# EDGAR Filing Document

**Accession Number:** 0001463972
**File Stem:** 0001104659-23-028505
**Filing Date:** 2023-3
**Character Count:** 17285
**Document Hash:** 1e96860ad3a150a3fbe2c24a7953d721
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-23-028505.hdr.sgml**: 20230303

**ACCESSION NUMBER**: 0001104659-23-028505

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230303

**DATE AS OF CHANGE**: 20230303

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Vuzix Corp
- **CENTRAL INDEX KEY:** 0001463972
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
- **IRS NUMBER:** 043392453
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-35955
- **FILM NUMBER:** 23705698

**BUSINESS ADDRESS:**
- **STREET 1:** 25 HENDRIX ROAD
- **STREET 2:** SUITE A
- **CITY:** WEST HENRIETTA
- **STATE:** NY
- **ZIP:** 14586
- **BUSINESS PHONE:** 585-359-5900

**MAIL ADDRESS:**
- **STREET 1:** 25 HENDRIX ROAD
- **STREET 2:** SUITE A
- **CITY:** WEST HENRIETTA
- **STATE:** NY
- **ZIP:** 14586

?xml version="1.0" encoding="utf-8"?

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) March 1, 2023

**VUZIX CORPORATION**

(Exact name of registrant as specified in its charter)

**Delaware**

(State or other jurisdiction of incorporation)

---

| | |
|:---|:---|
| &nbsp;&nbsp;**001-35955** | &nbsp;&nbsp;**04-3392453** |
| &nbsp;&nbsp;(Commission File Number) | &nbsp;&nbsp;(IRS Employer Identification No.) |

---

**25 Hendrix Road, Suite A** 

**West Henrietta, New York 14586**

(Address of principal executive offices) (Zip code)

**(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:

---

| |
|:---|
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| 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:

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Title of each class:** | &nbsp;&nbsp;**Trading Symbol(s)** | &nbsp;&nbsp;**Name of each exchange on which registered:** |
| &nbsp;&nbsp;Common Stock, par value $0.001 | &nbsp;&nbsp;VUZI | &nbsp;&nbsp;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 March 1, 2023, Vuzix Corporation (the "Company") issued a press release announcing the Company's financial results for the period ended December 31, 2022. 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

[99.1](tm238544d1_ex99-1.htm) [Press Release](tm238544d1_ex99-1.htm) <br> 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

**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: March 3, 2023 | **VUZIX CORPORATION** | **VUZIX CORPORATION** |
|  | By: | /s/ Grant Russell |
|  |  | Grant Russell<br> Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

---

| | |
|:---|:---|
| ![](tm238544d1_ex99-1img01.jpg) | **Press Release** |

---

**Vuzix Reports 4Q and Full Year 2022 Results**

*Q1 confirmed orders and expected shipments to mark one of the strongest quarterly revenues in a decade*

ROCHESTER, N.Y., March 1, 2023 - Vuzix® Corporation (NASDAQ: VUZI) ("Vuzix" or the "Company"), a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products, today reported its fourth quarter and full year financial results for the year ended December 31, 2022.

"In 2022, Vuzix made critical investments in staff, core technology and infrastructure to expand our capabilities and global footprint to meet the demand for our products, components and services," said Paul Travers, President and CEO. "We made significant advancements in our core technology and our waveguide manufacturing technologies. We also kicked off upgrades and expansion of our waveguide manufacturing capabilities and entered into a lease for additional manufacturing space. Both are helping to uniquely position Vuzix to play an important role in the expected multibillion dollar AR market. Furthermore, we also entered into a series of agreements with Atomistic, a France-based firm related to the development of next generation microLED technology. We successfully developed and integrated miniature AR imaging systems and transferred this technology from the R&D lab into the industrial design and product assembly of the Vuzix Ultralite smart glasses OEM platform. We acquired Moviynt, a revenue generating SaaS solution provider that supports SAP and traditional handheld hardware used in warehousing, as well as Vuzix smart glasses. On the operational side, we invested in staff and infrastructure to help our company scale and take advantage of the opportunities at hand in the market."

"2022 as a whole was a challenging year to navigate with supply chain issues, uncertainty caused by Covid, geopolitical tensions and darkening macro-economic forces. Despite these headwinds, there were segments of our business that accelerated, such as our OEM business group, which delivered year-over-year revenue growth of 250% fueled by new customers and follow-on programs from existing customers. During 2022, we also witnessed accelerated smart glasses adoption by key accounts, especially in warehousing and logistics in the form of larger orders to support expansion into additional warehouses and distribution centers. Additionally, in 2022 we continued to expand our global sales channel and strategy within select markets to provide end-to-end smart glasses-based services to end customers," said Mr. Travers.

The following table compares condensed elements of the Company's summarized Consolidated Statements of Operations data for the fourth quarters and years ended December 31, 2022 and 2021, respectively. Readers should refer to Vuzix' Form 10-K for the year ended December 31, 2022 for additional information as well as disclosure of important risk factors:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br> December 31 (unaudited – in 000s)** | **Three Months Ended<br> December 31 (unaudited – in 000s)** | **Twelve Months Ended<br> December 31 (audited – in 000s)** | **Twelve Months Ended<br> December 31 (audited – in 000s)** |
|  | **2022** | **2021** | **2022** | **2021** |
| **Sales:** |  |  |  |  |
| Sales of Products | $2566 | $3127 | $10506 | $12785 |
| Sales of Engineering Services | 332 | 187 | 1330 | 380 |
| **Total Sales** | 2898 | 3314 | 11836 | 13165 |
| **Cost of Products and Eng. Services** | 3024 | 3327 | 10353 | 11596 |
| **Gross (Loss) Profit** | (126) | (12) | 1483 | 1568 |
| **Operating Expenses:** |  |  |  |  |
| Research and Development | 3136 | 3348 | 12677 | 11675 |
| Selling and Marketing | 2183 | 1813 | 8078 | 6119 |
| General and Administrative | 5731 | 5830 | 21039 | 22503 |
| Depreciation and Amortization | 640 | 196 | 1789 | 988 |
| Loss on Fixed Asset Disposal | 35 | 100 | 35 | 184 |
| Impairment of Patents and Trademarks | - | 14 | 98 | 80 |
| **Total Operating Expenses** | 11726 | 11364 | 43715 | 41549 |
| **Loss from Operations** | (11852) | (11315) | (42232) | (39980) |
| **Total Other Income (Expense)** | &nbsp;&nbsp;&nbsp;&nbsp;1093 | (178) | 1469 | (397) |
| **Net Loss** | $(10759) | $(11493) | $(40764) | $(40377) |
| **Loss per Share** | $(0.17) | $(0.17) | $(0.64) | $(0.66) |

---

**Full Year 2022 Financial Results**

For the full year ended December 31, 2022, total revenues were $11.8 million, a decrease of 10% over the comparable period in 2021. The decrease in revenues for the year was due to lower sales of smart glasses, which resulted from a combination of higher average sales discounts due to larger volume reseller sales, negative foreign exchange comparatives and, to a smaller degree, a decrease in overall unit sales. Sales of engineering services for the year ended December 31, 2022, were $1.3 million as compared to $0.4 million in the same period of 2021, an increase of 250%.

There was an overall gross profit of $1.5 million or 13% for the full year ended December 31, 2022 as compared to overall gross profit of $1.6 million or 12% for the same period in 2021.

Research and Development expense was $12.7 million for the year ended December 31, 2022 compared to $11.7 million for the comparable 2021 period, an increase of 9% largely due to a $0.6 million increase in external development expenses related to the Shield and Blade 2 and a $0.4 million increase in salary and benefits expenses due to additional personnel.

Selling and Marketing expense was $8.1 million for the year ended December 31, 2022 compared to $6.1 million for the comparable 2021 period, an increase of 32% that was largely due to a $1.7 million increase in salary and salary benefits related expenses.

General and administrative expense was $21.0 million for the full year ended December 31, 2022 compared to $22.5 million for the comparable 2021 period, a decrease of 7%. The decrease was largely due to a $1.3 million decline in non-cash stock-based compensation and decreases in legal expenses.

The net loss for the full year ending December 31, 2022 was $40.8 million or $0.64 cents per share versus a net loss of $40.4 million or $0.66 for the same period in 2021.

Net cash flows used in operating activities for 2022 was $24.5 million as compared to the prior year's total loss of $27.0 million.

As of December 31, 2022, the Company maintained cash and cash equivalents of $73 million and an overall working capital position of $76 million.

**Fourth Quarter 2022 Financial Results**

For the three months ended December 31, 2022, total revenues were $2.9 million, a 13% decrease over the prior year's period. The decrease was due to lower sales of smart glasses products, partially offset by higher engineering services sales.

There was an overall gross loss of $0.1 million for the three months ended December 31, 2022, as compared to gross loss of $0.01 million for the same period in 2021.

Research and Development expense was $3.1 million for the three months ended December 31, 2022 versus $3.3 million for the comparable 2021 period.

Selling and Marketing expense was $2.2 million for the three months ended December 31, 2022 versus $1.8 million for the comparable 2021 period.

General and administrative expense for the three months ended December 31, 2022 was $5.7 million versus $5.8 million for the comparable 2021 period.

**Management Outlook**

"We expect 2023 will be an exciting year for Vuzix and its shareholders. We entered 2023 in a position of strength and are focused on execution of our business plan to leverage and monetize the critical and prudent investments that were made throughout 2022. Thus far, our first quarter of 2023 is off to a strong start. Based on current shipments in Q1-2023 and purchase orders being processed for shipment in Q1-2023, we should outpace our reported total revenues for every one of our 2022 quarters. For the full year, we have a strong book of business with identified opportunities, large deals and cornerstone customers on the enterprise and OEM side of our business that we expect to come in over the course of the calendar year. As a result, we expect to achieve record overall revenues in 2023 fueled by stronger sales of core smart glasses, SaaS solutions and OEM products and engineering services," said Mr. Travers.

**Conference Call Information**

Date: Wednesday, March 1, 2023

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=wF3xyd0T.

Participating on the call will be Vuzix' Chief Executive Officer and President Paul Travers and Chief Financial Officer Grant Russell, who together will discuss business, operational and financial highlights for the fourth quarter and full year ended December 31, 2022.

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 March 1, 2023, 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 13736502.

**About Vuzix Corporation**

Vuzix is a leading supplier of Smart Glasses and Augmented Reality (AR) technologies and products for the consumer and enterprise markets. The Company's products include personal display and wearable computing devices that offer users a portable high-quality viewing experience, provide solutions for mobility, wearable displays and augmented reality. Vuzix holds 278 patents and patents pending and numerous IP licenses in the 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 2023 and several wireless technology innovation awards among others. Founded in 1997, Vuzix is a public company (NASDAQ: VUZI) with offices in Rochester, NY, Oxford, UK, 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, R&D project successes, smart glass pilot to roll-out conversion rates, future operating results, 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