Vuzix (VUZI) 10-Q 9 Aug 22 2022 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Aug. 09, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2022
Entity File Number	001-35955
Entity Registrant Name	Vuzix Corp
Entity Incorporation, State or Country Code	DE
Entity Central Index Key	0001463972
Entity Tax Identification Number	04-3392453
Entity Address, Address Line One	25 Hendrix Road, Suite A
Entity Address, City or Town	West Henrietta
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14586
City Area Code	585
Local Phone Number	359-5900
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	VUZI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,990,955
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Current Assets
Cash and Cash Equivalents	$ 100,581,795	$ 120,203,873
Accounts Receivable	1,563,906	2,242,429
Accrued Revenues in Excess of Billings	108,866
Inventories, Net	11,792,089	12,151,982
Manufacturing Vendor Prepayments	1,158,620	504,051
Prepaid Expenses and Other Assets	1,735,955	2,047,819
Total Current Assets	116,941,231	137,150,154
Long-Term Assets
Fixed Assets, Net	8,051,264	5,190,438
Operating Lease Right-of-Use Asset	837,920	1,117,022
Patents and Trademarks, Net	2,136,585	1,988,370
Licenses, Net	16,089,035	1,389,936
Intangible Asset, Net		147,548
Other Assets, Net	1,839,047	1,483,589
Total Assets	145,895,082	148,467,057
Current Liabilities
Accounts Payable	1,321,949	2,054,762
Unearned Revenue	40,626	27,797
Accrued Expenses	1,614,583	1,419,308
Licensing Fees Commitment	4,250,000
Income and Other Taxes Payable	43,856	120,242
Operating Lease Right-of-Use Liability	520,009	534,146
Total Current Liabilities	7,791,023	4,156,255
Long-Term Liabilities
Operating Lease Right-of-Use Liability	317,911	582,876
Licensing Fees Commitment	6,250,000
Total Long-Term Liabilities	6,567,911	582,876
Total Liabilities	14,358,934	4,739,131
Stockholders' Equity
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 64,025,640 shares issued and 63,988,955 shares outstanding as of June 30, 2022 and 63,672,268 shares issued and outstanding as of December 31, 2021.	64,026	63,672
Additional Paid-in Capital	355,322,990	346,736,397
Accumulated Deficit	(223,599,811)	(203,072,143)
Treasury Stock, at cost, 36,685 shares as of June 30, 2022 and 0 shares as of December 31, 2021	(251,057)
Total Stockholders' Equity	131,536,148	143,727,926
Total Liabilities and Stockholders' Equity	$ 145,895,082	$ 148,467,057

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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	64,025,640	63,672,268
Common Stock, Shares Outstanding	63,988,955	63,672,268
Common shares held in treasury	36,685	0

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock, 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		$ 68	8,544,078			8,544,146
Stock-Based Compensation Expense (in shares)		68,047
Stock Option Exercises		$ 568	673,191			673,759
Stock Option Exercises (in shares)		567,826
Stock Warrant Exercises		$ 7,274	34,697,794			34,705,068
Stock Warrant Exercises (in shares)		7,274,328
Proceeds from Common Stock Offerings		$ 4,768	97,784,270			97,789,038
Proceeds from Common Stock Offerings (in shares)		4,768,293
Direct Costs of Common Stock Offerings			(6,136,420)			(6,136,420)
Shares Redeemed to Cover Employee Tax Withholdings		$ (83)	(1,144,282)			(1,144,365)
Shares Redeemed to Cover Employee Tax Withholdings (in shares)		(83,164)
Stock Issued for Technology License Purchase		$ 75	1,404,675			1,404,750
Stock Issued for Technology License Purchase (in shares)		75,000
Preferred Stock Converted & Preferred Dividend Settlement	$ (50)	$ 4,963	(10,004,913)			(10,000,000)
Net Loss				(18,396,842)		(18,396,842)
Balance at Jun. 30, 2021		$ 63,278	336,770,866	(181,091,825)		155,742,319
Balance (in shares) at Jun. 30, 2021		63,278,096
Balance at Mar. 31, 2021		$ 62,143	318,720,283	(171,846,353)		146,936,073
Balance (in shares) at Mar. 31, 2021		62,142,940
Stock-Based Compensation Expense		$ 68	3,984,694			3,984,762
Stock-Based Compensation Expense (in shares)		68,047
Stock Option Exercises		$ 337	476,593			476,930
Stock Option Exercises (in shares)		336,858
Stock Warrant Exercises		$ 33	136,497			136,530
Stock Warrant Exercises (in shares)		33,300
Proceeds from Common Stock Offerings		$ 622	12,748,752			12,749,374
Proceeds from Common Stock Offerings (in shares)		621,951
Direct Costs of Common Stock Offerings			(700,628)			(700,628)
Stock Issued for Technology License Purchase		$ 75	1,404,675			1,404,750
Stock Issued for Technology License Purchase (in shares)		75,000
Net Loss				(9,245,472)		(9,245,472)
Balance at Jun. 30, 2021		$ 63,278	336,770,866	(181,091,825)		155,742,319
Balance (in shares) at Jun. 30, 2021		63,278,096
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		$ 289	8,538,153			8,538,441
Stock-Based Compensation Expense (in shares)		288,650
Stock Option Exercises		$ 65	48,440			48,506
Stock Option Exercises (in shares)		64,722
Purchases of Treasury Stock					$ (251,057)	$ (251,057)
Purchases of Treasury Stock (in Shares)					(36,685)	(36,685)
Net Loss				(20,527,668)		$ (20,527,668)
Balance at Jun. 30, 2022		$ 64,026	355,322,990	(223,599,811)	$ (251,057)	131,536,148
Balance (in shares) at Jun. 30, 2022		64,025,640			36,685
Balance at Mar. 31, 2022		$ 63,705	350,721,326	(213,578,143)	$ (251,057)	136,955,831
Balance (in shares) at Mar. 31, 2022		63,704,626			(36,685)
Stock-Based Compensation Expense		$ 289	4,582,414			4,582,703
Stock-Based Compensation Expense (in shares)		288,650
Stock Option Exercises		$ 32	19,250			19,282
Stock Option Exercises (in shares)		32,364
Net Loss				(10,021,668)		(10,021,668)
Balance at Jun. 30, 2022		$ 64,026	$ 355,322,990	$ (223,599,811)	$ (251,057)	$ 131,536,148
Balance (in shares) at Jun. 30, 2022		64,025,640			36,685

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Sales:
Total Sales	$ 3,007,758	$ 2,916,538	$ 5,510,810	$ 6,831,927
Cost of Sales:
Total Cost of Sales	2,581,970	2,337,166	4,445,667	5,172,964
Gross Profit (exclusive of depreciation shown separately below)	425,788	579,372	1,065,143	1,658,963
Operating Expenses:
Research and Development	2,996,144	2,723,994	6,099,588	4,929,312
Selling and Marketing	1,850,595	1,349,189	3,914,584	2,652,619
General and Administrative	5,039,949	5,181,042	10,453,228	11,208,799
Depreciation and Amortization	540,081	501,678	963,012	1,019,090
Loss on Fixed Asset Disposal				83,908
Impairment of Patents and Trademarks		30,765	49,602	58,496
Total Operating Expenses	10,426,769	9,786,668	21,480,014	19,952,224
Loss From Operations	(10,000,981)	(9,207,296)	(20,414,871)	(18,293,261)
Other Income (Expense):
Investment Income	111,027	7,767	117,307	15,605
Income and Other Taxes	(31,326)	(12,783)	(78,959)	(32,508)
Foreign Exchange Loss	(100,388)	(33,160)	(151,145)	(86,678)
Total Other Expense, Net	(20,687)	(38,176)	(112,797)	(103,581)
Loss Before Provision for Income Taxes	(10,021,668)	(9,245,472)	(20,527,668)	(18,396,842)
Net Loss	$ (10,021,668)	$ (9,245,472)	$ (20,527,668)	$ (18,396,842)
Basic and Diluted Loss per Common Share	$ 0.16	$ 0.15	$ 0.32	$ 0.31
Basic Loss per Common Share	(0.16)	(0.15)	(0.32)	(0.31)
Diluted Loss per Common Share	$ (0.16)	$ (0.15)	$ (0.32)	$ (0.32)
Weighted-average Shares Outstanding - Basic	63,739,863	63,071,061	63,717,618	58,631,078
Weighted-average Shares Outstanding - Diluted	63,739,863	63,071,061	63,717,628	58,631,078
Sales of Products
Sales:
Total Sales	$ 2,898,892	$ 2,833,644	$ 5,401,944	$ 6,638,814
Cost of Sales:
Cost of Sales	2,522,674	2,323,324	4,386,371	5,143,295
Sales of Engineering Services
Sales:
Total Sales	108,866	82,894	108,866	193,113
Cost of Sales:
Cost of Sales	$ 59,296	$ 13,842	$ 59,296	$ 29,669

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash Flows from Operating Activities
Net Loss	$ (20,527,668)	$ (18,396,842)
Non-Cash Adjustments
Depreciation and Amortization	963,012	1,019,090
Amortization of Software Development Costs and Prepaid Licenses in Cost of Sales - Products	130,883	120,197
Stock-Based Compensation	8,200,774	8,661,613
Impairment of Patents and Trademarks	49,602	58,496
Loss on Fixed Asset Disposal		83,908
(Increase) Decrease in Operating Assets
Accounts Receivable	678,523	289,567
Accrued Revenues in Excess of Billings	(108,866)
Increase Decrease Accrued Revenue In Excess Of Billings	108,866
Inventories	359,893	(1,783,539)
Manufacturing Vendor Prepayments	(654,569)	(2,565,073)
Prepaid Expenses and Other Assets	492,599	(522,084)
Increase (Decrease) in Operating Liabilities
Accounts Payable	(732,813)	(92,188)
Accrued Expenses	195,276	75,055
Unearned Revenue	12,829	(27,453)
Income and Other Taxes	(76,384)	(29,450)
Net Cash Flows Used in Operating Activities	(11,016,909)	(13,108,703)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(3,504,931)	(719,164)
Investments in Patents and Trademarks	(272,686)	(214,450)
Investments in Licenses, Intangible and Other Assets	(4,625,000)	(305,158)
Net Cash Flows Used in Investing Activities	(8,402,617)	(1,238,772)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants		34,705,068
Proceeds from Exercise of Stock Options	48,505	673,759
Proceeds from Common Stock Offering, Net		91,647,850
Purchases of Treasury Stock	(251,057)
Preferred Dividend Settlement Payment		(10,000,000)
Employee Tax Withholdings Payment		(1,144,365)
Net Cash Flows (Used in) Provided from Financing Activities	(202,552)	115,882,312
Net Cash Flows (Used in) Provided from Financing Activities	(19,622,078)	101,534,837
Cash and Cash Equivalents - Beginning of Period	120,203,873	36,069,508
Cash and Cash Equivalents - End of Period	100,581,795	137,604,345
Supplemental Disclosures
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets	1,223,691	101,517
Non-Cash Investment in Licenses	10,500,000	1,404,750
Stock-Based Compensation Expense - Expensed less Previously Issued	$ (337,379)	$ 117,467

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2022
Basis of Presentation
Basis of Presentation	Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications may have been made to prior periods to conform with current reporting. The results of the Company’s operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2021, as reported in the Company’s Annual Report on Form 10-K 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: ​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Additional Paid-in Capital ​ Increase of $466,015 Increase of $2,978,022 Research and Development Expense ​ Increase of $23,262 Increase of $148,653 Sales and Marketing ​ Increase of $11,631 Increase of $74,327 General and Administrative ​ Increase of $431,122 Increase of $2,755,042 Net Loss ​ Increase of $466,015 Increase of $2,978,022 Loss per Share ​ Increase of $0.01 Increase of $0.06 ​ Customer Concentrations For the three months ended June 30, 2022, one customer represented 45% of total product revenue and one customer represented 100% of engineering services revenue. For the three months ended June 30, 2021, no one customer represented more than 10% of total product revenue and one customer represented 100% of engineering services revenue. For the six months ended June 30, 2022, one customer represented 24% of total product revenue and one customer represented 100% of engineering services revenue. For the six months ended June 30, 2021, no one customer represented more than 10% of total product revenue and two customers represented 100% of engineering services revenue. As of June 30, 2022, three customers represented 42%, 15% and 15% 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	6 Months Ended
	Jun. 30, 2022
Revenue Recognition and Contracts with Customers
Revenue Recognition and Contracts with Customers	Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. The following table summarizes the revenue recognized by major product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Six Months Ended ​ ​ June 30, ​ June 30, ​ 2022 2021 2022 2021 Revenues ​ ​ ​ ​ Smart Glasses Sales ​ $ 2,898,892 ​ $ 2,833,644 ​ $ 5,401,944 ​ $ 6,638,814 Engineering Services ​ 108,866 ​ 82,894 ​ 108,866 ​ 193,113 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue ​ $ 3,007,758 ​ $ 2,916,538 ​ $ 5,510,810 ​ $ 6,831,927 ​ Significant Judgments Under Topic 606 “Revenue from Contracts with Customers”, we use judgments that could potentially impact both the timing of our satisfaction of performance obligations and our determination of transaction prices used in determining revenue recognized by major product line. Such judgments include considerations in determining our transaction prices and when our performance obligations are satisfied for our standard product sales that include an end-user 30-day right to return if not satisfied with product and general payment terms that are between Net 30 and 60 days. For our engineering services, performance obligations are recognized over time using the input method and the estimated costs to complete each project are considered significant judgments. Performance Obligations Revenues from our performance obligations are typically satisfied at a point in time for Smart Glasses, Waveguides and Display Engines, and our OEM Products, which are recognized when the customer obtains control and ownership, which is generally upon shipment. The Company also records revenue for performance obligations relating to our engineering services over time by using the input method to measure the progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our engineering services is measured by the Company’s costs incurred as a percentage of total expected costs to project completion as the inputs of actual costs incurred by the Company are directly correlated with progress toward completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time 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 six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ % of Total Net Sales ​ ​ 2022 2021 Point-in-Time 98 % 97 % Over Time – Input Method 2 % 3 % ​ ​ ​ ​ ​ ​ Total 100 % 100 % ​ Remaining Performance Obligations As of June 30, 2022, the Company had $691,134 of remaining performance obligations under a current waveguide development project, which represents the remainder of the total transaction price of an $800,000 development agreement, less revenue recognized under percentage of completion to date. The Company currently expects to recognize the remaining revenue relating to this existing performance obligation of $691,134 before the end of 2022 The Company had no material outstanding performance obligations related to product sales, other than its standard product warranty.

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2022
Loss Per Share
Loss Per Share	Note 3 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options 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, 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 June 30, 2022 and 2021, there were 8,528,668 and 8,584,030 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	6 Months Ended
	Jun. 30, 2022
Inventories, Net
Inventories, Net	Note 4 – Inventories, Net Inventories are stated at the lower of cost and net realizable value, and consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 10,414,139 ​ $ 11,580,766 Work-in-Process ​ 285,481 ​ 226,126 Finished Goods ​ 2,095,643 ​ 1,472,534 Less: Reserve for Obsolescence ​ (1,003,174) ​ (1,127,444) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 11,792,089 ​ $ 12,151,982 ​

Fixed Assets

Fixed Assets	6 Months Ended
	Jun. 30, 2022
Fixed Assets
Fixed Assets	Note 5 – Fixed Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 Tooling and Manufacturing Equipment ​ $ 9,930,222 ​ $ 6,612,811 Leaseholds ​ 826,329 ​ 797,059 Computers and Purchased Software ​ 1,035,358 ​ 980,561 Furniture and Equipment ​ 2,673,787 ​ 2,661,346 ​ ​ 14,465,696 ​ 11,051,777 Less: Accumulated Depreciation ​ (6,414,432) ​ (5,861,339) Fixed Assets, Net ​ $ 8,051,264 ​ $ 5,190,438 ​ On April 27, 2022, the Company signed a purchase order for new manufacturing equipment upgrades to further our waveguide production capabilities. The purchase order totaled ​ On May 12, 2022, the Company signed a series of agreements with Atomistic SAS, which provided for an exclusive license by the Company of key m which consists of a specific design and delivery of a mask set and other elements required for production of a silicon chip with (a) pixel driving circuitry, (b) one or more driver circuits for providing voltages and currents to m LEDs or mLasers; and (c) a controller circuit for relaying image data to the driver circuits to which the main circuit boards of a computer may be connected, and which provides connections between them; all of which is custom to the Company. ​ During the three months ended June 30, 2022, the Company made an additional progress payment of $1,890,000 towards this custom chip tooling asset, in addition to the $2,139,120 down payment that was made in 2021. These payments, totaling $4,029,120 are included in construction in progress in Tooling and Manufacturing Equipment until the asset is placed into service in the next 18 to 24 months . The remaining $10,970,880 commitment towards this custom backplane is expected to be paid over the same period as referenced above.

Technology Licenses, Net

Technology Licenses, Net	6 Months Ended
	Jun. 30, 2022
Technology Licenses, Net
Technology Licenses, Net	Note 6 – Technology Licenses, Net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 2,443,356 ​ $ 1,038,606 Additions ​ 15,000,000 ​ 1,404,750 Less: Accumulated Amortization ​ (1,354,321) ​ (1,053,420) Licenses, Net ​ $ 16,089,035 ​ $ 1,389,936 ​ As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS (the “Atomistic Agreements”), which provided for an exclusive license of key m m ​ As of the effective date of the Atomistic Agreements, the Company recorded an intangible technology license asset of $15,000,000 and an accrued liability (short-term and long-term), Licensing Fees Commitment, of $15,000,000 . This intangible asset is to be amortized over a

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2022
Other Assets
Other Assets	Note 7 - Other Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 Private Corporation Investments (at cost) ​ $ 450,000 ​ $ 450,000 ​ ​ ​ ​ ​ ​ ​ Software Development Costs ​ ​ 750,000 ​ ​ 500,000 Additions ​ ​ 125,000 ​ ​ 250,000 Less: Accumulated Amortization ​ ​ (291,667) ​ ​ (208,334) Software Development Costs, Net ​ ​ 583,333 ​ ​ 541,666 ​ ​ ​ ​ ​ ​ ​ Unamortized Common Stock Expense included in Long-Term Prepaid Expenses ​ ​ 805,714 ​ ​ 491,923 ​ ​ ​ ​ ​ ​ ​ Total Other Assets ​ $ 1,839,047 ​ $ 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 thirty-six

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2022
Accrued Expenses
Accrued Expenses	Note 8 – Accrued Expenses Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 518,967 ​ $ 683,044 Accrued Professional Services ​ 320,807 ​ 551,220 Accrued Warranty Obligations ​ 178,229 ​ 185,044 Other Accrued Expenses ​ 596,580 ​ — ​ ​ ​ ​ ​ ​ ​ Total ​ $ 1,614,583 ​ $ 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 six months ended June 30, 2022 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligations at December 31, 2021 ​ $ 185,044 Reductions for Settling Warranties ​ (168,873) Warranties Issued During Year ​ 162,058 ​ ​ ​ ​ Accrued Warranty Obligations at June 30, 2022 ​ $ 178,229 ​

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2022
Income Taxes
Income Taxes	Note 9 – Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets.

Capital Stock

Capital Stock	6 Months Ended
	Jun. 30, 2022
Capital Stock
Capital Stock	Note 10 – Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of June 30, 2022 and December 31, 2021. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil shares of Series A Preferred Stock issued and outstanding on June 30, 2022 and December 31, 2021, respectively. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 64,025,640 shares issued and 63,988,955 shares outstanding as of June 30, 2022 and 63,672,268 shares issued ​ In connection with the Atomistic Agreements, the Company will, upon the achievement or waiver of performance milestones contained in the Atomistic Agreements, be committed to pay $2,500,000 and to issue a minimum of 1,750,000 common shares of Vuzix to Atomistic owners/founders (as a portion of the consideration for certain shares of Atomistic) which would result in Vuzix obtaining Series A Convertible Preferred shares in Atomistic that could ultimately be converted into common shares of Atomistic, with Atomistic becoming a subsidiary of the Company, and Vuzix ultimately owning 100% of Atomistic. The share issuances by the Company may not commence any earlier than April 2023 and are expected to be issued over the next 24 months unless waived and accelerated by the Company. In the event the fair market value, which is determined based upon the trailing 10-day VWAP, of the Company’s common shares issued is between a floor of $8 and ceiling of $13, Vuzix may opt to pay any fair market value valuation shortfall with up to 1,093,750 Vuzix common shares or cash to Atomistic owners/founders. Within five years of the commencement of the Atomistic Agreements, the Company has agreed to issue up to a 15% equity bonus of the previously issued common shares to Atomistic stockholders, if; (i) the Company engages in a change of control transaction for an implied equity value of at least $3.5 billion or (ii) the Company’s market valuation exceeds $3.5 billion, if it is determined that fifty percent (50%) of such implied equity value or market capitalization is directly attributable to any technology developed by Atomistic. This could result in the issuance of an additional 262,500 to 426,563 common shares of the Company’s common stock when that valuation target is exceeded. None of these share commitments have been issued to date. ​ Treasury Stock

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2022
Stock-Based Compensation
Stock-Based Compensation	Note 11 – Stock-Based Compensation A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the six months ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number of ​ Average ​ Options Exercise Price Outstanding at December 31, 2021 2,823,634 ​ $ 7.67 Granted 117,500 ​ 5.83 Exercised (85,452) ​ 2.66 Expired or Forfeited (111,014) ​ 8.19 ​ ​ ​ ​ ​ ​ Outstanding at June 30, 2022 2,744,668 ​ $ 7.75 ​ The weighted average remaining contractual term for all options as of June 30, 2022 and December 31, 2021 was 7.57 years and 7.95 years, respectively. As of June 30, 2022, there were 1,303,168 options that were fully-vested and exercisable at a weighted average exercise price of $6.36 per share. The weighted average remaining contractual term of the vested options is 6.5 years. As of June 30, 2022, there were 1,441,500 unvested options exercisable at a weighted average exercise price of $9.73 per share. The weighted average remaining contractual term of the unvested options is 8.5 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At June 30, 2022, the Company had $7,815,902 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 2.8 years. During the three months ended June 30, 2022, the Company issued 88,650 shares of common stock to its independent board members as part of their annual retainer for services covering the period of July 2022 to June 2023. The fair market value on the date of award of the stock issued was $5.64, resulting in an aggregate fair value of approximately $500,000. The fair market value of these awards is expensed over twelve (12) months, beginning on July 1, 2022. During the three months ended June 30, 2022, the Company issued 200,000 shares of common stock to its recently appointed Chief Operating Officer. The fair market value on the date of award of the stock issued was $5.64, resulting in an aggregate fair value of approximately $1,128,000. The fair market value of this award is expensed over a forty-two (42) month vesting period, beginning on June 15, 2022. For the three months ended June 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $1,222,733 and $1,012,094, respectively. For the six months ended June 30, 2022 and 2021, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $2,573,343 and $1,468,838, respectively

Long-term Incentive Plan

Long-term Incentive Plan	6 Months Ended
	Jun. 30, 2022
Long-term Incentive Plan
Long-term Incentive Plan	Note 12 – Long-Term Incentive Plan On March 17, 2021, the Company granted options to purchase a total of 5,784,000 shares of common stock to its officers and certain other members of its management team. The options were granted under the Company’s existing 2014 Incentive Stock Plan. The options have an exercise price of $19.00, with 375,000 options vesting immediately and the remaining portion vesting upon the achievement of certain equity market capitalization milestones, and revenue and EBITDA operational milestones. For the three months ended June 30, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $2,658,294 and $2,115,476, respectively, for options that vested or are probable to vest. For the six months ended June 30, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $5,627,432 and $7,192,775, 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 June 30, 2022, we had $22,713,026 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 June 30, 2022, and going forward, should all of the operational milestones which are currently not yet deemed probable of achievement become probable of achievement or are achieved, then the Company could ultimately recognize up to an additional $34.1 million in non-cash stock-based compensation expense at such time. ​ The unvested remaining equity market capitalization and operational milestones under the LTIP with their total related option grants and criteria achievement weightings of the options available for meeting a target are shown in the following table. Of the total 5,409,000 unvested options outstanding as of June 30, 2022 and December 31, 2021, there are 2,704,500 options unvested for the achievement of equity market capitalization targets, 1,893,150 unvested options for the achievement of annual revenue targets, and 811,350 unvested options for the achievement of annual EBITDA margins before non-cash charges targets. ​ ​ ​ ​ ​ Award Potential Criteria Achievement Weighting ​ 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA ​ ​ ​ ​ ​ ​ ​ ​ 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 ​ ​ ​ ​

Litigation

Litigation	6 Months Ended
	Jun. 30, 2022
Litigation
Litigation	Note 13 – Litigation We are not currently involved in any actual or pending legal proceedings 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	6 Months Ended
	Jun. 30, 2022
Right-of-Use Assets and Liabilities
Right-of-Use Assets and Liabilities	Note 14 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of June 30, 2022 were as follows: ​ ​ ​ ​ ​ 2022 ​ $ 277,067 2023 ​ 546,916 2024 ​ 45,576 Total Future Lease Payments ​ 869,559 Less: Imputed Interest ​ (31,639) Total Lease Liability Balance ​ $ 837,920 ​ Operating lease costs under the operating leases totaled $163,277 and $164,205 for the three months ended June 30, 2022 and 2021, respectively. Operating lease costs under the operating leases totaled $325,642 and $288,420 for the six months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the weighted average discount rate was 4.5% and the weighted average remaining lease term was 1.6 years.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2022
Basis of Presentation
Basis of Presentation	The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications may have been made to prior periods to conform with current reporting. The results of the Company’s operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2021, as reported in the Company’s Annual Report on Form 10-K 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: ​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Additional Paid-in Capital ​ Increase of $466,015 Increase of $2,978,022 Research and Development Expense ​ Increase of $23,262 Increase of $148,653 Sales and Marketing ​ Increase of $11,631 Increase of $74,327 General and Administrative ​ Increase of $431,122 Increase of $2,755,042 Net Loss ​ Increase of $466,015 Increase of $2,978,022 Loss per Share ​ Increase of $0.01 Increase of $0.06
Customer Concentrations	Customer Concentrations For the three months ended June 30, 2022, one customer represented 45% of total product revenue and one customer represented 100% of engineering services revenue. For the three months ended June 30, 2021, no one customer represented more than 10% of total product revenue and one customer represented 100% of engineering services revenue. For the six months ended June 30, 2022, one customer represented 24% of total product revenue and one customer represented 100% of engineering services revenue. For the six months ended June 30, 2021, no one customer represented more than 10% of total product revenue and two customers represented 100% of engineering services revenue. As of June 30, 2022, three customers represented 42%, 15% and 15% 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)	6 Months Ended
	Jun. 30, 2022
Basis of Presentation
Schedule of effect of changes on actual stock-based compensation expense	​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Additional Paid-in Capital ​ Increase of $466,015 Increase of $2,978,022 Research and Development Expense ​ Increase of $23,262 Increase of $148,653 Sales and Marketing ​ Increase of $11,631 Increase of $74,327 General and Administrative ​ Increase of $431,122 Increase of $2,755,042 Net Loss ​ Increase of $466,015 Increase of $2,978,022 Loss per Share ​ Increase of $0.01 Increase of $0.06

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	6 Months Ended
	Jun. 30, 2022
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, ​ 2022 2021 2022 2021 Revenues ​ ​ ​ ​ Smart Glasses Sales ​ $ 2,898,892 ​ $ 2,833,644 ​ $ 5,401,944 ​ $ 6,638,814 Engineering Services ​ 108,866 ​ 82,894 ​ 108,866 ​ 193,113 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Revenue ​ $ 3,007,758 ​ $ 2,916,538 ​ $ 5,510,810 ​ $ 6,831,927
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 six months ended June 30, 2022: ​ ​ ​ ​ ​ ​ ​ ​ % of Total Net Sales ​ ​ 2022 2021 Point-in-Time 98 % 97 % Over Time – Input Method 2 % 3 % ​ ​ ​ ​ ​ ​ Total 100 % 100 %

Inventories, Net (Tables)

Inventories, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Inventories, Net
Schedule of Inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 10,414,139 ​ $ 11,580,766 Work-in-Process ​ 285,481 ​ 226,126 Finished Goods ​ 2,095,643 ​ 1,472,534 Less: Reserve for Obsolescence ​ (1,003,174) ​ (1,127,444) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 11,792,089 ​ $ 12,151,982

Fixed Assets (Tables)

Fixed Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Fixed Assets
Fixed Assets, Net	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 Tooling and Manufacturing Equipment ​ $ 9,930,222 ​ $ 6,612,811 Leaseholds ​ 826,329 ​ 797,059 Computers and Purchased Software ​ 1,035,358 ​ 980,561 Furniture and Equipment ​ 2,673,787 ​ 2,661,346 ​ ​ 14,465,696 ​ 11,051,777 Less: Accumulated Depreciation ​ (6,414,432) ​ (5,861,339) Fixed Assets, Net ​ $ 8,051,264 ​ $ 5,190,438

Technology Licenses, Net (Table

Technology Licenses, Net (Tables)	6 Months Ended
	Jun. 30, 2022
Licenses [Member]
Schedule of Finite-Lived Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 2,443,356 ​ $ 1,038,606 Additions ​ 15,000,000 ​ 1,404,750 Less: Accumulated Amortization ​ (1,354,321) ​ (1,053,420) Licenses, Net ​ $ 16,089,035 ​ $ 1,389,936

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
	Jun. 30, 2022
Other Assets
Schedule of other assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 Private Corporation Investments (at cost) ​ $ 450,000 ​ $ 450,000 ​ ​ ​ ​ ​ ​ ​ Software Development Costs ​ ​ 750,000 ​ ​ 500,000 Additions ​ ​ 125,000 ​ ​ 250,000 Less: Accumulated Amortization ​ ​ (291,667) ​ ​ (208,334) Software Development Costs, Net ​ ​ 583,333 ​ ​ 541,666 ​ ​ ​ ​ ​ ​ ​ Unamortized Common Stock Expense included in Long-Term Prepaid Expenses ​ ​ 805,714 ​ ​ 491,923 ​ ​ ​ ​ ​ ​ ​ Total Other Assets ​ $ 1,839,047 ​ $ 1,483,589

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2022
Accrued Expenses
Schedule of Accrued Expenses	Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ June 30, ​ December 31, ​ 2022 2021 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 518,967 ​ $ 683,044 Accrued Professional Services ​ 320,807 ​ 551,220 Accrued Warranty Obligations ​ 178,229 ​ 185,044 Other Accrued Expenses ​ 596,580 ​ — ​ ​ ​ ​ ​ ​ ​ Total ​ $ 1,614,583 ​ $ 1,419,308
Schedule of changes in accrued warranty obligations	The changes in the Company’s accrued warranty obligations for the six months ended June 30, 2022 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligations at December 31, 2021 ​ $ 185,044 Reductions for Settling Warranties ​ (168,873) Warranties Issued During Year ​ 162,058 ​ ​ ​ ​ Accrued Warranty Obligations at June 30, 2022 ​ $ 178,229

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2022
Stock-Based Compensation
Schedule of Summary of Stock Option Activity	A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the six months ended June 30, 2022 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ ​ Number of ​ Average ​ Options Exercise Price Outstanding at December 31, 2021 2,823,634 ​ $ 7.67 Granted 117,500 ​ 5.83 Exercised (85,452) ​ 2.66 Expired or Forfeited (111,014) ​ 8.19 ​ ​ ​ ​ ​ ​ Outstanding at June 30, 2022 2,744,668 ​ $ 7.75

Long-term Incentive Plan (Table

Long-term Incentive Plan (Tables)	6 Months Ended
	Jun. 30, 2022
Long-term Incentive Plan
Schedule of effect of changes on actual stock-based compensation expense	​ Three Months Ended June 30, 2021 Six Months Ended June 30, 2021 Additional Paid-in Capital ​ Increase of $466,015 Increase of $2,978,022 Research and Development Expense ​ Increase of $23,262 Increase of $148,653 Sales and Marketing ​ Increase of $11,631 Increase of $74,327 General and Administrative ​ Increase of $431,122 Increase of $2,755,042 Net Loss ​ Increase of $466,015 Increase of $2,978,022 Loss per Share ​ Increase of $0.01 Increase of $0.06
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)	6 Months Ended
	Jun. 30, 2022
Right-of-Use Assets and Liabilities
Schedule of Future lease payments under operating leases	Future lease payments under operating leases as of June 30, 2022 were as follows: ​ ​ ​ ​ ​ 2022 ​ $ 277,067 2023 ​ 546,916 2024 ​ 45,576 Total Future Lease Payments ​ 869,559 Less: Imputed Interest ​ (31,639) Total Lease Liability Balance ​ $ 837,920

Basis of Presentation (Details)

Basis of Presentation (Details) - customer	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 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	1	1
One customer | Total revenues [Member]
Number of customers	1		1	1
One customer | Total revenues [Member] | Customer Concentration Risk
Concentration Risk, Percentage	45%		24%	10%
One customer | Total revenues [Member] | Sales of Engineering Services | Customer Concentration Risk
Concentration Risk, Percentage	100%	100%	100%
One customer | Accounts Receivable [Member] | Customer Concentration Risk
Concentration Risk, Percentage			42%		27%
One customer | Revenue from Contract with Customer, Product and Service Benchmark [Member] | Customer Concentration Risk
Concentration Risk, Percentage	10%
Two customers | Sales of Engineering Services
Number of customers				2
Two customers | Total revenues [Member] | Sales of Engineering Services | Customer Concentration Risk
Concentration Risk, Percentage				100%
Two customers | Accounts Receivable [Member] | Customer Concentration Risk
Concentration Risk, Percentage			15%		20%
Three customers | Accounts Receivable [Member] | Customer Concentration Risk
Concentration Risk, Percentage			15%		10%

Basis of Presentation - Restate

Basis of Presentation - Restatement (Details) - Equity Market Capitalization Targets [Member] - Long-term Incentive Plan 2021 - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Additional Paid-in Capital	$ 466,015	$ 2,978,022
Research and Development Expense	23,262	148,653
Sales and Marketing	11,631	74,327
General and Administrative	431,122	2,755,042
Net Loss	$ 466,015	$ 2,978,022
Loss per Share	$ 0.01	$ 0.06

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) product	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($) product	Jun. 30, 2021 USD ($)
Revenue	$ 3,007,758	$ 2,916,538	$ 5,510,810	$ 6,831,927
Number of major product lines | product	2		2
Smart Glasses Sales
Revenue	$ 2,898,892	2,833,644	$ 5,401,944	6,638,814
Engineering Services
Revenue	$ 108,866	$ 82,894	$ 108,866	$ 193,113

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Revenue Performance Obligation Percentage	100%	100%
Point-in-Time - Output Method [Member]
Revenue Performance Obligation Percentage	98%	97%
Over Time - Input Method [Member]
Revenue Performance Obligation Percentage	2%	3%

Revenue Recognition and Contr_5

Revenue Recognition and Contracts with Customers - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Standard Product Warranty Term	12 months
Revenue, Remaining Performance Obligation	$ 691,134
Revenue, Performance Obligation, Total Transaction Price	800,000
Accrued Revenues in Excess of Billings	$ 108,866
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
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)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Loss Per Share
Earnings Per Share, Potentially Dilutive Securities	8,528,668	8,584,030

Inventories, Net - Components o

Inventories, Net - Components of Inventories (Detail) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Inventories, Net
Purchased Parts and Components	$ 10,414,139	$ 11,580,766
Work in Process	285,481	226,126
Finished Goods	2,095,643	1,472,534
Less: Reserve for Obsolescence	(1,003,174)	(1,127,444)
Inventories, Net	$ 11,792,089	$ 12,151,982

Fixed Assets - Schedule Of Fixe

Fixed Assets - Schedule Of Fixed Assets (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 14,465,696	$ 11,051,777
Less: Accumulated Depreciation	(6,414,432)	(5,861,339)
Property, Plant and Equipment, Net, Total	8,051,264	5,190,438
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	9,930,222	6,612,811
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	826,329	797,059
Computers and Purchased Software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,035,358	980,561
Furniture and Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,673,787	$ 2,661,346

Fixed Assets - Additional Infor

Fixed Assets - Additional Information (Details) - USD ($)		3 Months Ended	6 Months Ended		12 Months Ended
	Apr. 27, 2022	Jun. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2022	May 12, 2022
Property, Plant and Equipment [Line Items]
Payments to Acquire Property			$ 3,504,931	$ 719,164
Commitment Fee		$ 10,970,880	$ 10,970,880
Atomistic SAS
Property, Plant and Equipment [Line Items]
Exclusive license agreement, total value						$ 30,000,000
Amount allocated to technology license						$ 15,000,000
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Property plant and equipment, purchase order placed	$ 2,162,481
Property, plant And equipment, down payment made	$ 1,050,748
Payments to Acquire Property					$ 4,029,120
Tooling and Manufacturing Equipment | Minimum
Property, Plant and Equipment [Line Items]
Period in which the fixed asset is to be placed in service		18 months
Tooling and Manufacturing Equipment | Maximum
Property, Plant and Equipment [Line Items]
Period in which the fixed asset is to be placed in service		24 months
Custom Chip Tooling Asset
Property, Plant and Equipment [Line Items]
Property, plant And equipment, down payment made		$ 2,139,120
Additional progress payments towards custom chip tooling asse		$ 1,890,000

Technology Licenses, Net (Detai

Technology Licenses, Net (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Licenses Net [Line Items]
Licenses, Net	$ 16,089,035	$ 1,389,936
Licensing agreements
Licenses Net [Line Items]
Licenses	2,443,356	1,038,606
Additions	15,000,000	1,404,750
Less: Accumulated Amortization	(1,354,321)	(1,053,420)
Licenses, Net	$ 16,089,035	$ 1,389,936

Technology Licenses, Net - Addi

Technology Licenses, Net - Additional Information (Details) - USD ($)		3 Months Ended	6 Months Ended
	May 12, 2022	Jun. 30, 2022	Jun. 30, 2022	Dec. 31, 2021
Licenses Net [Line Items]
Licensing fees commitment		$ 10,500,000	$ 10,500,000
Payment of licensing fee commitment		4,500,000
Amortization expense		187,500
Atomistic SAS
Licenses Net [Line Items]
Exclusive license agreement, total value	$ 30,000,000
Amount allocated to technology license	15,000,000
Licensing fees commitment	$ 15,000,000
Finite-Lived Intangible Asset, Useful Life	10 years
Atomistic SAS | Minimum
Licenses Net [Line Items]
Contractual obligation period			18 months
Atomistic SAS | Maximum
Licenses Net [Line Items]
Contractual obligation period			24 months
Licensing agreements
Licenses Net [Line Items]
Value of shares development milestones		$ 15,000,000	$ 15,000,000	$ 1,404,750
Licensing agreements | Atomistic SAS
Licenses Net [Line Items]
Value of shares development milestones	$ 15,000,000

Other Assets (Details)

Other Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021	Mar. 31, 2022	Oct. 31, 2021	Dec. 31, 2020
Private Corporation Investment	$ 450,000	$ 450,000
Additions	8,051,264	5,190,438
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses	805,714	491,923
Total Other Assets	1,839,047	1,483,589
Software Development
Software development costs	750,000	500,000
Additions	125,000	250,000	$ 125,000	$ 250,000	$ 500,000
Less: Accumulated Amortization	(291,667)	(208,334)
Software Development Costs, Net	$ 583,333	$ 541,666

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2020	Mar. 31, 2022	Dec. 31, 2021	Oct. 31, 2021
Other assets [Line Items]
Additions	$ 8,051,264			$ 5,190,438
Amortization expense	187,500
Software Development
Other assets [Line Items]
Additions	$ 125,000	$ 500,000	$ 125,000	$ 250,000	$ 250,000
Useful life		36 months

Accrued Expenses - Components o

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Accrued Expenses
Accrued Wages and Related Costs	$ 518,967	$ 683,044
Accrued Professional Services	320,807	551,220
Accrued Warranty Obligations	178,229	185,044
Other Accrued Expenses	596,580
Total	$ 1,614,583	$ 1,419,308

Accrued Expenses - Changes in A

Accrued Expenses - Changes in Accrued Warranty Obligations (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Accrued Expenses
Accrued Warranty Obligations, beginning of period	$ 185,044
Reductions for Settling Warranties	(168,873)
Warranties Issued During Period	162,058
Accrued Warranty Obligations, end of period	$ 178,229

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Standard Product Warranty Term	12 months
Other Accrued Expenses	$ 596,580
Next Generation Smart Glasses [Member]
Other Accrued Expenses	$ 331,000

Capital Stock (Details)

Capital Stock (Details) - USD ($)		3 Months Ended	6 Months Ended
	Mar. 02, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 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		$ 12,749,374		$ 97,789,038
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			64,025,640		63,672,268
Common Stock, Shares, Outstanding			63,988,955		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		0
Atomistic agreement
Amount committed to pay upon the achievement or waiver of performance milestones			$ 2,500,000
Period of time to issue per agreement			24 months
Period for equity bonus			5 years
Threshold percentage of market capital from developed technology			50%
Share commitments issued to date			0
Minimum
Fair market value			$ 8
Minimum | Atomistic agreement
Issuance of shares, performance milestones (in shares)			1,750,000
Threshold market valuation			$ 3,500,000,000
Issuance of shares on exceeding valuation target (in shares)			262,500
Maximum
Fair market value			$ 13
Maximum | Atomistic agreement
Issuance of shares on fair valuation shortfall (in shares)			1,093,750
Equity bonus (as a percent)			15%
Issuance of shares on exceeding valuation target (in shares)			426,563
Common Stock
Company awarded shares		621,951		4,768,293
Shares issued value		$ 622		$ 4,768
Preferred Stock Converted & Preferred Dividend Settlement (in shares)		4,962,600		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	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Number of Options
Outstanding, Beginning Balance | shares	2,823,634
Granted | shares	117,500
Exercised | shares	(85,452)
Expired or Forfeited | shares	(111,014)
Outstanding, Ending Balance | shares	2,744,668
Weighted Average Exercise Price
Outstanding, Beginning Balance | $ / shares	$ 7.67
Granted | $ / shares	5.83
Exercised | $ / shares	2.66
Expired or Forfeited | $ / shares	8.19
Outstanding, Ending Balance | $ / shares	$ 7.75

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Stock-Based Compensation Plans
Options Outstanding, Weighted Average Remaining Life (Years)			7 years 6 months 25 days		7 years 11 months 12 days
Exercisable Options Outstanding Shares	1,303,168		1,303,168
Weighted average exercise price per share, Exercisable	$ 6.36		$ 6.36
Weighted average remaining contractual term on vested options			6 years 6 months
Unvested Options Outstanding, Shares	1,441,500		1,441,500
Unvested Options Outstanding, Weighted average exercise price			$ 9.73
Unvested Options Outstanding Weighted average remaining life (years)			8 years 6 months
Unrecognized stock compensation expense	$ 7,815,902		$ 7,815,902
Weighted average recognition period			2 years 9 months 18 days
Share-Based compensation excludes the long term incentive plan expense	$ 1,222,733	$ 1,012,094	$ 2,573,343	$ 1,468,838
Board of directors and management members
Stock-Based Compensation Plans
Stock award issued	88,650
Weighted average fair value per share	$ 5.64
Aggregate fair value	$ 500,000
Chief financial officer
Stock-Based Compensation Plans
Stock award issued	200,000
Weighted average fair value per share	$ 5.64
Aggregate fair value	$ 1,128,000

Long-term Incentive Plan (Detai

Long-term Incentive Plan (Details) - USD ($)		3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 17, 2021	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Long-term Incentive Plan
Exercise price		$ 6.36		$ 6.36
Share-based Compensation				$ 8,200,774	$ 8,661,613
Unrecognized stock-based compensation expense		$ 7,815,902		$ 7,815,902
Recognition period				2 years 9 months 18 days
Options available in equity market and operational milestone				5,409,000		5,409,000
Equity Market Capitalization Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				2,704,500
Annual Revenue Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				1,893,150
Annual EBITDA Margins Before Non-Cash Charges Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				811,350
Stock options | Long-term Incentive Plan 2021
Long-term Incentive Plan
Granted	5,784,000
Exercise price	$ 19
Share-based Compensation		2,658,294	$ 2,115,476	$ 5,627,432	$ 7,192,775
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		22,713,026		22,713,026
Amount of threshold additional stock based compensation expense		$ 34,100,000		$ 34,100,000
Stock options tied to equity market capitalization milestone | Maximum
Long-term Incentive Plan
Recognition period				6 years

Long-term Incentive Plan - LTIP

Long-term Incentive Plan - LTIP (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Long-term Incentive Plan
Percentage of weightage for equity market capitalization target	50%
Percentage of weightage for last twelve months revenue target	35%
Percentage of weightage for last twelve months EBITDA margin before non-cash charges	15%
Options available in equity market and operational milestone	5,409,000	5,409,000
Stock option tied to equity market and operational milestones
Long-term Incentive Plan
Options available in equity market and operational milestone	5,409,000
Equity market and operational milestone one
Long-term Incentive Plan
Options available in equity market and operational milestone	686,000
Amount of equity market capitalization target	$ 2,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 25,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	0%
Equity market and operational milestone two
Long-term Incentive Plan
Options available in equity market and operational milestone	686,000
Amount of equity market capitalization target	$ 3,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 50,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	2%
Equity market and operational milestone three
Long-term Incentive Plan
Options available in equity market and operational milestone	686,000
Amount of equity market capitalization target	$ 4,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 100,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	4%
Equity market and operational milestone four
Long-term Incentive Plan
Options available in equity market and operational milestone	686,000
Amount of equity market capitalization target	$ 5,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 200,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	6%
Equity market and operational milestone five
Long-term Incentive Plan
Options available in equity market and operational milestone	586,000
Amount of equity market capitalization target	$ 6,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 300,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	8%
Equity market and operational milestone six
Long-term Incentive Plan
Options available in equity market and operational milestone	586,000
Amount of equity market capitalization target	$ 7,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 450,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	10%
Equity market and operational milestone seven
Long-term Incentive Plan
Options available in equity market and operational milestone	561,000
Amount of equity market capitalization target	$ 8,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 675,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	12%
Equity market and operational milestone eight
Long-term Incentive Plan
Options available in equity market and operational milestone	491,000
Amount of equity market capitalization target	$ 9,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 1,000,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	14%
Equity market and operational milestone nine
Long-term Incentive Plan
Options available in equity market and operational milestone	441,000
Amount of equity market capitalization target	$ 10,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 1,500,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	16%

Right-of-Use Assets and Liabi_3

Right-of-Use Assets and Liabilities - Operating Leases (Details)	Jun. 30, 2022 USD ($)
Right-of-Use Assets and Liabilities
2022	$ 277,067
2023	546,916
2024	45,576
Total Future Lease Payments	869,559
Less: Imputed Interest	(31,639)
Total Lease Liability Balance	$ 837,920

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, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Right-of-Use Assets and Liabilities
Operating lease costs	$ 163,277	$ 164,205	$ 325,642	$ 288,420
Weighted average discount rate	4.50%		4.50%
Weighted average remaining term	1 year 7 months 6 days		1 year 7 months 6 days