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13 November 2024
Tekcapital
Plc
("Tekcapital", the "Company"
or the "Group")
Innovative Eyewear Inc.
Reports Third Quarter 2024 Financial Results
For the Nine Month Period
Revenue Increased 76% YOY
Tekcapital Plc (AIM: TEK), the UK
intellectual property investment group notes that Innovative
Eyewear, Inc. ("Innovative Eyewear" or "Lucyd")) (NASDAQ: LUCY;
LUCYW), the developer and retailer of ChatGPT enabled smart eyewear
under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, has
announced its Q3 2024 financial results which are summarised
below.
On a year-to-date, net revenue for
the nine months ended September 30, 2024 was $945,752, an increase
of 76% from the comparable period in the prior year. This growth
was primarily driven by Lucyd's new product launches over the past
year (including the Lyte XL collection in the fourth quarter of
2023 and the co-branded Nautica® Powered by Lucyd and Eddie Bauer®
Powered by Lucyd collections in the current year period). Also
contributing to their growth in year-to-date revenues are their
on-going investments in marketing and advertising initiatives, as
well as increased public interest and growth in smart
glasses.
Net revenue for the quarter ended
September 30, 2024 was $253,599, an increase of 14% from the
quarter ended September 30, 2023. This year-over-year increase was
primarily attributable to strategic reductions in price discounts
and other adjustments to our pricing, aimed at enhancing
profitability and attracting distributors to manage our wholesale
business. The higher average order value and focused efforts in
specific channels contributed to the overall revenue
growth.
During the third quarter of 2024,
Innovative Eyewear announced several important milestones,
including:
1. Launching its
flagship Lucyd Lyte collection on Target.com
2. Signing an exclusive
distribution agreement with Ecom Gulf FZCO (d/b/a Mixireal.com),
which represents a significant opportunity for international
expansion in the Middle East market and
3. Unveiling and
exhibiting its new line of ANSI-certified smart safety glasses,
Lucyd Armor, at Vision Expo West in Las Vegas.
Future Outlook
After the successful launch of the
Eddie Bauer® Powered by Lucyd line in the second quarter of 2024,
and the recent launch of the Lucyd Armor smart safety glasses line
in October 2024, the Company anticipates launching the Reebok®
Powered by Lucyd line in the first quarter of 2025, followed by a
Reebok® Optical Smart Eyewear collection in the first half of
2025.
Meanwhile, the Company also remains
focused on introducing Lucyd products in major national retailers,
which management believes will have a significant positive impact
on revenues in the next three to eighteen months.
On the cost side, the Company has
already started to realize the benefit of lower lens fulfilment
costs, which decreased by approximately 50% in the third quarter of
2024 as compared with the prior year quarter, largely due to the
recent engagement of a new lens supplier based in Miami, Florida.
The Company anticipates that its gross margins will improve over
the next 6+ months as new products sourced from a new supplier are
launched, as the frames for the new product lines are designed
differently from the Company's other products and accordingly have
fewer components, thus reducing their price. The Company estimates
that the unit cost of the Lucyd Armor line and Reebok® Powered by
Lucyd line will be at least 30% lower than its Lucyd Lyte
models.
Harrison Gross, CEO of Innovative Eyewear Inc.,
commented:
"We have continued the trend of
outperforming sales each quarter on a year-over-year basis, which
we have done every quarter for the last 15 months. I am pleased by
our continued growth and excited by the potential of further
expansion with the upcoming launches of new product lines. Our
recent onboardings into Target.com, Kits.com and Nebraska Furniture
Mart indicate that major retailers are warming up to the category
of smart eyewear, particularly when delivered in the optical-first
form factor that our products are known for. There has been
significant retail interest particularly around our new Lucyd Armor
line, and the upcoming Reebok Powered by Lucyd collection. Based on
recent discussions, I anticipate additional placements with leading
American retailers in 2025.
About Innovative Eyewear, Inc.
Innovative Eyewear is a developer and retailer of
ChatGPT smart eyewear, under the Lucyd®,
Nautica®, Eddie Bauer® and Reebok® brands.
True to their mission to Upgrade
Your Eyewear®, their Bluetooth audio glasses
allow users to stay safely and ergonomically connected to their
digital lives and are offered in hundreds of frame and lens
combinations to meet the needs of the optical market. To learn more
and explore our continuously evolving collection of smart eyewear,
please visit www.lucyd.co.
About Tekcapital plc
Tekcapital creates value from
investing in new, university-developed discoveries that can enhance
people's lives. Tekcapital is quoted on the AIM market of the
London Stock Exchange (AIM: symbol TEK) and is headquartered in the
UK. For more information, please visit www.tekcapital.com.
LEI: 213800GOJTOV19FIFZ85
Tekcapital currently owns 259,455
shares of Innovative Eyewear, Inc. representing approximately 10%
of the Issued Share Capital of Innovative Eyewear, Inc.
For
further information, please contact:
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Tekcapital Plc
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Via Flagstaff
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Clifford M. Gross,
Ph.D.
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SP Angel Corporate Finance
LLP
(Nominated Adviser and
Broker)
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+44 (0) 20 3470
0470
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Richard Morrison/Charlie Bouverat
(Corporate Finance)/Abigail Wayne / Rob Rees (Corporate
Broking)
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Flagstaff Strategic and Investor
Communications
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+44
(0) 20 7129 1474
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Tim Thompson/Andrea Seymour/Fergus
Mellon
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Forward-Looking
Statements
This press release contains certain
forward-looking statements, including those relating to the
anticipated introduction of new products into new points of
distribution. Forward-looking statements are based on the Company's
current expectations and assumptions. The Private Securities
Litigation Reform Act of 1995 provides a safe-harbor for
forward-looking statements. These statements may be identified by
the use of forward-looking expressions, including, but not limited
to, "anticipate," "believe," "continue," "estimate," "expect,"
"future," "intend," "may," "outlook," "plan," "potential,"
"predict," "project," "should," "will," "would" and similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters, but the absence of
these words does not mean that a statement is not forward-looking.
These forward-looking statements include, but are not limited to,
statements regarding the expected launch date for the new smart
safety eyewear connection. The Company undertakes no obligation to
publicly update any forward-looking statement, whether as a result
of new information, future events or otherwise. Important factors
that could cause actual results to differ materially from those in
the forward-looking statements are set forth in the Company's
filings with the Securities and Exchange Commission, including its
annual report on Form 10-K under the caption "Risk
Factors."