Vuzix Corporation (VUZI)

[growacet]

If the allegations are true....

If I'm understanding this MOX Report correctly, the author is alleging that Vuzix hired this IRTH company to do investor relations/promotions. In turn IRTH then had positive stories "placed" with Mainstream outlets like Fox Biz and USA Todaye etc

And this was done in order to inflate the PPS and drive interest for another secondary offering that raised $30 million less fees for Vuzix.

Okay if this is true...the question is, does Vuzix have any incentive to engage promoters now that the bank account is pretty flush?

According to the 10K they had just under $15 million left on Dec 31st. Add in the $28 million ($30 less $2 mill in fees) and you have $43 million. According to the filing Vuzix had net losses attributable to common shareholders of $6.3 million in the 4th quarter, up from $5.9 million in the 3rd quarter.

So assuming they're continuing to burn about $2 million per month...then they'd still have somewhere around $37 million odd as of the end of March.

Vuzix has survived 20 odd years with a lot of promotion and regular dilution...but for another year or so they should be good unless their losses continue climbing.