Problems at Vuzix (VUZI)
Vuzix (NASDAQ: VUZI — $1.01 billion), an augmented reality glasses company, is up around 1,200% over the last twelve months on retail investor enthusiasm and a recent investment from ARK Invest. Vuzix’s history includes consistent unprofitability, serial dilution, a short-seller lawsuit, a 75-for-1 reverse split, 591 press releases, an OTC to NASDAQ uplisting, and more bark than bite.
Vuzix was founded in 1997 in Rochester, NY, and makes augmented reality glasses for enterprise uses like medicine, manufacturing, and remote work. In the last twelve months, the company’s total revenue was $9.3 million, mostly from selling smart glasses like the one shown below.
Since uplisting onto the NASDAQ in 2015, Vuzix has racked up $115 million in losses, mostly covered by share issuances. Shares outstanding have gone from approximately 15 million in 2015 to around 35 million today.
The share issuances have been aided by promotional activity by the company. In 2018, Richard Pearson of MOX Reports pu…