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Technology Licenses, Net

12 Months Ended

Dec. 31, 2023

Note 7 — Technology Licenses, Net


	December 31,		December 31,
	2023		2022

Licenses	$	32,443,356	$	2,443,356
Additions		—		30,000,000
Less: Accumulated Amortization		(5,592,355)		(2,284,667)
Licenses, Net	$	26,851,001	$	30,158,689

Total amortization expense related to these intangible technology licenses in the years ended December 31, 2023, 2022 and 2021 was $3,307,737, $1,231,197, and $480,945, respectively.

These intangible technology license assets are being amortized over a ten-year period, which began on May 12, 2022 and, as modified, on December 16, 2022. During the year ended December 31, 2023, the Company paid $10,500,000 towards its licensing commitment liability with Atomistic. The Atomistic technology license represents $30,000,000 of the total licenses on-hand and the Company recorded a total of $3,307,737 in amortization relating to these intangible assets and other licenses. The remaining funding commitment of $1,000,000 associated with these licenses was paid in January 2024.

Until the Company achieves a near 100% ownership in Atomistic by the issuance of Vuzix shares (see Note 12) for the completion of all development milestones, or is permitted to waive them and accelerate the share issuances for 100% ownership of Atomistic, the Company and the current owners of Atomistic must negotiate every 12 to 24 months new funding contributions for the extension of its exclusive license. If such amounts cannot be reasonably negotiated or would be considered too large by Vuzix in the future, failure to pay the additional license fees would result in the termination of Vuzix existing license to the Atomistic technologies.