XML 30 R17.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2023
Income Taxes |
Income Taxes | Note 11 — Income Taxes The Company files U.S. federal and various state and foreign tax returns. Pre-tax earnings consisted of the following for the years ended: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​ | December 31, | ​ | December 31,
​ |  | 2023 |  | 2022 |  | 2021
Pre-Tax Income (Loss) |  | ​ |  |  | ​ |  |  | ​ |
U.S. | ​ | $ | (49,035,562) | ​ | $ | (41,356,619) | ​ | $ | (39,906,101)
Outside the U.S. | ​ |  | (1,113,515) | ​ |  | 593,046 | ​ |  | (471,059)
Total Pre-Tax Income (Loss) | ​ | $ | (50,149,077) | ​ | $ | (40,763,573) | ​ | $ | (40,377,160)
​ The provision expense/(benefit) for income taxes for the years ended December 31, 2023, 2022 and 2021 was as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2023 |  | 2022 |  | 2021
U.S. Income Taxes: |  | ​ |  |  | ​ |  |  | ​ |
Current Provision | ​ | $ | — | ​ | $ | — | ​ | $ | —
Deferred Provision | ​ |  | (7,207,958) | ​ |  | (2,957,991) | ​ |  | (8,924,947)
Valuation Allowance | ​ |  | 7,207,958 | ​ |  | 2,957,991 | ​ |  | 8,924,947
Income Taxes Outside the U.S.: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Current Provision | ​ |  | — | ​ |  | — | ​ |  | —
Deferred Provision | ​ |  | 297,343 | ​ |  | 109,107 | ​ |  | (341,181)
Valuation Allowance | ​ |  | (297,343) | ​ |  | (109,107) | ​ |  | 341,181
State Income Taxes: | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Current Provision | ​ |  | — | ​ |  | — | ​ |  | —
Deferred Provision | ​ |  | (634,503) | ​ |  | 271,248 | ​ |  | (636,401)
Valuation Allowance | ​ |  | 634,503 | ​ |  | (271,248) | ​ |  | 636,401
Total Provision | ​ | $ | — | ​ | $ | — | ​ | $ | —
​ A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2023, 2022 and 2021 is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2023 |  | 2022 |  | 2021
​ | ​ | % | ​ | % | ​ | %
Federal Income Tax at Statutory Rate |  | 21.0 |  | 21.0 |  | 21.0
State Tax Provision, Net of Federal Benefit |  | 1.1 |  | (0.5) |  | 1.6
Permanent Differences |  | (0.7) |  | (0.4) |  | —
Federal Tax Credits |  | 0.0 |  | (0.1) |  | 0.2
Stock Compensation | ​ | (5.0) | ​ | (13.2) | ​ | 1.5
Foreign Tax Provision | ​ | (1.4) | ​ | 0.1 | ​ | 0.6
Expiration of NOL, Credits, Charitable Contribution | ​ | 0.0 | ​ | (0.8) | ​ | (0.7)
Other |  | 0.0 |  | 0.2 |  | 0.3
Effective Tax Rate |  | 15.0 |  | 6.3 |  | 24.5
Change in Valuation Allowance |  | (15.0) |  | (6.3) |  | (24.5)
Net Effective Tax Rate |  | — |  | — |  | —
​ Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | December 31, | ​ | December 31, | ​ | December 31,
​ |  | 2023 |  | 2022 |  | 2021
Deferred Tax Assets: |  | ​ |  |  | ​ |  |  | ​ |
Net Operating Loss Carry-forwards | ​ | $ | 42,538,219 | ​ | $ | 38,655,757 | ​ | $ | 36,705,377
Tax Credit Carry-forwards | ​ |  | 4,191,198 | ​ |  | 4,048,872 | ​ |  | 3,924,660
Inventory Valuation Adjustment | ​ |  | 1,316,114 | ​ |  | 350,165 | ​ |  | 290,713
Stock-Based Compensation | ​ |  | 1,098,240 | ​ |  | 890,169 | ​ |  | 2,989,427
Lease Obligation Liability | ​ | ​ | 65,628 | ​ | ​ | 204,141 | ​ | ​ | 240,741
Capitalized R&D | ​ | ​ | 4,172,773 | ​ | ​ | 2,265,857 | ​ | ​ | —
Intangible Assets | ​ |  | 510,539 | ​ |  | — | ​ |  | —
Other | ​ |  | 627,529 | ​ |  | 702,540 | ​ |  | 425,737
Total Deferred Tax Assets | ​ |  | 54,520,240 | ​ |  | 47,117,501 | ​ |  | 44,576,655
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Deferred Tax Liabilities: | ​ |  |  | ​ |  |  | ​ |  |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Lease Right of Use Asset | ​ | ​ | 65,628 | ​ | ​ | 204,141 | ​ | ​ | 240,741
Moviynt Intangibles | ​ | ​ | — | ​ | ​ | 3,867 | ​ | ​ | —
Other | ​ |  | — | ​ | ​ | — | ​ |  | 4,057
Total Deferred Tax Liabilities | ​ |  | 65,628 | ​ |  | 208,008 | ​ |  | 244,798
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Deferred Tax Assets Before Valuation Allowance | ​ | $ | 54,454,612 | ​ | $ | 46,909,493 | ​ | $ | 44,331,857
Valuation Allowance | ​ |  | (54,454,612) | ​ |  | (46,909,493) | ​ |  | (44,331,857)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net Deferred Tax Assets | ​ | $ | — | ​ | $ | — | ​ | $ | —
​ As December 31, 2023, the Company has approximately $196 million in US federal net operating loss (NOL) carryforwards. Some of these NOL carryforwards will expire beginning in 2025 and others are not subject to expiration. Specifically, $75.2 million of the NOL carryforward will begin to expire in 2025 and as a result of the Tax Cuts and Jobs Act, the remaining NOL carryforwards have no expiration. In addition to the US Federal NOL carryforwards, the Company has state NOL carryforwards of approximately $11.1 million in various jurisdictions in which it files that will begin to expire in 2034. The Company also has approximately $4.2 million of federal and state credit carryforwards. The credit carryforwards will begin to expire in 2024 and will be fully expired by 2042 if not utilized. Utilization of the NOL carryforwards may be subject to an annual limitation in the case of sufficient equity ownership changes under Section 382 of the tax law or the NOL's may expire unutilized. In addition to the US Federal and state attributes noted above, for tax years ending prior to December 31, 2023, Vuzix owned a Japanese branch that had NOL carryforwards of $3.4 million. In 2023, the Company converted its legal designation from a branch to a Japanese corporation, wholly-owned by the Company. With the legal conversion to an incorporation, the Japan branch NOLs will no longer be accessible for utilization. Further, Vuzix Europe GmbH, a wholly-owned subsidiary incorporated in Germany, has NOLs as of December 31, 2023 of $0.4 million that have no expiration. As the result of the assessment of the FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109, the Company has no unrecognized tax benefits. ​ The Company’s U.S. Federal and state tax matters for the years 2019 through 2022 remain subject to examination by the respective tax authorities. ​ FASB ASC 740 (Prior Authoritative Literature: SFAS No. 109, Accounting for Income Taxes), requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100% valuation allowance has been recorded to fully offset any benefit associated with the net deferred tax assets, for which realization is not considered more likely than not to occur.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration