Vuzix (VUZI) 10-Q 10 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	May 10, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
Entity File Number	001-35955
Entity Registrant Name	Vuzix Corp
Entity Incorporation, State or Country Code	DE
Entity Central Index Key	0001463972
Entity Tax Identification Number	04-3392453
Entity Address, Address Line One	25 Hendrix Road, Suite A
Entity Address, City or Town	West Henrietta
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14586
City Area Code	585
Local Phone Number	359-5900
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	VUZI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		63,219,123
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and Cash Equivalents	$ 63,235,863	$ 72,563,943
Accounts Receivable, Net	3,059,156	3,558,971
Accrued Revenues in Excess of Billings	192,177	269,129
Employee Retention Credit Receivable	466,705	466,705
Inventories, Net	10,861,679	11,267,969
Manufacturing Vendor Prepayments	474,035	998,671
Prepaid Expenses and Other Assets	1,621,186	2,115,853
Total Current Assets	79,910,801	91,241,241
Long-Term Assets
Fixed Assets, Net	6,139,939	3,878,505
Operating Lease Right-of-Use Asset	791,604	956,165
Patents and Trademarks, Net	2,341,024	2,220,094
Technology Licenses, Net	29,331,805	30,158,689
Intangible Asset, Net	640,383	675,313
Goodwill	1,601,400	1,601,400
Other Assets, Net	1,715,996	1,581,143
Total Assets	122,472,952	132,312,550
Current Liabilities
Accounts Payable	1,271,365	1,211,747
Unearned Revenue	41,454	29,064
Accrued Expenses	1,466,214	1,670,539
Licensing Fees Commitment	9,500,000	11,500,000
Income and Other Taxes Payable	22,841	214,997
Operating Lease Right-of-Use Liability	562,375	651,011
Total Current Liabilities	12,864,249	15,277,358
Long-Term Liabilities
Operating Lease Right-of-Use Liability	229,229	305,154
Total Liabilities	13,093,478	15,582,512
Stockholders' Equity
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 63,787,858 shares issued and 63,208,186 shares outstanding as of March 31, 2023 and 63,783,779 shares issued and 63,319,107 shares outstanding as of December 31, 2022.	63,787	63,783
Additional Paid-in Capital	365,868,487	362,507,715
Accumulated Deficit	(254,076,299)	(243,835,716)
Treasury Stock, at cost, 579,672 shares as of March 31, 2023 and 464,672 shares as of December 31, 2022.	(2,476,501)	(2,005,744)
Total Stockholders' Equity	109,379,474	116,730,038
Total Liabilities and Stockholders' Equity	$ 122,472,952	$ 132,312,550

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
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	63,787,858	63,783,779
Common Stock, Shares Outstanding	63,208,186	63,319,107
Common shares held in treasury	579,672	464,672

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock	Total
Balance at Dec. 31, 2021	$ 63,672	$ 346,736,397	$ (203,072,143)		$ 143,727,926
Balance (in shares) at Dec. 31, 2021	63,672,268
Stock-Based Compensation Expense		3,955,738			3,955,738
Stock Option Exercises	$ 33	29,191			29,224
Stock Option Exercises (in shares)	32,358
Purchases of Treasury Stock				$ (251,057)	(251,057)
Purchases of Treasury Stock (in Shares)				(36,685)
Net Loss			(10,506,001)		(10,506,001)
Balance at Mar. 31, 2022	$ 63,705	350,721,326	(213,578,144)	$ (251,057)	136,955,830
Balance (in shares) at Mar. 31, 2022	63,704,626			(36,685)
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)
Stock-Based Compensation Expense		3,360,772			3,360,772
Stock Option Exercises	$ 4				4
Stock Option Exercises (in shares)	4,079
Purchases of Treasury Stock				$ (470,757)	$ (470,757)
Purchases of Treasury Stock (in Shares)				(115,000)	115,000
Net Loss			(10,240,583)		$ (10,240,583)
Balance at Mar. 31, 2023	$ 63,787	$ 365,868,487	$ (254,076,299)	$ (2,476,501)	$ 109,379,474
Balance (in shares) at Mar. 31, 2023	63,787,858			(579,672)

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cost of Sales:
Cost of Sales - Depreciation and Amortization	$ 232,916	$ 223,785
Total Cost of Sales	3,315,355	2,027,383
Gross Profit	876,006	475,668
Operating Expenses:
Research and Development	3,069,797	3,103,444
Selling and Marketing	2,539,659	2,023,435
General and Administrative	5,131,824	5,453,833
Depreciation and Amortization	964,265	259,245
Impairment of Patents and Trademarks	17,666	49,603
Total Operating Expenses	11,723,211	10,889,560
Loss From Operations	(10,847,205)	(10,413,892)
Other Income (Expense):
Investment Income	695,783	6,280
Income and Other Taxes	(87,795)	(47,632)
Foreign Exchange Loss	(1,366)	(50,757)
Total Other Income (Expense), Net	606,622	(92,109)
Loss Before Provision for Income Taxes	(10,240,583)	(10,506,001)
Net Loss	$ (10,240,583)	$ (10,506,001)
Basic Loss per Common Share	$ (0.16)	$ (0.16)
Diluted Loss per Common Share	$ (0.16)	$ (0.16)
Weighted-average Shares Outstanding - Basic	63,216,598	63,695,127
Weighted-average Shares Outstanding - Diluted	63,216,598	63,695,127
Sales of Products
Sales:
Sales of Products	$ 4,191,361	$ 2,503,051
Cost of Sales:
Cost of Sales - Products Sold	$ 3,082,439	$ 1,803,598

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Operating Activities
Net Loss	$ (10,240,583)	$ (10,506,001)
Non-Cash Adjustments
Depreciation and Amortization	1,197,181	483,030
Stock-Based Compensation	3,667,509	4,319,748
Impairment of Patents and Trademarks	17,666	49,603
(Increase) Decrease in Operating Assets
Accounts Receivable	499,815	690,775
Accrued Revenues in Excess of Billings	76,952
Inventories	406,290	(407,084)
Manufacturing Vendor Prepayments	524,636	(82,513)
Prepaid Expenses and Other Assets	218,520	213,394
Increase (Decrease) in Operating Liabilities
Accounts Payable	59,618	(831,021)
Accrued Expenses	(412,566)	(292,286)
Unearned Revenue	12,391	1,825
Income and Other Taxes Payable	(192,156)	(74,549)
Net Cash Flows Used in Operating Activities	(4,164,727)	(6,435,079)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(2,284,968)	(57,758)
Investments in Patents and Trademarks	(182,628)	(34,469)
Investments in Licenses, Intangibles and Other Assets	(2,000,000)	(125,000)
Investments in Software Development	(125,000)
Investments in Other Assets	(100,000)
Net Cash Flows Used in Investing Activities	(4,692,596)	(217,227)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants		29,224
Purchases of Treasury Stock	(470,757)	(251,057)
Net Cash Flows Used in Financing Activities	(470,757)	(221,833)
Net Decrease in Cash and Cash Equivalents	(9,328,080)	(6,874,139)
Cash and Cash Equivalents - Beginning of Period	72,563,943	120,203,873
Cash and Cash Equivalents - End of Period	63,235,863	113,329,734
Supplemental Disclosures
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets	1,061,885	1,001,232
Non-Cash Investment in Licenses	9,500,000
Stock-Based Compensation Expense - Expensed less Previously Issued	$ 306,737	$ 364,010

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Basis of Presentation
Basis of Presentation	Note 1 – Basis of Presentation The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications have been made to prior comparable periods to conform with current reporting impacting Costs of Sales, Gross Profit and Depreciation and Amortization. The results of the Company’s operations for the three months ended March 31, 2023 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2022, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2023. 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 three months ended March 31, 2022, 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 of these reclassifications: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended March 31, 2022 ​ Condensed Statement of Operations ​ As Previously Presented ​ Reclassification ​ Revised ​ ​ Total Sales ​ $ 2,503,051 ​ $ — ​ $ 2,503,051 ​ ​ Cost of Sales - Products Sold ​ ​ 1,863,697 ​ ​ (60,099) ​ ​ 1,803,598 ​ ​ Cost of Sales - Depreciation and Amortization ​ ​ — ​ ​ 223,785 ​ ​ 223,785 ​ ​ Gross Profit ​ ​ 639,354 ​ ​ 163,686 ​ ​ 475,668 ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and Development ​ ​ 3,103,444 ​ ​ ​ ​ ​ 3,103,444 ​ ​ Selling and Marketing ​ ​ 2,023,435 ​ ​ ​ ​ ​ 2,023,435 ​ ​ General and Administrative ​ ​ 5,453,833 ​ ​ ​ ​ ​ 5,453,833 ​ ​ Depreciation and Amortization ​ ​ 422,931 ​ ​ (163,686) ​ ​ 259,245 ​ ​ Impairment of Patents and Trademarks ​ ​ 49,603 ​ ​ ​ ​ ​ 49,603 ​ ​ Total Operating Expenses ​ ​ 11,053,246 ​ ​ (163,686) ​ ​ 10,889,560 ​ ​ Loss From Operations ​ (10,413,892) ​ — ​ (10,413,892) ​ ​ Total Other Expense, Net ​ ​ (92,109) ​ ​ ​ ​ ​ (92,109) ​ ​ Net Loss ​ $ (10,506,001) ​ $ — ​ $ (10,506,001) ​ ​ ​ Customer Concentrations For the three months ended March 31, 2023, one customer represented 74% of total product revenue. For the three months ended March 31, 2022, one customer represented 11% of total product revenue. As of March 31, 2023, one customer represented 50% of accounts receivable. As of December 31, 2022, one customer represented 26% of accounts receivable. Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent re-issuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. The Company adopted ASU 2016-13 effective on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements.

Revenue Recognition and Contrac

Revenue Recognition and Contracts with Customers	3 Months Ended
	Mar. 31, 2023
Revenue Recognition and Contracts with Customers
Revenue Recognition and Contracts with Customers	Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. There were no Engineering Services revenue recorded in the three months ended March 31, 2023. The following table summarizes the revenue recognized by major product line: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2023 2022 Revenues ​ ​ Products Sales ​ $ 4,191,361 ​ $ 2,503,051 ​ ​ ​ ​ ​ ​ ​ ​ 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 12 eighteen 18 twelve 12 twelve 12 The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ % of Total Net Sales ​ ​ 2023 2022 Point-in-Time 100 % 100 % ​ Remaining Performance Obligations As of March 31, 2023, the Company had approximately $165,000 of remaining performance obligations under a current waveguide development project, which represents the remainder of the total transaction price of approximately $800,000 under this development agreement, which commenced in 2022, less revenue recognized under percentage of completion to date. The Company expects to recognize the remaining revenue related to this project in the second quarter of 2023. Revenues earned less amounts invoiced at March 31, 2023 in the amount of $192,177 are reflected as Accrued Revenues in Excess of Billings in the accompanying Consolidated Balance Sheet. The Company had no material outstanding performance obligations related to product sales, other than its standard product warranty.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2023
Loss Per Share
Loss Per Share	Note 3 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are anti-dilutive. Since the Company reported a net loss for the three months ended March 31, 2023 and 2022, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. At March 31, 2023 and 2022, there were 8,603,308 and 8,611,365 common stock share equivalents, respectively, potentially exercisable or issuable under conversion or exercise of stock options that could dilute basic earnings per share in the future.

Inventories, Net

Inventories, Net	3 Months Ended
	Mar. 31, 2023
Inventories, Net
Inventories, Net	Note 4 – Inventories, Net Inventories are stated at the lower of cost and net realizable value, and consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 10,018,357 ​ $ 10,399,527 Work-in-Process ​ 358,857 ​ 344,242 Finished Goods ​ 2,255,516 ​ 1,941,689 Less: Reserve for Obsolescence ​ (1,771,051) ​ (1,417,489) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 10,861,679 ​ $ 11,267,969 ​

Fixed Assets

Fixed Assets	3 Months Ended
	Mar. 31, 2023
Fixed Assets
Fixed Assets	Note 5 – Fixed Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Tooling and Manufacturing Equipment ​ $ 8,050,657 ​ $ 6,065,445 Leaseholds ​ 1,366,128 ​ 826,329 Computers and Purchased Software ​ 765,237 ​ 760,256 Furniture and Equipment ​ 2,505,091 ​ 2,487,650 ​ ​ 12,687,113 ​ 10,139,680 Less: Accumulated Depreciation ​ (6,547,174) ​ (6,261,175) Fixed Assets, Net ​ $ 6,139,939 ​ $ 3,878,505 ​ During the three months ended March 31, 2023, the Company invested approximately $2,200,000 in tooling and manufacturing equipment and leasehold improvements, as part of the Company’s new waveguide expansion project. Construction on the Company’s new facility began late in December 2022 and is expected to be completed by the end of May 2023. Total depreciation expense for fixed assets, not included in Cost of Sales, for the three months ended March 31, 2023 and 2022 was $102,451 and $117,087, respectively.

Technology Licenses, Net

Technology Licenses, Net	3 Months Ended
	Mar. 31, 2023
Technology Licenses, Net
Technology Licenses, Net	Note 6 – Technology Licenses, Net ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 32,443,356 ​ $ 2,443,356 Additions ​ — ​ 30,000,000 Less: Accumulated Amortization ​ (3,111,551) ​ (2,284,667) Licenses, Net ​ $ 29,331,805 ​ $ 30,158,689 ​ Total amortization expense related to technology licenses for the three months ended March 31, 2023 and 2022 was $826,884 and $56,700, respectively.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2023
Other Assets
Other Assets	Note 7 - Other Assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Private Corporation Investments ​ $ 450,000 ​ $ 450,000 Additions ​ ​ 100,000 ​ ​ — Total Private Corporation Investments (at cost) ​ ​ 550,000 ​ ​ 450,000 ​ ​ ​ ​ ​ ​ ​ Software Development Costs ​ ​ 875,000 ​ ​ 750,000 Additions ​ ​ 125,000 ​ ​ 125,000 Less: Accumulated Amortization ​ ​ (430,556) ​ ​ (375,000) Software Development Costs, Net ​ ​ 569,444 ​ ​ 500,000 ​ ​ ​ ​ ​ ​ ​ Unamortized Common Stock Expense included in Long-Term Prepaid Expenses ​ ​ 596,552 ​ ​ 631,143 ​ ​ ​ ​ ​ ​ ​ Total Other Assets ​ $ 1,715,996 ​ $ 1,581,143 ​ In 2021, the Company acquired, for a purchase price of $200,000, an ownership interest of 3%, in the form of preferred stock, in a private corporation developing smart glasses software for use by retailers in the stock keeping of inventory, amongst other uses. In the three months ended March 31, 2023, the Company purchased an additional $100,000 of preferred stock in this corporation through a subsequent round of funding in order to retain 2% ownership interest. ​ During 2020, the Company invested $500,000 in Android operating systems upgrades for its CPU platform used in its M400 and M4000 products. This upgrade was finished and placed into service in the beginning of the fourth quarter of 2020. This capitalized asset is being amortized on a straight-line basis over its expected product life cycle of thirty-six thirty-six 36 ​ Total amortization expense related to all software updates for the three months ended March 31, 2023 and 2022 were $55,556 and $41,666, respectively.

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2023
Accrued Expenses
Accrued Expenses	Note 8 – Accrued Expenses Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 580,002 ​ $ 843,537 Accrued Professional Services ​ 189,760 ​ 263,800 Accrued Warranty Obligations ​ 194,427 ​ 159,927 Other Accrued Expenses ​ 502,025 ​ 403,275 ​ ​ ​ ​ ​ ​ ​ Total ​ $ 1,466,214 ​ $ 1,670,539 ​ The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2023 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligations at December 31, 2022 ​ $ 159,927 Reductions for Settling Warranties ​ (91,241) Warranties Issued During Year ​ 125,741 ​ ​ ​ ​ Accrued Warranty Obligations at March 31, 2023 ​ $ 194,427 ​

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Taxes
Income Taxes	Note 9 – Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets.

Capital Stock

Capital Stock	3 Months Ended
	Mar. 31, 2023
Capital Stock
Capital Stock	Note 10 – Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. A total of 5,000,000 shares of preferred stock with a par value of $0.001 are authorized as of March 31, 2023 and December 31, 2022. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil shares of Series A Preferred Stock issued and outstanding on March 31, 2023 and December 31, 2022, respectively. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 63,787,858 shares issued and 63,208,186 shares outstanding as of March 31, 2023 and 63,783,779 shares issued and 63,319,107 shares outstanding as of December 31, 2022. ​ Treasury Stock

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation
Stock-Based Compensation	Note 11 – Stock-Based Compensation A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the three months ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ Number of ​ Average ​ Remaining Life ​ Options Exercise Price (years) Outstanding at December 31, 2022 2,805,673 ​ $ 7.80 7.28 Granted 25,000 ​ 3.64 Exercised (2,512) ​ 1.33 Expired or Forfeited (8,853) ​ 15.23 ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at March 31, 2023 2,819,308 ​ $ 7.74 7.07 ​ The weighted average remaining contractual term for all options as of March 31, 2023 and December 31, 2022 was 7.07 years and 7.28 years, respectively. As of March 31, 2023, there were 1,642,429 options that were fully-vested and exercisable at a weighted average exercise price of $6.94 per share. The weighted average remaining contractual term of the vested options is 6.2 years. As of March 31, 2023, there were 1,176,879 unvested options exercisable at a weighted average exercise price of $8.84 per share. The weighted average remaining contractual term of the unvested options is 8.3 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. As of March 31, 2023, the Company had $7,393,432 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 2.3 years. For the three months ended March 31, 2023 and 2022, the Company recorded total stock-based compensation expense, including stock awards but excluding awards under the Company’s LTIP, of $1,129,566 and $1,350,610, respectively.

Long-term Incentive Plan

Long-term Incentive Plan	3 Months Ended
	Mar. 31, 2023
Long-term Incentive Plan
Long-term Incentive Plan	Note 12 – Long-Term Incentive Plan On March 17, 2021, the Company granted options to purchase a total of 5,784,000 shares of common stock to its officers and certain other members of its management team. The options were granted under the Company’s existing 2014 Incentive Stock Plan. The options have an exercise price of $19.00, with 375,000 options vesting immediately and the remaining portion vesting upon the achievement of certain equity market capitalization milestones, and revenue and EBITDA operational milestones. For the three months ended March 31, 2023 and 2022, the Company recorded non-cash stock-based compensation expense of $2,537,944 and $2,969,138, respectively, for options that vested or are probable to vest. These expenses are presented in the same financial statement line items in the Statements of Operations as the cash-based compensation expenses for the same employees. ​ 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 March 31, 2023, we had $14,671,988 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 March 31, 2023, there are 2,704,500 options unvested for the achievement of Equity Market Capitalization targets, 1,893,150 unvested options for the achievement of annual Revenue targets, and 811,350 unvested options for the achievement of annual EBITDA Margins Before Non-Cash Charges targets. ​ ​ ​ ​ ​ Award Potential Criteria Achievement Weighting ​ 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA ​ ​ ​ ​ ​ ​ ​ ​ 686,000 $ 2,000,000,000 $ 25,000,000 0.0% 686,000 3,000,000,000 50,000,000 2.0% 686,000 4,000,000,000 100,000,000 4.0% 686,000 5,000,000,000 200,000,000 6.0% 586,000 6,000,000,000 300,000,000 8.0% 586,000 7,000,000,000 450,000,000 10.0% 561,000 8,000,000,000 675,000,000 12.0% 491,000 9,000,000,000 1,000,000,000 14.0% 441,000 10,000,000,000 1,500,000,000 16.0% 5,409,000 ​ ​ ​ ​

Litigation

Litigation	3 Months Ended
	Mar. 31, 2023
Litigation
Litigation	Note 13 – 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.

Right-of-Use Assets and Liabili

Right-of-Use Assets and Liabilities	3 Months Ended
	Mar. 31, 2023
Right-of-Use Assets and Liabilities
Right-of-Use Assets and Liabilities	Note 14 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of March 31, 2023 were as follows: ​ ​ ​ ​ ​ 2023 ​ $ 523,238 2024 ​ 191,120 2025 ​ 132,982 Total Future Lease Payments ​ 847,340 Less: Imputed Interest ​ (55,736) Total Lease Liability Balance ​ $ 791,604 ​ Operating lease costs under the operating leases totaled $203,339 and $162,365 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the weighted average discount rate was 7.1% and the weighted average remaining lease term was 1.7 years.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Basis of Presentation
Basis of Presentation	The accompanying unaudited consolidated financial statements of Vuzix Corporation (“the Company” or “Vuzix”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (the “SEC”). Accordingly, the unaudited consolidated financial statements do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Certain re-classifications have been made to prior comparable periods to conform with current reporting impacting Costs of Sales, Gross Profit and Depreciation and Amortization. The results of the Company’s operations for the three months ended March 31, 2023 are not necessarily indicative of the results of the Company’s operations for the full fiscal year or any other period. The accompanying interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto of the Company as of and for the year ended December 31, 2022, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 1, 2023.
Reclassification of Prior Year Presentation	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 three months ended March 31, 2022, 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 of these reclassifications: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended March 31, 2022 ​ Condensed Statement of Operations ​ As Previously Presented ​ Reclassification ​ Revised ​ ​ Total Sales ​ $ 2,503,051 ​ $ — ​ $ 2,503,051 ​ ​ Cost of Sales - Products Sold ​ ​ 1,863,697 ​ ​ (60,099) ​ ​ 1,803,598 ​ ​ Cost of Sales - Depreciation and Amortization ​ ​ — ​ ​ 223,785 ​ ​ 223,785 ​ ​ Gross Profit ​ ​ 639,354 ​ ​ 163,686 ​ ​ 475,668 ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and Development ​ ​ 3,103,444 ​ ​ ​ ​ ​ 3,103,444 ​ ​ Selling and Marketing ​ ​ 2,023,435 ​ ​ ​ ​ ​ 2,023,435 ​ ​ General and Administrative ​ ​ 5,453,833 ​ ​ ​ ​ ​ 5,453,833 ​ ​ Depreciation and Amortization ​ ​ 422,931 ​ ​ (163,686) ​ ​ 259,245 ​ ​ Impairment of Patents and Trademarks ​ ​ 49,603 ​ ​ ​ ​ ​ 49,603 ​ ​ Total Operating Expenses ​ ​ 11,053,246 ​ ​ (163,686) ​ ​ 10,889,560 ​ ​ Loss From Operations ​ (10,413,892) ​ — ​ (10,413,892) ​ ​ Total Other Expense, Net ​ ​ (92,109) ​ ​ ​ ​ ​ (92,109) ​ ​ Net Loss ​ $ (10,506,001) ​ $ — ​ $ (10,506,001) ​ ​ ​
Customer Concentrations	Customer Concentrations For the three months ended March 31, 2023, one customer represented 74% of total product revenue. For the three months ended March 31, 2022, one customer represented 11% of total product revenue. As of March 31, 2023, one customer represented 50% of accounts receivable. As of December 31, 2022, one customer represented 26% of accounts receivable.
Treasury Stock	Treasury Stock Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Gains and losses on the subsequent re-issuance of shares will be credited or charged to paid-in capital in excess of par value using the average-cost method.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). ASU 2016-13 provides for a new impairment model which requires measurement and recognition of expected credit losses for most financial assets and certain other instruments, including but not limited to, accounts receivable. The Company adopted ASU 2016-13 effective on January 1, 2023. The adoption of this standard did not have a material impact on our consolidated financial statements.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	3 Months Ended
	Mar. 31, 2023
Basis of Presentation
Reclassification of prior year presentation	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ For the Three Months Ended March 31, 2022 ​ Condensed Statement of Operations ​ As Previously Presented ​ Reclassification ​ Revised ​ ​ Total Sales ​ $ 2,503,051 ​ $ — ​ $ 2,503,051 ​ ​ Cost of Sales - Products Sold ​ ​ 1,863,697 ​ ​ (60,099) ​ ​ 1,803,598 ​ ​ Cost of Sales - Depreciation and Amortization ​ ​ — ​ ​ 223,785 ​ ​ 223,785 ​ ​ Gross Profit ​ ​ 639,354 ​ ​ 163,686 ​ ​ 475,668 ​ ​ Operating Expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Research and Development ​ ​ 3,103,444 ​ ​ ​ ​ ​ 3,103,444 ​ ​ Selling and Marketing ​ ​ 2,023,435 ​ ​ ​ ​ ​ 2,023,435 ​ ​ General and Administrative ​ ​ 5,453,833 ​ ​ ​ ​ ​ 5,453,833 ​ ​ Depreciation and Amortization ​ ​ 422,931 ​ ​ (163,686) ​ ​ 259,245 ​ ​ Impairment of Patents and Trademarks ​ ​ 49,603 ​ ​ ​ ​ ​ 49,603 ​ ​ Total Operating Expenses ​ ​ 11,053,246 ​ ​ (163,686) ​ ​ 10,889,560 ​ ​ Loss From Operations ​ (10,413,892) ​ — ​ (10,413,892) ​ ​ Total Other Expense, Net ​ ​ (92,109) ​ ​ ​ ​ ​ (92,109) ​ ​ Net Loss ​ $ (10,506,001) ​ $ — ​ $ (10,506,001) ​ ​ ​

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue Recognition and Contracts with Customers
Schedule of company's total revenue by major product lines	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ March 31, ​ 2023 2022 Revenues ​ ​ Products Sales ​ $ 4,191,361 ​ $ 2,503,051 ​ ​ ​ ​ ​ ​ ​
Schedule of company's net sales by revenue recognition method as a percentage of total net sales	The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three months ended March 31: ​ ​ ​ ​ ​ ​ ​ ​ % of Total Net Sales ​ ​ 2023 2022 Point-in-Time 100 % 100 % ​

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Inventories, Net
Schedule of Inventories	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Purchased Parts and Components ​ $ 10,018,357 ​ $ 10,399,527 Work-in-Process ​ 358,857 ​ 344,242 Finished Goods ​ 2,255,516 ​ 1,941,689 Less: Reserve for Obsolescence ​ (1,771,051) ​ (1,417,489) ​ ​ ​ ​ ​ ​ ​ Inventories, Net ​ $ 10,861,679 ​ $ 11,267,969

Fixed Assets (Tables)

Fixed Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Fixed Assets
Schedule of Fixed Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Tooling and Manufacturing Equipment ​ $ 8,050,657 ​ $ 6,065,445 Leaseholds ​ 1,366,128 ​ 826,329 Computers and Purchased Software ​ 765,237 ​ 760,256 Furniture and Equipment ​ 2,505,091 ​ 2,487,650 ​ ​ 12,687,113 ​ 10,139,680 Less: Accumulated Depreciation ​ (6,547,174) ​ (6,261,175) Fixed Assets, Net ​ $ 6,139,939 ​ $ 3,878,505 ​

Technology Licenses, Net (Table

Technology Licenses, Net (Tables)	3 Months Ended
	Mar. 31, 2023
Licenses [Member]
Schedule of Finite-Lived Intangible Assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Licenses ​ $ 32,443,356 ​ $ 2,443,356 Additions ​ — ​ 30,000,000 Less: Accumulated Amortization ​ (3,111,551) ​ (2,284,667) Licenses, Net ​ $ 29,331,805 ​ $ 30,158,689 ​

Other Assets (Tables)

Other Assets (Tables)	3 Months Ended
	Mar. 31, 2023
Other Assets
Schedule of other assets	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 Private Corporation Investments ​ $ 450,000 ​ $ 450,000 Additions ​ ​ 100,000 ​ ​ — Total Private Corporation Investments (at cost) ​ ​ 550,000 ​ ​ 450,000 ​ ​ ​ ​ ​ ​ ​ Software Development Costs ​ ​ 875,000 ​ ​ 750,000 Additions ​ ​ 125,000 ​ ​ 125,000 Less: Accumulated Amortization ​ ​ (430,556) ​ ​ (375,000) Software Development Costs, Net ​ ​ 569,444 ​ ​ 500,000 ​ ​ ​ ​ ​ ​ ​ Unamortized Common Stock Expense included in Long-Term Prepaid Expenses ​ ​ 596,552 ​ ​ 631,143 ​ ​ ​ ​ ​ ​ ​ Total Other Assets ​ $ 1,715,996 ​ $ 1,581,143 ​

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2023
Accrued Expenses
Schedule of Accrued Expenses	Accrued expenses consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ December 31, ​ 2023 2022 ​ ​ ​ ​ ​ ​ ​ Accrued Wages and Related Costs ​ $ 580,002 ​ $ 843,537 Accrued Professional Services ​ 189,760 ​ 263,800 Accrued Warranty Obligations ​ 194,427 ​ 159,927 Other Accrued Expenses ​ 502,025 ​ 403,275 ​ ​ ​ ​ ​ ​ ​ Total ​ $ 1,466,214 ​ $ 1,670,539 ​
Schedule of changes in accrued warranty obligations	The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2023 were as follows: ​ ​ ​ ​ ​ Accrued Warranty Obligations at December 31, 2022 ​ $ 159,927 Reductions for Settling Warranties ​ (91,241) Warranties Issued During Year ​ 125,741 ​ ​ ​ ​ Accrued Warranty Obligations at March 31, 2023 ​ $ 194,427

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Stock-Based Compensation
Schedule of Summary of Stock Option Activity	A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 12) for the three months ended March 31, 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted ​ Average ​ ​ Number of ​ Average ​ Remaining Life ​ Options Exercise Price (years) Outstanding at December 31, 2022 2,805,673 ​ $ 7.80 7.28 Granted 25,000 ​ 3.64 Exercised (2,512) ​ 1.33 Expired or Forfeited (8,853) ​ 15.23 ​ ​ ​ ​ ​ ​ ​ ​ Outstanding at March 31, 2023 2,819,308 ​ $ 7.74 7.07 ​

Long-term Incentive Plan (Table

Long-term Incentive Plan (Tables)	3 Months Ended
	Mar. 31, 2023
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)	3 Months Ended
	Mar. 31, 2023
Right-of-Use Assets and Liabilities
Schedule of Future lease payments under operating leases	Future lease payments under operating leases as of March 31, 2023 were as follows: ​ ​ ​ ​ ​ 2023 ​ $ 523,238 2024 ​ 191,120 2025 ​ 132,982 Total Future Lease Payments ​ 847,340 Less: Imputed Interest ​ (55,736) Total Lease Liability Balance ​ $ 791,604 ​

Basis of Presentation - Reclass

Basis of Presentation - Reclassification of results of operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cost of Sales - Depreciation and Amortization	$ 232,916	$ 223,785
Gross Profit	876,006	475,668
Operating Expenses:
Research and Development	3,069,797	3,103,444
Selling and Marketing	2,539,659	2,023,435
General and Administrative	5,131,824	5,453,833
Depreciation and Amortization	964,265	259,245
Impairment of Patents and Trademarks	17,666	49,603
Total Operating Expenses	11,723,211	10,889,560
Loss From Operations	(10,847,205)	(10,413,892)
Total Other Expense, Net	606,622	(92,109)
Net loss	$ (10,240,583)	(10,506,001)
Previously Reported [Member]
Sales of Products		2,503,051
Cost of Sales - Products Sold		1,863,697
Gross Profit		639,354
Operating Expenses:
Research and Development		3,103,444
Selling and Marketing		2,023,435
General and Administrative		5,453,833
Depreciation and Amortization		422,931
Impairment of Patents and Trademarks		49,603
Total Operating Expenses		11,053,246
Loss From Operations		(10,413,892)
Total Other Expense, Net		(92,109)
Net loss		(10,506,001)
Revision of Prior Period, Error Correction, Adjustment [Member]
Cost of Sales - Products Sold		(60,099)
Cost of Sales - Depreciation and Amortization		223,785
Gross Profit		163,686
Operating Expenses:
Depreciation and Amortization		(163,686)
Total Operating Expenses		(163,686)
Revision of Prior Period, As Restated [Member]
Sales of Products		2,503,051
Cost of Sales - Products Sold		1,803,598
Cost of Sales - Depreciation and Amortization		223,785
Gross Profit		475,668
Operating Expenses:
Research and Development		3,103,444
Selling and Marketing		2,023,435
General and Administrative		5,453,833
Depreciation and Amortization		259,245
Impairment of Patents and Trademarks		49,603
Total Operating Expenses		10,889,560
Loss From Operations		(10,413,892)
Total Other Expense, Net		(92,109)
Net loss		$ (10,506,001)

Basis of Presentation (Details)

Basis of Presentation (Details) - customer	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Total revenues | Sales of Products
Number of customers	1	1
Accounts Receivable
Number of customers	1		1
One customer | Total revenues | Sales of Products | Customer Concentration Risk
Concentration Risk, Percentage	74%	11%
One customer | Accounts Receivable | Customer Concentration Risk
Concentration Risk, Percentage	50%		26%

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) product	Mar. 31, 2022 USD ($)
Number of major product lines | product	2
Products Sales
Revenue | $	$ 4,191,361	$ 2,503,051

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Point-in-Time
Revenue Performance Obligation Percentage	100%	100%

Revenue Recognition and Contr_5

Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Standard product warranty term	12 months
Revenue, remaining performance obligations	$ 165,000
Revenue, performance obligation, total transaction price	800,000
Accrued Revenues in Excess of Billings	$ 192,177	$ 269,129
OEM products and waveguide sales
Standard product warranty term	18 months

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Loss Per Share
Anti-dilutive shares	8,603,308	8,611,365

Inventories, Net - Components o

Inventories, Net - Components of Inventories (Detail) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Inventories, Net
Purchased Parts and Components	$ 10,018,357	$ 10,399,527
Work-in-Process	358,857	344,242
Finished Goods	2,255,516	1,941,689
Less: Reserve for Obsolescence	(1,771,051)	(1,417,489)
Inventories, Net	$ 10,861,679	$ 11,267,969

Fixed Assets - Schedule of Fixe

Fixed Assets - Schedule of Fixed Assets (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Fixed Assets, Gross	$ 12,687,113	$ 10,139,680
Less: Accumulated Depreciation	(6,547,174)	(6,261,175)
Fixed Assets, Net	6,139,939	3,878,505
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Fixed Assets, Gross	8,050,657	6,065,445
Leaseholds
Property, Plant and Equipment [Line Items]
Fixed Assets, Gross	1,366,128	826,329
Computers and Purchased Software
Property, Plant and Equipment [Line Items]
Fixed Assets, Gross	765,237	760,256
Furniture and Equipment
Property, Plant and Equipment [Line Items]
Fixed Assets, Gross	$ 2,505,091	$ 2,487,650

Fixed Assets - Additional Infor

Fixed Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Property, Plant and Equipment [Line Items]
Final investment for system upgradation	$ 2,284,968	$ 57,758
Depreciation expense not included in Cost of Sales	102,451	$ 117,087
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Final investment for system upgradation	$ 2,200,000

Technology Licenses, Net (Detai

Technology Licenses, Net (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Licenses Net [Line Items]
Licenses, Net	$ 29,331,805	$ 30,158,689
Licensing agreements
Licenses Net [Line Items]
Licenses	32,443,356	2,443,356
Additions		30,000,000
Less: Accumulated Amortization	(3,111,551)	(2,284,667)
Licenses, Net	$ 29,331,805	$ 30,158,689

Technology Licenses, Net - Addi

Technology Licenses, Net - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Licensing agreements
Licenses Net [Line Items]
Amortization expense	$ 826,884	$ 56,700

Other Assets (Details)

Other Assets (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Oct. 31, 2021	Dec. 31, 2020
Private Corporation Investments	$ 450,000	$ 450,000
Additions	100,000
Total Private Corporation Investments (at cost)	550,000	450,000
Additions	6,139,939	3,878,505
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses	596,552	631,143
Total Other Assets	1,715,996	1,581,143
Software Development
Software Development Costs	875,000	750,000
Additions	125,000	125,000	$ 125,000	$ 250,000	$ 500,000
Less: Accumulated Amortization	(430,556)	(375,000)
Software Development Costs, Net	$ 569,444	$ 500,000

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2020	Dec. 31, 2022	Dec. 31, 2021	Oct. 31, 2021
Other assets [Line Items]
Fixed Assets, Net	$ 6,139,939			$ 3,878,505
Final investment for system upgradation	$ 182,628	$ 34,469
Amortization period (in months)	36 months
Capitalized Software Development Costs
Other assets [Line Items]
Amortization of Intangible Assets	$ 55,556	41,666
Software Development
Other assets [Line Items]
Fixed Assets, Net	125,000	$ 125,000	$ 500,000	$ 125,000		$ 250,000
Useful life			36 months
Final investment for system upgradation	125,000
Amortizable amount of additional upgrades	500,000
Private Corporation
Other assets [Line Items]
Purchase Price	$ 100,000				$ 200,000
Equity Method Investment, Ownership Percentage	2%				3%

Accrued Expenses - Components o

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Accrued Expenses
Accrued Wages and Related Costs	$ 580,002	$ 843,537
Accrued Professional Services	189,760	263,800
Accrued Warranty Obligations	194,427	159,927
Other Accrued Expenses	502,025	403,275
Total	$ 1,466,214	$ 1,670,539

Accrued Expenses - Changes in A

Accrued Expenses - Changes in Accrued Warranty Obligations (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Accrued Expenses
Accrued Warranty Obligations, beginning of period	$ 159,927
Reductions for Settling Warranties	(91,241)
Warranties Issued During Year	125,741
Accrued Warranty Obligations, end of period	$ 194,427

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Standard product warranty term	12 months
Other Accrued Expenses	$ 502,025	$ 403,275
Next Generation Smart Glasses
Other Accrued Expenses	$ 435,000

Capital Stock (Details)

Capital Stock (Details) - USD ($)		3 Months Ended
	Mar. 02, 2022	Mar. 31, 2023	Dec. 31, 2022
Preferred Stock, Shares Authorized		5,000,000	5,000,000
Preferred Stock, Par Value		$ 0.001	$ 0.001
Common Stock, Shares Authorized		100,000,000	100,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001	$ 0.001
Common Stock, Shares, Issued		63,787,858	63,783,779
Common Stock, Shares, Outstanding		63,208,186	63,319,107
Aggregate value of shares authorized	$ 25
Share repurchase program term	1 year
Purchases of Treasury Stock (in Shares)		115,000
Average cost		$ 4.06
Commission cost per share		$ 0.03
Common shares held in treasury		579,672	464,672
Series A Preferred Stock
Preferred Stock, Shares Authorized		49,626	49,626
Preferred Stock, Shares Issued		0	0
Preferred Stock, Shares Outstanding		0	0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Weighted Average Remaining Life (Years)
Options Outstanding, Weighted Average Remaining Life (Years)	7 years 25 days	7 years 3 months 10 days
Stock options
Number of Options
Outstanding, Beginning Balance	2,805,673
Granted	25,000
Exercised	(2,512)
Expired or Forfeited	(8,853)
Outstanding, Ending Balance	2,819,308	2,805,673
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 7.80
Granted	3.64
Exercised	1.33
Expired or Forfeited	15.23
Outstanding, Ending Balance	$ 7.74	$ 7.80

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Stock-Based Compensation Plans
Exercisable Options Outstanding Shares	1,642,429
Weighted average exercise price per share, Exercisable	$ 6.94
Weighted average remaining contractual term on vested options	6 years 2 months 12 days
Unvested Options Outstanding, Shares	1,176,879
Unvested Options Outstanding, Weighted average exercise price	$ 8.84
Unvested Options Outstanding Weighted average remaining life (years)	8 years 3 months 18 days
Unrecognized stock compensation expense	$ 7,393,432
Weighted average recognition period	2 years 3 months 18 days
Share-Based compensation excludes the long term incentive plan expense	$ 1,129,566	$ 1,350,610

Long-term Incentive Plan (Detai

Long-term Incentive Plan (Details) - USD ($)		3 Months Ended
	Mar. 17, 2021	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Long-term Incentive Plan
Exercise price		$ 6.94
Share-based Compensation		$ 3,667,509	$ 4,319,748
Options available in equity market and operational milestone		5,409,000
Unrecognized stock compensation expense		$ 7,393,432
Weighted average recognition period		2 years 3 months 18 days
Equity Market Capitalization Targets
Long-term Incentive Plan
Options available in equity market and operational milestone		2,704,500
Annual Revenue Targets
Long-term Incentive Plan
Options available in equity market and operational milestone		1,893,150
Annual EBITDA Margins Before Non-Cash Charges Targets
Long-term Incentive Plan
Options available in equity market and operational milestone		811,350
Stock options | Long-term Incentive Plan 2021
Long-term Incentive Plan
Granted	5,784,000
Exercise price	$ 19
Share-based Compensation		$ 2,537,944	$ 2,969,138
Stock options | Vest immediately | Long-term Incentive Plan 2021
Long-term Incentive Plan
Shares vesting	375,000
Stock options tied to equity market capitalization milestone
Long-term Incentive Plan
Amount of threshold additional stock based compensation expense				$ 34,100,000
Unrecognized stock compensation expense		$ 14,671,988
Stock options tied to equity market capitalization milestone | Minimum
Long-term Incentive Plan
Weighted average recognition period		3 years
Stock options tied to equity market capitalization milestone | Maximum
Long-term Incentive Plan
Weighted average recognition period		4 years

Long-term Incentive Plan - LTIP

Long-term Incentive Plan - LTIP (Details)	3 Months Ended
	Mar. 31, 2023 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)	Mar. 31, 2023 USD ($)
Right-of-Use Assets and Liabilities
2023	$ 523,238
2024	191,120
2025	132,982
Total Future Lease Payments	847,340
Less: Imputed Interest	(55,736)
Total Lease Liability Balance	$ 791,604

Right-of-Use Assets and Liabi_4

Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Right-of-Use Assets and Liabilities
Operating lease costs	$ 203,339	$ 162,365
Weighted average discount rate	7.10%
Weighted average remaining term	1 year 8 months 12 days