Greetings, and welcome to the Vuzix Corporation First Quarter 2026 Financial Results Conference At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone wants to require operator assistance during the call, please press star zero on your telephone keypad. As a reminder, this call is being recorded. I would now like to turn the call over to Ed McGregor, Director of Investor Relations at Vuzix. Mr. McGregor, please go ahead.

Thank you, Operator. And thank you, everyone, for joining us today. Welcome to the Vuzix Corporation First Quarter 2026 Financial Results Conference Call. With us today are Vuzix CEO, Paul Travers, and our CFO, 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 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. In addition, any projections as to the company's future performance represent management's estimates as of today, May 14, 2026. Musix assumes no obligation to update these projections in the future as market conditions change. This afternoon, the company issued a press release announcing its Q1 2026 financial results and followed its 10Q at the SEC. So participants in this call who may not 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. 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 on the company's Form 10-K Annual Filing at sec.gov, which is also available at www.vuzix.com. I will now turn the call over to Vuzix 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, Fuzix's CFO. We'll provide an overview of the company's first quarter financial results, after which we'll move on to the Q&A session. Paul? Thank you, Ed, and thanks to

everyone for joining us today. With our first quarter of 2026 behind us, and as we have shared previously, Fuzix continues to drive forward with a clear strategy focused around two primary growth engines for the company, OEM products, and waveguides. We believe these are areas where we can create the greatest long-term value for Vuzix. Importantly, many of these OEM and waveguide opportunities begin as customer-funded engineering and development programs. We believe this creates a more capital-efficient path towards long-term production opportunities while allowing Vuzix to leverage the technology, manufacturing, and customer relationships we have spent years building. This strategy is built directly on the core technologies, products, and capabilities we have developed over the last several decades. Fusix established its position through two closely connected strengths, advanced wave guides and designing and selling enterprise smart glasses products. Together, those capabilities helped us develop deep technical know-how, real customer experience, and market credibility, while also opening doors with larger organizations seeking a partner that understands not just optics, but the full product deployment and support equation. Since the beginning of 2026, our announcements have not been isolated updates. They show a progression of ecosystem validation, product readiness, customer expansion, defense, and OEM momentum and broader waveguide partner engagement. The first leg of our growth strategy is centered around the OEM products business across enterprise, defense, security, and ultimately broader consumer markets. We are particularly excited that we'll begin shipping initial EVT-based OEM orders in Q2 for the new Ultralight Pro platform-based smart glasses to Amazon to support to business outcomes and operational challenges presented by the rapid adoption of AI and data center expansion. At the same time, Amazon's reliability and maintenance engineering team's use of the Vuzix M400 smart glasses continues to expand to support fulfillment center operations worldwide. Our custom M400 kit for Amazon ensures fulfillment center machinery, robotics, conveyors, and automation equipment run safely and efficiently. In addition to Amazon, we're also working with a leading auto manufacturer where Vuzix is developing a waveguide-based smart glasses solution for widespread use on their factory floor operations. We recently delivered initial units to this customer to support operational evaluation and workflow validation activities within active manufacturing environments and look forward to the next phase of the relationship. We expect derivative versions of this platform could ultimately support broader enterprise market opportunities under the Vuzix brand, and we are currently evaluating that option. Within defense, we continue to see growing momentum as wearable displays, advanced optics, AI-assisted visualization, and drone-related applications become increasingly important. Recently, we announced that we had received a six-figure development order from a Tier 1 defense supplier supporting the design of a next-generation waveguide-based head-mounted display system intended for military applications in future production deployment. In addition, a program with Collins Aerospace is moving into production as evidenced by a recently received six-figure order for waveguide-based AR display systems to support drone-based applications. We currently expect order volumes associated with this program to continue to increase throughout the year. Another project slated to kick off shortly is a seven-figure program for U.S.-based next-generational waveguide design and manufacture funded by the U.S. Department of Defense. Overall, we believe our position within defense and government opportunities is substantially stronger today than it was even just three months ago. The broader engagement, including several active RFPs, clearer pathways towards production programs, and increasing interest tied to secure U.S.-based manufacturing capabilities. Geopolitics is changing how defense and security agencies think about wearable technology. Drones have rapidly become a critical operational tool. As smart glasses and HUDs are becoming an important interface for real-time situational awareness, coordination, visualization, and secure information delivery. More broadly, secure information access, situational awareness, and AI delivered through wearable displays are becoming increasingly relevant across defense, homeland security, and public safety use cases. We believe these trends will become an important driver of long-term demand for advanced wearable systems and waveguide-based display. The second major leg of our strategy is capitalizing on our waveguide technology, where scalable, cost-effective production of advanced waveguides position Vuzix to play a central role in the next generation of AI-enabled smart glasses. Over the past year, we have continued strengthening our position through our strategic relationship with Quanta Computer, which is building the infrastructure for what should be meaningful revenue-generating opportunities surrounding Vuzix waveguides as a strategic supplier to Quanta and their customer ecosystem. The micro-display industry is witnessing tremendous investment and innovation as the race to support the AI smart glasses ecosystem accelerates. For Vuzix, the opportunity is not to bet on a single display technology, but rather to support and enable multiple display technologies that we believe could become important over time, including L-COS, laser-based displays, and micro-LED technologies. These relationships matter because the more third-party display partners we can support, the more ways we have to embed our waveguides into wearable products. As Vuzix is one of the few companies with both advanced waveguide design expertise and scalable manufacturing capabilities, we continue nurturing and expanding our relationship across the broader display ecosystem. ecosystem. These collaborations, which have resulted in as many as a dozen custom waveguide designs in the last 24 months, currently include TCL, Safflux, Himax, Avigant, RayPress, Redelux Lens, among others. This matters because the industry increasingly recognizes that success in AI glasses will require the right combination of waveguides, display performance, manufacturer and cost. We believe the waveguide business represents the single largest long-term opportunity for users. As near-eye display-based smart glasses evolve towards becoming a true mass-market computing platform over time, advanced waveguides will become one of the key enabling technologies supporting that transition. That is why scale matters, that is why manufacturability matters, and that is why Quanta matters as a world-leading contract manufacturer. As part of preparing for that next phase of growth, we're continuing to expand and optimize our manufacturing and development infrastructure in Rochester, New York. During the quarter, we continued expanding our plant floor manufacturing capacity to better support the increasing number of OEM, defense, and waveguide development programs now moving through the company. These ongoing upgrades are designed to improve throughput, reduce development cycle times, minimize manufacturing changeovers, and allow Vuzix to manage multiple advanced programs simultaneously as a broader set of opportunities move towards production. We are also in the process of expanding and consolidating additional advanced waveguide tooling and development capabilities into the Rochester facility. This includes the relocation of our advanced etching equipment that was acquired from a Silicon Valley-based entity last spring. Bringing these capabilities closer to our core optical science and engineering teams is expected to improve development speed, process integration, and next-generation waveguide research activities. In addition, during Q1, we completed the unsite construction of a new and more capable chemistry laboratory focused on advancing the materials used within our waveguide manufacturing process. This effort is being led by our newly added PhD-level chemistry team and is focused on improving polymer formulations, advanced in imprinting materials, and better matching material properties to the next generation of high-performance waveguide substrates. These investments continue to strengthen our position as one of the few companies combining advanced WaveGuide design expertise with scalable manufacturing capabilities in the United States. Ultimately, the WaveGuide manufacturing market will not be won by simply demonstrating a strong laboratory prototype or hero samples as known within our industry. It will be won by having technology that performs, can be produced reliably, and can scale cost-effectively to support the needs of the large-volume customers. Vuzix has spent years building towards that exact position. The broader consumer smart glasses market is now entering an important new phase. AI is making smart glasses more practical. Customers are becoming more specific about what they need. With additional technology companies, platform providers, and eyewear brands bringing products, software platforms, and ecosystem support into the category, and advanced waveguide manufacturing, scalable optics, and protected enabling technologies are becoming increasingly central to success. That is why the emergence of platforms such as Google's Android XR and similar ecosystem initiatives are important. The market is increasingly evolving from a device story into a platform and ecosystem story emerging technology markets often move through cycles of early enthusiasm consolidation and infrastructure build out before real commercial adoption begins to scale we believe the smart glasses market has now entered that next phase fusix has remained committed to this market through multiple technology cycles while continuing to invest in innovation, waveguide technology, manufacturing capabilities, customer relationships, and intellectual property. Today, with more than 500 patents and patents pending worldwide, we believe those investments position Vuzix well for the direction this industry is now moving. As AI-enabled smart glasses move from concept towards broader adoption, we believe the consistency of our execution and our long-term commitment to this market can become increasingly important drivers of shareholder value. With that, I'll now turn the call over to Grant for the financial

overview. Grant? Thank you, Paul. As Ed mentioned, the 10-Q we filed this afternoon with the SEC offers a detailed explanation of our quarterly financials, so I'm just going to provide you with a bit of color on some of the quarterly numbers. Our first quarter 2026 total revenues was 1.4 million down 12% year over year versus 1.6 million in 2025. Product sales decreased primarily due to lower sales of our M400. Engineering services revenues were 0.35 million for the three months ended March 31st, 2026 versus $0.26 million in the prior year's period, an increase of 36%. There was an overall gross loss of $0.4 million for the three months ended March 31st, 2026 as compared to a gross loss of $0.3 million for the same period in 2025. The increased gross loss was primarily due to lower total sales versus the prior year's period that resulted in less absorption of our relatively fixed manufacturing costs. Research and development expense was $3 million for the three-month end of March 31st, 2026, compared to $2.6 million for the comparable 2025 period, an increase of approximately 16%. The higher R&D expense was largely due to a $0.4 million increase in wage costs related to headcount increases and a $0.2 million increase in depreciation related to new waveguide manufacturing equipment currently being used primarily for R&D purposes, less a $0.2 million decrease in external development costs. Sales and marketing expense was virtually flat for the three months ended March 31st, 2026, as compared to the same period in 2025, an increase of approximately 1% to just over $1.55 million. General and administrative expenses for the three months end of March 31st, 2026 was $2.1 million versus $4 million for the comparable 2025 period, a decrease of approximately 46%. The overall decline was primarily due to a $1.7 million decrease in non-cash stock-based compensation expense related to the termination cancellation of prior equity incentive plans. Total operating expenses for the three months ended March 31st, 2026, declined by 20% to $6.8 million versus the prior period of $8.5 million. For the first quarter, ended March 31st, 2026, the net loss attributable to common shareholders was $7.1 million or $0.09 per share as compared to a net loss of $8.6 million or $0.11 per share for the first quarter of 2025. Now for some balance sheet and cash flow highlights. Our cash and cash equivalents position as of March 31st, 2026 was $20.2 million and our net working capital position was $20.8 million. For the quarter ended March 31st, 2026, the net cash flow used for operating activities was $5.6 million as compared to $3.5 million in the prior year's period. As of March 31st, 2026, the company continues to have no current or long-term debt obligations outstanding. Cash flow used for investing activities for the first quarter of 2026 was $1.2 million versus $0.8 million in the prior year period. Cash flows provided from our financing activities during the three months ended March 31st, 2026 was $5.8 million versus $1.3 million in the first quarter of 2025, all primarily the result of net proceeds from sales of common stock under our ATM facility. Let me close by again reiterating that we believe our overall cash position, along with maintaining disciplined cost structure, general business expansion, particularly on the ODM and OEM side, and judicious use of our ATM facility, will collectively give a sufficient runway to execute our current operating plan well into 2027. With that, I'd like to turn the call over to the operator.

Thank you. Ladies and gentlemen, if you would like to ask a question, please press star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions. There are no questions at this time, and I'd like to turn the call back to Paul Travers for closing remarks.

Again, everybody, thank you so much for joining us on the call today. Vuzix is continuing to position ourselves for the next major phase of the market for smart glasses and advanced optics. We're building the company around what we believe are the two most important long-term opportunities in the industry, smart glasses and advanced waveguide technologies. We believe the overall market environment is continuing to improve. We see our business accelerating on OEM program after OEM program, which is why we've made these upgrades to our plant floor. We're having entertaining and actually receiving seven-figure programs, which you'll hear more about here as the summer unfolds. Obviously, Amazon is becoming a great partner that continues to roll product into their operations. While we still believe the industry remains in the relatively early stages, it is very exciting to be where we are today after all these years. The business is coming, and it's going to be an exciting fall of the year. We remain focused on discipline execution, strategic growth opportunities, and continue to build long-term shareholder value. Just as a reminder, our annual shareholders meeting is coming up on June 16th. We look forward to all those that want to come. It should be a nice event. We'll have some great demos and some new stuff to show folks. Thanks again, everybody, and have a nice evening.

Thank you. This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.