Vuzix Corporation Has Ceased Funding For Its Development Activities With Atomistic SAS Under A License Agreement. Atomistic Exercised Its Right To Terminate The Granted License On July 1, 2024, Following Vuzix's Decision; Vuzix Retains Rights To License Royalties From Atomistic, An Equity Interest, And A Board Appointment. Vuzix Must Incur An Impairment Charge Of $32.2M Due To The Termination
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Vuzix Corporation has ceased funding for its development activities with Atomistic SAS under a license agreement. Atomistic terminated the license on July 1, 2024. Vuzix retains rights to license royalties, an equity interest, and a board appointment but must incur an impairment charge of $32.2M.
July 03, 2024 | 5:05 pm
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Vuzix Corporation has ceased funding for its development activities with Atomistic SAS, leading to the termination of the license agreement. Vuzix will incur a $32.2M impairment charge but retains rights to license royalties, an equity interest, and a board appointment.
The termination of the license agreement and the $32.2M impairment charge are likely to negatively impact Vuzix's stock price in the short term. However, retaining rights to royalties, an equity interest, and a board appointment may provide some long-term benefits.
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