NASDAQ: VUZI

Our waveguide optics and display engines are designed to support key attributes valued in see-through wearable displays, including high contrast and brightness for a range of lighting conditions; power efficiency intended to support longer operating time; compact, lightweight designs intended to improve comfort and usability; compatibility with prescription lens integration; and reduced forward light leakage (“eye glow”), which can be an important consideration in wearable display products.

In addition to selling Vuzix-branded smart glasses, we provide custom optical display solutions and engineering services for ODMs and OEMs. These customers may use our waveguide technology and display engines to develop integrated, AR-enabled wearable displays for commercial, industrial, defense, and consumer applications. We also maintain in-house waveguide manufacturing capabilities that can support partners seeking a production path for waveguide-based optics.

Through this ODM/OEM strategy, we offer waveguide manufacturing processes intended to support scalable production and cost-competitive configurable display engine and waveguide solutions aligned to partner requirements; and reference designs that may be adapted and branded by ODM and OEM customers.

We have built an intellectual property portfolio over more than 28 years in wearable display technology, including patents and know-how related to waveguide optics and nano-imprinting, microdisplay engine designs, AR computing interfaces, and ergonomic wearable form factors. We believe our technology and manufacturing capabilities provide competitive differentiation in high-performance wearable display solutions.

We believe compact display engines and waveguide optics are important enablers of next-generation AI- and AR-enabled smart glasses, supporting eyewear-style designs while enabling interactive and connected capabilities. Our primary growth opportunities include enterprise hands-free workflows and remote collaboration; medical use cases such as assisted visualization and telemedicine; defense and security applications including training and situational awareness; and select consumer applications.

To support these markets, we continue to develop and expand our software ecosystem and partner network, including value-added resellers, system integrators, and application developers. We also leverage Moviynt, our internal software solutions development team, to support solution development and customer deployments.

Our History

Historically, we have served three primary markets: (i) enterprise smart glasses, (ii) rugged wearable display products for defense applications, and (iii) select consumer uses including VR, entertainment, and mobile video. We introduced our first head-mounted display (“HMD”) products more than 28 years ago and have since offered multiple product generations with progressively expanded features and capabilities across these markets. As near-eye display technology matured, we shifted our focus away from VR and video viewers toward enterprise smart glasses, leveraging our waveguide optics and available microdisplays to develop lightweight, hands-free wearable computing solutions designed for eyewear-style form factors suitable for extended wear.

Overall Strategy

Our goal is to establish and maintain a competitive position as a worldwide supplier of waveguides for AI/AR smart glasses and wearable smart displays for both our products and third-party ODMs and OEMs. We seek to advance the design of smart wearable display devices and waveguide optics that can enable hands-free enterprise productivity applications such as, “see-what-I-see” remote viewing, and AI and AR applications. We seek to generate revenue and ultimately profitable growth through the continued introduction of new technologies, including AI/AR smart glasses, waveguides and display engines, and related software applications.

To strengthen our position in wearable display products for AI/AR and hands-free computing, as well as waveguides and display engines for OEMs and ODMs, we seek to:

●develop innovative products based on our technology for enterprise, medical, and defense and security markets;

●expand waveguide production and optimization by improving manufacturing efficiency, reducing costs, and maintaining proprietary process protections;

●establish mass production and supply partnerships with ODMs/OEMs to support adoption and sale of next-generation AI/AR smart glasses and wearable computing solutions;

●offer waveguide products as standard or custom solutions to meet customer design requirements;

●expand licensing and technology partnerships enabling third parties to incorporate and white-label our smart glasses and optical technologies;

●develop microdisplay engine products utilizing available third-party displays;

●expand our technology and product capabilities;

●support third-party and in-house software development for our products, including distribution of applications through our sales and distribution channels;

●enhance and protect our intellectual property portfolio;

●leverage third-party technology and strategic relationships; and

●attract and retain qualified personnel.

We believe the continued introduction of new products and related optical components in our target markets is important to our growth. Our products tend to have life cycles of less than five years, which requires ongoing investment in research and development and next-generation product evolution. To support this work, we maintain teams of engineers, product designers, and optical specialists who work in-house and with external consultants, ODM/OEM partners, and other technology developers.

Our primary development efforts are focused on:

●waveguide optics and scalable manufacturing processes to improve optical performance, manufacturability, brightness, clarity, and cost efficiency for higher-volume production;

●projection and microdisplay engines;

●industrial design and user experience optimization;

●electronic designs that reduce power consumption, extend battery life, and enable lightweight, ergonomic wearable displays; and

●embedded firmware and AI-enabled software to support AR visualization, voice interaction, real-time translation, and contextual information overlays.

We expect to continue our research and development expenditures in the future and may increase them as revenues grow. In addition to in-house development, we evaluate, acquire, and license technologies that align with our roadmap.

The Market

The mobile phone has evolved into a powerful, location-aware computing device, reshaping how people interact with the world. Mobile technology is widely used in work and daily life. Continued growth in mobile computing is increasing demand for hands-free solutions. We believe interactive AI and AR content, edge computing, and the internet of things (“IoT”) will continue to influence how digital content and intelligence is delivered and experienced through head-worn displays.

Most mobile displays are direct-view screens designed to be handheld and relatively small for portability. Our products are designed to provide hands-free, virtual large-screen viewing experiences in eyewear-style form factors. These systems may be “see-through” or “see-around,” allowing users to remain aware of and interact with their surroundings, and may be monocular or binocular.

Our business has primarily focused on the enterprise, industrial, medical, and defense markets. We believe demand for head-worn displays in these markets is driven by:

●continued growth in mobile computing;

●rapid adoption of AI;

●increasing use of AR/AI applications in workflows where hands-free access to information can improve efficiency and safety; and

●expansion of IoT and connected devices that increase the value of timely, real-time data for productivity and decision-making.

Target Markets

Vuzix develops AI- and AR-enabled smart glasses and optical components for enterprise, defense, medical, security, and select consumer applications. Our wearable computing solutions, waveguides, and display engines also support ODM and OEM partnerships, enabling third parties to incorporate our technologies into their products.

Enterprise

Vuzix smart glasses support hands-free workflows in industries such as manufacturing, logistics, and field service by enabling access to guided work instructions, remote assistance, and real-time data without requiring handheld devices. When integrated with enterprise software and connected systems, smart glasses can improve workflow execution in environments where hands-free operation supports efficiency and safety.

Defense

Vuzix designs and supplies domestically manufactured waveguides and display engines for military applications where see-through displays may be used in training, situational awareness, and mission workflows. As defense programs incorporating wearable displays progress through development and fielding phases, we believe there may be opportunities for growth in this sector.

Medical

Vuzix smart glasses can support remote collaboration, hands-free access to information, and telemedicine workflows in clinical and care settings. In certain procedures and care environments, smart glasses may also be used to support visualization, training, and remote consultation.

Security & First Responders

Law enforcement, security teams, and emergency responders may use smart glasses for hands-free access to alerts and situational information, as well as video capture and streaming. These capabilities can support operational awareness and documentation in time-sensitive environments.

Consumer

AI-enabled smart glasses may support hands-free access to functions such as language translation, navigation, health-related applications, and notifications. We believe Vuzix may participate in select consumer opportunities primarily through ODM/OEM partnerships that enable brands to introduce AI-enabled smart eyewear products.

Products

We develop, manufacture, and sell AI- and AR-enabled smart glasses, waveguide optics, and related display engines for our target markets. Our smart glasses lineup includes both monocular and binocular models intended to address a range of use cases and deployment requirements. Additionally, our waveguide optics and display engines support both Vuzix-branded products and external ODM/OEM customers.

M400 and M4000 Smart Glasses (M Series)

The M400 and M4000 are monocular Smart Glasses designed for enterprise, industrial, medical, and commercial use. The M400 features an occluded nHD OLED display, while the M4000 incorporates a see-through waveguide display to support see-through display use cases. These hands-free wearable products integrate an Android-based computing platform, voice control, high-resolution camera, audio, sensors, and wireless connectivity. Included

apps enable video streaming, barcode scanning, and calendar integration, with optional connectors for platforms like Zoom. These Smart Glasses are used in workflows across industries such as healthcare, logistics, retail, and remote support.

Vuzix Blade® Smart Glasses

The Blade 2 combines a monocular full color waveguide display with a lightweight eyeglasses-style form factor. It features stereo audio, an autofocus HD camera, voice control, wireless connectivity, and a CPU. The see-through waveguide display projects information like a heads-up display, making it useful for applications such as messaging, notifications, navigation, work instructions, and other information overlays. The Blade OS supports voice commands and cloud-based AI platforms, allowing users to access information hands-free while keeping their phones in their pockets.

Vuzix Shield™ Smart Glasses

The Shield is our first binocular AR Smart Glasses featuring microLED displays. Designed for enterprise applications, it offers a binocular, see-through display architecture. The Shield combines Vuzix’ proprietary waveguide optics with microLED stereo displays to deliver a fully transparent, high-resolution heads-up display. Encased in lightweight, prescription-ready safety glasses, it also includes stereo HD cameras, making it a hands-free AR tool for various industries.

Vuzix Ultralite Z100 Smart Glasses

The Z100 Smart Glasses are a lightweight, enterprise-focused solution that pairs via Bluetooth with Android and iOS devices. Designed for extended wear, they provide a transparent monochrome waveguide display powered by a custom microdisplay engine. With up to a two-day extended battery life, they deliver information hands-free, support notifications and workflow information access. The Z100 also serves as a scalable white-label platform for ODM/OEM partners and enterprise customization.

Vuzix Ultralite Pro and Ultralite Audio OEM Platforms

At the CES 2025 trade show, we introduced the Ultralite Pro OEM Platform and Ultralite Audio OEM Platform, two smart glasses reference designs developed in partnership with Quanta Computer. These models expand the Company’s portfolio for ODM and OEM smart glasses customers and are intended to serve as reference platforms that may be adapted and branded by partners.

The Ultralite Pro combines dual full-color projectors with our ultra-slim binocular waveguide optics to deliver a see-through AR experience in a stylish, lightweight eyewear-style form factor. The platform supports immersive applications for hands-free productivity.

The Ultralite Audio OEM Platform builds on the Ultralite Z100 model by adding audio with integrated dual speakers and a noise-canceling microphone. Acting as an intelligent wearable accessory, it offers capabilities such as voice assistants and real-time language translation. These Smart Glasses are a lightweight, enterprise-focused solution that pairs via Bluetooth with Android and iOS devices and can provide up to two days of battery life.

LX1 Smart Glasses

The LX1 smart glasses, first introduced in December 2025, are designed for hands-free warehouse and logistics work. Featuring a monocular OLED color HD display and an 8-core processor, the LX1 supports barcode scanning and the presentation of workflow information such as pick lists, inventory data, and shipment details, including in environments where voice-driven operation may be beneficial. With voice interaction, visual guidance, multilingual onboarding, a modular mount, environmental durability features, NFC tap-to-pair, and a full-shift battery, the LX1 is

designed for extended operation. The LX1 supports enterprise applications, including remote assistance (“see-what-I-see”) workflows, which may be used for training, quality control, and inspections.

Mobilium® Logistics Mobility Software

In 2022, we acquired Moviynt®, which is an SAP Certified ERP platform software solution provider that supports Smart Glasses and handheld mobile phones and scanners used in logistics, warehousing and manufacturing applications. Moviynt has developed a logistics mobility software platform, Mobilium®, which is designed to reduce or eliminate the need for traditional middleware and is device agnostic. The product consists of a certified SAP gateway module, iOS and Android client and mobile apps that run on a wide range of handhelds and wearables and is designed to operate without additional middleware or intermediate servers to process warehouse and logistics-related transactions such as cycle counts and picks and transfers on the shop floor.

Applications for Smart Glasses

We make available standard applications that are compatible with Vuzix Smart Glasses through device-installed software and the Vuzix App Store. Many of these applications are similar to what is available to the customer with modern smart phones. These standard applications are designed to be easy to use, and we believe help demonstrate novice and expert use cases. We also have an app store on our website where users can download and purchase Smart Glasses applications, including third-party apps. We continue to foster the development of an ecosystem of third-party developers to offer applications and demo trials, many of which will be sold on an industry-standard revenue share model, with the publisher generally receiving the majority of the subscription revenue collected.

Vuzix also resells a variety of other applications, including its internally developed “connector” applications, to enable third party applications like Zoom, Teams and others, which provide remote telepresence capabilities, otherwise known as “see-what-I-see” video collaboration and work instructions, amongst other features. These applications may support remote assistance workflows by sharing information between field technicians and remote support experts. In some cases, these applications are offered free to the user and in other cases we charge monthly or annual subscription fees.

We believe our smart glasses products, waveguide technologies, and software ecosystem support hands-free computing use cases across enterprise, healthcare, defense and security, and select consumer markets.

Engineering Services and ODM/OEM Products

Waveguide Optics and Display Engines

We offer waveguide optics and related coupling optics that can be integrated with compact display engines from third parties to form a see-through display module. Waveguide-based display modules require a compatible display engine designed for the intended optical architecture and performance requirements. Our waveguide optical design reference kits, which include display projectors, waveguides, and supporting electronics, are provided to select ODMs and OEMs to facilitate evaluation, prototyping, and product development.

Our waveguide technology, combined with microdisplay projectors, is designed to support performance requirements for see-through wearable displays, including:

• high-brightness, full-color display capability for a range of lighting conditions;

• compact optics intended to support wearable form factors; and

• image clarity and resolution to support AI/AR applications.

We believe our waveguides, when coupled with appropriate third-party display engine technologies, address key performance parameters for next generation AR products. Our strategy for addressing the broader mass market includes developing partnerships with select consumer electronics and software companies, as well as with their ODMs or OEMs. We believe manufacturing scale and being cost-competitve, together with improvements in display engine efficiency, are important factors for broader adoption of waveguide-based smart glasses. The best ways to capitalize on our waveguides include pairing them with full color microdisplays or projectors capable of high brightness across target use environments.

Engineering Services and Related Products

Vuzix provides engineering services and ODM/OEM component solutions to select partners seeking to integrate waveguide optics and wearable display technologies into their products. We focus on developing long-term ODM/OEM relationships, including supply contracts, rather than traditional "work-for-hire" contracts. We have engaged with potential partners across consumer and enterprise markets regarding the use of our waveguide and display technologies. We can offer our ODM/OEM customers support from prototype development to production, including technical consulting, engineering data, and application support. Our business strategy is to commercialize our waveguide technologies and products to enable select ODMs and OEMs to integrate and embed our technologies and products consistent with their capabilities and timeline for bringing products to market.

Vuzix serves defense and security markets with customized waveguide optics and display engine solutions tailored for mission-critical applications. We have provided prototype products and engineering services to defense contractors and integrators evaluating waveguides and display engines for head-mounted systems. These efforts are typically multi-year development programs. We may experience program transitions from development to production over time; however, the timing and scale of any such transitions can be uncertain and are subject to customer funding, program requirements, and procurement decisions. Because Vuzix is a domestic manufacturer of optics and display engines, we believe Vuzix may be well positioned for certain U.S. defense applications where domestic supply is a procurement consideration.

Technology

Investing in research and development is key to maintaining our technology and product capabilities. We aim to continuously enhance our product offerings through internal development and partnerships with third-party suppliers. Our proprietary technologies, including advanced optics, micro-projection display engines, and specialized software, support our product and ODM/OEM offerings. We also leverage trade secrets and nanoimprinting expertise to develop diffractive waveguide optics.

Major core technologies that we employ in our products include:

●See-Through Waveguides:

We hold numerous patents and pending applications for passive, dynamic, and diffractive optics-based waveguides, which enable compact AI/AR Smart Glasses. Our goal is to create AI/AR-based displays that resemble everyday sunglasses in comfort, size, and weight.

Recent advancements include our Incognito™ technology, which minimizes forward light leakage, including in lower-light operating conditions. In addition, our waveguides now support integrated prescription vision correction, allowing users to incorporate their vision prescription into certain configurations while maintaining a natural eyewear appearance. Our production process currently supports prescription ranges of +2D to -8D diopters, with plans to expand further.

●Nanoimprinting:

We continue to refine nanoimprinting techniques to produce ultra-thin waveguides, including waveguides with thicknesses down to approximately 0.35 mm, which may be important for lightweight and eyewear-style Smart Glasses. Our expertise spans tool design, custom grating software, high-index polymers, precision lithography, and automated quality control, supporting high-volume production with optical clarity.

●Microdisplay Optics:

Optical components are a major cost factor in wearable displays. We have developed thin, lightweight optics that integrate with ultra-compact microdisplays, reducing bulk while maintaining high-resolution AR visuals. These innovations are intended to allow our Smart Glasses to resemble traditional eyewear while delivering immersive digital experiences.

●Custom Display Engines:

We are advancing microdisplay projection technology, developing high-brightness, full-color display engines optimized for waveguides. We collaborate with multiple industry partners to deliver both monochrome and full color microdisplay solutions, ensuring power efficiency, clarity, and seamless integration into compact Smart Glasses.

Product Development

Continuous innovation and product expansion drive our growth, with product life cycles typically lasting less than five years. Our team of in-house engineers and external consultants focuses on:

●Waveguide optics and manufacturing;

●Projection engines and microdisplays, including ODM/OEM reference designs and platforms;

●Ergonomic designs and utility;

●Low-power electronics and firmware; and

●Wearable computing software and UI/UX design.

We plan to increase R&D investments as revenues grow and will continue licensing and acquiring technologies to accelerate development. By combining advanced optics, microdisplay technology, and advanced manufacturing, Vuzix remains at the forefront of AI/AR Smart Glasses innovation.

Patents and Other Intellectual Property

We have an intellectual property policy which has as its objectives: (i) the development of new intellectual property to further our position in personal display technology; and (ii) the maintenance and protection of our valuable trade secrets and know-how. We seek to achieve these objectives through the education and training of our engineering staff and the adoption of appropriate systems, policies and procedures for the creation, identification, and protection of intellectual property.

Our general practice is to file patent applications for our technology in the United States, Europe, Japan, and additional countries, including Canada and China, for inventions which we believe have the greatest potential. We file and prosecute our patent applications in pursuit of the most extensive fields of protection possible including, where appropriate, the application of the relevant technology to the broader display industry.

We believe that our intellectual property portfolio, coupled with our supplier relationships and accumulated experience in the near-eye display field, gives us an advantage over potential competitors. We also believe our copyrights, trademarks, and patents are critical to our success and we intend to maintain and protect these. We also rely on proprietary technology, trade secrets, and know-how, including manufacturing processes and procedures, which are not patented. To protect our rights in these areas, we require all employees and, where appropriate, contractors, consultants, advisors and collaborators to enter into confidentiality, invention assignment, and non-competition agreements with us.

Our technologies enable us to provide lower cost, small form factor, high resolution wearable display products. To protect our technologies, we have developed a patent portfolio which currently consists of 306 issued U.S. and foreign patents and 202 pending U.S. and foreign patent applications. We are also currently evaluating several invention disclosures for the purposes of submitting design and utility patent applications. Our U.S. and foreign patents expire on various dates with the capacity to remain enforceable through at least March of 2050. In addition to our various patents, we have 10 registered U.S. trademarks and 85 trademark registrations worldwide.

Competitors

The near-eye wearable computer and mobile personal display device industry in which we operate is highly competitive and evolving rapidly. We compete against both direct view display technology in smart phones and tablets and other wearable display technology. We believe that the principal competitive factors in the personal display industry include image size, image quality, image resolution, power efficiency, manufacturing cost, weight and dimension, feature implementation, AI and AR capabilities, ergonomics, style, hands-free capabilities and, lastly, the interactive capabilities of the overall display system.

Competition – Binocular Wearable Display and VR Products

Vuzix AR Smart Glasses competitors include binocular wearable displays and virtual reality systems, using microdisplays or smaller flat panels. Examples of such companies include or have included Carl Zeiss, Seiko Epson (Epson), Sony Corporation, Microsoft Corporation, Apple, Avegant Corp., Meta (formerly Oculus/Facebook), HTC Corporation, Razer Inc., HP, Lenovo, Snap, Xreal, TCL, Huawei and many others. Some of these firms have discontinued their efforts while others continue to introduce new products focused on either video viewers or VR goggles. Despite their size, VR headsets from companies like Meta and Sony have been selling in the millions of units, primarily for game applications. VR systems are either standalone devices or require a wire to be connected to a PC or game console to operate.

Competition – AR Glasses

In the AR or mixed reality (XR) markets, there are currently fewer competitors with much of this market aimed at the high-end user and research markets. Companies with products in this area include or have included Microsoft Corporation, Sony Corporation, Epson, Lenovo, Magic Leap, Snap, Meta, Xreal, TCL, Rokid, and Apple. Today, many of these products have relatively bulky goggle style HMDs and are typically tethered to an external controller. Many of these goggles are using external view cameras to simulate an AR environment where the wearer can see the outside world and most are not currently using see-through waveguide optics.

Competition – Monocular Smart Glasses

The monocular smart glasses segment primarily serves enterprise, industrial, defense and security applications. Competitors include or have included Google (formerly Google Glass), RealWear, Lumus, Kopin, Optinvent, Brother, Garmin, BAE Systems, and Rockwell Collins. We believe that the market opportunity for these products has been limited primarily to pilot program tests and smaller rollouts in enterprise markets rather than broad commercial volume purchases. Although we believe sales of these devices have seen limited large-scale adoption beyond pilot programs, demand is increasing in industries such as healthcare, logistics, security, and field services. Vuzix offers superior form factors, optics, and AI integrations, positioning its products as compelling alternatives.

Several Japanese electronics companies including Hitachi, Murata Manufacturing Co., Sony Corporation, WESTUNITIS, and Olympus announced monocular smart glasses systems for the enterprise market and many have exited the business over the last three years. There are also several China-based companies that have been showing monocular smart glasses products, including Lenovo, but their sales activities thus far have been somewhat limited and focused primarily on Asia. We expect to encounter competition in the future from major consumer electronics companies and suppliers of imaging and information products for defense applications.

There is competition in all types of smart glasses products we manufacture, from both large and small companies. The principal points of competition for these products include price, product performance, the availability of supporting applications, and the experience and brand name of the particular company and history of its dealings in such products. We believe that our monocular products match or exceed the display products currently offered by our competitors.

Competition – Waveguides and Display Engines

The waveguide and display engine market is growing and evolving rapidly as more companies develop AI/AR-enabled smart glasses. Vuzix competes or has competed with such companies as Lumus, Snap’s WaveOptics, Digilens, AAC Technologies’ Dispelix, and multiple emerging Chinese manufacturers such as Goertek, Goolton, Crystal Optech, Optiark, and Xiaomi.

We believe our waveguides provide several competitive advantages including: (i) cost-effective, scalable volume manufacturing; (ii) higher brightness and display clarity with minimal forward light glow (Incognito technology); (iii) thinner, lighter optics with wider field-of-view (FOV); (iv) better light efficiency and durability; and (v) our ability to quickly develop customizable designs for ODM and OEM customers.

Sales and Marketing

Sales

We sell our products and components globally through a mix of direct sales, value-added resellers (VARs), distributors, and select ODM and OEM partnerships. Our sales strategy varies based on the market segment and customer type.

In the Smart Glasses and AI/AR markets, our primary focus is on the enterprise sector, where we collaborate with software firms and resellers to support industry-specific applications. We maintain a VAR network across key verticals such as warehousing, field service, and healthcare, enabling these partners to provide tailored software and support solutions. Our subsidiary, Moviynt, provides software solutions to support Smart Glasses and handheld scanning devices in logistics. Additionally, our in-house sales team manages key enterprise accounts and distributors, and we sell direct via online stores and various Vuzix operated web stores in the U.S., Europe and Japan. For our Smart Glasses, we continue to foster an ecosystem with application developers from around the world. We also have our own hosted application store where our Smart Glasses customers can download and purchase applications and software developer kits.

We also sell our products internationally, mainly in Japan and Europe. In Japan, we have a branch sales and service office and a small warehouse. We had maintained through most of 2024, small European sales offices in Oxford, England and Munich, Germany, but have since closed these locations and instead use remote full-time sales consultants or employees within Europe. For warehousing, we have contracted with a third-party fulfillment center based in the Netherlands to service our customers in EMEA. We also currently serve other APAC customers through our North American (West Coast) and Tokyo sales offices.

For customer support for the Americas and EMEA, we have contracted with a third-party end-user technical support firm that provides customer and technical support 16 hours a day.

For our ODM and OEM customers, we primarily supply waveguides, display engines, and Smart Glasses platforms for integration into branded products. These ODM/OEM customer partnerships typically involve design cycles of 6 to 24 months, depending on product complexity. Given the technical nature of these components, our sales, technical, and executive teams work closely with customers throughout the evaluation and integration process.

To strengthen relationships and gain market insights, our teams regularly engage with customers worldwide and participate in key industry trade shows and conferences.

Marketing

Our marketing efforts focus on brand awareness, lead generation, and industry engagement. Our marketing and sales teams, along with external agencies, manage product positioning, advertising, PR, and marketing communications. We also employ marketing services firms to help prepare brochures, packaging, tradeshow messaging and advertising campaigns, focused on customers in our target markets. Most of our finished products today are currently sold under the Vuzix brand name. We currently undertake specific marketing activities as needed, including, but not limited to:

●product reviews, case studies and promotions in relevant trade publications;

●white papers, targeted emails and customer success stories;

●social media, website content, and targeted digital advertising;

●public relations and media outreach; and

●trade shows and industry conferences.

We use strategic marketing efforts to drive awareness and adoption of Vuzix Smart Glasses, waveguides, and white-label display solutions. Public relations and product videos remain a key part of our outreach, and we continue to provide product samples to key industry influencers.

Manufacturing

We manufacture our products using a combination of in-house production and third-party contract manufacturing services. We procure components from suppliers, use contract manufacturers for electronic circuit board and cable assemblies, and perform final product assembly at our West Henrietta, New York facility. This facility enables efficient, cost-effective production, with the capability to manufacture thousands of units annually. We are experienced in the successful production of our products in moderate volumes. We believe that maintaining production in-house at our current volume levels provides better cost control, quality assurance, and operational flexibility compared to outsourcing to third parties.

Vuzix manufactures all its waveguide optics in a dedicated, state-of-the-art cleanroom facility adjacent to our headquarters in West Henrietta, New York. This facility can support high-volume production, at reduced manufacturing costs, and allows us to implement advanced waveguide processing techniques for next-generation designs. For the foreseeable future, all waveguide manufacturing will remain at this facility.

In April 2025, Vuzix acquired an advanced waveguide R&D facility in Milpitas, California. The facility, previously operated by a global technology leader known for its extensive work in software, AI, and augmented reality, now serves as a key waveguide tools development and innovation hub for Vuzix and its ODM/OEM customers’ next-generation AI-driven smart glasses. The facility, which features state-of-the-art equipment, includes an advanced ion milling machine, which offers superior precision, advanced tool development capabilities, and batch-processing, enables Vuzix to further innovate and scale its waveguide development capabilities, a critical component for next-generation AI/AR smart glasses.

We evaluate contract manufacturers and component suppliers on an ongoing basis, including whether or not to utilize new or alternative contract manufacturers or component suppliers and will be working with our investor and partner Quanta Computer to potentially provide such services, among others. The new LX1 is our first smart glasses product to be made by them for us.

We currently source microdisplays from Sony Corporation, Jade Bird Display, and Texas Instruments and regularly and actively evaluate new suppliers of compact display engines to enhance AI/AR Smart Glasses performance. Our relationship with these microdisplay suppliers is generally on a purchase order basis and none have a contractual obligation to provide adequate supply or acceptable pricing to us on a long-term basis, nor do we have any contractual obligation to purchase microdisplays from them. We generally procure our other non-microdisplay components and products from our vendors on a purchase order basis without any long-term commitments. Many of the raw components used in our products are standard for the consumer electronics and computer industry. We provide forecasts that can allow our contract manufacturers to stock component parts and other materials and plan capacity. Our contract manufacturers procure raw materials in volumes consistent with our forecasts, manufacture and/or assemble the products and perform tests according to our specifications. In some cases, we procure specific components and either sell them or consign them to our contract manufacturers.

While we do not manufacture our raw components, other than waveguides, we do own the tooling that is used to make our custom components. Most of such tooling is located in China. Some of our accessory products are sourced from third parties as finished goods. We typically have them print our Vuzix brand name on these products if they are co-branded. Such third-party products represented less than 3% of our sales in the last three fiscal years.

Our manufacturing is not currently subject to seasonal variations, but in the future, depending upon our customers’ product mix, we may be affected by seasonal fluctuations which could affect working capital demands.

Backlog

There is a relatively short cycle between order and shipment of our product sales. Most purchase orders we receive are subject to rescheduling or cancellation by the customer with no or limited penalties. With regard to sales of custom products and waveguides to our ODM/OEM customers, we believe that the backlog metric is currently of limited utility in predicting future sales because all these ODM/OEM customers operate on a ship-to-order basis. Therefore, we believe at this time that backlog information is not material to the understanding of our business.

Human Capital

As of December 31, 2025, the Company had 88 full-time employees and contractors globally.The Company is committed to attracting, developing, and retaining talent to enable our strategic vision. This commitment directly shapes our approach to fostering a culture of inclusion and ensuring employees can reach their potential. We believe that our strong Company culture is a key enabler of our success. The values of accountability, integrity, teamwork, agility, and innovation are central to our culture and how we operate and work together. We take proactive steps to ensure that this culture continues to permeate throughout our organization. We consider our relations with our employees to be very good. In addition, we believe our compensation structure aligns with our stockholders’ long-term interests and reflects the Company’s commitment to pay for performance.

Available Information

We make available free of charge through our website, www.vuzix.com, our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and our proxy statements and other reports that we file or furnish with the SEC as soon as reasonably practicable after they are filed or furnished, as well as certain of our corporate governance policies, including the charters for the Board of Directors’ audit, compensation, and nominating committees and our code of ethics, corporate governance guidelines and whistleblower policy. We will also provide to any person without charge, upon request, a copy of any of the foregoing materials. Any such request must be made in writing to us, c/o Investor Relations, Vuzix Corporation, 25 Hendrix Road, West Henrietta, NY, 14586.

Information about Geographic Revenue

Information about geographic revenue is described in Note 17, “Geographic and Other Financial Information” in the notes to our consolidated financial statements.

History - Corporate

We were incorporated in Delaware in 1997 as VR Acquisition Corp. In 1997, we acquired substantially all the assets of Forte Technologies, Inc. (Forte), which was engaged in the manufacture and sale of Virtual Reality headsets and the development of related technologies. Forte was originally owned and controlled by Kopin Corporation, one of our prior microdisplay suppliers. Most of the technologies developed by Forte are now owned and used by us.

Reference in this report to “Vuzix”, the “Company”, “we,” “us,” “our” and similar words refer to Vuzix Corporation and its wholly-owned subsidiary.