XML 27 R14.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Goodwill and Acquired Intangible Assets, Net | 12 Months Ended
--- | ---
Dec. 31, 2023
Goodwill and Acquired Intangible Assets, Net |
Intangible Asset, Net | Note 8 — Goodwill and Acquired Intangible Assets, Net On October 20, 2022, the Company acquired Moviynt, a US-based SAP Certified ERP platform software solution provider, that supports handheld mobile phones and scanners used in logistics, warehousing and manufacturing applications. Moviynt, a boutique specialized software firm which was founded in 2018 by three principals, has developed a logistics mobility software platform (Mobilium®) which eliminates traditional middleware, and is device agnostic. With the acquisition, Moviynt became a wholly-owned subsidiary of Vuzix. ​ The Moviynt acquisition was completed pursuant to an agreement and plan of merger by and among the Company and Moviynt, Inc. (the Sellers), a Delaware corporation. Total purchase price consideration paid to the Sellers was $2,469,574, which included $2,300,000 in base merger consideration and $169,574 in net working capital adjustments, in exchange for all shares outstanding. The acquisition agreements contained customary terms and conditions including representations, warranties and indemnification provisions. A portion of the consideration paid to the Sellers was held in escrow for indemnification purposes, which was subsequently released to the Sellers upon the Company completing a 90-day post close review. ​ The Moviynt acquisition was accounted for in accordance with the accounting treatment of a business combination pursuant to FASB ASC Topic 805, Business Combinations (“ASC 805”). Accordingly, the purchase price was allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of the separately identifiable assets acquired and liabilities assumed was allocated to goodwill. Management was responsible for determining the acquisition date fair value of the assets acquired and liabilities assumed, which requires the use of various assumptions and judgments that are inherently subjective. The purchase price allocation presented below reflects all known information about the fair value of the assets acquired and liabilities assumed as of the acquisition date. ​ The following table represents the preliminary assets acquired and liabilities assumed on October 20, 2022: ​
​ | ​ | ​ | ​
Cash |  | $ | 132,233
Accounts Receivable | ​ | ​ | 44,820
Goodwill | ​ | ​ | 1,601,400
Other Intangible Assets | ​ | ​ | 698,600
Accrued Expenses | ​ | ​ | (7,479)
Net Assets Acquired | ​ | $ | 2,469,574
​ The goodwill included in the Company’s purchase price allocation presented above represented the value of Moviynt’s assembled and trained workforce and the incremental value of Moviynt’s technology and deployment efforts that were in place at the date of acquisition. No amount of goodwill is considered deductible for tax purposes. ​ Intangible assets were valued using various income methods based upon management’s approved projections of future cash flows. The following table summarizes the estimated fair value and annual amortization for each of the identifiable intangible assets acquired: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Estimated Fair | ​ | Amortization Period | ​ | Annual Amortization
​ |  | Value |  | (Years) |  | Year 1 |  | Year 2 |  | Year 3 |  | Year 4 |  | Year 5
Tradename-Trademark | ​ | $ | 92,600 | ​ | 5 | ​ | $ | 18,520 | ​ | $ | 18,520 | ​ | $ | 18,520 | ​ | $ | 18,520 | ​ | $ | 15,433
IP-Technology-License | ​ |  | 415,400 | ​ | 5 | ​ |  | 83,080 | ​ |  | 83,080 | ​ |  | 83,080 | ​ |  | 83,080 | ​ |  | 69,233
Customer Base | ​ |  | 153,400 | ​ | 5 | ​ |  | 30,680 | ​ |  | 30,680 | ​ |  | 30,680 | ​ |  | 30,680 | ​ |  | 25,567
Non-Competes | ​ |  | 37,200 | ​ | 5 | ​ |  | 7,440 | ​ |  | 7,440 | ​ |  | 7,440 | ​ |  | 7,440 | ​ |  | 6,200
Total definite-lived intangible assets | ​ | $ | 698,600 | ​ | ​ | ​ | $ | 139,720 | ​ | $ | 139,720 | ​ | $ | 139,720 | ​ | $ | 139,720 | ​ | $ | 116,433
​ During the year ended December 31, 2022, the Company incurred acquisition-related costs and other non-recurring expenses of $74,723 directly attributable to the acquisition, including one-time accounting, legal and due diligence services, which amounts were expensed as incurred. In 2023, Moviynt generated $120,158 of subscription-based revenue and $19,238 of engineering revenue which was applied against $6,347 related to Cost of Sales, generating a gross margin of $133,049. In 2022, Moviynt generated $76,952 of engineering revenue which was applied against $24,819 related to Cost of Sales, generating a gross margin of $52,133. ​ The following table represents goodwill and acquired intangible assets activity. Due to slower than originally expected revenue growth by Moviynt, the Company took an impairment charge of $2,136,993 for the unamortized intangible assets and goodwill of Moviynt. ​
​ | ​ | ​ | ​
December 31, 2021 |  | $ | -
Goodwill and Intangible Assets Acquired | ​ | ​ | 2,300,000
Amortization Expense | ​ | ​ | (23,287)
December 31, 2022 | ​ | ​ | 2,276,713
Amortization Expense | ​ | ​ | (139,720)
Impairment Charge | ​ | ​ | (2,136,993)
December 31, 2023 | ​ | $ | -
​

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

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration