Hello, everybody. I'm Ed McGregor, Director of Investor Relations at Vuzix, and I'd like to welcome everybody to the Vuzix 2024 annual shareholders meeting. Please note this meeting will be recorded. It's now my pleasure to turn the meeting over to Paul Travers, President and CEO of Vuzix. Paul?
Thank you, Ed, and good morning to everyone. To echo what Ed just said, I'm pleased to welcome you to the 2024 annual meeting of the stockholders of Vuzix Corporation. Today's event is being held in person at the DoubleTree, Rochester, 1111 Jefferson Road, Rochester, New York. Thank you very much to all of you that have traveled here to participate in our meeting today. On behalf of Vuzix, we have here today myself, Paul Travers, President and CEO, Grant Russell, the CFO of Vuzix, Edward Kay, board member, Tim Harned, board member, Paula Whitten-Doolin, board member nominee, and Eric Black, our General Counsel and Corporate Secretary. As initial order of business, I will call your attention to the rules of conduct set forth for this meeting, copies of which have been made available to you today.
If you need a copy to view of the Vuzix annual 10-K report or the proxy statement, they are available online on the company's investor relations website. Grant Russell, our Chief Financial Officer, will act as Inspector of Elections in the tabulation of proxies and ballots. Before reviewing the business of the company and responding to questions, we will conduct the formal part of the stockholders' meeting. Stockholders attending this meeting are welcome to ask questions during the question and answer session, so I would ask you to hold all of your questions until then. The board of directors has fixed the close of business on April 17, 2024, as the record date for stockholders entitled to notice of and to vote at this meeting.
A copy of the notice of this meeting, together with an affidavit that the notice was mailed on or about April 29, 2024, to each stockholder as of the record date, at each stockholder's address, as it appears on the company's record of stockholders, will be filed with the minutes of this meeting. A list of registered stockholders entitled to vote at this meeting is available for examination by any stockholder desiring to do so. Mr. Russell has signed his oath of Inspector of Election, and it will be filed with the minutes of this meeting. The count of shares presently, excuse me, the count of shares present immediately prior to the commencement of the meeting indicated almost 55% of the outstanding shares of common stock of the company are present in person or by proxy.
I declare that legal notice of the meeting was given and that a quorum is present at the meeting. On behalf of the board of directors of the company, I would like to express my appreciation to all stockholders who returned their proxies. Proposal number 1. The first matter to be acted upon by the stockholders is the election of five directors, each to serve until the 2025 annual meeting. I will now entertain a motion with respect to this matter.
I hereby nominate Paul Travers, Grant Russell, Edward Kay, Timothy Harned, and Paula Whitten-Doolin for election as directors of Vuzix Corporation to serve until the 2025 annual meeting and until their successors have been elected and qualified.
I second the motion.
The following persons have been duly nominated for election as directors of the company: Paul Travers, Grant Russell, Edward Kay, Timothy Harned, and Paula Whitten-Doolin. Since no other stockholder has duly notified the company that he or she intends to nominate a candidate for election as a director, as is required by the company's bylaws, I declare the nominations closed. Proposal two. The next item of business is to consider a proposal to ratify the selection of Freed Maxick CPAs, P.C., as our independent public accounting firm for the fiscal year 2024. I will now entertain a motion with respect to this matter.
I hereby move that the appointment of Freed Maxick CPAs, P.C., as the independent registered public accounting firm of the company for the year ending December 31, 2024, be ratified.
I second the motion.
The next item of business on our proxy was to have the company's stockholders cast a non-binding advisory vote regarding the approval of the compensation disclosed in this 2024 proxy statement of the company's executive officers. I will now bring to vote the election of directors and the ratification of the appointment of independent registered public accounting firm. The polls are now open for balloting. Any of those present have not voted and would like to do so or wish to change their vote, please indicate so by raising your hand. You will need to present your proxy card and confirm whether or not you have already voted your shares. Any stockholder present who has already voted and does not want to change their votes, does not need to take any further action. The online voting will now be closed.
I declare the polls closed, and I request that the Inspector of Election report on the tabulation as soon as it's available. Now, will the Inspector of Election please report the results of the balloting?
A total of 35,504,581 shares, or 54.85% of eligible voting shares, is represented at the meeting, either by proxy or in person. Once, the proxies and ballots have been counted, and a greater than a majority of the shares voted for each of the 5 nominated directors were cast in favor of the election of such directors. Proposal 2, proxies and ballots in connection with the proposal to ratify the appointment of Freed Maxick CPAs, P.C., as the company's independent registered public accounting firm for the fiscal year end, 2024, have been counted, and 97.83% of the shares present in person or by proxy have voted in favor of the proposal.
2.16% of the shares present in person or by proxy have voted against the proposal, and 4.38% of the shares present in person or by proxy have abstained from voting on this proposal. Proposal number three, the proxies and ballots in connection with the non-binding advisory vote on the executive compensation have been counted, and 82.9% of the shares present in person or by proxy have voted in favor of the proposal. 17.09% of the shares present or in person or by proxy have voted against the proposal, and 1.03 of the shares present in person or by proxy have abstained from a vote on the proposal.
Thank you, Mr. Russell. I declare that the nominees for election as director have been duly elected. The appointment of Freed Maxick CPAs, P.C., as the company's registered public accounting firm for 2024 has been fully, duly ratified, and the results of the non-binding advisory vote on executive compensation have been noted. That concludes the formal portion of the meeting. We'll now move on to management's presentation. Again, shareholders can ask questions at the conclusion of the presentation during the subsequent question and answer session. The last 12 months, a lot has happened at Vuzix, and this one little page is pretty difficult to sum it up, frankly, but these are a few of the highlights anyway.
I'm sure you guys have seen that the Z100 and the Ultralight platform, which is a reference platform for making next generation, slim, lightweight, sexy, fashion-forward glasses, were released to the world. You see, there's a thing called the Ultralight S up there. That's the sports model. We have a pair of those in the back if you haven't had a chance to look at them. Strikingly, exactly like a pair of normal sports glasses. The production of the Shield started in earnest, quite frankly, just at the end of 2023, going into 2024, because there's some very delicate issues associated with the alignment, containment, et cetera. You'll see we've got these titanium frames built into it now to resolve all of those issues. We have customer engagements, and we had a lot of them that we haven't been able to announce.
Some of the ones that we have, Quanta Computer. Quanta Computer is one of the largest ODM manufacturers on the planet Earth today. When you say ODM, what does that mean? They, for example, the Apple Watch, they produce and have produced in the past many of the Apple Watch platforms and Apple Watch systems that are out there. You all know NVIDIA, some of the NVIDIA servers with the latest AI technology in it. Quanta builds all those, mainframe-based computer systems that go in these giant server farms that are all doing augmented, excuse me, artificial intelligence. Garmin Ltd., a cool company. They're in a lot of different places, from aviation to the consumer markets, and we have relationships with them practically across the board, frankly.
We announced we didn't talk about the size of the order from them, but it's significant, and it's an order that has NRE and engineering fees associated with it, right on through to production products. XanderGlasses, this is really cool. Closed captioning. Some of our glasses in the back do this, but they have it all built just into the glasses. You hand it to a person that's hearing impaired, they can read everything that's happening around them. It's a huge upgrade compared to putting hearing aids in, when the hearing aids, for many people, don't work. Putting on a fashion-forward pair of glasses is also less cumbersome for people, and that market is in the millions of people around the world today that need this.
4.5 million servicemen, ex-servicemen, have really hard problems with hearing because of the environments that they're in. There's a whole bunch of others that we haven't announced, and we expect some of them to be announcing over the next 6-12 months here at Vuzix. Waveguides in the OEM side of our business. I've talked so much about our standard products and how it's enabled the company to develop the next generation technology. At every step, every year, we come out with new glasses, and they get more and more fashion-forward, and they have this amazing waveguide technology. As a result of all of that work and all of these years, we have built a platform that allows us to manufacture waveguides in high volume.
I'm gonna talk. I have some separate sections coming up here, but manufacturing high-volume waveguides at price points that I don't believe another company on this planet can compete with. You'll see where this plays out, it's literally in the billions of dollars worth of business opportunity. We started our OEM business maybe a year and a half, 2 years ago, and we have an amazing list of companies that are either working with us now or beginning to start working relationships with the company. Our facility over on 25 Hendricks Road, Rochester, actually, right behind it, that facility is designed to make upwards of 1 million waveguides a year, and you'll see that's just scratching the surface of how big this business is gonna be. It's high volume, and it's at price points that I don't think anybody will be able to compete with.
It can be made with materials that everybody wants to be using today, compared to what our competitors' materials are. At the same time, we've introduced some other technology around our waveguide. We talk about this technology called Incognito. It's a problem in the entire industry today. If you've seen HoloLens before, you put the HoloLens on, it's Microsoft's AR glasses that have waveguides in them, and what you see is glowing light coming out of the front of the glasses. That's a problem in the U.S. military, the IVAS program that they talk about, it's one of the biggest pitfalls that Microsoft has with those optics. Incognito allows us, technology that Vuzix has patents pending on, allows us to zero out, effectively, almost gone, any of that forward light.
So when you put a pair of our glasses on that support that Incognito technology, you can't tell they're on. You could be in some bar or at a theater someplace, the glasses are on, and you would have no idea you were wearing technology. And that's a critical piece for the broader markets and acceptance of this technology. When Google Glass came out, one of the problems was it was glowing out the front, and people were called, pardon the expression, but glass holes, when they were wearing these things because you stuck out and you looked like you were wearing oddball technology. For this industry to happen, that can't be the case. They have to be just like a normal pair of glasses, so you don't look stupid. Integrated optics is the other piece.
If you've got a pair of glasses today, you know you need your prescriptions. That's why you bought them. 60% of the planet Earth needs prescriptions, and we've developed into our waveguides a fully integrated prescription system that utilizes the standard prescription processes that the prescription industry supplies prescription with today. Our IP portfolio, that's grown from 300 over the last year to 375+, and it's an amazing portfolio of technology that does things like the integrated scripts and our Incognito, and some of this in technology around our high volume manufacturing, et cetera.
And then, in the first half of this year, we've done some significant realignment of the company's cash burns and the focus on energy and where we're putting our dollars to align it with where we see the most important parts of our business to create shareholder value with. And as a result of that, you'll be seeing a 30% reduction in our cash and opex. Excuse me, in cash opex, we put in place, and over 2023, a $16 million decrease in capex and license fees. So there's been a significant cost reduction to operate Vuzix Corporation and still deliver what we think is the best value for all of our shareholders. I'll talk a little bit more about that as I get further along. So at Vuzix, there's two pillars of growth for us. Everybody's pretty familiar with our enterprise-based smart glasses.
The other piece is the engineering and the OEM side of the business. I believe that you're starting to see a shift. The revenues aren't there yet, but you're going to see this happen. A shift of where the OEM side of our business will overshadow the product side of the business. That's not to say the product side of the business isn't a big opportunity. It is. But when you have to pick and choose where you put your resources, you put them where you can get the best return when you have limited resources. So the market opportunities in the millions of units and billions of dollars coming up, it's split into the two pillars that I just talked about. As it happens, we picked the right pillars, I think.
One of them is on the left-hand side, it's the enterprise market, and it's anticipated somewhere between $200 and $1 billion worth of a year in business opportunities increasing and growing. It requires a lot more infrastructure to deliver to that, and Vuzix is in this business. We're not going away with this business, but we're putting more focus and starting to put more focus on the broad market opportunities, which is on the right-hand column of that. The broad markets represents literally billions of dollars worth of business opportunity. I'm gonna fill you in further with a couple more slides, but it's really the sweet spot for where this business is. And the broader markets, the market drivers for this, quite frankly, is around the smartphone.
If we just take one data point, if you had a pair of glasses that were fashion forward, that people bought, that could connect to the artificial intelligence technology that's coming, it's going to overshadow the smartwatch business. The smartwatch business today is 300 million smartwatches a year that gets sold. Now, let's think about that for a minute. You're making waveguides, and you only get a very small piece of this business. Every year to make 1 million smart glasses, one eye smart glasses, you need 1 million waveguides, which means every 6 seconds, you have to be able to produce a waveguide. Think about that. This is Charlie in the Chocolate Factory kind of production. Bang, bang, bang, kind of production that's gonna be needed for this. Imagine when you've got to sell 300 million a year.
We're working with some very large companies right now, and their goal is to own that side of the business on the OEM business front for Vuzix Corporation. And I'll describe just a little bit more about that coming up. There's lots of other data points, but the bottom line is, if you listen to Google, if you listen to our friends over at Meta, if you listen to the guys at Amazon, they're all talking about glasses are the next platform.... But what's more important for them than the glasses is their AI engines and their software to be the standard that everybody uses, so that they can garner the revenues out of the connected person through their AI engines in the future. And with that, they're enabling the world to make smart glasses.
Problem is, everybody's gonna need waveguides, which is where, obviously, Vuzix plays, and I'll share more there shortly here. The data points are happening. You can see Apple's Vision Pro, although it's met with some rocky areas, it's also been met with some, a lot of really positive, and it is Apple's very first entrant. Meta with their VR offerings, and now Meta has got their Ray-Ban offerings, which are fashion-forward, AI-connected glasses without display screens in them. They're sadly missing that, which guaranteed is on its way. And then, of course, on the other HMD front, the video viewers and the likes, these are all markets now that over many years, this industry has struggled to get to, and they're now, just now, starting to come to fruition.
The other market driver, which is going to be significant for this entire industry, is the AI-enabled AR glasses that are coming. This is gonna be game-changing stuff. I only would recommend go out to YouTube, do a YouTube search on AI smart glasses, and look at what some of these companies are doing. It's absolutely gonna change the world, the way it works. And for Vuzix, we are in the catbird seat to deliver into this space. I'll explain a bit more. You know, we've got the patents, you know we've got the high-volume waveguide manufacturing at low cost. We've got an amazing roadmap and great partners that are lining up to work with Vuzix, and the Z100 is one of our first offerings in the space. It's game-changing. You can see it runs for something like two days on a charge.
There's not another pair of smart glasses that run for two days on a charge. Most of them run for a couple of hours at most. That almost makes them useless. When they're running for two hours, you gotta plug them in. How do you wear them all day? You can't. The Z100 is the first in a series of these that are coming. We've got more technology that's gonna be added a little bit. There'll be full audio, and there'll be camera-based systems coming up also, so they'll be all-encompassing, specifically designed to run around the AI technology that's coming from all of the big companies. So the, the Z100 is ... It's obvious what it can do. It ties to your phone. If you play with it in the back, you'll see you can do language translation today with it.
I'm speaking Spanish, you guys are reading English when you have the glasses on. If you're hearing impaired, you got closed captioning up in the glasses, so it allows you to stay informed with your phone in your pocket. We have a bunch of college students that use these glasses now, and they're reporting screen time down by 40% and 50%. It's huge when you don't have to take your phone out of your pocket, jam it in the, in your face, and take your mind off of everything else that's going on around the world in front of you. To prioritize over distractions, enhance functionalities for mapping, sports, fitness applications, et cetera. So the bottom line, the technology that's in smart glasses that really drives it to be successful, yes, there's silicon, yes, there's microphones. That stuff has been evolving.
There's giant companies that are making great progress on making them very, very tiny. The parts where innovation still needs to be done, that Vuzix has been driving, is in two spaces. One of them is the micro LED projection engines, the display engine that actually gives you an image in the glasses, and then the Waveguide itself. To get a feel for how that Waveguide works, you see the little projector. It's hard to tell that that's a projector, but if you were to take that thing and pull it out of that page and point it on the wall over there, it would project just like this projector's doing right here up on the screen. It would be the same thing, and you could replace it with it, but it's the size of a pencil eraser.
The waveguide allows you to take the output from that projection engine. It propagates through the waveguide using this thing called total internal reflection. Sorry, techie term. It's got these little nanostructure surfaces that we imprint on the surface of it that guide the light, and then, boom, when you look inside the waveguide, the image appears out in space in front of you. That looks just like the size of a regular pair of glasses lenses. That's really hard to do. I'll describe a little bit why the competition is so far behind, and why Vuzix is, is leading the space in this regard. And then finally, the micro LED projectors is an equally difficult component in all of this, which is Vuzix also plays a bit there. So why does Vuzix waveguides, and why in the waveguide competitive space do we stand out?
I mean, we're up against billion-dollar companies right now. First of all, those billion-dollar companies haven't been doing this for 26 years, so we have more experience than any other company on the planet Earth at making these glasses. I know we have some shareholders that have been with Vuzix almost as long as the whole ride, and it's been bumpy and up and down along the way, but the vision for where we're going has not changed. These great big companies are realizing, with all the money that they've spent, they still don't know how to get to the end run. We, on the other hand, have the whole process down, from design, right on through to making the tools, the materials associated with actually doing the imprinting, the mold release agents, the imprinting itself, all of it is done right here in Rochester, New York.
We have competitors. Dispelix is one of them. They designed a waveguide. You go to them, you can get a big waveguide or a small waveguide. Those are your choices. You come to Vuzix. Within three months, you get what you want. We can design it from the ground up and be in full production within a three-month period of time. All these ODM companies, all these guys that are trying to make product, they all don't want knockoffs. Nobody does. When you guys buy your glasses, how long do you spend online trying to find the right pair? The design, the industrial design, the capabilities of the waveguides, all of that has to change, and it has to be able to float with the appropriate industrial design and the team that you're building product for. Vuzix can do all of that, soup to nuts.
The rest of the competition can't. Dispelix, again, they do the design, then they go to a third party to actually produce their waveguides. That third party often uses equipment from companies like Applied Materials or EVG, and I'll describe a little bit here in a few minutes. They just, they just cannot compete with Vuzix because they're using standard semiconductor process equipment, and we just, we just are not on the same path at all. So soup to nuts from Vuzix, we have technology like Incognito. When you put the glasses on, you cannot tell that they're on. This is critical for the success of smart glasses coming up. There's a whole bunch of features, and you can add more or less capabilities into our Incognito based upon the slight impact on price that you might want or not want.
And then the other piece, quite obvious, you have to be able to support prescriptions. When people buy smart glasses, they're not gonna put them on top of their current glasses. It just doesn't work. You have to replace your prescription glasses with these glasses, and we have the intellectual properties to literally put together in a single piece, a prescription waveguide that includes the Incognito technology built into it at the same time. With all of this stuff taken together, we got the supply chain, soup to nuts, all the way through to the final prescription for the users available through Vuzix's, Vuzix's intellectual properties and our ODM partners, and our manufacturing customers love that. The facility to produce, again, is right here in Rochester, New York. This facility has enough space in it for us to 3x what we can do today.
Currently, we're still going through some process adjustments and improvements, but for us to hit 1 million waveguides, that's 6 seconds per waveguide, we'll be able to do that this year. That will happen out of our manufacturing plant. And interestingly enough, we're beginning to see stirrings from our customer base that actually that's our first stop along the way for them. It should be exciting. It's not there yet, but 2025, you're gonna start to see this business start to pick up, and it'll just accelerate from there, we believe. And we're planning on being able to accelerate our waveguide manufacturing at the same time together. So why Vuzix versus the competitors? On the left-hand side, we can make in-house capacity today, 1 million-plus units. It's a tenth of the cost. Why is it a tenth of the cost? How can we do that, yet the competition cannot?
Let's talk ... We'll go with the prismatic model, the one in the middle. There's I got three different kinds of competitors on the right-hand side there. The prismatic model. What that is, that waveguide, what they do is they take a stack of glass of maybe 20 prisms. They're maybe this long, and they're, like, an eighth of an inch thick, and they're cut on a diagonal like this, right? And then they go in there, and they, they treat the surface of each one of those, so they turn it into a, like, a mirror beam splitter thing, and they stack all that stuff up, and then they got a front end, and then they got another 10 of these things that they put over here on this side.
And then they put this whole thing together, and then they flatten it, and align it, and then glue it. It's like 500 steps. Every 6 seconds. That's just not gonna happen. The other piece is, they can only do glass. And right now, there's a big concern in this whole industry. There is, at best, 6% of people's prescriptions that are still in glass, and it's only those people that need really high index, glasses that have them. Because of safety issues, people want alternative materials. The prismatic model can't get to these alternative materials. If you look at the semiconductor model, the one on the top, what happens here is they start with a 300-millimeter wafer.
If you're familiar with the semiconductor industry, when you, when you make an Intel processor or an NVIDIA processor, you got a - literally this thing, it's a big circle, looks like a record player platter. That's a semiconductor wafer. These guys built a model where they make waveguides using semiconductor process equipment, so they're stuck with a 300 millimeter platter because that's all the equipment runs on. And if you look at how many waveguides they can put on that platter, it's upwards of 12, maybe 13, if you can make them a little bit smaller. That's just not scalable. You will never get more than 12 waveguides on a 300 millimeter platter. It's just that simple. It doesn't scale. Our process equipment, you can make one boatload of waveguides in a short period of time. Completely different process, completely different way of manufacturing and making the waveguides.
The rest of the process equipment that we have is designed for high volume handling of glass and or other substrate materials. So we don't come out of the semiconductor industry. We come out of the optics industry here in Rochester, New York, one of the optics centers of the world, University of Rochester, et cetera. So instead of tackling this problem from the semiconductor side of the equation, we took a completely different path to go down, which is giving us a lot of advantages. And then the other piece is the display engine, and you're gonna hear a lot about micro LEDs over the coming years. We believe micro LED is going to be a game changer in this space. We have multiple companies that we work with. We've invested in one of them.
Once the micro LED can be put on a single chip, full color, it will be the next big step forward. Between now and then, what's happening is people are using LCOS. There's a brand new LCOS engine that's come out, display. It's a little, tiny thing, 0.13 inches, and you can front light it. Now, it's gonna be relatively expensive compared to what the micro LED could be in the end. And it's gonna be much bigger, but small enough to make fashion-forward glasses still. So between now and when micro LEDs become available, these LCOS engines, and you will hear some announcements coming from Vuzix around LCOS and our waveguides and partnerships that we're making along the way, that will drive this business on the front end.
But we do believe that in the longer run, micro LED is gonna be the play, and we have several irons in the fire in this regard. So, so taking a step back on our enterprise side of our business, our AR smart glasses for enterprise and productivity tools, warehousing, field service, AI and edge compute, healthcare, and manufacturing. These pieces of the business, we have a, a nice pipeline. Crystallizing on this pipeline is difficult. It takes time. There's, all these software applications have to come out, but we feel it's happening. That said, we have taken our foot off the gas a little bit, and we're focusing on key accounts on this side of the space, as opposed to trying to drive and push really hard to grow the business ahead of when it's ready to grow. It's coming. Our baseline revenues are here with them.
We're hoping that it will grow here faster as we get into the second half of this year. The benefits to people, we've talked about this many, many times, increased productivity, reducing worker errors. When you bring an employee on board, the training times go way, way down, et cetera. We've got a series of products here. Beautiful thing about this series of products is it has helped us develop the technology that we need for the OEM side of our business also. In the globe with that is the applications, and we have found that one of the most challenging parts of this business is on the application side and getting the application ready to roll so that the application works with the glasses, and it finally gets integrated into the systems that are at these people's plants or warehouses, et cetera.
So we acquired a company called Moviynt. It's taking them longer than we had hoped to realize success. I said they have some significant opportunities right now. It looks very, very compelling. Knock on wood, we should see some great forward momentum here through the rest of the summer around this. So you heard, I think, through this, that we've been shifting a bit where our focus is at the company. We're really starting to put a much more emphasis on the OEM side of the business. And as a result of that, we've been able to do some quite significant cost cutting to align Vuzix to be able to focus more on the OEM side of our business, select AR smart glasses side of what we're doing, and as you can see, the OEM side and the technology associated with that.
There's certain areas where we're minimizing and reducing our investments. We, from a headcount perspective, have, across the board, lowered our footprint significantly, quite frankly. This was very heartening. We put together a salary reduction program for equity, and over 40%, 45% of the company participated in that, saving the company $1.7 million. We have decided that we have plenty of inventory for the current sales rates, so we have slowed to almost zeroed the manufacturing of some of the products that are on that side of the house, which has allowed us to also make some adjustments. We're expecting to reduce the operating distinct cash usage to $4.5 million per quarter, compared to $6.2 per quarter last year. That's a 30% reduction.
Investments in capex and licenses are decreasing to $3.1 million from $19.2 million in 2023. So these are significant reductions in burn and cost savings for the company. We'll see some material operating savings through the year. Want to share just a little bit of near-term catalyst that I think we can all look forward to. Our defense and commercial OEM production contracts and volume of orders, we're seeing that start to happen. I think in my last conference call that I gave, I talked about a few defense programs that we're expecting that will roll into early production, and that's right on track. We're looking forward to some enterprise smart glasses rollouts that we're gonna be able to talk about in the fall of the year. Waveguide manufacturing programs with, you know, world-class offerings.
Nobody can supply what we can supply on this side of the business. We've got the high volume capabilities, we've got world's best pricing, we've got small and large format waveguides now. Those large format waveguides, you might imagine, that can be used in heads-up displays for automotive, for vehicles, for defense vehicles. Stand back, sits up on the dashboard. It can be an augmented reality display that literally, when you look through it, it paints on the road in front of you the directions to get to where you're going. We've got the Incognito and prescriptions. All of that is enabling that waveguide manufacturing program side of our business, and that rolls into, I believe, OEM designs with Fortune 500 partnerships that will be coming here over the next 12 months. And then potential customer and partner equity investments in Vuzix.
Some of these companies are betting the farm on the technology that Vuzix brings to the table, and what comes with that is their interest in seeing Vuzix successful. So knock on wood, there is some areas where we're having some discussions that could result in investments and much closer relationships with some of those companies. So the bottom line, we're ideally positioned to become a leading supplier in this unfolding, multi-billion dollar smart glasses market. There's not a company that's in the technology space that doesn't believe this is coming, and we are in the catbird seat to deliver against it. We have deep industry knowledge. These should be profitable at scale. We have a strong IT position, and there's numerous stock price catalysts to expect over the coming year. Thank you, everybody. Can I answer any questions?