63,672 |
Additional Paid-in Capital | 350,721,326 | 346,736,397 |
Accumulated Deficit | (213,578,144) | (203,072,143) |
Treasury Stock, at cost, 36,685 shares as of March 31, 2022 and 0 shares as of December 31, 2021 | (251,057) | |
Total Stockholders' Equity | 136,955,830 | 143,727,926 |
Total Liabilities and Stockholders' Equity | $ 140,350,176 | $ 148,467,057 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 63,704,626 | 63,672,268 |
Common Stock, Shares Outstanding | 63,667,941 | 63,672,268 |
Treasury Stock, Shares | 36,685 | 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Treasury Stock, at Cost | Total |
Balance at Dec. 31, 2020 | $ 50 | $ 45,645 | $ 210,952,473 | $ (162,694,983) | $ 48,303,185 | |
Balance (in shares) at Dec. 31, 2020 | 49,626 | 45,645,166 | ||||
Stock-Based Compensation Expense | 2,047,378 | 2,047,378 | ||||
Stock Option Exercises | $ 231 | 196,597 | 196,828 | |||
Stock Option Exercises (in shares) | 230,968 | |||||
Stock Warrant Exercises | $ 7,241 | 34,561,297 | 34,568,538 | |||
Stock Warrant Exercises (in shares) | 7,241,028 | |||||
Proceeds from Common Stock Offerings | $ 4,146 | 84,995,865 | 85,000,011 | |||
Proceeds from Common Stock Offerings (in shares) | 4,146,342 | |||||
Direct Costs of Common Stock Offerings | (5,396,139) | (5,396,139) | ||||
Shares Redeemed to Cover Employee Tax Withholdings | $ (83) | (1,144,283) | (1,144,366) | |||
Shares Redeemed to Cover Employee Tax Withholdings (in shares) | (83,164) | |||||
Preferred Stock Converted & Preferred Dividend Settlement | $ (50) | $ 4,962 | (10,004,912) | (10,000,000) | ||
Net Loss | (9,151,370) | (9,151,370) | ||||
Balance at Mar. 31, 2021 | $ 62,142 | 316,208,276 | (171,846,353) | 144,424,065 | ||
Balance (in shares) at Mar. 31, 2021 | 62,142,940 | |||||
Preferred Stock Converted & Preferred Dividend Settlement (in shares) | (49,626) | 4,962,600 | ||||
Balance at Dec. 31, 2021 | $ 63,672 | 346,736,397 | (203,072,143) | 143,727,926 | ||
Balance (in shares) at Dec. 31, 2021 | 63,672,268 | |||||
Stock-Based Compensation Expense | 3,955,738 | 3,955,738 | ||||
Stock Option Exercises | $ 33 | 29,191 | 29,224 | |||
Stock Option Exercises (in shares) | 32,358 | |||||
Purchases of Treasury Stock | $ (251,057) | $ (251,057) | ||||
Purchases of Treasury Stock (in Shares) | (36,685) | (36,685) | ||||
Net Loss | (10,506,001) | $ (10,506,001) | ||||
Balance at Mar. 31, 2022 | $ 63,705 | $ 350,721,326 | $ (213,578,144) | $ 251,057 | $ 136,955,830 | |
Balance (in shares) at Mar. 31, 2022 | 63,704,626 | 36,685 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Sales: | ||
Total Sales | $ 2,503,051 | $ 3,915,389 |
Cost of Sales: | ||
Total Cost of Sales | 1,863,697 | 2,835,798 |
Gross Profit (exclusive of depreciation shown separately below) | 639,354 | 1,079,591 |
Operating Expenses: | ||
Research and Development | 3,103,444 | 2,205,318 |
Selling and Marketing | 2,023,435 | 1,303,430 |
General and Administrative | 5,453,833 | 6,027,757 |
Depreciation and Amortization | 422,931 | 517,412 |
Loss on Fixed Asset Disposal | 83,908 | |
Impairment of Patents and Trademarks | 49,603 | 27,731 |
Total Operating Expenses | 11,053,246 | 10,165,556 |
Loss From Operations | (10,413,892) | (9,085,965) |
Other Income (Expense): | ||
Investment Income | 6,280 | 7,838 |
Income and Other Taxes | (47,632) | (19,725) |
Foreign Exchange Loss | (50,757) | (53,518) |
Total Other Expense, Net | (92,109) | (65,405) |
Loss Before Provision for Income Taxes | (10,506,001) | (9,151,370) |
Net Loss | $ (10,506,001) | $ (9,151,370) |
Basic Loss per Common Share | $ (0.16) | $ (0.17) |
Diluted Loss per Common Share | $ (0.16) | $ (0.17) |
Weighted-average Shares Outstanding - Basic | 63,695,127 | 54,141,761 |
Weighted-average Shares Outstanding - Diluted | 63,695,127 | 54,141,761 |
Sales of Products | ||
Sales: | ||
Total Sales | $ 2,503,051 | $ 3,805,170 |
Cost of Sales: | ||
Cost of Sales | $ 1,863,697 | 2,819,971 |
Sales of Engineering Services | ||
Sales: | ||
Total Sales | 110,219 | |
Cost of Sales: | ||
Cost of Sales | $ 15,827 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Loss | $ (10,506,001) | $ (9,151,370) |
Non-Cash Adjustments | ||
Depreciation and Amortization | 422,931 | 517,412 |
Amortization of Software Development Costs and Prepaid Licenses in Cost of Sales - Products | 60,099 | 60,099 |
Stock-Based Compensation | 4,319,748 | 4,618,213 |
Impairment of Patents and Trademarks | 49,603 | 27,731 |
Loss on Fixed Asset Disposal | 83,908 | |
(Increase) Decrease in Operating Assets | ||
Accounts Receivable | 690,775 | 91,973 |
Revenues in Excess of Billings | (40,856) | |
Inventories | (407,084) | (857,695) |
Manufacturing Vendor Prepayments | (82,513) | (1,785,763) |
Prepaid Expenses and Other Assets | 213,394 | 142,685 |
Increase (Decrease) in Operating Liabilities | ||
Accounts Payable | (831,021) | (191,028) |
Accrued Expenses | (292,286) | 646,048 |
Unearned Revenue | 1,825 | (17,698) |
Income and Other Taxes | (74,549) | (65,288) |
Net Cash Flows Used in Operating Activities | (6,435,079) | (5,921,629) |
Cash Flows from Investing Activities | ||
Purchases of Fixed Assets | (57,758) | (314,981) |
Investments in Patents and Trademarks | (34,469) | (135,674) |
Investments in Licenses, Intangible and Other Assets | (125,000) | (200,000) |
Net Cash Flows Used in Investing Activities | (217,227) | (650,655) |
Cash Flows from Financing Activities | ||
Proceeds from Exercise of Warrants | 34,568,538 | |
Proceeds from Exercise of Stock Options | 29,224 | 196,828 |
Proceeds from Common Stock Offering, Net | 79,603,872 | |
Preferred Dividend Settlement Payment | (10,000,000) | |
Employee Tax Withholdings Payment | (1,144,366) | |
Purchases of Treasury Stock | (251,057) | |
Net Cash Flows Provided from Financing Activities | (221,833) | 103,224,872 |
Net Increase in Cash and Cash Equivalents | (6,874,139) | 96,652,588 |
Cash and Cash Equivalents - Beginning of Period | 120,203,873 | 36,069,508 |
Cash and Cash Equivalents - End of Period | 113,329,734 | 132,722,096 |
Supplemental Disclosures | ||
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | 1,001,232 | 160,222 |
Stock-Based Compensation Expense - Expensed less Previously Issued | $ 364,010 | $ 58,828 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of December 31, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2022. Restatement As described in additional detail in Note 14 to the financial statements included in its 2021 Form 10-K, the Company restated its previous unaudited quarterly results in the Form 10-K for the year ended December 31, 2021. Previously filed 2021 quarterly reports on Form 10-Q for the periods affected by the restatement were not amended. See Note 14, Long-Term Incentive Plan Quarterly Financial Information (Unaudited) The effect of these changes on non-cash stock-based compensation expense included in 2021 unaudited quarterly operating results was as follows: Q1-2021 Additional Paid-in Capital Increase of $2,512,007 Research and Development Expense Increase of $125,391 Sales and Marketing Increase of $62,696 General and Administrative Increase of $2,323,920 Net Loss Increase of $2,512,007 Loss per Share Increase of $0.05 Customer Concentrations For the three months ended March 31, 2022, one customer represented 11% of total product revenue. For the three months ended March 31, 2021, one customer represented 11% of total product revenue and one customer represented 100% of engineering services revenue. As of March 31, 2022, three customers represented 22%, 14% and 13% of accounts receivable. As of December 31, 2021, three customers represented 27%, 20% and 10% of accounts receivable. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. The following table summarizes the revenue recognized by major product line: Three Months Ended March 31, 2022 2021 Revenues Smart Glasses Sales $ 2,503,051 $ 3,805,170 Engineering Services — 110,219 Total Revenue $ 2,503,051 $ 3,915,389 Significant Judgments Under Topic 606 “Revenue from Contracts with Customers”, we use judgments that could potentially impact both the timing of our satisfaction of performance obligations and our determination of transaction prices used in determining revenue recognized by major product line. Such judgments include considerations in determining our transaction prices and when our performance obligations are satisfied for our standard product sales that include an end-user 30-day right to return if not satisfied with product and general payment terms that are between Net 30 and 60 days. For our engineering services, performance obligations are recognized over time using the input method and the estimated costs to complete each project are considered significant judgments. Performance Obligations Revenues from our performance obligations are typically satisfied at a point in time for Smart Glasses, Waveguides and Display Engines, and our OEM Products, which are recognized when the customer obtains control and ownership, which is generally upon shipment. The Company also records revenue for performance obligations relating to our engineering services over time by using the input method measuring progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our engineering services is measured by the Company’s costs incurred as a percentage of total expected costs to project completion as the inputs of actual costs incurred by the Company are directly correlated with progress toward completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time for our engineering services correlate directly with the transfer of control of the underlying assets to our customers. Our standard product sales include a twelve eighteen twelve twelve The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three months ended March 31, 2022: % of Total Net Sales 2022 2021 Point-in-Time 100 % 97 % Over Time – Input Method - % 3 % Total 100 % 100 % Remaining Performance Obligations As of March 31, 2022, the Company had no outstanding performance obligations for its engineering services and waveguide development projects. In addition, the Company had no material outstanding performance obligations related to product sales, other than its standard product warranty. |
Loss Per Share
Loss Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Loss Per Share | |
Loss Per Share | Note 3 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options 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 months ended March 31, 2022 and 2021, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. At March 31, 2022 and 2021, there were 8,611,365 and 8,983,727 common stock share equivalents, respectively, potentially exercisable or issuable under conversion or exercise of stock options that could dilute basic earnings per share in the future. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Mar. 31, 2022 | |
Inventories, Net | |
Inventories, Net | Note 4 – Inventories, Net Inventories are stated at the lower of cost and net realizable value, and consisted of the following: March 31, December 31, 2022 2021 Purchased Parts and Components $ 11,461,309 $ 11,580,766 Work-in-Process 265,757 226,126 Finished Goods 1,959,141 1,472,534 Less: Reserve for Obsolescence (1,127,141) (1,127,444) Inventories, Net $ 12,559,066 $ 12,151,982 |
Licenses, Net
Licenses, Net | 3 Months Ended |
Mar. 31, 2022 | |
Licenses, Net | |
Licenses, Net | Note 5 – Licenses, Net March 31, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions — 1,404,750 Less: Accumulated Amortization (1,110,120) (1,053,420) Licenses, Net $ 1,333,236 $ 1,389,936 The Company acquired two licenses in 2017. The first related to the renegotiation of an existing license at a cost of $114,967, which resulted in lower royalty rates being paid by the Company over the next ten years . This license went into effect as of January 1, 2018. The second license was a result of the Company entering into a Technology Purchase and Royalty Agreement where it acquired all the seller’s right, title and interest in certain Transferred Intellectual Property (IP). Pursuant to the agreement, the Company paid approximately $75,702 as reimbursement of related patent application costs incurred by the seller to date, which are included in Patents and Trademarks. The Company also issued 25,000 shares of common stock, valued at $128,750, upon the original closing in October 2017 and agreed to certain further share issuances of 75,000 shares based upon the achievement of certain development milestones as well as per unit royalties once the technology was commercialized for the life of the related patents. In June 2021, the Company assumed or purchased outright the obligations for ongoing royalties under the original license agreement and certain other intellectual property rights in connection with consulting services by the original seller in exchange for the issuance of 75,000 shares with an assigned market value of $18.73 per share, or a total of $1,404,750. The underlying technology is not yet ready for commercialization, but the Company intends to proceed with further research and development work relating to such underlying technology. |
Intangible Asset, Net
Intangible Asset, Net | 3 Months Ended |
Mar. 31, 2022 | |
Intangible Asset, Net | |
Intangible Asset, Net | Note 6 – Intangible Asset, Net March 31, December 31, 2022 2021 Intangible Asset $ 1,500,000 $ 1,500,000 Less: Accumulated Amortization (1,457,179) (1,352,452) Intangible Asset, Net $ 42,821 $ 147,548 On October 4, 2018, the Company entered into amendment No. 1 to agreements (the “TDG Amendment”) with TDG Acquisition Company, LLC (“TDG”), aka Six15 Technologies, LLC. The TDG Amendment amends certain provisions of prior agreements between Vuzix and TDG, including an asset purchase agreement dated June 15, 2012, and an authorized reseller agreement dated June 15, 2012. Pursuant to the TDG Amendment, the Company is permitted to engage in sales of heads-up display components or subsystems (and any services to support such sale) for incorporation into a finished good or system for sale to military organizations, subject to certain conditions. The Company is also permitted to sell its products to defense and security organizations that include business customers and governmental entity customers that primarily provide security and defense services, including police, fire fighters, EMTs, other first responders, and homeland and border security. The Company will owe TDG commissions with respect to all such sales until June 15, 2022, when the amendment and original non-compete agreements expire, after which the Company will be permitted to sell any product to any customer world-wide without owing any commission to TDG. Total commissions expense under this agreement for the three months ended March 31, 2022 and 2021 was $25,794 and $52,655. All commissions expense related to this agreement is included in Selling and Marketing expense. Total amortization expense for this intangible asset for the three months ended March 31, 2022 and 2021 was $104,727 and $104,727, respectively. $42,821 of remaining amortization expense will be recognized in the second quarter of 2022, as the non-compete agreement with TDG expires on June 15, 2022. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2022 | |
Other Assets | |
Other Assets | Note 7 - Other Assets March 31, December 31, 2022 2021 Private Corporation Investments (at cost) $ 450,000 $ 450,000 Software Development Costs 750,000 500,000 Additions 125,000 250,000 Less: Accumulated Amortization (250,000) (208,334) Software Development Costs, Net 625,000 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 370,897 491,923 Total Other Assets $ 1,445,897 $ 1,483,589 During 2020, the Company invested $500,000 in Android operating systems upgrades for its CPU platform used on its M400 and M4000 products. This upgrade was finished and placed into service in the beginning of the fourth quarter of 2020. This capitalized asset is being amortized on a straight-line over its expected product life cycle of 36 months, which began on October 1, 2020. In October 2021, the Company invested $250,000 and in the first quarter of 2022 the Company invested an additional $125,000 for further Android operating systems version upgrades to the CPU platform it uses on its M400 and M4000 products. This development work has not yet been completed and will ultimately be amortized once placed into service which the Company expects to occur by early 2023. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses | |
Accrued Expenses | Note 8 – Accrued Expenses Accrued expenses consisted of the following: March 31, December 31, 2022 2021 Accrued Wages and Related Costs $ 484,980 $ 683,044 Accrued Professional Services 318,231 551,220 Accrued Warranty Obligations 156,192 185,044 Other Accrued Expenses 167,618 — Total $ 1,127,021 $ 1,419,308 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2022 and the balance as of December 31, 2021 were as follows: Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (103,943) Warranties Issued During Year 75,091 Accrued Warranty Obligations at March 31, 2022 $ 156,192 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 9 – Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets. |
Capital Stock
Capital Stock | 3 Months Ended |
Mar. 31, 2022 | |
Capital Stock | |
Capital Stock | Note 10 – Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of March 31, 2022 and December 31, 2021. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil shares of Series A Preferred Stock issued and outstanding on March 31, 2022 and December 31, 2021, respectively. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 63,704,626 shares issued and 63,667,941 shares outstanding as of March 31, 2022 and 63,672,268 shares issued Treasury Stock |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 11 – Stock-Based Compensation A summary of stock option activity related to the Company’s standard employee incentive plan, excluding options awarded under the Long-Term Incentive Plan (LTIP), for the three months ended March 31, 2022 is as follows: Weighted Number of Average Options Exercise Price Outstanding at December 31, 2021 2,823,634 $ 7.67 Granted 98,500 5.78 Exercised (43,040) 3.94 Expired or Forfeited (51,729) 8.60 Outstanding at March 31, 2022 2,827,365 $ 7.74 The weighted average remaining contractual term for all options as of March 31, 2022 and December 31, 2021 was 7.74 years and 7.95 years, respectively. As of March 31, 2022, there were 1,183,727 options that were fully-vested and exercisable at a weighted average exercise price of $6.04 per share. The weighted average remaining contractual term of the vested options is 6.6 years. As of March 31, 2022, there were 1,643,638 unvested options exercisable at a weighted average exercise price of $9.83 per share. The weighted average remaining contractual term of the unvested options is 8.6 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At March 31, 2022, the Company had $8,353,781 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 3.0 For the three months ended March 31, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $1,350,610 and $456,745, respectively. |
Long-term Incentive Plan
Long-term Incentive Plan | 3 Months Ended |
Mar. 31, 2022 | |
Long-term Incentive Plan | |
Long-term Incentive Plan | Note 12 – Long-Term Incentive Plan On March 17, 2021, the Company granted options to purchase a total of 5,784,000 shares of common stock to its officers and certain other members of its management team. The options were granted under the Company’s existing 2014 Incentive Stock Plan. The options have an exercise price of $19.00, with 375,000 options vesting immediately and the remaining portion vesting upon the achievement of certain equity market capitalization milestones, and revenue and EBITDA operational milestones. For the three months ended March 31, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $2,969,138 and $4,161,468, respectively, for options that vested or are probable to vest. The fair value of option grants was calculated using a Monte Carlo simulation on the equity market capitalization tranches and the Black-Scholes-Merton option pricing method on the operational milestone tranches. As of March 31, 2022, we had $25,371,320 of total unrecognized stock-based compensation expense for the portion of options tied to equity market capitalization milestones and the portion of options tied to operational milestones that were considered probable of achievement, all of which will be recognized over a service period of up to six years. The probabilities of the milestone achievements are subject to catch-adjustments in each instance where an equity market capitalization milestone is achieved or when an operational milestone becomes probable to be achieved or is achieved. Compensation costs could be reversed in subsequent periods if an awardee leaves the Company prior to the expiration of the option life for market capitalization milestone or the performance awards are no longer determined to be probable. If such milestones are achieved earlier in their expected service periods, the remaining unrecognized compensation expense related to that particular milestone would be accelerated and recognized in full during the period where that achievement is affirmed by the Board of Directors. As of March 31, 2022, and going forward, should all of the operational milestones which are currently not yet deemed probable of achievement become probable of achievement or are achieved, then the Company could ultimately recognize up to an additional $34.1 million in non-cash stock-based compensation expense at such time. The unvested remaining equity market capitalization and operational milestones under the LTIP with their total related option grants and criteria achievement weightings of the options available for meeting a target are shown in the following table. Of the total 5,409,000 unvested options outstanding as of March 31, 2022 and December 31, 2021, there are 2,704,500 options unvested for the achievement of equity market capitalization targets, 1,893,150 unvested options for the achievement of annual revenue targets, and 811,350 unvested options for the achievement of annual EBITDA margins before non-cash charges targets. Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2022 | |
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 material proceedings contemplated by or against us or involving our property. |
Right-of-Use Assets and Liabili
Right-of-Use Assets and Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Right-of-Use Assets and Liabilities | |
Right-of-Use Assets and Liabilities | Note 14 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of March 31, 2022 were as follows: 2022 $ 417,750 2023 546,916 2024 45,576 Total Future Lease Payments 1,010,242 Less: Imputed Interest (41,973) Total Lease Liability Balance $ 968,269 Operating lease costs under the operating leases totaled $162,365 and $124,215 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the weighted average discount rate was 4.5% and the weighted average remaining lease term was 1.8 years. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
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 months ended March 31, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of December 31, 2021, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 2, 2022. |
Restatement | Restatement As described in additional detail in Note 14 to the financial statements included in its 2021 Form 10-K, the Company restated its previous unaudited quarterly results in the Form 10-K for the year ended December 31, 2021. Previously filed 2021 quarterly reports on Form 10-Q for the periods affected by the restatement were not amended. See Note 14, Long-Term Incentive Plan Quarterly Financial Information (Unaudited) The effect of these changes on non-cash stock-based compensation expense included in 2021 unaudited quarterly operating results was as follows: Q1-2021 Additional Paid-in Capital Increase of $2,512,007 Research and Development Expense Increase of $125,391 Sales and Marketing Increase of $62,696 General and Administrative Increase of $2,323,920 Net Loss Increase of $2,512,007 Loss per Share Increase of $0.05 |
Customer Concentrations | Customer Concentrations For the three months ended March 31, 2022, one customer represented 11% of total product revenue. For the three months ended March 31, 2021, one customer represented 11% of total product revenue and one customer represented 100% of engineering services revenue. As of March 31, 2022, three customers represented 22%, 14% and 13% of accounts receivable. As of December 31, 2021, three customers represented 27%, 20% and 10% of accounts receivable. |
Treasury Stock | Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent reissuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to accounts receivable. ASU 2016-13 will become effective for the Company on January 1, 2023 and early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on our consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Basis of Presentation | |
Schedule of effect of changes on actual stock-based compensation expense | Q1-2021 Additional Paid-in Capital Increase of $2,512,007 Research and Development Expense Increase of $125,391 Sales and Marketing Increase of $62,696 General and Administrative Increase of $2,323,920 Net Loss Increase of $2,512,007 Loss per Share Increase of $0.05 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | Three Months Ended March 31, 2022 2021 Revenues Smart Glasses Sales $ 2,503,051 $ 3,805,170 Engineering Services — 110,219 Total Revenue $ 2,503,051 $ 3,915,389 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three months ended March 31, 2022: % of Total Net Sales 2022 2021 Point-in-Time 100 % 97 % Over Time – Input Method - % 3 % Total 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventories, Net | |
Schedule of Inventories | March 31, December 31, 2022 2021 Purchased Parts and Components $ 11,461,309 $ 11,580,766 Work-in-Process 265,757 226,126 Finished Goods 1,959,141 1,472,534 Less: Reserve for Obsolescence (1,127,141) (1,127,444) Inventories, Net $ 12,559,066 $ 12,151,982 |
Licenses, Net (Tables)
Licenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Schedule of Finite-Lived Intangible Assets | March 31, December 31, 2022 2021 Intangible Asset $ 1,500,000 $ 1,500,000 Less: Accumulated Amortization (1,457,179) (1,352,452) Intangible Asset, Net $ 42,821 $ 147,548 |
Licenses [Member] | |
Schedule of Finite-Lived Intangible Assets | March 31, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions — 1,404,750 Less: Accumulated Amortization (1,110,120) (1,053,420) Licenses, Net $ 1,333,236 $ 1,389,936 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Intangible Asset, Net | |
Schedule of Finite-Lived Intangible Assets | March 31, December 31, 2022 2021 Intangible Asset $ 1,500,000 $ 1,500,000 Less: Accumulated Amortization (1,457,179) (1,352,452) Intangible Asset, Net $ 42,821 $ 147,548 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Assets | |
Schedule of other assets | March 31, December 31, 2022 2021 Private Corporation Investments (at cost) $ 450,000 $ 450,000 Software Development Costs 750,000 500,000 Additions 125,000 250,000 Less: Accumulated Amortization (250,000) (208,334) Software Development Costs, Net 625,000 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 370,897 491,923 Total Other Assets $ 1,445,897 $ 1,483,589 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: March 31, December 31, 2022 2021 Accrued Wages and Related Costs $ 484,980 $ 683,044 Accrued Professional Services 318,231 551,220 Accrued Warranty Obligations 156,192 185,044 Other Accrued Expenses 167,618 — Total $ 1,127,021 $ 1,419,308 |
Schedule of changes in accrued warranty obligations | The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2022 and the balance as of December 31, 2021 were as follows: Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (103,943) Warranties Issued During Year 75,091 Accrued Warranty Obligations at March 31, 2022 $ 156,192 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stock-Based Compensation | |
Schedule of Summary of Stock Option Activity | A summary of stock option activity related to the Company’s standard employee incentive plan, excluding options awarded under the Long-Term Incentive Plan (LTIP), for the three months ended March 31, 2022 is as follows: Weighted Number of Average Options Exercise Price Outstanding at December 31, 2021 2,823,634 $ 7.67 Granted 98,500 5.78 Exercised (43,040) 3.94 Expired or Forfeited (51,729) 8.60 Outstanding at March 31, 2022 2,827,365 $ 7.74 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Long-term Incentive Plan | |
Schedule of effect of changes on actual stock-based compensation expense | Q1-2021 Additional Paid-in Capital Increase of $2,512,007 Research and Development Expense Increase of $125,391 Sales and Marketing Increase of $62,696 General and Administrative Increase of $2,323,920 Net Loss Increase of $2,512,007 Loss per Share Increase of $0.05 |
Schedule of equity market and operational milestone under the long term | Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 |
Right-of-Use Assets and Liabi_2
Right-of-Use Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | Future lease payments under operating leases as of March 31, 2022 were as follows: 2022 $ 417,750 2023 546,916 2024 45,576 Total Future Lease Payments 1,010,242 Less: Imputed Interest (41,973) Total Lease Liability Balance $ 968,269 |
Basis of Presentation (Details)
Basis of Presentation (Details) - customer | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Total revenues [Member] | |||
Number of customers | 1 | 1 | |
Accounts Receivable [Member] | |||
Number of customers | 3 | 3 | |
One customer | Sales of Engineering Services | |||
Number of customers | 1 | ||
One customer | Total revenues [Member] | Customer Concentration Risk | |||
Concentration Risk, Percentage | 11.00% | 11.00% | |
One customer | Total revenues [Member] | Sales of Engineering Services | Customer Concentration Risk | |||
Concentration Risk, Percentage | 100.00% | ||
One customer | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk, Percentage | 22.00% | 27.00% | |
Two customers | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk, Percentage | 14.00% | 20.00% | |
Three customers | Accounts Receivable [Member] | Customer Concentration Risk | |||
Concentration Risk, Percentage | 13.00% | 10.00% |
Basis of Presentation - Restate
Basis of Presentation - Restatement (Details) - Equity Market Capitalization Targets [Member] - Long-term Incentive Plan 2021 | 3 Months Ended |
Mar. 31, 2021USD ($)$ / shares | |
Additional Paid-in Capital | $ 2,512,007 |
Research and Development Expense | 125,391 |
Sales and Marketing | 62,696 |
General and Administrative | 2,323,920 |
Net Loss | $ 2,512,007 |
Loss per Share | $ / shares | $ 0.05 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)product | Mar. 31, 2021USD ($) | |
Revenue | $ 2,503,051 | $ 3,915,389 |
Number of major product lines | product | 2 | |
Smart Glasses Sales | ||
Revenue | $ 2,503,051 | 3,805,170 |
Engineering Services | ||
Revenue | $ 110,219 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue Performance Obligation Percentage | 100.00% | 100.00% |
Point-in-Time - Output Method [Member] | ||
Revenue Performance Obligation Percentage | 100.00% | 97.00% |
Over Time - Input Method [Member] | ||
Revenue Performance Obligation Percentage | 3.00% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Standard Product Warranty Term | 12 months |
Revenue, Remaining Performance Obligation | $ 0 |
Extended warranties | |
Standard Product Warranty Term | 12 months |
OEM products and waveguide sales | |
Standard Product Warranty Term | 18 months |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Loss Per Share | ||
Earnings Per Share, Potentially Dilutive Securities | 8,611,365 | 8,983,727 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories, Net | ||
Purchased Parts and Components | $ 11,461,309 | $ 11,580,766 |
Work in Process | 265,757 | 226,126 |
Finished Goods | 1,959,141 | 1,472,534 |
Less: Reserve for Obsolescence | (1,127,141) | (1,127,444) |
Inventories, Net | $ 12,559,066 | $ 12,151,982 |
Licenses, Net (Details)
Licenses, Net (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Licenses Net [Line Items] | ||
Licenses, Net | $ 1,333,236 | $ 1,389,936 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 2,443,356 | 1,038,606 |
Additions | 1,404,750 | |
Less: Accumulated Amortization / Expensed | (1,110,120) | (1,053,420) |
Licenses, Net | $ 1,333,236 | $ 1,389,936 |
Licenses, Net - Additional Info
Licenses, Net - Additional Information (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)$ / sharesshares | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2017USD ($)itemshares | Dec. 31, 2021USD ($) | |
Licenses Net [Line Items] | |||||
Purchase price | $ 34,469 | $ 135,674 | |||
Shares issued value | 85,000,011 | ||||
Research and Development | $ 3,103,444 | $ 2,205,318 | |||
Licensing agreements | |||||
Licenses Net [Line Items] | |||||
Number of license acquired | item | 2 | ||||
Value of shares development milestones | $ 1,404,750 | ||||
First license agreements | |||||
Licenses Net [Line Items] | |||||
Licenses, Net | $ 114,967 | ||||
Amortization period (in years) | 10 years | ||||
Second license agreements | |||||
Licenses Net [Line Items] | |||||
Patent application costs | $ 75,702 | ||||
Company awarded shares | shares | 25,000 | ||||
Shares issued value | $ 128,750 | ||||
Issuance of shares development milestones | shares | 75,000 | 75,000 | |||
Market value per share | $ / shares | $ 18.73 | ||||
Value of shares development milestones | $ 1,404,750 |
Intangible Asset, Net - Schedul
Intangible Asset, Net - Schedule of Finite-Lived Intangible Assets (Details) - Intangible Assets - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Intangible Asset | $ 1,500,000 | $ 1,500,000 |
Less: Accumulated Amortization | (1,457,179) | (1,352,452) |
Intangible Asset, Net | $ 42,821 | $ 147,548 |
Intangible Asset, Net - Additio
Intangible Asset, Net - Additional Information (Details) - TDG Acquisition Company LLC [Member] - USD ($) | 3 Months Ended | ||
Jun. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Amortization of intangible assets | $ 42,821 | $ 104,727 | $ 104,727 |
Selling and Marketing Expense. | |||
Total commission expense | $ 25,794 | $ 52,655 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Dec. 31, 2020 | |
Private Corporation Investment | $ 450,000 | $ 450,000 | ||
Additions | 5,042,421 | 5,190,438 | ||
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | 370,897 | 491,923 | ||
Total Other Assets | 1,445,897 | 1,483,589 | ||
Software Development | ||||
Software development costs | 750,000 | 500,000 | ||
Additions | 125,000 | 250,000 | $ 250,000 | $ 500,000 |
Less: Accumulated Amortization | (250,000) | (208,334) | ||
Software Development Costs, Net | $ 625,000 | $ 541,666 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | |
Other assets [Line Items] | ||||
Additions | $ 5,042,421 | $ 5,190,438 | ||
Software Development | ||||
Other assets [Line Items] | ||||
Additions | $ 500,000 | $ 125,000 | $ 250,000 | $ 250,000 |
Useful life | 36 months |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 484,980 | $ 683,044 |
Accrued Professional Services | 318,231 | 551,220 |
Accrued Warranty Obligations | 156,192 | 185,044 |
Other Accrued Expenses | 167,618 | |
Total | $ 1,127,021 | $ 1,419,308 |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Accrued Expenses | |
Accrued Warranty Obligations, beginning of period | $ 185,044 |
Reductions for Settling Warranties | (103,943) |
Warranties Issued During Period | 75,091 |
Accrued Warranty Obligations, end of period | $ 156,192 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Accrued Expenses | |
Standard Product Warranty Term | 12 months |
Capital Stock - Additional Info
Capital Stock - Additional Information (Details) - USD ($) | Mar. 02, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 | ||
Shares issued value | $ 85,000,011 | |||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||
Common Stock, Shares, Issued | 63,704,626 | 63,672,268 | ||
Common Stock, Shares, Outstanding | 63,667,941 | 63,672,268 | ||
Aggregate value of shares authorized | $ 25 | |||
Share repurchase program term | 1 year | |||
Shares repurchased | 36,685 | |||
Average cost | $ 6.84 | |||
Common shares held in treasury | 36,685 | |||
Common Stock | ||||
Company awarded shares | 4,146,342 | |||
Shares issued value | $ 4,146 | |||
Preferred Stock Converted & Preferred Dividend Settlement (in shares) | 4,962,600 | |||
Series A Preferred Stock [Member] | ||||
Preferred Stock, Shares Authorized | 49,626 | 49,626 | ||
Preferred Stock, Shares Issued | 0 | 0 | ||
Preferred Stock, Shares Outstanding | 0 | 0 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock options | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of Options | |
Outstanding, Beginning Balance | shares | 2,823,634 |
Granted | shares | 98,500 |
Exercised | shares | (43,040) |
Expired or Forfeited | shares | (51,729) |
Outstanding, Ending Balance | shares | 2,827,365 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ / shares | $ 7.67 |
Granted | $ / shares | 5.78 |
Exercised | $ / shares | 3.94 |
Expired or Forfeited | $ / shares | 8.60 |
Outstanding, Ending Balance | $ / shares | $ 7.74 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Stock-Based Compensation Plans | |||
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 8 months 26 days | 7 years 11 months 12 days | |
Exercisable Options Outstanding Shares | 1,183,727 | ||
Weighted average exercise price per share, Exercisable | $ 6.04 | ||
Weighted average remaining contractual term on vested options | 6 years 7 months 6 days | ||
Unvested Options Outstanding, Shares | 1,643,638 | ||
Unvested Options Outstanding, Weighted average exercise price | $ 9.83 | ||
Unvested Options Outstanding Weighted average remaining life (years) | 8 years 7 months 6 days | ||
Unrecognized stock compensation expense | $ 8,353,781 | ||
Weighted average recognition period | 3 years | ||
Share-Based compensation excludes the long term incentive plan expense | $ 1,350,610 | $ 456,745 |
Long-term Incentive Plan (Detai
Long-term Incentive Plan (Details) - USD ($) | Mar. 17, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Long-term Incentive Plan | |||
Exercise price | $ 6.04 | ||
Share-based Compensation | $ 4,319,748 | $ 4,618,213 | |
Unrecognized stock-based compensation expense | $ 8,353,781 | ||
Recognition period | 3 years | ||
Options available in equity market and operational milestone | 5,409,000 | ||
Equity Market Capitalization Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 2,704,500 | ||
Annual Revenue Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 1,893,150 | ||
Annual EBITDA Margins Before Non-Cash Charges Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 811,350 | ||
Stock options | Long-term Incentive Plan 2021 | |||
Long-term Incentive Plan | |||
Granted | 5,784,000 | ||
Exercise price | $ 19 | ||
Share-based Compensation | $ 2,969,138 | $ 4,161,468 | |
Stock options | Vest immediately | Long-term Incentive Plan 2021 | |||
Long-term Incentive Plan | |||
Options vested | $ 375,000 | ||
Stock options tied to equity market capitalization milestone | |||
Long-term Incentive Plan | |||
Unrecognized stock-based compensation expense | 25,371,320 | ||
Amount of threshold additional stock based compensation expense | $ 34,100,000 | ||
Stock options tied to equity market capitalization milestone | Maximum | |||
Long-term Incentive Plan | |||
Recognition period | 6 years |
Long-term Incentive Plan - LTIP
Long-term Incentive Plan - LTIP (Details) | 3 Months Ended |
Mar. 31, 2022USD ($)shares | |
Long-term Incentive Plan | |
Percentage of weightage for equity market capitalization target | 50.00% |
Percentage of weightage for last twelve months revenue target | 35.00% |
Percentage of weightage for last twelve months EBITDA margin before non-cash charges | 15.00% |
Options available in equity market and operational milestone | shares | 5,409,000 |
Stock option tied to equity market and operational milestones | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 5,409,000 |
Equity market and operational milestone one | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 2,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 25,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 0.00% |
Equity market and operational milestone two | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 3,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 50,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 2.00% |
Equity market and operational milestone three | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 4,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 100,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 4.00% |
Equity market and operational milestone four | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 686,000 |
Amount of equity market capitalization target | $ 5,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 200,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 6.00% |
Equity market and operational milestone five | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 586,000 |
Amount of equity market capitalization target | $ 6,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 300,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 8.00% |
Equity market and operational milestone six | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 586,000 |
Amount of equity market capitalization target | $ 7,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 450,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 10.00% |
Equity market and operational milestone seven | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 561,000 |
Amount of equity market capitalization target | $ 8,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 675,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 12.00% |
Equity market and operational milestone eight | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 491,000 |
Amount of equity market capitalization target | $ 9,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 1,000,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 14.00% |
Equity market and operational milestone nine | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 441,000 |
Amount of equity market capitalization target | $ 10,000,000,000 |
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP | $ 1,500,000,000 |
Percentage of last twelve months EBITDA margin before non-cash charges target | 16.00% |
Right-of-Use Assets and Liabi_3
Right-of-Use Assets and Liabilities - Operating Leases (Details) | Mar. 31, 2022USD ($) |
Right-of-Use Assets and Liabilities | |
2022 | $ 417,750 |
2023 | 546,916 |
2024 | 45,576 |
Total Future Lease Payments | 1,010,242 |
Less: Imputed Interest | (41,973) |
Total Lease Liability Balance | $ 968,269 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Right-of-Use Assets and Liabilities | ||
Operating lease costs | $ 162,365 | $ 124,215 |
Weighted average discount rate | 4.50% | |
Weighted average remaining term | 1 year 9 months 18 days |