| Page |
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| Item 1 | Business | 1 |
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| Item 1A | Risk Factors | 13 |
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| Item 1B | Unresolved Staff Comments | 27 |
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| Item 1C | Cybersecurity | 27 |
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| Item 2 | Properties | 29 |
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| Item 3 | Legal Proceedings | 29 |
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| Item 4 | Mine Safety Disclosures | 29 |
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| Item 5 | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 29 |
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| Item 6 | [Reserved] | 30 |
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| Item 7 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 30 |
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| Item 7A | Quantitative and Qualitative Disclosures about Market Risk | 45 |
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| Item 8 | Financial Statements and Supplementary Data | 45 |
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| Item 9 | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 45 |
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| Item 9A | Controls and Procedures | 46 |
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| Item 9B | Other Information | 47 |
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| Item 9C | Disclosure Regarding Foreign Jurisdictions that Prevent Inspections | 47 |
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| Item 10 | Directors, Executive Officers and Corporate Governance | 47 |
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| Item 11 | Executive Compensation | 47 |
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| Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 47 |
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| Item 13 | Certain Relationships and Related Transactions, and Director Independence | 47 |
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| Item 14 | Principal Accountant Fees and Services | 48 |
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| Item 15 | Exhibits and Financial Statement Schedules | 49 |
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ii
FORWARD-LOOKING STATEMENTS
This annual report includes forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on our management’s beliefs and assumptions and on information currently available to our management. The forward-looking statements are contained principally under the headings “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and “Business.” Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements concerning:
| ● | trends in our operating expenses, including personnel costs, research and development expense, sales and marketing expense, and general and administrative expense; |
| ● | the effect of competitors and competition in our markets; |
| ● | our wearable display products and their market acceptance and future potential; |
| ● | our ability to develop, timely introduce, and effectively manage the introduction of new products and services or improve our existing products and services; |
| ● | expected technological advances by us or by third parties and our ability to leverage them; |
| ● | our ability to attract and retain customers; |
| ● | our ability to accurately forecast demand and adequately manage inventory; |
| ● | our ability to deliver an adequate supply of product to meet demand; |
| ● | our ability to maintain and promote our brand and expand brand awareness; |
| ● | our ability to detect, prevent, or fix defects in our products; |
| ● | our reliance on third-party suppliers and manufacturers, as well as logistics providers and our limited control over such parties; |
| ● | trends in revenue, costs of revenue, and gross margin and our possible or assumed future results of operations; |
| ● | our ability to attract and retain highly skilled employees; |
| ● | the impact of foreign currency exchange rates; |
| ● | the impact of further pandemics like COVID-19 on our business and our response to it; |
| ● | the effect of future regulations; and |
| ● | general market, political, economic and business conditions. |
All statements in this annual report that are not historical facts are forward-looking statements. We may, in some cases, use terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would” or similar expressions that convey uncertainty of future events or outcomes to identify forward-looking statements.
Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date the statements are made, and we undertake no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as may be required by applicable law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.
Part 1
