Innovative Eyewear Inc. Reports Full Year 2024 Financial Results

Rhea-AI Summary

Innovative Eyewear (NASDAQ: LUCY) reported its full year 2024 financial results, showing a 42% revenue increase to $1,636,440 from $1,152,479 in 2023. The growth was driven by new product launches including Nautica®, Eddie Bauer®, and Lucyd Armor safety smart glasses collections.

The company's gross profit margin improved to 13% in 2024 from -10% in 2023, primarily due to reduced frame and lens costs. However, operating expenses increased 21% to $8,138,892, largely due to higher sales and marketing expenses (+32%) and legal costs. The net loss for 2024 was $7,766,515 ($5.19 per share).

Q4 2024 marked the company's highest quarterly revenue at $690,688, up 12% year-over-year, with gross margin improving to 14%. The company expanded its retail presence to over 400 optical stores and partnered with Nebraska Furniture Mart. Looking ahead, LUCY plans to launch Reebok® smart glasses lines in 2025.

Positive

• 42% year-over-year revenue growth to $1.64M
• Gross profit margin improved from -10% to 13%
• Record quarterly revenue in Q4 2024 ($690,688)
• Expanded retail presence to over 400 optical stores
• Strong liquidity position with $7.53M in cash and investments
• New retail partnership with Nebraska Furniture Mart

Negative

• Net loss increased to $7.77M from $6.66M in 2023
• Operating expenses grew 21% to $8.14M
• 32% increase in sales and marketing expenses
• Legal costs increased by $318,000
• Loss per share of $5.19 in 2024

Insights

Financial Analyst

Innovative Eyewear's financial results present a mixed picture that requires careful analysis. The 42% year-over-year revenue growth to $1,636,440 demonstrates meaningful sales traction, particularly in Q4 which delivered the company's strongest quarterly revenue ever at $690,688. The dramatic improvement in gross profit margin—from -10% to 13% annually and from -29% to 14% in Q4—shows significant operational progress through better supplier relationships and economies of scale.

However, these improvements must be weighed against persistent challenges. Despite revenue growth, operating expenses increased 21% to $8,138,892, resulting in a net loss of $7,766,515. While the per-share loss decreased from $10.87 to $5.19, this improvement came largely through share dilution, with outstanding shares increasing 144% from 613,000 to 1,496,357.

The company's liquidity position appears stable with combined cash and short-term investments of $7,524,171, but the current burn rate suggests approximately one year of runway. The minimal non-current liabilities of $5,450 present a clean balance sheet, though ongoing funding needs remain a concern. The expansion to over 400 optical stores and strategic brand partnerships with established names like Nautica, Eddie Bauer, and the upcoming Reebok line represent meaningful distribution channels, but the company remains far from profitability with operating expenses approximately 5x current revenue levels.

Revenue increased 42% over prior year

MIAMI, March 25, 2025 /PRNewswire/ -- Innovative Eyewear Inc., (NASDAQ: LUCY, LUCYW), the developer of smart eyewear under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands, today announced its full year 2024 financial results.

Net revenue for the year ended December 31, 2024 was $1,636,440, an increase of 42% from revenue of $1,152,479 in the prior year. This increase was primarily attributable to growth in unit sales volume, largely driven by product launches during 2024 of the co-branded Nautica® Powered by Lucyd and Eddie Bauer® Powered by Lucyd collections, as well as the Lucyd Armor safety smart glasses line. Also contributing to the growth in revenues were the Company's continued investments in marketing and advertising initiatives, as well as increased public interest and growth in smart glasses and the wearable products category.

Gross profit margin for 2024 was 13%, compared with negative 10% for 2023. This improvement in gross profit margin was mainly attributable to improvements related to the cost of frames (which added 13 percentage points to gross profit margin) and in the cost of lenses (which added 8 percentage points to gross profit margin) compared to 2023.

Total operating expenses in 2024 were $8,138,892, a 21% percent increase from total operating expenses of $6,736,213 in 2023. This increase was primarily the result of an increase in 2024 of $659,144, or 32%, in sales and marketing expense in order to drive sales growth, and an increase of $586,332, or 15%, in general and administrative expense, including an increase in legal costs of $318,000 largely as a result of various shareholder and equity-related matters during the current year period, compared to 2023.

The Company had a net loss in 2024 of $7,766, 515, or $(5.19) per share, compared with a net loss of $6,663,428, or $(10.87) per share, in 2023.

Weighted average number of shares outstanding was 1,496,357 at December 31, 2024, and 613,000 at December 31, 2023.

Cash and cash equivalents at December 31, 2024 were $2,628,987, in addition the Company held $4,895,184 in short-term U.S. Treasury investments as of December 31, 2024, vs cash and cash equivalents of $4,287,447 held in the prior year.  Management believes that including such investments as part of the Company's overall liquidity, would provide a more accurate depiction of the Company's liquidity and economic position.

Non-current liabilities at December 31, 2024 were $5,450, and $35,450 at December 31, 2023.

Net cash flows from financing activities were $10,243,327 in 2024 and $6,661,394 in 2023.

For the fourth quarter ended December 31, 2024, net revenue was $690,688, the Company's highest quarterly revenue since inception and an increase of 12% compared with the fourth quarter in 2023.  

Gross profit margin for the fourth quarter ended December 31, 2024 improved by 43 percentage points to 14%, compared to negative 29% for the same quarter in 2023. This improvement was primarily due to supplier changes resulting in higher quality products and lower manufacturing costs, as well as improved economies of scale driven by higher unit sales volumes.

During the fourth quarter of 2024, Innovative Eyewear also announced several milestones, including:

• the launch of Lucyd Armor™, the first ANSI-certified smart safety glasses for all-day wear
• CSA certification on the Armor, making it available for safety use in Canada as well as the USA.
• the launch of four new smart glasses with enhanced features and improvements to the core Lucyd Lyte product line, including the use of advanced TR90 plastic for improved adjustability and durability
• a successful Vision Expo West trade show, resulting in new optical stores onboarding the company's smart frames and bringing the total number of such stores to over 400.
• a new retail partnership with Nebraska Furniture Mart, bringing the full range of the Company's smart eyewear products to this Berkshire Hathaway-owned leading Midwestern retailer
• the launch of the first-ever generative AI fashion show for eyewear

An image of the upcoming Reebok Powered by Lucyd Voltage style. Courtesy Innovative Eyewear, Inc.

Future Outlook

Following its launches of three new lines of smart glasses in 2024 (Nautica® Powered by Lucyd, Eddie Bauer® Powered by Lucyd , and Lucyd Armor), the Company anticipates launching the Reebok® Powered by Lucyd sport smart glasses line in the second quarter of 2025, and a Reebok® Optical Smart Eyewear collection latter in 2025.

The Company also continues to actively pursue distribution of its products through major national retailers, which management believes, if successful, could have a positive material impact on revenues in the next three to 12 months.

Harrison Gross, CEO of Innovative Eyewear Inc., commented,

"Our 2024 fourth quarter revenue was our best quarter yet, and we have continued the trend of outperforming sales each quarter on a year-over-year basis, for the last 18 months. As we look ahead to 2025, we believe we are well positioned to build on our momentum and significantly grow both our total revenues and our market share. I am particularly excited about the potential of our upcoming Reebok® product lines which we will be launching in 2025 coupled with the continued significant traction of the Lucyd Armor^TM smart safety glasses."

About Innovative Eyewear, Inc.

Innovative Eyewear is a developer of cutting-edge ChatGPT enabled smart eyewear, under the Lucyd®, Nautica®, Eddie Bauer® and Reebok® brands. True to our mission to Upgrade Your Eyewear®, our 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.

Forward-Looking Statements

This press release contains certain forward-looking statements, including those relating to the Company's business operations, projections, market position, introduction of future product lines and developments. 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. 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."

Investor Relations Contact: 

Scott Powell
Skyline Corporate Communications Group, LLC
Telephone: +1 (646) 893-5835
Email: scott@skylineccg.com

 

INNOVATIVE EYEWEAR, INC.
BALANCE SHEETS
December 31, 2024 and 2023
		2024		2023
ASSETS
Current Assets
Cash and cash equivalents		$          2,628,987		$          4,287,447
Investments in debt securities (U.S. Treasury bills)		4,895,184		-
Accounts receivable, net		107,918		93,211
Prepaid expenses		266,935		313,648
Inventory prepayments		424,594		323,520
Inventory		831,757		533,239
Due from Tekcapital and Affiliates		23,394		6,256
Other current assets		59,447		59,447
Total Current Assets		9,238,216		5,616,768
Non-Current Assets
Patent costs, net		451,302		286,429
Capitalized software costs		-		88,073
Property and equipment, net		107,562		154,848
Other non-current assets		41,229		72,644
TOTAL ASSETS		$          9,838,309		$          6,218,762
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Accounts payable and accrued expenses		$             692,817		$             581,986
Deferred revenue		44,901		42,500
Total Current Liabilities		737,718		624,486
Non-Current Liabilities
Deferred revenue		5,450		35,450
TOTAL LIABILITIES		743,168		659,936
Commitments and contingencies (see Note 7)		-		-
Stockholders' Equity
Common stock (par value $0.00001, 50,000,000 shares authorized, and 2,452,632 and 747,416 shares issued and outstanding as of December 31, 2024 and 2023, respectively) (1)		25		7
Additional paid-in capital (1)		33,831,046		22,528,234
Accumulated deficit		(24,735,930)		(16,969,415)
TOTAL STOCKHOLDERS' EQUITY		9,095,141		5,558,826
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$          9,838,309		$          6,218,762

(1)	The values of Common stock and Additional paid-in capital, as well as the number of shares issued and outstanding, have been retroactively adjusted in order to give effect to the Company's 1-for-20 reverse stock split. See Note 2 and Note 8.

 

INNOVATIVE EYEWEAR, INC.
STATEMENTS OF OPERATIONS
CONDENSED STATEMENTS OF OPERATIONS
For the years ended December 31, 2024 and 2023
	Year ended			Year ended
	December 31,			December 31,
	2024			2023			Change
Revenues, net	$     1,636,440	100 %		$     1,152,479	100 %		$       483,961	42 %
Less: Cost of Goods Sold	(1,421,250)	87 %		(1,271,808)	110 %		(149,442)	12 %
Gross Profit (Deficit)	215,190	13 %		(119,329)	-10 %		334,519	280 %
Operating Expenses:
General and administrative	(4,473,292)	273 %		(3,886,960)	337 %		(586,332)	15 %
Sales and marketing	(2,706,213)	165 %		(2,047,069)	178 %		(659,144)	32 %
Research and development	(819,387)	50 %		(662,184)	57 %		(157,203)	24 %
Related party management fee	(140,000)	9 %		(140,000)	12 %		-	0 %
Total Operating Expenses	(8,138,892)	497 %		(6,736,213)	584 %		(1,402,679)	21 %
Other Income (Expense)	157,187	10 %		195,150	17 %		(37,963)	-19 %
Interest Expense	-	0 %		(3,036)	0 %		3,036	100 %
Total Other Income (Expense), net	157,187	10 %		192,114	17 %		(34,927)	-18 %
Net Loss	$   (7,766,515)	475 %		$   (6,663,428)	578 %		$   (1,103,087)	17 %

 

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SOURCE Innovative Eyewear, Inc.

FAQ

What was LUCY's revenue growth in 2024?

LUCY's revenue grew 42% to $1,636,440 in 2024, compared to $1,152,479 in 2023.

How did LUCY's gross profit margin improve in 2024?

Gross profit margin improved from -10% in 2023 to 13% in 2024, mainly due to reduced frame costs (13 percentage points) and lens costs (8 percentage points).

What were LUCY's Q4 2024 performance highlights?

Q4 2024 achieved record quarterly revenue of $690,688 (up 12% YoY) with improved gross margin of 14%, compared to -29% in Q4 2023.

What new product launches are planned for LUCY in 2025?

LUCY plans to launch the Reebok® Powered by Lucyd sport smart glasses in Q2 2025 and a Reebok® Optical Smart Eyewear collection later in 2025.

How much cash and investments does LUCY have as of December 31, 2024?

LUCY had $2.63M in cash and $4.90M in short-term U.S. Treasury investments, totaling $7.53M in liquid assets.