Vuzix(US:VUZI)2025-11-13 21:02Financial Performance - Total sales decreased by $224,767, or 16%, for the three months ended September 30, 2025, compared to the same period in 2024, with product sales down 9% and engineering services down 33%[105]. - Gross loss for the three months ended September 30, 2025, was $411,307, or 35%, compared to a gross loss of $259,848, or 19%, in the same period in 2024, representing a 58% increase in gross loss[108]. - Net loss for the three months ended September 30, 2025, was $7,354,225, a decrease of $1,868,054, or 20%, compared to a net loss of $9,222,279 in the same period in 2024[105]. - Gross loss for the nine months ended September 30, 2025, was $1,437,792, representing a gross loss percentage of 36%, compared to a gross loss of $646,245, or 14%, in the same period in 2024[125]. - The company reported net losses of $23,658,106 for the nine months ended September 30, 2025, compared to $73,538,157 for the year ended December 31, 2024[143]. Revenue and Sales - Total sales for the nine months ended September 30, 2025, decreased by $444,555, or 10%, compared to the same period in 2024, with product sales down 4% and engineering services sales down 27%[123]. - Cost of sales for products decreased by $118,895, or 14%, for the three months ended September 30, 2025, compared to the same period in 2024[108]. - Engineering services cost of sales increased by $83,201, or 123%, for the three months ended September 30, 2025, compared to the same period in 2024[108]. - Total cost of sales decreased by $73,308, or 4%, for the three months ended September 30, 2025, compared to the same period in 2024[108]. - The cost of sales for products sold increased by $197,402, or 5%, for the nine months ended September 30, 2025, compared to the same period in 2024[122]. Expenses - Research and development expenses increased by $602,173, or 26%, for the three months ended September 30, 2025, primarily due to increased external development costs and depreciation related to under-utilized new manufacturing equipment[112][114]. - Selling and marketing expenses decreased by $619,052, or 35%, for the three months ended September 30, 2025, compared to the same period in 2024[105]. - General and administrative expenses for the three months ended September 30, 2025, decreased by $1,771,926, or 41%, largely due to a significant reduction in non-cash stock-based compensation[118]. - Research and development expenses for the nine months ended September 30, 2025, increased by $705,771, or 10%, driven by higher external development costs for new products[129]. - Total selling and marketing expenses for the nine months ended September 30, 2025 decreased by $2,207,762, or 35%, compared to the same period in 2024, primarily due to reductions in cash salary and benefits, bad debt expenses, and advertising costs[131]. - General and administrative expenses for the nine months ended September 30, 2025 decreased by $3,648,677, or 28%, largely due to a significant reduction in non-cash stock-based compensation expenses[133]. - Non-cash stock-based compensation expense related to general and administrative expenses decreased by $1,788,006, or 80%, for the three months ended September 30, 2025[118]. Income and Other Income - Investment income increased by $61,526, or 65%, for the three months ended September 30, 2025, compared to the same period in 2024[105]. - Total other income for the three months ended September 30, 2025, was $139,669, an increase of $62,670 from $76,999 in the comparable period in 2024, primarily due to higher investment income[120]. - Total other income increased by $225,610 to $465,506 for the nine months ended September 30, 2025, driven by a decrease in foreign exchange losses and other taxes[135]. Cash Flow and Financing - Cash outflows from operating activities were $13,234,835 for the nine months ended September 30, 2025, a reduction of $6,482,362 from the comparable 2024 period[139]. - The company raised $19,747,292 from financing activities during the nine months ended September 30, 2025, including $10,000,000 from the sale of Series B Convertible Preferred Stock[141]. - As of September 30, 2025, the company had cash and cash equivalents of $22,608,529, an increase of $4,422,023 from $18,186,506 as of December 31, 2024[137]. Management and Controls - Management plans to alleviate substantial doubt about the company's ability to continue as a going concern by raising further capital and implementing operational improvements[145]. - Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of September 30, 2025[155]. - There have been no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the most recent fiscal quarter[156].