Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-35955 | |
Entity Registrant Name | Vuzix Corp | |
Entity Incorporation, State or Country Code | DE | |
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 $0.001 | |
Trading Symbol | VUZI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 63,327,608 | |
Entity Central Index Key | 0001463972 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and Cash Equivalents | $ 38,049,037 | $ 72,563,943 |
Accounts Receivable, Net | 6,951,934 | 3,558,971 |
Accrued Revenues in Excess of Billings | 437,275 | 269,129 |
Employee Retention Credit Receivable | 466,705 | |
Inventories, Net | 11,301,878 | 11,267,969 |
Manufacturing Vendor Prepayments | 621,029 | 998,671 |
Prepaid Expenses and Other Assets | 2,249,102 | 2,115,853 |
Total Current Assets | 59,610,255 | 91,241,241 |
Long-Term Assets | ||
Fixed Assets, Net | 7,049,729 | 3,878,505 |
Operating Lease Right-of-Use Asset | 464,658 | 956,165 |
Patents and Trademarks, Net | 2,531,267 | 2,220,094 |
Technology Licenses, Net | 27,677,936 | 30,158,689 |
Intangible Asset, Net | 570,523 | 675,313 |
Goodwill | 1,601,400 | 1,601,400 |
Other Assets, Net | 1,482,269 | 1,581,143 |
Total Assets | 100,988,037 | 132,312,550 |
Current Liabilities | ||
Accounts Payable | 1,853,263 | 1,211,747 |
Unearned Revenue | 102,149 | 29,064 |
Accrued Expenses | 838,249 | 1,670,539 |
Licensing Fees Commitment | 2,000,000 | 11,500,000 |
Income and Other Taxes Payable | 54,061 | 214,997 |
Operating Lease Right-of-Use Liability | 296,467 | 651,011 |
Total Current Liabilities | 5,144,189 | 15,277,358 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 168,191 | 305,154 |
Total Liabilities | 5,312,380 | 15,582,512 |
Stockholders' Equity | ||
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 63,907,280 shares issued and 63,327,608 shares outstanding as of September 30, 2023 and 63,783,779 shares issued and 63,319,107 shares outstanding as of December 31, 2022. | 63,907 | 63,783 |
Additional Paid-in Capital | 372,192,478 | 362,507,715 |
Accumulated Deficit | (274,104,227) | (243,835,716) |
Treasury Stock, at cost, 579,672 shares as of September 30, 2023 and 464,672 shares as of December 31, 2022. | (2,476,501) | (2,005,744) |
Total Stockholders' Equity | 95,675,657 | 116,730,038 |
Total Liabilities and Stockholders' Equity | $ 100,988,037 | $ 132,312,550 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 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 | 63,907,280 | 63,783,779 |
Common Stock, Shares Outstanding | 63,327,608 | 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 | $ (2) | 12,087,836 | 12,087,834 | ||
Stock-Based Compensation Expense (in shares) | (3,017) | ||||
Stock Option Exercises | $ 107 | 48,398 | 48,505 | ||
Stock Option Exercises (in shares) | 107,084 | ||||
Purchases of Treasury Stock | $ (251,057) | (251,057) | |||
Purchases of Treasury Stock (in shares) | (36,685) | ||||
Net Loss | (30,004,667) | (30,004,667) | |||
Balance at Sep. 30, 2022 | $ 63,777 | 358,872,631 | (233,076,810) | $ (251,057) | 125,608,541 |
Balance (in shares) at Sep. 30, 2022 | 63,776,335 | (36,685) | |||
Balance at Jun. 30, 2022 | $ 64,026 | 355,322,990 | (223,599,811) | $ (251,057) | 131,536,148 |
Balance (in shares) at Jun. 30, 2022 | 64,025,640 | (36,685) | |||
Stock-Based Compensation Expense | $ (291) | 3,549,683 | 3,549,392 | ||
Stock-Based Compensation Expense (in shares) | (291,667) | ||||
Stock Option Exercises | $ 42 | (42) | |||
Stock Option Exercises (in shares) | 42,362 | ||||
Net Loss | (9,476,999) | (9,476,999) | |||
Balance at Sep. 30, 2022 | $ 63,777 | 358,872,631 | (233,076,810) | $ (251,057) | 125,608,541 |
Balance (in shares) at Sep. 30, 2022 | 63,776,335 | (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 | $ 97 | 9,663,593 | 9,663,690 | ||
Stock-Based Compensation Expense (in shares) | 96,525 | ||||
Stock Option Exercises | $ 27 | 21,170 | 21,197 | ||
Stock Option Exercises (in shares) | 26,976 | ||||
Purchases of Treasury Stock | $ (470,757) | (470,757) | |||
Purchases of Treasury Stock (in shares) | (115,000) | ||||
Net Loss | (30,268,511) | (30,268,511) | |||
Balance at Sep. 30, 2023 | $ 63,907 | 372,192,478 | (274,104,227) | $ (2,476,501) | 95,675,657 |
Balance (in shares) at Sep. 30, 2023 | 63,907,280 | (579,672) | |||
Balance at Jun. 30, 2023 | $ 63,899 | 369,072,625 | (263,121,219) | $ (2,476,501) | 103,538,804 |
Balance (in shares) at Jun. 30, 2023 | 63,898,889 | (579,672) | |||
Stock-Based Compensation Expense | 3,113,211 | 3,113,211 | |||
Stock Option Exercises | $ 8 | 6,642 | 6,650 | ||
Stock Option Exercises (in shares) | 8,391 | ||||
Net Loss | (10,983,008) | (10,983,008) | |||
Balance at Sep. 30, 2023 | $ 63,907 | $ 372,192,478 | $ (274,104,227) | $ (2,476,501) | $ 95,675,657 |
Balance (in shares) at Sep. 30, 2023 | 63,907,280 | (579,672) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Sales: | ||||
Total Sales | $ 2,180,007 | $ 3,426,823 | $ 11,062,203 | $ 8,937,633 |
Cost of Sales: | ||||
Cost of Sales - Depreciation and Amortization | 232,891 | 221,772 | 723,745 | 676,720 |
Total Cost of Sales | 2,417,551 | 2,558,602 | 9,451,356 | 7,328,335 |
Gross Profit (Loss) | (237,544) | 868,221 | 1,610,847 | 1,609,298 |
Operating Expenses: | ||||
Research and Development | 2,912,562 | 3,440,685 | 8,818,911 | 9,540,272 |
Selling and Marketing | 2,832,031 | 1,980,748 | 7,881,612 | 5,895,332 |
General and Administrative | 4,466,850 | 4,854,014 | 13,858,996 | 15,307,242 |
Depreciation and Amortization | 959,353 | 510,099 | 2,896,840 | 1,149,046 |
Impairment of Patents and Trademarks | 24,204 | 48,075 | 41,869 | 97,676 |
Total Operating Expenses | 11,195,000 | 10,833,621 | 33,498,228 | 31,989,568 |
Loss From Operations | (11,432,544) | (9,965,400) | (31,887,381) | (30,380,270) |
Other Income (Expense): | ||||
Investment Income | 500,067 | 572,721 | 1,824,773 | 690,028 |
Income and Other Taxes | (21,715) | (19,768) | (144,930) | (98,727) |
Foreign Exchange Loss | (28,816) | (64,552) | (60,973) | (215,698) |
Total Other Income, Net | 449,536 | 488,401 | 1,618,870 | 375,603 |
Loss Before Provision for Income Taxes | (10,983,008) | (9,476,999) | (30,268,511) | (30,004,667) |
Net Loss | $ (10,983,008) | $ (9,476,999) | $ (30,268,511) | $ (30,004,667) |
Basic Loss per Common Share | $ (0.17) | $ (0.15) | $ (0.48) | $ (0.47) |
Diluted Loss per Common Share | $ (0.17) | $ (0.15) | $ (0.48) | $ (0.47) |
Weighted-average Shares Outstanding - Basic | 63,324,942 | 63,776,154 | 63,257,863 | 63,724,982 |
Weighted-average Shares Outstanding - Diluted | 63,324,942 | 63,776,154 | 63,257,863 | 63,724,982 |
Sales of Products | ||||
Sales: | ||||
Total Sales | $ 1,371,851 | $ 2,537,539 | $ 9,988,374 | $ 7,939,483 |
Cost of Sales: | ||||
Cost of Sales | 1,884,239 | 2,034,123 | 8,270,658 | 6,289,612 |
Sales of Engineering Services | ||||
Sales: | ||||
Total Sales | 808,156 | 889,284 | 1,073,829 | 998,150 |
Cost of Sales: | ||||
Cost of Sales | $ 300,421 | $ 302,707 | $ 456,953 | $ 362,003 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows From (Used In) Operating Activities | ||
Net Loss | $ (30,268,511) | $ (30,004,667) |
Non-Cash Adjustments | ||
Depreciation and Amortization | 3,620,585 | 1,825,766 |
Stock-Based Compensation | 9,797,274 | 12,016,334 |
Impairment of Patents and Trademarks | 41,869 | 97,676 |
Change in Inventory Reserve for Obsolescence | 485,183 | |
(Increase) Decrease in Operating Assets | ||
Accounts Receivable | (3,392,963) | (875,607) |
Accrued Revenues in Excess of Billings | (168,146) | (393,250) |
Employee Retention Credit Receivable | 466,705 | |
Inventories | (519,092) | (77,490) |
Manufacturing Vendor Prepayments | 377,642 | 73,330 |
Prepaid Expenses and Other Assets | (295,566) | (417,298) |
Increase (Decrease) in Operating Liabilities | ||
Accounts Payable | 641,516 | 141,828 |
Accrued Expenses | (832,290) | (244,935) |
Unearned Revenue | 73,086 | (3,425) |
Income and Other Taxes Payable | (160,935) | (73,637) |
Net Cash Flows Used in Operating Activities | (20,133,643) | (17,935,375) |
Cash Flows From (Used In) Investing Activities | ||
Purchases of Fixed Assets | (3,608,801) | (5,203,562) |
Investments in Patents and Trademarks | (497,901) | (362,981) |
Investments in Licenses, Intangibles and Other Assets | (9,500,000) | (6,125,000) |
Investments in Software Development | (125,000) | |
Investments in Other Assets | (200,000) | |
Net Cash Flows Used in Investing Activities | (13,931,702) | (11,691,543) |
Cash Flows From (Used In) Investing Activities | ||
Proceeds from Exercise of Stock Options | 21,196 | 48,505 |
Purchases of Treasury Stock | (470,757) | (251,057) |
Net Cash Flows Used in Financing Activities | (449,561) | (202,552) |
Net Decrease in Cash and Cash Equivalents | (34,514,906) | (29,829,470) |
Cash and Cash Equivalents - Beginning of Period | 72,563,943 | 120,203,873 |
Cash and Cash Equivalents - End of Period | 38,049,037 | 90,374,403 |
Supplemental Disclosures | ||
Unamortized Common Stock Expense included in Prepaid Expenses and Other Assets | 1,126,777 | 1,204,942 |
Non-Cash Investment in Licenses | 2,000,000 | 9,000,000 |
Stock-Based Compensation Expense - Expensed less Previously Issued | $ 133,584 | $ (71,502) |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 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. The results of the Company’s operations for the three and nine months ended September 30, 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. Customer Concentrations For the three months ended September 30, 2023, one customer represented 21% of total product revenue and three customers represented 54%, 18% and 14% of engineering services revenue. For the three months ended September 30, 2022, one customer represented 21% of total product revenue and two customers represented 100% of engineering services revenue. For the nine months ended September 30, 2023, two customers represented 34% and 30% of total product revenue and four customers represented 41%, 14%, 12%, and 11% of engineering services revenue. For the nine months ended September 30, 2022, one customer represented 20% of total product revenue and two customers represented 100% of engineering services revenue. As of September 30, 2023, two customers represented 54% and 22% 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 | 9 Months Ended |
Sep. 30, 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. The following table summarizes the revenue recognized by major product line: Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Products Sales $ 1,371,851 $ 2,537,539 $ 9,988,374 $ 7,939,483 Engineering Services 808,156 889,284 1,073,829 998,150 Total Revenue $ 2,180,007 $ 3,426,823 $ 11,062,203 $ 8,937,633 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 our product and general payment terms that are between Net 30 and Net 60 days. For our engineering services, we must develop estimates and assumptions that require judgment to determine the underlying stand-alone selling price for each performance obligation, which determines how the transaction price is allocated among the performance obligations. The Company allocated the transaction price to each distinct performance obligation using the expected cost-plus margin approach to estimate the standalone selling price. Assumptions used in this method include the projected costs of each distinct performance obligation. 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 nine months ended September 30: % of Total Net Sales 2023 2022 Point-in-Time 90 % 89 % Over Time – Input Method 10 % 11 % Total 100 % 100 % Remaining Performance Obligations As of September 30, 2023, the Company had approximately $3,200,000 of remaining performance obligations under four current waveguide development projects, which represents the remainder of transaction prices totaling approximately $4,400,000 under these development agreements, which commenced in 2022 and 2023, less revenue recognized under percentage of completion to date. The Company expects to recognize the remaining revenue related to these projects, based upon expected due dates, at 18% in the fourth quarter 2024 2025 The Company had no material outstanding performance obligations related to product sales, other than its standard product warranty. |
Loss Per Share
Loss Per Share | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 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. As of September 30, 2023 and 2022, there were 8,695,308 and 8,532,349 common stock share equivalents, for the three and nine months then ended, respectively, potentially issuable from the exercise of stock options that could dilute basic earnings per share in the future. |
Inventories, Net
Inventories, Net | 9 Months Ended |
Sep. 30, 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: September 30, December 31, 2023 2022 Purchased Parts and Components $ 8,471,998 $ 10,399,527 Work-in-Process 530,558 344,242 Finished Goods 4,201,994 1,941,689 Less: Reserve for Obsolescence (1,902,672) (1,417,489) Inventories, Net $ 11,301,878 $ 11,267,969 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2023 | |
Fixed Assets | |
Fixed Assets | Note 5 – Fixed Assets September 30, December 31, 2023 2022 Tooling and Manufacturing Equipment $ 8,966,430 $ 6,065,445 Leaseholds 1,764,946 826,329 Computers and Purchased Software 817,207 760,256 Furniture and Equipment 2,580,907 2,487,650 14,129,490 10,139,680 Less: Accumulated Depreciation (7,079,761) (6,261,175) Fixed Assets, Net $ 7,049,729 $ 3,878,505 During the nine months ended September 30, 2023, the Company invested $3,608,801 in tooling and manufacturing equipment and leasehold improvements, mostly attributable to the Company’s new waveguide expansion project. Construction on the Company’s new facility began late in December 2022 and the Company expects the construction to be completed by the end of November 2023. Total depreciation expense for fixed assets, not included in cost of sales, for the three months ended September 30, 2023, and 2022 was $102,677 and $97,449, respectively. Total depreciation expense for fixed assets, not included in cost of sales, for the nine months ended September 30, 2023, and 2022 was $317,061 and $326,480, respectively. |
Technology Licenses, Net
Technology Licenses, Net | 9 Months Ended |
Sep. 30, 2023 | |
Technology Licenses, Net | |
Technology Licenses, Net | Note 6 – Technology Licenses, Net The changes in the Company’s Technology Licenses for the nine months ended September 30, 2023, were as follows: September 30, December 31, 2023 2022 Licenses $ 32,443,356 $ 2,443,356 Additions — 30,000,000 Less: Accumulated Amortization (4,765,420) (2,284,667) Licenses, Net $ 27,677,936 $ 30,158,689 Total amortization expense related to technology licenses, not included in cost of sales, for the three months ended September 30, 2023, and 2022 was $776,667 and $375,000, respectively. Total amortization expense related to technology licenses for the nine months ended September 30, 2023, and 2022 was $2,480,753 and $562,500, respectively. The Company signed a series of agreements with Atomistic SAS in 2022, which provided for an exclusive license of key micro-LED technology for cash commitments totaling $30 million along with performance-based cash and equity issuance commitments to be made by the Company relating to certain deliverables and the achievement of milestones by Atomistic, as further discussed in Note 10 – Capital Stock. These intangible technology license assets are to be amortized over a ten-year period. As of September 30, 2023, there is a remaining funding commitment of $2,000,000 associated with these licenses, which will be paid over the next three months |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets | |
Other Assets | Note 7 - Other Assets The changes in the Company’s Other Assets for the nine months ended September 30, 2023, were as follows: September 30, December 31, 2023 2022 Private Corporation Investments $ 450,000 $ 450,000 Additions 200,000 — Total Private Corporation Investments (at cost) 650,000 450,000 Software Development Costs 875,000 750,000 Additions 125,000 125,000 Less: Accumulated Amortization (597,222) (375,000) Software Development Costs, Net 402,778 500,000 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 429,491 631,143 Total Other Assets $ 1,482,269 $ 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 nine months ended September 30, 2023, the Company purchased an additional $100,000 of preferred stock in this corporation through a subsequent round of funding in order to retain a 2% ownership interest. In June 2023, the Company purchased $100,000 of preferred stock, along with warrants, in a UK-based public company developing new semiconductor materials for displays. The investment represents less than a 1% 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 completed 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 span of thirty-six thirty-six 36 Total amortization expense related to all software updates, included in cost of sales, for the three months ended September 30, 2023, and 2022 were $83,333 and $63,868, respectively. Total amortization expense related to all software updates for the nine months ended September 30, 2023, and 2022 were $222,222 and $194,751, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Accrued Expenses | Note 8 – Accrued Expenses Accrued expenses consisted of the following: September 30, December 31, 2023 2022 Accrued Wages and Related Costs $ 398,768 $ 843,537 Accrued Professional Services 216,475 263,800 Accrued Warranty Obligations 215,888 159,927 Other Accrued Expenses 7,118 403,275 Total $ 838,249 $ 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 nine months ended September 30, 2023, were as follows: Accrued Warranty Obligations at December 31, 2022 $ 159,927 Reductions for Settling Warranties (243,690) Warranties Issued During Year 299,651 Accrued Warranty Obligations at September 30, 2023 $ 215,888 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 | 9 Months Ended |
Sep. 30, 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 September 30, 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 September 30, 2023, and December 31, 2022. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 63,907,280 shares issued and 63,327,608 shares outstanding as of September 30, 2023, and 63,783,779 shares issued and 63,319,107 shares outstanding as of December 31, 2022. In connection with the Atomistic Technology Licenses discussed in Note 6, the Company will, upon completion of certain deliverables and the achievement of milestones contained in the Atomistic Agreements, be committed to pay $2,500,000 and to issue, depending on the Company’s share price within a $13.00 to $8.00 range at the time of their issuance, a minimum of 1,750,000 up to a maximum of 2,874,754 common shares 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 and Vuzix ultimately owning 100% of Atomistic. The share issuances by the Company are expected to be issued over the next three fifteen months Treasury Stock |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 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 180,000 4.43 Exercised (28,240) 1.33 Expired or Forfeited (46,125) 11.33 Outstanding at September 30, 2023 2,911,308 $ 7.60 6.75 The weighted average remaining contractual term for all options as of September 30, 2023, and December 31, 2022, was 6.75 years and 7.28 years, respectively. As of September 30, 2023, there were 1,913,522 options that were fully vested and exercisable at a weighted average exercise price of $7.10 per share. The weighted average remaining contractual term of the vested options is 6.0 years. As of September 30, 2023, there were 997,786 unvested options exercisable at a weighted average exercise price of $8.53 per share. The weighted average remaining contractual term of the unvested options is 8.2 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. As of September 30, 2023, the Company had $6,071,652 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 2.0 years. During the nine months ended September 30, 2023, the Company issued 96,525 shares of common stock to its five independent board members as part of their annual retainer for services covering the period of July 2023 to June 2024. The fair market value on the date of those awards of the stock issued was $5.18, resulting in an aggregate fair value of approximately $500,000. The fair market value of these awards is expensed over twelve (12) months, beginning on July 1, 2023. For the three months ended September 30, 2023, and 2022, the Company recorded total stock-based compensation expense, including stock awards but excluding stock option awards under the Company’s LTIP, of $1,110,331 and $1,157,556, respectively. For the nine months ended September 30, 2023, and 2022, the Company recorded total stock-based compensation expense, including stock awards but excluding stock option awards under the Company’s LTIP, of $3,322,961 and $3,730,899, respectively. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 9 Months Ended |
Sep. 30, 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 September 30, 2023, and 2022, the Company recorded non-cash stock-based compensation expense of $2,186,682 and $2,658,294, respectively, for options that vested or are probable to vest. For the nine months ended September 30, 2023, and 2022, the Company recorded non-cash stock-based compensation expense of $6,474,313 and $8,285,435, 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 September 30, 2023, we had $10,735,619 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 September 30, 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 Target 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 | 9 Months Ended |
Sep. 30, 2023 | |
Litigation | |
Litigation | Note 13 – Litigation We are not currently involved in any actual or pending legal proceedings or litigation 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 | 9 Months Ended |
Sep. 30, 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 September 30, 2023, were as follows: 2023 (3 months remaining) $ 174,413 2024 191,120 2025 132,982 Total Future Lease Payments 498,515 Less: Imputed Interest (33,857) Total Lease Liability Balance $ 464,658 Operating lease costs under the operating leases totaled $209,475 and $160,767 for the three months ended September 30, 2023, and 2022, respectively. Operating lease costs under the operating leases totaled $620,166 and $486,409 for the nine months ended September 30, 2023, and 2022, respectively. As of September 30, 2023, the weighted average discount rate was 8.3% and the weighted average remaining lease term was 1.5 years. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 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. The results of the Company’s operations for the three and nine months ended September 30, 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. |
Customer Concentrations | Customer Concentrations For the three months ended September 30, 2023, one customer represented 21% of total product revenue and three customers represented 54%, 18% and 14% of engineering services revenue. For the three months ended September 30, 2022, one customer represented 21% of total product revenue and two customers represented 100% of engineering services revenue. For the nine months ended September 30, 2023, two customers represented 34% and 30% of total product revenue and four customers represented 41%, 14%, 12%, and 11% of engineering services revenue. For the nine months ended September 30, 2022, one customer represented 20% of total product revenue and two customers represented 100% of engineering services revenue. As of September 30, 2023, two customers represented 54% and 22% 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. |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Revenues Products Sales $ 1,371,851 $ 2,537,539 $ 9,988,374 $ 7,939,483 Engineering Services 808,156 889,284 1,073,829 998,150 Total Revenue $ 2,180,007 $ 3,426,823 $ 11,062,203 $ 8,937,633 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | % of Total Net Sales 2023 2022 Point-in-Time 90 % 89 % Over Time – Input Method 10 % 11 % Total 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventories, Net | |
Schedule of Inventories | September 30, December 31, 2023 2022 Purchased Parts and Components $ 8,471,998 $ 10,399,527 Work-in-Process 530,558 344,242 Finished Goods 4,201,994 1,941,689 Less: Reserve for Obsolescence (1,902,672) (1,417,489) Inventories, Net $ 11,301,878 $ 11,267,969 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fixed Assets | |
Schedule of Fixed Assets | September 30, December 31, 2023 2022 Tooling and Manufacturing Equipment $ 8,966,430 $ 6,065,445 Leaseholds 1,764,946 826,329 Computers and Purchased Software 817,207 760,256 Furniture and Equipment 2,580,907 2,487,650 14,129,490 10,139,680 Less: Accumulated Depreciation (7,079,761) (6,261,175) Fixed Assets, Net $ 7,049,729 $ 3,878,505 |
Technology Licenses, Net (Table
Technology Licenses, Net (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Licenses | |
Schedule of Finite-Lived Intangible Assets | September 30, December 31, 2023 2022 Licenses $ 32,443,356 $ 2,443,356 Additions — 30,000,000 Less: Accumulated Amortization (4,765,420) (2,284,667) Licenses, Net $ 27,677,936 $ 30,158,689 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Assets | |
Schedule of other assets | September 30, December 31, 2023 2022 Private Corporation Investments $ 450,000 $ 450,000 Additions 200,000 — Total Private Corporation Investments (at cost) 650,000 450,000 Software Development Costs 875,000 750,000 Additions 125,000 125,000 Less: Accumulated Amortization (597,222) (375,000) Software Development Costs, Net 402,778 500,000 Unamortized Common Stock Expense included in Long-Term Prepaid Expenses 429,491 631,143 Total Other Assets $ 1,482,269 $ 1,581,143 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Schedule of Accrued Expenses | September 30, December 31, 2023 2022 Accrued Wages and Related Costs $ 398,768 $ 843,537 Accrued Professional Services 216,475 263,800 Accrued Warranty Obligations 215,888 159,927 Other Accrued Expenses 7,118 403,275 Total $ 838,249 $ 1,670,539 |
Schedule of changes in accrued warranty obligations | Accrued Warranty Obligations at December 31, 2022 $ 159,927 Reductions for Settling Warranties (243,690) Warranties Issued During Year 299,651 Accrued Warranty Obligations at September 30, 2023 $ 215,888 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stock-Based Compensation | |
Schedule of summary of stock option activity | Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2022 2,805,673 $ 7.80 7.28 Granted 180,000 4.43 Exercised (28,240) 1.33 Expired or Forfeited (46,125) 11.33 Outstanding at September 30, 2023 2,911,308 $ 7.60 6.75 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 9 Months Ended |
Sep. 30, 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 Target 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) | 9 Months Ended |
Sep. 30, 2023 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | 2023 (3 months remaining) $ 174,413 2024 191,120 2025 132,982 Total Future Lease Payments 498,515 Less: Imputed Interest (33,857) Total Lease Liability Balance $ 464,658 |
Basis of Presentation (Details)
Basis of Presentation (Details) - customer | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Total revenues | Sales of Engineering Services | |||||
Number of customers | 3 | 4 | |||
Total revenues | Sales of Products | |||||
Number of customers | 1 | 1 | 2 | 1 | |
Accounts Receivable | |||||
Number of customers | 2 | 1 | |||
One customer | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 54% | 41% | |||
One customer | Total revenues | Sales of Products | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 21% | 21% | 34% | 20% | |
One customer | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 54% | 26% | |||
Two customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||||
Number of customers | 2 | 2 | |||
Concentration Risk, Percentage | 18% | 100% | 14% | 100% | |
Two customers | Total revenues | Sales of Products | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 30% | ||||
Two customers | Accounts Receivable | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 22% | ||||
Three customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 14% | 12% | |||
Four customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||||
Concentration Risk, Percentage | 11% |
Revenue Recognition and Contr_3
Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) product | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) product | Sep. 30, 2022 USD ($) | |
Number of major product lines | product | 2 | 2 | ||
Revenue | $ 2,180,007 | $ 3,426,823 | $ 11,062,203 | $ 8,937,633 |
Products Sales | ||||
Revenue | 1,371,851 | 2,537,539 | 9,988,374 | 7,939,483 |
Engineering Services | ||||
Revenue | $ 808,156 | $ 889,284 | $ 1,073,829 | $ 998,150 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue performance obligation percentage | 100% | 100% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Percentage | 18% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Percentage | 58% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Percentage | 24% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years | |
Point-in-Time | ||
Revenue performance obligation percentage | 90% | 89% |
Over Time - Input Method | ||
Revenue performance obligation percentage | 10% | 11% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) project | Dec. 31, 2022 USD ($) | |
Standard product warranty term | 12 months | |
Revenue, remaining performance obligations | $ 3,200,000 | |
Number of development projects | project | 4 | |
Revenue, performance obligation, total transaction price | $ 4,400,000 | |
Accrued Revenues in Excess of Billings | $ 437,275 | $ 269,129 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years | |
OEM products and waveguide sales | ||
Standard product warranty term | 18 months |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Loss Per Share | ||
Anti-dilutive shares | 8,695,308 | 8,532,349 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventories, Net | ||
Purchased Parts and Components | $ 8,471,998 | $ 10,399,527 |
Work-in-Process | 530,558 | 344,242 |
Finished Goods | 4,201,994 | 1,941,689 |
Less: Reserve for Obsolescence | (1,902,672) | (1,417,489) |
Inventories, Net | $ 11,301,878 | $ 11,267,969 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 14,129,490 | $ 10,139,680 |
Less: Accumulated Depreciation | (7,079,761) | (6,261,175) |
Fixed Assets, Net | 7,049,729 | 3,878,505 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 8,966,430 | 6,065,445 |
Leaseholds | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 1,764,946 | 826,329 |
Computers and Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | 817,207 | 760,256 |
Furniture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Fixed Assets, Gross | $ 2,580,907 | $ 2,487,650 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Final investment for system upgradation | $ 3,608,801 | $ 5,203,562 | |||
Depreciation expense not included in Cost of Sales | $ 102,677 | $ 97,449 | 317,061 | $ 326,480 | |
Atomistic SAS | |||||
Property, Plant and Equipment [Line Items] | |||||
Exclusive license agreement, total value | $ 30,000,000 | ||||
Tooling and Manufacturing Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Final investment for system upgradation | $ 3,608,801 |
Technology Licenses, Net (Detai
Technology Licenses, Net (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Licenses Net [Line Items] | ||
Licenses, Net | $ 27,677,936 | $ 30,158,689 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 32,443,356 | 2,443,356 |
Additions | 30,000,000 | |
Less: Accumulated Amortization | (4,765,420) | (2,284,667) |
Licenses, Net | $ 27,677,936 | $ 30,158,689 |
Technology Licenses, Net - Addi
Technology Licenses, Net - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Exclusive license agreement, total value | $ 30,000,000 | ||||
Duration of time to pay the commitment fee | 3 months | ||||
Licensing agreements | |||||
Licenses Net [Line Items] | |||||
Amortization expense | $ 776,667 | $ 375,000 | $ 2,480,753 | $ 562,500 | |
Licensing agreements | Atomistic SAS | |||||
Licenses Net [Line Items] | |||||
Licensing fees commitment | $ 2,000,000 | $ 2,000,000 | |||
Amortization Period (Years) | 10 years | 10 years |
Other Assets (Details)
Other Assets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Private Corporation Investments | $ 450,000 | $ 450,000 |
Additions | 200,000 | |
Total Private Corporation Investments (at cost) | 650,000 | 450,000 |
Additions | 7,049,729 | 3,878,505 |
Unamortized Common Stock Expense included in Long-Term Prepaid Expenses | 429,491 | 631,143 |
Total Other Assets | 1,482,269 | 1,581,143 |
Software Development | ||
Software Development Costs | 875,000 | 750,000 |
Additions | 125,000 | 125,000 |
Less: Accumulated Amortization | (597,222) | (375,000) |
Software Development Costs, Net | $ 402,778 | $ 500,000 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||||||
Oct. 31, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2020 | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other assets [Line Items] | |||||||||||
Fixed Assets, Net | $ 7,049,729 | $ 7,049,729 | $ 7,049,729 | $ 3,878,505 | |||||||
Investment for system upgradation | 497,901 | $ 362,981 | |||||||||
Capitalized Software Development Costs | |||||||||||
Other assets [Line Items] | |||||||||||
Amortization of Intangible Assets | 83,333 | $ 63,868 | 222,222 | $ 194,751 | |||||||
Software Development | |||||||||||
Other assets [Line Items] | |||||||||||
Fixed Assets, Net | $ 125,000 | 125,000 | 125,000 | $ 125,000 | |||||||
Useful life | 36 months | ||||||||||
Investment for system upgradation | $ 250,000 | $ 125,000 | $ 125,000 | $ 500,000 | $ 500,000 | ||||||
Amortization period (in months) | 36 months | 36 months | 36 months | ||||||||
Private Corporation | |||||||||||
Other assets [Line Items] | |||||||||||
Purchase price | $ 100,000 | $ 100,000 | $ 100,000 | $ 200,000 | |||||||
Ownership interest | 2% | 2% | 2% | 3% | |||||||
UK Based Public Company | |||||||||||
Other assets [Line Items] | |||||||||||
Purchase price | $ 100,000 | ||||||||||
UK Based Public Company | Maximum | |||||||||||
Other assets [Line Items] | |||||||||||
Ownership interest | 1% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 398,768 | $ 843,537 |
Accrued Professional Services | 216,475 | 263,800 |
Accrued Warranty Obligations | 215,888 | 159,927 |
Other Accrued Expenses | 7,118 | 403,275 |
Total | $ 838,249 | $ 1,670,539 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Accrued Expenses | |
Standard product warranty term | 12 months |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Accrued Expenses | |
Accrued Warranty Obligations, beginning of period | $ 159,927 |
Reductions for Settling Warranties | (243,690) |
Warranties Issued During Year | 299,651 |
Accrued Warranty Obligations, end of period | $ 215,888 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 02, 2022 | Mar. 31, 2023 | Sep. 30, 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 Value | $ 0.001 | $ 0.001 | ||
Common Stock, Shares Issued | 63,907,280 | 63,783,779 | ||
Common Stock, Shares Outstanding | 63,327,608 | 63,319,107 | ||
Aggregate value of shares authorized | $ 25,000,000 | |||
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 | ||
Atomistic SAS | ||||
Ownership percent | 100% | |||
Atomistic agreement | ||||
Amount committed to pay upon the achievement or waiver of performance milestones | $ 2,500,000 | |||
Minimum | Atomistic agreement | ||||
Issuance of shares, performance milestones (in shares) | 1,750,000 | |||
Period of time to issue per agreement | 3 months | |||
Market share price | $ 8 | |||
Maximum | Atomistic agreement | ||||
Issuance of shares, performance milestones (in shares) | 2,874,754 | |||
Period of time to issue per agreement | 15 months | |||
Market share price | $ 13 | |||
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) - Stock options - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Outstanding, Beginning Balance | 2,805,673 | |
Granted | 180,000 | |
Exercised | (28,240) | |
Expired or Forfeited | (46,125) | |
Outstanding, Ending Balance | 2,911,308 | 2,805,673 |
Weighted Average Exercise Price | ||
Outstanding, Beginning Balance | $ 7.80 | |
Granted | 4.43 | |
Exercised | 1.33 | |
Expired or Forfeited | 11.33 | |
Outstanding, Ending Balance | $ 7.60 | $ 7.80 |
Weighted Average Remaining Life (Years) | ||
Options outstanding, weighted average remaining life (years) | 6 years 9 months | 7 years 3 months 10 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) person $ / shares shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) person $ / shares shares | Sep. 30, 2022 USD ($) | |
Stock-Based Compensation Plans | ||||
Exercisable options outstanding shares | shares | 1,913,522 | 1,913,522 | ||
Weighted average exercise price per share, Exercisable | $ / shares | $ 7.10 | $ 7.10 | ||
Weighted average remaining contractual term on vested options | 6 years | |||
Unvested options outstanding, shares | shares | 997,786 | 997,786 | ||
Unvested options outstanding, Weighted average exercise price | $ / shares | $ 8.53 | |||
Unvested options outstanding weighted average remaining life (years) | 8 years 2 months 12 days | |||
Unrecognized stock compensation expense | $ | $ 6,071,652 | $ 6,071,652 | ||
Weighted average recognition period | 2 years | |||
Share-Based compensation excludes the long term incentive plan expense | $ | $ 1,110,331 | $ 1,157,556 | $ 3,322,961 | $ 3,730,899 |
Board of directors and management | ||||
Stock-Based Compensation Plans | ||||
Stock award issued | shares | 96,525 | |||
Number of independent board members | person | 5 | 5 | ||
Weighted average fair value per share | $ / shares | $ 5.18 | |||
Aggregate fair value | $ | $ 500,000 |
Long-Term Incentive Plan (Detai
Long-Term Incentive Plan (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 17, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Long-term Incentive Plan | |||||
Exercise price | $ 7.10 | $ 7.10 | |||
Share-based compensation | $ 9,797,274 | $ 12,016,334 | |||
Options available in equity market and operational milestone | 5,409,000 | ||||
Unrecognized stock compensation expense | $ 6,071,652 | $ 6,071,652 | |||
Weighted average recognition period | 2 years | ||||
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 | 2,186,682 | $ 2,658,294 | $ 6,474,313 | $ 8,285,435 | |
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 | 34,100,000 | |||
Unrecognized stock compensation expense | $ 10,735,619 | $ 10,735,619 | |||
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) | 9 Months Ended |
Sep. 30, 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) | Sep. 30, 2023 USD ($) |
Right-of-Use Assets and Liabilities | |
2023 (3 months remaining) | $ 174,413 |
2024 | 191,120 |
2025 | 132,982 |
Total Future Lease Payments | 498,515 |
Less: Imputed Interest | (33,857) |
Total Lease Liability Balance | $ 464,658 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Right-of-Use Assets and Liabilities | ||||
Operating lease costs | $ 209,475 | $ 160,767 | $ 620,166 | $ 486,409 |
Weighted average discount rate | 8.30% | 8.30% | ||
Weighted average remaining term | 1 year 6 months | 1 year 6 months |