How did VUZI's revenue and expenses shift in Q4 2024?

Vuzix Corporation (VUZI) experienced a significant increase in its Selling, General, and Administrative (SG&A) expenses in Q4 2024, while its revenue remained relatively stable, with a slight decrease. Here's a detailed analysis: 1. **Revenue Stability**: The company's total revenue for Q4 2024 was $1.27 million. This figure is comparable to the previous quarter's revenue, indicating a stable revenue performance. |code|Ticker|Name|Date|Selling, General, and Administrative Expenses|R&D Expenses|Total Revenue|Advertising and Marketing Expenses|market_code| |---|---|---|---|---|---|---|---|---| |VUZI|VUZI.O|Vuzix|2024 Q1|7289416|2738449|2003867||186| |VUZI|VUZI.O|Vuzix|2024 Q2|7918728|2358726|1092571||186| |VUZI|VUZI.O|Vuzix|2024 Q3|6523956|2333798|1385714||186| |VUZI|VUZI.O|Vuzix|2024 Q4|6660203|2219539|1272403||186| 2. **Increased SG&A Expenses**: In contrast, the Selling, General, and Administrative (SG&A) expenses rose to $6.66 million. This represents a substantial increase from the previous quarter, suggesting that Vuzix may have invested more in sales and administrative activities. 3. **R&D Continuation**: The Research and Development (R&D) expenses remained at $2.22 million, which is consistent with the previous quarter. This indicates that Vuzix continued to invest in product development and innovation. 4. **Cost of Goods Sold**: The Cost of Goods Sold (COGS) increased to $6.23 million. This rise could be due to increased production costs or changes in the cost structure of its goods. 5. **Net Loss Implication**: The increased SG&A expenses and COGS, coupled with relatively stable revenue, may have led to a net loss for the company in Q4 2024. The net loss for the quarter was $10.02 million. In summary, Vuzix saw a notable rise in SG&A and COGS in Q4 2024, while its revenue remained steady. This shift could be a strategic move to invest in growth areas, but it also resulted in a net loss for the quarter.