Vuzix (VUZI) 10-Q14 Aug 242024 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 14, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-35955
Entity Registrant Name	Vuzix Corp
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3392453
Entity Address, Address Line One	25 Hendrix Road, Suite A
Entity Address, City or Town	West Henrietta
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	14586
City Area Code	585
Local Phone Number	359-5900
Title of 12(b) Security	Common Stock, par value $0.001
Trading Symbol	VUZI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		65,965,431
Entity Central Index Key	0001463972
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash and Cash Equivalents	$ 9,881,216	$ 26,555,592
Accounts Receivable, net of allowance for credit losses of $1,864,000 at June 30, 2024 and $1,574,000 at December 31, 2023.	3,024,196	3,827,686
Accrued Revenues in Excess of Billings	290,096	165,771
Utility Improvement Refund		208,271
Inventories, Net	10,238,163	9,000,430
Manufacturing Vendor Prepayments	329,866	403,801
Prepaid Expenses and Other Assets	897,537	1,338,860
Total Current Assets	24,661,074	41,500,411
Long-Term Assets
Fixed Assets, Net	8,188,863	8,072,830
Operating Lease Right-of-Use Asset	747,003	301,185
Patents and Trademarks, Net	2,848,084	2,627,018
Technology Licenses, Net	861,578	26,851,001
Cost Method Investment in Atomistic		5,784,126
Other Assets, Net	927,778	1,011,111
Total Assets	38,234,380	86,147,681
Current Liabilities
Accounts Payable	899,662	1,570,630
Unearned Revenue	49,831	18,839
Accrued Expenses	1,006,409	2,416,443
Licensing Fees Commitment		1,000,000
Income and Other Taxes Payable	124,363	46,727
Operating Lease Right-of-Use Liability	506,372	163,513
Total Current Liabilities	2,586,637	5,216,152
Long-Term Liabilities
Operating Lease Right-of-Use Liability	240,631	137,672
Total Liabilities	2,827,268	5,353,824
Stockholders' Equity
Common Stock - $0.001 Par Value, 100,000,000 shares authorized; 66,034,769 shares issued and 65,455,097 shares outstanding as of June 30, 2024 and 65,304,780 shares issued and 64,725,108 shares outstanding as of December 31, 2023.	66,034	65,304
Additional Paid-in Capital	382,462,147	377,189,847
Accumulated Deficit	(344,644,568)	(293,984,793)
Treasury Stock, at cost, 579,672 shares as of June 30, 2024 and December 31, 2023.	(2,476,501)	(2,476,501)
Total Stockholders' Equity	35,407,112	80,793,857
Total Liabilities and Stockholders' Equity	$ 38,234,380	$ 86,147,681

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable	$ 1,864,000	$ 1,574,000
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	66,034,769	65,304,780
Common Stock, Shares Outstanding	65,455,097	64,725,108
Common shares held in treasury	579,672	579,672

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Treasury Stock	Total
Balance at Dec. 31, 2022	$ 63,783	$ 362,507,715	$ (243,835,716)	$ (2,005,744)	$ 116,730,038
Balance (in shares) at Dec. 31, 2022	63,783,779			(464,672)
Stock-Based Compensation Expense	$ 97	6,550,382			6,550,479
Stock-Based Compensation Expense (in shares)	96,525
Stock Option Exercises	$ 19	14,528			14,547
Stock Option Exercises (in shares)	18,585
Purchases of Treasury Stock				$ (470,757)	$ (470,757)
Purchases of treasury stock (in shares)				(115,000)	115,000
Net Loss			(19,285,503)		$ (19,285,503)
Balance at Jun. 30, 2023	$ 63,899	369,072,625	(263,121,219)	$ (2,476,501)	103,538,804
Balance (in shares) at Jun. 30, 2023	63,898,889			(579,672)
Balance at Dec. 31, 2022	$ 63,783	362,507,715	(243,835,716)	$ (2,005,744)	116,730,038
Balance (in shares) at Dec. 31, 2022	63,783,779			(464,672)
Net Loss					(50,149,077)
Balance at Dec. 31, 2023	$ 65,304	377,189,847	(293,984,793)	$ (2,476,501)	80,793,857
Balance (in shares) at Dec. 31, 2023	65,304,780			(579,672)
Balance at Mar. 31, 2023	$ 63,787	365,868,487	(254,076,299)	$ (2,476,501)	109,379,474
Balance (in shares) at Mar. 31, 2023	63,787,858			(579,672)
Stock-Based Compensation Expense	$ 97	3,189,606			3,189,703
Stock-Based Compensation Expense (in shares)	96,525
Stock Option Exercises	$ 15	14,532			14,547
Stock Option Exercises (in shares)	14,506
Net Loss			(9,044,920)		(9,044,920)
Balance at Jun. 30, 2023	$ 63,899	369,072,625	(263,121,219)	$ (2,476,501)	103,538,804
Balance (in shares) at Jun. 30, 2023	63,898,889			(579,672)
Balance at Dec. 31, 2023	$ 65,304	377,189,847	(293,984,793)	$ (2,476,501)	80,793,857
Balance (in shares) at Dec. 31, 2023	65,304,780			(579,672)
Stock-Based Compensation Expense	$ 729	5,272,299			5,273,028
Stock-Based Compensation Expense (in shares)	729,005
Stock Option Exercises	$ 1	1			2
Stock Option Exercises (in shares)	984
Net Loss			(50,659,775)		(50,659,775)
Balance at Jun. 30, 2024	$ 66,034	382,462,147	(344,644,568)	$ (2,476,501)	35,407,112
Balance (in shares) at Jun. 30, 2024	66,034,769			(579,672)
Balance at Mar. 31, 2024	$ 65,304	379,582,792	(304,032,375)	$ (2,476,501)	73,139,220
Balance (in shares) at Mar. 31, 2024	65,304,780			(579,672)
Stock-Based Compensation Expense	$ 729	2,879,354			2,880,083
Stock-Based Compensation Expense (in shares)	729,005
Stock Option Exercises	$ 1	1			2
Stock Option Exercises (in shares)	984
Net Loss			(40,612,193)		(40,612,193)
Balance at Jun. 30, 2024	$ 66,034	$ 382,462,147	$ (344,644,568)	$ (2,476,501)	$ 35,407,112
Balance (in shares) at Jun. 30, 2024	66,034,769			(579,672)

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Sales:
Total Sales	$ 1,092,571	$ 4,690,835	$ 3,096,438	$ 8,882,196
Cost of Sales:
Cost of Sales - Depreciation and Amortization	182,049	257,939	363,615	490,855
Total Cost of Sales	1,425,716	3,718,449	3,482,836	7,033,804
Gross Profit (Loss)	(333,145)	972,386	(386,398)	1,848,392
Operating Expenses:
Research and Development	2,358,726	2,836,552	5,073,115	5,906,349
Selling and Marketing	2,238,221	2,509,922	4,479,165	5,049,581
General and Administrative	4,492,168	4,260,322	8,594,322	9,392,146
Depreciation and Amortization	1,188,339	973,222	2,158,716	1,937,487
Loss on Fixed Asset Disposal			11,277
Impairment on Intangible Asset and Equity Investment	30,119,679		30,119,679
Impairment of Patents and Trademarks				17,666
Total Operating Expenses	40,397,133	10,580,018	50,436,274	22,303,229
Loss From Operations	(40,730,278)	(9,607,632)	(50,822,672)	(20,454,837)
Other Income (Expense):
Investment Income	205,824	628,923	358,423	1,324,706
Income and Other Taxes	(17,559)	(35,420)	(17,841)	(123,215)
Foreign Exchange Loss	(70,180)	(30,791)	(177,685)	(32,157)
Total Other Income, Net	118,085	562,712	162,897	1,169,334
Loss Before Provision for Income Taxes	(40,612,193)	(9,044,920)	(50,659,775)	(19,285,503)
Net Loss	$ (40,612,193)	$ (9,044,920)	$ (50,659,775)	$ (19,285,503)
Basic Loss per Common Share	$ (0.62)	$ (0.14)	$ (0.77)	$ (0.31)
Diluted Loss per Common Share	$ (0.62)	$ (0.14)	$ (0.77)	$ (0.31)
Weighted-average Shares Outstanding - Basic	65,814,475	63,230,859	65,559,627	63,223,768
Weighted-average Shares Outstanding - Diluted	65,814,475	63,230,859	65,559,627	63,223,768
Sales of Products
Sales:
Total Sales	$ 601,263	$ 4,425,162	$ 2,430,336	$ 8,616,523
Cost of Sales:
Cost of Sales	1,067,452	3,303,979	2,875,044	6,386,418
Sales of Engineering Services
Sales:
Total Sales	491,308	265,673	666,102	265,673
Cost of Sales:
Cost of Sales	$ 176,215	$ 156,531	$ 244,177	$ 156,531

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Cash Flows From (Used In) Operating Activities
Net Loss		$ (50,659,775)	$ (19,285,503)
Non-Cash Adjustments
Depreciation and Amortization		2,622,866	2,428,342
Stock-Based Compensation		5,273,028	6,500,261
Impairment of Patents and Trademarks			17,666
Loss on Fixed Asset Disposal		11,277
Reserve on Trade Accounts Receivable		290,000
Change in Inventory Reserve for Obsolescence			480,258
Impairment on Intangible Asset and Equity Investment	$ 30,119,679	30,119,679
(Increase) Decrease in Operating Assets
Accounts Receivable		513,490	(2,986,637)
Accrued Revenues in Excess of Billings		(124,325)	(40,633)
Utility Improvement Refund/Employee Retention Credit Receivable		208,271	466,705
Inventories		(1,237,733)	(82,454)
Manufacturing Vendor Prepayments		73,936	645,272
Prepaid Expenses and Other Assets		441,323	1,692
Increase (Decrease) in Operating Liabilities
Accounts Payable		(670,968)	408,743
Accrued Expenses		(1,410,034)	(641,362)
Unearned Revenue		30,992	77,980
Income and Other Taxes Payable		77,638	(76,037)
Net Cash Flows Used in Operating Activities		(14,440,335)	(12,085,707)	$ (26,277,824)	$ (24,521,082)
Cash Flows Used in Investing Activities
Purchases of Fixed Assets		(929,635)	(2,774,513)
Investments in Patents and Trademarks		(304,406)	(340,507)
Investments in Licenses		(1,000,000)	(8,000,000)
Investments in Software Development			(125,000)
Investments in Other Assets			(200,000)
Net Cash Flows Used in Investing Activities		(2,234,041)	(11,440,020)	(19,280,966)	(21,170,816)
Cash Flows Provided by (Used in) Financing Activities
Proceeds from Exercise of Stock Options			14,546
Purchases of Treasury Stock			(470,757)
Net Cash Flows Provided by (Used in) Financing Activities			(456,211)
Net Increase (Decrease) in Cash and Cash Equivalents		(16,674,376)	(23,981,938)
Cash and Cash Equivalents - Beginning of Period		26,555,592	72,563,943	72,563,943
Cash and Cash Equivalents - End of Period	$ 9,881,216	9,881,216	48,582,005	$ 26,555,592	$ 72,563,943
Supplemental Disclosures
Depreciation and Amortization included in Research and Development Expense		$ 100,535
Stock-Based Compensation Expense - Expensed less Previously Issued			$ (50,218)

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2024
Basis of Presentation
Basis of Presentation	Note 1 – Basis of Presentation The 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 and six months ended June 30, 2024, 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, 2023, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on April 15, 2024. Customer Concentrations For the three months ended June 30, 2024, four customers represented 60% of total product revenue and one customer represented 86% of engineering services revenue. For the three months ended June 30, 2023, one customer represented 75% of total product revenue. For the six months ended June 30, 2024, three customers represented 37% of total product revenue and one customer represented 82% of engineering services revenue. For the six months ended June 30, 2023, two customers represented 75% of total product revenue. As of June 30, 2024, three customers represented 93% of accounts receivable. As of December 31, 2023, two customers represented 73% 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 necessary should we be unable to continue as a going concern. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014- 15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. As a result, management is primarily responsible for assessing if there is a going concern issue when issuing an entity’s financial statements. The going concern assumption underlies all GAAP financial reporting and therefore requires and assumes that the financial statements have been prepared on a going concern basis. It presumes that a Company will continue normal business operations into the future. Additional disclosure is required when there is substantial doubt about business continuity or substantial doubt that has not been alleviated by management’s mitigation plans. As required under applicable accounting standards, management has concluded that substantial doubt may exist surrounding the Company's ability to meet its obligations within one year of the release of the financial statements. The Company incurred net losses for the six months ended June 30, 2024 of $50,659,775; $50,149,077 for the year ended December 31, 2023; and $40,763,573 for the year ended December 31, 2022. The Company had net cash outflows from operations of $14,440,335 for the six months ended June 30, 2024; $26,277,824 for the year ended December 31, 2023; and $24,521,082 for the year ended December 31, 2022. As of June 30, 2024, the Company had an accumulated deficit of $344,644,568. The Company’s cash outflows for investing activities were $2,234,041 for the six months ended June 30, 2024; $19,280,966 for the year ended December 31, 2023; and $21,170,816 for the year ended December 31, 2022. These factors initially raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate the conditions that raise substantial doubt include the implementation of operational improvements and the curtailment of certain development programs, both of which the Company expects will preserve cash. The Company’s cash requirements going forward are primarily for funding operating losses, research and development, working capital and capital expenditures. The higher cash outflows for investments in the years ending December 31, 2023 and 2022 were mainly for the Company’s exclusive technology license and equity investment in microLED technology via Atomistic (see Notes 6 and 7). The Company paid $32,500,000 to Atomistic in the last two fiscal years. The Company’s license was terminated on July 1, 2024. As a result, the Company will not be paying further licensing development fees to Atomistic. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily through the sale of equity securities. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to cut its operating costs significantly or raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● Reductions in our cash annual operating expenses by approximately $8,000,000 for 2024 across all operating areas, representing a reduction of at least 20% as compared to 2023 levels, including the areas of Research and Development, Sales and Marketing and General and Administrative; ● Implementation of a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $2,100,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200% , respectively, of the net cash wage reductions; ● After the impact of payroll reduction program for equity and two major rounds of staff reductions, including another round at the end of June 2024, the Company’s current weekly gross cash salary costs are now approximately $162,000 versus $263,000 at the beginning of 2024, a decrease of $101,000 per week or 38.4% (or a total of $5,252,000 on an annual basis); ● Right-sizing of operations across all areas of the Company, including head-count hiring freezes or head-count reductions; ● Further reductions in the rate of research and development spending on new technologies, particularly the use of external contractors; ● Delaying or curtailing discretionary and non-essential capital expenditures not related to near-term product and manufacturing needs and reducing other investing activities for our 2024 fiscal year as compared to 2023 and 2022, now that our waveguide manufacturing plant expansion has substantially been completed and the license fees payments under the Atomistic License have been completed; ● The expected margin contribution upon the commencement of volume manufacturing and sales of waveguides from our new waveguide manufacturing plant, particularly to OEM customers; ● Continued pursuit of licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ● Reduction in the rate of new product introductions and further leveraging of existing platforms to reduce new product development and engineering costs; and ● Reduction in our existing products selling prices and higher volume discount levels to turn as much of our inventory of finished products into cash and pursue external manufacturers for Vuzix non-waveguide production needs . The Company has historically sold equity securities and currently has a new Registration Statement on Form S-3 that became effective in May 2024, which includes a sales agreement with an investment banking firm for the issuance and sale of up to $50,000,000 of our common stock that may be issued and sold from time to time in an “at the market” offering. Management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to pursue additional equity financings, further curtail expenses, or enter into one or more strategic transactions. However, management can make no assurance that the Company will be able to successfully complete any of the forementioned pursuits on terms acceptable to the Company, or at all. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical ability to manage its cash flows and to obtain capital will continue into the foreseeable future. However, as a result of this uncertainty, doubt about the Company continuing as a going concern has not been fully alleviated to the satisfaction of its external auditors as noted in their audit report included with to the Company’s 10-K filed with the SEC on April 15, 2024. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. At each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE, Atomistic, in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 6 and 7. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE are not included in our consolidated financial statements. We had accounted for this investment as a technology license and an equity investment. The maximum exposure of this unconsolidated VIE is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE was our capital investment in them. The carrying value and maximum exposure however, as of June 30, 2024, the carrying value of these investments of $30.1 million was written-off due to the termination of the Company’s exclusive license. Refer to Notes 6 and 7 for further details. Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.
Going Concern	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 necessary should we be unable to continue as a going concern. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014- 15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. As a result, management is primarily responsible for assessing if there is a going concern issue when issuing an entity’s financial statements. The going concern assumption underlies all GAAP financial reporting and therefore requires and assumes that the financial statements have been prepared on a going concern basis. It presumes that a Company will continue normal business operations into the future. Additional disclosure is required when there is substantial doubt about business continuity or substantial doubt that has not been alleviated by management’s mitigation plans. As required under applicable accounting standards, management has concluded that substantial doubt may exist surrounding the Company's ability to meet its obligations within one year of the release of the financial statements. The Company incurred net losses for the six months ended June 30, 2024 of $50,659,775; $50,149,077 for the year ended December 31, 2023; and $40,763,573 for the year ended December 31, 2022. The Company had net cash outflows from operations of $14,440,335 for the six months ended June 30, 2024; $26,277,824 for the year ended December 31, 2023; and $24,521,082 for the year ended December 31, 2022. As of June 30, 2024, the Company had an accumulated deficit of $344,644,568. The Company’s cash outflows for investing activities were $2,234,041 for the six months ended June 30, 2024; $19,280,966 for the year ended December 31, 2023; and $21,170,816 for the year ended December 31, 2022. These factors initially raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate the conditions that raise substantial doubt include the implementation of operational improvements and the curtailment of certain development programs, both of which the Company expects will preserve cash. The Company’s cash requirements going forward are primarily for funding operating losses, research and development, working capital and capital expenditures. The higher cash outflows for investments in the years ending December 31, 2023 and 2022 were mainly for the Company’s exclusive technology license and equity investment in microLED technology via Atomistic (see Notes 6 and 7). The Company paid $32,500,000 to Atomistic in the last two fiscal years. The Company’s license was terminated on July 1, 2024. As a result, the Company will not be paying further licensing development fees to Atomistic. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily through the sale of equity securities. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to cut its operating costs significantly or raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● Reductions in our cash annual operating expenses by approximately $8,000,000 for 2024 across all operating areas, representing a reduction of at least 20% as compared to 2023 levels, including the areas of Research and Development, Sales and Marketing and General and Administrative; ● Implementation of a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $2,100,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200% , respectively, of the net cash wage reductions; ● After the impact of payroll reduction program for equity and two major rounds of staff reductions, including another round at the end of June 2024, the Company’s current weekly gross cash salary costs are now approximately $162,000 versus $263,000 at the beginning of 2024, a decrease of $101,000 per week or 38.4% (or a total of $5,252,000 on an annual basis); ● Right-sizing of operations across all areas of the Company, including head-count hiring freezes or head-count reductions; ● Further reductions in the rate of research and development spending on new technologies, particularly the use of external contractors; ● Delaying or curtailing discretionary and non-essential capital expenditures not related to near-term product and manufacturing needs and reducing other investing activities for our 2024 fiscal year as compared to 2023 and 2022, now that our waveguide manufacturing plant expansion has substantially been completed and the license fees payments under the Atomistic License have been completed; ● The expected margin contribution upon the commencement of volume manufacturing and sales of waveguides from our new waveguide manufacturing plant, particularly to OEM customers; ● Continued pursuit of licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ● Reduction in the rate of new product introductions and further leveraging of existing platforms to reduce new product development and engineering costs; and ● Reduction in our existing products selling prices and higher volume discount levels to turn as much of our inventory of finished products into cash and pursue external manufacturers for Vuzix non-waveguide production needs . The Company has historically sold equity securities and currently has a new Registration Statement on Form S-3 that became effective in May 2024, which includes a sales agreement with an investment banking firm for the issuance and sale of up to $50,000,000 of our common stock that may be issued and sold from time to time in an “at the market” offering. Management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to pursue additional equity financings, further curtail expenses, or enter into one or more strategic transactions. However, management can make no assurance that the Company will be able to successfully complete any of the forementioned pursuits on terms acceptable to the Company, or at all. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical ability to manage its cash flows and to obtain capital will continue into the foreseeable future. However, as a result of this uncertainty, doubt about the Company continuing as a going concern has not been fully alleviated to the satisfaction of its external auditors as noted in their audit report included with to the Company’s 10-K filed with the SEC on April 15, 2024.

Revenue Recognition and Contrac

Revenue Recognition and Contracts with Customers	6 Months Ended
Revenue Recognition and Contracts with Customers	Jun. 30, 2024
Revenue Recognition and Contracts with Customers
Revenue Recognition and Contracts with Customers	Note 2 – Revenue Recognition and Contracts with Customers Disaggregated Revenue The Company’s total revenue was comprised of two major product lines: Smart Glasses Sales and Engineering Services. The following table summarizes the revenue recognized by major product line: Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues Products Sales $ 601,263 $ 4,425,162 $ 2,430,336 $ 8,616,523 Engineering Services 491,308 265,673 666,102 265,673 Total Revenue $ 1,092,571 $ 4,690,835 $ 3,096,438 $ 8,882,196 Significant Judgments Under Topic 606 “Revenue from Contracts with Customers”, we use judgments that could potentially impact both the timing of our satisfaction of performance obligations and our determination of transaction prices used in determining revenue recognized by major product line. Such judgments include considerations in determining our transaction prices and when our performance obligations are satisfied for our standard product sales. For our Engineering Services, performance obligations are recognized over time using the input method, and the estimated costs to complete each project are considered significant judgments. Performance Obligations Revenues from our performance obligations are typically satisfied at a point-in-time for Smart Glasses, Waveguides and Display Engines, and our OEM Products, which are recognized when the customer obtains control and ownership, which is generally upon shipment. The Company considers shipping and handling activities performed to be fulfillment activities and not a separate performance obligation. The Company also records revenue for performance obligations relating to our Engineering Services over time by using the input method measuring progress toward satisfying the performance obligations. Satisfaction of our performance obligations related to our Engineering Services is measured by the Company’s costs incurred as a percentage of total expected costs to project completion, as the inputs of actual costs incurred by the Company are directly correlated with progress toward completing the contract. As such, the Company believes that our methodologies for recognizing revenue over time for our Engineering Services correlate directly with the transfer of control of the underlying assets to our customers. Our standard product sales include a twelve 12 eighteen 18 twelve 12 twelve 12 revenue related to extended product warranty sales is deferred and recognized over the extended warranty period. Our Engineering Services contracts vary from contract to contract but typically include payment terms of Net 30 days from the date of billing, subject to an agreed upon customer acceptance period. As of June 30, 2024 and 2023, there were no outstanding performance obligations remaining for extended warranties. The following table presents a summary of the Company’s sales by revenue recognition method as a percentage of total net sales for the three and six months ended June 30, 2024 and 2023: Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Point-in-Time 55 % 94 % 78 % 97 % Over Time – Input Method 45 % 6 % 22 % 3 % Total 100 % 100 % 100 % 100 % Remaining Performance Obligations As June 30, 2024, the Company had $2,359,904 of remaining performance obligations under a current waveguide development project, including initial product production, which represents the remainder of transaction prices totaling $3,500,000 under this development project, which commenced in 2023, less revenue recognized under percentage of completion to date. The Company expects to recognize the remaining revenue related to this project based upon expected due dates, in the amounts of 18% in 2024 2025 As of June 30, 2023, the Company had approximately $80,000 of remaining performance obligations under a current waveguide development project, which amount represents the remainder of the total transaction price of approximately $800,000 under this development project, less revenue recognized under percentage of completion to date. The Company did recognize the remaining revenue related to this project in the third quarter of 2023. As of June 30, 2024, the Company had no material outstanding performance obligations related to product sales, other than its standard product warranty.

Loss Per Share

Loss Per Share	6 Months Ended
Loss Per Share	Jun. 30, 2024
Loss Per Share
Loss Per Share	Note 3 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are anti-dilutive. Since the Company reported a net loss for the three and six months ended June 30, 2024 and 2023, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. As of June 30, 2024 and 2023, there were 10,744,477 and 8,658,642 common stock share equivalents, for the three months then ended, respectively, potentially issuable from the exercise of stock options that could dilute basic earnings per share in the future.

Inventories, Net

Inventories, Net	6 Months Ended
Inventories, Net	Jun. 30, 2024
Inventories, Net
Inventories, Net	Note 4 – Inventories, Net Inventories are stated at the lower of cost and net realizable value, and consisted of the following: June 30, December 31, 2024 2023 Purchased Parts and Components $ 10,876,973 $ 9,500,415 Work-in-Process 291,432 394,923 Finished Goods 5,044,284 4,880,643 Less: Reserve for Obsolescence (5,974,526) (5,775,551) Inventories, Net $ 10,238,163 $ 9,000,430

Fixed Assets

Fixed Assets	6 Months Ended
Fixed Assets	Jun. 30, 2024
Fixed Assets
Fixed Assets	Note 5 – Fixed Assets Fixed Assets consisted of the following: June 30, December 31, 2024 2023 Tooling and Manufacturing Equipment $ 9,585,842 $ 8,793,192 Leaseholds 2,839,164 3,162,695 Computers and Purchased Software 679,138 833,794 Furniture and Equipment 2,431,846 2,580,904 15,535,990 15,370,585 Less: Accumulated Depreciation (7,347,127) (7,297,755) Fixed Assets, Net $ 8,188,863 $ 8,072,830 December 31, 2023 asset groupings have been reclassified to conform with June 30, 2024 presentation. As of June 30, 2024 and December 31, there was $965,000 and $588,000, respectively of fixed assets that are not yet placed into service. Total depreciation expense for fixed assets for the three months ended June 30, 2024 and 2023 was $231,222 and $111,934, respectively. Total depreciation expense for fixed assets for the six months ended June 30, 2024 and 2023 was $522,042 and $214,385, respectively.

Technology Licenses, Net

Technology Licenses, Net	6 Months Ended
Technology Licenses, Net	Jun. 30, 2024
Technology Licenses, Net
Technology Licenses, Net	Note 6 – Technology Licenses, Net The changes in the Company’s Technology Licenses for the six months ended June 30, 2024, were as follows: June 30, December 31, 2024 2023 Licenses $ 32,443,356 $ 32,443,356 Write Offs (30,000,000) — Less: Accumulated Amortization (1,581,778) (5,592,355) Licenses, Net $ 861,578 $ 26,851,001 Total amortization expense related to technology licenses for the three months ended June 30, 2024 and 2023 was $835,542 and $826,984, respectively. Total amortization expense related to technology licenses for the six months ended June 30, 2024 and 2023 was $1,653,876 and $1,653,868, respectively. The estimated aggregate annual amortization expense for each of the next The Company made the decision to cease further funding of development activities with Atomistic SAS (“Atomistic”) under the license agreement, dated December 16, 2022, among the Company, Atomistic, and Atomistic’s two principals (the “License Agreement”). The Company’s decision gave Atomistic the right under the License Agreement to terminate the Granted License (as defined under the License Agreement), which right Atomistic exercised on July 1, 2024. As a result of the termination of the granted license, on July 1, 2024, which was effective June 30, 2024, the Company determined that the technology license asset of $24,335,554, net book value as of June 30, 2024, had been impaired as the Company no longer held exclusive licensing rights to the technology for its use. Notwithstanding the termination of the Granted License, the Company will be entitled to certain License Royalties (as defined under the License Agreement) from Atomistic if it licenses the technology that was the subject of the granted license.

Investment in Atomistic

Investment in Atomistic	6 Months Ended
Investment in Atomistic	Jun. 30, 2024
Investment in Atomistic
Investment in Atomistic	Note 7 – Investment in Atomistic In addition to the write-off of the Atomistic technology license discussed in Note 6, based upon the fact that Atomistic has lost future funding from the Company and most likely will not have adequate funds on its own to complete the project without raising additional funding from other third parties, the Company also determined the equity investment has been impaired and the Company recorded a charge of $5,664,446 for the period ended June 30, 2024. The Company will retain an equity interest in Atomistic, the right to appoint a member to the Atomistic board of directors and certain other rights as an equity owner pursuant to the stock purchase agreement and shareholders’ agreement entered into in connection with the License Agreement. The Company’s equity interest in Atomistic entitles it to a preferential allocation to 49% of the distributable amounts in the event of a liquidation event, such as an acquisition of Atomistic or its assets. Future royalties of the license and the 49% liquidation preferred allocation value, if any, are considered gain contingencies and will not be recorded until any specific events materialize. At this specific point in time, the Company is unable to reasonably estimate a value to all those contingencies and therefore recorded a full impairment against the license and the investment in Atomistic preferred shares due to such uncertainty of potential outcomes.

Other Assets

Other Assets	6 Months Ended
Other Assets	Jun. 30, 2024
Other Assets
Other Assets	Note 8 - Other Assets The Company’s Other Assets, were as follows: June 30, December 31, 2024 2023 Private Corporation Investments $ 650,000 $ 450,000 Additions — 200,000 Total Private Corporation Investments (at cost) 650,000 650,000 Software Development Costs 1,000,000 875,000 Additions — 125,000 Less: Accumulated Amortization (722,222) (638,889) Software Development Costs, Net 277,778 361,111 Total Other Assets $ 927,778 $ 1,011,111 During the year ended December 31, 2021, the Company acquired, for a purchase price of $200,000, an ownership interest of 3%, in the form of preferred stock, in a private corporation developing smart glasses software for use by retailers in the stockkeeping of inventory, amongst other uses. In the year ended December 31, 2023, the Company purchased an additional $100,000 of preferred stock in this corporation to retain a 2% ownership interest. In June 2023, the Company purchased $100,000 of preferred stock, along with warrants, in a UK-based public company developing new semiconductor materials for displays. The investment represents less than a 1% ownership interest. Total amortization expense related to all software updates, included in cost of sales, for the three months ended June 30, 2024, and 2023 were $41,668 and $83,333, respectively. Total amortization expense related to all software updates, included in cost of sales, for the six months ended June 30, 2024, and 2023 were $83,333 and $138,889, respectively.

Accrued Expenses

Accrued Expenses	6 Months Ended
Accrued Expenses	Jun. 30, 2024
Accrued Expenses
Accrued Expenses	Note 9 – Accrued Expenses Accrued expenses consisted of the following: June 30, December 31, 2024 2023 Accrued Wages and Related Costs $ 723,432 $ 1,711,707 Accrued Professional Services 151,650 362,100 Accrued Warranty Obligations 131,327 188,249 Other Accrued Expenses — 154,387 Total $ 1,006,409 $ 2,416,443 Included in Accrued Wages and Related Costs was $410,251 in severance costs for staff reductions that took place at the end of June 2024 as part of the Company’s cost reduction initiative, which was approved in June 2024 and made effective July 1, 2024. The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally twelve 12 twelve 12 The changes in the Company’s accrued warranty obligations for the six months ended June 30, 2024, were as follows: Accrued Warranty Obligations at December 31, 2023 $ 188,249 Reductions for Settling Warranties (129,832) Warranties Issued During Period 72,910 Accrued Warranty Obligations at June 30, 2024 $ 131,327

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2024
Income Taxes
Income Taxes	Note 10 – Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets.

Capital Stock

Capital Stock	6 Months Ended
Capital Stock	Jun. 30, 2024
Capital Stock
Capital Stock	Note 11 – Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine their voting powers and other rights and terms. The Company has 5,000,000 authorized shares of preferred stock with a par value of $0.001 as of June 30, 2024, and December 31, 2023. Of this total, 49,626 shares are designated as Series A Preferred Stock. There were nil shares of Series A Preferred Stock issued and outstanding on June 30, 2024, and December 31, 2023. Common Stock The Company’s authorized common stock consists of 100,000,000 shares, par value of $0.001. There were 66,034,769 shares issued and 65,455,097 shares outstanding as of June 30, 2024 and 65,304,780 shares issued and 64,725,108 shares outstanding as of December 31, 2023. On May 6, 2024, the Company implemented a voluntary Company-wide payroll reduction program for all employees, directors and contractors with optional salary or compensation reductions of 10% to 50% depending upon the respective base salary or compensation level for the period running from May 1, 2024 to April 30, 2025. The estimated cash savings will be approximately $2,100,000 and resulted in the issuance of stock awards and stock options, at a rate of 150% or 200%, respectively, of the net cash wage reductions. The fair market value of these stock awards and stock option awards has been determined at $1.33 and $0.99, respectively, and a total of 824,711 stock awards and 2,756,116 stock option awards with an exercise price of $1.33 were issued. Both the stock awards and stock option awards cliff vest on April 30, 2025. These awards are subject to vesting and resale rules. In connection with the Atomistic Technology Licenses discussed in Note 6, on November 20, 2023, the Company issued a total of 1,397,500 shares of common stock to the Founders of Atomistic SAS (“Atomistic”) for the achievement of certain technological milestones under a license agreement entered into between the Company, Atomistic and the Founders, along with cash consideration in exchange for equity in Atomistic (see Note 7). Pursuant to the Stock Purchase Agreement with Atomistic and its Founders, the Company will, contingent upon completion of certain deliverables and the achievement of further milestones contained in the Atomistic Agreements, be committed to issue, depending on the Company’s share price at the time of their issuance, a further minimum of approximately 890,000 up to a maximum of 1,446,250 common shares to the Founders of Atomistic (as consideration for certain shares of Atomistic) which would result in Vuzix owning Series A Preferred shares in Atomistic that would be converted into ordinary shares of Atomistic and Vuzix ultimately owning nearly 100% of Atomistic, with Atomistic becoming a subsidiary of the Company. Within five years of the commencement of the Atomistic Agreements, the Company has agreed to issue up to a 15% equity bonus of the previously issued common shares to Atomistic stockholders, if: (i) the Company engages in a change-of-control transaction for an implied equity value of at least $3.5 billion or (ii) the Company’s market valuation exceeds $3.5 billion. This could result in the issuance of an additional 291,346 to 473,438 shares of the Company’s common stock when that valuation target is exceeded. None of these share commitments have been issued to date. Treasury Stock

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
Stock-Based Compensation	Jun. 30, 2024
Stock-Based Compensation
Stock-Based Compensation	Note 12 – Stock-Based Compensation A summary of stock option activity related to the Company’s standard employee incentive plan (excluding options awarded under the Long-Term Incentive Plan (LTIP) – Note 13) for the six months ended June 30, 2024, is as follows: Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2023 2,911,308 $ 7.60 6.30 Granted 2,532,971 1.33 Exercised (10,937) 1.33 Expired or Forfeited (423,365) 7.89 Outstanding at June 30, 2024 5,009,977 $ 4.43 7.84 The weighted average remaining contractual term for all options as of June 30, 2024, and December 31, 2023, was 7.84 As of June 30, 2024, there were 2,072,021 options that were fully vested and exercisable at a weighted average exercise price of $7.24 per share. The weighted average remaining contractual term of the vested options is 5.4 years. As of June 30, 2024, there were 2,937,956 unvested options exercisable at a weighted average exercise price of $2.46 per share. The weighted average remaining contractual term of the unvested options is 9.6 The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. As of June 30, 2024, the Company had $4,836,647 of unrecognized stock compensation expense, which will be recognized over a weighted average period of 1.2 During the three months ended June 30, 2024, the Company issued 232,766 shares of common stock to its independent board members as part of their annual retainer for services covering the period of July 2024 to June 2025 and for onboarding of the new director. The fair market value on the date of award of the stock issued was $1.41, resulting in an aggregate fair value of approximately $328,200. The fair market value of these awards is expensed over twelve (12) months for 212,766 shares and twenty-four (24) months for 20,000 shares beginning on July 1, 2024. On May 6, 2024, the Company implemented a voluntary Company-wide payroll reduction program for all employees, independent board members and contractors with optional salary or compensation reductions of 10% to 50% depending upon the respective base salary or compensation level for the period running from May 1, 2024 to April 30, 2025. The estimated cash savings will be approximately $2,100,000 and resulted in the issuance of stock awards and stock options, at a rate of 150% or 200%, respectively, of the net cash wage reductions. The fair market value of these stock awards and stock option awards has been determined at $1.33 and $0.99, respectively, and a total of 824,711 stock awards and 2,756,116 stock option awards were issued. The total fair market value of the stock awards is $1,096,865 and the stock option awards is $2,728,555. The fair market value of these awards is being expensed over twelve 12 For the three months ended June 30, 2024, and 2023, the Company recorded total stock-based compensation expense, including stock awards but excluding stock option awards under the Company’s LTIP, of $1,470,793 and $1,083,064, respectively. For the six months ended June 30, 2024 and 2023, the Company recorded total stock-based compensation expense, including stock awards but excluding stock option awards under the Company’s LTIP, of $2,454,444 and $2,212,630, respectively.

Long-Term Incentive Plan

Long-Term Incentive Plan	6 Months Ended
Long-Term Incentive Plan	Jun. 30, 2024
Long-Term Incentive Plan
Long-Term Incentive Plan	Note 13 – Long-Term Incentive Plan On March 17, 2021, the Company granted options to purchase a total of 5,784,000 shares of common stock to its officers and certain other members of its management team. The options were granted under the Company’s existing 2014 Incentive Stock Plan. The options have an exercise price of $19.00, with 375,000 options vesting immediately and the remaining portion vesting upon the achievement of certain equity market capitalization milestones, and revenue and EBITDA operational milestones. For the three months ended June 30, 2024, and 2023, the Company recorded non-cash stock-based compensation expense of $1,409,294 and $1,749,687, respectively, for options that vested or are probable to vest. For the six months ended June 30, 2024, and 2023, the Company recorded non-cash stock-based compensation expense of $2,818,584 and $4,287,631, respectively, for options that vested or are probable to vest. These expenses are presented in the same financial statement line items in the Statements of Operations as the cash-based compensation expenses for the same employees. The fair value of option grants was calculated using a Monte Carlo simulation for the equity market capitalization tranches and the Black-Scholes-Merton option pricing method for the operational milestone tranches. As of June 30, 2024, we had $5,974,737 of total unrecognized stock-based compensation expense for the portion of options tied to equity market capitalization milestones and the portion of options tied to operational milestones that were considered probable of achievement, all of which are being recognized over a service period of up to three The unvested remaining equity market and operational milestones under the LTIP with their total related option grants and criteria achievement weightings of the options available for meeting a target are shown in the following table. Of the total 5,359,500 unvested options outstanding as of June 30, 2024, there are 2,679,750 unvested options for the achievement of Equity Market Capitalization targets, 1,875,825 unvested options for the achievement of annual revenue targets, and 803,925 unvested options for the achievement of annual EBITDA Margins Before Non-Cash Charges targets. Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA Target 680,500 $ 2,000,000,000 $ 25,000,000 0.0% 680,500 3,000,000,000 50,000,000 2.0% 680,500 4,000,000,000 100,000,000 4.0% 680,500 5,000,000,000 200,000,000 6.0% 580,500 6,000,000,000 300,000,000 8.0% 580,500 7,000,000,000 450,000,000 10.0% 555,500 8,000,000,000 675,000,000 12.0% 485,500 9,000,000,000 1,000,000,000 14.0% 435,500 10,000,000,000 1,500,000,000 16.0% 5,359,500

Litigation

Litigation	6 Months Ended
Litigation	Jun. 30, 2024
Litigation
Litigation	Note 14 – Litigation We are not currently involved in any actual or pending legal proceedings or litigation we consider to be material, and we are not aware of any such material proceedings contemplated by or against us or involving our property.

Right-of-Use Assets and Liabili

Right-of-Use Assets and Liabilities	6 Months Ended
Right-of-Use Assets and Liabilities	Jun. 30, 2024
Right-of-Use Assets and Liabilities
Right-of-Use Assets and Liabilities	Note 15 – Right-of-Use Assets and Liabilities Future lease payments under operating leases as of June 30, 2024, were as follows: 2024 $ 279,262 2025 511,980 Total Future Lease Payments 791,242 Less: Imputed Interest (44,239) Total Lease Liability Balance $ 747,003 The Company has signed lease agreements, with the largest being for its office and manufacturing facility in the West Henrietta, New York area under an operating lease that commenced October 3, 2015. On January 16, 2024, the Company exercised the second renewal extending the current lease term to November 30, 2025. As a result, the Company recorded an additional Right-of-Use asset and Right-of-Use liability Operating lease costs under the operating leases totaled $184,143 and $207,352 for the three months ended June 30, 2024, and 2023, respectively. Operating lease costs under the operating leases totaled $375,648 and $410,691 for the six months ended June 30, 2024, and 2023, respectively. As of June 30, 2024, the weighted average discount rate was 8.3% and the weighted average remaining lease term was 1.4 years.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2024
Subsequent Events
Subsequent Events	Note 16 – Subsequent Events In connection with the Atomistic Agreements, on August 12, 2024, the Company issued a total of 174,688 shares of common stock at a fair market value of $1.04 per share (closing price on August 9, 2024) or $181,676 to the Founders of Atomistic SAS (“Atomistic”) for the achievement of certain technological milestones. This issuance will be recorded as an additional impairment charge related to the Atomistic equity investment in the third quarter of 2024.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ (40,612,193)	$ (9,044,920)	$ (50,659,775)	$ (19,285,503)	$ (50,149,077)	$ (40,763,573)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
NonRule 10b5-1 Arrangement Modified	false

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
Basis of Presentation (Policies)	Jun. 30, 2024
Basis of Presentation
Basis of Presentation	The 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 and six months ended June 30, 2024, 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, 2023, as reported in the Company’s Annual Report on Form 10-K filed with the SEC on April 15, 2024.
Customer Concentrations	Customer Concentrations For the three months ended June 30, 2024, four customers represented 60% of total product revenue and one customer represented 86% of engineering services revenue. For the three months ended June 30, 2023, one customer represented 75% of total product revenue. For the six months ended June 30, 2024, three customers represented 37% of total product revenue and one customer represented 82% of engineering services revenue. For the six months ended June 30, 2023, two customers represented 75% of total product revenue. As of June 30, 2024, three customers represented 93% of accounts receivable. As of December 31, 2023, two customers represented 73% of accounts receivable.
Fair Value of Financial Instruments	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	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 necessary should we be unable to continue as a going concern. The Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. (ASU) 2014- 15, Presentation of Financial Statements — Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. As a result, management is primarily responsible for assessing if there is a going concern issue when issuing an entity’s financial statements. The going concern assumption underlies all GAAP financial reporting and therefore requires and assumes that the financial statements have been prepared on a going concern basis. It presumes that a Company will continue normal business operations into the future. Additional disclosure is required when there is substantial doubt about business continuity or substantial doubt that has not been alleviated by management’s mitigation plans. As required under applicable accounting standards, management has concluded that substantial doubt may exist surrounding the Company's ability to meet its obligations within one year of the release of the financial statements. The Company incurred net losses for the six months ended June 30, 2024 of $50,659,775; $50,149,077 for the year ended December 31, 2023; and $40,763,573 for the year ended December 31, 2022. The Company had net cash outflows from operations of $14,440,335 for the six months ended June 30, 2024; $26,277,824 for the year ended December 31, 2023; and $24,521,082 for the year ended December 31, 2022. As of June 30, 2024, the Company had an accumulated deficit of $344,644,568. The Company’s cash outflows for investing activities were $2,234,041 for the six months ended June 30, 2024; $19,280,966 for the year ended December 31, 2023; and $21,170,816 for the year ended December 31, 2022. These factors initially raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to alleviate the conditions that raise substantial doubt include the implementation of operational improvements and the curtailment of certain development programs, both of which the Company expects will preserve cash. The Company’s cash requirements going forward are primarily for funding operating losses, research and development, working capital and capital expenditures. The higher cash outflows for investments in the years ending December 31, 2023 and 2022 were mainly for the Company’s exclusive technology license and equity investment in microLED technology via Atomistic (see Notes 6 and 7). The Company paid $32,500,000 to Atomistic in the last two fiscal years. The Company’s license was terminated on July 1, 2024. As a result, the Company will not be paying further licensing development fees to Atomistic. Our cash requirements related to funding operating losses depend upon numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met its cash needs primarily through the sale of equity securities. The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis or it will be required to cut its operating costs significantly or raise new equity and/or debt capital. Management’s plans concerning these matters and managing our liquidity include, among other things: ● Reductions in our cash annual operating expenses by approximately $8,000,000 for 2024 across all operating areas, representing a reduction of at least 20% as compared to 2023 levels, including the areas of Research and Development, Sales and Marketing and General and Administrative; ● Implementation of a voluntary Company-wide payroll reduction program for all individuals with optional salary reductions of 10% to 50% depending upon the respective base salary level for the period running from May 1, 2024 to April 30, 2025. The expected cash savings will be approximately $2,100,000 and will result in the issuance of stock awards or stock options, at a rate of 150% or 200% , respectively, of the net cash wage reductions; ● After the impact of payroll reduction program for equity and two major rounds of staff reductions, including another round at the end of June 2024, the Company’s current weekly gross cash salary costs are now approximately $162,000 versus $263,000 at the beginning of 2024, a decrease of $101,000 per week or 38.4% (or a total of $5,252,000 on an annual basis); ● Right-sizing of operations across all areas of the Company, including head-count hiring freezes or head-count reductions; ● Further reductions in the rate of research and development spending on new technologies, particularly the use of external contractors; ● Delaying or curtailing discretionary and non-essential capital expenditures not related to near-term product and manufacturing needs and reducing other investing activities for our 2024 fiscal year as compared to 2023 and 2022, now that our waveguide manufacturing plant expansion has substantially been completed and the license fees payments under the Atomistic License have been completed; ● The expected margin contribution upon the commencement of volume manufacturing and sales of waveguides from our new waveguide manufacturing plant, particularly to OEM customers; ● Continued pursuit of licensing and strategic opportunities around our waveguide technologies with potential OEMs, which would include the receipt of upfront licensing fees and on-going supply agreements; ● Reduction in the rate of new product introductions and further leveraging of existing platforms to reduce new product development and engineering costs; and ● Reduction in our existing products selling prices and higher volume discount levels to turn as much of our inventory of finished products into cash and pursue external manufacturers for Vuzix non-waveguide production needs . The Company has historically sold equity securities and currently has a new Registration Statement on Form S-3 that became effective in May 2024, which includes a sales agreement with an investment banking firm for the issuance and sale of up to $50,000,000 of our common stock that may be issued and sold from time to time in an “at the market” offering. Management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to pursue additional equity financings, further curtail expenses, or enter into one or more strategic transactions. However, management can make no assurance that the Company will be able to successfully complete any of the forementioned pursuits on terms acceptable to the Company, or at all. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical ability to manage its cash flows and to obtain capital will continue into the foreseeable future. However, as a result of this uncertainty, doubt about the Company continuing as a going concern has not been fully alleviated to the satisfaction of its external auditors as noted in their audit report included with to the Company’s 10-K filed with the SEC on April 15, 2024.
Use of Estimates	Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year-end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Variable Interest Entities	Variable Interest Entities The Company determines at the inception of each arrangement whether an entity in which it has made an investment or in which the Company has other variable interests is considered a variable interest entity (VIE). The Company consolidates VIEs when it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has the power to direct activities that most significantly affect the economic performance of the VIE and have the obligation to absorb the majority of their losses or benefits. If the Company is not the primary beneficiary in a VIE, the Company accounts for the investment or other variable interests in a VIE in accordance with applicable GAAP. At each reporting period, the Company assesses whether any changes in our interest or relationship with the entity affect our determination of whether the entity is a VIE and, if so, whether the Company is the primary beneficiary. We have an investment in a VIE, Atomistic, in which we are not the primary beneficiary. This VIE includes a private company investment, described further in Notes 6 and 7. We have determined that the governance and operating structures of this entity do not allow us to direct the activities that would significantly affect their economic performance. Therefore, we are not the primary beneficiary, and the results of operations and financial position of this VIE are not included in our consolidated financial statements. We had accounted for this investment as a technology license and an equity investment. The maximum exposure of this unconsolidated VIE is generally based on the current carrying value of the investment. We have determined that the single source of our exposure to this VIE was our capital investment in them. The carrying value and maximum exposure however, as of June 30, 2024, the carrying value of these investments of $30.1 million was written-off due to the termination of the Company’s exclusive license. Refer to Notes 6 and 7 for further details.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topics 740): Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid. ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted. We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

Revenue Recognition and Contr_2

Revenue Recognition and Contracts with Customers (Tables)	6 Months Ended
Revenue Recognition and Contracts with Customers (Tables)	Jun. 30, 2024
Revenue Recognition and Contracts with Customers
Schedule of company's total revenue by major product lines	Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Revenues Products Sales $ 601,263 $ 4,425,162 $ 2,430,336 $ 8,616,523 Engineering Services 491,308 265,673 666,102 265,673 Total Revenue $ 1,092,571 $ 4,690,835 $ 3,096,438 $ 8,882,196
Schedule of company's net sales by revenue recognition method as a percentage of total net sales	Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Point-in-Time 55 % 94 % 78 % 97 % Over Time – Input Method 45 % 6 % 22 % 3 % Total 100 % 100 % 100 % 100 %

Inventories, Net (Tables)

Inventories, Net (Tables)	6 Months Ended
Inventories, Net (Tables)	Jun. 30, 2024
Inventories, Net
Schedule of Inventories	June 30, December 31, 2024 2023 Purchased Parts and Components $ 10,876,973 $ 9,500,415 Work-in-Process 291,432 394,923 Finished Goods 5,044,284 4,880,643 Less: Reserve for Obsolescence (5,974,526) (5,775,551) Inventories, Net $ 10,238,163 $ 9,000,430

Fixed Assets (Tables)

Fixed Assets (Tables)	6 Months Ended
Fixed Assets (Tables)	Jun. 30, 2024
Fixed Assets
Schedule of Fixed Assets	June 30, December 31, 2024 2023 Tooling and Manufacturing Equipment $ 9,585,842 $ 8,793,192 Leaseholds 2,839,164 3,162,695 Computers and Purchased Software 679,138 833,794 Furniture and Equipment 2,431,846 2,580,904 15,535,990 15,370,585 Less: Accumulated Depreciation (7,347,127) (7,297,755) Fixed Assets, Net $ 8,188,863 $ 8,072,830

Technology Licenses, Net (Table

Technology Licenses, Net (Tables)	6 Months Ended
Technology Licenses, Net (Tables)	Jun. 30, 2024
Licenses
Schedule of Finite-Lived Intangible Assets	June 30, December 31, 2024 2023 Licenses $ 32,443,356 $ 32,443,356 Write Offs (30,000,000) — Less: Accumulated Amortization (1,581,778) (5,592,355) Licenses, Net $ 861,578 $ 26,851,001

Other Assets (Tables)

Other Assets (Tables)	6 Months Ended
Other Assets (Tables)	Jun. 30, 2024
Other Assets
Schedule of Company's Other Assets	June 30, December 31, 2024 2023 Private Corporation Investments $ 650,000 $ 450,000 Additions — 200,000 Total Private Corporation Investments (at cost) 650,000 650,000 Software Development Costs 1,000,000 875,000 Additions — 125,000 Less: Accumulated Amortization (722,222) (638,889) Software Development Costs, Net 277,778 361,111 Total Other Assets $ 927,778 $ 1,011,111

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2024
Accrued Expenses
Schedule of Accrued expenses	June 30, December 31, 2024 2023 Accrued Wages and Related Costs $ 723,432 $ 1,711,707 Accrued Professional Services 151,650 362,100 Accrued Warranty Obligations 131,327 188,249 Other Accrued Expenses — 154,387 Total $ 1,006,409 $ 2,416,443
Schedule of changes in accrued warranty obligations	Accrued Warranty Obligations at December 31, 2023 $ 188,249 Reductions for Settling Warranties (129,832) Warranties Issued During Period 72,910 Accrued Warranty Obligations at June 30, 2024 $ 131,327

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
Stock-Based Compensation (Tables)	Jun. 30, 2024
Stock-Based Compensation
Schedule of summary of stock option activity	Weighted Average Number of Average Remaining Life Options Exercise Price (years) Outstanding at December 31, 2023 2,911,308 $ 7.60 6.30 Granted 2,532,971 1.33 Exercised (10,937) 1.33 Expired or Forfeited (423,365) 7.89 Outstanding at June 30, 2024 5,009,977 $ 4.43 7.84

Long-Term Incentive Plan (Table

Long-Term Incentive Plan (Tables)	6 Months Ended
Long-Term Incentive Plan (Tables)	Jun. 30, 2024
Long-Term Incentive Plan
Schedule of equity market and operational milestone under the long term	Award Potential Criteria Achievement Weighting 50% of Options Available 35% of Options Available 15% of Options Available Options Available Equity Market Last Twelve Months Revenue Last Twelve Months EBITDA Target 680,500 $ 2,000,000,000 $ 25,000,000 0.0% 680,500 3,000,000,000 50,000,000 2.0% 680,500 4,000,000,000 100,000,000 4.0% 680,500 5,000,000,000 200,000,000 6.0% 580,500 6,000,000,000 300,000,000 8.0% 580,500 7,000,000,000 450,000,000 10.0% 555,500 8,000,000,000 675,000,000 12.0% 485,500 9,000,000,000 1,000,000,000 14.0% 435,500 10,000,000,000 1,500,000,000 16.0% 5,359,500

Right-of-Use Assets and Liabi_2

Right-of-Use Assets and Liabilities (Tables)	6 Months Ended
Right-of-Use Assets and Liabilities (Tables)	Jun. 30, 2024
Right-of-Use Assets and Liabilities
Schedule of Future lease payments under operating leases	2024 $ 279,262 2025 511,980 Total Future Lease Payments 791,242 Less: Imputed Interest (44,239) Total Lease Liability Balance $ 747,003

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended		6 Months Ended		12 Months Ended
Basis of Presentation (Details)	Jun. 30, 2024 USD ($) customer	Jun. 30, 2023 customer	Jun. 30, 2024 USD ($) customer	Jun. 30, 2023 customer	Dec. 31, 2023 USD ($) customer
Maximum exposure of unconsolidated VIE	$ 31,800,000		$ 31,800,000
Carrying value of unconsolidated VIE	38,234,380		38,234,380		$ 86,147,681
VIE
Carrying value of unconsolidated VIE	$ 31,800,000		31,800,000
Investments related to writeoff			$ 30,100,000
Total revenues \| Sales of Engineering Services
Number of customers \| customer	1		1
Total revenues \| Sales of Products
Number of customers \| customer	4	1	3	2
Accounts Receivable
Number of customers \| customer			3		2
One customer \| Total revenues \| Sales of Engineering Services \| Customer Concentration Risk
Concentration Risk, Percentage	86%		82%
One customer \| Total revenues \| Sales of Products \| Customer Concentration Risk
Concentration Risk, Percentage		75%
Two customers \| Total revenues \| Sales of Products \| Customer Concentration Risk
Concentration Risk, Percentage				75%
Two customers \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk, Percentage					73%
Three customers \| Total revenues \| Sales of Products \| Customer Concentration Risk
Concentration Risk, Percentage			37%
Three customers \| Accounts Receivable \| Customer Concentration Risk
Concentration Risk, Percentage			93%
Four customers \| Total revenues \| Sales of Products \| Customer Concentration Risk
Concentration Risk, Percentage	60%

Basis of Presentation - Going C

Basis of Presentation - Going Concern (Details) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended		12 Months Ended
Basis of Presentation - Going Concern (Details) - USD ($)	May 06, 2024	Jun. 30, 2024	Jan. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Apr. 30, 2025	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2022
Net loss				$ (40,612,193)	$ (9,044,920)	$ (50,659,775)	$ (19,285,503)			$ (50,149,077)	$ (40,763,573)
Net Cash Flows Used in Operating Activities						(14,440,335)	(12,085,707)			(26,277,824)	(24,521,082)
Retained Earnings Accumulated Deficit		$ (344,644,568)		$ (344,644,568)		(344,644,568)				(293,984,793)
Net Cash Flows Used in Investing Activities						$ (2,234,041)	$ (11,440,020)			(19,280,966)	(21,170,816)
Substantial Doubt about Going Concern, within One Year [true false]						true
Expected cash saving due to payroll reduction program	$ 2,100,000
Current weekly gross cash salary costs		$ 162,000	$ 263,000
Decrease in salary expense per week			$ 101,000
Annually decrease in salary expense						$ 5,252,000
Percentage of decrease in salary expense per week			38.40%
Minimum
Percentage of optional salary reductions	10%
Rate of issuance of stock awards or stock options due to salary reduction program	150%
Maximum
Percentage of optional salary reductions	50%
Rate of issuance of stock awards or stock options due to salary reduction program	200%
Forecast
Decrease in cash annual operating expenses									$ 8,000,000
Percentage of decrease in cash annual operating expenses									20%
Expected cash saving due to payroll reduction program								$ 2,100,000
Estimated total common stock value to be issued and sold									$ 50,000,000
Forecast \| Minimum
Percentage of optional salary reductions								10%
Rate of issuance of stock awards or stock options due to salary reduction program								150%
Forecast \| Maximum
Percentage of optional salary reductions								50%
Rate of issuance of stock awards or stock options due to salary reduction program								200%
Atomistic SAS \| Atomistic agreement
Payments for investment to Atomistic										$ 32,500,000	$ 32,500,000

Revenue Recognition and Contr_3

Revenue Recognition and Contracts with Customers - Company's total revenue by major product lines (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) product	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) product	Jun. 30, 2023 USD ($)
Number of major product lines \| product	2		2
Revenue	$ 1,092,571	$ 4,690,835	$ 3,096,438	$ 8,882,196
Products Sales
Revenue	601,263	4,425,162	2,430,336	8,616,523
Engineering Services
Revenue	$ 491,308	$ 265,673	$ 666,102	$ 265,673

Revenue Recognition and Contr_4

Revenue Recognition and Contracts with Customers - Company's net sales as a percentage (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenue performance obligation percentage	100%	100%	100%	100%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Percentage	18%		18%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months		6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Percentage	82%		82%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year		1 year
Point-in-Time
Revenue performance obligation percentage	55%	94%	78%	97%
Over Time - Input Method
Revenue performance obligation percentage	45%	6%	22%	3%

Revenue Recognition and Contr_5

Revenue Recognition and Contracts with Customers - Additional Information (Details) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Standard product warranty term	12 months
Revenue, remaining performance obligations	$ 2,359,904		$ 80,000
Revenue, performance obligation, total transaction price	3,500,000		$ 800,000
Accrued Revenues in Excess of Billings	$ 290,096	$ 165,771
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Extended warranties
Standard product warranty term	12 months
Revenue, remaining performance obligations	$ 0	$ 0
OEM products and waveguide sales
Standard product warranty term	18 months

Loss Per Share - Additional Inf

Loss Per Share - Additional Information (Details) - shares	6 Months Ended
Loss Per Share - Additional Information (Details) - shares	Jun. 30, 2024	Jun. 30, 2023
Loss Per Share
Anti-dilutive shares	10,744,477	8,658,642

Inventories, Net - Components o

Inventories, Net - Components of Inventories (Detail) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Inventories, Net
Purchased Parts and Components	$ 10,876,973	$ 9,500,415
Work-in-Process	291,432	394,923
Finished Goods	5,044,284	4,880,643
Less: Reserve for Obsolescence	(5,974,526)	(5,775,551)
Inventories, Net	$ 10,238,163	$ 9,000,430

Fixed Assets - Schedule of Fixe

Fixed Assets - Schedule of Fixed Assets (Details) - USD ($)	3 Months Ended		6 Months Ended
Fixed Assets - Schedule of Fixed Assets (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment
Fixed Assets, Gross	$ 15,535,990		$ 15,535,990		$ 15,370,585
Less: Accumulated Depreciation	(7,347,127)		(7,347,127)		(7,297,755)
Fixed Assets, Net	8,188,863		8,188,863		8,072,830
Fixed assets not yet placed in service	965,000		965,000		588,000
Depreciation expense	231,222	$ 111,934	522,042	$ 214,385
Tooling and Manufacturing Equipment
Property, Plant and Equipment
Fixed Assets, Gross	9,585,842		9,585,842		8,793,192
Leaseholds
Property, Plant and Equipment
Fixed Assets, Gross	2,839,164		2,839,164		3,162,695
Computers and Purchased Software
Property, Plant and Equipment
Fixed Assets, Gross	679,138		679,138		833,794
Furniture and Equipment
Property, Plant and Equipment
Fixed Assets, Gross	$ 2,431,846		$ 2,431,846		$ 2,580,904

Technology Licenses, Net (Detai

Technology Licenses, Net (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Licenses Net [Line Items]
Licenses, Net	$ 861,578	$ 26,851,001
Licensing agreements
Licenses Net [Line Items]
Licenses	32,443,356	32,443,356
Write Offs	(30,000,000)
Less: Accumulated Amortization	(1,581,778)	(5,592,355)
Licenses, Net	$ 861,578	$ 26,851,001

Technology Licenses, Net - Addi

Technology Licenses, Net - Additional Information (Details) - Licensing agreements - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Licenses Net
Amortization Expense	$ 835,542	$ 826,984	$ 1,653,876	$ 1,653,868
Annual amortization expense (Year1)	201,000		201,000
Annual amortization expense (Year2)	201,000		201,000
Annual amortization expense (Year3)	201,000		201,000
Annual amortization expense (Year4)	201,000		201,000
Annual amortization expense (Year5)	201,000		201,000
Net book value	$ 24,335,554		$ 24,335,554

Investment in Atomistic (Detail

Investment in Atomistic (Details)	6 Months Ended
Investment in Atomistic (Details)	Jun. 30, 2024 USD ($)
Equity Securities without Readily Determinable Fair Value [Line Items]
Impairment charges on investment	$ 5,664,446
Atomistic SAS
Equity Securities without Readily Determinable Fair Value [Line Items]
Preferential Allocation	49%

Other Assets (Details)

Other Assets (Details) - USD ($)	6 Months Ended	12 Months Ended
Other Assets (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Private Corporation Investments	$ 650,000	$ 450,000
Additions		200,000
Total Private Corporation Investments (at cost)	650,000	650,000
Additions	8,188,863	8,072,830
Total Other Assets	927,778	1,011,111
Software Development
Software Development Costs	1,000,000	875,000
Additions		125,000
Less: Accumulated Amortization	(722,222)	(638,889)
Software Development Costs, Net	$ 277,778	$ 361,111

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
Other Assets - Additional Information (Details) - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023	Dec. 31, 2021
Software Development
Other assets
Amortization of Intangible Assets	$ 41,668	$ 83,333	$ 83,333	$ 138,889
Private Corporation
Other assets
Purchase price					$ 100,000	$ 200,000
Ownership interest					2%	3%
UK Based Public Company
Other assets
Purchase price		$ 100,000		$ 100,000
UK Based Public Company \| Maximum
Other assets
Ownership interest		1%		1%

Accrued Expenses - Components o

Accrued Expenses - Components of Accrued Expenses (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accrued Expenses
Accrued Wages and Related Costs	$ 723,432	$ 1,711,707
Accrued Professional Services	151,650	362,100
Accrued Warranty Obligations	131,327	188,249
Other Accrued Expenses		154,387
Total	$ 1,006,409	$ 2,416,443

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Details)	6 Months Ended
Accrued Expenses - Additional Information (Details)	Jun. 30, 2024 USD ($)
Accrued Expenses
Severance costs	$ 410,251
Standard product warranty term	12 months
Extended product warranty term	12 months

Accrued Expenses - Changes in A

Accrued Expenses - Changes in Accrued Warranty Obligations (Details)	6 Months Ended
	Jun. 30, 2024 USD ($)
Accrued Expenses
Accrued Warranty Obligations at December 31, 2023	$ 188,249
Reductions for Settling Warranties	(129,832)
Warranties Issued During Period	72,910
Accrued Warranty Obligations at June 30, 2024	$ 131,327

Capital Stock (Details)

Capital Stock (Details) - USD ($)					6 Months Ended
Capital Stock (Details) - USD ($)	May 06, 2024	Nov. 20, 2023	May 12, 2022	Mar. 02, 2022	Jun. 30, 2023	Jun. 30, 2024	Dec. 31, 2023
Preferred stock, shares authorized						5,000,000	5,000,000
Preferred stock, par value						$ 0.001	$ 0.001
Common stock, shares authorized						100,000,000	100,000,000
Common stock, par value						$ 0.001	$ 0.001
Common stock, shares issued						66,034,769	65,304,780
Common stock, shares outstanding						65,455,097	64,725,108
Expected cash saving due to payroll reduction program	$ 2,100,000
Fair market value of stock awards	$ 1.33
Stock awards issued	824,711
Stock option awards issued	2,756,116
Fair market value of stock option awards	$ 0.99
Aggregate value of shares authorized				$ 25,000,000
Share repurchase program term				1 year
Purchases of treasury stock (in shares)					115,000
Average cost					$ 4.06
Commission cost per share					$ 0.03
Common shares held in treasury						579,672	579,672
Equity bonus (as a percent)			15%
Atomistic SAS
Ownership percent		100%
Atomistic agreement
Stock Issued under Atomistic Stock Purchase Agreement (Shares)		1,397,500
Period for equity bonus			5 years
Threshold market valuation			$ 3,500,000,000
Share commitments issued to date			0
Minimum
Percentage of optional salary reductions	10%
Rate of issuance of stock awards or stock options due to salary reduction program	150%
Minimum \| Atomistic agreement
Issuance of shares, performance milestones (in shares)		890,000
Issuance of shares on exceeding valuation target (in shares)			291,346
Maximum
Percentage of optional salary reductions	50%
Rate of issuance of stock awards or stock options due to salary reduction program	200%
Maximum \| Atomistic agreement
Issuance of shares, performance milestones (in shares)		1,446,250
Issuance of shares on exceeding valuation target (in shares)			473,438
Series A Preferred Stock
Preferred stock, shares authorized						49,626	49,626
Preferred stock, shares issued						0	0
Preferred stock, shares outstanding						0	0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - Employee Stock Option - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Number of Options
Outstanding, Beginning Balance	2,911,308
Granted	2,532,971
Exercised	(10,937)
Expired or Forfeited	(423,365)
Outstanding, Ending Balance	5,009,977	2,911,308
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 7.60
Granted	1.33
Exercised	1.33
Expired or Forfeited	7.89
Outstanding, Ending Balance	$ 4.43	$ 7.60
Weighted Average Remaining Life (Years)
Options outstanding, weighted average remaining life (years)	7 years 10 months 2 days	6 years 3 months 18 days

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	May 06, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Stock-Based Compensation Plans
Exercisable options outstanding shares		2,072,021		2,072,021
Weighted average exercise price per share, Exercisable	$ 1.33	$ 7.24		$ 7.24
Weighted average remaining contractual term on vested options				5 years 4 months 24 days
Unvested options outstanding, shares		2,937,956		2,937,956
Unvested options outstanding, Weighted average exercise price				$ 2.46
Unvested options outstanding weighted average remaining life (years)				9 years 7 months 6 days
Unrecognized stock compensation expense		$ 4,836,647		$ 4,836,647
Weighted average recognition period				1 year 2 months 12 days
Expected cash saving due to payroll reduction program	$ 2,100,000
Fair market value of stock awards	$ 1.33
Fair market value of stock option awards	$ 0.99
Stock awards issued	824,711
Stock option awards issued	2,756,116
Aggregate fair value	$ 1,096,865
Total fair value of options granted during the reporting period.	$ 2,728,555
Period of fair market value of awards granted under the share-based payment	12 months
Share-Based compensation excludes the long term incentive plan expense		$ 1,470,793	$ 1,083,064	$ 2,454,444	$ 2,212,630
Maximum
Stock-Based Compensation Plans
Percentage of optional salary reductions	50%
Rate of issuance of stock awards or stock options due to salary reduction program	200%
Minimum
Stock-Based Compensation Plans
Percentage of optional salary reductions	10%
Rate of issuance of stock awards or stock options due to salary reduction program	150%
Board of directors and management
Stock-Based Compensation Plans
Fair market value of stock awards		$ 1.41		$ 1.41
Aggregate fair value		$ 328,200
Fair market value is expensed over twelve months		212,766
Fair market value is expensed over twenty-four months		20,000
Stock award issued		232,766

Long-Term Incentive Plan (Detai

Long-Term Incentive Plan (Details) - USD ($)		3 Months Ended		6 Months Ended
Long-Term Incentive Plan (Details) - USD ($)	Mar. 17, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	May 06, 2024
Long-term Incentive Plan
Exercise price		$ 7.24		$ 7.24		$ 1.33
Share-based compensation				$ 5,273,028	$ 6,500,261
Unrecognized stock compensation expense		$ 4,836,647		$ 4,836,647
Weighted average recognition period				1 year 2 months 12 days
Options available in equity market and operational milestone				5,359,500
Equity Market Capitalization Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				2,679,750
Annual Revenue Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				1,875,825
Annual EBITDA Margins Before Non-Cash Charges Targets
Long-term Incentive Plan
Options available in equity market and operational milestone				803,925
Employee Stock Option \| Long-term Incentive Plan 2021
Long-term Incentive Plan
Granted	5,784,000
Exercise price	$ 19
Share-based compensation		1,409,294	$ 1,749,687	$ 2,818,584	$ 4,287,631
Employee Stock Option \| Vest immediately \| Long-term Incentive Plan 2021
Long-term Incentive Plan
Shares vesting	375,000
Stock options tied to equity market capitalization milestone
Long-term Incentive Plan
Unrecognized stock compensation expense		5,974,737		5,974,737
Additional stock based compensation expense		$ 33,700,000		$ 33,700,000
Stock options tied to equity market capitalization milestone \| Minimum
Long-term Incentive Plan
Weighted average recognition period				3 years
Stock options tied to equity market capitalization milestone \| Maximum
Long-term Incentive Plan
Weighted average recognition period				4 years

Long-Term Incentive Plan - LTIP

Long-Term Incentive Plan - LTIP (Details)	6 Months Ended
Long-Term Incentive Plan - LTIP (Details)	Jun. 30, 2024 USD ($) shares
Long-term Incentive Plan
Percentage of weightage for equity market capitalization target	50%
Percentage of weightage for last twelve months revenue target	35%
Percentage of weightage for last twelve months EBITDA margin before non-cash charges	15%
Options available in equity market and operational milestone \| shares	5,359,500
Stock option tied to equity market and operational milestones
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	5,359,500
Equity market and operational milestone one
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	680,500
Amount of equity market capitalization target	$ 2,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 25,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	0%
Equity market and operational milestone two
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	680,500
Amount of equity market capitalization target	$ 3,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 50,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	2%
Equity market and operational milestone three
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	680,500
Amount of equity market capitalization target	$ 4,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 100,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	4%
Equity market and operational milestone four
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	680,500
Amount of equity market capitalization target	$ 5,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 200,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	6%
Equity market and operational milestone five
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	580,500
Amount of equity market capitalization target	$ 6,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 300,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	8%
Equity market and operational milestone six
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	580,500
Amount of equity market capitalization target	$ 7,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 450,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	10%
Equity market and operational milestone seven
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	555,500
Amount of equity market capitalization target	$ 8,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 675,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	12%
Equity market and operational milestone eight
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	485,500
Amount of equity market capitalization target	$ 9,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 1,000,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	14%
Equity market and operational milestone nine
Long-term Incentive Plan
Options available in equity market and operational milestone \| shares	435,500
Amount of equity market capitalization target	$ 10,000,000,000
Amount of last twelve months revenue target under the equity market and operational milestone under LTIP	$ 1,500,000,000
Percentage of last twelve months EBITDA margin before non-cash charges target	16%

Right-of-Use Assets and Liabi_3

Right-of-Use Assets and Liabilities - Operating Leases (Details)	Jun. 30, 2024 USD ($)
Right-of-Use Assets and Liabilities
2024	$ 279,262
2025	511,980
Total Future Lease Payments	791,242
Less: Imputed Interest	(44,239)
Total Lease Liability Balance	$ 747,003

Right-of-Use Assets and Liabi_4

Right-of-Use Assets and Liabilities - Additional Information (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 16, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Right-of-Use Assets and Liabilities
Operating lease costs		$ 184,143	$ 207,352	$ 375,648	$ 410,691
Weighted average discount rate		8.30%		8.30%
Weighted average remaining term		1 year 4 months 24 days		1 year 4 months 24 days
Increase in operating lease asset	$ 700,770
Increase in operating lease liability	$ 700,770

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Aug. 12, 2024	Nov. 20, 2023	Aug. 09, 2024
Atomistic SAS
Subsequent Event [Line Items]
Ownership percent		100%
Atomistic agreement
Subsequent Event [Line Items]
Stock Issued under Atomistic Stock Purchase Agreement (Shares)		1,397,500
Atomistic agreement \| Minimum
Subsequent Event [Line Items]
Issuance of shares, performance milestones (in shares)		890,000
Atomistic agreement \| Maximum
Subsequent Event [Line Items]
Issuance of shares, performance milestones (in shares)		1,446,250
Subsequent Event \| Atomistic agreement
Subsequent Event [Line Items]
Stock Issued under Atomistic Stock Purchase Agreement (Shares)	174,688
Stock Issued under Atomistic Stock Purchase Agreement	$ 181,676
Market share price			$ 1.04