NASDAQ: LUCY

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Our Lucyd Armor product line provides all of the powerful features of Lucyd eyewear in stylish safety glasses designed for all-day wear. Lucyd Armor smart safety glasses have been certified to meet safety standards in the U.S., Canada, United Kingdom, and European Union. First launched in October 2024, Armor has rapidly become one of our best-selling products, and in November 2025, we launched additional new variants of the Lucyd Armor glasses, in order to expand the collection to a wider audience and build on the success of the original model with important variations in lens functionality and sizing. We currently offer five different models of Lucyd Armor smart safety glasses.

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The Nautica® Powered by Lucyd smart eyewear collection, first launched in January 2024, includes eight different frame styles, along with various branded accessories including a power brick, cleaning cloth, and a slipcase adorned with the iconic Nautica sail logo. This collection introduced the Company’s first “global fit” style, which supports low nose bridge customers.

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The Eddie Bauer® Powered by Lucyd smart eyewear collection, first launched in April 2024, includes four different frame styles, and showcases the first-to-market rimless smart eyewear design. The Eddie Bauer collection is a premium product line featuring brushed titanium hardware, improved sound quality, and includes the patent-pending Lucyd dock with every unit.

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In April 2025, we launched the Reebok® Powered by Lucyd sport smart sunglasses collection in eight different frame styles. This collection features custom high-fidelity speakers, powerful amplifiers, and equalizers specifically tuned for outdoor activities and sports environments. Subsequently, in November 2025, we launched two additional styles of Reebok® Powered by Lucyd sport smart sunglasses.

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We plan to launch the Reebok® Powered by Lucyd premium optical collection in the first half of 2026.

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Our current product offering consists of 34 different models across the traditional, sport, and safety categories. Most styles are available with 100+ different lens and prescription options, resulting in thousands of sellable variations of products currently available. With Lucyd Lyte and our Nautica® and Eddie Bauer® lines (traditional), Reebok® (sport) line, and Lucyd Armor (safety) line, we believe we are the first smart-eyewear company with products concurrently in the traditional, sport, and safety eyewear categories. Our cobranded license arrangements enable us to offer a more diversified product portfolio and help us reach distinct consumer segments and demographics (for example, Nautica® skews more fashion-forward than Lucyd Lyte, Eddie Bauer® reaches an older demographic, and Reebok® attracts younger, more active customers).

Some of the many things our customers can do with their Lucyd smartglasses include:

1.
“Send a voice message to (contact)”: this command begins the recording of an audio message to be sent to named contact.

2.
“Send a text to (contact)”: begins recording of a speech-to-text message to be sent by SMS to named contact.

3.
“Call (contact)”: speed-dials the named contact.

4.
“Send $___ to (contact)”: this command allows the user to send money to a contact via Venmo or Apple Cash.

5.
“Check my messages”: this command reads out the user’s latest incoming text messages and offers a prompt to reply to each.

6.
“Check my mailbox”: this command announces the number of unread emails, and reads them out with a prompt to continue after each one. In the prompt after each one, the user can tell their digital assistant “Reply” and dictate an email response to the previous email.

7.
“Find (cuisine type) food nearby”: this command reads through a list of nearby restaurants and their ratings, and prompts the user for directions or to call after each one.

8.
“Call me an Uber”: this command prompts the user on which type of Uber ride they want, then asks to confirm to send a car to the user’s location.

9.
“What time is it?”: announces the current time.

10.
“Play (song/album/artist)”: this command begins playing the requested song, album, or artist via Apple Music.

11.
“Get me directions to (location)”: this command begins navigating on phone, with audible directions on glasses.

12.
“Take a memo”: this command begins recording a speech-to-text memo in Notes, which can also be played back to the user.

Since the initial launch of Lucyd Lyte, we have witnessed growing interest and demand from customers throughout the United States and have sold thousands of our smart glasses. We believe smart eyewear is a product category whose time has come, and we believe we are well positioned to capitalize on and help develop this exciting new sector – where eyewear meets electronics in a user-friendly, mass market format, priced similarly to designer eyewear.

The Company currently has an overall portfolio of owned and licensed intellectual property of over 120 patents and applications.

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Software and Apps

The Lucyd app, available for iOS and Android, is a free application that enables the user to converse with the extremely popular ChatGPT AI language model on our glasses, to instantly gain the benefit of one of the world’s most powerful AI assistants in a hands-free ergonomic interface. First launched in 2023, the app deploys a powerful and unique Siri and Bixby integration with the Open AI API for ChatGPT, developed internally by the Company. The Company has filed a patent application related to this software.

In 2024, we added a “Pro” version of the app, which provides unlimited ChatGPT interactions and priority tech support for a monthly or annual fee. We also launched a new feature called “Walkie” for the Lucyd app in 2024, which enables thousands of users to join each other on walkie-talkie style communication channels. This feature was designed with our Lucyd Armor safety glass product in mind, to enable coworking teams to communicate freely on smart eyewear.

In February 2025, we updated the Lucyd app’s Walkie feature, enabling premium subscribers access to secure and private walkie channels, providing businesses and organizations with a powerful tool to communicate confidentially and seamlessly through Lucyd smart eyewear. In May 2025, we announced additional updates to the Lucyd app, including new voice prompts and further enhancements for the app’s Walkie feature. Most recently, in September 2025, we announced the addition of a new translation feature to the Lucyd app, which allows for voice-based translation between 17 languages in real time. We plan to launch more new features for the Lucyd app in the future.

We believe these developments make our Lucyd eyewear perhaps the smartest smartglasses available today, and represent a significant marketing opportunity for our core smartglass products. The Lucyd app delivers an updated user experience over time without requiring costly hardware changes. Additionally, the overall flexibility of Bluetooth connectivity and ability to connect to a variety of voice assistants, including device-native assistants and ChatGPT, make our glasses a “device- and AI- agnostic” peripheral suitable for use with almost any desktop or mobile computing platform. This aspect of our products makes them a highly compatible interface accessory and distinguishes them from accessories designed to enhance a specific platform, such as Apple AirPods for iOS or gaming headsets for desktop computers.

Kiosks and Retail Fixtures

We provide certain retail partners with point-of-sale display materials, including virtual try-on kiosks, modular display units, and interactive LCD fixtures designed to support in-store product education and demonstrations. Many of our retail fixtures allow for customization to suit our retail store partners’ needs, and our newer fixtures feature a proprietary kiosk app that we developed in-house.

During 2025, we continued to develop and enhance our merchandising display systems, including updated designs intended to support features such as video content, product education, and interactive product demonstrations (e.g., audio testing and/or digital try-on content).

The Company currently offers three key display systems: (1) Hero Displays, which are unpowered branding stands, (2) Counter Kiosks, which offer digital and interactive demo experiences, and (3) the Lucyd Kiosk, which is a freestanding screen for larger stores. Across all display systems offered by the Company, approximately 60 displays have been deployed to vendors as of December 31, 2025.

Our Mission

Our mission is to Upgrade Your Eyewear®. Our smart eyewear is a fusion of headphones with glasses, bringing vision correction and protection together with digital connectivity and clear audio, while also offering a safer solution for listening to music outdoors (as compared to in-ear headphones). The convenience of having a Bluetooth headset and comfortable glasses in one, especially for those who are already accustomed to all-day eyewear use, offers a lifestyle upgrade at a price most consumers can afford.

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In a sense, we view this integration of technology and vision correction/protection as the next evolutionary step in the development of eyewear. Over the entire course of eyewear development and history, many of the innovations have dealt with improving the lenses of the glasses. Notably, eyewear frames have not improved much in the past 400 years, with the exception, in our view, of the utilization of plastic to reduce weight and provide a wider range of designs and finishes, and the introduction of new hinge types. We view the integration of Bluetooth technology into the arms of the glasses as one of the key next steps to enhance one of the world’s most important wearables: eyewear.

Additionally, as part of our commitment to a great customer experience, we listen to feedback from our customers, and continuously strive to improve customer satisfaction and experience with our products.

We have made strong strides towards our goal of making smart eyewear accessible to the mass market. Several developments towards this end include developing our smart frames in multiple temple lengths; the introduction of smart eyewear specifically for women and youth, which are typically missing from similar offerings; and the introduction of smart eyewear for adults with petite or narrow faces. Our expansive product offering currently consists of 34 different models, which offers a similar amount of style variety as many traditional eyewear collections. When paired with the Lucyd app, our smartglasses provide a new and safer wearable user experience suitable for everyone.

Our goal is to become a meaningful player in the smart eyewear market. Our successes to date demonstrate our ability to not only compete, but to lead in the rapidly changing and expanding technological eyewear market, and we intend to continue spearheading innovation in the field.

Giving Back

The Company believes good vision is a human right, and to this end makes regular frame donations to charitable organizations in South Florida and beyond. We have supported those in need through our donation of glasses frames to New Eyes (https://new-eyes.org/about-us), a charity dedicated to helping children and adults in need of eyewear. We have also participated in a partnership with the Miami Rescue Mission to support our local community with eyewear. Most recently, we donated 125 pairs of Lucyd Lyte smart glasses to North Miami High School in 2025.

Additionally, university students, educators, healthcare workers, uniformed service members, and veterans are eligible for an ongoing 18% discount off all frames and lens upgrades on www.lucyd.co.

Our Market Opportunity

One of our key opportunities is converting traditional eyeglass and sunglass wearers to smart eyewear consumers, since these customers are already familiar with wearing optical products. According to a 2021 report of the Vision Council, a non-profit trade association that serves member companies of the optical industry, there are approximately 167 million adults wearing prescription eyeglasses in the United States.

According to the Vision Council, the total addressable market for eyewear in the U.S. was $69.5 billion in 2025, up 4.4% from 2024. The smartglass market size was estimated at $2.5 billion worldwide in 2025, and is expected to grow at a compounded annual growth rate of 24% from 2026 to 2033 according to Grand View Research.

At the same time, the market for digital assistants like Siri, Google Voice, Bixby, and Alexa has grown rapidly worldwide in recent years, estimated at over 8 billion voice assistant-enabled devices in use in 2024, doubling the amount from 2020 and indicating strong proliferation of voice-controlled devices. We view the popularity of voice assistants as an important catalyst for the smart eyewear market, since hands-free access to voice-based AI is a notable feature thereof and a key advantage of our products over standalone smartphone usage.

The common denominator among markets for hearables and digital assistants is that they facilitate real-time access to digital data, whether it is through music, calls, navigational directions, or information, among other uses. The combination of hearables and digital assistants provides a transparent, ergonomic interface between the users and their digital lives. At Innovative Eyewear, we are dedicated to a touch-free interface and untethering our customers’ eyes from their smartphone screens, through our smart eyewear product.

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The synergistic fusion of these three markets (eyewear, digital assistants, and hearables) enables, in our view, an opportunity to create a completely new experience of connected eyewear, which smoothly delivers the functionality of both optical glasses and headphones, eliminating the need for either on its own. Nevertheless, several orthodoxies of the eyewear industry still hold, namely: if you want to sell a lot of eyewear, we believe it should be attractive, stylish, comfortable (e.g., lightweight, which we believe to be approximately one ounce), and cost roughly the same as traditional eyewear. This is what we have sought to achieve, and in our view have accomplished with the introduction of Lucyd Lyte eyewear.

A key indicator of the potential future success of smart eyewear in the consumer market is the rise of smartwatches, which as early as 2018 have intermittently surpassed traditional wristwatches in unit sales in the United States. We believe that the similarities between smartwatches and smart eyewear compared to their traditional counterparts indicate that the future of eyewear will also be smart.

Our Business Strategy

When we first started our company, there was, in our view, no attractive smart eyewear that addressed the basic consumer need for good looking designer glasses that were stylish, comfortable, lightweight, and provided the functionality of hearables, and priced around the same as regular glasses.

At the core of our strategy are the following principles:

1.
Consumers prefer smart eyewear that looks and feels like traditional glasses and sunglasses; this is a key element in the design of all of our frames, and makes it easier for traditional eyewear users to switch to our products.

2.
For a smart eyewear line to achieve mass market penetration, it should cost a similar amount to traditional designer eyewear, especially while the category is still emerging and most consumers are not yet familiar with it.

3.
Smart eyewear must be user-friendly and have an interface that is easy to navigate by the wearer, even when their hands are wet or gloved. As such, we deploy highly tactile interfaces on our eyewear.

4.
The battery life of smart eyewear should be sufficient to support smart functionalities throughout the day without needing to be recharged mid-day.

5.
Rather than burdening our hardware with mechanical features such as cameras and microdisplays which may be unnecessary for many users, we instead leverage software platforms that can add functionality without increasing the weight or size of the frames.

6.
By adhering to the above principles, we can eliminate any “costs of switching” from traditional eyewear to smart eyewear, and build customer lifetime value by offering a more powerful combination of fashion, smart features, and vision correction and protection than available from other companies.

All of our products are designed in Miami, manufactured in China, and sold through a combination of e-commerce channels and wholesale and retail partners, including independent optical stores and certain national and specialty retailers., Currently, our products are sold in over 400 retail stores (across over 300 unique wholesale accounts), primarily in the U.S. and Canada. During the latter half of 2025, we have begun to focus more efforts on international expansion, including the development of new partnerships with distributors and retailers in the UK, EU, Canada, and Latin America, as well as securing initial orders from key European markets. Domestically, our strategy has recently been focused on pursuing online and in-store big box retailers, and in-store and online specialty retailers.

We believe that people care about what they wear on their faces, and because we understand that customers have diverse preferences about the shape, size, and design of their eyewear, we aim to continuously introduce new models in an effort to offer a wide variety of designs. We continuously present new models of eyewear to our network of followers to vote on those styles they find most appealing. We view this as community approved design.

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Competition

The smart eyewear industry in which we operate is competitive and is subject to changes as it continues to evolve. The smart eyewear market encompasses multiple product categories, including: (i) audio‑enabled smart glasses that provide open‑ear audio and access to voice assistants; (ii) camera‑enabled smart glasses that combine audio with photo/video capture and social‑media features; and (iii) augmented reality (“AR”) and virtual reality (“VR”) headsets and glasses.

We primarily compete in the audio‑enabled smart glasses category, and we also compete with certain camera‑enabled smart glasses and with traditional (non‑smart) eyewear and headphones. AR/VR headsets and glasses generally target different use cases, price points, and form factors than our products, and we do not currently focus our product strategy on AR/VR headset devices.

Our competitors include large technology companies, consumer electronics companies, eyewear brands, and manufacturers of industrial safety eyewear. Many of these competitors – such as, for example, Amazon, Meta, and Solos – have substantially greater manufacturing, financial, research and development, personnel, and marketing resources than we do. As a result, although we believe our products are currently superior, our competitors may be able to develop superior products, and compete more aggressively and sustain their competitive advantage over a longer period of time than us. Our products may be rendered obsolete in the face of competition.

Our Competitive Strengths

A Unique Solution to a Common Problem. While immensely useful, smartphones can present a safety hazard to motorists, pedestrians, and cyclists because smartphones can distract people from the task or activity at hand. According to the Governors Highway Safety Association, there were over 7,000 pedestrian deaths in the U.S. in 2024, and experts believe smartphones were partially to blame. Recent data from the Governors Highway Safety Association indicates that since 2016, the number of pedestrian deaths rose by 20%, (Pedestrian Traffic Fatalities by State: 2024 Preliminary Data – (https://www.ghsa.org/resource-hub/pedestrian-traffic-fatalities-2024-data). We believe that the distraction created by smartphones originates in two forms: (1) via headphones or earbuds, where the user is deprived of full audible situational awareness; and (2) via the visual interface of the phone, which distracts the user completely from their surroundings. Lucyd Lyte open-ear audio helps address this problem by having the speakers mounted at the temples (in the arms) of the glasses. There is nothing in the ear canal and, as a result, individuals can better maintain situational awareness, such as hearing the traffic around them, as well as nearby sounds. Many of our competitors have relatively bulky speakers enclosed within the temples, while Lucyd Lyte’s speakers and temples are thin, which allows them to look similar to traditional designer glasses. Furthermore, through the quick and easy touch controls on Lucyd Lyte glasses, the wearer can perform many tasks for which they would normally pull out their phone – thus our glasses help untether the eyes of the user from their smartphones throughout the day and enable them to remain more visually vigilant and aware of the traffic around them.

Affordable Price Point. We generally price our smart eyewear in a range intended to be competitive with traditional designer eyewear. The Manufacturer’s Suggested Retail Price (“MSRP”) for our Lucyd smart eyewear starts at $149, with advanced options and customizations available at higher price points, which are at the discretion of the customer. A basic prescription lens upgrade is offered for $40. By comparison, most of our U.S.-based competitors offer products that are more expensive, starting at approximately $249 or higher, with higher costs to add prescriptions.

Camera‑Free, Voice‑First Design. Our products are designed to deliver hands‑free audio and voice assistant access without a camera, which we believe can support user privacy preferences, enable longer battery life, and lighter weight compared to certain camera‑enabled alternatives, and help maintain price parity with traditional eyewear.

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Quality. All of our frames can be outfitted in-house or by optical resellers with any combination of prescription, sunglass, reading, and blue light lens formats. Our frame fronts are made with what we believe are high quality optical materials to ensure easy lens fitting by any optician.

Customizable Product Offering. There are 100+ lens types available for our smart glasses, making our products the most customizable smart eyewear in the world. Our partnership with a third-party optical lab in Florida allows us to offer custom lenses and direct prescription fulfillment to our customers quickly and affordably.

Comfort. At just 1.0 - 1.75 ounces, our eyewear has a feather-light fit, suitable for all day vision correction or sun protection (traditional glasses weigh about 1 ounce). This is especially important while on the go. Our 1.0 ounce titanium aviators are among the lightest smart eyewear ever made.

Long Battery Life. At 8 - 12 hours of playback per charge, our current product offering of Lucyd eyewear outpaces most, if not all, of the competition on battery life.

Capital Light Business Model. All of our products are sold through multiple e-commerce channels, and are distributed through optical or other retailers. We believe this capital light approach is highly scalable and efficient in the deployment of resources. We view “capital light” as being more efficient by obviating the need to build factories and retail stores, while partnering with existing companies in both of these groups.

Multiple-Channel Approach. We sell our products both through multiple online channels and multiple categories of brick-and-mortar retail stores. We believe this multi-channel approach provides us with an advantage against our competitors who sell in a narrower selection of channels.

Vertical‑Specific Product Strategy. We design and market smart eyewear for multiple segments, including industrial safety, sport/performance, and everyday optical/lifestyle use. While we face competitors in each segment, we believe our focus on mass‑market use cases and familiar eyewear form factors differentiates our approach from certain competitors that emphasize more technology‑heavy devices.

Compliance and Safety Positioning. Lucyd Armor products are designed and marketed as safety eyewear and have been certified to meet applicable safety standards, including ANSI Z87.1 (United States), CSA Z94.3 (Canada), and EN ISO 166 (European Union).

Intellectual property and know‑how. We have developed and acquired intellectual property related to smart eyewear design and software integrations, and we continue to pursue additional patent protection where appropriate.

Experienced Management Team. We have an experienced board of directors with more than 100 years of combined experience in the eyewear industry, and a management team with substantial experience in software and electronics engineering and operating eyewear and technology companies.

Sales

We have two major sales channels: (1) e-commerce (primarily via Lucyd.co and Amazon.com), and (2) a growing network of retail stores across a variety of resellers. Additionally, we have a robust presence on multiple e-commerce and social media platforms, which facilitates several customer on-ramps for the Lucyd brand, and numerous ad campaign strategies. Building on our early successes of driving traffic to our website Lucyd.co, from Facebook, Instagram, and TikTok, we deploy high quality content on multiple platforms to continuously keep customers engaged and drive brand awareness.

Online retail sales accounted for the majority of our sales in 2025 and 2024, and have represented the majority of our sales since inception.

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E-commerce Channels

1.
Company website: Lucyd.co

Lucyd.co is our primary e-commerce point of sale. The site offers the most customization options of any of our sales channels and a full prescription lens lab, offering over 100 different lens types, including transition lenses and progressive bifocals. Additionally, the Lucyd website ships worldwide and provides a quick and smooth buying experience.

2.
Amazon

Amazon.com/lucyd is our brand shop on Amazon. It drives a significant portion of our online sales, but limits the number of variations we can offer on our frames (e.g., prescription lenses are not permitted on Amazon). However, through Amazon, we are still able to offer color lens sunglass variants and blue light blocker pairs, in addition to our charging dock accessory item. We continually monitor and test traffic flow to Lucyd.co versus Amazon.com to ensure our online ad spend is fully optimized.

3.
Other Major Websites

In addition to our online sales through Lucyd.co and Amazon.com, our products are also sold on Walmart.com, Target.com, BestBuy.com, DicksSportingGoods.com, and eBay.

4.
Social Selling

Not only do we use social media to drive traffic to our main sales channels, but we also take advantage of intra-social shops as well, and have deployed shopping experiences through Facebook, Instagram, and TikTok to gain further brand awareness.

We also offer two affiliate platforms via Awin and Shopify for peer-driven sales. The Awin program is for professional affiliate and deal promotion companies, and increases revenue on Lucyd.co by offering direct commissions in exchange for converting web traffic. The Shopify affiliate program enables Lucyd brand enthusiasts to get a financial reward for sharing the brand, and operates on similar terms as the Shareasale program where we provide a commission rate in exchange for converting web traffic.

Retail Channels

1.
Independent Eyewear Stores

The core of our B2B business is formed by our relationship with numerous eyewear store retailers across the United States and Canada, which provide our smart frames directly to their optical customers. Many of these retail stores have placed multiple stocking orders since first launching our wholesale business in 2021. To support our resellers, we offer a strong co-op marketing program that includes free store display materials. As part of this strategy, we provide customizable modular display systems and interactive LCD retail fixtures to our resellers to provide an immersive virtual try-on experience along with detailed product info and videos for prospective customers.

2.
National Eyewear Chains

Thanks to aggressive promotion from competing glasses, retailers are now more open to introducing smart eyewear in their stores and on their e-commerce platforms. Based on our current discussions with several major optical businesses (by store size), we believe at least one additional major optical chain or national optical buying group will onboard our product line in 2026. However, there can be no assurances that any of these retailers and distributors will sell our products.

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3.
Big Box Retail Stores (electronics, sporting goods, home improvement, general merchandise)

In addition to mainstream optical channels, we distribute our Lucyd eyewear through leading big box stores, such as Best Buy and Dick’s Sporting Goods, through either their eyewear or electronics departments. We have recently expanded our electronics retail presence through partnerships with specialized electronics retailers, further strengthening our position in the consumer electronics segment.

Additionally, with the successful launch and explosive growth of Lucyd Armor Safety Smart Eyewear, we are expanding into the safety eyewear market. Our distribution strategy targets major home improvement retailers including Home Depot, Lowe’s, Ace Hardware, and Canadian Tire, as well as leading industrial PPE (personal protective equipment) distributors such as Grainger and Fastenal. This certification-backed entry into the safety market represents a significant expansion of our addressable market.

Manufacturing and Supply Chain

Our products are designed in the United States and subsequently manufactured in China. The products are designed in-house, and 3-D Computer-Aided Design (CAD) files are produced with product renderings. We then subject these rendered images to focus group review, to determine which designs we should move to the prototype development stage. Pre-production prototypes are developed by our factories in China, to our specifications. Our factories source components for the smart eyewear in China, including plastic and titanium for the frames, electronic components, speakers, microphones, and batteries. All packaging is designed in Miami and fabricated in China. Once completed, our products are tested in the United States, to assess functionality, fit, and finish. Production orders are placed and fabricated in China based on anticipated demand, whereupon they undergo a rigorous thirteen-point third-party product inspection process. This inspection is conducted on 100% of our manufactured products. Inspections include testing procedures to help ensure our customers receive only functional, high-quality products. For large bulk orders from clients, we are able to order this inventory on demand, due to the expected lead times in the traditional frame sourcing business.

All of our frames are manufactured with prefabricated, ready-to-wear sunglass or blue light lenses, and are directly shipped to the customer in this state if the customer declines to purchase custom lens upgrades. If a customer orders with prescription or specialty lenses, then the smart eyewear frames are sent to an optical contractor laboratory in Miami, Florida, to have the lenses cut, ground, and mounted in the frames, whereupon they are directly shipped to customers.

Beginning in April of 2025, the United States government has announced new or increased tariffs on goods imported from various countries to the U.S. We have taken actions to mitigate the negative impacts of the tariffs, including diversifying our logistics network and modifying our product fulfilment and replenishment model. More specifically, we opened three new fulfillment centers (in Europe, Canada, and the Shenzhen special economic zone of China) to improve the fluidity of our international factory direct business (which is not subject to U.S. tariffs), and are working to rapidly expand this business unit with regional resellers. Additionally, we have conducted a thorough investigation of alternatives to Chinese manufacturing in the event that tariffs make manufacturing there untenable. Although this has not yet come to pass, the Company is prepared to shift manufacturing to Taiwan and/or Vietnam if necessary, and has developed contingency plans to do so.

These and other actions taken by management to date to mitigate the impacts of tariffs have been largely successful thus far, and restored our third and fourth quarter 2025 gross profit margins to a level that was mostly consistent with our pre-tariff business plan. However, the current international geopolitical climate related to tariffs is fluid and continues to evolve. We are actively monitoring the ongoing tariff and trade policy developments, and continue to evaluate the potential impacts to our business, cost structure, supply chain, and the broader economic environment.

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Marketing

We market our products through a combination of digital advertising, online marketplaces, social media, influencer and user‑generated content, email marketing, affiliate programs, public relations, and wholesale partner co‑marketing initiatives. We employ a 360-degree marketing strategy that encompasses both brand and user-generated content syndication across earned, owned, and paid platforms. As the first smart eyewear manufacturer developing tailored products for specific use cases, our marketing approach uniquely addresses distinct segments through our All-Day Wear, Sun, Sports, and Safety product lines. This segmented strategy enables us to deliver targeted messaging to professional users seeking AI-enabled daily eyewear, active individuals requiring high-performance features, and industrial users needing certified protective equipment with smart capabilities.

Long form and video content generation are key focus points for the brand, as they allow us to better leverage both emerging and critical smart eyewear narratives through persistent search engine optimization (SEO), increasing our organic brand awareness across the board, in addition to strategic loyalty, influencer, and affiliate marketing campaigns.

Our online marketing strategy is primarily driven by pay-per-click advertisements on mainstream search engines, social media apps, and Amazon and other marketplaces. In addition, we support our primary efforts with influencer created and promoted “UGC” (user-generated content), email automations and newsletters, and website push notifications.

Our wholesale marketing strategy includes traditional sales email and call outreach; attendance at national, international, and regional optical trade shows; optical, athletic, and safety trade advertisements; and B2B mailer and digital mailer campaigns to inform optical businesses about our new releases.

We seek to create memorable experiences and products that resonate with our customers, coupled with premium content and campaigns designed to expand our brand presence and market share across all our target segments. We intend to continue to refine and expand our marketing efforts in 2026 and going forward.

Our influencers

To accelerate brand awareness and product sales, we have implemented an influencer strategy to engage leading figures in sports and the arts, who like and enjoy wearing Lucyd smart glasses. Our influencers promote our products on social media, provide us with product placement opportunities at sporting events and other cultural events, and have granted us contractual rights to use their names and likenesses in connection with the advertisement and sale of our products. We have engaged UK football legend and Olympic athlete Micah Richards as our lead brand ambassador. The Company also regularly engages popular influencers on TikTok and Instagram to promote its products, and envisions TikTok will become a significant e-commerce channel in the future. We plan to add additional influencers in the future to enhance awareness and sell-through for a number of key demographics.

Intellectual Property

Our current U.S. and foreign patent portfolio is as listed below.

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Registered and Pending Patent Applications Owned by Innovative Eyewear, Inc.

App/Patent Number
Title
Country
Filing Date
Status
Grant Date

10,908,419
Smartglasses and Methods and Systems for Using Artificial Intelligence to Control Mobile Devices Used for Displaying and Presenting Tasks and Applications and Enhancing Presentation and Display of Augmented Reality Information
U.S.
June 28, 2018
Issued
February 2, 2021

D899,493
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D900,203
Smart Glasses
U.S.
March 22, 2019
Issued
October 27, 2020

D899,494
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D899,495
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D899,496
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D900,204
Smart Glasses
U.S.
March 22, 2019
Issued
October 27, 2020

D900,205
Smart Glasses
U.S.
March 22, 2019
Issued
October 27, 2020

D900,920
Smart Glasses
U.S.
March 22, 2019
Issued
November 3, 2020

D900,206
Smart Glasses
U.S.
March 22, 2019
Issued
October 27, 2020

D899,497
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D899,498
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D899,499
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D899,500
Smart Glasses
U.S.
March 22, 2019
Issued
October 20, 2020

D954,135
Round Smartglasses Having Flat Connector Hinges
U.S.
December 12, 2019
Issued
June 7, 2022

D958,234
Round Smartglasses Having Pivot Connector Hinges
U.S.
December 12, 2019
Issued
July 19, 2022

D955,467
Sport Smartglasses Having Flat Connector Hinges
U.S.
December 12, 2019
Issued
June 21, 2022

D954,136
Smartglasses Having Pivot Connector Hinges
U.S.
December 12, 2019
Issued
June 7, 2022

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App/Patent Number
Title
Country
Filing Date
Status
Grant Date

62/941,466
Wireless Smartglasses with Quick Connect Front Frames
U.S.
November 27, 2019
Non-Provisional Application filed on November 25, 2020; U.S. App. No. 17/104,849
n/a

D954,137
Flat Connector Hinges for Smartglasses Temples
U.S.
December 19, 2019
Issued
June 7, 2022

D974,456
Pivot Hinges and Smartglasses Temples
U.S.
December 19, 2019
Issued
January 3, 2023

11,282,523
Voice Assistant Management
U.S.
March 25, 2020
Issued
March 22, 2022

D1,010,718
Wayfarer Smartglasses
U.S.
July 20, 2020
Issued
January 9, 2024

D951,334
Round Smartglasses
U.S.
July 20, 2020
Issued
May 10, 2022

12,216,341
Wireless Smartglasses with Quick Connect Front Frames
U.S.
November 25, 2020
Issued
February 4, 2025

D1,013,765
Smartglasses
U.S.
September 1, 2021
Issued
February 6, 2024

D1,030,851
Smartglasses
U.S.
September 1, 2021
Issued
June 11, 2024

D1,030,852
Smartglasses
U.S.
September 1, 2021
Issued
June 11, 2024

D1,030,853
Smartglasses
U.S.
September 1, 2021
Issued
June 11, 2024

207516
Smartglasses
Canada
October 29, 2021
Issued
May 17, 2023

207517
Smartglasses
Canada
October 29, 2021
Issued
May 23, 2023

207518
Smartglasses
Canada
October 29, 2021
Issued
May 23, 2023

207519
Smartglasses
Canada
October 29, 2021
Issued
May 23, 2023

29/814,016
Safety Smartglasses
U.S.
November 2, 2021
Pending
n/a

D1,051,978
Safety Shields
U.S.
November 2, 2021
Issued
November 19, 2024

63/274,920
Safety Glasses
U.S.
November 2, 2021
Non-Provisional Application filed on October 21, 2022; U.S. App. No. 18/048,715
n/a

207956
Safety Smartglasses
Canada
November 17, 2021
Issued
May 23, 2023

207957
Safety Shields
Canada
November 17, 2021
Issued
May 30, 2023

2021307950576
Safety Smartglasses
China
December 2, 2021
Issued
March 26, 2024

ZL 2021307955902

Safety Shields

China
December 2, 2021
Issued
May 3, 2022

12

App/Patent Number
Title
Country
Filing Date
Status
Grant Date

18/048,715
Safety Glasses
U.S.
October 21, 2022

Pending

n/a

3180624

Safety Glasses
Canada
November 1, 2022
Pending
n/a

202211367067X
Safety Glasses
China
November 2, 2022
Pending / published
n/a

42023078694.9 / 40089894
Safety Glasses
Hong Kong
September 5, 2023
Pending / published
n/a

D1,051,829
Charging Cradle
U.S.
November 10, 2021
Issued
November 19, 2024

63/297,056
Charging Cradle for Smartglasses
U.S.
January 6, 2022
Non-Provisional Application filed on December 29, 2022; U.S. App. No. 18/147,002
n/a

212589
Charging Cradle
Canada
May 9, 2022
Issued
February 27, 2024

ZL 2022302715131
Charging Cradle
China
May 10, 2022
Issued
October 21, 2022

18/147,002
Charging Cradle for Smartglasses
U.S.
December 27, 2022
Pending
n/a

D1,020,849

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,019,750

Smartglasses
U.S.
February 9, 2023
Issued
March 26, 2024

D1,020,850

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,019,746
Smartglasses
U.S.
February 9, 2023
Issued
March 26, 2024

D1,020,851

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,024,177
Smartglasses
U.S.
February 9, 2023
Issued
April 23, 2024

D1,020,863

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,852

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,853

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,854

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,855

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,856

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,020,857

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

13

App/Patent Number
Title
Country
Filing Date
Status
Grant Date

D1,020,858

Smartglasses
U.S.
February 9, 2023
Issued
April 2, 2024

D1,023,123
Smartglasses Temples
U.S.
February 13, 2023
Issued
April 16, 2024

18/189,547
System, Apparatus, and Method For Using a Chatbot
U.S.
March 24, 2023
Pending
n/a

18/463,465
Spring-loaded Hinges For Smartglasses
U.S.
September 8, 2023
Pending
n/a

D1,112,452
SAFETY EYEWEAR
U.S.
March 1, 2024
Granted
February 10, 2026

18/605,092
SMART EYEWEAR HAVING ACCESSIBLE TACTILE CONTROLS
U.S.
March 14, 2024
Pending
n/a

PCT/US24/20715
SYSTEM, APPARATUS, AND METHOD FOR USING A CHATBOT
PCT
March 20, 2024
Pending
n/a

BR 302024004471-2
SAFETY EYEWEAR
Brazil
August 28, 2024
Pending
n/a

MX/f/2024/002575 / 74890
SAFETY EYEWEAR
Mexico
August 28, 2024
Pending
n/a

PCT/US25/15969
Smart Eyewear Having Accessible Tactile Controls
PCT
February 14, 2025
Pending
n/a

19/273,052
SMARTGLASSES DEVICE WITH INTEGRATED RF AND WIRELESS COMMUNICATION CAPABILITIES AND COMPATIBLE SOFTWARE APPLICATION INTERFACE
US
July 17, 2025
Pending
n/a

3286829
SYSTEM, APPARATUS, AND METHOD FOR USING A CHATBOT
Canada
September 22, 2025
Pending
n/a

EP24781569.9
SYSTEM, APPARATUS, AND METHOD FOR USING A CHATBOT
EP
October 22, 2025
Pending
n/a

19/413,264
APPARATUS, SYSTEMS AND METHODS FOR INTEGRATING GENERATIVE ARTIFICIAL INTELLIGENCE (AI) CHATBOTS IN HEARABLES
US
December 9, 2025
Pending
n/a

14

Registered Patent Applications Licensed from Ingeniospec, LLC

App/Patent Number
Title
Country

7,192,136
Tethered Electrical Components for Eyeglasses
U.S.

7,255,437
Eyeglasses with Activity Monitoring
U.S.

7,380,936
Eyeglasses with a Clock or Other Electrical Component
U.S.

7,401,918
Eyeglasses with Activity Monitoring
U.S.

7,438,410
Tethered Electrical Components for Eyeglasses
U.S.

7,481,531
Eyeglasses with User Monitoring
U.S.

7,500,746
Eyewear with Radiation Detection System
U.S.

7,500,747
Eyeglasses with Electrical Components
U.S.

7,581,833
Eyewear Supporting After-Market Electrical Components
U.S.

7,621,634
Tethered Electrical Components for Eyeglasses
U.S.

7,677,723
Eyeglasses with a Heart Rate Monitor
U.S.

7,771,046
Eyewear with Monitoring Capability
U.S.

7,792,552
Eyeglasses for Wireless Communications
U.S.

8,109,629
Eyewear Supporting Electrical Components and Apparatus Therefor
U.S.

8,337,013
Eyeglasses with RFID Tags or with a Strap
U.S.

8,430,507
Eyewear with Touch-Sensitive Input Surface
U.S.

8,434,863
Eyeglasses with a Printed Circuit Board
U.S.

8,465,151
Eyewear with Multi-Part Temple for Supporting One or More Electrical Components
U.S.

8,500,271
Eyewear Supporting After-Market Electrical Components
U.S.

8,770,742
Eyewear with Radiation Detection System
U.S.

8,905,542
Eyewear Supporting Bone Conducting Speaker
U.S.

9,033,493
Eyewear Supporting Electrical Components and Apparatus Therefor
U.S.

9,488,520
Eyewear with Radiation Detection System
U.S.

9,547,184
Eyewear Supporting Embedded Electronic Components
U.S.

9,690,121
Eyewear Supporting One or More Electrical Components
U.S.

10,060,790
Eyewear with Radiation Detection System
U.S.

10,061,144
Eyewear Supporting Embedded Electronic Components
U.S.

10,310,296
Eyewear with Printed Circuit Board
U.S.

10,330,956
Eyewear Supporting Electrical Components and Apparatus Therefor
U.S.

10,345,625
Eyewear with Touch-Sensitive Input Surface
U.S.

10,359,311
Eyewear with Radiation Detection System
U.S.

10,539,459
Eyewear with Detection System
U.S.

11,086,147
Eyewear Supporting Electrical Components and Apparatus Therefor
U.S.

11,204,512
Eyewear Supporting Embedded and Tethered Electronic Components
U.S.

11,243,416
Eyewear Supporting Embedded Electronic Components
U.S.

11,326,941
Eyewear with Detection System
U.S.

15

App/Patent Number
Title
Country

11,513,371
Eyewear with Printed Circuit Board Supporting Messages
U.S.

11,536,988
Eyewear Supporting Embedded Electronic Components for Audio Support
U.S.

11,630,331
Eyewear with Touch-Sensitive Input Surface
U.S.

11,644,361
Eyewear with Detection System
U.S.

11,644,693
Wearable Audio System Supporting Enhanced Hearing Support
U.S.

11,733,549
Eyewear Having Removable Temples That Support Electrical Components
U.S.

11,762,224
Eyewear Having Extended Endpieces to Support Electrical Components
U.S.

11,803,069
Eyewear with Connection Region
U.S.

11,829,518
Head-worn Device with Connection Region
U.S.

ZL
200510067143.5
Radiation Detection System for Eyewear and Other Products
China

Registered Trademarks and Applications:

Trademark

Trademark Number

Status

Jurisdiction

LUCYD

UK00003258030

Registered

UK

Lucyd Lens

UK00003258093

Registered

UK

Lucyd Loud

UK00003400531

Registered

UK

Upgrade your eyewear

UK00003400579

Registered

UK

GaaS

UK00003451728

Registered

UK

Vyrb

UK00003477240

Registered

UK

Lyte

UK00003526151

Registered

UK

Upgrade your eyewear

90407646

Registered

US

LUCYD

90407723

Registered

US

Lyte

90381051

Registered

US

Lucyd Armor

98758973

Pending

US

LUCYD LOUD

18845889

Registered

EU

LUCYD

18846419

Registered

EU

LUCYD

UK00003886937

Registered

UK

LUCYD

International Reg. No. 1738602

Examination

Mexico

LUCYD

International Reg. No. 1738602

Examination

Canada

LUCYD

International Reg. No. 1738602

Registered

Japan

AERO

99349186

Pending

US

Lucyd Aero

99349223

Pending

US

Human Capital

Our employees’ knowledge and personality attributes enable our company to achieve its goals, develop our business, and remain innovative. As of December 31, 2025, we had 13 full time employees, spread over business development, marketing, finance, sales, app design, support, and frame design. Our employees are supported by numerous consultants, contractors, independent sales representatives, and third-party service providers. Overall, we believe that our relationship with our employees is good. None of our employees are represented by a labor union.

Other Information

Our official Internet website is www.lucyd.co, through which we make available free of charge our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements on Schedule 14A, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such materials with, or furnish them to, the Securities and Exchange Commission (the “SEC”). Alternatively, you may also access our reports at the SEC’s website at www.sec.gov.

16