Vuzix Corporation (VUZI)

[sundancer-ch]

Vuzix does not need to raise cash anytime soon to fund current product build-outs

Vuzix (VUZI) filed a $100m S-3 mixed shelf registration late Monday afternoon, which sent shares tumbling nearly 10% in just a few minutes Monday afternoon. Vuzix investors appeared shell shocked and confused by the recent S-3 filing and I certainly understand why. Vuzix’s balance sheet was filled with $16.1 million as of September 30th down from $20.0 million as of June 30th. Vuzix’s cash burn in 2016 will slow considerably from 2015 as sales more than double from 2015, which means that Vuzix does not need to raise cash anytime soon to fund current product build-outs. Vuzix’s cash on hand is sufficient to fund operations through 2017 when the company will become cash flow positive from operations.