Innovative Eyewear — Q3 2026 Earnings Summary

Financial Performance

• Preliminary Q3 2026 net sales were approximately $1.04 million, representing a 55% year-over-year increase over Q3 2025 and marking the highest quarterly net sales in the Company's history.
• Q3 2026 growth followed a 163% year-over-year increase in Q3 2025.
• The Company achieved its thirteenth consecutive quarter of year-over-year revenue growth.
• Preliminary net sales for the nine months ended September 30, 2026, were approximately $2.8 million, a 66% increase over the nine months ended September 30, 2025.
• Nine-month net sales ($2.8 million) already exceed the full-year 2025 net sales of $2.66 million.
• Third quarter growth was driven by a 25% increase in direct-to-consumer and online marketplace sales, alongside the first shipments under new wholesale programs.
• Preliminary figures are unaudited estimates subject to completion of quarter-end financial close procedures and independent review; actual results may differ materially.

Guidance and Future Outlook

• The Company anticipates new wholesale and international channels will enhance growth in the fourth quarter of 2026 and into 2027.
• Wholesale expansion is expected to have a more meaningful effect on net sales beginning in Q4 2026.
• The fourth quarter is historically the Company's strongest quarter of the year.
• Full Q3 2026 financial results are expected to be reported in mid-November 2026 via the filing of a Form 10-Q.

Business Segments and Product Lines

• The Company is launching the new Lucyd Aero™ ultra-light smart eyewear collection for the holiday 2026 season.
• Management intentionally ran promotional pricing on older models to clear inventory ahead of the Lucyd Aero™ launch.
• The Company operates under the Lucyd®, Lucyd Armor®, Reebok®, Nautica®, and Eddie Bauer® brands.
• New wholesale programs include initial shipments to a major U.S. big-box retailer for the Lucyd Armor® rollout.
• In Canada, product placement is underway across approximately 345 locations via a partnership with FYihealth Group (operator of FYidoctors, Visique, and Solis optical clinics).
• In Australia and New Zealand, the Company received initial purchase orders for over 3,000 smart eyewear units from exclusive distributor Directed Electronics, with orders expected to ship in October 2026.

Market and Competitive Landscape

• The U.S. big-box retailer plans to offer products in more than 150 stores nationwide, with in-store sales expected to begin in October 2026.
• The Canadian partnership with FYihealth Group commenced during the third quarter, with initial stock and demonstration units shipped in July and subsequent restocks beginning.
• Directed Electronics, the distributor for Australia and New Zealand, has over 20 years of experience bringing international consumer electronics brands to market.
• The Company's products are offered in hundreds of frame and lens combinations for optical, sunglass, sporting goods, and safety eyewear markets.

Risks and Challenges

• Preliminary net sales figures are estimates and subject to adjustment following the quarter-end close and independent review.
• Forward-looking statements regarding growth, order timing, and market acceptance carry risks, including potential material differences between estimates and actual results.
• Specific risk factors include the timing and volume of orders, reorders, shipments, and sell-through at retail and distribution partners.
• Risks include the timing and market acceptance of new products, specifically the Lucyd Aero™.
• The Company faces risks related to its ability to obtain additional financing and continue as a going concern.
• The Company must maintain compliance with The Nasdaq Stock Market's continued listing requirements.

Management Commentary and Tone

• CEO Harrison Gross stated that preliminary Q3 results reflect continued progress in executing the growth strategy, noting the delivery of the highest quarterly net sales in company history.
• Management highlighted a strategic approach of conserving advertising and marketing spend while running promotional pricing on older models to prepare for the Q4 launch.
• Gross expressed anticipation that the three new wholesale and international channels opened during the quarter will enhance growth in Q4 2026 and 2027.

Other Key Points

• The press release contains forward-looking statements protected by the Private Securities Litigation Reform Act of 1995.
• The Company's independent registered public accounting firm has not audited, reviewed, or expressed an opinion on the preliminary net sales figures.
• The Company's ticker symbols are LUCY and LUCYW on NASDAQ.
• Investor relations inquiries are handled by Skyline Corporate Communications Group, LLC.