Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 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 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 409,000,000 | ||
Entity Common Stock, Shares Outstanding | 63,207,674 | ||
Auditor Name | Freed Maxick CPAs, P.C. | ||
Auditor Firm ID | 317 | ||
Auditor Location | Buffalo, New York | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and Cash Equivalents | $ 72,563,943 | $ 120,203,873 |
Accounts Receivable | 3,558,971 | 2,242,429 |
Accrued Revenues in Excess of Billings | 269,129 | |
Employee Retention Credit Receivable | 466,705 | |
Inventories, Net | 11,267,969 | 12,151,982 |
Manufacturing Vendor Prepayments | 998,671 | 504,051 |
Prepaid Expenses and Other Assets | 2,115,853 | 2,047,819 |
Total Current Assets | 91,241,241 | 137,150,154 |
Long-Term Assets | ||
Fixed Assets, Net | 3,878,505 | 5,190,438 |
Operating Lease Right-of-Use Asset | 956,165 | 1,117,022 |
Patents and Trademarks, Net | 2,220,094 | 1,988,370 |
Technology Licenses, Net | 30,158,689 | 1,389,936 |
Intangible Asset, Net | 675,313 | 147,548 |
Goodwill | 1,601,400 | |
Other Assets, Net | 1,581,143 | 1,483,589 |
Total Assets | 132,312,550 | 148,467,057 |
Current Liabilities | ||
Accounts Payable | 1,211,747 | 2,054,762 |
Unearned Revenue | 29,064 | 27,797 |
Accrued Expenses | 1,670,539 | 1,419,308 |
Licensing Fees Commitment | 11,500,000 | |
Income and Other Taxes Payable | 214,997 | 120,242 |
Operating Lease Right-of-Use Liability | 651,011 | 534,146 |
Total Current Liabilities | 15,277,358 | 4,156,255 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 305,154 | 582,876 |
Total Liabilities | 15,582,512 | 4,739,131 |
Stockholders' Equity | ||
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 63,783,779 shares issued and 63,319,107 shares outstanding as of December 31, 2022 and 63,672,268 shares issued and outstanding as of December 31, 2021. | 63,783 | 63,672 |
Additional Paid-in Capital | 362,507,715 | 346,736,397 |
Accumulated Deficit | (243,835,716) | (203,072,143) |
Treasury Stock, at cost, 464,672 shares as of December 31, 2022 and 0 shares as of December 31, 2021 | (2,005,744) | |
Total Stockholders' Equity | 116,730,038 | 143,727,926 |
Total Liabilities and Stockholders' Equity | $ 132,312,550 | $ 148,467,057 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
CONSOLIDATED BALANCE SHEETS | ||
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 63,783,779 | 63,672,268 |
Common Stock, Shares Outstanding | 63,319,107 | 63,672,268 |
Common shares held in treasury | 464,672 | 0 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Total |
Balance at Dec. 31, 2019 | $ 50 | $ 33,128 | $ 168,950,076 | $ (144,742,811) | $ 24,240,443 | |
Balance (in shares) at Dec. 31, 2019 | 49,626 | 33,128,620 | ||||
Stock-Based Compensation Expense | $ 943 | 2,656,888 | 2,657,831 | |||
Stock-Based Compensation Expense (in shares) | 942,986 | |||||
Proceeds from Common Stock Offering | $ 8,647 | 26,741,355 | 26,750,002 | |||
Proceeds from Common Stock Offering (in shares) | 8,647,059 | |||||
Direct Costs of Common Stock Offering | (1,550,666) | (1,550,666) | ||||
Stock Warrant Exercises | $ 2,883 | 14,125,644 | 14,128,527 | |||
Stock Warrant Exercises (in shares) | 2,882,647 | |||||
Stock Option Exercises | $ 44 | 29,176 | 29,220 | |||
Stock Option Exercises (in shares) | 43,854 | |||||
Net Loss | (17,952,172) | (17,952,172) | ||||
Balance at Dec. 31, 2020 | $ 50 | $ 45,645 | 210,952,473 | (162,694,983) | 48,303,185 | |
Balance (in shares) at Dec. 31, 2020 | 49,626 | 45,645,166 | ||||
Stock-Based Compensation Expense | $ 368 | 18,429,556 | 18,429,924 | |||
Stock-Based Compensation Expense (in shares) | 368,047 | |||||
Proceeds from Common Stock Offering | $ 4,768 | 97,745,239 | 97,750,007 | |||
Proceeds from Common Stock Offering (in shares) | 4,768,293 | |||||
Direct Costs of Common Stock Offering | (6,136,420) | (6,136,420) | ||||
Stock Warrant Exercises | $ 7,277 | 34,708,451 | 34,715,728 | |||
Stock Warrant Exercises (in shares) | 7,276,928 | |||||
Stock Option Exercises | $ 659 | 781,618 | 782,277 | |||
Stock Option Exercises (in shares) | 659,398 | |||||
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 | $ (50) | $ 4,963 | (10,004,913) | (10,000,000) | ||
Preferred Stock Converted (in shares) | (49,626) | 4,962,600 | ||||
Net Loss | (40,377,160) | (40,377,160) | ||||
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) | 15,713,732 | 15,713,729 | |||
Stock-Based Compensation Expense (in shares) | (3,017) | |||||
Stock Option Exercises | $ 114 | 57,586 | 57,700 | |||
Stock Option Exercises (in shares) | 114,528 | |||||
Purchases of Treasury Stock | $ (2,005,744) | $ (2,005,744) | ||||
Purchases of Treasury Stock (in Shares) | (464,672) | 464,672 | ||||
Net Loss | (40,763,573) | $ (40,763,573) | ||||
Balance at Dec. 31, 2022 | $ 63,783 | $ 362,507,715 | $ (243,835,716) | $ (2,005,744) | $ 116,730,038 | |
Balance (in shares) at Dec. 31, 2022 | 63,783,779 | (464,672) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Sales: | |||
Total Sales | $ 11,835,882 | $ 13,164,933 | $ 11,581,496 |
Cost of Sales: | |||
Cost of Sales - Depreciation and Amortization | 799,317 | 1,321,467 | 1,512,979 |
Total Cost of Sales | 10,352,756 | 11,596,443 | 10,983,538 |
Gross Profit | 1,483,126 | 1,568,490 | 597,958 |
Operating Expenses: | |||
Research and Development | 12,676,688 | 11,674,954 | 7,568,074 |
Selling and Marketing | 8,078,538 | 6,118,929 | 4,039,772 |
General and Administrative | 21,038,562 | 22,502,833 | 6,915,213 |
Depreciation and Amortization | 1,788,584 | 988,104 | 1,128,831 |
Loss on Fixed Asset Disposal | 35,350 | 183,614 | 0 |
Impairment of Patents and Trademarks | 97,675 | 80,163 | 73,532 |
Total Operating Expenses | 43,715,397 | 41,548,597 | 19,725,422 |
Loss From Operations | (42,232,271) | (39,980,107) | (19,127,464) |
Other Income (Expense): | |||
Investment Income | 1,395,579 | 53,511 | 41,120 |
Income and Other Taxes | (212,997) | (307,368) | (103,833) |
Foreign Exchange Loss | (180,589) | (143,196) | (67,895) |
Employee Retention Credit Refund | 466,705 | ||
Gain on Debt Extinguishment, net of Loss on Note Receivable | 1,305,900 | ||
Total Other Income (Expense), Net | 1,468,698 | (397,053) | 1,175,292 |
Loss Before Provision for Income Taxes | (40,763,573) | (40,377,160) | (17,952,172) |
Provision for Income Taxes | |||
Net Loss | (40,763,573) | (40,377,160) | (17,952,172) |
Preferred Stock Dividends - Accrued not Paid | (2,056,150) | ||
Loss Attributable to Common Stockholders | $ (40,763,573) | $ (40,377,160) | $ (20,008,322) |
Basic Loss per Common Share | $ (0.64) | $ (0.66) | $ (0.53) |
Diluted Loss per Common Share | $ (0.64) | $ (0.66) | $ (0.53) |
Weighted-average Shares Outstanding - Basic | 63,708,986 | 61,125,215 | 38,109,765 |
Weighted-average Shares Outstanding - Diluted | 63,708,986 | 61,125,215 | 38,109,765 |
Sales of Products | |||
Sales: | |||
Total Sales | $ 10,505,763 | $ 12,784,600 | $ 10,081,209 |
Cost of Sales: | |||
Cost of Sales | 8,737,852 | 9,709,268 | 7,914,686 |
Inventory Reserve for Obsolescence | |||
Cost of Sales: | |||
Cost of Sales | 290,405 | 519,950 | 1,273,835 |
Sales of Engineering Services | |||
Sales: | |||
Total Sales | 1,330,119 | 380,333 | 1,500,287 |
Cost of Sales: | |||
Cost of Sales | $ 525,182 | $ 45,758 | $ 282,038 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | |||
Net Loss | $ (40,763,573) | $ (40,377,160) | $ (17,952,172) |
Non-Cash Adjustments | |||
Depreciation and Amortization | 2,587,901 | 2,309,571 | 2,641,810 |
Stock-Based Compensation | 15,775,553 | 17,302,833 | 2,805,842 |
Impairment of Patents and Trademarks | 97,675 | 80,163 | 73,532 |
Loss on Fixed Asset Disposal | 35,350 | 183,614 | 0 |
Gain on Debt Extinguishment, net of Loss on Note Receivable | (1,305,900) | ||
Change in Inventory Reserve for Obsolescence | 290,405 | 519,950 | 1,273,835 |
(Increase) Decrease in Operating Assets | |||
Accounts Receivable | (1,316,542) | (853,547) | (289,413) |
Accrued Revenues in Excess of Billings | (269,129) | ||
Accrued Employee Retention Credit Receivable | (466,705) | ||
Inventories | 593,608 | (6,571,108) | (1,666,792) |
Manufacturing Vendor Prepayments | (494,620) | (19,019) | (242,493) |
Prepaid Expenses and Other Assets | (95,244) | (526,825) | 156,537 |
Increase (Decrease) in Operating Liabilities | |||
Accounts Payable | (843,015) | 537,607 | 454,370 |
Accrued Expenses | 251,231 | 436,276 | 97,136 |
Unearned Revenue | 1,268 | (13,355) | (101,311) |
Income and Other Taxes Payable | 94,755 | 10,589 | 90,966 |
Net Cash Flows Used in Operating Activities | (24,521,082) | (26,980,411) | (13,964,053) |
Cash Flows from Investing Activities | |||
Purchases of Fixed Assets | (1,723,622) | (3,809,268) | (496,629) |
Investments in Patents and Trademarks | (499,031) | (593,184) | (488,884) |
Investments in Licenses, Intangibles and Other Assets | (16,523,163) | (200,000) | |
Investments in Software Development | (125,000) | (250,000) | (500,000) |
Business Acquisition, net of cash acquired | (2,300,000) | ||
Net Cash Flows Used in Investing Activities | (21,170,816) | (4,852,452) | (1,485,513) |
Cash Flows from Financing Activities | |||
Proceeds from Exercise of Warrants | 34,715,728 | 14,128,527 | |
Proceeds from Exercise of Stock Options | 57,712 | 782,277 | 29,220 |
Proceeds from Common Stock Offering, Net | 91,613,587 | 25,199,336 | |
Purchases of Treasury Stock | (2,005,744) | ||
Preferred Dividend Settlement Payment | (10,000,000) | ||
Employee Tax Withholdings Payment | (1,144,364) | ||
Proceeds from Term Note | 1,555,900 | ||
Net Cash Flows (Used in) Provided from Financing Activities | (1,948,032) | 115,967,228 | 40,912,983 |
Net (Decrease) Increase in Cash and Cash Equivalents | (47,639,930) | 84,134,365 | 25,463,417 |
Cash and Cash Equivalents - Beginning of Period | 120,203,873 | 36,069,508 | 10,606,091 |
Cash and Cash Equivalents - End of Period | 72,563,943 | 120,203,873 | 36,069,508 |
Supplemental Disclosures | |||
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | 1,240,156 | 1,365,242 | 219,051 |
Non-Cash Investment in Licenses | 11,500,000 | 1,294,262 | 272,444 |
Stock-Based Compensation Expense - Expensed less Previously Issued | $ 61,824 | $ (1,127,091) | $ 148,011 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies Operations Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in West Henrietta, New York (a suburb of Rochester). We are engaged in the design, manufacture, marketing and sale of augmented reality wearable display and computing devices also referred to as head mounted displays (or HMDs, but also known as near-eye displays), in the form of Smart Glasses and Augmented Reality (AR) glasses. Our AR wearable display devices are worn like eyeglasses or attach to a head worn mount. These devices typically include cameras, sensors, and a computer that enable the user to view, record and interact with video and digital content, such as computer data, the internet, social media or entertainment applications. Our wearable display products integrate micro-display technology with our advanced optics to produce compact high-resolution display engines, less than half an inch diagonally, which when viewed through our smart glasses products create virtual images that appear comparable in size to that of a computer monitor or a large-screen television. The wearable display products we produce can be used for a variety of enterprise, commercial and medical uses and applications, including AR for on-the-go users and as mobile displays and remote service support. Our products are available with varying features and are offered as monocular and binocular display systems. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Vuzix (Europe) Limited and Moviynt, Inc. All significant inter-company transactions have been eliminated. Business Acquisitions The Company applied the acquisition method of accounting for business acquisitions, as described in further detail in Note 2. Under the acquisition method, identifiable assets acquired, liabilities assumed and consideration transferred are measured at their acquisition-date fair value. The Company used various income methods to determine the fair values, described in further detail in Note 2. We relied upon the use of reports from third-party valuation specialists to assist in the estimation of fair values. Purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Costs to acquire a business may include, but are not limited to, fees for accounting, legal and valuation services, and are expensed as incurred in the Consolidated Statements of Operations. Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. Each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 5, 7 and 12. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE is not included in our consolidated financial statements. We account for this investment as a technology license. The maximum exposure of this unconsolidated VIEs is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE is our capital investment in them. The carrying value and maximum exposure Segment Data, Geographic Information and Significant Customers The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product and engineering services revenue and material engineering services costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 19 — Geographic and Other Financial Information (Unaudited). Foreign Currency Transactions The Company considers the US dollar as the functional currency of the Company’s United Kingdom subsidiary. The Company’s United Kingdom subsidiary transacts in Euros and British pounds. All transactions in foreign currencies are recorded in U.S. dollars at the then current exchange rate(s). Upon settlement of the underlying transaction, all amounts are re-measured to U.S. dollars at the current exchange rate on date of settlement. All unsettled foreign currency transactions that remain in accounts receivable and trade account payables are re-measured to U.S. dollars at the period-end exchange rates. All re-measurement gains and losses are recorded in the current period net income. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Cash and Cash Equivalents Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable, unearned revenue, accrued expenses, and income and other taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. Accounts Receivable The Company carries its trade accounts receivable at the invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter-end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at-risk receivables. The allowance for doubtful accounts as of December 31, 2022, and 2021 was nil. The Company does not accrue interest on any past due accounts receivable unless such receivable goes into collection. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Operations for the years ended December 31, 2021 and 2020 to reclassify depreciation expense related to our manufacturing operations from the amounts of reported depreciation and amortization expenses originally included in Operating Expenses. This change in classification does not affect previously reported Net Loss or reported Cash Flows Used in Operating Activities in the Consolidated Statements of Cash Flows or Consolidated Balance Sheets. The below table is a summary of the impact to these reclassifications: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Condensed Statement of Operations As Previously Presented Reclassification Revised As Previously Presented Reclassification Revised Total Sales $ 13,164,933 $ — $ 13,164,933 $ 11,581,496 $ — $ 11,581,496 Total Cost of Sales 10,714,088 882,355 11,596,443 9,653,887 1,329,651 10,983,538 Gross Profit 2,450,845 (882,355) 1,568,490 1,927,609 (1,329,651) 597,958 Operating Expenses: Research and Development 11,674,954 11,674,954 7,568,074 7,568,074 Selling and Marketing 6,118,929 6,118,929 4,039,772 4,039,772 General and Administrative 22,502,833 22,502,833 6,915,213 6,915,213 Depreciation and Amortization 1,870,459 (882,355) 988,104 2,458,482 (1,329,651) 1,128,831 Loss on Fixed Asset Disposal 183,614 183,614 — — Impairment of Patents and Trademarks 80,163 80,163 73,532 73,532 Total Operating Expenses 42,430,952 (882,355) 41,548,597 21,055,073 (1,329,651) 19,725,422 Loss From Operations (39,980,107) — (39,980,107) (19,127,464) — (19,127,464) Total Other (Expense) Income, Net (397,053) (397,053) 1,175,292 1,175,292 Net Loss $ (40,377,160) $ — $ (40,377,160) $ (17,952,172) $ — $ (17,952,172) Customer and Supplier Concentrations One customer represented 14% of total product revenue and two customers represented 48% and 39%, respectively, of engineering services revenue for the year ended December 31, 2022. One customer represented 10% of total product revenue and four customers represented 39%, 28%, 16% and 12%, respectively, of our engineering services revenue for the year ended December 31, 2021. No one customer represented more than 10% of total product revenue and two customers represented 48% and 26%, respectively, of our engineering services revenue for the year ended December 31, 2020. One customer represented 26% of accounts receivable at December 31, 2022. Three customers represented 27%, 20% and 10%, respectively, of accounts receivable at December 31, 2021. Two customers represented 21% and 14%, respectively, of accounts receivable at December 31, 2020. One third-party vendor represented 15% of purchases for the year ended December 31, 2022. As of December 31, 2022, the net amount due to this vendor was $478,382. Two third-party vendors represented 38% and 24%, respectively, of material purchases for the year ended December 31, 2021. As of December 31, 2021, the net amount due to these vendors was $504,073. Accrued Project Revenue The Company carries accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project less amounts invoiced, if any. As of December 31, 2022 there was $269,129 in accrued project revenue and nil as of December 31, 2021 and 2020. Inventories Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. Revenue Recognition The Company recognizes revenue from Contracts with Customers under FASB ASC Topic 606, "Revenue from Contracts with Customers", as of January 1, 2018. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales as performance obligations are satisfied and transfer of control and ownership to the customer has occurred, typically upon physical shipment. Revenue is recognized in the amount that the Company expects to receive in exchange from the sale of our products. FOB shipping point is our standard shipping term and revenue is recognized as our products ship to customers, as control and ownership are transferred at this time. All of our standard product sales include a 30-day money back guarantee and expected returns are estimated at each reporting period date, and a portion of revenue is deferred for all estimated returns. As of December 31, 2022 and 2021, unearned revenue consisted of deferred revenue associated with our expected returns were immaterial. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. Unearned Revenue These amounts represent deferred revenue against our expected product sales returns for all December 2022 and 2021 products sales that are subject to the Company’s 30-day money back guarantee return policy. Cost of Product Sales Cost of product sales includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing facility and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. Depreciation of manufacturing tools and equipment and amortization of software development costs are included in our cost of product sales. The cost of product sales can fluctuate significantly from period to period, depending upon the product mix and volume, the level of manufacturing overhead expense and the volume of direct cost of materials. Cost of Engineering Services Sales Cost of engineering services revenues includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in performing under the contract. Direct costs also include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of engineering sales is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. Fixed Assets Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. Patents and Trademarks The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written-off and expensed in the fiscal period where the application is abandoned or discontinued. Ongoing maintenance and legal fees for issued patents and trademarks are expensed as incurred. Software Development Costs The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management or of purchased software solutions when placed into service. Such costs are accumulated and capitalized. Projects can take several years to complete. Unsuccessful or discontinued software projects are written-off and expensed in the fiscal period when the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of product sales over the estimated life of the products, which currently is estimated at three years using a straight-line basis. As of December 31, 2022, 2021 and 2020, we had $500,000, $541,666 and $458,333, respectively, of net software development costs included in Other Assets. For the years ended December 31, 2022, 2021 and 2020, there was nil in impairment of software development costs. Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the expected life of the license. In some cases, future royalties are subject to annual limits. Long-Lived Assets, Goodwill and Other Acquired Intangible Assets The Company at least annually assesses all of its long-lived assets and intangibles, excluding goodwill, for impairment and when events or circumstances indicate their carrying amounts may not be recoverable. For the years ended December 31, 2022, 2021 and 2020, there was an impairment charge of $97,675, $80,163 and $73,532, respectively, to Patents and Trademarks. For the years ended December 31, 2022 and 2021, we recorded a loss on fixed asset disposal of $35,350 and $183,614, respectively, upon the retirement of certain tooling and manufacturing equipment assets no longer in use. No loss on fixed asset disposal charges on tooling and equipment were recorded in 2020. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. There was no goodwill impairment recognized for the periods presented. Intangible assets with definite lives are amortized over their estimated useful lives on a straight-line basis over a five-year period. Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third-party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. Provision for Future Warranty Costs The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based upon historical experience of warranty claims and costs. Advertising Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2022, 2021 and 2020 was $1,668,910, $1,263,897 and $974,461, respectively. Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. Net Loss Per Share Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2022, 2021 and 2020, all outstanding instruments would be anti-dilutive. As of December 31, 2022, 2021 and 2020, there were 8,589,673, 8,606,062 and 14,872,703 common stock share equivalents, respectively, that were potentially issuable under stock options, conversion of preferred shares (excluding accrued dividends), and stock warrants that could potentially dilute basic earnings per share in the future. Stock-Based Compensation Expense The Company accounts for stock-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation - Stock Compensation,” which requires that compensation expense be recognized in the consolidated financial statements for stock-based awards based on the grant date fair value. For stock option awards, the Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. For common stock awards, the Company uses the fair market value of our common stock on the date of each stock-based award based on the market price of the Company’s common shares and the expense related to these awards is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock awards and stock option grants for the years ended December 31, 2022, 2021 and 2020 was $4,645,026, $4,047,444 and $2,805,842, respectively, excluding awards under the Company’s Long-term Incentive Plan (LTIP). The Company issues new shares upon stock option exercises. For stock options awarded under the Company's LTIP, options vest only upon the achievement of certain equity market conditions or performance-based milestones. The fair value of options granted under this program were calculated by using a Monte Carlo simulation for the equity market condition tranches and the Black-Scholes-Merton option pricing method on the performance-based tranches. Stock-based compensation expense associated with the Company's LTIP for the years ended December 31, 2022 and 2021 was $11,130,527 and $13,255,388, respectively, and nil for the year ended December 31, 2020. Leases The Company determines if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Historically, non-lease components such as utilities have been immaterial. Payments under our lease arrangements are primarily fixed. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company has made an accounting policy election to account for lease and non-lease components in its contracts as a single lease component for its real estate leases. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of December 31, 2022, all of our leases are considered operating leases. Operating lease right-of-use assets and liabilities were included on our Consolidated Balance Sheets beginning January 1, 2019. The Company does not have any finance leases as of December 31, 2022. 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 is currently evaluating the guidance and its impact on the financial statements. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition | |
Acquisition | Note 2 – Acquisition On October 20, 2022, the Company acquired Moviynt®, a US-based SAP Certified ERP platform software solution provider, that supports handheld mobile phones and scanners used in logistics, warehousing and manufacturing applications. The Moviynt acquisition was completed pursuant to an agreement and plan of merger by and among the Company and Moviynt, Inc. (the Sellers), a Delaware corporation. Total purchase price consideration paid to the Sellers was $2,469,574 , which included $2,300,000 in base merger consideration and $169,574 in net working capital adjustments, in exchange for all shares outstanding. The acquisition agreements contained customary terms and conditions including representations, warranties and indemnification provisions. A portion of the consideration paid to the Sellers was held in escrow for indemnification purposes, which was subsequently released to the Sellers upon the Company completing a 90 -day post close review. The Moviynt acquisition was accounted for in accordance with the accounting treatment of a business combination pursuant to FASB ASC Topic 805, Business Combinations (“ASC 805”). Accordingly, the purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of the separately identifiable assets acquired and liabilities assumed was allocated to goodwill. Management is responsible for determining the acquisition date fair value of the assets acquired and liabilities assumed, which requires the use of various assumptions and judgments that are inherently subjective. The purchase price allocation presented below reflects all known information about the fair value of the assets acquired and liabilities assumed as of the acquisition date. The following table represents the preliminary assets acquired and liabilities assumed on October 20, 2022: Cash $ 132,233 Accounts Receivable 44,820 Goodwill 1,601,400 Other Intangible Assets 698,600 Accrued Expenses (7,479) Net Assets Acquired $ 2,469,574 The goodwill included in the Company’s purchase price allocation presented above represents the value of Moviynt’s assembled and trained workforce and the incremental value that Moviynt’s technology and deployment efforts currently in place will add to the Company’s expected revenue growth. No amount of goodwill is considered deductible for tax purposes. Intangible assets were valued using various income methods based upon management’s approved projections of future cash flows. The following table summarizes the estimated fair value and annual amortization for each of the identifiable intangible assets acquired: Estimated Fair Amortization Period Annual Amortization Value (Years) Year 1 Year 2 Year 3 Year 4 Year 5 Tradename-Trademark $ 92,600 5 $ 18,520 $ 18,520 $ 18,520 $ 18,520 $ 15,433 IP-Technology-License 415,400 5 83,080 83,080 83,080 83,080 69,233 Customer Base 153,400 5 30,680 30,680 30,680 30,680 25,567 Non-Competes 37,200 5 7,440 7,440 7,440 7,440 6,200 Total definite-lived intangible assets $ 698,600 $ 139,720 $ 139,720 $ 139,720 $ 139,720 $ 116,433 During the year ended December 31, 2022, In 2022, since the acquisition date, Moviynt generated $76,952 in engineering revenue which was applied against $24,819 related to Cost of Sales, generating a gross margin of $52,133. Revenues and earnings for Moviynt prior to the acquisition date are not presented here as they were considered non-material to the Company’s Consolidated Statement of Operations. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | Note 3 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Products Sales (which include Smart Glasses, OEM Product Sales, and Waveguide and Display Engine Sales) and Engineering Services. The following table summarizes the revenue recognized by product line: For the Years Ended December 31, 2022 2021 2020 Revenues Products Sales $ 10,505,763 $ 12,784,600 $ 10,081,209 Engineering Services 1,330,119 380,333 1,500,287 Total Revenue $ 11,835,882 $ 13,164,933 $ 11,581,496 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 considers shipping and handling activities performed to be fulfillment activities and not a separate performance obligation. 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 As of December 31, 2022 and 2021, there were no outstanding performance obligations remaining for extended warranties. The following table presents a summary of the Company’s net sales by revenue recognition method as a percentage of total net sales: % of Total Net Sales 2022 2021 2020 Point-in-Time 89 % 97 % 87 % Over Time – Input Method 11 % 3 % 13 % Total 100 % 100 % 100 % Remaining Performance Obligations As of December 31, 2022, the Company had approximately $187,000 of remaining performance obligations under a current waveguide development project, which represents the remainder of the total transaction price of approximately $896,000 under this development agreement, less revenue recognized under percentage of completion to date. The Company expects to recognize the remaining revenue related to this project in the first quarter of 2023. Revenues earned less amounts invoiced at December 31, 2022 in the amount of $269,129 are reflected as Accrued Revenues in Excess of Billings in the accompanying Consolidated Balance Sheet. In addition, the Company had no material outstanding performance obligations related to product sales, other than its standard product warranty. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net | |
Inventories, Net | Note 4 — Inventories, Net Inventories consisted of the following: December 31, December 31, 2022 2021 Purchased Parts and Components $ 10,399,527 $ 11,580,766 Work-in-Process 344,242 226,126 Finished Goods 1,941,689 1,472,534 Less: Reserve for Obsolescence (1,417,489) (1,127,444) Inventories, Net $ 11,267,969 $ 12,151,982 For the year ended December 31, 2022, the Company increased its general Reserve for Obsolescence provision by $290,405 related to some of its accessories. The total write-down and obsolescence provision for finished goods and components recorded for the years ended December 31, 2021 and 2020 was $519,950 and $1,273,835, respectively. |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets, Net | |
Fixed Assets, Net | Note 5 — Fixed Assets, Net Fixed Assets consisted of the following: December 31, December 31, 2022 2021 Tooling and Manufacturing Equipment $ 6,065,445 $ 6,612,811 Leaseholds 826,329 797,059 Computers and Purchased Software 760,256 980,561 Furniture and Equipment 2,487,650 2,661,346 10,139,680 11,051,777 Less: Accumulated Depreciation (6,261,175) (5,861,339) Fixed Assets, Net $ 3,878,505 $ 5,190,438 Total depreciation expense for fixed assets for the years ended December 31, 2022, 2021 and 2020 was $869,502, $1,306,479 and $1,904,282, respectively. 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 micro LED technology and for the custom design of a backplane, for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating to the certain deliverables and the achievement of milestones by Atomistic. $15 million of the consideration was for the design and construction of the backplane, all of which is custom to the Company. On December 16, 2022, the Company signed new agreements with Atomistic (the “Atomistic Agreements”) that superseded the prior May 12, 2022 agreements, whereby the scope for the construction of a backplane was modified and the Company obtained an additional license in an alternative self-emissive micro LED technology. As a result, |
Patents and Trademarks, Net
Patents and Trademarks, Net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Asset, Net. | |
Patents and Trademarks, Net | Note 6 — Patents and Trademarks, Net December 31, December 31, 2022 2021 Patents and Trademarks $ 3,153,358 $ 2,854,521 Less: Accumulated Amortization (933,264) (866,151) Patents and Trademarks, Net $ 2,220,094 $ 1,988,370 Total amortization expense for patents and trademarks for the years ended December 31, 2022, 2021 and 2020 was $149,700, $145,072 and $130,656, respectively. The estimated aggregate annual amortization expense for each of the next five fiscal years |
Technology Licenses, Net
Technology Licenses, Net | 12 Months Ended |
Dec. 31, 2022 | |
Technology Licenses, Net | |
Technology Licenses, Net | Note 7 — Technology Licenses, Net December 31, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions 30,000,000 1,404,750 Less: Accumulated Amortization (2,284,667) (1,053,420) Licenses, Net $ 30,158,689 $ 1,389,936 Total amortization expense related to technology licenses in the years ended December 31, 2022, 2021 and 2020 was $1,231,197, $480,945, and $393,174, respectively. As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS, which provided for an exclusive license of key micro LED technology and for the custom design and construction of a backplane chip for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating to the certain deliverables and the achievement of milestones by Atomistic. $15 million of the consideration was for the exclusive license of technology and know-how and developed technologies related to next generation micro LEDs and micro-displays. On December 16, 2022, the Company entered into the Atomistic Agreements expanding upon the original license to include certain alternative self-emissive micro LED technology in addition to the previously licensed technology. The Company recorded this additionally licensed technology asset at These intangible technology license assets are to be amortized over a ten-year period, which began on May 12, 2022 and, as modified on, December 16, 2022. During the year ended December 31, 2022, the Company paid $18,500,000 towards this commitment and recorded a total of $1,231,197 in amortization relating to these intangible assets and other licenses. Total amortization expense related to licenses in the years ending December 31, 2021 and 2020 was $480,945 and $393,174, respectively. The remaining funding commitment of $11,500,000 associated with these licenses is to be paid over the next twelve |
Intangible Asset, Net
Intangible Asset, Net | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Asset, Net. | |
Intangible Asset, Net | Note 8 — Intangible Asset, Net Goodwill Changes in the carrying amount of goodwill acquired with the Company’s acquisition of Moviynt for the year ended December 31, 2022 were as follows: Goodwill at December 31, 2021 $ — Acquisitions 1,601,400 Goodwill at December 31, 2022 $ 1,601,400 Intangible Asset, Net Information regarding purchased intangible assets acquired with the Company’s acquisition of Moviynt for the year ended December 31, 2022 was as follows: As of December 31, 2022 Gross Carrying Accumulated Net Carrying Amount Amortization Value Tradename-Trademark $ 92,600 $ (3,087) $ 89,513 IP-Technology-License 415,400 (13,847) 401,553 Customer Base 153,400 (5,113) 148,287 Non-Competes 37,200 (1,240) 35,960 Total definite-lived intangible assets $ 698,600 $ (23,287) $ 675,313 For all intangible assets acquired and purchased during the year ended December 31, 2022, Tradename, IP-Technology License, Customer Base and Non-Competes have expected useful lives Amortization expense relating to purchased intangible assets was $23,287 for the year ended December 31, 2022. As of December 31, 2022, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter was as follows: 2023 $ 139,720 2024 139,720 2025 139,720 2026 139,720 2027 116,433 $ 675,313 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets | |
Other Assets | Note 9 – Other Assets The Company’s other assets consists of the following: December 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 (375,000) (208,334) Software Development Costs, Net 500,000 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 631,143 491,923 Total Other Assets $ 1,581,143 $ 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 will be 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 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 is expected in the first quarter of 2023. Total amortization expense for capitalized software development costs for the years ended December 31, 2022, 2021 and 2020 was $166,667, $240,395 and $183,328, respectively, and are included in Cost of Sales – Products in the Consolidated Statements of Operations. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses | |
Accrued Expenses | Note 10 — Accrued Expenses Accrued expenses consisted of the following: December 31, December 31, 2022 2021 Accrued Wages and Related Costs $ 843,537 $ 683,044 Accrued Professional Services 263,800 551,220 Accrued Warranty Obligations 159,927 185,044 Other Accrued Expenses 403,275 — Total $ 1,670,539 $ 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 twelve The changes in the Company’s accrued warranty obligations for the years ended December 31, 2022, 2021 and 2020 were as follows: Accrued Warranty Obligations at December 31, 2019 $ 98,893 Reductions for Settling Warranties (193,503) Warranty Issued During Year 238,508 Accrued Warranty Obligations at December 31, 2020 143,898 Reductions for Settling Warranties (342,392) Warranty Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (408,655) Warranties Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2022 $ 159,927 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Income Taxes | Note 11 — Income Taxes The Company files U.S. federal and various state and foreign tax returns. Pre-tax earnings consisted of the following for the years ended: December 31, December 31, December 31, 2022 2021 2020 Pre-Tax Income (Loss) U.S. $ (41,356,619) $ (39,906,101) $ (18,238,773) Outside the U.S. 593,046 (471,059) 286,601 Total Pre-Tax Income (Loss) $ (40,763,573) $ (40,377,160) $ (17,952,172) The provision expense/(benefit) for income taxes for the years ended December 31, 2022, 2021 and 2020 was as follows: 2022 2021 2020 U.S. Income Taxes: Current Provision $ — $ — $ — Deferred Provision (2,957,991) (8,924,947) (3,897,293) Valuation Allowance 2,957,991 8,924,947 3,897,293 Income Taxes Outside the U.S.: Current Provision — — — Deferred Provision 109,107 (341,181) 7,916 Valuation Allowance (109,107) 341,181 (7,916) State Income Taxes: Current Provision — — — Deferred Provision 271,248 (636,401) (94,324) Valuation Allowance (271,248) 636,401 94,324 Total Provision $ — $ — $ — A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2022, 2021 and 2020 is as follows: 2022 2021 2020 % % % Federal Income Tax at Statutory Rate 21.0 21.0 21.0 State Tax Provision, Net of Federal Benefit (0.5) 1.6 0.3 Permanent Differences (0.4) — (0.4) Forgiveness of PPP Loan — — 1.8 Federal Tax Credits (0.1) 0.2 1.1 Stock Compensation (13.2) 1.5 (2.1) Foreign Tax Provision 0.1 0.6 0.3 Expiration of NOL, Credits, Charitable Contribution (0.8) (0.7) 0.1 Other 0.2 0.3 0.1 Effective Tax Rate 6.3 24.5 22.2 Change in Valuation Allowance (6.3) (24.5) (22.2) Net Effective Tax Rate — — — Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, December 31, 2022 2021 2020 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 38,655,757 $ 36,705,377 $ 29,264,829 Tax Credit Carry-forwards 4,048,872 3,924,660 3,778,001 Inventory Valuation Adjustment 350,165 290,713 847,441 Stock-Based Compensation 890,169 2,989,427 208,803 Lease Obligation Liability 204,141 240,741 323,186 Capitalized R&D 2,265,857 — — Other 702,540 425,737 368,243 Total Deferred Tax Assets 47,117,501 44,576,655 34,790,503 Deferred Tax Liabilities: Income from Foreign Operations — — 10,727 Lease Right of Use Asset 204,141 240,741 323,186 Moviynt Intangibles 3,867 Other — 4,057 27,262 Total Deferred Tax Liabilities 208,008 244,798 361,175 Net Deferred Tax Assets Before Valuation Allowance $ 46,909,493 $ 44,331,857 $ 34,429,328 Valuation Allowance (46,909,493) (44,331,857) (34,429,328) Net Deferred Tax Assets $ — $ — $ — As of December 31, 2022, the Company has approximately $178 million in US federal net operating loss (NOL) carry-forwards and $2.2 million of Japanese NOL carry-forwards. The federal NOL carry-forwards generated in tax years prior to 2018 began to expire in 2020. The federal NOL carry-forwards created in 2018 - 2022 have no expiration. The Company has state NOL carry-forwards of approximately million available in various jurisdictions in which it files that will begin to expire in 2034. The Company also has approximately million of federal and state credit carry-forwards. The federal and state credit carry-forwards began to expire during 2018. Utilization of the NOL carry-forwards may be subject to an annual limitation in the case of sufficient equity ownership changes under Section 382 of the tax law or the carry-forwards may expire unutilized. As a result of the assessment of the FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109), the Company has no unrecognized tax benefits. The Company’s U.S. federal and state tax returns for the years 2018 through 2021 remain subject to examination by the respective tax authorities. FASB ASC 740 (Prior Authoritative Literature: SFAS No. 109, Accounting for Income Taxes), requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100% valuation allowance has been recorded to fully offset any benefit associated with the net deferred tax assets, for which realization is not considered more likely than not to occur. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Capital Stock | |
Capital Stock | Note 12 — Capital Stock Preferred stock The Board of Directors are authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other special rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of December 31, 2022 and December 31, 2021. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were no shares of Series A Preferred Stock issued and outstanding on December 31, 2022 and 2021. On January 28, 2021, Intel Corporation (“Intel”) (which was the holder of all of the outstanding shares of Series A Preferred Stock) converted all of its 49,626 shares of Series A Preferred Stock into 4,962,600 shares of common stock and the shares of Series A Preferred Stock have been retired and cannot be reissued. In connection with the foregoing, Intel and the Company entered into an agreement pursuant to which Intel agreed to accept $10,000,000 in full payment of all accrued Series A Preferred Stock dividends in the approximate amount of $10,800,000. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001 as of December 31, 2022, and December 31, 2021. There were 63,783,779 shares of common stock issued and 63,319,107 shares of common stock outstanding as of December 31, 2022 and 63,672,268 shares of common stock issued On March 2, 2022, our Board of Directors approved the repurchase by the Company of up to an aggregate of $25 million of our common stock by open market or privately negotiated transactions under the Share Buyback Program. This program is in effect for one year , does not obligate the Company to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Company’s sole discretion. During the year ended December 31, 2022, the Company repurchased 464,672 shares of our common stock at an average cost of $4.32 per share. As of December 31, 2022, 464,672 shares of our common stock were held in treasury. On March 25, 2021, the Company entered into an underwriting agreement with BTIG, LLC for the sale of the Company’s common stock in an underwritten public offering at a public offering price of $20.50 per share. The Company closed on this public offering (including the full exercise of the over-allotment option granted to the underwriters), receiving total gross proceeds of $97,750,007 from the sale of 4,768,293 shares. The Company received net proceeds after the underwriting discount and issuance costs and expenses of $91,613,587. In connection with the Atomistic Agreements, the Company will, upon certain deliverables and the achievement of milestones contained in the Atomistic Agreements, be committed to pay $2,500,000 and to issue a minimum of 1,750,000 common shares of Vuzix to the stockholders of Atomistic (as a portion of the consideration for certain shares of Atomistic) which would result in Vuzix owning Series A Preferred shares in Atomistic that could ultimately be converted into ordinary shares of Atomistic, with Atomistic becoming a subsidiary of the Company, and Vuzix ultimately owning 100% of Atomistic. The share issuances by the Company are expected to be issued over the next 6 to 24 months. In the event the fair market value of Vuzix stock, which is determined based upon the trailing 10-day VWAP of the Company’s common shares, is between a floor of $8.00 and a ceiling of $13.00, Vuzix may opt, at its sole discretion, to pay any fair market valuation shortfall with up to 1,093,754 additional Vuzix common shares or cash to Atomistic shareholders. 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. This could result in the issuance of an additional 291,346 to 473,438 shares of the Company’s common stock when that valuation target is exceeded. None of these share commitments have been issued to date. |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2022 | |
Stock Warrants | |
Stock Warrants | Note 13 — Stock Warrants The following table shows the various changes in warrants for the years ended: December 31, December 31, December 31, 2022 2021 2020 Warrants Outstanding at: — 7,276,928 6,512,516 Exercised During the Period — (7,276,928) (2,882,647) Issued During the Period — — 3,647,059 Warrants Outstanding at: — — 7,276,928 During the year ended December 31, 2021, a total of 7,276,928 warrants were exercised on a cash basis resulting in the issuance of 7,276,928 shares of common stock and proceeds of $34,715,728. During the year ended December 31, 2020, a total of 2,882,647 warrants were exercised on a cash basis resulting in the issuance of 2,882,647 shares of common stock and proceeds of $14,128,527. As of December 31, 2022, there were no outstanding warrants remaining. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 14 — Stock-Based Compensation The Company has the following Stock Option Plans (“Plans”) that allow for the granting of both incentive stock options or ISOs, which can result in potentially favorable tax treatment to the participant, and non-statutory stock options. The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) was approved by the stockholders of the Company on June 26, 2014. The Company no longer issues any options under its prior 2009 Plan. The 2014 Plan has an “evergreen provision”, under which the maximum number of shares of common stock that may be issued under the 2014 Plan was approved by the Company’s stockholders to increase the number of shares available for issuance thereunder to 20% of the outstanding shares of common stock. As of December 31, 2022, the authorized shares of common stock under the 2014 Plan, as amended, were 12,663,821. The exercise price per share subject to an option is determined by the administrator, but in the case of an ISO must not be less than the fair market value of a share of our common stock on the date of grant and in the case of a non-statutory stock option must not be less than 100% of the fair market value of a share of our common stock on the date of grant. Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, performance awards of stock and/or cash, and stock awards of restricted stock. Options issued or outstanding under the Stock Options Plans are as follows: 2009 2014 Plan Plan Total Outstanding or Exercised as of December 31, 2020 85,498 2,547,677 2,633,175 Available for future issuance under plan — 6,583,033 6,583,033 Total authorized by plan 85,498 9,130,710 9,216,208 Outstanding or Exercised as of December 31, 2021 — 11,184,450 11,184,450 Available for future issuance under plan — 1,550,004 1,550,004 Totals authorized by plan — 12,734,454 12,734,454 Outstanding or Exercised as of December 31, 2022 — 11,168,061 11,168,061 Available for future issuance under plan — 1,495,760 1,495,760 Totals authorized by plan — 12,663,821 12,663,821 The 2014 Plan gives the Board of Directors of the Company the ability to determine vesting periods for all stock incentives granted under the 2014 Plan and allows option terms to be up to ten years from the original grant date. Employees’ incentive stock options typically vest at a minimum rate of 25% per year over a four-year period, commencing on the date of grant. The following table summarizes stock option activity related to the Company’s standard employee incentive plan, excluding options awarded under the Long-term Incentive Plan (LTIP), for the years ended December 31, 2022, 2021 and 2020: Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2019 1,383,591 $ 4.77 6.25 Granted 1,481,000 1.66 Exercised (82,083) 4.67 Expired or Forfeited (149,333) 3.68 Outstanding at December 31, 2020 2,633,175 $ 3.09 6.53 Granted 1,100,500 17.23 Exercised (739,956) 3.36 Expired or Forfeited (170,085) 8.58 Outstanding at December 31, 2021 2,823,634 $ 7.67 7.95 Granted 442,000 5.45 Exercised (145,185) 2.56 Expired or Forfeited (314,776) 9.27 Outstanding at December 31, 2022 2,805,673 $ 7.80 7.28 As of December 31, 2022, there were 1,493,707 options that were fully-vested and exercisable at a weighted average exercise price of $6.88 per share. The weighted average remaining contractual term on the vested options is 6.3 years. The unvested balance of 1,311,966 options as of December 31, 2022, are exercisable at a weighted average exercise price of $8.83 per share. The weighted average remaining contractual term on the unvested options is 8.4 years. As of December 31, 2021, there were 1,069,639 options that were fully-vested and exercisable at a weighted average exercise price of $5.70 per share. The weighted average remaining contractual term on the vested options is 6.6 years. The unvested balance of 1,753,995 options as of December 31, 2021, are exercisable at a weighted average exercise price of $9.62 per share. The weighted average remaining contractual term on the unvested options is 8.8 years. As of December 31, 2020, there were 1,251,241 options that were fully-vested and exercisable at a weighted average exercise price of $4.17 per share. The weighted average remaining contractual term on the vested options is 4.5 years. The unvested balance of 1,381,934 options as of December 31, 2020 were exercisable at a weighted average exercise price of $2.16 per share. The weighted average remaining contractual term on the vested options was 9.3 years. The aggregate intrinsic value of the options exercised during the year ended December 31, 2022, 2021 and 2020 was approximately $14,732,088, $13,697,906 and $869,177, respectively. The aggregate intrinsic value of the options outstanding as of December 31, 2022, 2021 and 2020 was approximately $2,093,164, $9,314,887 and 16,444,695, respectively. The Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. We have never paid cash dividends on our common stock and do not anticipate paying cash dividends on our common stock in the foreseeable future. Therefore, the assumed expected dividend yield is zero. The following summary table shows the assumptions used to compute the fair value of stock options granted, excluding LTIP, during 2022, 2021 and 2020 and their estimated value: December 31, 2022 2021 2020 Assumptions for Black-Scholes: Expected term in years 6.1 6.1 to 6.5 6.2 to 6.6 Volatility 85.44% to 87.09 % 82.8% to 86.0 % 73.3% to 76.8 % Risk-free interest rate 2.18% to 3.95 % 0.96% to 1.25 % 0.41% to 0.55 % Expected annual dividends None None None Value of options granted: Number of options granted 442,000 1,100,500 1,481,000 Weighted average fair value per share $ 4.04 $ 12.40 $ 1.08 Fair value of options granted $ 1,783,710 $ 13,642,976 $ 1,602,267 Under FASB ASC Topic 718, “Compensation – Stock Compensation”, the Company has elected to account for forfeitures as they occur. Unrecognized stock-based compensation expense was $8,295,237 as of December 31, 2022, relating to a total of 1,311,966 unvested stock options under the Company’s stock option plans. This stock-based compensation expense is expected to be recognized over a weighted average period of approximately 2.5 years. During the year ended December 31, 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 unamortized portion is included in Prepaid Expenses and Other Assets on our consolidated balance sheet. The fair market value of these awards is expensed over twelve (12) months, beginning on July 1, 2022. During the year ended December 31, 2022, the Company issued 200,000 shares of common stock to its 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, which began June 15, 2022. For the years ended December 31, 2022, 2021 and 2020, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $4,645,026, $4,047,444, and $2,805,842, respectively. |
Long-term Incentive Plan
Long-term Incentive Plan | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Incentive Plan | |
Long-term Incentive Plan | Note 15 – 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 years ended December 31, 2022 and 2021, the Company recorded non-cash stock-based compensation expense of $11,130,527 and $13,255,388, respectively, for options that vested or are probable to vest. There was no stock-based compensation expense related to the Company’s LTIP in the year ended December 31, 2020. The fair value of option grants was calculated using a Monte Carlo simulation for the equity market capitalization tranches and the Black-Scholes-Merton option pricing method for the operational milestone tranches. As of December 31, 2022, we had $17,209,931 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 three The unvested remaining equity market 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 December 31, 2022, 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 |
Right-of-Use Assets and Liabili
Right-of-Use Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-Use Assets and Liabilities | |
Right-of-Use Assets and Liabilities | Note 16 — Right-of-Use Assets and Liabilities The Company has signed lease agreements, with the largest being for its office and manufacturing facility in the West Henrietta, New York area under an operating lease that commenced October 3, 2015, and was set to expire on October 3, 2020. This lease has an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed to lease rates. On June 25, 2020, the Company exercised the first of two renewal terms, extending our current lease term to January 31, 2024. In October 2022, we leased an additional 12,000 square feet for our new waveguide manufacturing facility adjacent to our existing facility in West Henrietta, New York. This lease has an original three-year term, expiring on November 30, 2025, with an option by the Company to renew for two additional one-year terms at pre-agreed to lease rates. This lease commenced on December 1, 2022, and monthly base rent lease payments are $9,503 plus additional rent of $2,587. Operating lease costs under our operating leases totaled $659,045, $630,085 and $559,975 for the years ended December 31, 2022, 2021 and 2020, respectively. Certain leases provide for increases in future minimum annual rental payments as defined in the lease agreements. The leases generally also include real estate taxes and common area maintenance charges in the annual rental payments. Short-term leases are leases having a term of twelve (12) months or less. The Company recognizes short-term leases on an as-incurred basis and does not record a related lease asset or liability for such leases. As none of our leases provide an implicit interest rate, we use our incremental borrowing rate to determine our discount rate at lease inception based upon the information available at commencement in determining the present value of lease payments. As of December 31, 2022, the weighted average discount rate was 7.1% and the weighted average remaining lease term was 1.8 years. Future lease payments under operating leases as of December 31, 2022 were as follows: 2023 $ 697,651 2024 191,120 2025 132,982 Total Future Lease Payments 1,021,753 Less: Imputed Interest (65,588) Total Lease Liability Balance $ 956,165 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans | |
Employee Benefit Plans | Note 17 — Employee Benefit Plans The Company has a Section 401(k) Savings Plan which covers employees who meet certain age and length of service requirements. Effective July 1, 2018, the Company’s Plan was amended to include a 100% match by the Company on all eligible employee salary deferrals. The Company’s matching contribution is limited to 3% of covered employee’s annual salary. Total 401(k) matching expense for the years ended December 31, 2022, 2021 and 2020 totaled $262,726, $280,660 and $148,131, respectively. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2022 | |
Litigation | |
Litigation | Note 18 — Litigation We are not currently involved in any actual or pending legal proceedings or litigation that we consider to be material, and we are not aware of any such material proceedings contemplated by or against us or involving our property. |
Geographic and Other Financial
Geographic and Other Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Geographic and Other Financial Information (Unaudited) | |
Geographic and Other Financial Information (Unaudited) | Note 19 — Geographic and Other Financial Information (Unaudited) Geographic Financial Information (Unaudited) Geographical revenue information, based on ship-to destination of the customers for the three years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): By Continent and Region: Fiscal Year 2022 2021 2020 Revenue % of Total Revenue % of Total Revenue % of Total North America $ 4,738 40 % $ 5,003 38 % $ 4,531 40 % Europe 3,532 30 % 4,683 36 % 3,290 28 % Asia-Pacific 3,411 29 % 2,960 22 % 3,383 29 % Others 155 1 % 519 4 % 377 3 % Total Revenues $ 11,836 100 % $ 13,165 100 % $ 11,581 100 % By Country: Fiscal Year 2022 2021 2020 Revenue % of Total Revenue % of Total Revenue % of Total US $ 4,592 39 % $ 4,767 36 % $ 4,364 38 % Japan 1,735 15 % 2,078 16 % 2,502 22 % Netherlands 1,508 13 % 1,052 8 % 631 5 % Others 4,001 33 % 5,268 40 % 4,084 34 % Total Revenues $ 11,836 100 % $ 13,165 100 % $ 11,581 100 % Countries listed in the above table were those with revenues greater than 10% for the year ended December 31, 2022. The Company does not maintain significant amounts of long-lived assets outside of the United States. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | Note 20 — Quarterly Financial Information (Unaudited) The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2022 December 31, September 30, June 30, March 31, Revenue $ 2,898 $ 3,427 $ 3,008 $ 2,503 Gross profit (loss) (126) 868 262 479 Net loss (10,759) (9,477) (10,022) (10,506) Net loss per share, basic and diluted (0.17) (0.15) (0.16) (0.16) Net loss attributable to common stockholders (10,759) (9,477) (10,022) (10,506) Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 3,314 $ 3,019 $ 2,917 $ 3,915 Gross profit (12) 363 359 860 Net loss (11,493) (10,488) (9,245) (9,151) Net loss per share, basic and diluted (0.17) (0.17) (0.15) (0.17) Net loss attributable to common stockholders (11,493) (10,488) (9,245) (9,151) Fiscal Year 2020 December 31, September 30, June 30, March 31, Revenue $ 4,233 $ 2,779 $ 3,037 $ 1,532 Gross profit 371 16 464 (252) Net loss (3,590) (4,761) (4,239) (5,362) Net loss per share, basic and diluted (0.09) (0.13) (0.13) (0.18) Net loss attributable to common stockholders (4,120) (5,281) (4,746) (5,861) |
Schedule II -Valuation And Qual
Schedule II -Valuation And Qualification Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Valuation and Qualifying Accounts | |
Schedule II - Valuation and Qualifying Accounts | Schedule II — Valuation and Qualifying Accounts (in thousands) Balance at Beginning of Charged to Balance at End Description Period Expenses Deductions of Period For the Year Ended December 31, 2020 Allowances deducted from assets Doubtful Accounts $ — $ — $ — $ — Inventory 4,788 1,274 (2,176) (a) 3,886 Total allowances deducted from assets $ 4,788 $ 1,274 $ (2,176) $ 3,886 For the Year Ended December 31, 2021 Allowances deducted from assets Doubtful Accounts $ — $ — $ — $ — Inventory 3,886 520 (3,279) (b) 1,127 Total allowances deducted from assets $ 3,886 $ 520 $ (3,279) $ 1,127 For the Year Ended December 31, 2022 Allowances deducted from assets Doubtful Accounts $ — $ — $ — $ — Inventory 1,127 290 — 1,417 Total allowances deducted from assets $ 1,127 $ 290 $ — $ 1,417 (a) Deductions in 2020 primarily related to the disposal of raw components related to the discontinuance of production of our original M300, all of which was fully provisioned for as of December 31, 2019. (b) Deductions in 2021 primarily related to the disposal of finished goods related to the discontinuance of sales and marketing activities related to our M300 series products, which had been previously provisioned for. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Operations | Operations Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in West Henrietta, New York (a suburb of Rochester). We are engaged in the design, manufacture, marketing and sale of augmented reality wearable display and computing devices also referred to as head mounted displays (or HMDs, but also known as near-eye displays), in the form of Smart Glasses and Augmented Reality (AR) glasses. Our AR wearable display devices are worn like eyeglasses or attach to a head worn mount. These devices typically include cameras, sensors, and a computer that enable the user to view, record and interact with video and digital content, such as computer data, the internet, social media or entertainment applications. Our wearable display products integrate micro-display technology with our advanced optics to produce compact high-resolution display engines, less than half an inch diagonally, which when viewed through our smart glasses products create virtual images that appear comparable in size to that of a computer monitor or a large-screen television. The wearable display products we produce can be used for a variety of enterprise, commercial and medical uses and applications, including AR for on-the-go users and as mobile displays and remote service support. Our products are available with varying features and are offered as monocular and binocular display systems. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Vuzix (Europe) Limited and Moviynt, Inc. All significant inter-company transactions have been eliminated. |
Business Acquisitions | Business Acquisitions The Company applied the acquisition method of accounting for business acquisitions, as described in further detail in Note 2. Under the acquisition method, identifiable assets acquired, liabilities assumed and consideration transferred are measured at their acquisition-date fair value. The Company used various income methods to determine the fair values, described in further detail in Note 2. We relied upon the use of reports from third-party valuation specialists to assist in the estimation of fair values. Purchase price allocations are subject to revision within the measurement period, not to exceed one year from the date of acquisition. Costs to acquire a business may include, but are not limited to, fees for accounting, legal and valuation services, and are expensed as incurred in the Consolidated Statements of Operations. |
Variable Interest Entities | Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. Each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 5, 7 and 12. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE is not included in our consolidated financial statements. We account for this investment as a technology license. The maximum exposure of this unconsolidated VIEs is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE is our capital investment in them. The carrying value and maximum exposure |
Segment Data, Geographic Information and Significant Customers | Segment Data, Geographic Information and Significant Customers The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product and engineering services revenue and material engineering services costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 19 — Geographic and Other Financial Information (Unaudited). |
Foreign Currency Transactions | Foreign Currency Transactions The Company considers the US dollar as the functional currency of the Company’s United Kingdom subsidiary. The Company’s United Kingdom subsidiary transacts in Euros and British pounds. All transactions in foreign currencies are recorded in U.S. dollars at the then current exchange rate(s). Upon settlement of the underlying transaction, all amounts are re-measured to U.S. dollars at the current exchange rate on date of settlement. All unsettled foreign currency transactions that remain in accounts receivable and trade account payables are re-measured to U.S. dollars at the period-end exchange rates. All re-measurement gains and losses are recorded in the current period net income. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable, unearned revenue, accrued expenses, and income and other taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. |
Accounts Receivable | Accounts Receivable The Company carries its trade accounts receivable at the invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter-end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at-risk receivables. The allowance for doubtful accounts as of December 31, 2022, and 2021 was nil. The Company does not accrue interest on any past due accounts receivable unless such receivable goes into collection. |
Reclassification of Prior Year Presentation Policy | Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year’s presentation. These reclassifications had no effect on the reported results of operations. An adjustment has been made to the Consolidated Statements of Operations for the years ended December 31, 2021 and 2020 to reclassify depreciation expense related to our manufacturing operations from the amounts of reported depreciation and amortization expenses originally included in Operating Expenses. This change in classification does not affect previously reported Net Loss or reported Cash Flows Used in Operating Activities in the Consolidated Statements of Cash Flows or Consolidated Balance Sheets. The below table is a summary of the impact to these reclassifications: For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Condensed Statement of Operations As Previously Presented Reclassification Revised As Previously Presented Reclassification Revised Total Sales $ 13,164,933 $ — $ 13,164,933 $ 11,581,496 $ — $ 11,581,496 Total Cost of Sales 10,714,088 882,355 11,596,443 9,653,887 1,329,651 10,983,538 Gross Profit 2,450,845 (882,355) 1,568,490 1,927,609 (1,329,651) 597,958 Operating Expenses: Research and Development 11,674,954 11,674,954 7,568,074 7,568,074 Selling and Marketing 6,118,929 6,118,929 4,039,772 4,039,772 General and Administrative 22,502,833 22,502,833 6,915,213 6,915,213 Depreciation and Amortization 1,870,459 (882,355) 988,104 2,458,482 (1,329,651) 1,128,831 Loss on Fixed Asset Disposal 183,614 183,614 — — Impairment of Patents and Trademarks 80,163 80,163 73,532 73,532 Total Operating Expenses 42,430,952 (882,355) 41,548,597 21,055,073 (1,329,651) 19,725,422 Loss From Operations (39,980,107) — (39,980,107) (19,127,464) — (19,127,464) Total Other (Expense) Income, Net (397,053) (397,053) 1,175,292 1,175,292 Net Loss $ (40,377,160) $ — $ (40,377,160) $ (17,952,172) $ — $ (17,952,172) |
Customer and Supplier Concentrations | Customer and Supplier Concentrations One customer represented 14% of total product revenue and two customers represented 48% and 39%, respectively, of engineering services revenue for the year ended December 31, 2022. One customer represented 10% of total product revenue and four customers represented 39%, 28%, 16% and 12%, respectively, of our engineering services revenue for the year ended December 31, 2021. No one customer represented more than 10% of total product revenue and two customers represented 48% and 26%, respectively, of our engineering services revenue for the year ended December 31, 2020. One customer represented 26% of accounts receivable at December 31, 2022. Three customers represented 27%, 20% and 10%, respectively, of accounts receivable at December 31, 2021. Two customers represented 21% and 14%, respectively, of accounts receivable at December 31, 2020. One third-party vendor represented 15% of purchases for the year ended December 31, 2022. As of December 31, 2022, the net amount due to this vendor was $478,382. Two third-party vendors represented 38% and 24%, respectively, of material purchases for the year ended December 31, 2021. As of December 31, 2021, the net amount due to these vendors was $504,073. |
Accrued Project Revenue | Accrued Project Revenue The Company carries accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project less amounts invoiced, if any. As of December 31, 2022 there was $269,129 in accrued project revenue and nil as of December 31, 2021 and 2020. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow-moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from Contracts with Customers under FASB ASC Topic 606, "Revenue from Contracts with Customers", as of January 1, 2018. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales as performance obligations are satisfied and transfer of control and ownership to the customer has occurred, typically upon physical shipment. Revenue is recognized in the amount that the Company expects to receive in exchange from the sale of our products. FOB shipping point is our standard shipping term and revenue is recognized as our products ship to customers, as control and ownership are transferred at this time. All of our standard product sales include a 30-day money back guarantee and expected returns are estimated at each reporting period date, and a portion of revenue is deferred for all estimated returns. As of December 31, 2022 and 2021, unearned revenue consisted of deferred revenue associated with our expected returns were immaterial. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. |
Unearned Revenue | Unearned Revenue These amounts represent deferred revenue against our expected product sales returns for all December 2022 and 2021 products sales that are subject to the Company’s 30-day money back guarantee return policy. |
Cost of Product Sales | Cost of Product Sales Cost of product sales includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing facility and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. Depreciation of manufacturing tools and equipment and amortization of software development costs are included in our cost of product sales. The cost of product sales can fluctuate significantly from period to period, depending upon the product mix and volume, the level of manufacturing overhead expense and the volume of direct cost of materials. |
Cost of Engineering Services Sales | Cost of Engineering Services Sales Cost of engineering services revenues includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in performing under the contract. Direct costs also include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of engineering sales is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. |
Patents and Trademarks | Patents and Trademarks The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written-off and expensed in the fiscal period where the application is abandoned or discontinued. Ongoing maintenance and legal fees for issued patents and trademarks are expensed as incurred. |
Software Development Costs | Software Development Costs The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management or of purchased software solutions when placed into service. Such costs are accumulated and capitalized. Projects can take several years to complete. Unsuccessful or discontinued software projects are written-off and expensed in the fiscal period when the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of product sales over the estimated life of the products, which currently is estimated at three years using a straight-line basis. As of December 31, 2022, 2021 and 2020, we had $500,000, $541,666 and $458,333, respectively, of net software development costs included in Other Assets. For the years ended December 31, 2022, 2021 and 2020, there was nil in impairment of software development costs. |
Licenses | Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the expected life of the license. In some cases, future royalties are subject to annual limits. |
Long-Lived Assets, Goodwill and Other Acquired Intangible Assets | Long-Lived Assets, Goodwill and Other Acquired Intangible Assets The Company at least annually assesses all of its long-lived assets and intangibles, excluding goodwill, for impairment and when events or circumstances indicate their carrying amounts may not be recoverable. For the years ended December 31, 2022, 2021 and 2020, there was an impairment charge of $97,675, $80,163 and $73,532, respectively, to Patents and Trademarks. For the years ended December 31, 2022 and 2021, we recorded a loss on fixed asset disposal of $35,350 and $183,614, respectively, upon the retirement of certain tooling and manufacturing equipment assets no longer in use. No loss on fixed asset disposal charges on tooling and equipment were recorded in 2020. We test our goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. There was no goodwill impairment recognized for the periods presented. Intangible assets with definite lives are amortized over their estimated useful lives on a straight-line basis over a five-year period. |
Research and Development | Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third-party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. |
Provision for Future Warranty Costs | Provision for Future Warranty Costs The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly re-evaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based upon historical experience of warranty claims and costs. |
Advertising | Advertising Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2022, 2021 and 2020 was $1,668,910, $1,263,897 and $974,461, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. |
Net Loss Per Share | Net Loss Per Share Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2022, 2021 and 2020, all outstanding instruments would be anti-dilutive. As of December 31, 2022, 2021 and 2020, there were 8,589,673, 8,606,062 and 14,872,703 common stock share equivalents, respectively, that were potentially issuable under stock options, conversion of preferred shares (excluding accrued dividends), and stock warrants that could potentially dilute basic earnings per share in the future. |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company accounts for stock-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation - Stock Compensation,” which requires that compensation expense be recognized in the consolidated financial statements for stock-based awards based on the grant date fair value. For stock option awards, the Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. For common stock awards, the Company uses the fair market value of our common stock on the date of each stock-based award based on the market price of the Company’s common shares and the expense related to these awards is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock awards and stock option grants for the years ended December 31, 2022, 2021 and 2020 was $4,645,026, $4,047,444 and $2,805,842, respectively, excluding awards under the Company’s Long-term Incentive Plan (LTIP). The Company issues new shares upon stock option exercises. For stock options awarded under the Company's LTIP, options vest only upon the achievement of certain equity market conditions or performance-based milestones. The fair value of options granted under this program were calculated by using a Monte Carlo simulation for the equity market condition tranches and the Black-Scholes-Merton option pricing method on the performance-based tranches. Stock-based compensation expense associated with the Company's LTIP for the years ended December 31, 2022 and 2021 was $11,130,527 and $13,255,388, respectively, and nil for the year ended December 31, 2020. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Our lease agreements generally contain lease and non-lease components. Historically, non-lease components such as utilities have been immaterial. Payments under our lease arrangements are primarily fixed. Lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company has made an accounting policy election to account for lease and non-lease components in its contracts as a single lease component for its real estate leases. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate, because the interest rate implicit in our leases is not readily determinable. Our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. As of December 31, 2022, all of our leases are considered operating leases. Operating lease right-of-use assets and liabilities were included on our Consolidated Balance Sheets beginning January 1, 2019. The Company does not have any finance leases as of December 31, 2022. |
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 is currently evaluating the guidance and its impact on the financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Significant Accounting Policies | |
Reclassification of prior year presentation | For the Year Ended December 31, 2021 For the Year Ended December 31, 2020 Condensed Statement of Operations As Previously Presented Reclassification Revised As Previously Presented Reclassification Revised Total Sales $ 13,164,933 $ — $ 13,164,933 $ 11,581,496 $ — $ 11,581,496 Total Cost of Sales 10,714,088 882,355 11,596,443 9,653,887 1,329,651 10,983,538 Gross Profit 2,450,845 (882,355) 1,568,490 1,927,609 (1,329,651) 597,958 Operating Expenses: Research and Development 11,674,954 11,674,954 7,568,074 7,568,074 Selling and Marketing 6,118,929 6,118,929 4,039,772 4,039,772 General and Administrative 22,502,833 22,502,833 6,915,213 6,915,213 Depreciation and Amortization 1,870,459 (882,355) 988,104 2,458,482 (1,329,651) 1,128,831 Loss on Fixed Asset Disposal 183,614 183,614 — — Impairment of Patents and Trademarks 80,163 80,163 73,532 73,532 Total Operating Expenses 42,430,952 (882,355) 41,548,597 21,055,073 (1,329,651) 19,725,422 Loss From Operations (39,980,107) — (39,980,107) (19,127,464) — (19,127,464) Total Other (Expense) Income, Net (397,053) (397,053) 1,175,292 1,175,292 Net Loss $ (40,377,160) $ — $ (40,377,160) $ (17,952,172) $ — $ (17,952,172) |
Schedule of property and equipment estimated useful life | Computers and Purchased Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Acquisition | |
Schedule of net assets acquired | The following table represents the preliminary assets acquired and liabilities assumed on October 20, 2022: Cash $ 132,233 Accounts Receivable 44,820 Goodwill 1,601,400 Other Intangible Assets 698,600 Accrued Expenses (7,479) Net Assets Acquired $ 2,469,574 |
Schedule of estimated fair value and annual amortization for each of the identifiable intangible assets acquired | Estimated Fair Amortization Period Annual Amortization Value (Years) Year 1 Year 2 Year 3 Year 4 Year 5 Tradename-Trademark $ 92,600 5 $ 18,520 $ 18,520 $ 18,520 $ 18,520 $ 15,433 IP-Technology-License 415,400 5 83,080 83,080 83,080 83,080 69,233 Customer Base 153,400 5 30,680 30,680 30,680 30,680 25,567 Non-Competes 37,200 5 7,440 7,440 7,440 7,440 6,200 Total definite-lived intangible assets $ 698,600 $ 139,720 $ 139,720 $ 139,720 $ 139,720 $ 116,433 |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | For the Years Ended December 31, 2022 2021 2020 Revenues Products Sales $ 10,505,763 $ 12,784,600 $ 10,081,209 Engineering Services 1,330,119 380,333 1,500,287 Total Revenue $ 11,835,882 $ 13,164,933 $ 11,581,496 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | % of Total Net Sales 2022 2021 2020 Point-in-Time 89 % 97 % 87 % Over Time – Input Method 11 % 3 % 13 % Total 100 % 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories, Net | |
Schedule of Inventories | December 31, December 31, 2022 2021 Purchased Parts and Components $ 10,399,527 $ 11,580,766 Work-in-Process 344,242 226,126 Finished Goods 1,941,689 1,472,534 Less: Reserve for Obsolescence (1,417,489) (1,127,444) Inventories, Net $ 11,267,969 $ 12,151,982 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets, Net | |
Schedule of Fixed Assets | December 31, December 31, 2022 2021 Tooling and Manufacturing Equipment $ 6,065,445 $ 6,612,811 Leaseholds 826,329 797,059 Computers and Purchased Software 760,256 980,561 Furniture and Equipment 2,487,650 2,661,346 10,139,680 11,051,777 Less: Accumulated Depreciation (6,261,175) (5,861,339) Fixed Assets, Net $ 3,878,505 $ 5,190,438 |
Patents and Trademarks, Net (Ta
Patents and Trademarks, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Finite-Lived Intangible Assets | As of December 31, 2022 Gross Carrying Accumulated Net Carrying Amount Amortization Value Tradename-Trademark $ 92,600 $ (3,087) $ 89,513 IP-Technology-License 415,400 (13,847) 401,553 Customer Base 153,400 (5,113) 148,287 Non-Competes 37,200 (1,240) 35,960 Total definite-lived intangible assets $ 698,600 $ (23,287) $ 675,313 |
Patents and Trademarks [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2022 2021 Patents and Trademarks $ 3,153,358 $ 2,854,521 Less: Accumulated Amortization (933,264) (866,151) Patents and Trademarks, Net $ 2,220,094 $ 1,988,370 |
Technology Licenses, Net (Table
Technology Licenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Finite-Lived Intangible Assets | As of December 31, 2022 Gross Carrying Accumulated Net Carrying Amount Amortization Value Tradename-Trademark $ 92,600 $ (3,087) $ 89,513 IP-Technology-License 415,400 (13,847) 401,553 Customer Base 153,400 (5,113) 148,287 Non-Competes 37,200 (1,240) 35,960 Total definite-lived intangible assets $ 698,600 $ (23,287) $ 675,313 |
Licenses [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, 2022 2021 Licenses $ 2,443,356 $ 1,038,606 Additions 30,000,000 1,404,750 Less: Accumulated Amortization (2,284,667) (1,053,420) Licenses, Net $ 30,158,689 $ 1,389,936 |
Intangible Asset, Net (Tables)
Intangible Asset, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Asset, Net. | |
Schedule of changes in carrying value of goodwill | Goodwill at December 31, 2021 $ — Acquisitions 1,601,400 Goodwill at December 31, 2022 $ 1,601,400 |
Schedule of Finite-Lived Intangible Assets | As of December 31, 2022 Gross Carrying Accumulated Net Carrying Amount Amortization Value Tradename-Trademark $ 92,600 $ (3,087) $ 89,513 IP-Technology-License 415,400 (13,847) 401,553 Customer Base 153,400 (5,113) 148,287 Non-Competes 37,200 (1,240) 35,960 Total definite-lived intangible assets $ 698,600 $ (23,287) $ 675,313 |
Schedule of future amortization expense | 2023 $ 139,720 2024 139,720 2025 139,720 2026 139,720 2027 116,433 $ 675,313 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Assets | |
Schedule of other assets | December 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 (375,000) (208,334) Software Development Costs, Net 500,000 541,666 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 631,143 491,923 Total Other Assets $ 1,581,143 $ 1,483,589 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Expenses | |
Schedule of Accrued Expenses | December 31, December 31, 2022 2021 Accrued Wages and Related Costs $ 843,537 $ 683,044 Accrued Professional Services 263,800 551,220 Accrued Warranty Obligations 159,927 185,044 Other Accrued Expenses 403,275 — Total $ 1,670,539 $ 1,419,308 |
Schedule of changes in accrued warranty obligations | Accrued Warranty Obligations at December 31, 2019 $ 98,893 Reductions for Settling Warranties (193,503) Warranty Issued During Year 238,508 Accrued Warranty Obligations at December 31, 2020 143,898 Reductions for Settling Warranties (342,392) Warranty Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2021 $ 185,044 Reductions for Settling Warranties (408,655) Warranties Issued During Year 383,538 Accrued Warranty Obligations at December 31, 2022 $ 159,927 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes | |
Schedule Of Pre Tax Earnings | December 31, December 31, December 31, 2022 2021 2020 Pre-Tax Income (Loss) U.S. $ (41,356,619) $ (39,906,101) $ (18,238,773) Outside the U.S. 593,046 (471,059) 286,601 Total Pre-Tax Income (Loss) $ (40,763,573) $ (40,377,160) $ (17,952,172) |
Schedule of Components of Income Tax Expense (Benefit) | 2022 2021 2020 U.S. Income Taxes: Current Provision $ — $ — $ — Deferred Provision (2,957,991) (8,924,947) (3,897,293) Valuation Allowance 2,957,991 8,924,947 3,897,293 Income Taxes Outside the U.S.: Current Provision — — — Deferred Provision 109,107 (341,181) 7,916 Valuation Allowance (109,107) 341,181 (7,916) State Income Taxes: Current Provision — — — Deferred Provision 271,248 (636,401) (94,324) Valuation Allowance (271,248) 636,401 94,324 Total Provision $ — $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | 2022 2021 2020 % % % Federal Income Tax at Statutory Rate 21.0 21.0 21.0 State Tax Provision, Net of Federal Benefit (0.5) 1.6 0.3 Permanent Differences (0.4) — (0.4) Forgiveness of PPP Loan — — 1.8 Federal Tax Credits (0.1) 0.2 1.1 Stock Compensation (13.2) 1.5 (2.1) Foreign Tax Provision 0.1 0.6 0.3 Expiration of NOL, Credits, Charitable Contribution (0.8) (0.7) 0.1 Other 0.2 0.3 0.1 Effective Tax Rate 6.3 24.5 22.2 Change in Valuation Allowance (6.3) (24.5) (22.2) Net Effective Tax Rate — — — |
Schedule of Deferred Tax Assets and Liabilities | December 31, December 31, December 31, 2022 2021 2020 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 38,655,757 $ 36,705,377 $ 29,264,829 Tax Credit Carry-forwards 4,048,872 3,924,660 3,778,001 Inventory Valuation Adjustment 350,165 290,713 847,441 Stock-Based Compensation 890,169 2,989,427 208,803 Lease Obligation Liability 204,141 240,741 323,186 Capitalized R&D 2,265,857 — — Other 702,540 425,737 368,243 Total Deferred Tax Assets 47,117,501 44,576,655 34,790,503 Deferred Tax Liabilities: Income from Foreign Operations — — 10,727 Lease Right of Use Asset 204,141 240,741 323,186 Moviynt Intangibles 3,867 Other — 4,057 27,262 Total Deferred Tax Liabilities 208,008 244,798 361,175 Net Deferred Tax Assets Before Valuation Allowance $ 46,909,493 $ 44,331,857 $ 34,429,328 Valuation Allowance (46,909,493) (44,331,857) (34,429,328) Net Deferred Tax Assets $ — $ — $ — |
Stock Warrants (Tables)
Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Warrants | |
Schedule of changes in warrants | December 31, December 31, December 31, 2022 2021 2020 Warrants Outstanding at: — 7,276,928 6,512,516 Exercised During the Period — (7,276,928) (2,882,647) Issued During the Period — — 3,647,059 Warrants Outstanding at: — — 7,276,928 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation | |
Schedule of Stock option plans | 2009 2014 Plan Plan Total Outstanding or Exercised as of December 31, 2020 85,498 2,547,677 2,633,175 Available for future issuance under plan — 6,583,033 6,583,033 Total authorized by plan 85,498 9,130,710 9,216,208 Outstanding or Exercised as of December 31, 2021 — 11,184,450 11,184,450 Available for future issuance under plan — 1,550,004 1,550,004 Totals authorized by plan — 12,734,454 12,734,454 Outstanding or Exercised as of December 31, 2022 — 11,168,061 11,168,061 Available for future issuance under plan — 1,495,760 1,495,760 Totals authorized by plan — 12,663,821 12,663,821 |
Schedule of Summary of Stock Option Activity | Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2019 1,383,591 $ 4.77 6.25 Granted 1,481,000 1.66 Exercised (82,083) 4.67 Expired or Forfeited (149,333) 3.68 Outstanding at December 31, 2020 2,633,175 $ 3.09 6.53 Granted 1,100,500 17.23 Exercised (739,956) 3.36 Expired or Forfeited (170,085) 8.58 Outstanding at December 31, 2021 2,823,634 $ 7.67 7.95 Granted 442,000 5.45 Exercised (145,185) 2.56 Expired or Forfeited (314,776) 9.27 Outstanding at December 31, 2022 2,805,673 $ 7.80 7.28 |
Summary of assumptions used to compute the fair value of stock options granted | December 31, 2022 2021 2020 Assumptions for Black-Scholes: Expected term in years 6.1 6.1 to 6.5 6.2 to 6.6 Volatility 85.44% to 87.09 % 82.8% to 86.0 % 73.3% to 76.8 % Risk-free interest rate 2.18% to 3.95 % 0.96% to 1.25 % 0.41% to 0.55 % Expected annual dividends None None None Value of options granted: Number of options granted 442,000 1,100,500 1,481,000 Weighted average fair value per share $ 4.04 $ 12.40 $ 1.08 Fair value of options granted $ 1,783,710 $ 13,642,976 $ 1,602,267 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Long-term Incentive Plan | |
Schedule of equity market and operational milestone under the long term | Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 |
Right-of-Use Assets and Liabi_2
Right-of-Use Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | 2023 $ 697,651 2024 191,120 2025 132,982 Total Future Lease Payments 1,021,753 Less: Imputed Interest (65,588) Total Lease Liability Balance $ 956,165 |
Geographic and Other Financia_2
Geographic and Other Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Geographic and Other Financial Information (Unaudited) | |
Schedule of revenue from external customers by geographic areas | Geographical revenue information, based on ship-to destination of the customers for the three years ended December 31, 2022, 2021 and 2020 is as follows (in thousands): By Continent and Region: Fiscal Year 2022 2021 2020 Revenue % of Total Revenue % of Total Revenue % of Total North America $ 4,738 40 % $ 5,003 38 % $ 4,531 40 % Europe 3,532 30 % 4,683 36 % 3,290 28 % Asia-Pacific 3,411 29 % 2,960 22 % 3,383 29 % Others 155 1 % 519 4 % 377 3 % Total Revenues $ 11,836 100 % $ 13,165 100 % $ 11,581 100 % By Country: Fiscal Year 2022 2021 2020 Revenue % of Total Revenue % of Total Revenue % of Total US $ 4,592 39 % $ 4,767 36 % $ 4,364 38 % Japan 1,735 15 % 2,078 16 % 2,502 22 % Netherlands 1,508 13 % 1,052 8 % 631 5 % Others 4,001 33 % 5,268 40 % 4,084 34 % Total Revenues $ 11,836 100 % $ 13,165 100 % $ 11,581 100 % |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information (Unaudited) | |
Schedule of quarterly financial information | The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2022 December 31, September 30, June 30, March 31, Revenue $ 2,898 $ 3,427 $ 3,008 $ 2,503 Gross profit (loss) (126) 868 262 479 Net loss (10,759) (9,477) (10,022) (10,506) Net loss per share, basic and diluted (0.17) (0.15) (0.16) (0.16) Net loss attributable to common stockholders (10,759) (9,477) (10,022) (10,506) Fiscal Year 2021 December 31, September 30, June 30, March 31, Revenue $ 3,314 $ 3,019 $ 2,917 $ 3,915 Gross profit (12) 363 359 860 Net loss (11,493) (10,488) (9,245) (9,151) Net loss per share, basic and diluted (0.17) (0.17) (0.15) (0.17) Net loss attributable to common stockholders (11,493) (10,488) (9,245) (9,151) Fiscal Year 2020 December 31, September 30, June 30, March 31, Revenue $ 4,233 $ 2,779 $ 3,037 $ 1,532 Gross profit 371 16 464 (252) Net loss (3,590) (4,761) (4,239) (5,362) Net loss per share, basic and diluted (0.09) (0.13) (0.13) (0.18) Net loss attributable to common stockholders (4,120) (5,281) (4,746) (5,861) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2022 USD ($) customer item | Dec. 31, 2021 USD ($) item customer | Dec. 31, 2020 USD ($) customer | |
Summary Of Significant Accounting Policies [Line Items] | |||
Carrying value of unconsolidated VIE | $ 132,312,550 | $ 148,467,057 | |
Maximum exposure of unconsolidated VIE | 30,000,000 | ||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 |
Number of third party vendors | item | 1 | 2 | |
Accounts Payable | $ 1,211,747 | $ 2,054,762 | |
Accrued project revenue | 269,129 | 0 | 0 |
Impairment charges | $ 97,675 | $ 80,163 | $ 73,532 |
Impairment Of Intangible Asset Finite Lived Statement Of Income Or Comprehensive Income Extensible Enumeration Not Disclosed Flag | true | true | true |
Loss on fixed asset disposal | $ (35,350) | $ (183,614) | $ 0 |
Advertising expense | $ 1,668,910 | $ 1,263,897 | $ 974,461 |
Common stock share equivalents | 8,589,673 | 8,606,062 | 14,872,703 |
Share-Based compensation excludes the long term incentive plan expense | $ 4,645,026 | $ 4,047,444 | $ 2,805,842 |
Stock-Based Compensation | 15,775,553 | 17,302,833 | 2,805,842 |
VIE | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Carrying value of unconsolidated VIE | 30,000,000 | ||
Software Development Costs | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Software impairment costs | 0 | 0 | 0 |
Development costs, net | 500,000 | 541,666 | 458,333 |
Long-term Incentive Plan 2021 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Stock-Based Compensation | 11,130,527 | 13,255,388 | $ 0 |
Third-party Vendor One and Two | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Accounts Payable | $ 504,073 | ||
Third-party Vendor One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Accounts Payable | $ 478,382 | ||
Total revenues | Sales of Engineering Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 4 | 2 | |
Total revenues | Sales of Products | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | 0 | |
Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | 3 | 2 |
Cost of Goods and Service Benchmark | Supplier Concentration Risk | Third-party Vendor One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 15% | 38% | |
Cost of Goods and Service Benchmark | Supplier Concentration Risk | Third-party Vendor Two | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 24% | ||
Minimum | Software Development Costs | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period (in years) | 3 years | ||
Trademarks and Patents | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Amortization period (in years) | 15 years | ||
One customer | Total revenues | Customer Concentration Risk | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10% | ||
One customer | Total revenues | Customer Concentration Risk | Sales of Engineering Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 48% | 39% | 48% |
One customer | Total revenues | Customer Concentration Risk | Sales of Products | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 1 | ||
Concentration Risk, Percentage | 14% | 10% | |
One customer | Accounts Receivable | Customer Concentration Risk | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 26% | 27% | 21% |
Two customers | Total revenues | Customer Concentration Risk | Sales of Engineering Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | customer | 2 | ||
Concentration Risk, Percentage | 39% | 28% | 26% |
Two customers | Accounts Receivable | Customer Concentration Risk | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 20% | 14% | |
Three customers | Total revenues | Customer Concentration Risk | Sales of Engineering Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 16% | ||
Three customers | Accounts Receivable | Customer Concentration Risk | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 10% | ||
Four customers | Total revenues | Customer Concentration Risk | Sales of Engineering Services | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Changes to Impacted Consolidated Statements of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Total Sales | $ 2,898,000 | $ 3,427,000 | $ 3,008,000 | $ 2,503,000 | $ 3,314,000 | $ 3,019,000 | $ 2,917,000 | $ 3,915,000 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 11,835,882 | $ 13,164,933 | $ 11,581,496 |
Total Cost of Sales | 10,352,756 | 11,596,443 | 10,983,538 | ||||||||||||
Gross Profit | (126,000) | 868,000 | 262,000 | 479,000 | (12,000) | 363,000 | 359,000 | 860,000 | 371,000 | 16,000 | 464,000 | (252,000) | 1,483,126 | 1,568,490 | 597,958 |
Operating Expenses: | |||||||||||||||
Research and Development | 12,676,688 | 11,674,954 | 7,568,074 | ||||||||||||
Selling and Marketing | 8,078,538 | 6,118,929 | 4,039,772 | ||||||||||||
General and Administrative | 21,038,562 | 22,502,833 | 6,915,213 | ||||||||||||
Depreciation and Amortization | 1,788,584 | 988,104 | 1,128,831 | ||||||||||||
Loss on Fixed Asset Disposal | 35,350 | 183,614 | 0 | ||||||||||||
Impairment of Patents and Trademarks | 97,675 | 80,163 | 73,532 | ||||||||||||
Total Operating Expenses | 43,715,397 | 41,548,597 | 19,725,422 | ||||||||||||
Loss From Operations | (42,232,271) | (39,980,107) | (19,127,464) | ||||||||||||
Total Other Expense, Net | 1,468,698 | (397,053) | 1,175,292 | ||||||||||||
Net Loss | $ (10,759,000) | $ (9,477,000) | $ (10,022,000) | $ (10,506,000) | $ (11,493,000) | $ (10,488,000) | $ (9,245,000) | $ (9,151,000) | $ (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (40,763,573) | $ (40,377,160) | $ (17,952,172) |
Basic Loss per Common Share | $ (0.17) | $ (0.15) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.64) | $ (0.66) | $ (0.53) |
Diluted Loss per Common Share | $ (0.17) | $ (0.15) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.64) | $ (0.66) | $ (0.53) |
As Previously Presented | |||||||||||||||
Total Sales | $ 13,164,933 | $ 11,581,496 | |||||||||||||
Total Cost of Sales | 10,714,088 | 9,653,887 | |||||||||||||
Gross Profit | 2,450,845 | 1,927,609 | |||||||||||||
Operating Expenses: | |||||||||||||||
Research and Development | 11,674,954 | 7,568,074 | |||||||||||||
Selling and Marketing | 6,118,929 | 4,039,772 | |||||||||||||
General and Administrative | 22,502,833 | 6,915,213 | |||||||||||||
Depreciation and Amortization | 1,870,459 | 2,458,482 | |||||||||||||
Loss on Fixed Asset Disposal | 183,614 | ||||||||||||||
Impairment of Patents and Trademarks | 80,163 | 73,532 | |||||||||||||
Total Operating Expenses | 42,430,952 | 21,055,073 | |||||||||||||
Loss From Operations | (39,980,107) | (19,127,464) | |||||||||||||
Total Other Expense, Net | (397,053) | 1,175,292 | |||||||||||||
Net Loss | (40,377,160) | (17,952,172) | |||||||||||||
Reclassification | |||||||||||||||
Total Cost of Sales | 882,355 | 1,329,651 | |||||||||||||
Gross Profit | (882,355) | (1,329,651) | |||||||||||||
Operating Expenses: | |||||||||||||||
Depreciation and Amortization | (882,355) | (1,329,651) | |||||||||||||
Total Operating Expenses | (882,355) | (1,329,651) | |||||||||||||
Revised | |||||||||||||||
Total Sales | 13,164,933 | 11,581,496 | |||||||||||||
Total Cost of Sales | 11,596,443 | 10,983,538 | |||||||||||||
Gross Profit | 1,568,490 | 597,958 | |||||||||||||
Operating Expenses: | |||||||||||||||
Research and Development | 11,674,954 | 7,568,074 | |||||||||||||
Selling and Marketing | 6,118,929 | 4,039,772 | |||||||||||||
General and Administrative | 22,502,833 | 6,915,213 | |||||||||||||
Depreciation and Amortization | 988,104 | 1,128,831 | |||||||||||||
Loss on Fixed Asset Disposal | 183,614 | ||||||||||||||
Impairment of Patents and Trademarks | 80,163 | 73,532 | |||||||||||||
Total Operating Expenses | 41,548,597 | 19,725,422 | |||||||||||||
Loss From Operations | (39,980,107) | (19,127,464) | |||||||||||||
Total Other Expense, Net | (397,053) | 1,175,292 | |||||||||||||
Net Loss | $ (40,377,160) | $ (17,952,172) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Property Plant And Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers and Purchased Software | |
Property, Plant and Equipment, Useful Life | 3 years |
Leaseholds | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of expected life or lease term |
Manufacturing Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Tooling | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Acquisition - Net Assets Acquir
Acquisition - Net Assets Acquired (Details) - USD ($) | Dec. 31, 2022 | Oct. 20, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,601,400 | |
Moviynt | ||
Business Acquisition [Line Items] | ||
Cash | $ 132,233 | |
Accounts Receivable | 44,820 | |
Goodwill | 1,601,400 | |
Other Intangible Assets | 698,600 | |
Accrued Expenses | (7,479) | |
Net Assets Acquired | $ 2,469,574 |
Acquisition - Estimated Fair Va
Acquisition - Estimated Fair Value and Annual Amortization for Each of the Identifiable Intangible Assets Acquired (Details) - Moviynt | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 698,600 |
Annual Amortization | |
Year 1 | 139,720 |
Year 2 | 139,720 |
Year 3 | 139,720 |
Year 4 | 139,720 |
Year 5 | 116,433 |
Tradename - Trademark | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 92,600 |
Amortization Period (Years) | 5 years |
Annual Amortization | |
Year 1 | $ 18,520 |
Year 2 | 18,520 |
Year 3 | 18,520 |
Year 4 | 18,520 |
Year 5 | 15,433 |
IP-Technology-License | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 415,400 |
Amortization Period (Years) | 5 years |
Annual Amortization | |
Year 1 | $ 83,080 |
Year 2 | 83,080 |
Year 3 | 83,080 |
Year 4 | 83,080 |
Year 5 | 69,233 |
Customer Base | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 153,400 |
Amortization Period (Years) | 5 years |
Annual Amortization | |
Year 1 | $ 30,680 |
Year 2 | 30,680 |
Year 3 | 30,680 |
Year 4 | 30,680 |
Year 5 | 25,567 |
Non-Competes | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 37,200 |
Amortization Period (Years) | 5 years |
Annual Amortization | |
Year 1 | $ 7,440 |
Year 2 | 7,440 |
Year 3 | 7,440 |
Year 4 | 7,440 |
Year 5 | $ 6,200 |
Acquisition - Additional inform
Acquisition - Additional information (Details) - Moviynt - USD ($) | 2 Months Ended | |
Oct. 20, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||
Purchase consideration | $ 2,469,574 | |
Base merger consideration | 2,300,000 | |
Net working capital adjustments, | $ 169,574 | |
Period for releasing fund from escrow | 90 days | |
Acquisition-related costs and other non-recurring expenses | $ 74,723 | |
Engineering revenue | 76,952 | |
Related cost of sales | 24,819 | |
Gross margin | $ 52,133 |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 USD ($) product | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2020 USD ($) | Jun. 30, 2020 USD ($) | Mar. 31, 2020 USD ($) | Dec. 31, 2022 USD ($) product | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Revenue | $ 2,898,000 | $ 3,427,000 | $ 3,008,000 | $ 2,503,000 | $ 3,314,000 | $ 3,019,000 | $ 2,917,000 | $ 3,915,000 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 11,835,882 | $ 13,164,933 | $ 11,581,496 |
Number of major product lines | product | 2 | 2 | |||||||||||||
Products Sales | |||||||||||||||
Revenue | $ 10,505,763 | 12,784,600 | 10,081,209 | ||||||||||||
Engineering Services | |||||||||||||||
Revenue | $ 1,330,119 | $ 380,333 | $ 1,500,287 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue Performance Obligation Percentage | 100% | 100% | 100% |
Point-in-Time | |||
Revenue Performance Obligation Percentage | 89% | 97% | 87% |
Over Time - Input Method | |||
Revenue Performance Obligation Percentage | 11% | 3% | 13% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Standard product warranty term | 12 months | |
Revenue, remaining performance obligations | $ 187,000 | |
Revenue, performance obligation, total transaction price | 896,000 | |
Accrued Revenues in Excess of Billings | $ 269,129 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Standard product warranty term | 12 months | |
Extended warranties | ||
Standard product warranty term | 12 months | |
Revenue, remaining performance obligations | $ 0 | $ 0 |
Extended warranties | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Standard product warranty term | 12 months | |
OEM products and waveguide sales | ||
Standard product warranty term | 18 months | |
OEM products and waveguide sales | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Standard product warranty term | 18 months |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventories, Net | ||
Purchased Parts and Components | $ 10,399,527 | $ 11,580,766 |
Work-in-Process | 344,242 | 226,126 |
Finished Goods | 1,941,689 | 1,472,534 |
Less: Reserve for Obsolescence | (1,417,489) | (1,127,444) |
Inventories, Net | $ 11,267,969 | $ 12,151,982 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventories, Net | |||
Increased in obsolescence reserve | $ 290,405 | ||
Inventory Reserve For Obsolescence | $ 290,405 | $ 519,950 | $ 1,273,835 |
Fixed Assets, Net - Schedule Of
Fixed Assets, Net - Schedule Of Fixed Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 10,139,680 | $ 11,051,777 |
Less: Accumulated Depreciation | (6,261,175) | (5,861,339) |
Fixed Assets, Net | 3,878,505 | 5,190,438 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 6,065,445 | 6,612,811 |
Leaseholds | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 826,329 | 797,059 |
Computers and Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 760,256 | 980,561 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 2,487,650 | $ 2,661,346 |
Fixed Assets, Net - Additional
Fixed Assets, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 16, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 12, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Depreciation and Amortization | $ 869,502 | $ 1,306,479 | $ 1,904,282 | ||
Payments to Acquire Property | $ 1,723,622 | $ 3,809,268 | $ 496,629 | ||
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] | |||||
Payments to Acquire Property | $ 5,529,120 |
Patents and Trademarks, Net - S
Patents and Trademarks, Net - Schedule Of Patents and Trademarks (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks, Net | $ 2,220,094 | $ 1,988,370 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks | 3,153,358 | 2,854,521 |
Less: Accumulated Amortization | (933,264) | (866,151) |
Patents and Trademarks, Net | $ 2,220,094 | $ 1,988,370 |
Patents and Trademarks, Net - A
Patents and Trademarks, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 97,675 | $ 80,163 | $ 73,532 |
Patents and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 149,700 | 145,072 | 130,656 |
2023 | 210,000 | ||
2024 | 210,000 | ||
2025 | 210,000 | ||
2026 | 210,000 | ||
2027 | 210,000 | ||
Impairment charges | $ 97,675 | $ 80,163 | $ 73,532 |
Technology Licenses, Net (Detai
Technology Licenses, Net (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Licenses Net [Line Items] | ||
Technology Licenses, Net | $ 30,158,689 | $ 1,389,936 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 2,443,356 | 1,038,606 |
Additions | 30,000,000 | 1,404,750 |
Less: Accumulated Amortization | (2,284,667) | (1,053,420) |
Technology Licenses, Net | $ 30,158,689 | $ 1,389,936 |
Technology Licenses, Net - Addi
Technology Licenses, Net - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 16, 2022 | May 12, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Licenses Net [Line Items] | |||||
Licensing fees commitment | $ 11,500,000 | ||||
Payment of licensing fee commitment | 18,500,000 | ||||
Amortization expense | $ 1,231,197 | ||||
Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Exclusive license agreement, total value | $ 30,000,000 | ||||
Amount allocated to technology license | $ 15,000,000 | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Atomistic SAS | Minimum | |||||
Licenses Net [Line Items] | |||||
Contractual obligation period | 12 months | ||||
Licensing agreements | |||||
Licenses Net [Line Items] | |||||
Value of shares development milestones | $ 30,000,000 | $ 1,404,750 | |||
Amortization expense | $ 1,231,197 | $ 480,945 | $ 393,174 | ||
Licensing agreements | Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Licensing fees commitment | $ 9,470,880 | ||||
Reclassification of construction in progress | 5,529,120 | ||||
Value of shares development milestones | $ 15,000,000 |
Intangible Asset, Net - Goodwil
Intangible Asset, Net - Goodwill (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Intangible Asset, Net | |
Acquisitions | $ 1,601,400 |
Ending Balance | $ 1,601,400 |
Intangible Asset, Net - Intangi
Intangible Asset, Net - Intangible Asset (Details) - USD ($) | 12 Months Ended | ||
Oct. 20, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Moviynt | |||
Other Intangible Assets | |||
Licenses | $ 698,600 | ||
Less: Accumulated Amortization | (23,287) | ||
Intangible Asset, Net | 675,313 | ||
Base merger consideration | $ 2,300,000 | ||
Tradename - Trademark | Moviynt | |||
Other Intangible Assets | |||
Licenses | 92,600 | ||
Less: Accumulated Amortization | (3,087) | ||
Intangible Asset, Net | $ 89,513 | ||
Useful life of finite lived assets | 5 years | ||
IP-Technology-License | |||
Other Intangible Assets | |||
Licenses | $ 2,443,356 | $ 1,038,606 | |
Less: Accumulated Amortization | (2,284,667) | $ (1,053,420) | |
IP-Technology-License | Moviynt | |||
Other Intangible Assets | |||
Licenses | 415,400 | ||
Less: Accumulated Amortization | (13,847) | ||
Intangible Asset, Net | $ 401,553 | ||
Useful life of finite lived assets | 5 years | ||
Customer Base | Moviynt | |||
Other Intangible Assets | |||
Licenses | $ 153,400 | ||
Less: Accumulated Amortization | (5,113) | ||
Intangible Asset, Net | $ 148,287 | ||
Useful life of finite lived assets | 5 years | ||
Non-Competes | Moviynt | |||
Other Intangible Assets | |||
Licenses | $ 37,200 | ||
Less: Accumulated Amortization | (1,240) | ||
Intangible Asset, Net | $ 35,960 | ||
Useful life of finite lived assets | 5 years |
Intangible Asset, Net - Amortiz
Intangible Asset, Net - Amortization Expense (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets | $ 1,231,197 |
Moviynt | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amortization of intangible assets | 23,287 |
Amortization expense relating to purchased intangible assets | |
2023 | 139,720 |
2024 | 139,720 |
2025 | 139,720 |
2026 | 139,720 |
2027 | 116,433 |
Intangible Asset, Net | $ 675,313 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Oct. 31, 2021 | Dec. 31, 2020 | |
Private Corporation Investments (at cost) | $ 450,000 | $ 450,000 | ||
Additions | 3,878,505 | 5,190,438 | ||
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | 631,143 | 491,923 | ||
Total Other Assets | 1,581,143 | 1,483,589 | ||
Software Development | ||||
Software Development Costs | 750,000 | 500,000 | ||
Additions | 125,000 | 250,000 | $ 250,000 | $ 500,000 |
Less: Accumulated Amortization | (375,000) | (208,334) | ||
Software Development Costs, Net | $ 500,000 | $ 541,666 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2021 | |
Other assets [Line Items] | ||||
Additions | $ 3,878,505 | $ 5,190,438 | ||
Amortization of Intangible Assets | 1,231,197 | |||
Capitalized Software Development Costs | ||||
Other assets [Line Items] | ||||
Amortization of Intangible Assets | 166,667 | 240,395 | $ 183,328 | |
Software Development | ||||
Other assets [Line Items] | ||||
Additions | $ 125,000 | $ 250,000 | $ 500,000 | $ 250,000 |
Useful life | 36 months |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 843,537 | $ 683,044 |
Accrued Professional Services | 263,800 | 551,220 |
Accrued Warranty Obligations | 159,927 | 185,044 |
Other Accrued Expenses | 403,275 | |
Total | $ 1,670,539 | $ 1,419,308 |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accrued Expenses | |||
Accrued Warranty Obligations, beginning of period | $ 185,044 | $ 143,898 | $ 98,893 |
Reductions for Settling Warranties | (408,655) | (342,392) | (193,503) |
Warranties Issued During Period | 383,538 | 383,538 | 238,508 |
Accrued Warranty Obligations, end of period | $ 159,927 | $ 185,044 | $ 143,898 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Accrued Expenses | |
Standard product warranty term | 12 months |
Extended product warranty term | 12 months |
Accrued Vendor Expenses | $ 318,320 |
Income Taxes - Pre-Tax Earnings
Income Taxes - Pre-Tax Earnings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | $ (40,763,573) | $ (40,377,160) | $ (17,952,172) |
US | |||
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | (41,356,619) | (39,906,101) | (18,238,773) |
Outside the U.S. [Member] | |||
Pre-Tax Income (Loss) | |||
Total Pre-Tax Income (Loss) | $ 593,046 | $ (471,059) | $ 286,601 |
Income Taxes - Provision Expens
Income Taxes - Provision Expense/ Benefit For Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. Income Taxes: | |||
Deferred Provision | $ (2,957,991) | $ (8,924,947) | $ (3,897,293) |
Valuation Allowance | 2,957,991 | 8,924,947 | 3,897,293 |
Income Taxes Outside the U.S.: | |||
Deferred Provision | 109,107 | (341,181) | 7,916 |
Valuation Allowance | (109,107) | 341,181 | (7,916) |
State Income Taxes: | |||
Deferred Provision | 271,248 | (636,401) | (94,324) |
Valuation Allowance | (271,248) | 636,401 | 94,324 |
Income Tax Expense (Benefit), Total |
Income Taxes - Reconciliation O
Income Taxes - Reconciliation Of Effective Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes | |||
Federal Income Tax at Statutory Rate | 21% | 21% | 21% |
State Tax Provision, Net of Federal Benefit | (0.50%) | 1.60% | 0.30% |
Permanent Differences | (0.40%) | (0.40%) | |
Forgiveness of PPP Loan | 1.80% | ||
Federal Tax Credits | (0.10%) | 0.20% | 1.10% |
Stock Compensation | (13.20%) | 1.50% | (2.10%) |
Foreign Tax Provision | 0.10% | 0.60% | 0.30% |
Expiration of NOL, Credits, Charitable Contribution | (0.80%) | (0.70%) | 0.10% |
Other | 0.20% | 0.30% | 0.10% |
Effective Tax Rate | 6.30% | 24.50% | 22.20% |
Change in Valuation Allowance | (6.30%) | (24.50%) | (22.20%) |
Income Taxes - Components Of De
Income Taxes - Components Of Deferred Tax assets And liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Tax Assets: | |||
Net Operating Loss Carry-forwards | $ 38,655,757 | $ 36,705,377 | $ 29,264,829 |
Tax Credit Carry-forwards | 4,048,872 | 3,924,660 | 3,778,001 |
Inventory Valuation Adjustment | 350,165 | 290,713 | 847,441 |
Stock-Based Compensation | 890,169 | 2,989,427 | 208,803 |
Lease Obligation Liability | 204,141 | 240,741 | 323,186 |
Capitalized R&D | 2,265,857 | ||
Other | 702,540 | 425,737 | 368,243 |
Total Deferred Tax Assets | 47,117,501 | 44,576,655 | 34,790,503 |
Deferred Tax Liabilities: | |||
Income from Foreign Operations | 10,727 | ||
Lease Right of Use Asset | 204,141 | 240,741 | 323,186 |
Moviynt Intangibles | 3,867 | ||
Other | 4,057 | 27,262 | |
Total Deferred Tax Liabilities | 208,008 | 244,798 | 361,175 |
Net Deferred Tax Assets Before Valuation Allowance | 46,909,493 | 44,331,857 | 34,429,328 |
Valuation Allowance | $ (46,909,493) | $ (44,331,857) | $ (34,429,328) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | |
Operating Loss Carryforwards [Line Items] | ||
Federal and state tax credit carry-forwards | $ 4,000,000 | |
Unrecognized tax benefits | $ 0 | |
US | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and State Net Operating Loss Carryforwards | 178,000,000 | |
Japan | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and State Net Operating Loss Carryforwards | 2,200,000 | |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Federal and State Net Operating Loss Carryforwards | $ 8,400,000 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | 8 Months Ended | 12 Months Ended | ||||||
May 12, 2022 | Mar. 02, 2022 | Mar. 25, 2021 | Jan. 28, 2021 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | 5,000,000 | |||||
Preferred Stock, Par Value | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 | 100,000,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Common Stock, Shares, Issued | 63,783,779 | 63,783,779 | 63,672,268 | |||||
Common Stock, Shares, Outstanding | 63,319,107 | 63,319,107 | 63,672,268 | |||||
Public offering price | $ 20.50 | |||||||
Proceeds from issuance of sale of equity gross | $ 97,750,007 | |||||||
Company awarded shares | 4,768,293 | |||||||
Underwriting discount and issuance costs and expenses | $ 91,613,587 | |||||||
Number of shares awarded | 442,000 | 1,100,500 | 1,481,000 | |||||
Aggregate value of shares authorized | $ 25,000,000 | |||||||
Share repurchase program term | 1 year | |||||||
Purchases of Treasury Stock (in Shares) | 464,672 | |||||||
Average cost | $ 4.32 | |||||||
Common shares held in treasury | 464,672 | 464,672 | 0 | |||||
Atomistic agreement | ||||||||
Amount committed to pay upon the achievement or waiver of performance milestones | $ 2,500,000 | |||||||
Period for equity bonus | 5 years | |||||||
Share commitments issued to date | 0 | |||||||
Atomistic agreement | Atomistic SAS | ||||||||
Ownership percent | 100% | |||||||
Minimum | Atomistic agreement | ||||||||
Period of time to issue per agreement | 6 months | |||||||
Fair market value | $ 8 | |||||||
Issuance of shares on exceeding valuation target (in shares) | 291,346 | |||||||
Maximum | Atomistic agreement | ||||||||
Issuance of shares, performance milestones (in shares) | 1,750,000 | |||||||
Period of time to issue per agreement | 24 months | |||||||
Fair market value | $ 13 | |||||||
Issuance of shares on fair valuation shortfall (in shares) | 1,093,754 | |||||||
Equity bonus (as a percent) | 15% | |||||||
Threshold market valuation | $ 3,500,000,000 | |||||||
Issuance of shares on exceeding valuation target (in shares) | 473,438 | |||||||
Corporation | ||||||||
Conversion of stock | 49,626 | |||||||
Shares issued on conversion | 4,962,600 | |||||||
Dividend payment amount | $ 10,000,000 | |||||||
Dividend accrued | $ 10,800,000 | |||||||
Series A Preferred Stock | ||||||||
Preferred Stock, Shares Authorized | 49,626 | 49,626 | 49,626 | |||||
Preferred Stock, Shares Issued | 0 | 0 | 0 | |||||
Preferred Stock, Shares Outstanding | 0 | 0 | 0 |
Stock Warrants - Changes in War
Stock Warrants - Changes in Warrants (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Warrants | ||
Warrants Outstanding, Beginning of Period | 7,276,928 | 6,512,516 |
Exercised During the Period | (7,276,928) | (2,882,647) |
Issued During the Period | 3,647,059 | |
Warrants Outstanding, End of Period | 7,276,928 |
Stock Warrants - Additional Inf
Stock Warrants - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2019 | |
Capital Stock | ||||
Warrants outstanding | 7,276,928 | 0 | 6,512,516 | |
Warrants exercised on cash basis | 7,276,928 | 2,882,647 | ||
Warrants exercised | 7,276,928 | 2,882,647 | ||
Proceeds from issuance of warrants | $ 34,715,728 | $ 14,128,527 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary Of Stock Option Plans (Details) - shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Stock Option Plan [Line Items] | |||
Outstanding or Exercised | 11,168,061 | 11,184,450 | 2,633,175 |
Available for future issuance under plan | 1,495,760 | 1,550,004 | 6,583,033 |
Totals authorized by plan | 12,663,821 | 12,734,454 | 9,216,208 |
2009 Plan | |||
Stock Option Plan [Line Items] | |||
Outstanding or Exercised | 85,498 | ||
Totals authorized by plan | 85,498 | ||
2014 Plan | |||
Stock Option Plan [Line Items] | |||
Outstanding or Exercised | 11,168,061 | 11,184,450 | 2,547,677 |
Available for future issuance under plan | 1,495,760 | 1,550,004 | 6,583,033 |
Totals authorized by plan | 12,663,821 | 12,734,454 | 9,130,710 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Options | ||||
Outstanding, Beginning Balance | 11,184,450 | 2,633,175 | ||
Outstanding, Ending Balance | 11,168,061 | 11,184,450 | 2,633,175 | |
Weighted Average Remaining Life (Years) | ||||
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 3 months 10 days | 7 years 11 months 12 days | 6 years 6 months 10 days | 6 years 3 months |
Stock options | ||||
Number of Options | ||||
Outstanding, Beginning Balance | 2,823,634 | 2,633,175 | 1,383,591 | |
Granted | 442,000 | 1,100,500 | 1,481,000 | |
Exercised | (145,185) | (739,956) | (82,083) | |
Expired or Forfeited | (314,776) | (170,085) | (149,333) | |
Outstanding, Ending Balance | 2,805,673 | 2,823,634 | 2,633,175 | 1,383,591 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance | $ 7.67 | $ 3.09 | $ 4.77 | |
Granted | 5.45 | 17.23 | 1.66 | |
Exercised | 2.56 | 3.36 | 4.67 | |
Expired or Forfeited | 9.27 | 8.58 | 3.68 | |
Outstanding, Ending Balance | $ 7.80 | $ 7.67 | $ 3.09 | $ 4.77 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions Used To Compute The Fair Value Of Stock Options (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Assumptions for Black-Scholes: | |||
Expected annual dividends | $ 0 | $ 0 | $ 0 |
Value of options granted: | |||
Number of options granted | 442,000 | 1,100,500 | 1,481,000 |
Weighted average fair value per share | $ 4.04 | $ 12.40 | $ 1.08 |
Fair value of options granted | $ 1,783,710 | $ 13,642,976 | $ 1,602,267 |
Minimum | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Volatility | 85.44% | 82.80% | 73.30% |
Risk-free interest rate | 2.18% | 0.96% | 0.41% |
Maximum | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 6 months | 6 years 7 months 6 days | |
Volatility | 87.09% | 86% | 76.80% |
Risk-free interest rate | 3.95% | 1.25% | 0.55% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Mar. 25, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock-Based Compensation Plans | ||||
Number of shares authorized by plan | 12,663,821 | 12,734,454 | 9,216,208 | |
Exercisable Options Outstanding Shares | 1,493,707 | 1,069,639 | 1,251,241 | |
Weighted average exercise price per share, Exercisable | $ 6.88 | $ 5.70 | $ 4.17 | |
Weighted average remaining contractual term on vested options | 6 years 3 months 18 days | 6 years 7 months 6 days | 4 years 6 months | |
Unvested Options Outstanding, Shares | 1,311,966 | 1,753,995 | 1,381,934 | |
Unvested Options Outstanding, Weighted average exercise price | $ 8.83 | $ 9.62 | $ 2.16 | |
Unvested Options Outstanding Weighted average remaining life (years) | 8 years 4 months 24 days | 8 years 9 months 18 days | 9 years 3 months 18 days | |
Aggregate intrinsic value of the options exercised | $ 14,732,088 | $ 13,697,906 | $ 869,177 | |
Aggregate intrinsic value of the options outstanding | 2,093,164 | $ 9,314,887 | $ 16,444,695 | |
Unrecognized stock compensation expense | $ 8,295,237 | |||
Weighted average recognition period | 2 years 6 months | |||
Weighted average fair value per share | $ 4.04 | $ 12.40 | $ 1.08 | |
Company awarded shares | 4,768,293 | |||
Share-Based compensation excludes the long term incentive plan expense | $ 4,645,026 | $ 4,047,444 | $ 2,805,842 | |
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 Operating Officer | ||||
Stock-Based Compensation Plans | ||||
Weighted average fair value per share | $ 5.64 | |||
Aggregate fair value | $ 1,128,000 | |||
Company awarded shares | 200,000 | |||
Common Stock | ||||
Stock-Based Compensation Plans | ||||
Company awarded shares | 4,768,293 | 8,647,059 | ||
2014 Plan | ||||
Stock-Based Compensation Plans | ||||
Number of shares authorized by plan | 12,663,821 | 12,734,454 | 9,130,710 | |
Percentage of maximum number of shares that may be issued in accordance with the plan | 20% | |||
Award expiration period | 10 years | |||
Award vesting period | 4 years | |||
2014 Plan | Minimum | ||||
Stock-Based Compensation Plans | ||||
Vesting rights percentage | 25% | |||
Exercise price to fair value | 100% |
Long-term Incentive Plan (Detai
Long-term Incentive Plan (Details) - USD ($) | 12 Months Ended | |||
Mar. 17, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Long-term Incentive Plan | ||||
Exercise price | $ 6.88 | $ 5.70 | $ 4.17 | |
Share-based Compensation | $ 15,775,553 | $ 17,302,833 | $ 2,805,842 | |
Unrecognized stock-based compensation expense | $ 8,295,237 | |||
Recognition period | 2 years 6 months | |||
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 | |||
Long-term Incentive Plan 2021 | ||||
Long-term Incentive Plan | ||||
Share-based Compensation | $ 11,130,527 | 13,255,388 | 0 | |
Stock options | Long-term Incentive Plan 2021 | ||||
Long-term Incentive Plan | ||||
Granted | 5,784,000 | |||
Exercise price | $ 19 | |||
Share-based Compensation | 11,130,527 | $ 13,255,388 | $ 0 | |
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 | 17,209,931 | |||
Amount of threshold additional stock based compensation expense | $ 34,100,000 | |||
Stock options tied to equity market capitalization milestone | Minimum | ||||
Long-term Incentive Plan | ||||
Recognition period | 3 years | |||
Stock options tied to equity market capitalization milestone | Maximum | ||||
Long-term Incentive Plan | ||||
Recognition period | 4 years |
Long-term Incentive Plan - Assu
Long-term Incentive Plan - Assumptions Used To Compute The Fair Value And Estimated Value (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Value of options granted: | |||
Number of options granted | 442,000 | 1,100,500 | 1,481,000 |
Weighted average fair value per share | $ 4.04 | $ 12.40 | $ 1.08 |
Fair value of options granted | $ 1,783,710 | $ 13,642,976 | $ 1,602,267 |
Minimum | |||
Assumptions | |||
Expected term in years | 6 years 1 month 6 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Volatility | 85.44% | 82.80% | 73.30% |
Risk-free interest rate | 2.18% | 0.96% | 0.41% |
Maximum | |||
Assumptions | |||
Expected term in years | 6 years 6 months | 6 years 7 months 6 days | |
Volatility | 87.09% | 86% | 76.80% |
Risk-free interest rate | 3.95% | 1.25% | 0.55% |
Long-term Incentive Plan - LTIP
Long-term Incentive Plan - LTIP (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) shares | |
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 | 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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
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% |
Right-of-Use Assets and Liabi_3
Right-of-Use Assets and Liabilities - Operating Leases (Details) | Dec. 31, 2022 USD ($) |
Right-of-Use Assets and Liabilities | |
2023 | $ 697,651 |
2024 | 191,120 |
2025 | 132,982 |
Total Future Lease Payments | 1,021,753 |
Less: Imputed Interest | (65,588) |
Total Lease Liability Balance | $ 956,165 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2022 USD ($) ft² | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Right-of-Use Assets and Liabilities | ||||
Area of additional space leased | ft² | 12,000 | |||
Term of contract | 3 years | 5 years | ||
Operating lease, option to extend | true | true | ||
Renewal term | 1 year | 3 years | ||
Monthly base rent lease payments | $ 9,503 | |||
Additional rent lease payments | $ 2,587 | |||
Operating lease costs | $ 659,045 | $ 630,085 | $ 559,975 | |
Weighted average discount rate | 7.10% | |||
Weighted average remaining term | 1 year 9 months 18 days |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Details) - USD ($) | 12 Months Ended | |||
Jul. 01, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plans | ||||
Percentage of employee deferrals | 100% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 3% | |||
Defined Contribution Plan, Cost | $ 262,726 | $ 280,660 | $ 148,131 |
Geographic and Other Financia_3
Geographic and Other Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 2,898,000 | $ 3,427,000 | $ 3,008,000 | $ 2,503,000 | $ 3,314,000 | $ 3,019,000 | $ 2,917,000 | $ 3,915,000 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 11,835,882 | $ 13,164,933 | $ 11,581,496 |
Revenue | Geographic Concentration Risk 1 [Member] | |||||||||||||||
Revenue | $ 11,836,000 | $ 13,165,000 | $ 11,581,000 | ||||||||||||
Concentration Risk, Percentage | 100% | 100% | 100% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | North America | |||||||||||||||
Revenue | $ 4,738,000 | $ 5,003,000 | $ 4,531,000 | ||||||||||||
Concentration Risk, Percentage | 40% | 38% | 40% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Europe | |||||||||||||||
Revenue | $ 3,532,000 | $ 4,683,000 | $ 3,290,000 | ||||||||||||
Concentration Risk, Percentage | 30% | 36% | 28% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Asia-Pacific | |||||||||||||||
Revenue | $ 3,411,000 | $ 2,960,000 | $ 3,383,000 | ||||||||||||
Concentration Risk, Percentage | 29% | 22% | 29% | ||||||||||||
Revenue | Geographic Concentration Risk 1 [Member] | Others | |||||||||||||||
Revenue | $ 155,000 | $ 519,000 | $ 377,000 | ||||||||||||
Concentration Risk, Percentage | 1% | 4% | 3% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | |||||||||||||||
Revenue | $ 11,836,000 | $ 13,165,000 | $ 11,581,000 | ||||||||||||
Concentration Risk, Percentage | 100% | 100% | 100% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | US | |||||||||||||||
Revenue | $ 4,592,000 | $ 4,767,000 | $ 4,364,000 | ||||||||||||
Concentration Risk, Percentage | 39% | 36% | 38% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Japan | |||||||||||||||
Revenue | $ 1,735,000 | $ 2,078,000 | $ 2,502,000 | ||||||||||||
Concentration Risk, Percentage | 15% | 16% | 22% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Netherlands | |||||||||||||||
Revenue | $ 1,508,000 | $ 1,052,000 | $ 631,000 | ||||||||||||
Concentration Risk, Percentage | 13% | 8% | 5% | ||||||||||||
Revenue | Geographic Concentration Risk 2 [Member] | Others | |||||||||||||||
Revenue | $ 4,001,000 | $ 5,268,000 | $ 4,084,000 | ||||||||||||
Concentration Risk, Percentage | 33% | 40% | 34% |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Quarterly Financial Information Unaudited [Abstract] | |||||||||||||||
Revenue | $ 2,898,000 | $ 3,427,000 | $ 3,008,000 | $ 2,503,000 | $ 3,314,000 | $ 3,019,000 | $ 2,917,000 | $ 3,915,000 | $ 4,233,000 | $ 2,779,000 | $ 3,037,000 | $ 1,532,000 | $ 11,835,882 | $ 13,164,933 | $ 11,581,496 |
Gross profit (loss) | (126,000) | 868,000 | 262,000 | 479,000 | (12,000) | 363,000 | 359,000 | 860,000 | 371,000 | 16,000 | 464,000 | (252,000) | 1,483,126 | 1,568,490 | 597,958 |
Net loss | $ (10,759,000) | $ (9,477,000) | $ (10,022,000) | $ (10,506,000) | $ (11,493,000) | $ (10,488,000) | $ (9,245,000) | $ (9,151,000) | $ (3,590,000) | $ (4,761,000) | $ (4,239,000) | $ (5,362,000) | $ (40,763,573) | $ (40,377,160) | $ (17,952,172) |
Net loss per share, basic | $ (0.17) | $ (0.15) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.64) | $ (0.66) | $ (0.53) |
Net loss per share, diluted | $ (0.17) | $ (0.15) | $ (0.16) | $ (0.16) | $ (0.17) | $ (0.17) | $ (0.15) | $ (0.17) | $ (0.09) | $ (0.13) | $ (0.13) | $ (0.18) | $ (0.64) | $ (0.66) | $ (0.53) |
Net loss attributable to common stockholders | $ (10,759,000) | $ (9,477,000) | $ (10,022,000) | $ (10,506,000) | $ (11,493,000) | $ (10,488,000) | $ (9,245,000) | $ (9,151,000) | $ (4,120,000) | $ (5,281,000) | $ (4,746,000) | $ (5,861,000) | $ (40,763,573) | $ (40,377,160) | $ (20,008,322) |
Schedule II - Valuation And Qua
Schedule II - Valuation And Qualification Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at Beginning of Period | $ 1,127 | $ 3,886 | $ 4,788 |
Charged to Expenses | 290 | 520 | 1,274 |
Deductions | 0 | (3,279) | (2,176) |
Balance at End of Period | 1,417 | 1,127 | 3,886 |
Doubtful Accounts | |||
Balance at Beginning of Period | 0 | 0 | 0 |
Charged to Expenses | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | 0 | 0 | 0 |
Inventory | |||
Balance at Beginning of Period | 1,127 | 3,886 | 4,788 |
Charged to Expenses | 290 | 520 | 1,274 |
Deductions | 0 | (3,279) | (2,176) |
Balance at End of Period | $ 1,417 | $ 1,127 | $ 3,886 |