What Vuzix Corporation told the SEC could break it.

Vuzix's revenue is concentrated — two customers were 25% and 11% of 2025 product revenue and four were 50%/17%/11%/11% of engineering-services revenue, with two customers comprising 55%/35% of receivables.

“Two customers represented 25 % and 11 %, respectively, of total product revenue and four customers represented 50 %, 17 %, 11 %, and 11 %, respectively, of engineering services revenue for the year ended December 31, 2025.”

Vuzix owns the tooling for its custom components but most of it is located in China, and it relies on third-party manufacturing in the U.S. and Asia, concentrating production geography and disaster/political risk.

“While we do not manufacture our raw components, other than waveguides, we do own the tooling that is used to make our custom components. Most of such tooling is located in China.”

Because Vuzix manufactures in tariff-targeted countries and lacks domestic alternatives, proposed/implemented tariffs and retaliatory trade measures pose particular cost and supply risks.

“Given our manufacturing in some of those countries, and our lack of manufacturing elsewhere, policy changes in the United States or other countries, such as the tariffs already proposed, implemented and threatened, present particular risks for us.”

Vuzix sources many customized critical components from a limited number of, or a single, supplier under purchase orders (not long-term agreements); some suppliers are financially weak or potential competitors, exposing it to supply disruption.

“Many of these components are customized or custom made for us, and certain key components are sourced from a limited number of suppliers or from a single supplier, some of which may have limited financial resources or could potentially become competitors.”