VUZI on Nasdaq

Vuzix

American multinational technology

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.3 Wikipedia text CC BY-SA 4.0

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Last updated Oct 21, 2026.

Overview

1997Founded1

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  • TickerVUZI on Nasdaq1
  • IndustryRadio & Tv Broadcasting & Communications Equipment1
  • HeadquartersRochester1
  • Websitewww.vuzix.com
  • Legal formpublic company1
  • Incorporated inDE5
  • Business address25 Hendrix Road, Suite A, West Henrietta, Ny 145865
  • Filer categoryNon-accelerated filer, Smaller reporting company5
  • LEI549300EWPW64TZQXJG664
  • StatusActive4
  • LEI statusLapsed (not renewed)4
  • Registered addressC/O CORPORATION SERVICE COMPANY, 19808 Wilmington, United States4
  • Registered withDivision of Corporations, Department of State, 27970444
Vuzix image from its website
Image: vuzix.com7

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.

Key numbers, fiscal 2025

-16.9%Gross margin8
-517.6%Operating margin8
-513.9%Net margin9
9.1%Revenue growth, 20258
-130.8%Return on equity8
-$20.8MFree cash flow9

What sells

Revenue by product, business segment and region, as the company reports it to the SEC.

Products and services

Product brought in 74% of the revenue Vuzix broke down this way in fiscal 2025.

  1. Product$4.7M874%up 4% from 2024
  2. Engineering Services$1.6M826%up 27% from 2024
Products and services by year
Products and services202320242025
Product$10.8M$4.5M$4.7M
Engineering Services$1.4M$1.3M$1.6M

Where the money goes

Where each dollar of revenue went, fiscal 2025

  • Cost of revenue37¢$7.3M
  • Research and development63¢$12.6M

Out of $6.3M in revenue.89 The company lost money this year.

Financial statements

Revenue101112138$6.3M in 2025−6% since 2019
0$5.0M$10.0M$15.0M2019: $6.7M$6.7M20192020: $11.6M$11.6M2020+74%2021: $13.2M$13.2M2021+14%2022: $11.8M$11.8M2022−10%2023: $12.1M$12.1M2023+2%2024: $5.8M$5.8M2024−53%2025: $6.3M$6.3M2025+9%
Gross profit101112138-$1.1M in 2025−76% since 2019
-$6.0M-$4.0M-$2.0M0$2.0M2019: -$4.4M-$4.4M20192020: $598.0K$598.0K20202021: $1.6M$1.6M2021+162%2022: $1.5M$1.5M2022−5%2023: -$2.6M-$2.6M20232024: -$5.6M-$5.6M2024+113%2025: -$1.1M-$1.1M2025−81%
Operating income101112138-$32.5M in 2025+22% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$26.6M-$26.6M20192020: -$19.1M-$19.1M2020−28%2021: -$40.0M-$40.0M2021+109%2022: -$42.2M-$42.2M2022+6%2023: -$52.3M-$52.3M2023+24%2024: -$74.0M-$74.0M2024+41%2025: -$32.5M-$32.5M2025−56%
Net income1011121389-$32.3M in 2025+22% since 2019
-$80.0M-$60.0M-$40.0M-$20.0M02019: -$26.5M-$26.5M20192020: -$18.0M-$18.0M2020−32%2021: -$40.4M-$40.4M2021+125%2022: -$40.8M-$40.8M2022+1%2023: -$50.1M-$50.1M2023+23%2024: -$73.5M-$73.5M2024+47%2025: -$32.3M-$32.3M2025−56%

Every line of the income statement as filed: the last 3 fiscal years (annual) or 12 quarters (quarterly), latest first.8

Period ending2025-12-312024-12-312023-12-31
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 - Basic77.6M shares67.8M shares63.4M shares
Weighted-average Shares Outstanding - Diluted77.6M shares67.8M shares63.4M shares

Compare Vuzix with another company

Corporate structure

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 Hirschman Filed SCHEDULE 13G on Vuzix, latest Jul 27, 2026
  • Quanta Computer Filed SCHEDULE 13G/A on Vuzix, latest Feb 13, 2026 (3 filings since Sep 23, 2024)
  • State Street Corporation Filed SCHEDULE 13G on Vuzix, latest Feb 9, 2026 (4 filings since Feb 10, 2022)
  • BlackRock Filed SCHEDULE 13G on Vuzix, latest Jul 17, 2025 (5 filings since Feb 4, 2022)
  • ARK Investment Management LLC Filed SCHEDULE 13G/A on Vuzix, latest Jan 10, 2025 (5 filings since Feb 9, 2022)
  • VANGUARD GROUP INC Filed SC 13G/A on Vuzix, latest Nov 12, 2024 (4 filings since Feb 9, 2023)
  • Vuzix Rochester, 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.

Property and equipment

ItemLatestA year beforeChange
Computer equipment and software$1.0M8 Dec 31, 2025$1.0M8 Dec 31, 20240%
Property and equipment, before depreciation$16.3M8 Dec 31, 2025$14.3M8 Dec 31, 2024+13.7%
Accumulated depreciation$8.6M8 Dec 31, 2025$6.7M8 Dec 31, 2024+28.5%
Property and equipment, net$7.6M8 Dec 31, 2025$7.6M8 Dec 31, 2024+0.6%
Operating-lease assets (leased space)$1.0M8 Dec 31, 2025$494.2K8 Dec 31, 2024+102.9%

Investments

ItemLatestA year beforeChange
Cash and cash equivalents$21.2M8 Dec 31, 2025$18.2M8 Dec 31, 2024+16.3%

Intangibles and goodwill

ItemLatestA year beforeChange
Intangible assets, net (excluding goodwill)$3.4M8 Dec 31, 2025$3.0M8 Dec 31, 2024+12.0%

Inventory

ItemLatestA year beforeChange
Inventory, total$2.2M8 Dec 31, 2025$4.8M8 Dec 31, 2024−54.5%
Work in process$198.2K8 Dec 31, 2025$264.7K8 Dec 31, 2024−25.1%
Finished goods$2.7M8 Dec 31, 2025$3.9M8 Dec 31, 2024−30.6%

Properties, in its own words

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.

Item 2 of the 10-K filed Mar 12, 2026.16

The story

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.

From Wikipedia’s article on Vuzix, shared under CC BY-SA 4.0.6

Leadership

Who has led Vuzix, and when. Pick a name to see everywhere that person has worked.

Chief financial officer

  1. Grant Russell2009–now
200020052010201520202025
Board members and other officers (17)

Subsidiaries and ownership

Owners

From Wikidata.1

Timeline

  1. Aug 17, 20268-K Results of operations35
  2. Aug 14, 20268-K Entered a material agreement36
  3. Jun 17, 20268-K Shareholder vote37
  4. May 15, 20268-K Results of operations38
  5. Apr 30, 20268-K Executive or director change39
  6. Apr 24, 20268-K Executive or director change40
  7. Mar 13, 20268-K Results of operations41
  8. Nov 14, 20258-K Results of operations42
  9. Sep 23, 20258-K Unregistered sale of shares43
  10. Sep 8, 20258-K Entered a material agreement44
  11. Aug 27, 20258-K Change of auditor45
  12. Aug 15, 20258-K Results of operations46
  13. Dec 8, 2009New chief executive Paul J. Travers becomes CEO17
  14. 1997Founded Founded1

Calendar

Coming up

  1. Nov 12, 2026Reports results for the quarter ending Sep/202647

When it reported results

  1. Aug 17, 2026Reported quarterly or annual results35
  2. May 15, 2026Reported quarterly or annual results38
  3. Mar 13, 2026Reported quarterly or annual results41
  4. Nov 14, 2025Reported quarterly or annual results42
  5. Aug 15, 2025Reported quarterly or annual results46
  6. May 14, 2025Reported quarterly or annual results48
  7. Mar 17, 2025Reported quarterly or annual results49
  8. 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:

  1. Aug 17, 20268-K EDGAR
  2. Aug 14, 20268-K EDGAR
  3. Aug 14, 2026424B5 EDGAR
  4. Aug 13, 202610-Q EDGAR
  5. Jul 27, 2026SCHEDULE 13G EDGAR
  6. Jul 20, 20264 OWNERSHIP DOCUMENT EDGAR
  7. Jul 17, 20264 OWNERSHIP DOCUMENT EDGAR
  8. Jul 17, 20264 OWNERSHIP DOCUMENT EDGAR
  9. Jun 17, 20268-K EDGAR
  10. May 27, 20264 OWNERSHIP DOCUMENT EDGAR
  11. May 21, 2026144 EDGAR
  12. May 21, 20264 OWNERSHIP DOCUMENT EDGAR
  13. May 19, 2026144 EDGAR
  14. May 15, 20268-K EDGAR
  15. May 14, 202610-Q EDGAR
  16. Apr 30, 20264 OWNERSHIP DOCUMENT EDGAR
  17. Apr 30, 20264 OWNERSHIP DOCUMENT EDGAR
  18. Apr 30, 20268-K EDGAR
  19. Apr 28, 2026DEFA14A EDGAR
  20. Apr 28, 2026DEF 14A EDGAR

The 197 filings since October 2021 can be filtered by form type and year here when JavaScript is on.

Every filing from the last five years, summarized. The full record is on SEC EDGAR.

Insider trades

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.

DateWhoTradeSharesPriceValueFiling
May 26, 2026Whitten-Doolin Paula BeckDirectorSale32,000$4.68$149.8KForm 4
May 21, 2026Harned Timothy HeydenreichDirectorSale10,000$4.73$47.3KForm 4
Mar 4, 2026Parkinson Christopher IainSale11,663$2.69$31.4KForm 4
Dec 22, 2025Parkinson Christopher IainSale9,457$2.92$27.6KForm 4
Apr 22, 2024Harned Timothy HeydenreichDirectorBuy20,000$1.31$26.2KForm 4
Apr 22, 2024Travers Paul JPresident and CEOBuy14,500$1.25$18.2KForm 4
Apr 18, 2024Travers Paul JPresident and CEOBuy7,500$1.34$10.1KForm 4
Nov 15, 2023Travers Paul JPresident and CEOBuy7,500$2.57$19.3KForm 4
Aug 16, 2023Kay Edward William Jr.DirectorBuy10,000$4.23$42.3KForm 4
May 16, 2023Harned Timothy HeydenreichDirectorBuy2,500$3.82$9.6KForm 4
Mar 14, 2023Travers Paul JPresident and CEOBuy2,557$3.87$9.9KForm 4
Mar 13, 2023Travers Paul JPresident and CEOBuy2,600$3.83$10.0KForm 4
Mar 10, 2023Jameson Peter HamiltonChief Operating OfficerBuy2,600$3.79$9.9KForm 4
Dec 14, 2022Rajgopal RajDirectorBuy6,565$4.09$26.9KForm 4
Dec 13, 2022Kay Edward William Jr.DirectorBuy7,500$4.15$31.1KForm 4
Dec 1, 2022Russell GrantCFOBuy5,000$4.18$20.9KForm 4
Nov 29, 2022Harned Timothy HeydenreichDirectorBuy3,000$4.01$12.0KForm 4
Nov 21, 2022Travers Paul JPresident and CEOBuy4,400$4.44$19.6KForm 4
Mar 9, 2022Harned Timothy HeydenreichDirectorBuy1,500$6.42$9.6KForm 4
Mar 8, 2022Travers Paul JPresident and CEOBuy1,250$5.58$7.0KForm 4

All 23 trades can be filtered by person here when JavaScript is on.

From Forms 4 filed with the SEC.

Major holders

Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.

Executive pay

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.

YearExecutiveAgeSalaryTotal pay
2025Chris ParkinsonPresident Enterprise Solutions$103.8K$2.6M57
2025Paul TraversPresident$471.1K$1.4M57
2025Grant RussellChief Financial$435.3K$858.2K57
2025Peter JamesonChief Operating$101.7K$131.5K57
2024and Chief Executive Officer$376.8K$1.0M57
2024Officer and Executive Vice President$386.9K$732.7K57
2024Officer (former)$308.1K$693.5K57

Money raised

Private offerings the company reported to the SEC on Form D.

  1. Sep 3, 2024Raised $20 million in a private offering of equity Form D: 1 investor so far Form 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.

FundSharesValueShare of the fundChange
State Street Corp7,629,890$22.1M0.0%+309,977
AIGH Capital Management LLC6,745,667$19.6M1.8%+3,449,913
BlackRock, Inc.4,793,172$13.9M0.0%+28,577
Vanguard Capital Management LLC3,123,693$9.1M0.0%+251,128
Geode Capital Management, LLC1,797,372$5.2M0.0%+168,663
Mitsubishi UFJ Asset Management Co., Ltd.761,265$2.2M0.0%−1,233,207
Renaissance Technologies LLC742,199$2.2M0.0%New
Susquehanna International Group, Llp725,578$2.1M0.0%−27,538
Northern Trust Corp587,749$1.7M0.0%+62,306
Vanguard Fiduciary Trust Co499,442$1.4M0.0%+36,520
Vanguard Portfolio Management LLC481,452$1.4M0.0%+81,894
Alesco Advisors, LLC, An ESL Co367,071$1.1M0.0%+100,060
Taylor Frigon Capital Management LLC321,981$933.7K0.4%−1,060
Formula Growth Ltd250,000$725.0K0.3%+100,000
Nuveen, LLC214,573$622.3K0.0%−408,224
Charles Schwab Investment Management Inc210,691$611.0K0.0%+13,075
Bnp Paribas Financial Markets197,981$574.1K0.0%+643
UBS Group AG173,283$502.5K0.0%−139,020
Laurel Oak Wealth Management, LLC158,000$458.2K0.1%No change
Bank of New York Mellon Corp155,611$451.3K0.0%+19,945
Morgan Stanley144,627$419.4K0.0%−61,919
SEB Asset Management AB139,602$404.8K0.0%+1,073
Squarepoint Ops LLC98,919$286.9K0.0%+57,655
Aqr Capital Management LLC94,257$273.3K0.0%+29,806
LPL Financial LLC88,636$257.0K0.0%−20,993

13F reports cover disclosed long positions in U.S. stocks only.

Members of Congress who traded it

8 trades disclosed by members of Congress. “Vs S&P since” is the stock’s change since the trade minus the S&P 500’s.

DateMemberTradeAmountVs S&P sinceFiling
Sep 3, 2026Kevin HernRepublican, HouseSale$1,001 - $15,000+11.3%Report
Sep 3, 2026Kevin HernRepublican, HouseSale$1,001 - $15,000+11.3%Report
Jan 2, 2024Kevin HernRepublican, HouseSale$1,001 - $15,000+62.8%Report
Dec 20, 2021Kevin HernRepublican, HouseSale$50,001 - $100,000+144.8%Report
May 20, 2021Kevin HernRepublican, HouseBuy$1,001 - $15,000−172.9%Report
May 20, 2021Kevin HernRepublican, HouseBuy$1,001 - $15,000−172.9%Report
May 20, 2021Kevin HernRepublican, HouseBuy$1,001 - $15,000−172.9%Report
May 18, 2021Kevin HernRepublican, HouseBuy$15,001 - $50,000−174.3%Report

Members report amounts as ranges, not exact figures. Returns are price-only (no dividends).

SEC filer profile

How Vuzix is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.

  • Name on EDGARVuzix Corp2
  • CIK0001463972
  • Employer ID (EIN)04-339245316
  • Filer statusNon-accelerated filer not an emerging growth company; a smaller reporting company; not a shell company16
  • Incorporated inDelaware16
  • Fiscal year endsDecember 312
  • Industry code (SIC)3663 Radio & Tv Broadcasting & Communications Equipment2
  • SEC reviewing officeOffice of Manufacturing, Division of Corporation Finance2
  • Business address25 Hendrix Road, Suite A, West Henrietta, NY 145862
  • Phone585-359-59002
  • Shares outstanding84,414,230 as of Aug 13, 20269
  • Public float$189.4M as of Jun 30, 202516
  • AuditorWithumSmith+Brown, PC, Rochester, New York PCAOB ID 317; no auditor attestation of internal control over financial reporting16
  • On EDGAR sinceJul 2, 20092
  • Filings630 in all: 4 (178), 8-K (146), 10-Q (50), SC 13G/A (28), 3 (23), DEF 14A (18), 10-K (17), CORRESP (17)2
    All 40 form types

    424B5 (13), UPLOAD (13), EFFECT (12), S-1/A (12), SC 13G (12), 424B3 (8), DEFA14A (8), S-3 (8), SC 13D/A (8), 4/A (5), NT 10-Q (5), D (4), NT 10-K (4), CERTNAS (3), FWP (3), S-1 (3), S-3/A (3), SC 13D (3), SCHEDULE 13G (3), SCHEDULE 13G/A (3), 10-Q/A (2), 144 (2), 424B4 (2), 8-A12B (2), 8-K/A (2), CT ORDER (2), PRE 14A (2), S-8 (2), 10-K/A (1), 8-A12G (1), POS AM (1), S-1MEF (1)

  • Latest filingsAnnual report (10-K) Mar 12, 2026
    Quarterly report (10-Q) Aug 13, 2026
    Proxy statement (DEF 14A) Apr 28, 2026
    Latest 8-K (8-K) Aug 17, 2026

Securities registered for trading

ClassSymbolExchange
Common Stock, par value $0.001VUZINasdaq

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.

The opening of Item 3, Legal Proceedings.16

Sources

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