Vuzix slammed with allegations of fraud as 10K shows more big losses

Website Moxreports.com has published a report calling Vuzix a fraud, you can read it here:  

https://moxreports.com/wp-content/uploads/2018/03/b324-Vuzix-Fraud-Short-version-toned-done.pdf

The biography on the website is of one Richard Pearson which says he has a degree in finance from USC.  The allegations are that Vuzix engaged in a stock promotion scheme involving dozens of mainstream media outlets to artificially pump the PPS which allowed the company to raise $30 million via a dilutive share offering in January of 2018.

As of this writing it does not appear that Vuzix has responded in any way to the allegations.  

This isn't the first time a publicly traded firm has been accused of being engaged in fraudulent activity. Just off the top of my head I can recall numerous claims being made over the past 20 odd years:  Enron, Nortel, Sino Forest Cynk Communications...its a long list, Warning Model Management, Adzone Research, Worldcom....I'm sure loyal fans of this miserable and pathetic little blog, (both of them) can think of a few dozen others.   

I will leave readers to go over the Mox Report article themselves and instead focus on the bottom line results as reported in the company's just released 10K for the year 2017.  I have written before that while the AR/VR space is certainly exciting, in the real world a company needs to  have revenues eventually exceed expenses in order to be viable.  

Vuzix has been around for over 20 years now, so let's see how they did.  Here's the link to the filing: 

http://secfilings.nasdaq.com/filingFrameset.asp?FilingID=12631582&RcvdDate=3/16/2018&CoName=VUZIX%20CORP&FormType=10-K&View=html

For the year ended Dec. 31st 2017 the loss attributable to common shareholders came in at over $21.3 million.  That compares to the previous year when the loss was over $20.8 million.  

There will be a conference call on Monday, and just like last year I expect there will be talk about this being a pivotal year with all the usual forward looking and safe harbor protected hyperbole.  

There's not much more to say here obviously, the business is performing as it has in the past, losing money by the bucket full.  At the end of 2017 the accumulated deficit was at $96.4 million, assuming they've continued losing about $2 million per month that number is already over $100 million.  

If it weren't for the money generated from printing and selling shares into the market.....

Good luck in any case, maybe some more media outlets will write some nice things and help pump the price up again.  

Disclosure.  As mentioned in previous posts, I own VUZI put options.