Post on 28-May-2020
Corporate OverviewMay 2015
Paul TraversPresident
Vuzix Corp.NASDAQ: VUZI
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 and other factors that may cause actual
results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not
be taken as guarantees of future performance or results. We may use words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “could,”
“seeks,” “estimates,” and variations of such words and similar expressions in identifying forward-looking statements. The forward-looking
statements include statements concerning: our possible or assumed future results of operations; our possible or assumed future results of
operations; our business strategies; our ability to attract and retain customers; our ability to sell additional products and services to customers; our
cash needs and financing plans; our competitive position; our industry environment; our potential growth opportunities; expected technological
advances by us or by third parties and our ability to leverage them; the effects of future regulation; and the effects of competition. These statements
are based on our management’s beliefs and assumptions and on information currently available to our management. It is important to note that
forward-looking statements are not guarantees of future performance, and that our actual results could differ materially from those set forth in any
forward-looking statements. Due to risks and uncertainties, actual events may differ materially from current expectations. For a more in depth
discussion of these and other factors that could cause actual results to differ from those contained in forward-looking statements, see the
discussions under the heading "Risk Factors" in the Company’s annual report on Form 10-K filed by Vuzix Corporation and other documents the
Company’s files from time to time with the SEC. Vuzix disclaims any intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise, except as required by law.
NASDAQ: VUZI2
Vuzix Background
● Founded 1997
- Worldwide operations
● Leading supplier of Wearable display technology
- Initial focus US Defense markets
● Cornerstone IP and Patent Portfolio
- 41 patents and 10 patents pending
● Employees
- 38 total with 17 engineering staff
● Award-winning Technology and Design
- Immersive Viewing, Virtual and Augmented Reality, Smart Glasses
● Revolutionary Wearable Display Products for Enterprise and Consumer
- Smart Glasses for Mobility and Video headphones
● Major Shareholders
- Intel Corporation – 24%
- Management – CEO & CFO – 22%
NASDAQ: VUZI3
Wearable Technology – The Revolution is Just Beginning
The market opportunity will be huge:
● ABI Research forecasts the wearable computing device market will grow to 485 million annual device shipments by 2018
● More than 75 million of these will be wearable display or Smart Glasses, market >$15 billion
Enterprise to adopt First
● Enterprise market for wearables to surpass consumer market, predicts Deloitte’s Consulting
● Good ROIs can be demonstrated in enterprise (productivity of hands free and information access)
● There are millions of field service, warehouse, maintenance and other enterprise users that will benefit from hands free smart glass solutions
● For Vuzix: Higher gross margins, and less competition
● More open Blue Oceans by not focusing on consumer withmonocular products
NASDAQ: VUZI4
Vuzix M100 Smart Glasses Features – Focused on Enterprise
● Hands-free wearable display, computing & communications platform
● Digital see-through display with 1080p camera
● Earbud & microphone
● Inertial sensors, compass & GPS
● Voice recognition, gesture recognition
● WiFi & Bluetooth
● Safety and prescription glasses mountable
● Based on Android and now Running OS 2.0with iOS and Android compatibility
● Runs thousands of Android apps
● Vuzix App store launched in Dec. 2014
NASDAQ: VUZI5
Vuzix M100 Smart Glasses Multiple Mounting Options
With support for safety and prescription
Enterprise Applications for Smart Glasses and Augmented Reality
NASDAQ: VUZI7
Real Time, Hands Free, Info on Tap, Image/Video Capture, Scan Code Reading and More…
Vuzix Partners are Some of the Largest Companies in the World
● Intel $25M investment, Lenovo China distribution, SAP for Enterprise
NASDAQ: VUZI8
A Growing List of Industry Leading Customers & Partners
Beginning the Move from Initial Trials to Rolling out Programs
NASDAQ: VUZI9
Examples in field service, warehousing, manufacturing and more….
DHL & RICOH
Vision Picking in Logistics
24,000 parts picked with 25% improvement in efficiency over previous picking methods
NASDAQ: VUZI10
Confidential 12 NASDAQ:VUZI
Vuzix M100 Smart Glasses Upgrades Coming
Hardware
• Camera (new faster and better focus)
• Improving audio path circuit
• Adding speaker jack
• Removing SD slot
• 16 gig flash and 32 gig flash now built in
• Optional Thermal Camera (M150)
Software (OS 2.3 Just released)
• Noise cancelling being enabled
• Gesture (Moving to more reliable1D/Select version )
• BT LE enabled
• iOS Support (Including iOS manager)
• Maps (Here) (Optional in Build)
• Higher Level Security
• Honeywell Scanner (Optional)
Vuzix Leading the Industry with the Introduction of IWear 720 Video Headphones
NASDAQ: VUZI13
WINNER OF 4 CES 2015 AWARDS
● Next Gen Video Head Phones
- Think Beats headphone with a 130” hi def. Video experience
● HDMI 3D and streaming WiFi ready
● Designed for PCs, Consoles, Smartphones
● 720P - highest resolution with largest FOV at 57+ degrees (Front row of theater)
● AR & VR Application capable with tracking, audio, microphone, camera
● High precision patent pending optics for gaming to work
● Fully immersive video or VR experience
● Shipping late summer 2015
But, for Mass Market the Smart Glasses Form Factor Needs Improvement
NASDAQ: VUZI14
Carl ZeissCinemizer
Sony HMZ
EpsonMoverio
GoogleGlass
KopinGolden-I
OculusRift
● One of the most frequent questions I get: When will Vuzix finally hire a fashion ID firm?Well, its not quite that easy
● Conventional refractive and reflective optics simply have limits
● Ultimately a true eyeglass form is needed to gain general consumer acceptance of smart glasses.First Cell Phone
Conventional Optics for Video Viewers & Gaming
Conventional Options for Smart Glasses
Vuzix Technology and IP - SOLVES THE PROBLEM
Waveguides (patented) that allow true eyeglass form factors
● Revolutionary way to move light and magnify
● 1.4mm thin so not bulky like conventional optics
● Provides significant improvements in mass, costs and optical performances.
Purpose Built Waveguide Optics for Fashionable Smart Glasses
● New Rochester manufacturing facility operational Fall 2014
● Proprietary Nano-Imprinting for Low Cost Manufacturing
● HD very thin optics with large FOVs
● Easily scalable to mass market levels
Large FOV HD optics (patents pending)
● Revolutionary way magnify HD images to mass screen size(up to 200” at 10 feet)
● Light, compact, low cost that leverage nano lens arrays
NASDAQ: VUZI15
Conventional Optics
Waveguides
Smart Glasses – B Series for Enterprise and Consumer
NASDAQ: VUZI16
● Will deliver on the promise that Google Glass tried to provide
● Vuzix Waveguide based optics
● First binocular fashion-wear smart glasses
● Hands-free operation by voice and gesturing
● Hi resolution displays and 1080p camera
● Designed to support Augmented Reality applications
● True eyeglass styling to “cross the chasm” to the mass market
Technology Evolves: Day in the Life of Cloud Connected You…
http://sidv.co/author/sid/
Images: Siddharth Vanchinathan
Interim Financial Data – 3 Months Ended March 31st
NASDAQ: VUZI18
3 Mths Mar 31, 2015
3 Mths Mar 31, 2014
Total Sales $808 $798
Cost of Sales 558 450
Gross Margin 250 348
Operating Expenses - Cash 1,693 1,222
Operating Loss - Cash -1,443 -874
Stock Based Compensation & Services -2,115 -19
Depreciation and Amortization -131 -100
Interest and Other -399 -70
Gain (Loss) on Derivative Valuation -1,003 2,575
Net Income (Loss) -5,091 1,512
Earnings (Loss) Per Share -$0.40 $0.15
Balance Sheet
NASDAQ: VUZI19
Mar 31, 2015 Dec 31, 2014
ASSETS
Cash $ 22,884 $ 85
Accounts Receivable 255 383
Inventory & Prepaids 1,397 1,491
Current Assets 24,536 1,959
Net Fixed Asset & Intangibles 1,623 1,741
TOTAL ASSETS 26,160 3,700
Current Liabilities 1,710 3,386
Long-term Debt 1,181 1,179
Derivative Liability – Long-term 175 13,541
Total Liabilities 3,066 18,097
Share Capital 72,346 29,763
(Deficit) -49,252 -44,161
Stockholder’s Equity (Deficit) 23,094 -14,398
Total Liabilities & Stockholders’ Equity $ 26,160 $ 3,700
Capitalization Table
NASDAQ: VUZI20
SecurityAverage
Exercise PriceAs of May 12,
2015
Common Shares - Outstanding Currently – 15,909,978
Preferred Stock - Series A Convertible (Intel) $5.00 4,962,600
Convertible Debt (excludes accrued interest) $2.25 885,556
Warrants - Outstanding $2.49 590,143
Options - Outstanding $4.41 720,551
Fully Diluted 23,068,828
Recent Corporate and Industry Activity
● Facebook Buys Oculus Rift for $2 billion (March 2014)
● Lenovo signs deal with Vuzix to sell Vuzix-branded M100 Smart Glasses in China (July 2014)
● Google/Qualcomm invests $542 million for 20% of Magic Leap Inc.(October 2014)
● SAP launches 3rd enterprise application supporting Vuzix M100 Smart Glasses (October 2014)
● DHL experiences 25% improved efficiency in logistics through use of Vuzix M100 Smart Glasses during pilot test (January 2015)
● Google pulls the plug on Glass Explorer Program (January 2015)
● Intel announces Curie chip for wearable market (January 2015)
● Vuzix receives $24.8 million investment from Intel Corporation (January 2015)
NASDAQ: VUZI21
Vuzix in 2015
● Expecting continued growth with the M100 as an Enterprise solution with pilots soon to move to wider adoption (10s to 1000s)
● Expanding developer base and continued launch of new applications
● Release HD IWear 720 products for mobile entertainment and gaming
● Move to new larger facility with 5x cleanroom space for volume manufacturing
● Recruiting additional R&D staff, to accelerate new product launches
● Start commercialization of waveguides for enterprise and then consumer markets
● Implement SOX compliance for NASDAQ
● Targeting strong revenue growth in second half of 2015
● Release/Demonstrate see-through waveguide based binocular Smart Glasses Q4 2015
NASDAQ: VUZI22
Vuzix Investment Highlights
● Received a $24.8 million investment from Intel Corporation (24% owner)
● Acknowledged as one the world leaders in Smart Glasses, established over the last 20 years, and at the front end of market opportunities in the billions of dollars
● Extensive cornerstone IP and technology base in wearable displays and smart glasses
● Strong R&D plan and product roadmap to commercialize itsnext generation technology for both Vuzix and potentialthird party OEMs and licensees
● Experienced team with a clear vision of the importantrole that wearable displays will play in the future
● Partnerships with leading companies like
- Intel, SAP, Intel, AT&T, and many more
● Waveguide based fashion glasses being released by early 2016
NASDAQ: VUZI23
THANK YOUInvestor Relations:IRTH CommunicationsAndrew Haag866-976-4784vuzix@irthcommunications.com
Contact:Vuzix Corporation585-359-5000http://www.vuzix.com/