Vuzix Corporation is an American multinational technology company headquartered in Rochester, New York and founded by Paul Travers in 1997. Vuzix is a supplier of smartglasses and augmented reality display technology. Vuzix manufactures and sells computer display devices and software.3Wikipedia text CC BY-SA 4.0
Vuzix Corporation is an American multinational technology company headquartered in Rochester, New York and founded by Paul Travers in 1997. Vuzix is a supplier of smartglasses and augmented reality display technology. Vuzix manufactures and sells computer display devices and software. Vuzix head-mounted displays are marketed towards mobile and immersive augmented reality applications, such as 3D gaming, manufacturing training, and military tactical equipment. On January 5, 2015, Intel acquired 30% of Vuzix's stock for $24.8 million.3
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Out of $6.3M in revenue.89 The company lost money this year.
Financial statements
Revenue101112138$6.3M in 2025−6% since 2019Gross profit101112138-$1.1M in 2025−76% since 2019Operating income101112138-$32.5M in 2025+22% since 2019Net income1011121389-$32.3M in 2025+22% since 2019
Revenue8149$1.1M in Q2 FY2026−50% since Q4 FY2025Gross profit8149-$645.4K in Q2 FY2026Operating income149-$7.8M in Q2 FY2026+8% since Q1 FY2026Net income8149-$7.6M in Q2 FY2026−11% since Q4 FY2025
Every line of the income statement as filed: the last 3 fiscal years (annual) or 12 quarters (quarterly), latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
Total Sales
$6.3M
$5.8M
$12.1M
Cost of Sales - Depreciation and Amortization
$677.9K
$734.5K
$886.1K
Total Cost of Sales
$7.3M
$11.4M
$14.8M
Gross Loss
-$1.1M
-$5.6M
-$2.6M
Research and Development
$12.6M
$9.6M
$12.3M
Selling and Marketing
$5.5M
$8.2M
$12.7M
General and Administrative
$11.6M
$17.2M
$18.6M
Depreciation and Amortization
$1.6M
$3.0M
$3.8M
Loss on Goodwill and Other Intangible Asset Impairment
$2.1M
Loss on Fixed Asset Disposal
$106.9K
$27.7K
$0
Impairment on Intangible Asset and Equity Investment
$30.3M
Impairment of Patents and Trademarks
$0
$0
$41.9K
Total Operating Expenses
$31.4M
$68.4M
$49.7M
Loss From Operations
-$32.5M
-$74.0M
-$52.3M
Investment Income
$672.3K
$591.3K
$2.2M
Other Taxes
$23.1K
$59.3K
-$231.0K
Foreign Exchange Loss
-$60.6K
-$217.3K
-$44.1K
Impairment Loss on Equity Investment
-$400.0K
$0
$0
Utility Improvement Refund
$208.3K
Total Other Income, Net
$234.8K
$433.3K
$2.2M
Loss Before Provision for Income Taxes
-$32.3M
-$73.5M
-$50.1M
Provision for Income Taxes
$0
$0
$0
Net Loss
-$32.3M
-$73.5M
-$50.1M
Preferred Stock Dividends
-$62.3K
Loss Attributable to Common Shareholders - Basic
-$32.3M
-$73.5M
-$50.1M
Loss Attributable to Common Shareholders - Diluted
-$32.3M
-$73.5M
-$50.1M
Basic Net Loss per Common Share
-$0.42
-$1.08
-$0.79
Diluted Net Loss per Common Share
-$0.42
-$1.08
-$0.79
Weighted-average Shares Outstanding - Basic
77.6M shares
67.8M shares
63.4M shares
Weighted-average Shares Outstanding - Diluted
77.6M shares
67.8M shares
63.4M shares
Period ending
2025-12-31
2025-09-30
2025-06-30
2025-03-31
2024-12-31
2024-09-30
2024-06-30
2024-03-31
2023-12-31
2023-09-30
2023-06-30
2023-03-31
Total Sales
$2.2M
$1.2M
$1.3M
$1.6M
$1.3M
$1.4M
$1.1M
$2.0M
$1.1M
$2.2M
$4.7M
$4.2M
Gross Loss
$375.0K
-$411.0K
-$761.0K
-$265.0K
-$5.0M
-$260.0K
-$333.0K
-$53.0K
-$4.2M
-$238.0K
$972.0K
$876.0K
Net Loss
-$8.6M
-$7.4M
-$7.7M
-$8.6M
-$13.7M
-$9.2M
-$40.6M
-$10.0M
-$19.9M
-$11.0M
-$9.0M
-$10.2M
Basic Net Loss per Common Share
-$0.12
-$0.09
-$0.10
-$0.11
-$0.16
-$0.14
-$0.62
-$0.16
-$0.32
-$0.17
-$0.14
-$0.16
Diluted Net Loss per Common Share
-$0.12
-$0.09
-$0.10
-$0.11
-$0.16
-$0.14
-$0.62
-$0.16
-$0.32
-$0.17
-$0.14
-$0.16
Total assets15101112138$40.1M in 2025+41% since 2019Total liabilities15101112138$5.4M in 2025+28% since 2019Shareholders’ equity1112138$24.7M in 2025+2% since 2019Cash15101112138$21.2M in 2025+99% since 2019
Total assets149$35.2M in Q2 FY2026−12% since Q1 FY2025Total liabilities149$4.1M in Q2 FY2026−24% since Q1 FY2025Shareholders’ equity149$21.1M in Q2 FY2026−14% since Q1 FY2025Cash149$17.3M in Q2 FY2026−18% since Q1 FY2025
Every line of the balance sheet as filed: the last 5 fiscal years (annual) or 5 quarters (quarterly), latest first.8
Period ending
2025-12-31
2025-09-30
2024-12-31
2023-12-31
2022-12-31
Cash and Cash Equivalents
$21.2M
$18.2M
Accounts Receivable, net of allowance for credit losses of $46,000 at December 31, 2025 and $89,000 at December 31, 2024
$1.6M
$1.6M
Accrued Revenues in Excess of Billings
$533.7K
$673.5K
Other Receivables
$379.6K
Inventories, Net
$2.2M
$4.8M
Manufacturing Vendor Prepayments
$256.1K
$372.1K
Prepaid Expenses and Other Assets
$1.1M
$1.1M
Total Current Assets
$27.2M
$26.7M
Fixed Assets, Net
$7.6M
$7.6M
Operating Lease Right-of-Use Assets, Net
$1.0M
$1.0M
$494.2K
Patents and Trademarks, Net
$3.4M
$3.0M
Technology Licenses, Net
$560.0K
$761.0K
Other Assets, Net
$327.8K
$844.4K
Total Assets
$40.1M
$39.4M
Accounts Payable
$685.0K
$538.2K
Unearned Revenue
$62.4K
$125.9K
Accrued Expenses
$3.6M
$945.8K
Other Taxes Payable
$49.5K
$8.2K
Operating Lease Right-of-Use Liabilities
$500.9K
$494.2K
Total Current Liabilities
$4.9M
$2.1M
Operating Lease Right-of-Use Liability
$502.1K
Total Liabilities
$5.4M
$2.1M
Preferred Stock - $0.001 Par Value, 5,000,000 Shares Authorized; 419,959 and zero Shares of Series B Preferred Stock Issued and Outstanding as of December 31, 2025 and December 31, 2024
$10.0M
Common Stock - $0.001 Par Value, 200,000,000 shares authorized; 81,679,367 shares issued and 81,099,695 shares outstanding as of December 31, 2025 and 100,000,000 shares authorized; 76,553,694 shares issued and 75,974,022 shares outstanding as of December 31, 2024
$81.7K
$76.6K
Additional Paid-in Capital
$426.9M
$407.2M
Accumulated Deficit
-$399.9M
-$367.5M
Treasury Stock, at cost, 579,672 shares as of December 31, 2025 and December 31, 2024
-$2.5M
-$2.5M
Total Stockholders' Equity
$24.7M
$37.3M
$80.8M
$115.5M
Total Liabilities, Mezzanine Equity, and Stockholders' Equity
$40.1M
$39.4M
Allowance for Doubtful Accounts Receivable
$46.0K
$89.0K
Preferred Stock, Par Value
$0.00
$0.00
Preferred Stock, Shares Authorized
5.0M shares
5.0M shares
Common Stock, Par Value
$0.00
$0.00
Common Stock, Shares Authorized
200.0M shares
100.0M shares
Common Stock, Shares Issued
81.7M shares
76.6M shares
Common Stock, Shares Outstanding
81.1M shares
76.0M shares
Common shares held in treasury
579.7K shares
579.7K shares
Period ending
2025-12-31
2025-09-30
2024-12-31
2023-12-31
2022-12-31
Cash and Cash Equivalents
$21.2M
$18.2M
Accounts Receivable, net of allowance for credit losses of $46,000 at December 31, 2025 and $89,000 at December 31, 2024
$1.6M
$1.6M
Accrued Revenues in Excess of Billings
$533.7K
$673.5K
Other Receivables
$379.6K
Inventories, Net
$2.2M
$4.8M
Manufacturing Vendor Prepayments
$256.1K
$372.1K
Prepaid Expenses and Other Assets
$1.1M
$1.1M
Total Current Assets
$27.2M
$26.7M
Fixed Assets, Net
$7.6M
$7.6M
Operating Lease Right-of-Use Assets, Net
$1.0M
$1.0M
$494.2K
Patents and Trademarks, Net
$3.4M
$3.0M
Technology Licenses, Net
$560.0K
$761.0K
Other Assets, Net
$327.8K
$844.4K
Total Assets
$40.1M
$39.4M
Accounts Payable
$685.0K
$538.2K
Unearned Revenue
$62.4K
$125.9K
Accrued Expenses
$3.6M
$945.8K
Other Taxes Payable
$49.5K
$8.2K
Operating Lease Right-of-Use Liabilities
$500.9K
$494.2K
Total Current Liabilities
$4.9M
$2.1M
Operating Lease Right-of-Use Liability
$502.1K
Total Liabilities
$5.4M
$2.1M
Preferred Stock - $0.001 Par Value, 5,000,000 Shares Authorized; 419,959 and zero Shares of Series B Preferred Stock Issued and Outstanding as of December 31, 2025 and December 31, 2024
$10.0M
Common Stock - $0.001 Par Value, 200,000,000 shares authorized; 81,679,367 shares issued and 81,099,695 shares outstanding as of December 31, 2025 and 100,000,000 shares authorized; 76,553,694 shares issued and 75,974,022 shares outstanding as of December 31, 2024
$81.7K
$76.6K
Additional Paid-in Capital
$426.9M
$407.2M
Accumulated Deficit
-$399.9M
-$367.5M
Treasury Stock, at cost, 579,672 shares as of December 31, 2025 and December 31, 2024
-$2.5M
-$2.5M
Total Stockholders' Equity
$24.7M
$37.3M
$80.8M
$115.5M
Total Liabilities, Mezzanine Equity, and Stockholders' Equity
$40.1M
$39.4M
Allowance for Doubtful Accounts Receivable
$46.0K
$89.0K
Preferred Stock, Par Value
$0.00
$0.00
Preferred Stock, Shares Authorized
5.0M shares
5.0M shares
Common Stock, Par Value
$0.00
$0.00
Common Stock, Shares Authorized
200.0M shares
100.0M shares
Common Stock, Shares Issued
81.7M shares
76.6M shares
Common Stock, Shares Outstanding
81.1M shares
76.0M shares
Common shares held in treasury
579.7K shares
579.7K shares
Cash from operations1011121389-$18.8M in 2025−16% since 2019Capital spending101112138$2.0M in 2025+6% since 2019Free cash flow1011121389-$20.8M in 2025−14% since 2019Share buybacks138$470.8K in 2023−77% since 2022
Cash flow is reported year to date, not quarter by quarter, so there are no separate quarterly figures.
Every line of the cash flow as filed: the last 4 fiscal years, latest first.8
Period ending
2025-12-31
2024-12-31
2023-12-31
2020-12-31
Net Loss
-$32.3M
-$73.5M
-$50.1M
Depreciation and Amortization
$3.1M
$3.9M
$4.9M
Stock-Based Compensation
$5.3M
$11.6M
$12.7M
Impairment of Patents and Trademarks
$0
$0
$41.9K
Loss on Fixed Asset Disposal
$106.9K
$27.7K
$0
Allowance for Credit Losses
$977.4K
$1.6M
Inventory Reserves for Obsolescence
$503.4K
$4.2M
$4.4M
Impairment on Goodwill, Intangible Assets, and Equity Investments
$400.0K
$30.3M
$2.1M
Accounts Receivable
-$17.9K
$1.2M
-$1.8M
Accrued Revenues in Excess of Billings
$139.8K
-$507.7K
$103.4K
Other Receivables
-$379.6K
$208.3K
$258.4K
Inventories
$2.1M
$19.3K
-$2.1M
Manufacturing Vendor Prepayments
$116.0K
$31.7K
$594.9K
Prepaid Expenses and Other Assets
$7.7K
$271.4K
$167.8K
Accounts Payable
$146.8K
-$1.0M
$358.9K
Accrued Expenses
$1.9M
-$1.5M
$745.9K
Unearned Revenue
-$63.5K
$107.1K
-$10.2K
Income and Other Taxes Payable
$41.4K
-$38.6K
-$168.3K
Net Cash Flows Used in Operating Activities
-$18.8M
-$23.7M
-$26.3M
Purchases of Fixed Assets
-$2.0M
-$1.4M
-$5.3M
Investments in Patents and Trademarks
-$554.8K
-$561.0K
-$632.5K
Investments in Licenses
-$1.0M
-$10.5M
Investments in Software Development
-$125.0K
-$500.0K
Investment in Atomistic
-$2.5M
Investments in Other Equity Assets
-$50.0K
-$200.0K
Net Cash Flows Used in Investing Activities
-$2.6M
-$2.9M
-$19.3M
Proceeds from Sale of Preferred and Common Stock to Quanta
$10.0M
$10.0M
Proceeds from Exercise of Stock Options
$106.8K
$110.8K
$21.2K
Proceeds from ATM Program, Net
$14.3M
$8.2M
Purchase of Treasury Stock
-$470.8K
Net Cash Flows Provided by (Used in) Financing Activities
$24.4M
$18.3M
-$449.6K
Net Increase (Decrease) in Cash and Cash Equivalents
$3.0M
-$8.4M
-$46.0M
Non-Cash Investment in Licenses
$1.0M
Investment in Atomistic - Equity issued
$181.7K
$3.3M
Accrued Preferred Dividends included in Accrued Expenses
$39.9K
Depreciation and Amortization included in Research and Development Expense
$869.4K
$201.1K
$201.1K
Stock-Based Compensation Expense - Expensed less Previously Issued
$92.5K
Purchases of Fixed Assets included in Accrued Expenses
Vuzix sits at the top of its group. 1 entity, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of Vuzix
Orin HirschmanFiled SCHEDULE 13G on Vuzix, latest Jul 27, 2026
Quanta ComputerFiled SCHEDULE 13G/A on Vuzix, latest Feb 13, 2026 (3 filings since Sep 23, 2024)
State Street CorporationFiled SCHEDULE 13G on Vuzix, latest Feb 9, 2026 (4 filings since Feb 10, 2022)
BlackRockFiled SCHEDULE 13G on Vuzix, latest Jul 17, 2025 (5 filings since Feb 4, 2022)
VANGUARD GROUP INCFiled SC 13G/A on Vuzix, latest Nov 12, 2024 (4 filings since Feb 9, 2023)
VuzixRochester, New York, United States
Built from parent and subsidiary links from GLEIF, the Global Legal Entity Identifier Foundation (CC0); major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What Vuzix reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
We lease approximately 39,000 square feet as our main facility at 25 Hendrix Road, West Henrietta, New York, 14586 (a suburb of Rochester). This facility houses our headquarters office, R&D and manufacturing space under an
operating lease for the facility that we began occupying in October 2015. In October 2022, we leased an additional 12,000 square feet for our new waveguide manufacturing facility at 30 Becker Road, also in West Henrietta, New York. The total base rent contractual payment obligations under these operating leases are currently $675,000 per year. The lease at 25 Hendrix Road has an original five-year term with an option by the Company to renew for two additional three-year terms at pre-agreed lease rates. On September 23, 2025, the Company executed lease renewal agreements for both its current properties located in West Henrietta, New York extending the current lease terms to November 30, 2027. We believe that our West Henrietta facilities are in good operating condition and currently adequately serve our needs and expect to negotiate new lease renewals by November 30, 2027.
The rest of Item 2
In April 2025, Vuzix leased a facility located in Milpitas, California upon the purchase of advanced waveguide R&D equipment operating in that space. The lease for this space is on a month-to-month basis at a cost of $35,000 per month.
In Okayama and Kyoto, Japan, we rent office space of 1,000 square feet and 100 square feet, respectively, at a cost of approximately $38,000 per year. These leases are on a month-to-month basis.
Paul Travers founded Vuzix in 1997 in Rochester, NY, under the name Interactive Imaging Systems, purchasing the assets of the virtual reality company Forte Technologies. The company started with products for the military and U.S. Defense, but then developed consumer virtual reality systems. In 1997, the company was hired as a subcontractor to Raytheon, designing display electronics for a digital night vision weapon sight.
In 2000, the VFX1 Headgear was featured in a commemorative US Postal Service stamp collection celebrating the 1990s. The VFX1 was replaced by a higher resolution system dubbed the VFX3D in mid 2000.
In 2001, Vuzix launched its first consumer electronics product, the iCOM personal internet browser.
In 2005, Vuzix provided a custom high resolution handheld display system that created the 3D imagery for Hitachi's pavilion at the 2005 World's Fair in Aichi, Japan. The Hitachi Pavilion allowed users to interact with computer generated models and dioramas of endangered species in a Mixed Reality ride.
In 2005, the company changed its name to Icuiti. Later that year, Icuiti launched its first product designed specifically for consumers, the V920 Video Eyewear.
In 2005, Icuiti was awarded its first military R&D contract to develop a high resolution monocular display device for viewing tactical maps and video. This development would lead to the Tac-Eye product line, which began rate production in 2009 and was used in many major military programs including the Battlefield Air Operations kit.
A re-branding in 2007 changed the company's name from Icuiti to Vuzix.
In 2010, Vuzix introduced the first production model see-through augmented reality glasses, the STAR 1200. It was released in August 2011 for $4999.
Read the full text
Vuzix was under contract with DARPA to design and build a next generation heads up display for military ground personnel.
In January 2013, at CES, Vuzix Corporation demonstrated working models of its new M100 Smart Glasses. The product was given a CES Innovations award. The Vuzix Smart Glasses M100, shipped in the first financial quarter of 2013, enabled wearers to remotely access data and content from an iOS or Android smartphone.
In January 2015, Intel invested $25 million in the company, gaining 30% ownership of the company.
In August 2017, Vuzix and BlackBerry became partners to deliver smart glasses for the enterprise.
Nov 12, 2026Reports results for the quarter ending Sep/202647
When it reported results
Aug 17, 2026Reported quarterly or annual results35
May 15, 2026Reported quarterly or annual results38
Mar 13, 2026Reported quarterly or annual results41
Nov 14, 2025Reported quarterly or annual results42
Aug 15, 2025Reported quarterly or annual results46
May 14, 2025Reported quarterly or annual results48
Mar 17, 2025Reported quarterly or annual results49
Nov 18, 2024Reported quarterly or annual results50
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
197 filings to the SEC since October 2021: 6 annual reports, 15 quarterly reports, 40 major events, 65 insider forms, 22 large holders, 1 private raises, 48 other. The latest 20:
23 open-market trades by officers, directors and large owners since October 2021: 19 buys and 4 sales. Grants, option exercises and gifts are left out.
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
Private offerings the company reported to the SEC on Form D.
Sep 3, 2024Raised $20 million in a private offering of equityForm D: 1 investor so farForm D
Held by these funds
The largest holders among investment managers' 13F reports for the quarter ending Jun 30, 2026, the top 25 of 100. Change is in shares since the quarter before.
From the cover page of the 10-K filed Mar 12, 2026 (Section 12(b) of the Exchange Act).16
Risk factors and legal proceedings
The risks Vuzix names in Item 1A of its 10-K filed Mar 12, 2026: 33 risks under these headings, as written.16
General Business and Industry Risks
We have incurred net losses since our inception and may continue to incur losses.
We operate in a highly competitive and complex market and believe our future success depends in part on our ability to effectively manage the growth and increased complexity of our business.
The size, resources and brand name of some of our competitors may allow them to compete more effectively than we can, which could result in a loss of our market share and a decrease in our revenue.
Our lack of long-term purchase orders or binding commitments from customers could result in significant volatility and a rapid decline in our sales and operating results.
We depend on advances in certain technology by other companies and if those advances do not materialize, some of our anticipated new products could be delayed or cancelled.
If microdisplay-based personal displays or near-eye displays do not gain greater acceptance in the market for head worn or mobile displays, our business strategy may fail.
There are a number of competing providers of microdisplay-based personal display technology, including smart glasses, and we may fail to capture a substantial portion of the personal wearable display market.
Our products may experience declining unit prices and we may not be able to offset that decline with production cost decreases or higher unit sales.
Our business depends in part on access to third-party platforms or technologies, and if the access is withdrawn, denied, or is not available on terms acceptable to us, or if the platforms or technologies change without notice to us, our business and operating results could be adversely affected.
Our use of open-source software could negatively affect our ability to sell our products and could subject us to possible litigation.
Our operating results may be adversely impacted by worldwide political, economic, public health uncertainties, wars and specific conditions in the markets we address.
The other 22 risks
Due to our significant level of international operations, including the use of foreign suppliers and contract manufacturers, we are subject to international operational, financial, legal, political and public health risks which could harm our operating results.
Cybersecurity incidents or failures of our information technology systems, or those of third parties, could adversely affect our business, results of operations, and financial condition.
We may lose the services of key management personnel and may not be able to attract and retain other necessary personnel.
Operational Risks
The design, tooling and manufacture of waveguides encompasses several complex processes, and several steps of our production processes are dependent upon certain critical machines and tools which could result in delivery interruptions, which could adversely affect our operating results.
Our waveguide and display engine products sales to third parties are subject to lengthy OEM development periods.
Our dependence on sales to VARs, distributors, and other resellers increases the risks of managing our supply chain and may result in excess inventory or inventory shortages.
Our reliance on third party suppliers, including sole source suppliers, for critical components and manufacturing exposes us to supply disruptions, cost increases, long lead times, and component obsolescence, any of which could materially and adversely affect our business, financial condition, and results of operations.
Our facilities and information systems and those of our key suppliers could be damaged as a result of disasters or unpredictable events, which could have an adverse effect on our business operations.
Financial and Market Risks
We have not paid dividends in the past and do not expect to pay dividends in the future on our common stock.
Our stock price may be volatile in the future.
There is uncertainty regarding the exclusive forum clause in our amended and restated bylaws.
Additional stock offerings in the future may dilute the existing stockholders’ percentage ownership of our Company.
If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
Our results of operations may suffer if we are not able to successfully manage our increasing exposure to foreign exchange rate risks.
Legal and Regulatory Risks
Our business and products are subject to extensive government regulation, and failure to comply with applicable laws and regulations, or changes in such laws and regulations, could adversely affect our business, financial condition, and results of operations.
Regulations related to conflict minerals may cause us to incur additional expenses and could limit the supply and increase the costs of certain materials used in the manufacturing of our products.
We could be adversely affected by violations of anti-bribery laws in other jurisdictions in which we operate.
We are subject to governmental export and import controls and economic sanctions laws that could subject us to liability and impair our ability to compete in international markets.
Changes in trade policy in the United States and other countries, including changes in trade agreements and the imposition of tariffs and the resulting consequences, may have adverse impacts on our business, results of operations and financial condition.
We collect, store, process and use portions of our customers’ personally identifiable information and other data, which subjects us to governmental regulation and other legal obligations related to privacy, information security and data protection. Any cybersecurity breaches or our actual or perceived failure to comply with such legal obligations by us, or by our third-party service providers or partners, could harm our business.
Our products could infringe on the intellectual property rights of others.
Our intellectual property rights and proprietary rights may not adequately protect our products.
Legal proceedings
We are involved in various lawsuits and claims arising in the ordinary course of business, including actions with respect to intellectual property, employment, and contractual matters. In connection with these matters, we assess, on a regular basis, the probability and range of possible loss based upon the developments in these matters. A liability is recorded in the consolidated financial statements if it is believed to be probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly subjective and requires judgments about future events. We regularly review outstanding legal matters to determine the adequacy of the liabilities accrued and related disclosures in consideration of many factors, which include, but are not limited to, past history, scientific and other evidence, and the specifics and status of each matter. We may change our estimates if our assessment of the various factors changes and the amount of ultimate loss may differ from our estimates, resulting in a material effect on our business, financial condition, results of operations, and/or cash flows. With respect to these matters, based upon management’s current knowledge, the Company believes that the amount or range of any reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations or cash flows.
The Company is not currently party to, nor is its property subject to, any material legal proceedings.