Company: VUZI
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001558370-25-007368
Chunk: 23

Company: Vuzix Corp
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 23
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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 – Basis of PresentationThe 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, 2025, 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, 2024, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on March 13, 2025.​Customer ConcentrationsFor the three months ended March 31, 2025, one customer represented 42% of total product revenue and three customers represented 94% of engineering services revenue. For the three months ended March 31, 2024, one customer represented 60% of total product revenue and two customers represented 99% of engineering services revenue. As of March 31, 2025, two customers represented 82% of accounts receivable. As of December 31, 2024, one customer represented 76% 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