Vuzix Corp (VUZI) 2023 Q4 法說會逐字稿

Greetings and welcome to the Vuzix's fourth-quarter and full-year ending December 31, 2023, financial results and business update conference call. (Operator instructions) As a reminder, this call is being recorded.

歡迎參加 Vuzix 截至 2023 年 12 月 31 日的第四季和全年財務業績和業務更新電話會議。（接線生說明）謹此提醒，此通話正在錄音。

Now, I would like to turn the call over to Ed McGregor, Director of Investor Relations at Vuzix. Mr. McGregor, you may begin.

現在，我想將電話轉給 Vuzix 投資者關係總監 Ed McGregor。麥格雷戈先生，您可以開始了。

Good afternoon, everyone. And welcome to the Vuzix's fourth-quarter and 2023 full year ending December 31 financial results and business update conference call. With us today are Vuzix's CEO, Paul Travers; and our CFO, Grant Russell.

大家下午好。歡迎參加 Vuzix 截至 12 月 31 日的第四季和 2023 年全年財務業績和業務更新電話會議。今天與我們在一起的有 Vuzix 執行長 Paul Travers；和我們的財務長格蘭特·拉塞爾。

Before I turn the call over to Paul, I'd like to remind you that on this call, management's prepared remarks may contain forward-looking statements, which are subject to risks and uncertainties, and management may make additional forward-looking statements during the question-and-answer session. Therefore, the company claims the protection of the Safe Harbor for forward-looking statements that are contained in the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those contemplated by any forward-looking statements as a result of certain factors, including but not limited to, general economic and business conditions, competitive factors, change in business strategy or development plans, the ability to attract and retain qualified personnel, as well as changes in legal and regulatory requirements. In addition, any projections as to the company's future performance represent management's estimates as of today, April 15th, 2024. Vuzix assumes no obligation to update these projections in the future as market conditions change.

在我將電話轉交給保羅之前，我想提醒您，在這次電話會議中，管理層準備的言論可能包含前瞻性陳述，這些陳述受到風險和不確定性的影響，並且管理層可能會在會議期間做出額外的前瞻性陳述。因此，該公司聲稱 1995 年《私人證券訴訟改革法案》中包含的前瞻性聲明受到安全港的保護。由於某些因素，包括但不限於總體經濟和商業狀況、競爭因素、業務戰略或發展計劃的變化、吸引和留住人才的能力，實際結果可能與任何前瞻性陳述預期的結果存在重大差異。人員以及法律和監管要求的變化。此外，對公司未來業績的任何預測均代表管理層截至今天（2024 年 4 月 15 日）的估計。Vuzix 不承擔在未來隨著市場條件變化而更新這些預測的義務。

This afternoon, the company issued a press release announcing its final 2023 financial results and filed its 10-K with the SEC. So participants in this call that may not already done so may wish to look at those documents as the company will provide a summary of the results discussed on today's call.

今天下午，該公司發布新聞稿，宣布其 2023 年最終財務業績，並向 SEC 提交了 10-K 報告。因此，本次電話會議的參與者可能尚未查看這些文件，因為該公司將提供今天電話會議中討論的結果摘要。

Today's call may include certain non-GAAP financial measures. When required reconciliation to the most directly comparable financial measures calculated and presented in accordance with GAAP can be found in the company's Form 10-K annual filing at sec.gov, which is also available at www.vuzix.com.

今天的電話會議可能包括某些非公認會計準則財務指標。當需要與根據 GAAP 計算和呈現的最直接可比較財務指標進行調整時，可以在 sec.gov 上的公司 10-K 年度申報表中找到該表格，該表格也可以在 www.vuzix.com 上取得。

I will now turn the call over to Vuzix's CEO, Paul Travers, who will give an overview of the company's operating results and business outlook. Paul will then turn the call over to Grant Russell, Vuzix's CFO, who will provide an overview of the company's fourth-quarter and full-year financial results. Paul will then return to make some closing remarks, after which we will move on to the Q&A session. Paul?

我現在將把電話轉給 Vuzix 的執行長 Paul Travers，他將概述公司的營運表現和業務前景。然後，Paul 將電話轉給 Vuzix 財務長 Grant Russell，他將概述該公司第四季度和全年的財務業績。然後保羅將回來發表一些結束語，之後我們將進入問答環節。保羅？

Thank you, Ed. Hello, everyone, and welcome to the Vuzix's Q4 and full-year 2023 conference call. As disclosed in our January 17 press release, Vuzix instituted cost-cutting initiatives across our operations, designed to streamline our operations and organizational structure to remove redundancy without sacrificing revenue generation or overall customer support. These measured reductions across sales, marketing, and product development will extend our financial runway, improve our margins, and allow the company to refocus resources aligned with the highest growth opportunities over the short to medium term.

謝謝你，艾德。大家好，歡迎參加 Vuzix 第四季和 2023 年全年電話會議。正如我們在1 月17 日的新聞稿中所披露的，Vuzix 在我們的營運中製定了成本削減計劃，旨在簡化我們的營運和組織結構，以在不犧牲創收或整體客戶支援的情況下消除冗餘。這些銷售、行銷和產品開發方面的縮減將延長我們的財務跑道，提高我們的利潤率，並使公司能夠重新集中資源，以適應中短期內的最高成長機會。

Let me now get into a bit more about the state of the industry and the growth areas that Vuzix is positioned to benefit from. Although the augmented reality smart glasses market has developed slower than most expected over the past five years, there are increasing signs that adoption is finally starting to grow. Some of the largest players in the technology, products, and eyewear markets are just now entering this space with first-generation virtual reality and mixed reality and smart glasses products and continue their investments in this category.

現在讓我詳細介紹一下產業狀況以及 Vuzix 能夠從中受益的成長領域。儘管過去五年擴增實境智慧眼鏡市場的發展速度比大多數人預期的要慢，但越來越多的跡象表明採用率終於開始成長。科技、產品和眼鏡市場的一些最大的參與者剛剛透過第一代虛擬實境、混合實境和智慧眼鏡產品進入這一領域，並繼續在這一類別進行投資。

Meta and Luxottica have seen a growing positive reception of their second product that now includes some audio-only AI-driven capabilities with their smart glasses carrying the Ray-Ban brand. Industry reports estimate over 300,000 units were sold in the first 12 months, and they don't even have displays in them yet. A key feature that many could argue questions the validity of the reference to even call them smart glasses.

Meta 和 Luxottica 的第二款產品受到越來越多的積極歡迎，該產品現在包含一些純音訊人工智慧驅動功能，其智慧眼鏡帶有雷朋 (Ray-Ban) 品牌。產業報告估計前 12 個月售出了超過 30 萬台，而且它們甚至還沒有配備顯示器。許多人可能會質疑其關鍵特徵，甚至質疑稱其為智慧眼鏡的有效性。

Apple also recently launched the Apple Vision Pro and sold out in even larger numbers at a much higher price point. And although our enterprise-based product revenue line has not shown it just yet, our inbound new business pipeline is expanding nicely on many fronts and should result in us achieving that growth very soon.

蘋果最近還推出了 Apple Vision Pro，並以更高的價格售罄。儘管我們基於企業的產品收入線尚未顯示出來，但我們的入境新業務管道在許多方面都在良好地擴展，並且應該會導致我們很快實現這種成長。

Vuzix has invested significant capital and other resources to create a foundation of key intellectual property that positions the company as one of the global leaders in the wearable computing and augmented reality smart glasses space. We have led much of the industry with the core technology developed needed right through to addressing the enterprise market in general. Our growing focus on offering OEM and ODM solutions of optics and display engine components for the enterprise, defense, and broader consumer markets is readying us for the rapid growth we see coming with much of the investment and costs already realized. We are positioning to deliver to our customers and market in short order.

Vuzix 投入了大量資金和其他資源來創建關鍵智慧財產權基礎，使該公司成為可穿戴運算和擴增實境智慧眼鏡領域的全球領導者之一。我們透過開發解決整個企業市場所需的核心技術引領了大部分產業。我們越來越注重為企業、國防和更廣泛的消費市場提供光學和顯示引擎組件的OEM 和ODM 解決方案，這使我們為我們看到的快速增長做好了準備，大部分投資和成本已經實現。我們的定位是在短時間內向客戶和市場交付產品。

The advancement of our core technologies is becoming more evident every day in our products, waveguide, and micro-display component solutions. Our Z100, which we introduced at CES this January 2024 is an innovative and unique AR smart glasses solution within the industry. It demonstrates the art of the possible with actual displays in small fashionable form factors, one that others have yet to replicate and deliver today to either enterprise users or the broader consumer markets.

我們的核心技術的進步在我們的產品、波導和微顯示組件解決方案中日益明顯。我們於 2024 年 1 月在 CES 上推出的 Z100 是業界創新且獨特的 AR 智慧眼鏡解決方案。它透過小型時尚外形尺寸的實際顯示器展示了可能性的藝術，這是其他公司目前尚未複製並提供給企業用戶或更廣泛的消費市場的藝術。

Our new waveguide mega factory, which was completed and became operational in late 2023, is a facility focused on high-volume manufacturing and the advancement of our waveguide technology. Again, the Wall Street Journal recently reported that roughly 300,000 Ray-Ban glasses were sold in 2023. Our plan for could meet that volume demand today, if, by way of example, Meta selected Vuzix to provide their waveguide needs for a similar product to their new Meta Ray-Ban and wanted to offer a more premium AI product with actual displays.

我們的新波導大型工廠於 2023 年底竣工並投入運營，是一家專注於大批量製造和波導技術進步的工廠。《華爾街日報》最近再次報導稱，2023 年雷朋眼鏡的銷售量約為 30 萬副。舉例來說，如果Meta 選擇Vuzix 來滿足其對與新Meta Ray-Ban 類似產品的波導需求，並希望提供具有實際顯示屏的更優質的AI 產品，我們的計劃就可以滿足今天的批量需求。

Vuzix and our partner, Atomistic, from whom we have exclusively licensed microLED technologies and invested in, are on a good path that should result in achieving what we feel will be state-of-the-art breakthroughs related to microLED solutions. Atomistic's microLEDs have the potential to optimally deliver on the performance, size, and cost required for augmented and mixed reality products that we feel will be able to ultimately achieve substantial success in the mass markets. That demand could be well beyond the potential of the Meta Ray-Bans, which today are simply audio-enabled sunglasses with a built-in camera. Many believe they could ultimately match or exceed the number of smartphones used around the globe.

Vuzix 和我們的合作夥伴 Atomistic（我們從他們那裡獲得了 microLED 技術的獨家許可並進行了投資）正走在一條良好的道路上，應該會實現我們認為與 microLED 解決方案相關的最先進的突破。Atomistic 的 microLED 有潛力以最佳方式提供擴增實境和混合實境產品所需的性能、尺寸和成本，我們認為這些產品最終將能夠在大眾市場取得巨大成功。這種需求可能遠遠超出了 Meta Ray-Ban 太陽眼鏡的潛力，而如今的 Meta Ray-Ban 太陽眼鏡只是帶有內建相機的音訊太陽眼鏡。許多人相信他們最終可以趕上或超過全球使用的智慧型手機數量。

Supporting these solutions from Vuzix is a comprehensive patent portfolio of more than 375 patents and patents pending, including a significant collection of fundamental waveguide design patents and applications as well as extensive trade secrets regarding nano imprinting, processes, equipment and materials like polymers, adhesion promoters, and release agents that are critical to how we can produce in volume and at low cost to support the broader markets.

支援Vuzix 解決方案的是一個全面的專利組合，其中包含超過375 項專利和正在申請的專利，其中包括大量基礎波導設計專利和應用，以及有關奈米壓印、製程、設備和材料（如聚合物、黏合促進劑）的廣泛商業機密和脫模劑，這對於我們如何以低成本進行大量生產以支持更廣泛的市場至關重要。

Lastly, moving on to software, which has finally been successfully ported over to the Vuzix smart glasses, is now leveraging artificial intelligence for items scanning and picking and continues to gain traction in the back-end operations of warehouses and large manufacturing plants.

最後，軟體終於成功移植到 Vuzix 智慧眼鏡上，現在正在利用人工智慧進行物品掃描和揀選，並繼續在倉庫和大型製造工廠的後端運作中獲得關注。

According to PluralSight, a leading technology workforce development company, by 2025, the top three transformative technologies for the global economy are going to be the ubiquitous Internet, artificial intelligence, and augmented reality. The stage is set for AI-enabled AR smart glasses. And this is why almost every major tech firm has development programs happening in all three areas. The investments we have made in our core technologies and application ecosystems, we feel are critical to preparing the company for the next phase of growth coming from the augmented reality smart glasses industry.

領先的技術勞動力開發公司 PluralSight 表示，到 2025 年，全球經濟的三大變革性技術將是無所不在的網路、人工智慧和擴增實境。支援 AI 的 AR 智慧眼鏡已經搭建好了舞台。這就是為什麼幾乎每家大型科技公司都在這三個領域開展開發專案。我們認為，我們對核心技術和應用生態系統的投資對於讓公司為擴增實境智慧眼鏡產業的下一階段成長做好準備至關重要。

The Z100, running 48 hours on a single charge, packs industry-defining heads-up waveguide technology and a custom microLED display engine into a sleek, fashionable form factor that weighs in at just 38 grams, the weight of a standard pair of eyeglasses.

Z100 一次充電可運行 48 小時，將行業定義的平視波導技術和定制的 microLED 顯示引擎融入到時尚的外形中，重量僅為 38 克，相當於一副標準眼鏡的重量。

For enterprise users, they represent the first attractive functional bridge between AI platform tools in the user's external world, where situational guidance can streamline workflows for human workers who can reap the benefits of a truly connected workplace.

對於企業用戶來說，它們代表了用戶外部世界中人工智慧平台工具之間的第一個有吸引力的功能橋樑，其中情境指導可以簡化人類工作人員的工作流程，讓他們能夠從真正互聯的工作場所中獲益。

In addition to a lightweight AI interface, the Z100 glasses can augment the data feed from wirelessly connected finger scanners, sensors, controllers, and other equipment with minimal native user interfaces, making that data available in a new and highly accessible format.

除了輕量級人工智慧介面之外，Z100 眼鏡還可以透過無線連接的手指掃描器、感測器、控制器和其他具有最少本機用戶界面的設備來增強數據饋送，從而使數據以新的且易於訪問的格式提供。

For the broader market, there is a transferable customer base that needs a better solution. There are 1.6 billion smartphones and 300 million smartwatches sold annually. And the biggest use cases are notifications, social media, and soon, mobile AI connected to the world around you. Products like the Z100 have the potential to provide heads-up, hands-free access to notifications, alerts, and other location-aware information from language translation to closed captioning, to directions, to help and workout status, to messaging, and much more and also to integrate the latest local and cloud-based AI engines coming from several of the larger known brands in the social media and streaming space. The bottom line is the Z100 has enthusiastically being received and will be successful in advancing the industry and opening up new doors for Vuzix's OEM and ODM opportunities, with our reference designs and integration opportunities with some consumer-centric software companies. And we are planning to continue this theme with the broader markets into the fall of the year.

對於更廣泛的市場來說，有一個可轉移的客戶群需要更好的解決方案。每年售出 16 億支智慧型手機和 3 億支智慧手錶。最大的用例是通知、社交媒體，以及即將連接到您周圍世界的行動人工智慧。Z100 等產品有潛力提供平視、免持訪問通知、警報和其他位置感知信息（從語言翻譯到隱藏式字幕、指示、幫助和鍛煉狀態、消息傳遞等）它還集成了來自社交媒體和流媒體領域幾個較大知名品牌的最新本地和基於雲端的人工智慧引擎。最重要的是，Z100 受到了熱烈歡迎，並將成功推動行業發展，並透過我們的參考設計以及與一些以消費者為中心的軟體公司的整合機會，為Vuzix 的OEM 和ODM 機會打開新的大門。我們計劃將這一主題與更廣泛的市場一起延續到今年秋季。

The new Vuzix waveguide factory is a state-of-the-art manufacturing plant that accomplishes several specific max market requirements, including increasing our waveguide build capacity and lowering our manufacturing costs. It is also allowing us to utilize the more advanced processes needed for our latest waveguide designs. Our production capacity can now be quickly ramped to deliver up to 1 million units annually with very little further investment. The new facility also allows Vuzix to focus on the advancement of waveguides, utilizing higher index materials, advanced glass substrates, and unique waveguide configurations.

新的 Vuzix 波導工廠是一家最先進的製造工廠，可滿足多項特定的最大市場要求，包括提高我們的波導製造能力和降低製造成本。它還使我們能夠利用最新波導設計所需的更先進的製程。我們的產能現在可以快速提升，每年交付高達 100 萬件，而無需進一步投資。新設施還使 Vuzix 能夠專注於波導的進步，利用更高折射率的材料、先進的玻璃基板和獨特的波導配置。

Recently, Vuzix introduced INCOGNITO-enabled waveguides, which we believe is the first-wave guide-based technology in the world to virtually eliminate forward eye glow when the displays are active. Eliminating eye glow is deemed by most to be a critical requirement for the broader consumer markets to accept smart glasses.

最近，Vuzix 推出了支援 INCOGNITO 的波導，我們相信這是世界上第一個基於波導的技術，可以在顯示器處於活動狀態時幾乎消除前向眼睛發光。大多數人認為消除眼睛發光是更廣泛的消費者市場接受智慧眼鏡的關鍵要求。

We have demonstrated Vuzix INCOGNITO privately in dark rooms with the lights out to leading consumer brands and defense contractors, much to their amazement and well-done statements and of course, how the heck Vuzix's INCOGNITO technology manages internal like reflections and forward light leakage within a waveguide, which besides the obvious of removing the annoying forward light results and improved contrast of virtual images in the AR glasses. INCOGNITO has been accomplished with no increase in our manufacturing cost per waveguide and will be targeted for introduction into certain of the company's defense, enterprise, and of course, ultimately broader consumer applications for both Vuzix's products and our OEM offerings.

我們已經在關燈的暗室中私下向領先的消費品牌和國防承包商展示了Vuzix INCOGNITO，這讓他們非常驚訝並發表了出色的聲明，當然，Vuzix 的INCOGNITO 技術到底是如何管理內部類似反射和前向漏光的？INCOGNITO 的實現並沒有增加我們每個波導的製造成本，並將有針對性地引入公司的某些國防、企業，當然還有 Vuzix 產品和我們的 OEM 產品的最終更廣泛的消費者應用。

So, we all know that when it comes to smart glasses, one has to also address the fact that more than 60% of the population, whereas prescription glasses in solving the challenges associated with delivering waveguides with integrated prescriptions is no small task. Vuzix is currently in the process of establishing the infrastructure to support the production of prescription-based waveguides with a roadmap for scaled production thereafter. Multiple patents and patents pending are already in place related to the system processes and prescription integrations. The prescription lens layer needs to be finished, trimmed, and integrated with the smart glasses waveguide, all of which must be conducted in controlled environments and with our approach can utilize most of the existing industry infrastructure for high-volume prescription glasses. We expect our integrated solutions can support the vast majority of prescriptions needed, including bifocals and astigmatism.

因此，我們都知道，當談到智慧眼鏡時，我們還必須解決超過 60% 的人口這一事實，而處方眼鏡要解決與提供整合處方波導相關的挑戰並不是一件容易的事。Vuzix 目前正在建立基礎設施以支持基於處方的波導的生產，並製定了此後規模化生產的路線圖。與系統流程和處方整合相關的多項專利和正在申請的專利已經到位。處方鏡片層需要完成、修整並與智慧眼鏡波導集成，所有這些都必須在受控環境中進行，並且透過我們的方法可以利用大多數現有的大批量處方眼鏡行業基礎設施。我們期望我們的整合解決方案能夠支援絕大多數所需的處方，包括雙重焦點和散光。

Our recently announced Ophtalmic Advisory Board is providing strategic input, guidance, and recommendations regarding vision correction issues and how to better build products and services to meet customer vision requirements. Their efforts and contributions are helping Vuzix successfully do this.

我們最近宣布的眼科諮詢委員會正在提供有關視力矯正問題以及如何更好地建立產品和服務以滿足客戶視力要求的策略意見、指導和建議。他們的努力和貢獻正在幫助 Vuzix 成功實現這一目標。

Again, these are all industry-leading developments, and the waveguides resulting from them in terms of cost, scalability, and features, we feel are unmatched in the industry. Waveguides, with all these features mentioned above, represent an essential component needed for widespread adoption of lightweight AI-enabled smart glasses and other wearables.

同樣，這些都是行業領先的發展，並且由此產生的波導在成本、可擴展性和功能方面，我們認為在行業中是無與倫比的。具有上述所有這些功能的波導代表了廣泛採用輕型人工智慧智慧眼鏡和其他穿戴式裝置所需的重要組件。

The other essential component for AI-enabled AR smart glasses is microLEDs. As we've discussed in the past, microLEDs have the potential to be a driving force in providing the performance, size, and costs needed for AR, MR, and smart glasses to achieve success in the mass market. MicroLEDs have the potential to be much more efficient, lower power to drive high brightness levels outdoors in the real world with a resolution and form factor to enable a family of next-generation small, lightweight, fashion-forward smart glasses.

支援 AI 的 AR 智慧眼鏡的另一個重要組件是 microLED。正如我們過去所討論的，microLED 有潛力成為 AR、MR 和智慧眼鏡在大眾市場取得成功所需的性能、尺寸和成本的驅動力。MicroLED 有潛力以更高的效率、更低的功耗在現實世界的戶外驅動高亮度水平，其分辨率和外形尺寸可支援下一代小型、輕量、時尚前衛的智慧眼鏡系列。

Over the past 24-plus months, Vuzix has invested approximately $30 million in developing advanced microLED display technologies, leveraging extensive atomistic SAS intellectual properties for which we have the option to continue to own the exclusive license outright and acquire the company. The current AR display device technology approach to microLEDs by others today primarily consist of using gallium nitride and gallium arsenide material systems. It has had ongoing challenges related to higher build costs, complicated manufacturing scalability, less power efficiency, and spectral performance when scaled to the micro sizes needed for smart glasses and other uses.

在過去的 24 個多月裡，Vuzix 已投資約 3,000 萬美元來開發先進的 microLED 顯示技術，利用廣泛的原子 SAS 智慧財產權，我們可以選擇繼續擁有完全的獨家授權並收購該公司。目前其他人採用的 AR 顯示設備技術方法主要包括使用氮化鎵和砷化鎵材料系統。當擴展到智慧眼鏡和其他用途所需的微型尺寸時，它一直面臨著與較高的建造成本、複雜的製造可擴展性、較低的功率效率和光譜性能相關的挑戰。

Atomistic, in contrast, continues to make steady progress in the development of their unique microLED materials approach. This includes delivering against a number of pre-established development milestones and our exclusive license agreements, 6 out of 10 thus far. These milestones are related to the development and production of a singularly unique multi-chamber epitaxy machine used for both red, green, and blue, or RGB microLEDs, atomic level design, and ultimately, into production. Development of unique doping materials and processes, expanded development, and patent-related documentation of multiple material stack approaches to optimize the atomic pixel structure for increased efficiencies for all three primary colors and work on multiple, unique methods of pixel control. We expect this progress to accelerate over the coming months with increased production of test samples and refinement of initial designs.

相較之下，Atomistic 在開發其獨特的 microLED 材料方法方面繼續穩步取得進展。這包括兌現許多預先設定的開發里程碑和我們的獨家授權協議（迄今為止十分之六）。這些里程碑與用於紅、綠、藍或 RGB microLED 的獨特多室外延機的開發和生產、原子級設計以及最終投入生產有關。開發獨特的摻雜材料和工藝，擴大開發範圍，並記錄多種材料堆疊方法的專利相關文檔，以優化原子像素結構，提高所有三基色的效率，並研究多種獨特的像素控制方法。我們預計，隨著測試樣品產量的增加和初始設計的完善，這項進展將在未來幾個月內加速。

As we are making this progress, the ability to share more with third parties is now starting to crystallize. And we have been able to start engaging with select potential customers, investing partners, and organizations that have a vested interest to see microLED technology finally commercialized, including US and international defense organizations, numerous well-known brands, and multinational commercialization and supply companies. The early feedback has been very positive thus far, with nearly all parties intently interested in seeing and potentially supporting a practical solution for high brightness and high efficiency with an approach that is clearly scalable at a competitive cost. These early conversations regarding Atomistic's unique technical and production approach reconfirm the path we are on and the potential high return on our investment.

隨著我們取得這一進展，與第三方分享更多內容的能力現在開始具體化。我們已經能夠開始與特定的潛在客戶、投資合作夥伴和對 microLED 技術最終商業化擁有既得利益的組織進行接觸，其中包括美國和國際國防組織、眾多知名品牌以及跨國商業化和供應公司。到目前為止，早期的回饋非常積極，幾乎所有各方都熱衷於看到並可能支援高亮度和高效率的實用解決方案，該解決方案具有明顯可擴展性且成本具有競爭力。這些關於 Atomistic 獨特的技術和生產方法的早期對話再次證實了我們所走的道路以及潛在的高投資回報。

Our current enterprise smart glasses products are now being used around the clock in many warehouses to drive cost savings and efficiencies. In healthcare, Vuzix glasses are being used around the globe to teach and perform surgeries. Vuzix smart glasses are also being used during equipment repairs and remote maintenance service calls. The list of use cases keeps growing as the enterprise industry matures, and, as we have expressed in the past, we continue to see much larger deployment opportunities on the horizon. This has not changed.

我們目前的企業智慧眼鏡產品現已在許多倉庫全天候使用，以節省成本並提高效率。在醫療保健領域，Vuzix 眼鏡在全球範圍內被用於教學和進行手術。Vuzix智慧眼鏡也被用於設備維修和遠端維護服務呼叫。隨著企業行業的成熟，用例清單不斷增長，正如我們過去所表達的那樣，我們繼續看到更大的部署機會即將出現。這一點沒有改變。

We've entered 2024 with a solid pipeline of smart glasses and OEM sales opportunities. We feel this way because it is not concentrated across only a few customers, but instead it is becoming more broad based across industries, geographic regions, and use cases. The Vuzix team is looking forward to executing and delivering on what we feel should be a significant number of growth catalysts throughout the remainder of 2024.

進入 2024 年，我們擁有堅實的智慧眼鏡產品線和 OEM 銷售機會。我們之所以有這種感覺，是因為它不僅集中在少數客戶身上，而是變得更加廣泛，跨行業、地理區域和用例。Vuzix 團隊期待在 2024 年剩餘時間內執行和交付我們認為應該是大量成長催化劑的成果。

One area of broad focus for the entire industry and, of course, for Vuzix is artificial intelligence for many applications, including as a personal assistant for work or life management and entertainment. We have multiple third-party ISVs in the enterprise space and Vuzix own Moviynt team planning to enable their AI-enabled offerings ultimately through the use of smart glasses to leverage artificial intelligence for augmenting humans for picking, preventive maintenance, education, security, and language processing. We believe artificial intelligence equipped smart glasses will also have a meaningful impact in defense and of course, with consumers.

整個產業，當然還有 Vuzix 廣泛關注的一個領域是人工智慧的許多應用，包括作為工作或生活管理和娛樂的個人助理。我們在企業領域擁有多個第三方 ISV，Vuzix 自己的 Moviynt 團隊計劃最終透過使用智慧眼鏡來實現其支援 AI 的產品，以利用人工智慧來增強人類的揀選、預防性維護、教育、安全和語言能力加工。我們相信配備人工智慧的智慧眼鏡也將對國防產生有意義的影響，當然也會對消費者產生有意義的影響。

According to the survey, revolutionizing fulfillment operations with workforce augmentation created by Incisive, one of the leading insights firms for digital transformation leaders, 94% of businesses report a commitment to evolving the role of human labor in areas like automated warehouses and last-mile delivery. In this context, there's a growing focus on technology that enhance rather than replace human capabilities. Reflecting this sentiment, a strong 69% of those surveyed agreed that wearable AR solutions that broaden the capabilities of their workers with AI optimizations improved accuracy, and data rich inputs will be central to warehouse operations in the coming years.

調查顯示，透過Incisive（為數位轉型領導者提供領先洞察的公司之一）創建的勞動力增強方案，徹底改變了履行運營，94% 的企業表示致力於在自動化倉庫和最後一英里交付等領域發展人力的角色。在這種背景下，人們越來越關注增強而不是取代人類能力的技術。69% 的受訪者一致認為，穿戴式 AR 解決方案透過 AI 優化、提高準確性和豐富的資料輸入來擴展員工的能力，這反映了這種情緒，這將成為未來幾年倉庫營運的核心。

Again, our core waveguide and micro display projector technology in optics continue to gain traction in these markets, both products and as well related to potential ODM and OEM reference designs for consumer smart glasses and in the trenches with our defense customers. We remain in ongoing discussions with multiple industry leaders to ideally provide them components, subsystems, and even full white label designs for the upcoming AR products. We believe our success with many of these firms is just a matter of time.

同樣，我們在光學方面的核心波導和微顯示投影機技術繼續在這些市場中獲得吸引力，包括與消費智慧眼鏡的潛在 ODM 和 OEM 參考設計相關的產品以及與我們的國防客戶合作的產品。我們仍在與多個行業領導者進行持續討論，以便為他們提供理想的組件、子系統，甚至為即將推出的 AR 產品提供完整的白標設計。我們相信，我們與許多這樣的公司的成功只是時間問題。

In November of last year, Vuzix also signed an agreement with Quanta, one of the world's largest ODM suppliers on the planet, with over $40 billion in annual revenues to jointly supply the same components and with the goal to enable as many commercial customers as possible with AR-finished goods solutions. This is an exciting new relationship for Vuzix and one that continues to evolve with initial glasses already being shown from Quanta using Vuzix waveguides and software to select key accounts.

去年 11 月，Vuzix 還與年收入超過 400 億美元的全球最大 ODM 供應商之一廣達簽署了一項協議，共同供應相同的組件，目標是為盡可能多的商業客戶提供服務提供AR 成品解決方案。對於 Vuzix 來說，這是一種令人興奮的新關係，隨著廣達已經展示的第一款眼鏡使用 Vuzix 波導和軟體來選擇關鍵客戶，這種關係仍在不斷發展。

On the defense side, and I know we have been expecting this for quite some time, we expect at least one of our customers, which to date has invested millions of dollars and prior NREs with Vuzix, to be rolling into production this year. And we feel there is a second customer right behind them. At the same time, our specialized waveguide R&D efforts are bearing new fruit and opening up new addressable markets in defense areas related to HUDs for armored vehicles, aircraft, and ultimately, even ground forces. We believe the competitiveness of our products and technologies is opening other accretive opportunities.

在防禦方面，我知道我們已經期待這一點很長一段時間了，我們預計至少有一個客戶（迄今為止已經投資了數百萬美元並與 Vuzix 進行了先前的 NRE）將在今年投入生產。我們感覺他們身後還有第二個客戶。同時，我們的專業波導研發工作正在取得新的成果，並在與裝甲車、飛機甚至地面部隊的 HUD 相關的國防領域開闢了新的潛在市場。我們相信我們的產品和技術的競爭力正在開闢其他增值機會。

Also, Vuzix is now actively working with select US agencies to secure development grants to support their needs have Vuzix as a strategic US supplier of advanced technologies focused on our waveguides and microLEDs. Concurrently, we have growing relationships with leading industry players that not only are interested in working with Vuzix around our key technologies, but are potentially interested in investing to better secure their access to it.

此外，Vuzix 目前正在積極與選定的美國機構合作，以獲得開發補助金，以滿足他們的需求，使 Vuzix 成為專注於我們的波導和 microLED 的先進技術的美國戰略供應商。同時，我們與領先的行業參與者的關係日益密切，他們不僅有興趣與 Vuzix 圍繞我們的關鍵技術進行合作，而且可能有興趣進行投資以更好地確保他們獲得這些技術。

Grant will now take you through our numbers as well as provide some additional color regarding further organizational efficiencies and other matters. Grant?

格蘭特現在將帶您瀏覽我們的數據，並提供有關進一步提高組織效率和其他事項的一些額外資訊。授予？

Thank you, Paul. As Ed mentioned, the 10-K we filed this afternoon with the SEC offers a detailed explanation of our annual financials. So I'm just going to provide you with a bit of color on some of the full year as well as quarterly numbers.

謝謝你，保羅。正如艾德所提到的，我們今天下午向 SEC 提交的 10-K 詳細解釋了我們的年度財務狀況。因此，我將向您提供一些全年和季度數據的一些資訊。

For the year ended December 31, 2023, Vuzix reported $12.1 million in total revenues as compared to $11.8 million for the prior year. Product sales increased by 2% year over year, driven by increased smart glasses revenues.

截至 2023 年 12 月 31 日的年度，Vuzix 報告的總收入為 1,210 萬美元，而上一年為 1,180 萬美元。受智慧眼鏡收入增加的推動，產品銷量較去年同期成長 2%。

Sales of engineering services for the year increased 3% to $1.4 million from $1.3 million. Please note, as disclosed in our 10-K, we have a $2.9 million worth of remaining performance obligations over the revenues already recognized under a current waveguide development project. For the three months ended December 31, 2023, Vuzix reported $1.1 million in total revenues versus $2.9 million in the prior year's fourth quarter.

本年度工程服務銷售額成長 3%，從 130 萬美元增至 140 萬美元。請注意，正如我們在 10-K 中所揭露的，在目前波導開發項目中已確認的收入之外，我們還有價值 290 萬美元的剩餘履約義務。截至 2023 年 12 月 31 日的三個月，Vuzix 報告總收入為 110 萬美元，而去年第四季為 290 萬美元。

The revenue decline was primarily due to reduced unit sales of our M400 smart glasses. Please note the Q4 2023 revenue total achieved was below the initially indicated amount in early January pursuant to our cost reduction press release update has one significant customer order had to be moved from mining originally shipped in December 2023 into the 2024 revenue year due to shipment and delivery issues discovered later during formal closing procedures.

收入下降主要是由於我們的 M400 智慧眼鏡銷量減少。請注意，根據我們的成本削減新聞稿更新，2023 年第四季度實現的收入總額低於1 月初最初表示的金額，由於發貨和運輸，一個重要的客戶訂單必須從最初於2023 年12 月發貨的採礦訂單轉移到2024 年收入年度後來在正式結帳程序中發現了交付問題。

For the full year ended December 31, 2023, there was an overall gross loss of $2.6 million as compared to a $1.5 million gross profit for 2022. Included in 2023's cost of sales was $4.4 million inventory obsolescent reserve well above the $0.3 million in obsolescent reserves accrued in our 2022 fiscal year. The large additional inventory reserve amount was related to expected surplus component parts and obsolescence in excess of currently planned existing future build -- product builds in 2024 and in early 2025. And all part of our planned transition to expected new smart glass models in 2025.

截至 2023 年 12 月 31 日的全年，整體毛虧損為 260 萬美元，而 2022 年毛利為 150 萬美元。2023 年的銷售成本包括 440 萬美元的庫存廢棄準備金，遠高於 2022 財年累積的 30 萬美元的廢棄準備金。大量額外庫存儲備金額與預期的剩餘零件和報廢超過目前計劃的現有未來建造（2024 年和 2025 年初的產品建造）有關。我們計劃在 2025 年過渡到預期的新智慧玻璃型號。

No finished goods have been included in this reserve. And as a disposal value of these excess components that will not likely be used in future product models is unknown, 100% obsolescent provision was accrued.

此儲備中未包含製成品。由於這些多餘零件不太可能在未來的產品型號中使用，其處置價值未知，因此提列了100%的報廢準備。

Research and development expenses for 2023 fell 3% to $12.3 million as compared to $12.7 million for the 2022 period. The decrease was largely due to $8.9 million reduction in external development and consulting expenses, partially offset by an increase in salary and benefits-related expenses and a $0.4 million accrual for severance-related costs for staff reductions, which took place in early January 2024.

2023 年的研發費用下降 3%，至 1,230 萬美元，而 2022 年同期為 1,270 萬美元。減少的主要原因是外部開發和諮詢費用減少了 890 萬美元，部分被工資和福利相關費用的增加以及 2024 年 1 月初因裁員而產生的 40 萬美元遣散費相關費用所抵消。

Sales and marketing costs for all of 2023 rose 57% to $12.7 million from $8.1 million in 2022. With the most significant factors being a $2.1 million increase in salaries, commissions, and benefits-related expenses driven by headcount increases at $0.4 million provision for staff reductions in this area, which took place in early January 2024 and an increased bad debt reserve allowance of $1.6 million and a $0.6 million increase in advertising and tradeshow expenses.

2023 年全年的銷售和行銷成本從 2022 年的 810 萬美元成長 57% 至 1,270 萬美元。最重要的因素是，由於員工人數增加，工資、佣金和福利相關費用增加了210 萬美元，為該領域的裁員撥備了40 萬美元，該計劃於2024 年1 月初進行，壞帳準備金增加了160 萬美元，廣告和貿易展覽費用增加 60 萬美元。

General and administrative expenses for 2023 decreased 12% to $18.6 million as compared to $21 million for the 2022 period. The decrease was largely due to a $2.5 million decrease in noncash stock-based compensation, primarily related to the company's 2021 long-term incentive plan. For the full year ended December 31, 2023, the net loss was $50.1 million, or $0.79 per share, as compared to a loss of $40.8 million, or $0.64 per share, for the full year of 2022.

2023 年的一般及管理費用下降 12%，至 1,860 萬美元，而 2022 年期間為 2,100 萬美元。這一下降主要是由於非現金股票薪酬減少了 250 萬美元，這主要與該公司 2021 年的長期激勵計劃有關。截至 2023 年 12 月 31 日的全年，淨虧損為 5,010 萬美元，即每股 0.79 美元，而 2022 年全年的淨虧損為 4,080 萬美元，即每股 0.64 美元。

Now, for some balance sheet highlights. Our cash position as of December 31, 2023, was $26.6 million, and we had a net working capital position of $36.3 million. Net cash flows used in operating activities was $26.3 million for the year ended December 31, 2023, as compared to $24.5 million for the 2022 year, an increase of $1.8 million.

現在，我們來看看一些資產負債表要點。截至 2023 年 12 月 31 日，我們的現金部位為 2,660 萬美元，營運資本淨額為 3,630 萬美元。截至2023年12月31日止年度，經營活動使用的現金流量淨額為2,630萬美元，較2022年的2,450萬美元增加180萬美元。

Cash used for investing activities in 2023 was $19.3 million, down from $21.2 million in 2022. Both these amounts are well above our historical average for investments. The most significant components of this total investment were $10.5 million in cash payments on further technology development payments pursuant to our exclusive microLED technology license agreement with Atomistic and a $2.5 million investment in the preferred shares of Atomistic purchase from its founders and $5.3 million for purchases of manufacturing equipment and leasehold improvements expenditures primarily related to our waveguide plant expansion project. We are presently envisioning spending significantly less on investments in 2024 as our new and expanded waveguide manufacturing facility was completed in late 2023.

2023 年用於投資活動的現金為 1,930 萬美元，低於 2022 年的 2,120 萬美元。這兩項金額均遠高於我們的歷史投資平均值。總投資中最重要的組成部分是根據我們與Atomistic 的獨家microLED 技術許可協議支付的進一步技術開發費用的1050 萬美元現金，以及從其創始人處購買的Atomistic 優先股投資250 萬美元，以及用於購買製造設備和租賃改良支出主要與我們的波導工廠擴建工程有關。目前，我們預計 2024 年的投資支出將大幅減少，因為我們新擴建的波導製造工廠已於 2023 年底竣工。

Looking forward to the balance of 2024, we are addressing certain operational challenges highlighted as follows: reducing our operating costs by further operating cost reductions and headcount freezes to better right size our costs in relation to our planned revenues, delay or curtail discretionary and nonessential capital expenditures not related to near-term new products in R&D. As mentioned in our 10-K filing, the probable implementation of a voluntary cash salary reduction program in exchange for equity instruments offered to all salaried employees and management.

展望 2024 年，我們正在解決以下突出的某些營運挑戰：透過進一步削減營運成本和凍結員工人數來降低營運成本，以根據計劃收入更好地調整成本規模，延遲或削減可自由支配和非必要資本與研發中的近期新產品無關的支出。正如我們在 10-K 文件中所提到的，可能會實施自願性現金減薪計劃，以換取向所有受薪員工和管理層提供的權益工具。

We are also actively pursuing licensing and strategic opportunities around waveguide technologies with potential OEMs, which include the receipt of upfront licensing fees and ongoing supply agreements, as Paul mentioned, some potential strategic investment. As most of you are aware, we are in the process of going effective with our new S-3 shelf registration statement with the SEC as Vuzix has found it prudent to have one in place over the past many years. The new S-3 includes a provision for ATM, or at-the-market offering, with an investment banking firm to raise capital on the best terms if favorable market conditions develop.

我們也積極與潛在的原始設備製造商尋求有關波導技術的許可和戰略機會，其中包括收到預付許可費和持續的供應協議，正如保羅所提到的，一些潛在的戰略投資。正如你們大多數人所知，我們正在使我們向 SEC 提交的新 S-3 擱置註冊聲明生效，因為 Vuzix 發現在過去的多年裡制定一份聲明是謹慎的做法。新的 S-3 包括 ATM 或市場發行的條款，投資銀行公司可以在有利的市場條件出現時以最佳條件籌集資金。

And as pointed out in our recent 10-K, there is a cautionary going concern note to our financial statements that protecting our cash needs out over the next 12 months, there's possible financial uncertainty related to the full alleviation of all our current going concern risks. Vuzix management is confident based on its plan and history of managing its operations and successful capital raises over the past two decades, that it can fully alleviate financial risks over the next 12 months. As a result, our financial statements have been prepared on a going-concern basis. This presentation assumes that the company will continue normal business operations into the future.

正如我們最近的10-K 所指出的，我們的財務報表中有一個持續經營的警示說明，即保護我們未來12 個月的現金需求，與全面緩解我們當前所有持續經營風險相關的可能存在財務不確定性。根據 Vuzix 過去 20 年來管理營運和成功融資的計劃和歷史，Vuzix 管理層有信心在未來 12 個月內充分緩解財務風險。因此，我們的財務報表是在持續經營的基礎上編製的。本簡報假設該公司未來將繼續正常業務運作。

However, as noted in our 10-K, the company's external auditors do not share the opinion that such financial risks are yet fully alleviated and have included a cautionary note in that regard in their audit report. This is an opinion that management does not agree with.

然而，正如我們在 10-K 中指出的，該公司的外部審計師並不認為此類財務風險已完全緩解，並在審計報告中就此提出了警告性說明。這是管理層不同意的觀點。

And before concluding, we would like to apologize to our stockholders for having to take advantage of the 15-day grace period for the filing of our 10-K for 2023 with the SEC. As it should be evident to most, there were a variety of issues, assumptions, and extra efforts required to properly prepare our financial statements and complete our external audit to the satisfaction of all relevant parties. We expect this delay will not be repeated again in the near future.

在結束之前，我們謹向股東致歉，因為我們必須利用 15 天的寬限期向 SEC 提交 2023 年 10-K 報告。對大多數人來說應該顯而易見的是，為了正確準備我們的財務報表並完成我們的外部審計以使所有相關方滿意，需要各種各樣的問題、假設和額外的努力。我們預計這種延遲在不久的將來不會再次發生。

With that, I would like to turn the call back over to Paul.

說到這裡，我想把電話轉回給保羅。

Thank you, Grant. With that, I would like to now turn the call back over to the operator for Q&A.

謝謝你，格蘭特。現在，我想將電話轉回給接線員進行問答。

(Operator instructions) Christian Schwab, Craig-Hallum Capital.

（操作員說明）Christian Schwab，Craig-Hallum Capital。

Hey, guys. This is Tyler Burmeister on behalf of Christian. Thanks for letting us ask a few questions here. So I guess, first, I guess, maybe just to kind of get to it. We're into April now Q1, it's closed just a couple of weeks ago. I'm sure books aren't finalized, but any color you can give us so far, kind of how Q1 shakes out, maybe directionally what revenue looks like as well as a cash balance early view for Q1?

嘿，夥計們。我是泰勒·伯邁斯特，代表克里斯蒂安。感謝您讓我們在這裡問幾個問題。所以我想，首先，我想，也許只是為了達到目的。我們現在已經進入四月第一季度，幾週前就關閉了。我確信書籍尚未最終確定，但到目前為止您可以給我們任何顏色嗎？

I don't know if Grant wants to get into cash balances and stuff. I can tell you that it will be an uptick from our Q4 numbers, we believe.

我不知道格蘭特是否想涉足現金餘額之類的領域。我可以告訴你，我們相信，這將比第四季的數字上升。

And on the cash side, it would generally sort of follow the last couple of quarters as far as net changes in cash balances minus the funds that were flowing out Atomistic for the license support. So it's down a little, but should not be an unexpected amount.

在現金方面，就現金餘額的淨變化減去為獲得許可支持而流出 Atomistic 的資金而言，通常會遵循過去幾季的變化。所以下降了一點，但幅度應該不會出乎意料。

Sorry. No, fair enough. And then I guess maybe another Grant, could you help maybe just level set us these cost-cutting efforts that you're making, maybe you called out $8 million on an annual level you're looking to reduce previously. Maybe how far along are you into that? Or what's the baseline level you're thinking that $8 million has come off of, just given some of these more one-time in nature expenses to a couple of moving pieces there, maybe help level set everyone.

對不起。不，很公平。然後我想也許是另一筆撥款，你能幫我們設定一下你正在做的這些削減成本的努力嗎？也許你對此進行了多遠？或者，您認為 800 萬美元的基線水平是多少，只需將其中一些一次性的性質費用分配給那裡的幾個移動部件，也許可以幫助每個人設定水平。

I mean, we still stand by the $8 million sort of annualized target. I mean, I am not saying Q1. Some of the costs came in a little higher than we'd hoped because it takes time to slow down the tanker, but we're honestly looking at more cuts. And we feel we can get our operating expenses under $20 million on an annual basis, and we'd love to get it closer to 15%. So we're looking at potentially another 30% of cuts to operating expenses. We'd like to try to implement in the next quarter while we wait for our business to accelerate as fast as we're all expecting.

我的意思是，我們仍然堅持 800 萬美元的年化目標。我的意思是，我不是說 Q1。一些成本比我們預期的要高一些，因為油輪減速需要時間，但老實說，我們正在考慮更多的削減。我們認為我們可以將每年的營運費用控制在 2000 萬美元以下，並且我們希望接近 15%。因此，我們正在考慮將營運費用再削減 30%。我們希望在下個季度嘗試實施，同時等待我們的業務以我們預期的速度加速。

Okay. That's very helpful. I guess maybe last one here, Paul, you said at least one, potentially two or another one closely behind aero defense firms for their OEM opportunities, they've been working for a while that you expect to ramp this year. Any framework you can give us for what the potential financial terms that might look like? Or what numbers might look like around that? It all would be helpful.

好的。這非常有幫助。我想也許是這裡的最後一個，保羅，你說至少有一家，可能有兩家或另一家密切關注航空防禦公司的 OEM 機會，他們已經工作了一段時間，你預計今年會增加。您能給我們任何框架來說明潛在的財務條款可能會是什麼樣子嗎？或者這附近的數字可能是什麼樣的？這一切都會有幫助的。

Yeah, I can help you there. There's actually four-plus programs right now that are really active. There are two of them that are literally -- we're on the front end of delivering their very first production devices. The kinds of unit prices, it's in the -- anywhere from $2,500 to $5,000 system and the kinds of volumes that we're talking about are somewhere 2,500 to upwards of 10,000 pieces.

是的，我可以在那裡幫助你。現在實際上有四個以上的計劃非常活躍。其中有兩個是名副其實的——我們正處於交付他們第一批生產設備的前端。單價的種類，從 2,500 美元到 5,000 美元的系統，我們談論的數量是 2,500 到 10,000 件以上。

That won't all be at once, of course, but we should, knock on wood, see one, if not two, of those programs start to roll this year. It's to the point where they're out showing customers and the likes. We're getting very positive feedback. So it's right on the cusp of kicking off.

當然，這不會立即全部完成，但我們應該，敲木頭，看到其中一個（如果不是兩個的話）今年開始啟動。他們已經到了向顧客展示之類的地步了。我們得到了非常正面的回饋。所以它正處於啟動的風口浪尖。

All right. That sounds great. That's all for me, guys. Appreciate it.

好的。聽起來很棒。這就是我的全部了，夥計們。欣賞它。

Aaron Martin, AIGH Investments.

亞倫馬丁，AIGH 投資公司。

I apologize. The start [on this pressed] earlier in the call when we have a technical difficulty. But can you guys talk a little more on the waveguide the big facility in terms of -- at what level does it have -- you talked about being able to produce hundreds of thousands. At what level does it have to get to, to be at scale from a cost perspective?

我道歉。當我們遇到技術困難時，在電話會議的早期開始[按此鍵]。但你們能多談談波導這個大型設施嗎──它有什麼水準──你們談到能夠生產數十萬個。從成本角度來看，它必須達到什麼水準才能達到規模？

Well, let me say, Aaron, that the facility right now is at the hundreds of thousands of level for production. And there's very little new investments that we need to make to graduate that up to 1 million-plus units handling. I would also suggest that to get beyond that, it's not a big investment, and we don't need to expand the facility in the process to do it. We could probably out of the facility that we're in right now, run three times those kinds of numbers. So we're set, we're in a good spot to crank up production, and the investments we think were well worth it.

好吧，讓我說，亞倫，該設施現在的生產規模達到了數十萬。我們幾乎不需要進行任何新投資就可以處理多達 100 萬台以上的設備。我還建議，要實現這一目標，這並不是一項大投資，而且我們不需要在過程中擴大設施。我們可能可以在我們現在所在的設施之外運行三倍於這些數量的數據。所以我們已經準備好了，我們處於提高產量的有利位置，我們認為這些投資是非常值得的。

We talked about this facility getting the waveguides out at a cost point (inaudible) lower than anyone else. My question is, at what level of build do you have to be out with your existing capacity to get the cost -- the per waveguide production cost down to the target levels?

我們討論過該設施以比其他任何人都低的成本點（聽不清楚）獲得波導。我的問題是，您必須利用現有產能達到什麼水準才能將成本（每個波導的生產成本）降至目標水準？

Yeah. So first of all, let me say that. I don't care who's out there trying to produce these right now. If they're making them in the 10,000-piece quantities, the prices are not going to be better than Vuzix. If they're making them out 100,000 and we're making them out 100,000, they're not going to be better than Vuzix. So wherever we are on the scale path that we're on, these other folks, for the most part, are so expensive. But honestly, I don't even know how products are going to be able to go into the marketplace with $200 to $500 kind of price points on waveguides.

是的。首先，我要說的是。我不在乎現在誰在嘗試生產這些。如果他們以 10,000 件的數量生產，價格不會比 Vuzix 好。如果他們的銷量達到 100,000，而我們的銷量也達到 100,000，他們不會比 Vuzix 更好。因此，無論我們處於規模發展的哪個階段，這些其他人在大多數情況下都非常昂貴。但老實說，我甚至不知道波導價格為 200 至 500 美元的產品如何進入市場。

So even now, when we're only making small-unit volumes, we're highly competitive. That said, even making 20,000 pieces, we can be in the really nicely scaled kinds of volume prices. We don't give -- I want to be careful how I say that because we're not sharing with everybody what those numbers are and how that all adds up because, of course, our margins aren't a lot of people's business. But it scales pretty easily, Aaron, to get to good price points.

因此，即使是現在，當我們只生產小批量產品時，我們仍然具有強大的競爭力。也就是說，即使生產 20,000 件，我們也能獲得非常好的批量價格。我們不給予——我想小心我的說法，因為我們不會與每個人分享這些數字是什麼以及所有這些數字是如何加起來的，因為當然，我們的利潤與許多人無關。但它很容易擴展，亞倫，以獲得良好的價格點。

Okay. And then on the cost-cutting measures, you talked about getting the operating expenses down to, say, $20 million, is there a timeframe for that, rough --

好的。然後關於成本削減措施，您談到將營運費用降低到 2000 萬美元，是否有一個大致的時間表--

Our goal would be to accomplish a next round of cuts in the next quarter. And I should stress that, that these are on a cash basis. So we do carry a pretty good burden of non-stock -- noncash stock compensation related to the LTIP. But I mean, on an annual basis, I think by July 1, we'll be there. And the team is going to work hard to make some difficult decisions to do that without sacrificing our future in doing so.

我們的目標是在下個季度完成下一輪削減。我應該強調的是，這些都是以現金為基礎的。因此，我們確實承擔了相當大的非股票負擔——與 LTIP 相關的非現金股票補償。但我的意思是，從每年的角度來看，我認為到 7 月 1 日，我們就會實現這一目標。我們的團隊將努力做出一些艱難的決定來實現這一目標，同時又不會犧牲我們的未來。

Okay, great. Thank you so much.

好的，太好了。太感謝了。

Thank you, Aaron.

謝謝你，亞倫。

Thank you. There are no further questions at this time. I'd like to turn the floor back over to Paul for closing comments.

謝謝。目前沒有其他問題。我想把發言權交還給保羅，讓他發表最後的評論。

Thank you, operator. I would like to thank everyone for your interest and participation on today's call. We will look forward to speaking with you again in May when we report our Q1 2024 quarterly results. Again, have a nice evening, everybody.

謝謝你，接線生。我要感謝大家對今天電話會議的關注與參與。我們期待在 5 月報告 2024 年第一季季度業績時再次與您交談。再次祝福大家有個愉快的夜晚。

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。