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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported)
August 14, 2024
VUZIX CORPORATION
(Exact name of registrant as specified in
its charter)
Delaware
(State or other jurisdiction of
incorporation)
001-35955 |
04-3392453 |
(Commission File Number) |
(IRS Employer Identification No.) |
25 Hendrix Road, Suite A,
West
Henrietta, New York 14586
(Address of principal executive offices)(Zipcode)
(585) 359-5900
(Registrant’s Telephone Number, Including
Area Code)
Not Applicable
(Former Name or Former Address, if Changed
Since Last Report)
Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class: |
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Trading Symbol(s) |
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Name of each exchange on which registered: |
Common Stock, par value $0.001 |
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VUZI |
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Nasdaq Capital Market |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the
Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ¨
If an emerging growth company, indicate
by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations
and Financial Condition.
On August 14, 2024, Vuzix Corporation
(the “Company”) issued a press release announcing the Company’s financial results for the period ended June 30, 2024. The
press release is attached hereto as Exhibit 99.1.
In accordance with General Instruction
B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed”
for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to
the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under
the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements
and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to
the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: August 15, 2024 |
VUZIX CORPORATION |
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By: |
/s/ Grant Russell |
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Grant Russell
Chief Financial Officer |
Exhibit 99.1
Vuzix Reports Second Quarter 2024 Results
ROCHESTER, N.Y., August 14, 2024 - Vuzix®
Corporation (NASDAQ: VUZI) (“Vuzix” or the “Company”), a leading supplier of Smart Glasses and Augmented Reality
(AR) technologies and products, today reported its second quarter results for the three months ended June 30, 2024.
“In
our second quarter of 2024, Vuzix underpinned key end-customer and strategic relationships within the enterprise, consumer, and defense
markets centered around business opportunities that are expected to have a meaningful impact on both our balance sheet and top-line revenue
growth over the back half of 2024 and into 2025,” said Paul Travers, President and CEO of Vuzix. “At the same time, we have
reduced our annual cost structure going forward by $8M as compared to 2023 through headcount reductions, tighter cost controls and a voluntary
and widely adopted salary reduction program that offers staff, directors and management restricted stock or stock options in lieu of foregoing
up to 50% of their base salaries."
The following
table compares condensed elements of the Company’s unaudited summarized Consolidated Statements of Operations data for the three
months ended June 30, 2024 and 2023, respectively:
| |
For Three Months Ended June 30 | |
| |
($000s except per share amounts) | |
| |
2024 | | |
2023 | |
Sales: | |
| | | |
| | |
Sales of Products | |
$ | 601 | | |
$ | 4,425 | |
Sales of Engineering Services | |
| 491 | | |
| 266 | |
Total Sales | |
| 1,093 | | |
| 4,691 | |
| |
| | | |
| | |
Total Cost of Sales | |
| 1,426 | | |
| 3,718 | |
| |
| | | |
| | |
Gross Profit (Loss) | |
| (333 | ) | |
| 972 | |
Gross Profit (Loss) % | |
| (30 | )% | |
| 21 | % |
| |
| | | |
| | |
Operating Expenses: | |
| | | |
| | |
Research and Development | |
| 2,359 | | |
| 2,837 | |
Selling and Marketing | |
| 2,238 | | |
| 2,510 | |
General and Administrative | |
| 4,492 | | |
| 4,260 | |
Depreciation and Amortization | |
| 1,188 | | |
| 973 | |
Impairment of Patents and Trademarks | |
| 30,120 | | |
| - | |
| |
| | | |
| | |
Loss from Operations | |
| (40,730 | ) | |
| (9,608 | ) |
| |
| | | |
| | |
Total Other Income (Expense) | |
| 118 | | |
| 563 | |
Net
Loss | |
| (40,612 | ) | |
| (9,045 | ) |
| |
| | | |
| | |
Loss per Common Share | |
$ | (0.62 | ) | |
$ | (0.14 | ) |
| |
| | | |
| | |
Second Quarter 2024 Financial Results
For the
three months ended June 30, 2024, total revenues decreased by 77% to $1.1 million versus $4.7 million for the comparable period in 2023.
The decrease in total revenues was due to lower product sales and specifically reduced unit sales of M400 smart glasses as compared to
the prior year’s period, when an Asian distributor placed a significant order. Engineering services revenues were $0.5 million for
the three months ended June 30, 2024 as compared to $0.3 million in the prior year’s quarter.
There was
an overall gross loss of $0.3 million for the three months ended June 30, 2024 as compared to a gross profit of $1.0 million or 21% of
revenue for the same period in 2023. The loss was the result of lower revenues to absorb many of the company’s relatively fixed
manufacturing overhead costs as compared to the 2023 period.
Research
and Development expense was $2.4 million for the three months ended June 30, 2024, versus $2.8 million for the comparable 2023 period,
a decrease of approximately 17%. This decrease was primarily due to reduced external development costs and salary and benefits related
expenses.
Selling
and Marketing expense was $2.2 million for the three months ended June 30, 2024, versus $2.5 million for the comparable 2023 period, a
decrease of approximately 11%. This decrease was primarily due to lower advertising and tradeshow spending and reduced salary and benefits
expenses.
General
and Administrative expense for the three months ended June 30, 2024 was $4.5 million versus $4.3 million for the comparable 2023 period,
an increase of approximately 5%. This increase was largely due to higher accounting and auditing fees related to the Company’s 2023
audit.
Included
in operating expenses for the three months ended June 30, 2024 was a $30.1 million non-cash charge related to the carrying value of the
Company’s technology license and equity investment in Atomistic, which was written-off due to the termination of the Company’s
exclusive license agreement, effective June 30, 2024.
The net
loss for the three months ended June 30, 2024 was $40.6 million, or $0.62 cents per share versus a net loss of $9.0 million, or $0.14
for the comparable period in 2023.
The cash
net loss, excluding working capital changes, a non-GAAP measure, was $5.9M for the second quarter of 2024 versus $4.5M for the comparable
2023 period. As of June 30, 2024, the Company maintained cash and cash equivalents of $9.9 million and an overall working capital position
of $22.1 million.
Management Outlook
“We expect to see top-line revenue improvement
over the second half of 2024. We have a number of enterprise accounts that are on a path to volume deployment of our smart glasses
and solutions within their operations to deliver improved productivity, lower onboarding times and fewer errors. Our OEM business opportunities
remain robust; we have a backlog of business to deliver against and we expect at least one of our defense contractors and one of our commercial
enterprise customers to move into production later this year. On the waveguide manufacturing front, we will continue to implement process
improvements as we prepare to ramp production to support underlying demand from partners and the broader markets," said Mr. Travers.
Conference Call Information
Date: Wednesday, August 14, 2024
Time: 4:30 p.m. Eastern Time (ET)
Dial-in Number for U.S. & Canadian Callers: 877-709-8150
Dial-in Number for International Callers (Outside of the U.S. &
Canada): 201-689-8354
A live and archived webcast of the conference call will be available
on the investor relations page of the Company's website at: https://ir.vuzix.com/ or directly
at https://event.choruscall.com/mediaframe/webcast.html?webcastid=RkRQYjCk.
Participating on the call will be Vuzix’
Chief Executive Officer and President Paul Travers and Chief Financial Officer Grant Russell, who together will discuss operational and
financial highlights for the quarter ended June 30, 2024.
To join the live conference call, please dial
into the above referenced telephone numbers five to ten minutes prior to the scheduled conference call time.
A telephonic replay will be available for 30 days,
starting on August 14, 2024, at approximately 5:30 p.m. (ET). To access this replay, please dial 877-660-6853 within the U.S. or Canada,
or 201-612-7415 for international callers. The conference replay ID# is 13748253.
About Vuzix Corporation
Vuzix is a leading designer, manufacturer and
marketer of Smart Glasses and Augmented Reality (AR) technologies and products for the enterprise, medical, defense and consumer markets.
The Company’s products include head-mounted smart personal display and wearable computing devices that offer users a portable high-quality
viewing experience, provide solutions for mobility, wearable displays and augmented reality, as well OEM waveguide optical components
and display engines. Vuzix holds more than 375 patents and patents pending and numerous IP licenses in the fields of optics, head-mounted
displays, and augmented reality Video Eyewear field. Moviynt, an SAP Certified ERP SaaS logistics solution provider, is a Vuzix wholly
owned subsidiary. The Company has won Consumer Electronics Show (or CES) awards for innovation for the years 2005 to 2024 and several
wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in: Rochester,
NY; and Kyoto and Tokyo, Japan. For more information, visit the Vuzix website, Twitter
and Facebook pages.
Forward-Looking Statements Disclaimer
Certain statements contained in this news release
are "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995 and applicable Canadian
securities laws. Forward-looking statements contained in this release relate to, among other things, the timing of new product releases,
opportunities related to market disruptions regarding smart glasses demand, R&D project successes, smart glasses pilot to roll-out
conversion rates, existing and new engineering services and conversion to volume production OEM programs, future revenue and operating
results, the amount and impact of operating expense cash reductions, and the Company's leadership in the Smart Glasses and AR display
industry. They are generally identified by words such as "believes," "may," "expects," "anticipates,"
"should" and similar expressions. Readers should not place undue reliance on such forward-looking statements, which are based
upon the Company's beliefs and assumptions as of the date of this release. The Company's actual results could differ materially due to
risk factors and other items described in more detail in the Company's Annual Reports and other filings with the United States Securities
and Exchange Commission and applicable Canadian securities regulators (copies of which may be obtained at www.sedar.com
or www.sec.gov). Subsequent events and developments may cause these forward-looking
statements to change. The Company specifically disclaims any obligation or intention to update or revise these forward-looking statements
as a result of changed events or circumstances that occur after the date of this release, except as required by applicable law.
Investor Relations Contact
Ed McGregor, Director of Investor Relations
Vuzix Corporation
ed_mcgregor@vuzix.com
Tel: (585) 359-5985
Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY 14586 USA,
Investor Information – IR@vuzix.com
www.vuzix.com
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