UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-41392 INNOVATIVE EYEWEAR, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...

MIAMI, May 1, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (Nasdaq: LUCY; LUCYW), the developer and seller of smart eyewear, today announced the closing of its previously announced registered direct offering priced at-the-market under Nasdaq rules for the issuance and sale of 4,200,822 shares of its common stock at a purchase price per share of $0.244. Additionally, in a concurrent private placement, Innovative Eyewear has also issued unregistered warrants to purchas ...

 MIAMI, April 29, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (Nasdaq: LUCY; LUCYW), the developer and seller of smart eyewear, today announced that it has entered into a definitive agreement for the issuance and sale of 4,200,822 shares of its common stock at a purchase price per share of $0.244 in a registered direct offering priced at-the-market under Nasdaq rules. Additionally, in a concurrent private placement, Innovative Eyewear has also agreed to issue unregi ...

MAIMI, April 25, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (NASDAQ: LUCY; LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, is pleased to announce their Lucyd smart frames are now available from NewLook.ca and select New Look stores in Quebec. New Look is a leading eyewear retailer with over 450 stores in the US and Canada. Image courtesy of New Look Vision Group Harrison Gross, CEO of Innovative Eyewear said " ...

MIAMI, April 24, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or "the Company") (NASDAQ: LUCY) (NASDAQ-CM: LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, today announced the filing of two new United States patent applications, a utility application, No. 18/605,092, entitled  SMART EYEWEAR HAVING ACCESSIBLE TACTILE CONTROLS and a design application, No. 29/930,655, entitled SAFETY EYEWEAR. Innovative Eyewear also announces receipt of ...

MIAMI, April 18, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (NASDAQ: LUCY; LUCYW), the developer of ChatGPT smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, today announced the signing of Micah Richards as an official brand ambassador.Micah Richards is a former England International footballer, turned successful broadcaster, currently working for Sky Sports, CBS Sports and BBC Sport while he is also a co-host of "The Rest is Football" – a ...

MIAMI, April 17, 2024 /PRNewswire/ -- Innovative Eyewear, Inc. ("Innovative Eyewear" or the "Company") (NASDAQ: LUCY; LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, is pleased to announce a new partnership with Windsor Eyes, a leading eyewear manufacturing and distribution firm. The partnership aims to forge a robust collaboration between Innovative Eyewear's unique, cutting-edge smart eyewear products and Windsor Eyes' well-established distribution netwo ...

Product Development and Innovation - In February 2023, the company launched version 2.0 of Lucyd Lyte eyewear with 15 styles, featuring a four-speaker audio array, 12-hour music playback, and improved styling[18]. - The current product offering consists of 29 different models, each available with over 80 lens types, resulting in thousands of product variations[20]. - The company has over 100 licensed patents and applications, indicating a strong focus on innovation and technology[20]. - The company completed development of new styles for licensed brands in 2023, with plans for all three collections to launch in 2024[25]. - The company has filed numerous patents covering current product designs and advanced features, including Vyrb and multi-channel Bluetooth connectivity[81]. - The company has demonstrated its leadership in the smart eyewear space by filing dozens of patents related to design and functionalities[77]. Market Potential and Strategy - The total addressable market for eyewear in the U.S. is projected to be $35.2 billion in 2024, with a growing market for digital assistants projected at $4.5 billion in revenue in 2023[41]. - The company aims to convert traditional eyewear users, with 167 million prescription and 224 million non-prescription glasses wearers in the U.S. alone[40]. - Lucyd Lyte eyewear starts at a Manufacturer's Suggested Retail Price (MSRP) of $149, significantly lower than competitors like Bose Frames at $249 and Amazon Echo Glasses at $329-$389[51][60]. - The company aims to expand brand awareness and revenue through stylish optical smart eyewear and the ChatGPT app[77]. - The company plans to scale up its affiliate and email marketing efforts in 2024 to enhance its core social ads campaigns[75]. - The company aims to increase distribution through optical stores, big box retailers, and e-commerce channels to drive revenue growth[132]. Customer Engagement and Experience - The Lucyd app, launched in April 2023, allows users to interact with ChatGPT AI, enhancing the smart eyewear experience and creating potential in-app purchase revenue streams[30]. - The company introduced a virtual try-on kiosk in 2022, upgraded in 2023, to enhance customer engagement in retail environments[24]. - The company has made strides in making smart eyewear accessible to the mass market, including designs for women and youth[35]. - The company donates an optical frame for every Lucyd Lyte sold at retail, supporting community initiatives[37]. - The Vyrb social audio app, currently in beta, is expected to launch fully in 2024, allowing users to interact with social media through voice commands[103]. Financial Performance and Projections - The company reported a net loss of $6,616,791 for the year ended December 31, 2023, compared to a net loss of $5,681,833 for the year ended December 31, 2022, resulting in an accumulated deficit of $16,922,778[126]. - The company plans to achieve profitability within the next two years by enhancing products with new designs and investing in product development, supply chain, and sales and marketing capabilities[127][128]. - The company has a gross margin of approximately 69% for e-commerce sales and 32% for wholesale sales, with lens upgrades sold online having a standardized profit margin of around 35%[59]. - The company has a minimum obligation of $14,171,210 in licensing fees over the next ten years for cobranded collections with Nautica, Eddie Bauer, and Reebok[178]. Risks and Challenges - The smart eyewear industry is highly competitive, with significant competition from established brands like Ray-Ban and Bose, which may impact the company's market position[123][124]. - The company acknowledges the risks associated with dependency on foreign supply chains and geopolitical changes, which could disrupt operations[116]. - The company faces risks related to supply chain disruptions due to increases in component costs, shipping costs, and supply shortages, which could adversely affect its financial condition and operating results[135]. - The company relies on a limited number of contract manufacturers and logistics partners, which poses risks to its supply chain[116]. - The company may face significant expenses and operational impacts due to legal proceedings and regulatory disputes, which could harm financial performance[190]. Marketing and Brand Strategy - The marketing strategy focuses on omni-channel touchpoints, leveraging user-generated content and influencer marketing to enhance brand presence[76]. - The influencer strategy includes partnerships with notable figures such as Chris Clark, Monique Billings, and Emmanuel Ogbah to promote products and increase brand awareness[79]. - The company plans to invest substantial resources in brand promotion, but there is no guarantee that these efforts will lead to increased sales or brand recognition[151]. Compliance and Regulatory Issues - The company is subject to FDA regulations as an eyewear importer, which could impact operations if compliance is not maintained[180]. - The California Consumer Privacy Act (CCPA) took effect on January 1, 2020, granting California residents expanded rights regarding their personal information, which may affect the company's e-commerce platform[184]. - The California Privacy Rights Act (CPRA) will impose additional restrictions on the use of sensitive personal information starting January 1, 2023, requiring further compliance investments[185]. - The company collects a variety of personal data, including health information related to ophthalmic prescriptions, which is regulated by stringent privacy laws[182]. Intellectual Property and Technology - The company holds 11 registered trademarks and applications, including "LUCYD" and "Lucyd Lens," primarily registered in the UK[88]. - The company must protect its intellectual property rights, as failure to do so could harm its brand and competitive position[193]. - The company may incur significant costs to monitor and protect its intellectual property rights, which could distract management and impact operations[197]. - The company is exposed to potential liabilities from non-compliance with rapidly changing privacy and data protection laws, which could adversely affect operations[181].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 001-41392 INNOVATIVE EYEWEAR, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction o ...

Product Development and Launches - The company launched version 2.0 of Lucyd Lyte eyewear, increasing music playback and call time to 12 hours, a 50% improvement over version 1.0[76] - The flagship product line's price increased from $149 to $199 for acetate models and from $179 to $229 for titanium models with the launch of version 2.0[93] - The company plans to introduce eight styles of Nautica smart eyewear and six to twelve additional styles of Lucyd Lyte glasses in 2023[77] - The introduction of a new modular display system aims to enhance customer education and product sell-through in retail environments[84] Sales and Market Presence - As of June 30, 2023, the company has received 15,422 cumulative online orders since inception, indicating growth in e-commerce efforts[91] - The company added approximately 50 new retail partners in Q1 2023 and 25 new independent optical stores in Q2 2023, expanding its retail presence[83] - The company has over 300 retail stores selling Lucyd Lyte across 250+ unique wholesale accounts, indicating strong market penetration[88] - Approximately 32% of sales were processed on the online store (Lucyd.co), 36% on Amazon, and 32% with reseller partners for the three months ended June 30, 2023[111] - Approximately 33% of sales were processed on the online store (Lucyd.co), 34% on Amazon, and 33% with reseller partners for the six months ended June 30, 2023[130] Financial Performance - Revenues for the three months ended June 30, 2023, were $169,929, a decrease of approximately 17% compared to $204,741 for the same period in 2022[109] - Revenues for the six months ended June 30, 2023, were $314,850, a decrease of approximately 29% from $440,763 in the same period of 2022[129] - Gross deficit was $29,816 for the three months ended June 30, 2023, compared to a gross profit of $43,247 for the same period in 2022[118] - Gross deficit was $19,525 for the six months ended June 30, 2023, compared to a gross profit of $117,637 for the same period in 2022[137] Cost and Expenses - Cost of goods sold increased to $199,745 for the three months ended June 30, 2023, compared to $161,494 for the same period in 2022, primarily due to significant custom duties and higher Amazon fees[114] - Total cost of goods sold increased to $334,375 for the six months ended June 30, 2023, compared to $323,126 for the same period in 2022[133] - Operating expenses rose by 10% to $1,304,475 for the three months ended June 30, 2023, compared to $1,189,614 for the same period in 2022, driven by investments in growth and development[121] - Operating expenses rose by 66% to $2,743,713 for the six months ended June 30, 2023, from $2,452,190 in the same period of 2022[139] - General and administrative expenses increased by 36% to $968,354 for the three months ended June 30, 2023, due to higher employee-related costs and new executive agreements[121] - General and administrative expenses increased by 146% to $1,962,126 for the six months ended June 30, 2023, compared to $1,317,108 for the same period in 2022[139] - Sales and marketing expenses decreased by 74% to $103,643 for the three months ended June 30, 2023, primarily due to the reversal of previously recognized stock-based compensation[122] - Sales and marketing expenses decreased by 139% to $362,940 for the six months ended June 30, 2023, from $976,714 in the same period of 2022[140] Research and Development - Research and development costs increased by 276% to $197,478 for the three months ended June 30, 2023, compared to $52,560 for the same period in 2022[124] - Research and development costs increased by 59% to $348,647 for the six months ended June 30, 2023, compared to $88,367 for the same period in 2022[142] Cash Flow and Financing - Net cash flows from operating activities were $(3,270,960) for the six months ended June 30, 2023, compared to $(1,136,112) for the same period in 2022[146] - Net cash flows from investing activities were $(2,115,261) for the six months ended June 30, 2023, compared to $(97,754) for the same period in 2022[147] - Net cash flows provided by financing activities were $7,151,557 for the six months ended June 30, 2023, compared to $1,189,017 for the same period in 2022[148] Future Outlook - The company anticipates gross profit for the fiscal year ending December 31, 2023, to improve due to economies of scale from large anticipated wholesale and retail partner orders[119] - The company expects prescription lens costs to gradually decrease as a percentage of overall cost of goods sold as third-party retail stores become the primary sales channel[117] - The anticipated launch of the Nautica Powered by Lucyd line in 2024 represents significant revenue potential due to the partnership with Authentic Brands Group[135] - The company expects operating losses to continue in the foreseeable future as it invests in business expansion and development[149] App Development and Features - The Lucyd app for iOS/Android allows users to interact with ChatGPT AI, representing a significant marketing opportunity and potential revenue stream[79] - The company plans to enhance the Lucyd app with features such as AI access beyond ChatGPT and an audio content library[142] - The company aims to launch a peer-to-peer content marketplace through the Vyrb app, focusing on audio and wearable content[142] Tax and Compliance - The company has incurred taxable losses since inception but is current in its tax filing obligations[158] - As of June 30, 2023, the company did not have any off-balance sheet arrangements[151]