Vuzix Corp (VUZI) 2024 Q4 法說會逐字稿

Greetings, and welcome to the Vuzix fourth-quarter and full-year ending December 31, 2024, financial results and business update conference call. (Operator Instructions) As a reminder, this call is being recorded.

大家好，歡迎參加 Vuzix 截至 2024 年 12 月 31 日的第四季度和全年財務業績和業務更新電話會議。（操作員指示）提醒一下，此通話正在被錄音。

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，您可以開始啦。

Thank you, operator, and good afternoon, everyone. Welcome to the Vuzix fourth-quarter and 2024 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.

謝謝接線員，大家下午好。歡迎參加 Vuzix 截至 12 月 31 日的第四季和 2024 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 的執行長 Paul Travers；以及我們的財務長 Grant Russell。

Before I turn the call over to Paul, I would 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.

在我將電話轉給保羅之前，我想提醒您，在這次電話會議上，管理層準備好的評論可能包含前瞻性陳述，這些陳述受風險和不確定性的影響，管理層可能會在問答環節做出額外的前瞻性陳述。因此，該公司主張《1995 年私人證券訴訟改革法案》中所包含的前瞻性陳述安全港的保護。

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, changes in business strategy or development plans, the ability to attract and retain qualified personnel as well as changes in legal and regulatory requirements.

由於某些因素，包括但不限於一般經濟和商業狀況、競爭因素、業務戰略或發展計劃的變化、吸引和留住合格人才的能力以及法律和監管要求的變化，實際結果可能與任何前瞻性陳述所預期的結果存在重大差異。

In addition, any projections as to the company's future performance represent management's estimates as of today, March 13, 2025. Vuzix assumes no obligation to update these projections in the future as market conditions change.

此外，對公司未來業績的任何預測均代表管理層截至 2025 年 3 月 13 日的估計。Vuzix 不承擔隨著市場條件的變化而更新這些預測的義務。

This afternoon, the company issued a press release announcing its financial 2024 results and filed its 10-K with the SEC. So participants in this call who may not have 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，該公司發布了一份新聞稿，宣布了 2024 年財務業績，並向美國證券交易委員會提交了 10-K 報告。因此，參加本次電話會議但尚未查看這些文件的參與者可能希望查看這些文件，因為公司將提供今天電話會議上討論的結果的摘要。

Today's call may include certain non-GAAP financial measures. When required, reconciliation to the most directly comparable financial measure 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 GAAP 財務指標。當需要時，可以根據 GAAP 計算和呈現的最直接可比較財務指標的對帳表，在 sec.gov 上的公司 10-K 年度文件中可以找到，也可以在 www.vuzix.com 上找到。

I'll 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'll provide an overview of the company's fourth-quarter and full-year financial results, after which we'll move on to the question-and-answer session. Paul?

現在，我將把電話轉給 Vuzix 的執行長 Paul Travers，他將概述公司的營運業績和業務前景。然後，保羅將把電話轉給 Vuzix 的財務長格蘭特·拉塞爾 (Grant Russell)，後者將概述公司第四季度和全年財務業績，之後我們將進入問答環節。保羅？

Thank you, Ed. Welcome to the Vuzix Q4 and full-year 2024 conference call. In recent years, the wearable computer and AR industry has seen significant changes progressing in maturity and acceptance. External factors such as COVID-19 have shown the role of these enterprise smart glasses in improving workplace efficiencies. As the industry has developed, Vuzix has continued to invest and adjust its strategy to align with the future direction of the market.

謝謝你，埃德。歡迎參加 Vuzix 2024 年第四季和全年電話會議。近年來，穿戴式電腦和 AR 產業發生了重大變化，其成熟度和接受度不斷提高。新冠疫情等外部因素彰顯了這些企業智慧眼鏡在提高工作效率方面的作用。隨著產業的發展，Vuzix 不斷投入並調整策略以適應市場的未來方向。

On the technology front, Vuzix has been discussing ours and the industry's progress on waveguides and the micro displays that drive them for years. And we're now approaching a pivotal moment, which should increase adoption greatly.

在技​​術方面，Vuzix 多年來一直在討論我們和業界在波導以及驅動波導的微顯示器方面取得的進展。我們現在正面臨一個關鍵時刻，這將大大提高採用率。

Innovation in these technologies has finally enabled the development of all-day wearable smart glasses with high-performance displays and industry first, as we've long emphasized our waveguide optics work seamlessly with a variety of third parties supporting enterprise, medical and our OEM business, including military and defense sectors, and now with the broader consumer markets following on.

這些技術的創新最終推動了具有高性能顯示器和業界首創的全天候可穿戴智慧眼鏡的開發，因為我們長期以來一直強調我們的波導光學元件可以與支援企業、醫療和我們的 OEM 業務（包括軍事和國防部門）的各種第三方無縫協作，現在更廣泛的消費市場也緊隨其後。

Despite the noise and pace of change in the industry, Vuzix remains focused on its pursuit to develop the best mousetrap to solve and support the enterprise and other markets we address as they unfold. We continue to enhance the performance, the features that matter, and of course, the cost competitiveness of our waveguides, arguably the most critical component of AI and AR smart glasses and other wearables.

儘管行業充滿噪音和變化速度，Vuzix 仍然專注於開發最好的捕鼠器來解決和支持企業和其他市場的發展。我們不斷增強波導的性能、重要功能，當然還有成本競爭力，可以說是 AI 和 AR 智慧眼鏡及其他穿戴式裝置的最關鍵組件。

Our commitment to investing in and advancing our core waveguide technology has led to one of the most significant developments in Vuzix's recent history, the establishment of a strategic partnership with leading ODM supplier, Quanta Computer. This collaboration, besides highlighting the credibility of what Vuzix has created over the years, has facilitated the development of multiple smart glasses reference designs based on our waveguide technology and is proving to help open up the markets in general for us.

我們致力於投資和推進我們的核心波導技術，這促成了 Vuzix 近期歷史上最重要的發展之一，即與領先的 ODM 供應商廣達電腦建立戰略合作夥伴關係。此次合作除了凸顯了 Vuzix 多年來所創造成果的可信度之外，還促進了基於我們的波導技術的多種智慧眼鏡參考設計的開發，並被證明有助於我們開拓整個市場。

Our partnership with Quanta, reinforced by their $20 million multiphase investment, underscores our shared vision of revolutionizing the AR and AI industry. Through this collaboration, Vuzix is poised to supply millions of cutting-edge and cost-competitive waveguides for AR and AI-driven smart glasses to Quanta's extensive OEM client base.

我們與 Quanta 的合作，加上他們 2000 萬美元的多階段投資，凸顯了我們徹底改變 AR 和 AI 產業的共同願景。透過此次合作，Vuzix 準備向廣達廣泛的 OEM 客戶群提供數百萬個用於 AR 和 AI 驅動的智慧眼鏡的尖端且具有成本競爭力的波導。

The first $10 million tranche of this investment was received in September of 2024, and we remain on track to meet the milestones required to unlock the remaining two $5 million tranches as anticipated. At CES 2025, we introduced our Ultralite Pro AR smart glasses platform designed for specific enterprise verticals and market use cases. These binocular full-color see-through glasses, powered by Qualcomm's AR1 processor, fill a critical gap in the current market.

該投資的第一筆 1,000 萬美元款項已於 2024 年 9 月收到，我們仍有望按預期解鎖剩餘兩筆 500 萬美元款項所需的里程碑。在 2025 年國際消費電子展 (CES 2025) 上，我們推出了專為特定企業垂直領域和市場用例設計的 Ultralite Pro AR 智慧眼鏡平台。這款雙目全彩透視眼鏡採用高通AR1處理器，填補了目前市場的關鍵空白。

The response has been overwhelmingly positive, and we are already receiving inbound interest from OEMs and white-label partners. The Ultralite Pro AR smart glasses platform was also awarded Best in Show by Wareable, the authority on wearable technology. Further at CES 2025, we introduced the Ultralite Audio smart glasses platform, a new upgrade to the base Ultralite platform, which integrates dual speakers and noise-canceling microphone for enhanced audio and voice interaction.

反應非常積極，我們已經收到了來自 OEM 和白標合作夥伴的興趣。Ultralite Pro AR智慧眼鏡平台也榮獲穿戴式科技權威機構Wareable頒發的最佳展示獎。此外，在 CES 2025 上，我們推出了 Ultralite Audio 智慧眼鏡平台，這是基礎 Ultralite 平台的全新升級，整合了雙揚聲器和降噪麥克風，可增強音訊和語音互動。

And more recently, at Mobile World Congress in Barcelona, Microoled, a Grenoble-based maker of AR smart glasses and their ActiveLook software platform, along with the semiconductor company, STMicroelectronics, announced a reference design for AR smart glasses based on the Ultralite Audio smart glasses platform from Vuzix, featuring Microoled's ActiveLook software. This reference design, supporting the ActiveLook ecosystem, will enable third-party eyewear manufacturers to create diverse smart glasses models for sports and outdoor applications that require mission-critical information in real time and on the move.

最近，在巴塞隆納舉行的世界行動通訊大會上，總部位於格勒諾布爾的 AR 智慧眼鏡製造商 Microoled 及其 ActiveLook 軟體平台與半導體公司意法半導體 (STMicroelectronics) 聯合發布了基於 Vuzix 的 Ultralite 智慧眼鏡平台的 AR 智慧眼鏡參考設計，並採用了 Microoled 的 ActiveLook 軟體。此參考設計支援ActiveLook生態系統，將使第三方眼鏡製造商能夠為需要即時和移動關鍵任務資訊的運動和戶外應用創建多樣化的智慧眼鏡模型。

Our Z100 Ultralite AR smart glasses platform, launched at CES 2024, is aimed at building an ecosystem attracting early adopters and laying the foundation for our OEM and white-label business. In November, we strategically reduced the price of the Z100 to accelerate adoption among ecosystem partners effectively, OEMs and early adopters.

我們在 CES 2024 上推出的 Z100 Ultralite AR 智慧眼鏡平台旨在建立一個吸引早期採用者的生態系統，並為我們的 OEM 和白標業務奠定基礎。11月，我們策略性地降低了Z100的價格，以有效加速生態系統合作夥伴、OEM和早期採用者的採用。

This move has led to increased demand and follow-on orders for this AI-powered smart glasses. The Z100 is being selected for its all-day wearability, seamless heads-up display integration and competitive pricing, which supports high-volume sales. The Vuzix Z100 smart glasses are being focused on white-label and OEM customers, and we are actively fielding multiple RFQ opportunities based on this platform.

此舉導致該款人工智慧眼鏡的需求和後續訂單增加。Z100 之所以被選中，是因為其全天候佩戴性、無縫平視顯示器整合和具有競爭力的定價，從而支援大批量銷售。Vuzix Z100 智慧眼鏡主要針對白標和 OEM 客戶，我們正在積極處理基於該平台的多個 RFQ 機會。

As we have previously indicated, we have been steadily pivoting towards the ODM/OEM side of our business, affording strong development and supply partnerships throughout the industry. We have strengthened our presence in the defense and industrial sectors where our differentiated solutions are meeting mission-critical demands.

正如我們之前所指出的，我們一直在穩步轉向業務的 ODM/OEM 方面，為整個行業提供強大的開發和供應合作夥伴關係。我們加強了在國防和工業領域的影響力，我們差異化的解決方案滿足了關鍵任務的需求。

Our partnership with Thales, Garmin, L3Harris and others yet to be named, demonstrate our ability to deliver differentiated higher-margin solutions that align well with both our customers' needs and Vuzix's long-term growth strategy. In the enterprise software ecosystem, our acquisition of Moviynt in November of 2022 is allowing us to expand our offerings within the logistics vertical with end-to-end solutions. We expect these new solutions will be white labeled and/or OEM-ed, and in some cases, carry the Vuzix brand.

我們與泰雷茲、Garmin、L3Harris 以及其他尚未透露名稱的公司的合作，證明了我們有能力提供差異化、高利潤的解決方案，這些解決方案既符合我們客戶的需求，也符合 Vuzix 的長期成長策略。在企業軟體生態系統中，我們於 2022 年 11 月收購了 Moviynt，這使我們能夠透過端到端解決方案擴展我們在物流垂直領域的產品服務。我們預計這些新的解決方案將採用白色標籤和/或 OEM 形式，並且在某些情況下帶有 Vuzix 品牌。

We have multiple customers that are employing Mobilium by Moviynt software and have moved from the proof-of-concept stage to formal rollouts. We are listening to our growing customer base and evolving our Mobilium software beyond picking and packing workflows to deliver end-to-end enterprise solutions that extend beyond warehousing and logistics as well.

我們有多位客戶正在使用 Mobilium by Moviynt 軟體，並且已經從概念驗證階段進入正式推出階段。我們正在傾聽不斷增長的客戶群的意見，並不斷改進我們的 Mobilium 軟體，使其不再局限於挑选和包裝工作流程，而是提供超越倉儲和物流的端到端企業解決方案。

In parallel, we continue to engage with our stable ISV partners to drive broader adoption of smart glasses in the enterprise sector. We've been working with these ISVs for some time now, as you all know, and they are seeing the business opportunities finally coming to fruition also. Together, we aim to deliver intelligent all-day wearable solutions, integrating hardware and software to drive tangible business outcomes and productivity.

同時，我們繼續與穩定的 ISV 合作夥伴合作，推動智慧眼鏡在企業領域的更廣泛應用。眾所周知，我們已經與這些 ISV 合作了一段時間，他們也看到了商業機會終於實現。我們共同的目標是提供智慧全天候穿戴解決方案，整合硬體和軟體，以推動實際的業務成果和生產力。

As we have repeatedly stated, the primary differentiator for Vuzix is our ability to make a quality waveguide and volume at an affordable cost. With our proprietary technologies, we can process in a timely fashion hundreds of waveguides per single run, while the bulk of our competitors are capped at a dozen waveguides or so on an industry standard 300-millimeter wafer, requiring a much more time-consuming process.

正如我們一再指出的那樣，Vuzix 的主要差異化因素是我們能夠以實惠的成本製造出高品質的波導和音量。憑藉我們的專有技術，我們可以在一次運行中及時處理數百個波導，而我們的大多數競爭對手在行業標準的 300 毫米晶圓上只能處理十幾個波導左右，因此需要更加耗時的過程。

This advantage comes from a custom-design process and equipment, extensive experience, and developed IP, enabling us to quickly design and manufacture smart glasses and add new features. To bolster this edge, our patent portfolio has grown by 50% in the past two years to over 425 patents and pending patents, covering a wide range of optical waveguide and wearable computing technologies, solidifying our AR industry leadership.

這項優勢來自於客製化設計流程和設備、豐富的經驗以及開發的IP，使我們能夠快速設計和製造智慧眼鏡並添加新功能。為了增強這一優勢，我們的專利組合在過去兩年中增長了 50%，達到 425 多項專利和正在申請的專利，涵蓋了廣泛的光波導和可穿戴計算技術，鞏固了我們在 AR 行業的領先地位。

Our ODM/OEM business has the potential to start ramping up meaningfully. With Quanta as our partner and with our major computing firms scaling production, our ODM/OEM business will grow. We anticipate an increase in our reference designs and OEM customer count and are actively involved in multiple projects with Quanta that have potential to create significant business opportunities for both entities. Quanta's extensive scale and expertise in electronic product manufacturing, combined with Vuzix's proprietary waveguides and smart glasses technology, form a powerful alliance.

我們的 ODM/OEM 業務有潛力開始大幅成長。有了廣達作為我們的合作夥伴並且隨著我們的主要計算公司擴大生產，我們的 ODM/OEM 業務將會成長。我們預計我們的參考設計和 OEM 客戶數量將會成長，並積極參與與廣達的多個項目，這些項目有可能為兩個實體創造龐大的商機。廣達在電子產品製造方面的龐大規模和專業知識，加上 Vuzix 專有的波導和智慧眼鏡技術，形成了一個強大的聯盟。

We foresee that this collaboration will result in high-volume production of our waveguides and AR components, ultimately reaching millions of units and driving substantial revenue growth for Vuzix. Moreover, we are engaging in various stages of discussions with several other ODMs who are already designing or interested in designing and manufacturing AI/AR smart glasses for widespread consumer use.

我們預見，此次合作將實現波導和 AR 組件的大量生產，最終達到數百萬台，並推動 Vuzix 收入大幅成長。此外，我們正在與其他幾家 ODM 進行不同階段的討論，這些 ODM 已經在設計或有興趣設計和製造供廣泛消費者使用的 AI/AR 智慧眼鏡。

In 2025, Vuzix anticipates significant growth in customer wins across our OEM and enterprise businesses as the industry stabilizes and expands. We expect multiple design wins for both consumer and enterprise OEM products, where Vuzix will supply optical waveguides and display engines.

到 2025 年，隨著行業的穩定和擴張，Vuzix 預計我們的 OEM 和企業業務的客戶數量將顯著增長。我們預計將贏得多個消費者和企業 OEM 產品的設計，其中 Vuzix 將提供光波導和顯示引擎。

In the defense and security markets, we foresee multiple programs with current OEMs and defense contractors, leading to production engagements and orders for customized designs. In enterprise, we are nurturing numerous customer wins that are being supported by measured success that exceed customer benchmarks by an order of magnitude.

在國防和安全市場，我們預見到與當前原始設備製造商和國防承包商的多個項目，從而帶來生產約定和客製化設計訂單。在企業中，我們正在培育眾多客戶的成功，這些成功得到了超越客戶基準一個數量級的衡量成功的支持。

In parcel processing, for example, Moviynt's newly introduced Mobilium application running on Vuzix smart glasses is seeing parcel scanning to bin placement speeds clocked at a fraction of the current methods from frontline workers. For new workers, where turnover is high, we are seeing scan-to-bin placement improvements of upwards of 250% in some instances.

例如，在包裹處理方面，Moviynt 新推出的在 Vuzix 智慧眼鏡上運行的 Mobilium 應用程式可以將包裹掃描到箱子放置的速度降低到當前一線工人方法的一小部分。對於流動率較高的新員工，我們在某些​​情況下看到掃描到箱安置率提高了 250% 以上。

In a typical warehouse with 80 pickers, each picking 300 items per day from pallets, a 15% to 20% improvement in efficiency would enable the same workforce to pick an additional 3,600 to 4,800 items per day, significantly increasing daily throughput without adding staff.

在一個典型的倉庫中，有 80 名揀貨員，每人每天從托盤上揀選 300 件物品，效率提高 15% 到 20% 將使同樣的勞動力每天能夠多揀選 3,600 到 4,800 件物品，在不增加員工的情況下顯著提高每日吞吐量。

Summarized, as a result of these fully demonstrated KPIs, key performance indicators, which stand up on their own, we expect these customers will be placing follow-on orders that have the potential to effectively consume all of our existing M400 inventories. And as a result of our anticipated conversion of our existing M-Series inventory into cash, Vuzix is well on its way to introducing next-generation purpose-built products based directly on the customer feedback in the [veil] and our network of ISV partners and resellers.

總而言之，由於這些 KPI（關鍵績效指標）得到了充分展示，我們預計這些客戶將會下達後續訂單，這些訂單有可能有效消耗我們所有現有的 M400 庫存。由於我們預計將現有的 M 系列庫存轉換為現金，Vuzix 將根據 [veil] 的客戶反饋以及我們的 ISV 合作夥伴和經銷商網絡，順利推出下一代專用產品。

We have also recently received a commercial order for Vuzix Shield, which consumes our remaining inventory and planned production of this first-generation model, and we are currently responding to RFQs that will effectively consume our remaining M4000 inventory.

我們最近也收到了 Vuzix Shield 的商業訂單，這將消耗我們剩餘的庫存和第一代型號的計劃產量，我們目前正在響應 RFQ，這將有效消耗我們剩餘的 M4000 庫存。

Let me add, Vuzix enters 2025 with a strong financial foundation. As of year-end 2024, we had approximately $18 million in cash and cash equivalents, reflecting our disciplined cost management and capital-raising efforts. This includes $8.2 million raised through our at-the-market facility in Q4, providing additional flexibility to support our growth initiatives.

我要補充一點，Vuzix 憑藉強大的財務基礎邁入 2025 年。截至 2024 年底，我們擁有約 1,800 萬美元的現金和現金等價物，這反映了我們嚴格的成本管理和籌集資金的努力。其中包括第四季度透過市場融資工具籌集的 820 萬美元，為支持我們的成長計畫提供了額外的靈活性。

Additionally, we are making strong progress towards meeting milestones required for the remaining $10 million investment from Quanta Computer, which will further reinforce our liquidity position. Finally, as the aforementioned business unfolds, we expect a large portion of our finished inventories to be converted to cash.

此外，我們在實現廣達電腦剩餘的 1000 萬美元投資所需的里程碑方面取得了重大進展，這將進一步增強我們的流動性狀況。最後，隨著上述業務的展開，我們預期大部分成品庫存將轉化為現金。

Grant will now take you through our financial numbers. Grant?

格蘭特現在將向您介紹我們的財務數據。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 Ed 所提到的，我們今天下午向美國證券交易委員會提交的 10-K 表對我們的年度財務狀況進行了詳細的說明。因此，我將向您提供一些全年和季度數據的詳細資訊。

For the three months ended December 31, 2024, we reported $1.3 million in total revenues as compared to $1.1 million in the prior year's comparable fourth quarter. The revenue increase was primarily due to higher unit sales of our M400 smart glasses. For the full year ended December 31, 2024, Vuzix reported $5.8 million in total revenues as compared to $12.1 million for the prior year.

截至 2024 年 12 月 31 日的三個月，我們報告的總收入為 130 萬美元，而去年同期的第四季為 110 萬美元。收入增加主要歸因於我們的 M400 智慧眼鏡的銷售增加。截至 2024 年 12 月 31 日的全年，Vuzix 報告的總收入為 580 萬美元，而前一年為 1,210 萬美元。

Product sales decreased by 58% year over year as unit sales of our M400 product declined compared to the previous year when two major distributors placed significant stocking orders in the first half of 2023, representing 54% of our total product sales in 2023. Sales of engineering services for the year ended December 31, 2024, were $1.3 million as compared to $1.4 million in 2023, a decrease of 7%. Please note, as disclosed in our 10-K, we have $2.1 million worth of remaining performance obligations over revenues already recognized under a current waveguide development project.

產品銷售額年減 58%，原因是我們的 M400 產品的單位銷售量與前一年相比有所下降，當時兩家主要經銷商在 2023 年上半年下了大量庫存訂單，占我們 2023 年總產品銷售額的 54%。截至 2024 年 12 月 31 日止年度的工程服務銷售額為 130 萬美元，而 2023 年為 140 萬美元，下降了 7%。請注意，正如我們的 10-K 報表中所揭露的，我們在目前波導開發項目下已確認的收入中還有價值 210 萬美元的剩餘履約義務。

For the full year ended December 31, 2024, there was an overall gross loss of $5.6 million as compared to a loss of $2.6 million for 2023. The larger gross loss for 2024 was primarily driven by further inventory obsolescence reserves included in cost of sales and increased unapplied manufacturing overhead costs of $2.1 million due to reduced further builds of the M400 finished goods in the second half of 2024.

截至 2024 年 12 月 31 日的全年總毛虧損為 560 萬美元，而 2023 年的虧損為 260 萬美元。2024 年毛虧損擴大的主要原因是銷售成本中包含的進一步庫存過時儲備，以及由於 2024 年下半年 M400 成品進一步生產減少導致未應用製造費用增加 210 萬美元。

The larger additional inventory reserve amounts were related to the affected surplus components and obsolescent provision in excess of currently planned existing future product builds in 2025 and early 2026, and all part of our planned transition to expected new smart glasses models now being developed. No finished goods have been included in these inventory reserves. And as the ultimate realizable value of these excess components that may not be used in future products build is unknown at this time, 100% obsolescence provision was accrued.

更大的額外庫存儲備金額與受影響的剩餘組件和過時撥備有關，這些撥備超出了目前計劃的 2025 年和 2026 年初的現有未來產品產量，所有這些都是我們計劃過渡到目前正在開發的預期新型智能眼鏡型號的一部分。該等存貨儲備並未包括任何製成品。由於這些多餘零件可能不會在未來的產品製造中使用，因此目前其最終可實現價值尚不清楚，因此提列了 100% 的陳舊準備金。

Research and development expenses for 2024 fell 22% to $9.6 million as compared to $12.3 million for the 2023 period. The decrease was primarily due to a $1.6 million reduction in salary and benefits, related expenses due to headcount decreases, and a $1 million drop in external development costs. For the fourth quarter of December 31, 2024, research and development expenses were $2.2 million as compared to $3.5 million in the 2023 fourth quarter. The decrease, again, was driven by headcount reduction.

2024 年研發費用從 2023 年的 1,230 萬美元下降 22% 至 960 萬美元。下降的主要原因是工資和福利減少160萬美元、因員工人數減少而產生的相關費用以及外部開發成本減少100萬美元。 2024 年 12 月 31 日第四季度，研發費用為 220 萬美元，而 2023 年第四季為 350 萬美元。此次下降再次是由於員工人數減少所致。

Sales and marketing costs for all of 2024 fell to $8.2 million from $12.7 million in 2023, a reduction of $4.5 million or 36%. The most significant factors for these expense reductions include a $1.6 million decrease in advertising and trade show expenses and a $1.6 million reduction in salary and benefit expenses driven by headcount decreases. For the fourth quarter of December 31, 2024, sales and marketing expenses were $2 million as compared to $4.8 million in the 2023 fourth quarter. The decrease, again, was driven by reductions in headcount and advertising expenses, changes in bad debt provisions and severance accruals booked in Q4 of 2023.

2024 年全年銷售和行銷成本從 2023 年的 1,270 萬美元降至 820 萬美元，減少 450 萬美元，即 36%。這些費用削減的最重要因素包括廣告和貿易展費用減少 160 萬美元，以及由於員工人數減少而導致的工資和福利費用減少 160 萬美元。2024 年 12 月 31 日第四季度，銷售和行銷費用為 200 萬美元，而 2023 年第四季為 480 萬美元。再次，這一下降是由於員工人數和廣告費用的減少、壞帳準備金的變化以及 2023 年第四季度計提的遣散費所致。

General and administrative expenses for 2024 decreased 7% to $17.2 million as compared to $18.6 million for the 2023 period. The decrease was largely due to a $1.4 million decline in noncash stock-based compensation and a $1.1 million decline in salary and benefit-related expenses due to headcount reductions, partially offset by a $1 million increase in investor relations. For the fourth quarter ending December 31, 2024, general and administrative expenses were $4.3 million as compared to $4.7 million in the 2023 fourth quarter. The decrease, again, was driven by headcount reductions.

2024 年一般及行政費用較 2023 年的 1,860 萬美元下降 7% 至 1,720 萬美元。下降的主要原因是非現金股票薪酬減少 140 萬美元，以及因員工人數減少導致的工資和福利相關費用減少 110 萬美元，但投資者關係費用增加 100 萬美元，部分抵消了這一下降。截至 2024 年 12 月 31 日的第四季度，一般及行政費用為 430 萬美元，而 2023 年第四季為 470 萬美元。此次下降再次是由於員工人數減少所致。

For the fourth quarter ended December 31, 2024, the net loss was $13.7 million or $0.16 per share as compared to a net loss of $19.9 million or $0.32 per share for the fourth quarter of 2023. For the full year ended December 31, 2024, the net loss was $73.5 million or $1.08 per share as compared to a net loss of $50.1 million or 79% for the full year of 2023. The increased net loss was mostly attributable to the write-off of our technology license and investment in Atomistic, which was recorded in the second quarter of 2024. Excluding this write-off, the net loss for 2024 was $6.9 million less than the 2023 net loss.

截至 2024 年 12 月 31 日的第四季度，淨虧損為 1,370 萬美元或每股 0.16 美元，而 2023 年第四季的淨虧損為 1,990 萬美元或每股 0.32 美元。截至 2024 年 12 月 31 日的全年淨虧損為 7,350 萬美元，即每股 1.08 美元，而 2023 年全年淨虧損為 5,010 萬美元，即 79%。淨虧損增加主要歸因於我們對 Atomistic 的技術許可和投資的註銷，該註銷於 2024 年第二季度記錄。不包括這筆註銷，2024 年的淨虧損比 2023 年的淨虧損減少了 690 萬美元。

Now for some balance sheet and cash flow highlights. Our cash position as of December 31, 2024, was $18.2 million, a decrease of $8.4 million from December 31, 2023. We had a net working capital position of $24.6 million. Net cash flows used in operating activities was $23.7 million for the year ended December 31, 2024, as compared to $26.3 million for the 2023 year, a decrease of $2.6 million. For all of 2024, we raised $18.3 million via financing activities that consisted of a $10 million investment by Quanta Computer in September, $8.2 million of net proceeds received from equity sales under our ATM offering in the fourth quarter of 2024.

現在來看看一些資產負債表和現金流量的亮點。截至 2024 年 12 月 31 日，我們的現金狀況為 1,820 萬美元，比 2023 年 12 月 31 日減少 840 萬美元。我們的淨營運資本狀況為 2,460 萬美元。截至 2024 年 12 月 31 日止年度，經營活動所用淨現金流為 2,370 萬美元，而 2023 年為 2,630 萬美元，減少了 260 萬美元。2024 年全年，我們透過融資活動籌集了 1,830 萬美元，其中包括 9 月廣達電腦的 1,000 萬美元投資，以及 2024 年第四季 ATM 發行下股權銷售獲得的 820 萬美元淨收益。

Cash used in investing activities in 2024 was $2.9 million, down significantly from $19.3 million in 2023, primarily due to reductions in investments amounts and licensing fees paid to Atomistic and manufacturing equipment and tooling investments for our new waveguide manufacturing facility in 2023. We are presently envisioning spending significantly less on CapEx investments in 2025 as we feel our waveguide manufacturing capacity is now adequate for expected demand in the near term.

2024 年投資活動所用現金為 290 萬美元，較 2023 年的 1,930 萬美元大幅下降，主要原因是 2023 年支付給 Atomistic 的投資金額和許可費以及用於新波導製造工廠的製造設備和工具投資減少。我們目前預計 2025 年的資本支出將大幅減少，因為我們認為我們的波導製造能力現在足以滿足近期的預期需求。

I'm pleased to report that after a year of expense reductions, when we look at our major operating expense groupings, R&D, sales and marketing and G&A in our Q4 2024 versus Q4 2023, we reduced our recurring cash operating costs, and that's after adding back noncash compensation, bad debt provisions, and the severance accruals we made at the end of 2023. We saw a $2.7 million reduction per quarter or 36% year over year. We expect to keep these expense savings in place and then tend to look for further at all our spending in 2025 as we move forward and expand our business.

我很高興地報告，經過一年的費用削減，當我們回顧 2024 年第四季度與 2023 年第四季度的主要運營費用分組、研發、銷售和營銷以及一般行政費用時，我們降低了經常性現金運營成本，這是在加上非現金薪酬、壞賬準備和我們在 2023 年底計提的遣散費之後。我們每季減少 270 萬美元，比去年同期減少 36%。我們希望保持這些費用節省，然後在我們前進和擴大業務的同時，進一步尋找 2025 年所有支出的方法。

Looking forward in 2025, we are confident that management's plans and expected further funding of the second and third tranches from Quanta, which will bring in another $10 million in new cash, along with potential further equity sales under our ATM program -- and of note, we raised $1.3 million to date in 2025 -- that the company has more than adequate resources to move forward with its operating plan well into 2026.

展望 2025 年，我們相信管理層的計劃以及 Quanta 第二和第三批融資的預期，將帶來另外 1000 萬美元的新現金，加上我們 ATM 計劃下可能進一步的股權出售——值得注意的是，我們迄今已在 2025 年籌集了 130 萬美元——公司擁有足夠的資源來推進其 2026 年的運營計劃。

And with that, I would like to turn the call back over to the operator for Q&A.

說完這些，我想將電話轉回給接線生進行問答。

(Operator Instructions) Christian Schwab, Craig-Hallum.

(操作員指示) Christian Schwab，Craig-Hallum。

So just for clarity, we talked about the M400, clearing out the inventory that you have in 2025. Can you just let us know how much inventory you have of the M400 that you plan on selling?

因此，為了清楚起見，我們討論了 M400，清理了 2025 年的庫存。您能告訴我們您計劃出售的 M400 有多少庫存嗎？

There's as much as $9 million worth of cash, I think, sitting in that bucket right now, Christian.

克里斯蒂安，我認為，現在那個桶子裡有價值 900 萬美元的現金。

Yes. That's the cost of inventory. As we stated in our narrative, anything that wasn't as finished goods got 100% provided for. So we have an ability to build more units if we so desire, but we're not going to invest further in the M400 until we move this existing stock. But that could easily generate a [bulk of] $9 million to $10 million plus any margin we made so in it and we certainly still expect to make some margin.

是的。這就是庫存成本。正如我們在敘述中所說，任何非成品都會得到 100% 的保障。因此，如果我們願意的話，我們有能力建造更多的單位，但在我們轉移現有庫存之前，我們不會對 M400 進行進一步投資。但這很容易就能產生 900 萬到 1000 萬美元的收入，再加上我們在其中賺取的任何利潤，我們當然仍然希望賺取一些利潤。

And Christian, the interesting change in life these days for Vuzix is we have a nice list of companies in our pipeline that have gone past proof of concepts. These guys are now rolling out. We're starting to get orders for larger volumes, and some of these accounts could take many thousands of units. So as much as we're preparing for a next-generation product, which we talked about a little bit in the call, we very well could be needing to make more of and finishing inventories that we currently have around the M400 that are just partial work in process.

克里斯蒂安，Vuzix 最近發生的一個有趣的變化是，我們擁有一群已完成概念驗證的公司。這些傢伙現在正在撤退。我們開始接到大量的訂單，有些訂單可能需要數千個單位。因此，儘管我們正在為下一代產品做準備，我們在電話會議中談到了一些，但我們很可能需要生產更多的產品並完成目前圍繞 M400 的庫存，這些庫存只是部分在製品。

Great. And then, Paul, you mentioned a few different times that you believe that Quanta can drive millions of units for you. Can you give us an idea when a ramp like that is logically going to start and what your ASP would be on that?

偉大的。然後，保羅，你多次提到，你相信廣達可以為你推動數百萬台設備的生產。您能否告訴我們，這樣的坡道在邏輯上何時會開始，以及您的 ASP 是多少？

It's interesting because we've got several things that are going on with Quanta right now. Some of it are reference designs and their tools that are being used to bring on third-party OEM companies that will want to put their name on the product.

這很有趣，因為我們目前正在與 Quanta 合作開展一些事情。其中一些是參考設計及其工具，用於吸引希望在產品上貼上自己名字的第三方 OEM 公司。

And in those cases, Vuzix will ultimately be selling waveguides into that process. And you sell a color waveguide, not to get into a whole lot of numbers because they're not really public. But you might imagine competitors selling them at -- in volume, let's say, 100,000 piece quantities of hundreds of dollars per and yet Vuzix can do, in those kind of quantities, sub-50 kind of numbers. So it's a significant price reduction in the higher-volume markets that Vuzix can bring to the table.

在這些情況下，Vuzix 最終將向該過程出售波導。你銷售的是彩色波導，但不要涉及太多的數字，因為它們實際上並不是公開的。但是你可以想像競爭對手以每台數百美元的價格銷售它們——比如說，100,000 台的數量，而 Vuzix 可以做到，在這種數量下，每台的價格低於 50 美元。因此，Vuzix 可以在大批量市場帶來顯著的價格降低。

The size of this market opportunity as that broader market starts to move, it's going to replace the phone ultimately. That's why Zuckerberg is spending billions, and I will tell you that we've got that piece of the business going on. And then at the same time, we are building products that will be white labeled, and in some cases, carry the Vuzix brand. And you should, knock on wood, expect to see production programs happening before the end of this year in those cases.

隨著更廣闊的市場開始運轉，這個市場機會的規模最終將取代手機。這就是為什麼祖克柏投入數十億美元的原因，而且我會告訴你，我們已經開展了這部分業務。同時，我們正在製造白色標籤的產品，在某些情況下，帶有 Vuzix 品牌。在這種情況下，你應該祈禱，希望看到生產計劃在今年年底之前完成。

In those cases, it's white labeled. It's coming partially. A big part of it comes from Vuzix and what we bring to the table on that case. Many of the white labels for those first products are in the enterprise space. And it's a significantly higher margin, and it's a significantly higher selling price. But it will just get started towards the fall going into the winter season. And then rolling into next year, it should be pretty exciting times.

在這些情況下，它就是白色標籤。它只是部分實現。其中很大一部分來自 Vuzix 以及我們在該案中提出的建議。許多首批產品的白標產品都位於企業領域。它的利潤率明顯更高，銷售價格也明顯更高。但它將在秋季進入冬季時開始。進入明年，這應該會是相當令人興奮的時刻。

I'll hand the floor back to Paul Travers.

我將把發言權交還給保羅·特拉弗斯。

Thank you. So we actually got a handful of questions from other of our shareholders before the conference call, and I thought I could at least answer a few of these. I can't answer -- there's a few of them that I can't answer just because I can't answer them as much as I would love to. They go to points that are -- they're not public at this point in time. But let me start with a few.

謝謝。因此，在電話會議之前，我們實際上收到了其他股東提出的一些問題，我想我至少可以回答其中幾個。我無法回答——有幾個問題我無法回答，因為我無法像我希望的那樣回答。他們去的地方目前尚未公開。但讓我先說幾個。

Number one here, you've expanded your waveguide manufacturing capabilities. What production capacity do you expect to achieve by the end of 2025? And how will this support your goal of supplying millions of units to OEMs?

首先，你們擴展了波導製造能力。預計到2025年底生產能力將達到多少？這將如何支援您實現向 OEM 供應數百萬台設備的目標？

So let me give you guys a feel for how this works. The Quanta investment is a $20 million investment, $10 million was upfront and there's two tranches coming for another $5 million and $5 million. The bulk of that is all about production, getting into high-volume capacity. And we are very close to meeting both tranche 2 and tranche 3, which are the two $5 million gates. And those are, like I said, related significantly to volume, and the volume is $0.5 million-plus and then $1 million plus on an annual basis kind of numbers.

那麼讓我讓你們感受一下這是如何運作的。Quanta 的投資額為 2,000 萬美元，其中預付 1,000 萬美元，另有兩筆款項分別支付 500 萬美元和 500 萬美元。其中大部分都與生產有關，以實現大批量生產。我們已經非常接近實現第二部分和第三部分，也就是兩個 500 萬美元的門檻。正如我所說，這些與交易量有很大關係，交易量每年是 50 萬美元以上，然後是 100 萬美元以上。

And so we'll be there before half of this year is up, knock on wood. We're practically there right now. So the volume capacity is right there for what the short-term need is. For us to take the Rochester facility and crank that up to double, let's say, does not cost us everything that costs us the first time. It's an incremental cost to be able to turn that production facility into something that would double those numbers. So that's not significant.

因此，我們將在今年半年結束前到達那裡，敲敲木頭。我們實際上現在就到達那裡。因此，目前的產能足以滿足短期需求。對我們來說，將羅徹斯特的設施規模擴大一倍，並不需要花費我們第一次花費的全部成本。為了將生產設施改造成能使這些數字翻倍的設施，需要增加成本。所以這並不重要。

But the ultimate goal is not 1 million or 2 million waveguides on an annual basis. This is going to be like the smart watch. Smart watches sell 300 million smart watches a year. Quanta is not doing this for 20,000 to 50,000 to 100,000 pieces a year. Their drive here is a multibillion-dollar industry. That's the kind of company they are. Many of the companies that we're talking with today, because of what we can make and the price points we can hit, they're in that boat if they want to move the needle. And so you will see a phase to effort from where we're going that should help us get into the much higher volumes in the outbound years here.

但最終的目標並不是每年生產100萬或200萬個波導。這將會像智慧手錶一樣。智慧手錶每年銷售3億隻智慧手錶。廣達每年不會為了2萬到5萬到10萬片而這麼做。他們在這裡所推動的是一個價值數十億美元的產業。他們就是這樣一家公司。今天，我們正在與之交談的許多公司，由於我們能生產的產品以及我們能達到的價格點，如果他們想推動這一進程，他們就處於這樣的境地。因此，您將看到我們正在努力的一個階段，這將有助於我們在出站年份實現更高的銷售量。

So our next question, with the $10 million received from Quanta and two additional $5 million tranches expected in 2025, how do you plan to allocate this capital towards R&D, production or market expansion? And what impact do you foresee on the cash burn rates?

那麼我們的下一個問題是，您從 Quanta 獲得的 1000 萬美元以及預計在 2025 年獲得的另外兩筆 500 萬美元的資金，您計劃如何將這筆資金分配到研發、生產或市場擴張方面？您預計這會對現金消耗率產生什麼影響？

First of all, let me say that the Quanta investment in Vuzix is lockstep with where we are taking our company. The synergy, what they want is what Vuzix wants. And so if you think about the cash burns, they're 100% aligned for the most part with what Vuzix wants and needs to do. So this isn't all of a sudden, we have to take these dollars and put them into something that feels like it's a side track.

首先，我要說的是，廣達對 Vuzix 的投資與我們的公司發展方向是一致的。他們想要的協同作用就是 Vuzix 想要的。因此，如果您考慮現金消耗，它們在很大程度上與 Vuzix 想要和需要做的事情 100% 一致。所以這並不是突然發生的，我們必須把這些錢投入到一些感覺像是岔路的事情上。

Now there is a portion of the money also here that are dedicated to product development efforts to generate business on the back side. That is also lockstep in Vuzix' interest. So these dollars are going into R&D, next-generation gizmos around waveguides that we build, and cranking up production, which I think is what everybody on this call wants to hear about.

現在，這裡也有一部分資金專門用於產品開發，以產生後端業務。這也與 Vuzix 的利益一致。所以這些資金將用於研發、我們建造的圍繞波導的下一代小發明以及提高產量，我認為這也是電話會議上每個人都想聽到的。

The next question. How do you assess the competitive threat from larger players entering the AR smart glasses market in 2025 and beyond? And what differentiates Vuzix's offerings to maintain their edge?

下一個問題。您如何評估 2025 年及以後進入 AR 智慧眼鏡市場的大型企業的競爭威脅？Vuzix 的產品有何不同之處，能夠維持其優勢呢？

First of all, the competitive threat. There will be more than one company that brings smart glasses to market. Everybody in this room should realize that. If there's another company that comes out with a product, it's not a need to panic. There's BMW, there's Ford, there's Tesla. And this is going to be a multi-multibillion dollar industry so there will be other players. I said, we bring a lot of competitive advantages. Yes, one is price. It's great to know that we have a good price that we compete with, but we also bring great performance. We've been at this longer than any other company out there. So when you lean towards the enterprise side of this business, which is also going to be in the billions, we bring stuff to the table that nobody else can bring.

首先，競爭威脅。將會有不只一家公司將智慧眼鏡推向市場。在座的每個人都應該意識到這一點。如果有另一家公司推出產品，則無需恐慌。有BMW、有福特、有特斯拉。這將是一個價值數十億美元的產業，因此將會有其他參與者。我說，我們帶來了很多競爭優勢。是的，一是價格。很高興知道我們擁有具有競爭力的良好價格，並且還提供出色的性能。我們從事這一行業的時間比其他公司都要長。因此，當你傾向於這項業務的企業方面時（該業務的規模也將達到數十億美元），我們會帶來別人無法帶來的東西。

When it comes to the high-volume waveguide side of the business, our price points are nobody else can do what we can do today in this regard. So we're in front there. So yes, there's going to be competitors. We welcome that. Rising tide floats all boats, but we believe we, with the partnerships that we're building with companies like Quanta and others, have a great chance to get a very nice and sizable part of this market opportunity.

當談到業務的大批量波導方面時，我們的價格點是其他任何人都無法做到的。所以我們在那兒前面。所以是的，會有競爭對手。我們對此表示歡迎。水漲船高，但我們相信，透過與廣達等公司建立的合作關係，我們有很大機會獲得這個市場機會中非常可觀的份額。

Like I said, there was some other questions in here that dealt with closer to Tier 1 companies and when and rolls out, and I just cannot talk about those companies and where they are in their processes. I can tell you this though. Generally speaking, you will see more and more design wins and partner wins and starting rollouts happen throughout this year.

正如我所說的，這裡還有一些其他問題涉及更接近一級公司以及何時推出，我無法談論這些公司以及它們在流程中的位置。但我可以告訴你這件事。總體而言，您將在今年看到越來越多的設計勝利、合作夥伴勝利和開始推出新產品。

Back in the World War II days when the airplanes would fly and they would take another kill and they put a marker on the front of their airplane as another notch on the pistol handle, you're going to see a lot of that start to enroll at Vuzix this year that will roll into, knock on word, significant volumes through 2026.

回顧第二次世界大戰時期，當時飛機還在飛行，他們會擊落另一架敵機，然後他們會在飛機前面放一個標記，就像手槍把手上的另一個凹口一樣，今年你會看到很多這樣的人開始在 Vuzix 報名，到 2026 年，報名人數將會達到可觀的規模。

And will some of those be Tier 1s? I certainly believe we have Tier 1 partners 100% that are working with Vuzix right now. They are timing for when they roll out their requirements for market acceptance. I mean, if you think about companies like Luxottica, they don't want to put their name on something that doesn't look fashion forward and run 100% in line with what their brand looks like. So already striving for that same answer, and Vuzix is a company that can help bring that to them.

其中一些會是一級嗎？我確信，我們現在有 100% 的一級合作夥伴正在與 Vuzix 合作。他們正在為推出市場認可的要求而安排時間。我的意思是，如果你想想像 Luxottica 這樣的公司，他們不想把自己的名字放在看起來不時尚的東西上，並且 100% 符合他們的品牌形象。因此，他們已經在努力尋找相同的答案，而 Vuzix 是一家可以幫助他們找到答案的公司。

So in broad stokes, I hope that answered the bulk of everybody's questions. I want to thank everybody for spending the time again with us this afternoon. And I really do look forward to seeing the rest of this year unfold and us having our future conference calls with a whole lot more to talk about with significant real programs in companies and partnerships that we've been able to announce along the way. Thank you, everybody. Have a wonderful evening.

因此，總的來說，我希望這能回答大家的大部分問題。我要感謝大家今天下午再次與我們共度時光。我非常期待看到今年剩餘時間的進展，以及我們將在未來的電話會議上討論更多內容，包括我們在途中宣布的公司和合作夥伴關係中的重要實際計劃。謝謝大家。祝您有個美好的夜晚。

Thank you. This concludes today's call. All parties may disconnect.

謝謝。今天的電話會議到此結束。各方均可斷開連線。