Press release·03/24/2025 20:55:11

Overview

We develop and sell cutting-edge smart eyeglasses and sunglasses, which are designed to allow our customers to remain connected to their digital lives, while also offering vision correction and protection. Our flagship product, Lucyd Lyte, enables the wearer to listen to music, take and make calls, and use voice assistants and ChatGPT to perform many common smartphone tasks hands-free.

Our mission is to Upgrade Your Eyewear®. Our smart eyewear is a fusion of headphones with glasses, bringing vision correction and protection together with digital connectivity and clear audio, while also offering a solution for listening to music outdoors (as compared to in-ear headphones). The convenience of having a Bluetooth headset and comfortable glasses in one, especially for those who are already accustomed to all-day eyewear use, offers a lifestyle upgrade at a price most consumers can afford.

Since the initial launch of Lucyd Lyte in 2021, we have sold thousands of our smartglasses, and have significantly upgraded and expanded our product offerings – including the launch of Lucyd Lyte 2.0 and Lyte XL smartglasses in 2023, and most recently with the launch of the Lucyd Armor™, Nautica® Powered by Lucyd, and Eddie Bauer® Powered by Lucyd smart eyewear collections in 2024. The variety of smartglasses we offer underpin the Company’s mission to provide a smart alternative for all of the major types of eyewear used by consumers, offering a seamless upgrade in styles of eyewear they already enjoy. We plan to further expand our product offerings through the launch of new cobranded collections with Reebok in 2025.

All of our products are designed in Miami, manufactured in Asia, and currently sold through two major types of channels:

1. E-commerce – primarily via our website (Lucyd.co) and Amazon.com, as well as through Walmart.com, Target.com, BestBuy.com, DicksSportingGoods.com, Brookstone.com, and eBay; and,

2. A growing network of retail stores, including independent eyewear stores and national eyewear chains – we currently have over 540 retail stores selling our products (across over 300 unique wholesale accounts), and are continually working to expand our network.

We apply a manufacturer suggested retail price (“MSRP”) of $149 – $199 for non-prescription, polarized sunglass, and photochromic glasses across all of our online channels, with our wholesale pricing offering volume discounts to these prices. The Company believes having pricing that is competitive with traditional designer eyewear is essential for building market share in this new category, by eliminating the “cost of switching” for the average consumer.

We view our business model as capital light, as we have elected not to build our own manufacturing facilities and Company-owned retail distribution, but rather leverage existing sources of production and retail distribution. This allows us to focus on our core competency of smart eyewear design and manufacturing.

Key Factors Affecting Performance

Expansion of retail points of purchase

In addition to sustained growth of our e-commerce business, our future revenues are correlated positively with our placement of Lucyd glasses in optical stores, as well as sporting goods stores and other specialty stores. To address this, we have assembled a team with decades of experience in the eyewear industry and are offering a strong co-op marketing program and reordering incentives program. We currently offer an expansive line of 26 different models of glasses, and by mid-2025, we will offer 34 different styles and several accessories, including cobranded eyewear with well-known brands like Nautica, Reebok, and Eddie Bauer. In total, the Company expects to offer over 40 total smart eyewear SKUs across these brands and Lucyd by the end of 2025.

Retail store client retention and re-orders

Our ability to sustain and increase revenue is correlated positively with our ability to receive re-orders from stores, either directly or through our wholesale distributors. To support our sales to retail stores directly, we offer a strong co-op marketing program that includes free and paid store display materials. As part of this strategy, we have launched a new modular display system with engaging video screens and audio testing capabilities for our resellers to help educate their in-store customers about Lucyd products and enable customers to virtually try them on. This proprietary display system is central to our efforts to introduce traditional retail customers to Lucyd eyewear, and we are planning further enhancements to our merchandising displays to enable more immersive experiences. Additionally, we consistently incorporate retail partner feedback directly into our frames to better serve our end users. We have deployed 45 such display systems to retailers.

Investing in business growth

We believe that people care about what they wear on their faces, and because we understand that customers have diverse preferences about the shape, size, and design of their eyewear, we aim to continuously invest in the design and development of new models in an effort to provide the consumer with a wide selection of styles, colors, and finishes.

We are offering a strong co-op marketing program with retail stores, and intend to expand our sales, marketing, and brand ambassador teams to broaden our brand awareness and online presence.

Key Performance Indicators

Store Count (B2B)

We believe that one of the key indicators for our business is the number of retail stores onboarded to sell our products. We started onboarding our first retail stores in June 2021, and since then have continue to grow through the current year. Currently, we have over 540 retail stores selling our smart eyeglasses, primarily in the United States and Canada, across over 300 unique wholesale accounts. Based on the existing demand for our products, current distribution, and recently consummated supply agreements, we anticipate that our products will be available in a significant number of new third-party retail locations in 2025.

Customer Ratings (B2C)

The Company’s latest products are receiving higher ratings online compared to our previous products, indicating that customers are appreciative of improvements in product design, functionality, and build quality. For example, our new Lucyd Armor product has a ⁴⁄₅ rating on Amazon. This is a strong signal of positive feedback on our products that indicates our ability to grow and scale with America’s largest online retailer and other platforms.

Results of Operations

Years Ended December 31, 2024 (“current year”) and December 31, 2023 (“prior year”)

Metric	Year ended December 31 2024	Year ended December 31 2023	Change
Revenues - net	$1,636,440	$1,152,479	$483,961 (42%)
Less: Cost of Goods Sold	$(1,421,250)	$(1,271,808)	$(149,442) (12%)
Gross Profit (Deficit)	$215,190	$(119,329)	$334,519 (280%)
Operating Expenses:
General and administrative	$(4,473,292)	$(3,886,960)	$(586,332) (15%)
Sales and marketing	$(2,706,213)	$(2,047,069)	$(659,144) (32%)
Research and development	$(819,387)	$(662,184)	$(157,203) (24%)
Related party management fee	$(140,000)	$(140,000)	$0 (0%)
Total Operating Expenses	$(8,138,892)	$(6,736,213)	$(1,402,679) (21%)
Other Income (Expense)	$157,187	$192,114	$(34,927) (-18%)
Interest Expense	$0	$(3,036)	$3,036 (100%)
Net Loss	$(7,766,515)	$(6,663,428)	$(1,103,087) (17%)

Revenue

Our revenues for the year ended December 31, 2024, were $1,636,440, representing an increase of approximately 42% as compared to revenues of $1,152,479 during the year ended December 31, 2023. The increase in revenue was primarily attributable to significant growth in the e-commerce channel, with net sales through our Lucyd.co website and Amazon.com increasing by approximately 89% and 14%, respectively, from the prior year, while wholesale revenues declined by approximately 27%.

Overall, our revenue growth was primarily attributable to higher unit volumes, largely driven by our new product launches over the past year (including the cobranded Nautica® Powered by Lucyd and Eddie Bauer® Powered by Lucyd collections which were launched in January 2024 and April 2024, respectively, and the Lucyd Armor product line which was launched in October 2024). We sold over 2,000 units of Lucyd Armor glasses in the fourth quarter of 2024 alone. With respect to our cobranded collections, we sold over 3,000 units during the current year, and sales of the Nautica® Powered by Lucyd line have continued to increase each quarter since their initial launch. While Eddie Bauer® Powered by Lucyd styles have not been as successful as others thus far, likely due to their higher price point, the Nautica® cobranded collection has been very popular, with several of those styles ranking among our top products. We believe our brand partnerships play a significant role in our revenue growth by offering a more diversified product line that speaks to consumers from different demographics. We also believe the cobranded collections have been useful in attracting retail partnerships, as merchandisers are more comfortable with well-known brands when introducing new products.

The decline in wholesale revenues was largely driven by a change in our focus during the current year from small, independent retailers to major national retailers, the latter of which have slower product approval and purchasing cycles. However, we believe that focusing on introducing our product in major national retailers will have a significant positive impact on the Company’s revenues within the next 12 months.

For the year ended December 31, 2024, approximately 64% of sales were processed on our online store (Lucyd.co), 26% on Amazon.com, and 10% with reseller partners. As the relative proportion of sales processed through Lucyd.co for the current year increased as compared to the relative proportion of sales processed through Lucyd.co in the prior year, this shift in sales channel mix positively impacted our revenue for the current year as compared with the prior year, due to the fact we charge an additional $35 to $275 for our prescription lenses available only on Lucyd.co.

We expect that selling wholesale into brick-and-mortar retailers represents our largest growth opportunity for a number of reasons, including our competitive products, improving consumer awareness, and the optical channel becoming more receptive to smart eyewear. We are well positioned for significant revenue growth in 2025 with the success of the Lucyd Armor smartglasses and the upcoming launch of the Reebok® Powered by Lucyd smartglasses.

Cost of goods sold

Our total cost of goods sold increased to $1,421,250 for the year ended December 31, 2024, as compared to $1,271,808 for the year ended December 31, 2023. This increase was primarily driven by higher volumes of products sold during the current year, partially offset by lower costs.

Cost of frames increased by approximately 14% on an absolute dollar basis from the prior year, primarily related to the increase in sales volumes and also partially attributable to higher cost of goods sold associated with the new Eddie Bauer® Powered by Lucyd collection, due to the increased number of components, deluxe finishes, and materials for that product line. However, cost of frames as a percentage of net sales declined by 13 percentage points from the prior year, due to the combination of our switch to new suppliers with higher quality and lower manufacturing costs during 2023, and greater economies of scale driven by higher unit volumes.

Cost of lenses decreased by approximately 5% on an absolute dollar basis from the prior year, and decreased as a percentage of net sales by 8 percentage points from the prior year. These decreases were mainly driven by actions taken by management in the current year to better manage lens fulfillment costs, including the launch of new proprietary transitional lenses and the engagement of a new lower-cost lens supplier.

We expect that our cost of goods sold will improve even more in future periods, as the frames for the Lucyd Armor and cobranded Reebok® product lines are designed differently from our other products and accordingly have fewer components, thus reducing their price. We estimate that the unit cost for the Lucyd Armor and cobranded Reebok® product lines will be at least 30% lower than our Lucyd Lyte models.

Gross profit (deficit)

We had gross profit of $215,190, or 13% of net sales, for the year ended December 31, 2024, as compared to a gross deficit of $119,329, or negative 10% of net sales, for the year ended December 31, 2023. This improvement of $334,519 or 23 percentage points was primarily driven by the factors outlined above. We expect that our gross profit margins will continue to improve in 2025.

Operating expenses

Our operating expenses increased by 21% to $8,138,892 for the year ended December 31, 2024, as compared to $6,736,213 for the year ended December 31, 2023. This increase was primarily due to higher general and administrative, sales and marketing, and research and development costs.

General and administrative expenses increased by 15% to $4,473,292, primarily driven by a $325,000 release payment and higher legal costs.

Sales and marketing expenses increased by 32% to $2,706,213, primarily driven by increased spending on paid ads and higher stock-based compensation.

Research and development costs increased by 24% to $819,387, primarily due to the write-off of previously capitalized Vyrb software costs.

The related party management fee remained flat at $140,000 for both years.

Liquidity and Capital Resources

The Company has raised significant capital through various equity offerings in 2023 and 2024, including a second public offering, registered direct offerings, and at-the-market offerings, which have provided net proceeds of over $10 million. The Company has also entered into a financing agreement with a related party that provides up to $1.25 million in additional funding availability.

As of December 31, 2024, the Company had $4.9 million invested in short-term U.S. Treasury bills, in addition to its cash and cash equivalents. Management believes the Company’s existing liquidity, including the proceeds from the recent financing activities, will be sufficient to fund operations for at least the next 12 months.

However, the Company’s future capital requirements will depend on many factors, including growth in retail store customers, e-commerce and distribution needs, and product and software development. Additional equity or debt financing may be required if current and anticipated future sources of liquidity are insufficient. The Company will continue to evaluate all options to support the growth of its business.

Critical Accounting Policies

The Company’s critical accounting policies include inventory valuation, intangible asset recognition and impairment, income taxes, stock-based compensation, and revenue recognition. Management applies significant judgment in these areas, including estimating reserves, assessing realizability of deferred tax assets, determining fair values of stock-based awards, and identifying performance obligations in customer contracts. The Company’s financial statements reflect the application of these policies, which are essential to understanding the Company’s results of operations and financial condition.