Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2024 | May 09, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.001 | |
Trading Symbol | VUZI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 64,726,092 | |
Entity Central Index Key | 0001463972 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and Cash Equivalents | $ 16,501,401 | $ 26,555,592 |
Accounts Receivable, net of allowance for credit losses of $1,574,000 at March 31, 2024 and December 31, 2023. | 4,633,400 | 3,827,686 |
Accrued Revenues in Excess of Billings | 0 | 165,771 |
Utility Improvement Refund/Employee Retention Credit Receivable | 208,271 | 208,271 |
Inventories, Net | 9,868,255 | 9,000,430 |
Manufacturing Vendor Prepayments | 279,086 | 403,801 |
Prepaid Expenses and Other Assets | 1,184,362 | 1,338,860 |
Total Current Assets | 32,674,775 | 41,500,411 |
Long-Term Assets | ||
Fixed Assets, Net | 7,922,239 | 8,072,830 |
Operating Lease Right-of-Use Asset | 874,851 | 301,185 |
Patents and Trademarks, Net | 2,732,043 | 2,627,018 |
Technology Licenses, Net | 26,024,067 | 26,851,001 |
Cost Method Investment in Atomistic | 5,784,126 | 5,784,126 |
Other Assets, Net | 969,443 | 1,011,111 |
Total Assets | 76,981,544 | 86,147,681 |
Current Liabilities | ||
Accounts Payable | 1,901,792 | 1,570,630 |
Unearned Revenue | 157,771 | 18,839 |
Accrued Expenses | 851,984 | 2,416,443 |
Licensing Fees Commitment | 1,000,000 | |
Income and Other Taxes Payable | 55,926 | 46,727 |
Operating Lease Right-of-Use Liability | 506,372 | 163,513 |
Total Current Liabilities | 3,473,845 | 5,216,152 |
Long-Term Liabilities | ||
Operating Lease Right-of-Use Liability | 368,479 | 137,672 |
Total Liabilities | 3,842,324 | 5,353,824 |
Stockholders' Equity | ||
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 65,304,780 shares issued and 64,725,108 shares outstanding as of March 31, 2024 and 65,304,780 shares issued and 64,725,108 shares outstanding as of December 31, 2023. | 65,304 | 65,304 |
Additional Paid-in Capital | 379,582,792 | 377,189,847 |
Accumulated Deficit | (304,032,375) | (293,984,793) |
Treasury Stock, at cost, 579,672 shares as of March 31, 2024 and December 31, 2023. | (2,476,501) | (2,476,501) |
Total Stockholders' Equity | 73,139,220 | 80,793,857 |
Total Liabilities and Stockholders' Equity | $ 76,981,544 | $ 86,147,681 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
CONSOLIDATED BALANCE SHEETS | ||
Allowance for Doubtful Accounts Receivable | $ 1,574,000 | $ 1,574,000 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 65,304,780 | 65,304,780 |
Common Stock, Shares Outstanding | 64,725,108 | 64,725,108 |
Common shares held in treasury | 579,672 | 579,672 |
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, 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) | |||
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) | |||
Net Loss | (50,149,077) | ||||
Balance at Dec. 31, 2023 | $ 65,304 | 377,189,847 | (293,984,793) | $ (2,476,501) | 80,793,857 |
Balance (in shares) at Dec. 31, 2023 | 65,304,780 | (579,672) | |||
Stock-Based Compensation Expense | 2,392,945 | 2,392,945 | |||
Net Loss | (10,047,582) | (10,047,582) | |||
Balance at Mar. 31, 2024 | $ 65,304 | $ 379,582,792 | $ (304,032,375) | $ (2,476,501) | $ 73,139,220 |
Balance (in shares) at Mar. 31, 2024 | 65,304,780 | (579,672) |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Sales: | ||
Total Sales | $ 2,003,867 | $ 4,191,361 |
Cost of Sales: | ||
Cost of Sales - Depreciation and Amortization | 181,566 | 232,916 |
Total Cost of Sales | 2,057,120 | 3,315,355 |
Gross Profit (Loss) | (53,253) | 876,006 |
Operating Expenses: | ||
Research and Development | 2,738,449 | 3,069,797 |
Selling and Marketing | 2,220,782 | 2,539,659 |
General and Administrative | 4,098,257 | 5,131,824 |
Depreciation and Amortization | 970,377 | 964,265 |
Loss on Fixed Asset Disposal | 11,277 | |
Impairment of Patents and Trademarks | 17,666 | |
Total Operating Expenses | 10,039,142 | 11,723,211 |
Loss From Operations | (10,092,395) | (10,847,205) |
Other Income (Expense): | ||
Investment Income | 152,599 | 695,783 |
Income and Other Taxes | (282) | (87,795) |
Foreign Exchange Loss | (107,504) | (1,366) |
Total Other Income, Net | 44,813 | 606,622 |
Loss Before Provision for Income Taxes | (10,047,582) | (10,240,583) |
Net Loss | $ (10,047,582) | $ (10,240,583) |
Basic Loss per Common Share | $ (0.16) | $ (0.16) |
Diluted Loss per Common Share | $ (0.16) | $ (0.16) |
Weighted-average Shares Outstanding - Basic | 64,725,108 | 63,216,598 |
Weighted-average Shares Outstanding - Diluted | 64,725,108 | 63,216,598 |
Sales of Products | ||
Sales: | ||
Total Sales | $ 1,829,073 | $ 4,191,361 |
Cost of Sales: | ||
Cost of Sales | 1,807,593 | $ 3,082,439 |
Sales of Engineering Services | ||
Sales: | ||
Total Sales | 174,794 | |
Cost of Sales: | ||
Cost of Sales | $ 67,961 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows From (Used In) Operating Activities | ||||
Net Loss | $ (10,047,582) | $ (10,240,583) | ||
Non-Cash Adjustments | ||||
Depreciation and Amortization | 1,151,943 | 1,197,181 | ||
Stock-Based Compensation | 2,392,945 | 3,667,509 | ||
Impairment of Patents and Trademarks | 17,666 | |||
Loss on Fixed Asset Disposal | 11,277 | |||
(Increase) Decrease in Operating Assets | ||||
Accounts Receivable | (805,714) | 499,815 | ||
Accrued Revenues in Excess of Billings | 165,771 | 76,952 | ||
Inventories | (867,825) | 406,290 | ||
Manufacturing Vendor Prepayments | 124,715 | 524,636 | ||
Prepaid Expenses and Other Assets | 154,498 | 218,520 | ||
Increase (Decrease) in Operating Liabilities | ||||
Accounts Payable | 331,162 | 59,618 | ||
Accrued Expenses | (1,564,459) | (412,566) | ||
Unearned Revenue | 138,932 | 12,391 | ||
Income and Other Taxes Payable | 9,199 | (192,156) | ||
Net Cash Flows Used in Operating Activities | (8,805,138) | (4,164,727) | $ (26,277,824) | $ (24,521,082) |
Cash Flows Used in Investing Activities | ||||
Purchases of Fixed Assets | (101,239) | (2,284,968) | ||
Investments in Patents and Trademarks | (147,814) | (182,628) | ||
Investments in Licenses | (1,000,000) | (2,000,000) | ||
Investments in Software Development | (125,000) | |||
Investments in Other Assets | (100,000) | |||
Net Cash Flows Used in Investing Activities | (1,249,053) | (4,692,596) | (19,280,966) | (21,170,816) |
Cash Flows Provided by (Used in) Financing Activities | ||||
Purchases of Treasury Stock | (470,757) | |||
Net Cash Flows Provided by (Used in) Financing Activities | (470,757) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (10,054,191) | (9,328,080) | ||
Cash and Cash Equivalents - Beginning of Period | 26,555,592 | 72,563,943 | 72,563,943 | |
Cash and Cash Equivalents - End of Period | $ 16,501,401 | 63,235,863 | $ 26,555,592 | $ 72,563,943 |
Supplemental Disclosures | ||||
Stock-Based Compensation Expense - Expensed less Previously Issued | $ 306,737 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
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 Months ended March 31, 2024, 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, 2023, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on April 15, 2024. Customer Concentrations For the three months ended March 31, 2024, one customer represented 60% of total product revenue and two customers represented 68% and 31% of engineering services revenue. For the three months ended March 31, 2023, one customer represented 74% of total product revenue. As of March 31, 2024, three customers represented 37%, 23%, and 18% of accounts receivable. As of December 31, 2023, two customers represented 47% and 26% of accounts receivable. Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable, unearned revenue, accrued expenses, and income and other taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. The Company incurred net losses for the three months ended March 31, 2024 of $10,047,582; $50,149,077 for the year ended December 31, 2023; and $40,763,573 for the year ended December 31, 2022. The Company had net cash outflows from operations of $8,805,138 for the three months ended March 31, 2024; $26,277,824 for the year ended December 31, 2023; and $24,521,082 for the year ended December 31, 2022. As of March 31, 2024, the Company had an accumulated deficit of $304,032,375. The Company’s cash outflows for investing activities were $1,249,053 for the three months ended March 31, 2024; $19,280,966 for the year ended December 31, 2023; and $21,170,816 for the year ended December 31, 2022. These factors initially raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate the conditions that raise substantial doubt include the implementation of operational improvements and the curtailment of certain development programs, both of which the Company expects will preserve cash. Management estimates the Company will have sufficient liquidity to fund operations at least through the second quarter of 2025. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014- 15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. As a result, management is primarily responsible for assessing if there is a going concern issue when issuing an entity’s financial statements. The going concern assumption underlies all GAAP financial reporting and therefore requires and assumes that the financial statements have been prepared on a going concern basis. It presumes that a Company will continue normal business operations into the future. Additional disclosure is required when there is substantial doubt about business continuity or substantial doubt that has not been alleviated by management’s mitigation plans. As required under applicable accounting standards, management has concluded that substantial doubt may exist surrounding the Company's ability to meet its obligations within one year of the release of the financial statements. The Company’s cash requirements going forward are primarily for funding operating losses, research and development, working capital, license investments, and capital expenditures. The higher cash outflows for investments in the years ending December 31, 2023 and 2022 were mainly for the Company’s exclusive technology license and equity investment in microLED technology via Atomistic (see Notes 6 and 7). The Company paid $30,000,000 to Atomistic in the last two fiscal years. The Company currently is negotiating an extension to its existing license with Atomistic, however, there can be no assurance a definitive agreement will be reached or the dollar amount of any such renewal. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily through the sale of equity securities. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to cut its operating costs significantly or raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● Reductions in our cash annual operating expenses by approximately $8,000,000 for 2024 across all operating areas, representing a reduction of at least 20% as compared to 2023 levels, including the areas of Research and Development, Sales and Marketing and General and Administrative; ● Implementation of a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $1,600,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200% , respectively, of the net cash wage reductions; ● Further reductions of the rate of research and development spending on new technologies, particularly the use of external contractors. ● We do not intend to increase our levels of investing activities for our 2024 fiscal year as compared to 2023, now that our waveguide plant expansion has been completed and the license fees payments under the Atomistic License have been substantially made; ● Right-sizing of operations across all areas of the Company, including head-count hiring freezes or head-count reductions; ● The expected margin contribution upon the commencement of volume manufacturing and sales of waveguides from our new waveguide plant in 2024, particularly to OEM customers; ● Continued pursuit of licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ● Delayed or curtailed discretionary and non-essential capital expenditures not related to near-term new products; ● Reduction in the rate of new product introductions and further leveraging of existing platforms to reduce new product development and engineering costs; The Company has in the past sold equity securities and in early 2024 entered into a sales agreement with an investment banking firm for the issuance and sale of up to $50,000,000 of our common stock that may be issued and sold from time to time in an “at the market” offering. Management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to pursue additional equity financings, further curtail expenses, or enter into one of more strategic transactions. However, management can make no assurance that the Company will be able to successfully complete any of the forementioned pursuits on terms acceptable to the Company, or at all. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical success in managing cash flows and obtaining capital will continue into the foreseeable future. However, as a result of this uncertainty, doubt about the Company continuing as a going concern has not been fully alleviated to the satisfaction of its external auditors as noted in their audit report included with to the Company’s 10-K filed with the SEC on April 15, 2024. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. At each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE, Atomistic, in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 6 and 7. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE are not included in our consolidated financial statements. We account for this investment as a technology license and an equity investment. The maximum exposure of this unconsolidated VIE is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE is our capital investment in them. The carrying value and maximum exposure Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. |
Going Concern | Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These consolidated financial statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. The Company incurred net losses for the three months ended March 31, 2024 of $10,047,582; $50,149,077 for the year ended December 31, 2023; and $40,763,573 for the year ended December 31, 2022. The Company had net cash outflows from operations of $8,805,138 for the three months ended March 31, 2024; $26,277,824 for the year ended December 31, 2023; and $24,521,082 for the year ended December 31, 2022. As of March 31, 2024, the Company had an accumulated deficit of $304,032,375. The Company’s cash outflows for investing activities were $1,249,053 for the three months ended March 31, 2024; $19,280,966 for the year ended December 31, 2023; and $21,170,816 for the year ended December 31, 2022. These factors initially raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate the conditions that raise substantial doubt include the implementation of operational improvements and the curtailment of certain development programs, both of which the Company expects will preserve cash. Management estimates the Company will have sufficient liquidity to fund operations at least through the second quarter of 2025. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014- 15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. As a result, management is primarily responsible for assessing if there is a going concern issue when issuing an entity’s financial statements. The going concern assumption underlies all GAAP financial reporting and therefore requires and assumes that the financial statements have been prepared on a going concern basis. It presumes that a Company will continue normal business operations into the future. Additional disclosure is required when there is substantial doubt about business continuity or substantial doubt that has not been alleviated by management’s mitigation plans. As required under applicable accounting standards, management has concluded that substantial doubt may exist surrounding the Company's ability to meet its obligations within one year of the release of the financial statements. The Company’s cash requirements going forward are primarily for funding operating losses, research and development, working capital, license investments, and capital expenditures. The higher cash outflows for investments in the years ending December 31, 2023 and 2022 were mainly for the Company’s exclusive technology license and equity investment in microLED technology via Atomistic (see Notes 6 and 7). The Company paid $30,000,000 to Atomistic in the last two fiscal years. The Company currently is negotiating an extension to its existing license with Atomistic, however, there can be no assurance a definitive agreement will be reached or the dollar amount of any such renewal. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily through the sale of equity securities. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to cut its operating costs significantly or raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● Reductions in our cash annual operating expenses by approximately $8,000,000 for 2024 across all operating areas, representing a reduction of at least 20% as compared to 2023 levels, including the areas of Research and Development, Sales and Marketing and General and Administrative; ● Implementation of a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $1,600,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200% , respectively, of the net cash wage reductions; ● Further reductions of the rate of research and development spending on new technologies, particularly the use of external contractors. ● We do not intend to increase our levels of investing activities for our 2024 fiscal year as compared to 2023, now that our waveguide plant expansion has been completed and the license fees payments under the Atomistic License have been substantially made; ● Right-sizing of operations across all areas of the Company, including head-count hiring freezes or head-count reductions; ● The expected margin contribution upon the commencement of volume manufacturing and sales of waveguides from our new waveguide plant in 2024, particularly to OEM customers; ● Continued pursuit of licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ● Delayed or curtailed discretionary and non-essential capital expenditures not related to near-term new products; ● Reduction in the rate of new product introductions and further leveraging of existing platforms to reduce new product development and engineering costs; The Company has in the past sold equity securities and in early 2024 entered into a sales agreement with an investment banking firm for the issuance and sale of up to $50,000,000 of our common stock that may be issued and sold from time to time in an “at the market” offering. Management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to pursue additional equity financings, further curtail expenses, or enter into one of more strategic transactions. However, management can make no assurance that the Company will be able to successfully complete any of the forementioned pursuits on terms acceptable to the Company, or at all. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical success in managing cash flows and obtaining capital will continue into the foreseeable future. However, as a result of this uncertainty, doubt about the Company continuing as a going concern has not been fully alleviated to the satisfaction of its external auditors as noted in their audit report included with to the Company’s 10-K filed with the SEC on April 15, 2024. |
Revenue Recognition and Contrac
Revenue Recognition and Contracts with Customers | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition and Contracts with Customers | |
Revenue Recognition and Contracts with Customers | Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. The following table summarizes the revenue recognized by major product line: Three Months Ended March 31, 2024 2023 Revenues Products Sales $ 1,829,073 $ 4,191,361 Engineering Services 174,794 — Total Revenue $ 2,003,867 $ 4,191,361 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. 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 As of March 31, 2024 and 2023, there were no outstanding performance obligations remaining for extended warranties. 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 2024 2023 Point-in-Time 91 % 100 % Over Time – Input Method 9 % 0 % Total 100 % 100 % Remaining Performance Obligations As March 31, 2024, the Company had $2,825,915 of remaining performance obligations under two current waveguide development projects, which represents the remainder of transaction prices totaling $3,565,000 under these development agreements, which commenced in 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, of 58% in 2024 2025 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, less revenue recognized under percentage of completion to date. The Company did recognize the remaining revenue related to this project in the second quarter of 2023. As of March 31, 2024, 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, 2024 | |
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, 2024 and 2023, 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 March 31, 2024 and 2023, there were 8,369,154 and 8,603,308 common stock share equivalents, for the three 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 | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 2023 Purchased Parts and Components $ 10,358,291 $ 9,500,415 Work-in-Process 346,759 394,923 Finished Goods 4,921,804 4,880,643 Less: Reserve for Obsolescence (5,758,599) (5,775,551) Inventories, Net $ 9,868,255 $ 9,000,430 |
Fixed Assets
Fixed Assets | 3 Months Ended |
Mar. 31, 2024 | |
Fixed Assets | |
Fixed Assets | Note 5 – Fixed Assets Fixed Assets consisted of the following: March 31, December 31, 2024 2023 Tooling and Manufacturing Equipment $ 8,783,670 $ 8,793,192 Leaseholds 2,863,207 3,162,695 Computers and Purchased Software 679,138 833,794 Furniture and Equipment 2,431,846 2,580,904 14,757,861 15,370,585 Less: Accumulated Depreciation (6,835,622) (7,297,755) Fixed Assets, Net $ 7,922,239 $ 8,072,830 December 31, 2023 asset groupings have been reclassified to conform with March 31, 2024 presentation. Total depreciation expense for fixed assets for the three months ended March 31, 2024 and 2023 was $290,820 and $285,997, respectively. |
Technology Licenses, Net
Technology Licenses, Net | 3 Months Ended |
Mar. 31, 2024 | |
Technology Licenses, Net | |
Technology Licenses, Net | Note 6 – Technology Licenses, Net The changes in the Company’s Technology Licenses for the three months ended March 31, 2024, were as follows: March 31, December 31, 2024 2023 Licenses $ 32,443,356 $ 32,443,356 Additions — — Less: Accumulated Amortization (6,419,289) (5,592,355) Licenses, Net $ 26,024,067 $ 26,851,001 Total amortization expense related to technology licenses for the three months ended March 31, 2024, and 2023 was $818,334 and $867,153, respectively. These intangible technology license assets are being amortized over a ten-year period, which began on May 12, 2022 and, as modified, on December 16, 2022. The Atomistic technology license represents $30,000,000 of the total licenses on-hand. The remaining funding commitment of $1,000,000 associated with this license was paid in January 2024. Until such time as the Company owns a controlling interest in Atomistic following by the issuance of Vuzix shares (see Note 12) for the completion of all development milestones, or is permitted to waive them and accelerate the share issuances for 100% ownership of Atomistic, the Company and Atomistic must negotiate every 12 to 24 months new license fee commitments for the extension of the Company’s exclusive license. If such amounts cannot be agreed this would result in the termination of Vuzix’s existing license to the Atomistic technologies. |
Investment in Atomistic
Investment in Atomistic | 3 Months Ended |
Mar. 31, 2024 | |
Investment in Atomistic | |
Investment in Atomistic | Note 7 – Investment in Atomistic In November 2023, Atomistic successfully reached six of ten technological milestones under its technology license agreement (Note 6) with the Company executed on December 16, 2022. As a result of these achievements, the Company issued to the Atomistic Founders 1,397,500 shares of the Company's common stock and paid them $2,500,000 in exchange for 13,682 shares of Series A Preferred stock of Atomistic. The fair market value of the common shares when issued was $2.35 per share or a total of $3,284,126. The stock of Atomistic does not have a readily determinable fair value, as it’s a private company; therefore, under ASC 321, the investment in Atomistic stock is accounted for at cost, unless a transaction occurs, indicating a known fair value or if indications of an impairment of the investment are known. The Company reviewed its investment in Atomistic for impairment and no indicators of impairment have occurred on or before March 31, 2024. |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2024 | |
Other Assets | |
Other Assets | Note 8 - Other Assets The Company’s Other Assets, were as follows: March 31, December 31, 2024 2023 Private Corporation Investments $ 650,000 $ 450,000 Additions — 200,000 Total Private Corporation Investments (at cost) 650,000 650,000 Software Development Costs 1,000,000 875,000 Additions — 125,000 Less: Accumulated Amortization (680,557) (638,889) Software Development Costs, Net 319,443 361,111 Total Other Assets $ 969,443 $ 1,011,111 During the year ended December 31, 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 stockkeeping of inventory, amongst other uses. In the year ended December 31, 2023, the Company purchased an additional $100,000 of preferred stock in this corporation 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. Total amortization expense related to all software updates, included in cost of sales, for the three months ended March 31, 2024, and 2023 were $41,668 and $55,556, respectively. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses | |
Accrued Expenses | Note 9 – Accrued Expenses Accrued expenses consisted of the following: March 31, December 31, 2024 2023 Accrued Wages and Related Costs $ 468,458 $ 1,711,707 Accrued Professional Services 160,425 362,100 Accrued Warranty Obligations 133,780 188,249 Other Accrued Expenses 89,321 154,387 Total $ 851,984 $ 2,416,443 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve 12 twelve 12 The changes in the Company’s accrued warranty obligations for the three months ended March 31, 2024, were as follows: Accrued Warranty Obligations at December 31, 2023 $ 188,249 Reductions for Settling Warranties (109,341) Warranties Issued During Period 54,872 Accrued Warranty Obligations at March 31, 2024 $ 133,780 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Taxes | |
Income Taxes | Note 10 – 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, 2024 | |
Capital Stock | |
Capital Stock | Note 11 – 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, 2024, and December 31, 2023. 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, 2024, and December 31, 2023. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 65,304,780 shares issued and 64,725,108 shares outstanding as of March 31, 2024 and December 31, 2023. In connection with the Atomistic Technology Licenses discussed in Note 6, on November 20, 2023, the Company issued a total of 1,397,500 shares of common stock to the Founders of Atomistic SAS (“Atomistic”) for the achievement of certain technological milestones under a license agreement entered into between the Company, Atomistic and the Founders, along with cash consideration in exchange for equity in Atomistic (see Note 7). Pursuant to the Stock Purchase Agreement with Atomistic and its Founders, the Company will, contingent upon completion of certain deliverables and the achievement of further milestones contained in the Atomistic Agreements, be committed to issue, depending on the Company’s share price at the time of their issuance, a further minimum of approximately 890,000 up to a maximum of 1,446,250 common shares to the Founders of Atomistic (as consideration for certain shares of Atomistic) which would result in Vuzix owning Series A Preferred shares in Atomistic that would be converted into ordinary shares of Atomistic and Vuzix ultimately owning nearly 100% of Atomistic, with Atomistic becoming a subsidiary of the Company. Within five years of the commencement of the Atomistic Agreements, the Company has agreed to issue up to a 15% equity bonus of the previously issued common shares to Atomistic stockholders, if: (i) the Company engages in a change-of-control transaction for an implied equity value of at least $3.5 billion or (ii) the Company’s market valuation exceeds $3.5 billion. This could result in the issuance of an additional 291,346 to 473,438 shares of the Company’s common stock when that valuation target is exceeded. None of these share commitments have been issued to date. Treasury Stock Company repurchased 115,000 shares of our common stock at an average cost of $4.06, before commission of $0.03 per share. As of March 31, 2024, 579,672 shares of our common stock were held in treasury. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Stock-Based Compensation | |
Stock-Based Compensation | Note 12 – 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 13) for the three months ended March 31, 2024, is as follows: Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2023 2,911,308 $ 7.60 6.30 Granted — — Exercised — — Expired or Forfeited (276,654) 7.10 Outstanding at March 31, 2024 2,634,654 $ 7.65 5.79 The weighted average remaining contractual term for all options as of March 31, 2024, and December 31, 2023, was 5.79 years and 6.30 years, respectively. As of March 31, 2024, there were 2,093,850 options that were fully vested and exercisable at a weighted average exercise price of $7.22 per share. The weighted average remaining contractual term of the vested options is 5.2 years. As of March 31, 2024, there were 540,804 unvested options exercisable at a weighted average exercise price of $9.35 per share. The weighted average remaining contractual term of the unvested options is 8.0 years. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. As of March 31, 2024, the Company had $3,426,239 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 1.6 For the three months ended March 31, 2024, and 2023, the Company recorded total stock-based compensation expense, including stock awards but excluding stock option awards under the Company’s LTIP, of $983,650 and $1,129,566, respectively. |
Long-Term Incentive Plan
Long-Term Incentive Plan | 3 Months Ended |
Mar. 31, 2024 | |
Long-Term Incentive Plan | |
Long-Term Incentive Plan | Note 13 – 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, 2024, and 2023, the Company recorded non-cash stock-based compensation expense of $1,409,294 and $2,537,944, 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, 2024, we had $7,384,031 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 are being recognized over a service period of up to three The probabilities of the milestone achievements are subject to catch-up adjustments in each instance where an equity market capitalization milestone is achieved or when an operational milestone becomes probable to be achieved or is achieved. Compensation costs could be reversed in subsequent periods if an awardee leaves the Company prior to the completion of the requisite service period for market capitalization milestone or performance award vesting of a performance award no longer determined to be probable. If such milestones are achieved earlier in their expected service periods, the remaining unrecognized compensation expense related to that particular milestone would be accelerated and recognized in full during the period where that achievement is affirmed by the Board of Directors. As of March 31, 2024, and going forward, should all of the operational milestones which are currently not yet deemed probable of achievement become probable of achievement or are achieved, then the Company could ultimately recognize up to an additional $34 million in non-cash stock-based compensation expense at such time. 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 5,359,500 unvested options outstanding as of March 31, 2024, there are 2,679,750 options unvested for the achievement of Equity Market Capitalization targets, 1,875,825 unvested options for the achievement of annual revenue targets, and 803,925 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 680,500 $ 2,000,000,000 $ 25,000,000 0.0% 680,500 3,000,000,000 50,000,000 2.0% 680,500 4,000,000,000 100,000,000 4.0% 680,500 5,000,000,000 200,000,000 6.0% 580,500 6,000,000,000 300,000,000 8.0% 580,500 7,000,000,000 450,000,000 10.0% 555,500 8,000,000,000 675,000,000 12.0% 485,500 9,000,000,000 1,000,000,000 14.0% 435,500 10,000,000,000 1,500,000,000 16.0% 5,359,500 |
Litigation
Litigation | 3 Months Ended |
Mar. 31, 2024 | |
Litigation | |
Litigation | Note 14 – 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 | 3 Months Ended |
Mar. 31, 2024 | |
Right-of-Use Assets and Liabilities | |
Right-of-Use Assets and Liabilities | Note 15 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of March 31, 2024, were as follows: 2024 $ 418,892 2025 511,980 Total Future Lease Payments 930,872 Less: Imputed Interest (56,021) Total Lease Liability Balance $ 874,851 The Company has signed lease agreements, with the largest being for its office and manufacturing facility in the West Henrietta, New York area under an operating lease that commenced October 3, 2015, and was set to expire on October 3, 2020. This lease had an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed to lease rates. On June 25, 2020, the Company exercised the first of two renewal terms, extending the current lease term to January 31, 2024. On January 16, 2024, the Company exercised the second renewal extending the current lease term to November 30, 2025. As a result, the Company recorded an additional Right-of-Use asset and Right-of-Use liability Operating lease costs under the operating leases totaled $191,505 and $203,339 for the three months ended March 31, 2024, and 2023, respectively. As of March 31, 2024, the weighted average discount rate was 8.3% and the weighted average remaining lease term was 1.7 years. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events | |
Subsequent Events | Note 16 – Subsequent Events On May 6, 2024, the Company implemented a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $1,600,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200%, respectively, of the net cash wage reductions. The fair market value of these stock awards and stock option awards has been determined at $1.33 and $0.99, respectively, and a total of 585,345 stock awards and 2,150,008 stock option awards were issued. These awards are subject to vesting and resale rules. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 Months ended March 31, 2024, 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, 2023, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on April 15, 2024. |
Customer Concentrations | Customer Concentrations For the three months ended March 31, 2024, one customer represented 60% of total product revenue and two customers represented 68% and 31% of engineering services revenue. For the three months ended March 31, 2023, one customer represented 74% of total product revenue. As of March 31, 2024, three customers represented 37%, 23%, and 18% of accounts receivable. As of December 31, 2023, two customers represented 47% and 26% of accounts receivable. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments primarily consist of cash and cash equivalents, accounts receivable, accounts payable, unearned revenue, accrued expenses, and income and other taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to the short maturities of these instruments. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Variable Interest Entities | Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. At each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE, Atomistic, in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 6 and 7. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE are not included in our consolidated financial statements. We account for this investment as a technology license and an equity investment. The maximum exposure of this unconsolidated VIE is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE is our capital investment in them. The carrying value and maximum exposure |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures. |
Revenue Recognition and Contr_2
Revenue Recognition and Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue Recognition and Contracts with Customers | |
Schedule of company's total revenue by major product lines | Three Months Ended March 31, 2024 2023 Revenues Products Sales $ 1,829,073 $ 4,191,361 Engineering Services 174,794 — Total Revenue $ 2,003,867 $ 4,191,361 |
Schedule of company's net sales by revenue recognition method as a percentage of total net sales | % of Total Net Sales 2024 2023 Point-in-Time 91 % 100 % Over Time – Input Method 9 % 0 % Total 100 % 100 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventories, Net | |
Schedule of Inventories | March 31, December 31, 2024 2023 Purchased Parts and Components $ 10,358,291 $ 9,500,415 Work-in-Process 346,759 394,923 Finished Goods 4,921,804 4,880,643 Less: Reserve for Obsolescence (5,758,599) (5,775,551) Inventories, Net $ 9,868,255 $ 9,000,430 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fixed Assets | |
Schedule of Fixed Assets | March 31, December 31, 2024 2023 Tooling and Manufacturing Equipment $ 8,783,670 $ 8,793,192 Leaseholds 2,863,207 3,162,695 Computers and Purchased Software 679,138 833,794 Furniture and Equipment 2,431,846 2,580,904 14,757,861 15,370,585 Less: Accumulated Depreciation (6,835,622) (7,297,755) Fixed Assets, Net $ 7,922,239 $ 8,072,830 |
Technology Licenses, Net (Table
Technology Licenses, Net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Licenses | |
Schedule of Finite-Lived Intangible Assets | March 31, December 31, 2024 2023 Licenses $ 32,443,356 $ 32,443,356 Additions — — Less: Accumulated Amortization (6,419,289) (5,592,355) Licenses, Net $ 26,024,067 $ 26,851,001 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Assets | |
Schedule of Company's Other Assets | March 31, December 31, 2024 2023 Private Corporation Investments $ 650,000 $ 450,000 Additions — 200,000 Total Private Corporation Investments (at cost) 650,000 650,000 Software Development Costs 1,000,000 875,000 Additions — 125,000 Less: Accumulated Amortization (680,557) (638,889) Software Development Costs, Net 319,443 361,111 Total Other Assets $ 969,443 $ 1,011,111 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses | |
Schedule of Accrued expenses | March 31, December 31, 2024 2023 Accrued Wages and Related Costs $ 468,458 $ 1,711,707 Accrued Professional Services 160,425 362,100 Accrued Warranty Obligations 133,780 188,249 Other Accrued Expenses 89,321 154,387 Total $ 851,984 $ 2,416,443 |
Schedule of changes in accrued warranty obligations | Accrued Warranty Obligations at December 31, 2023 $ 188,249 Reductions for Settling Warranties (109,341) Warranties Issued During Period 54,872 Accrued Warranty Obligations at March 31, 2024 $ 133,780 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2023 2,911,308 $ 7.60 6.30 Granted — — Exercised — — Expired or Forfeited (276,654) 7.10 Outstanding at March 31, 2024 2,634,654 $ 7.65 5.79 |
Long-Term Incentive Plan (Table
Long-Term Incentive Plan (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 680,500 $ 2,000,000,000 $ 25,000,000 0.0% 680,500 3,000,000,000 50,000,000 2.0% 680,500 4,000,000,000 100,000,000 4.0% 680,500 5,000,000,000 200,000,000 6.0% 580,500 6,000,000,000 300,000,000 8.0% 580,500 7,000,000,000 450,000,000 10.0% 555,500 8,000,000,000 675,000,000 12.0% 485,500 9,000,000,000 1,000,000,000 14.0% 435,500 10,000,000,000 1,500,000,000 16.0% 5,359,500 |
Right-of-Use Assets and Liabi_2
Right-of-Use Assets and Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Right-of-Use Assets and Liabilities | |
Schedule of Future lease payments under operating leases | 2024 $ 418,892 2025 511,980 Total Future Lease Payments 930,872 Less: Imputed Interest (56,021) Total Lease Liability Balance $ 874,851 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 USD ($) customer | Mar. 31, 2023 customer | Dec. 31, 2023 USD ($) customer | |
Maximum exposure of unconsolidated VIE | $ | $ 31,800,000 | ||
Carrying value of unconsolidated VIE | $ | 76,981,544 | $ 86,147,681 | |
VIE | |||
Carrying value of unconsolidated VIE | $ | $ 31,800,000 | ||
Total revenues | Sales of Engineering Services | |||
Number of customers | customer | 2 | ||
Total revenues | Sales of Products | |||
Number of customers | customer | 1 | 1 | |
Accounts Receivable | |||
Number of customers | customer | 3 | 2 | |
One customer | Total revenues | Sales of Products | Customer Concentration Risk | |||
Concentration Risk, Percentage | 60% | 74% | |
One customer | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk, Percentage | 37% | 47% | |
Two customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||
Concentration Risk, Percentage | 68% | ||
Two customers | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk, Percentage | 23% | 26% | |
Three customers | Total revenues | Sales of Engineering Services | Customer Concentration Risk | |||
Concentration Risk, Percentage | 31% | ||
Three customers | Accounts Receivable | Customer Concentration Risk | |||
Concentration Risk, Percentage | 18% |
Basis of Presentation - Going C
Basis of Presentation - Going Concern (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Apr. 30, 2025 | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Net loss | $ (10,047,582) | $ (10,240,583) | $ (50,149,077) | $ (40,763,573) | ||
Net Cash Flows Used in Operating Activities | (8,805,138) | (4,164,727) | (26,277,824) | (24,521,082) | ||
Retained Earnings Accumulated Deficit | (304,032,375) | (293,984,793) | ||||
Net Cash Flows Used in Investing Activities | $ (1,249,053) | $ (4,692,596) | (19,280,966) | (21,170,816) | ||
Substantial Doubt about Going Concern, within One Year [true false] | true | |||||
Forecast [Member] | ||||||
Decrease in cash annual operating expenses | $ 8,000,000 | |||||
Percentage of decrease in cash annual operating expenses | 20% | |||||
Expected cash saving due to payroll reduction program | $ 1,600,000 | |||||
Estimated total common stock value to be issued and sold | $ 50,000,000 | |||||
Forecast [Member] | Minimum | ||||||
Percentage of optional salary reductions | 10% | |||||
Rate of issuance of stock awards or stock options due to salary reduction program | 150% | |||||
Forecast [Member] | Maximum | ||||||
Percentage of optional salary reductions | 50% | |||||
Rate of issuance of stock awards or stock options due to salary reduction program | 200% | |||||
Atomistic SAS | Atomistic agreement | ||||||
Payments for investment to Atomistic | $ 30,000,000 | $ 30,000,000 |
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, 2024 USD ($) product | Mar. 31, 2023 USD ($) | |
Number of major product lines | product | 2 | |
Revenue | $ 2,003,867 | $ 4,191,361 |
Products Sales | ||
Revenue | 1,829,073 | $ 4,191,361 |
Engineering Services | ||
Revenue | $ 174,794 |
Revenue Recognition and Contr_4
Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue performance obligation percentage | 100% | 100% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | ||
Revenue, Remaining Performance Obligation, Percentage | 58% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | ||
Revenue, Remaining Performance Obligation, Percentage | 42% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years | |
Point-in-Time | ||
Revenue performance obligation percentage | 91% | 100% |
Over Time - Input Method | ||
Revenue performance obligation percentage | 9% | 0% |
Revenue Recognition and Contr_5
Revenue Recognition and Contracts with Customers - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) project | Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Standard product warranty term | 12 months | ||
Revenue, remaining performance obligations | $ 2,825,915 | $ 165,000 | |
Number of development projects | project | 2 | ||
Revenue, performance obligation, total transaction price | $ 3,565,000 | 800,000 | |
Accrued Revenues in Excess of Billings | $ 0 | $ 165,771 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months | ||
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 | ||
Extended warranties | |||
Standard product warranty term | 12 months | ||
Revenue, remaining performance obligations | $ 0 | $ 0 | |
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, 2024 | Mar. 31, 2023 | |
Loss Per Share | ||
Anti-dilutive shares | 8,369,154 | 8,603,308 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories (Detail) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Inventories, Net | ||
Purchased Parts and Components | $ 10,358,291 | $ 9,500,415 |
Work-in-Process | 346,759 | 394,923 |
Finished Goods | 4,921,804 | 4,880,643 |
Less: Reserve for Obsolescence | (5,758,599) | (5,775,551) |
Inventories, Net | $ 9,868,255 | $ 9,000,430 |
Fixed Assets - Schedule of Fixe
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment | |||
Fixed Assets, Gross | $ 14,757,861 | $ 15,370,585 | |
Less: Accumulated Depreciation | (6,835,622) | (7,297,755) | |
Fixed Assets, Net | 7,922,239 | 8,072,830 | |
Depreciation expense | 290,820 | $ 285,997 | |
Tooling and Manufacturing Equipment | |||
Property, Plant and Equipment | |||
Fixed Assets, Gross | 8,783,670 | 8,793,192 | |
Leaseholds | |||
Property, Plant and Equipment | |||
Fixed Assets, Gross | 2,863,207 | 3,162,695 | |
Computers and Purchased Software | |||
Property, Plant and Equipment | |||
Fixed Assets, Gross | 679,138 | 833,794 | |
Furniture and Equipment | |||
Property, Plant and Equipment | |||
Fixed Assets, Gross | $ 2,431,846 | $ 2,580,904 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fixed Assets | ||
Depreciation expense | $ 290,820 | $ 285,997 |
Technology Licenses, Net (Detai
Technology Licenses, Net (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Licenses Net [Line Items] | ||
Licenses, Net | $ 26,024,067 | $ 26,851,001 |
Licensing agreements | ||
Licenses Net [Line Items] | ||
Licenses | 32,443,356 | 32,443,356 |
Less: Accumulated Amortization | (6,419,289) | (5,592,355) |
Licenses, Net | $ 26,024,067 | $ 26,851,001 |
Technology Licenses, Net - Addi
Technology Licenses, Net - Additional Information (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2024 | Mar. 31, 2023 | Jan. 31, 2024 | Dec. 31, 2023 | Nov. 20, 2023 | May 12, 2022 | |
Licenses Net | ||||||
Licensing fees commitment | $ 1,000,000 | |||||
Atomistic SAS | ||||||
Licenses Net | ||||||
Ownership percent | 100% | 100% | ||||
Atomistic SAS | ||||||
Licenses Net | ||||||
Amortization Period (Years) | 10 years | |||||
Atomistic SAS | Minimum | ||||||
Licenses Net | ||||||
Period after which parties must negotiate about new funding contributions | 12 months | |||||
Atomistic SAS | Maximum | ||||||
Licenses Net | ||||||
Period after which parties must negotiate about new funding contributions | 24 months | |||||
Licensing agreements | ||||||
Licenses Net | ||||||
Amortization Expense | $ 818,334 | $ 867,153 | ||||
Licenses | 32,443,356 | $ 32,443,356 | ||||
Atomistic technology license | ||||||
Licenses Net | ||||||
Licenses | $ 30,000,000 |
Investment in Atomistic (Detail
Investment in Atomistic (Details) | 1 Months Ended | ||
Nov. 20, 2023 shares | Dec. 16, 2022 shares | Nov. 30, 2023 USD ($) item $ / shares shares | |
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Proceeds from Common Stock Offering (in shares) | 1,397,500 | ||
Atomistic agreement | Atomistic SAS | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Proceeds from Common Stock Offering (in shares) | 1,397,500 | ||
Investments, Number of Shares | 13,682 | ||
Atomistic agreement | Atomistic SAS | |||
Equity Securities without Readily Determinable Fair Value [Line Items] | |||
Number of technological milestones accomplished | item | 6 | ||
Number of Technological Milestones | item | 10 | ||
Payments to Acquire Investments | $ | $ 2,500,000 | ||
Public offering price | $ / shares | $ 2.35 | ||
Proceeds from Common Stock Offering | $ | $ 3,284,126 |
Other Assets (Details)
Other Assets (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Private Corporation Investments | $ 650,000 | $ 450,000 |
Additions | 200,000 | |
Total Private Corporation Investments (at cost) | 650,000 | 650,000 |
Additions | 7,922,239 | 8,072,830 |
Total Other Assets | 969,443 | 1,011,111 |
Software Development | ||
Software Development Costs | 1,000,000 | 875,000 |
Additions | 125,000 | |
Less: Accumulated Amortization | (680,557) | (638,889) |
Software Development Costs, Net | $ 319,443 | $ 361,111 |
Other Assets - Additional Infor
Other Assets - Additional Information (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2021 | |
Capitalized Software Development Costs | |||||
Other assets | |||||
Amortization of Intangible Assets | $ 41,668 | $ 55,556 | |||
Private Corporation | |||||
Other assets | |||||
Purchase price | $ 100,000 | $ 200,000 | |||
Ownership interest | 2% | 3% | |||
UK Based Public Company | |||||
Other assets | |||||
Purchase price | $ 100,000 | ||||
UK Based Public Company | Maximum | |||||
Other assets | |||||
Ownership interest | 1% |
Accrued Expenses - Components o
Accrued Expenses - Components of Accrued Expenses (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Expenses | ||
Accrued Wages and Related Costs | $ 468,458 | $ 1,711,707 |
Accrued Professional Services | 160,425 | 362,100 |
Accrued Warranty Obligations | 133,780 | 188,249 |
Other Accrued Expenses | 89,321 | 154,387 |
Total | $ 851,984 | $ 2,416,443 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Expenses | |
Standard product warranty term | 12 months |
Extended product warranty term | 12 months |
Accrued Expenses - Changes in A
Accrued Expenses - Changes in Accrued Warranty Obligations (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Accrued Expenses | |
Accrued Warranty Obligations at December 31, 2023 | $ 188,249 |
Reductions for Settling Warranties | (109,341) |
Warranties Issued During Year | 54,872 |
Accrued Warranty Obligations at March 31, 2024 | $ 133,780 |
Capital Stock (Details)
Capital Stock (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||||||
Nov. 20, 2023 | Dec. 16, 2022 | May 12, 2022 | Mar. 02, 2022 | Mar. 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
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 | 65,304,780 | 65,304,780 | |||||
Common Stock, Shares Outstanding | 64,725,108 | 64,725,108 | |||||
Stock Issued under Atomistic Stock Purchase Agreement (in shares) | 1,397,500 | ||||||
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 | 579,672 | |||||
Equity bonus (as a percent) | 15% | ||||||
Atomistic SAS | |||||||
Ownership percent | 100% | 100% | |||||
Atomistic agreement | |||||||
Issuance of shares, performance milestones (in shares) | 890,000 | ||||||
Period for equity bonus | 5 years | ||||||
Threshold market valuation | $ 3,500 | ||||||
Share commitments issued to date | 0 | ||||||
Atomistic agreement | Atomistic SAS | |||||||
Stock Issued under Atomistic Stock Purchase Agreement (in shares) | 1,397,500 | ||||||
Minimum | Atomistic agreement | |||||||
Issuance of shares on exceeding valuation target (in shares) | 291,346 | ||||||
Maximum | Atomistic agreement | |||||||
Issuance of shares, performance milestones (in shares) | 1,446,250 | ||||||
Issuance of shares on exceeding valuation target (in shares) | 473,438 | ||||||
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) - Employee Stock Option - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Number of Options | ||
Outstanding, Beginning Balance | 2,911,308 | |
Granted | 0 | |
Exercised | 0 | |
Expired or Forfeited | (276,654) | |
Outstanding, Ending Balance | 2,634,654 | 2,911,308 |
Weighted Average Exercise Price | ||
Outstanding, Beginning Balance | $ 7.60 | |
Granted | 0 | |
Exercised | 0 | |
Expired or Forfeited | 7.10 | |
Outstanding, Ending Balance | $ 7.65 | $ 7.60 |
Weighted Average Remaining Life (Years) | ||
Options outstanding, weighted average remaining life (years) | 5 years 9 months 14 days | 6 years 3 months 18 days |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Stock-Based Compensation Plans | ||
Exercisable options outstanding shares | 2,093,850 | |
Weighted average exercise price per share, Exercisable | $ 7.22 | |
Weighted average remaining contractual term on vested options | 5 years 2 months 12 days | |
Unvested options outstanding, shares | 540,804 | |
Unvested options outstanding, Weighted average exercise price | $ 9.35 | |
Unvested options outstanding weighted average remaining life (years) | 8 years | |
Unrecognized stock compensation expense | $ 3,426,239 | |
Weighted average recognition period | 1 year 7 months 6 days | |
Share-Based compensation excludes the long term incentive plan expense | $ 983,650 | $ 1,129,566 |
Long-Term Incentive Plan (Detai
Long-Term Incentive Plan (Details) - USD ($) | 3 Months Ended | ||
Mar. 17, 2021 | Mar. 31, 2024 | Mar. 31, 2023 | |
Long-term Incentive Plan | |||
Exercise price | $ 7.22 | ||
Share-based compensation | $ 2,392,945 | $ 3,667,509 | |
Unrecognized stock compensation expense | $ 3,426,239 | ||
Weighted average recognition period | 1 year 7 months 6 days | ||
Options available in equity market and operational milestone | 5,359,500 | ||
Equity Market Capitalization Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 2,679,750 | ||
Annual Revenue Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 1,875,825 | ||
Annual EBITDA Margins Before Non-Cash Charges Targets | |||
Long-term Incentive Plan | |||
Options available in equity market and operational milestone | 803,925 | ||
Employee Stock Option | Long-term Incentive Plan 2021 | |||
Long-term Incentive Plan | |||
Granted | 5,784,000 | ||
Exercise price | $ 19 | ||
Share-based compensation | $ 1,409,294 | $ 2,537,944 | |
Employee Stock Option | 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 | |||
Unrecognized stock compensation expense | 7,384,031 | ||
Additional stock based compensation expense | $ 34,000,000 | ||
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, 2024 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 | 5,359,500 |
Stock option tied to equity market and operational milestones | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 5,359,500 |
Equity market and operational milestone one | |
Long-term Incentive Plan | |
Options available in equity market and operational milestone | shares | 680,500 |
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 | 680,500 |
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 | 680,500 |
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 | 680,500 |
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 | 580,500 |
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 | 580,500 |
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 | 555,500 |
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 | 485,500 |
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 | 435,500 |
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, 2024 USD ($) |
Right-of-Use Assets and Liabilities | |
2024 | $ 418,892 |
2025 | 511,980 |
Total Future Lease Payments | 930,872 |
Less: Imputed Interest | (56,021) |
Total Lease Liability Balance | $ 874,851 |
Right-of-Use Assets and Liabi_4
Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Jan. 16, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Right-of-Use Assets and Liabilities | |||
Term of contract | 5 years | ||
Operating lease, option to extend | true | ||
Renewal term | 3 years | ||
Operating lease costs | $ 191,505 | $ 203,339 | |
Weighted average discount rate | 8.30% | ||
Weighted average remaining term | 1 year 8 months 12 days | ||
Increase in operating lease asset | $ 700,770 | ||
Increase in operating lease liability | $ 700,770 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event | May 06, 2024 USD ($) $ / shares shares |
Subsequent Event [Line Items] | |
Expected cash saving due to payroll reduction program | $ | $ 1,600,000 |
Fair market value of stock awards | $ / shares | $ 1.33 |
Fair market value of stock option awards | $ / shares | $ 0.99 |
Stock awards issued | shares | 585,345 |
Stock option awards issued | shares | 2,150,008 |
Minimum | |
Subsequent Event [Line Items] | |
Percentage of optional salary reductions | 10% |
Rate of issuance of stock awards or stock options due to salary reduction program | 150% |
Maximum | |
Subsequent Event [Line Items] | |
Percentage of optional salary reductions | 50% |
Rate of issuance of stock awards or stock options due to salary reduction program | 200% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (10,047,582) | $ (10,240,583) | $ (50,149,077) | $ (40,763,573) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
NonRule 10b5-1 Arrangement Modified | false |