Slide 1: 4Q & FY2023 Earnings Presentation
4Q & FY2023 EARNINGS PRESENTATION APRIL 15, 2024 1
Slide 2: Cautionary Note Regarding Forward Looking Statements
Cautionary Note Regarding Forward Looking Statements Certain statements included in this presentation may be considered forward-looking. All statements in this presentation that are not historical facts are forward-looking statements. Such statements involve known and unknown risks, uncertainties an
Slide 3: Call Participants and Agenda
Call Participants and Agenda Participants Agenda Paul Travers ➢ Introduction President and CEO ➢ Business review Grant Russell ➢ Financial review CFO and Executive Vice President Ed McGregor ➢ Q&A Director of Investor Relations 3
Slide 4: Opening Remarks
Opening Remarks ➢ Cost cutting initiatives will extend financial runway, improve margins and refocus efforts ➢ There are increasing signs that wearables adoption is finally starting to increase ➢ The advancement of our core products and technologies is becoming more evident ➢ 375+ patents and patent
Slide 5: Z100 AR Smart Glasses
Z100 AR Smart Glasses ➢ 48+ hours on a single charge ➢ Just 38 grams – standard eyeglasses weight ➢ For enterprise users, Z100 represents the first attractive, functional bridge between AI platform tools and human workers ➢ For the broad market, the Z100 is a better solution for a massive transferab
Slide 6: Waveguides
Waveguides ➢ Mega factory can quickly ramp production ➢ INCOGNITO virtually eliminates eye glow ➢ Prescription-based waveguides ➢ Ophthalmic Advisory Board 7
Slide 7: MicroLEDs - Atomistic
MicroLEDs - Atomistic ➢ ~$30 million invested over past 24 months ➢ Atomistic has made great progress to date, achieving 6 of 10 milestones ➢ Progress expected to accelerate over the coming months with increased production of test samples and refinement of initial designs ➢ Started to engage with se
Slide 8: Business Outlook
Business Outlook ➢ The list of SG use cases keeps growing as the enterprise industry matures ➢ Entering 2024 with a solid pipeline of smart glasses and OEM opportunities ➢ Multiple third-party ISVs and Moviynt planning to enable AI through use of Vuzix smart glasses ➢ Ongoing discussions with multip
Slide 9: FY2023 Operating Results
FY2023 Operating Results 2023 2022 % Change Product Sales $10.76M $10.51M +2% Eng Serv Sales $1.37M $1.33M +3% Total Sales $12.13M $11.84M +2% Gross Profit* $1.72M $1.97M -13% Gross Margin* 14.2% 16.6% -14% Operating (Loss) $(50.15)M $(40.76)M -23% EPS (Loss) $(0.79) $(0.64) -23% * Prior to Inventor
Slide 10: Balance Sheet Highlights
Balance Sheet Highlights 12/31/2023 12/31/2022 Cash $26.6M $72.6M Current Assets $41.5M $90.6M Working Capital $36.3M $75.3M Long-Term Debt 0 0 Shareholder Equity $80.8M $115.5M 13
Slide 11: Additional Financial Comments
Additional Financial Comments ➢ Further cost reduction actions planned: ✓ Further operating cost reductions and headcount freezes to further right-size costs ✓ Delay or curtail discretionary and non-essential capital expenditures not related to near-term new products and R&D ✓ Implementation of a vo
Slide 12: Q&A
Q&A