Company: VUZI
Filing Date: 2025-04-18
Form Type: PRE 14A
Source: 0001104659-25-036288
Chunk: 41

Company: Vuzix Corp
Filing Date: 2025-04-18
Form: PRE 14A
Chunk 41
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 of the holder, into ten shares of common stock, subject to adjustment for stock splits, stock dividends, and similar transactions. As of April 21, 2025, of the Company’s 100,000,000 authorized shares of common stock, the Company has 5,697,288 shares of unallocated common stock remaining available for issuance, or a maximum of 5.7% available for future dilution, (after reserving for all outstanding stock options and shares potentially issuable to Quanta upon conversion of the Series B Preferred Stock issuable pursuant to our purchase agreement with Quanta). The Board of Directors believes that the increase in authorized shares of common stock will provide the Company greater flexibility with respect to the Company’s capital structure for additional equity financings and stock-based acquisitions in fulfillment of its growth aspirations. Effects of the Increase in Authorized Common Stock The additional shares of common stock will have the same rights as the presently authorized shares, including the right to cast one vote per share of common stock. Although the authorization of additional shares will not, in and of itself, have any effect on the rights of any holder of our common stock, the future issuance of additional shares of common stock (other than by way of a stock split or dividend) would have the effect of diluting the voting rights and could have the effect of diluting earnings per share and book value per share of existing stockholders. At present, other than in connection with the possible conversion of outstanding options and convertible preferred stock issuable under our purchase agreement with Quanta (each at the option of their respective holders), and with respect to the grant of RSUs as set forth in Proposal 6, the Board of Directors has no other plans to issue the additional shares of common stock to be authorized under the amendment. However, it is possible that some of these additional shares could be used in the future for various other purposes without further stockholder approval, except as such approval may be required in particular cases by our charter documents, applicable law or the rules of any stock exchange or other system on which our securities may then be listed. These purposes may include: raising capital, providing equity incentives to employees, officers or directors, establishing strategic relationships with other companies, and expanding the Company’s business or product lines through the acquisition of other businesses or products. We could also use the additional shares of common stock that will become available to oppose a hostile takeover attempt or to delay or prevent changes in control or management of the Company. Although the proposal to increase the authorized common stock has not