UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2025

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 0-19882

KOPIN CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		04-2833935
State or other jurisdiction of incorporation or organization		(I.R.S. Employer Identification No.)

125 North Drive, Westborough, MA		01581-3335
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (508) 870-5959

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, par value $0.01		KOPN		Nasdaq Capital Market

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding as of August 12, 2025
Common Stock, par value $0.01		162,805,852

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes ☐ No ☒

Kopin Corporation

INDEX

		Page No.
Part I – Financial Information

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3

	Condensed Consolidated Balance Sheets at June 28, 2025 (Unaudited) and December 28, 2024	3

	Condensed Consolidated Statements of Operations (Unaudited) for the three and six months ended June 28, 2025 and June 29, 2024	4

	Condensed Consolidated Statements of Comprehensive Loss (Unaudited) for the three and six months ended June 28, 2025 and June 29, 2024	5

	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the three and six months ended June 28, 2025 and June 29, 2024	6

	Condensed Consolidated Statements of Cash Flows (Unaudited) for the six months ended June 28, 2025 and June 29, 2024	7

	Notes to Unaudited Condensed Consolidated Financial Statements	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	25

Item 4.	Controls and Procedures	25

Part II – Other Information

Item 1.	Legal Proceedings	26

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 6.	Exhibits	27

Signatures		28

Part 1. FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements (Unaudited)

KOPIN CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

	June 28, 2025			December 28, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	24,369,310		$	14,160,120
Restricted cash		1,050,000			1,050,000
Marketable securities, at fair value		2,417,877			21,419,658
Accounts receivable, net of allowance of $1,024,000 and $1,075,000 in 2025 and 2024, respectively		9,481,332			11,850,654
Contract assets		6,840,887			7,074,020
Inventory		6,685,225			6,134,096
Prepaid expenses and other current assets		1,795,521			1,153,852
Total current assets		52,640,152			62,842,400
Property, plant and equipment, net		2,684,545			2,099,708
Operating lease right-of-use assets		2,212,679			2,134,898
Other assets		123,822			123,822
Equity investments		3,523,632			3,564,938
Total assets	$	61,184,830		$	70,765,766
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	4,129,863		$	5,941,470
Accrued payroll and expenses		2,345,847			2,409,468
Accrued warranty		2,016,000			2,557,000
Contract liabilities		275,053			87,752
Operating lease liabilities		765,559			639,642
Accrued post-retirement benefits		40,000			40,000
Other accrued liabilities		648,287			685,946
Accrued legal expenses		5,961,506			6,367,900
Deferred tax liabilities		447,498			414,118
Accrued litigation damages		24,800,000			24,800,000
Total current liabilities		41,429,613			43,943,296
Noncurrent contract liabilities and asset retirement obligations		388,240			358,292
Operating lease liabilities, net of current portion		1,436,276			1,479,976
Accrued post-retirement benefits, net of current portion		190,646			230,646
Other long-term liabilities, net of current portion		1,700,221			1,471,994
Total liabilities		45,144,996			47,484,204
Commitments and contingencies (Note 13) and Litigation (Note 14)		-			-
Stockholders’ equity:
Preferred stock, par value $.01 per share: authorized, 3,000 shares; no shares issued and outstanding as of 2025 and 2024		—			—
Common stock, par value $.01 per share: authorized, 275,000,000 shares in 2025 and 200,000,000 shares in 2024; issued 163,422,995 shares in 2025 and 161,264,507 shares in 2024; outstanding 156,589,462 shares in 2025 and 156,118,014 shares in 2024		1,570,086			1,564,308
Additional paid-in capital		423,604,168			422,087,837
Treasury stock (419,279 shares in 2025 and 312,882 shares in 2024, at cost)		(459,669	)		(370,012	)
Accumulated other comprehensive income		1,638,345			2,032,359
Accumulated deficit		(410,313,096	)		(402,032,930	)
Total stockholders’ equity		16,039,834			23,281,562
Total liabilities and stockholders’ equity	$	61,184,830		$	70,765,766

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Revenues:
Net product revenues	$	7,498,436		$	11,054,030		$	16,728,321		$	20,079,396
Research and development revenues		907,907			1,170,329			2,144,574			2,070,294
License and other revenues		48,540			112,064			120,480			219,374
Total revenues		8,454,883			12,336,423			18,993,375			22,369,064
Expenses:
Cost of product revenues		7,071,517			8,685,328			14,700,984			17,226,902
Research and development		1,945,436			1,839,663			4,061,357			3,940,416
Selling, general and administration		4,899,313			7,267,868			9,600,374			14,499,733
Litigation damages		—			—			—			24,800,000
Total expenses		13,916,266			17,792,859			28,362,715			60,467,051
Loss from operations		(5,461,383	)		(5,456,436	)		(9,369,340	)		(38,097,987	)
Other income (expense)
Interest income		326,302			226,677			772,750			399,517
Other (expense) income		(10,882	)		18,867			314,052			18,824
Loss on impairment of investments, net		(858	)		(734,286	)		(24,979	)		(734,286	)
Foreign currency transaction gains (losses)		32,188			23,180			131,351			(56,281	)
Total other income (expense), net		346,750			(465,562	)		1,193,174			(372,226	)
Loss before provision for income taxes		(5,114,633	)		(5,921,998	)		(8,176,166	)		(38,470,213	)
Tax provision		(52,000	)		—			(104,000	)		—
Net loss	$	(5,166,633	)	$	(5,921,998	)	$	(8,280,166	)	$	(38,470,213	)
Net loss per share
Basic and diluted	$	(0.03	)	$	(0.05	)	$	(0.05	)	$	(0.32	)
Weighted average number of common shares outstanding
Basic and diluted		166,351,615			121,400,739			166,234,813			120,757,868

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF comprehensive loss

(Unaudited)

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 28, 2025			June 29, 2024			June 28, 2025			June 29, 2024
Net loss	$	(5,166,633	)	$	(5,921,998	)	$	(8,280,166	)	$	(38,470,213	)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		(105,870	)		2,444			(152,790	)		240
Unrealized holding (loss) gain on marketable securities		(26,717	)		86,770			(241,224	)		90,810
Other comprehensive (loss) gain, net of tax		(132,587	)		89,214			(394,014	)		91,050
Comprehensive loss	$	(5,299,220	)	$	(5,832,784	)	$	(8,674,180	)	$	(38,379,163	)

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

	Shares		Amount		Capital			Stock			Income			Deficit			Equity
	Common Stock				Additional Paid-in			Treasury			Accumulated Other Comprehensive			Accumulated			Total Kopin Corporation Stockholders’
	Shares		Amount		Capital			Stock			Income			Deficit			Equity
Balance, December 28, 2024		156,430,896	$	1,564,308	$	422,087,837		$	(370,012	)	$	2,032,359		$	(402,032,930	)	$	23,281,562
Stock-based compensation expense		-		-		774,392			-			-			-			774,392
Other comprehensive loss		-		-		-			-			(261,427	)		-			(261,427	)
Net loss		-		-		-			-			-			(3,113,533	)		(3,113,533	)
Balance, March 29, 2025		156,430,896	$	1,564,308	$	422,862,229		$	(370,012	)	$	1,770,932		$	(405,146,463	)	$	20,680,994
Vesting of restricted stock		577,845		5,778		(5,778	)		-			-			-			-
Stock-based compensation expense		-		-		747,717			-			-			-			747,717
Other comprehensive loss		-		-		-			-			(132,587	)		-			(132,587	)
Restricted stock for tax withholding obligations		-		-		-			(89,657	)		-			-			(89,657	)
Net loss		-		-		-			-			-			(5,166,633	)		(5,166,633	)
Balance, June 28, 2025		157,008,741	$	1,570,086	$	423,604,168		$	(459,669	)	$	1,638,345		$	(410,313,096	)	$	16,039,834

	Common Stock				Additional Paid-in			Treasury			Accumulated Other Comprehensive		Accumulated			Total Kopin Corporation Stockholders’
	Shares		Amount		Capital			Stock			Income		Deficit			Equity
Balance, December 30, 2023		112,322,051	$	1,123,220	$	385,411,542		$	(103,127	)	$	1,232,294	$	(358,155,034	)	$	29,508,895

Vesting of restricted stock		20,064		200		(200	)		-			-		-			-
Stock-based compensation expense		-		-		734,928			-			-		-			734,928
Other comprehensive income		-		-		-			-			1,836		-			1,836

Issuance of common stock, net of costs		3,080,000		30,800		7,211,781			-			-		-			7,242,581
Net loss		-		-		-			-			-		(32,548,215	)		(32,548,215	)
Balance, March 30, 2024		115,422,115	$	1,154,220	$	393,358,051		$	(103,127	)	$	1,234,130	$	(390,703,249	)	$	4,940,025
Balance		115,422,115	$	1,154,220	$	393,358,051		$	(103,127	)	$	1,234,130	$	(390,703,249	)	$	4,940,025
Vesting of restricted stock		226,395		2,264		(2,264	)		-			-		-			-
Stock-based compensation expense		-		-		676,418			-			-		-			676,418
Other comprehensive income		-		-		-			-			89,214		-			89,214
Other comprehensive income (loss)		-		-		-			-			89,214		-			89,214
Net loss		-		-		-			-			-		(5,921,998	)		(5,921,998	)
Balance, June 29, 2024		115,648,510	$	1,156,484	$	394,032,205		$	(103,127	)	$	1,323,344	$	(396,625,247	)	$	(216,341	)
Balance		115,648,510	$	1,156,484	$	394,032,205		$	(103,127	)	$	1,323,344	$	(396,625,247	)	$	(216,341	)

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	Six Months Ended			Six Months Ended
	June 28, 2025			June 29, 2024
Cash flows from operating activities:
Net loss	$	(8,280,166	)	$	(38,470,213	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		444,861			332,155
Stock-based compensation		1,522,109			1,411,346
Loss on sale of property and equipment		58,818			—
Investment impairment net of unrealized gains		24,000			734,243
Gain on sale of equity investment		(300,000	)		—
Income taxes		104,455			—
Foreign currency (gains) losses		(113,183	)		38,633
Noncash provision for excess inventory		754,138			1,023,709
Accrued litigation damages		—			24,800,000
Changes in assets and liabilities:
Accounts receivable		2,333,500			2,994,914
Contract assets		241,431			(3,353,456	)
Inventory		(1,200,455	)		912,158
Prepaid expenses, other current assets and other assets		(619,672	)		(857,448	)
Accounts payable and accrued expenses		(2,173,477	)		4,474,548
Accrued warranty		(541,259	)		513,556
Contract liabilities and billings in excess of revenue earned		172,130			(738,047	)
Net cash used in operating activities		(7,572,770	)		(6,183,902	)
Cash flows from investing activities:
Capital expenditures		(1,233,751	)		(310,600	)
Purchases of marketable securities		(15,156,585	)		(1,119,012	)
Proceeds from sale of marketable securities		33,960,226			5,250,066
Proceeds from sale of equity investment		300,000			—
Other assets		(2,483	)		—
Net cash from investing activities		17,867,407			3,820,454
Cash flows from financing activities:
Issuance of common stock, net of costs		—			7,242,581
Settlements of restricted stock for tax withholding obligations		(89,657	)		—
Net cash (used in) provided by financing activities		(89,657	)		7,242,581
Effect of exchange rate changes on cash		4,210			3,029
Net increase in cash, cash equivalents and restricted cash		10,209,190			4,882,162
Cash, cash equivalents and restricted cash:
Beginning of period		15,210,120			6,210,685
End of period	$	25,419,310		$	11,092,847

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Kopin Corporation is a leading developer and provider of innovative display, and application-specific optical solutions sold as critical components and subassemblies for defense, enterprise, medical, and consumer products. Kopin’s portfolio includes microdisplays, display modules, eyepiece assemblies, image projection modules, and vehicle mounted and head-mounted display systems that incorporate ultra-small high-resolution Active Matrix Liquid Crystal displays (“AMLCD”), Ferroelectric Liquid Crystal on Silicon (“FLCoS”) displays, MicroLED displays (“µLED”) and Organic Light Emitting Diode (“OLED”) displays, a variety of optics, and low-power ASICs.

1. BASIS OF PRESENTATION

The condensed consolidated financial statements of Kopin Corporation as of June 28, 2025 and for the three and six month periods ended June 28, 2025 and June 29, 2024 are unaudited and include all normal recurring adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, as amended. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. As used in this report, the terms “we”, “us”, “our”, “Kopin” and the “Company” mean Kopin Corporation and its subsidiaries, unless the context indicates another meaning.

The condensed consolidated financial statements for the three and six month periods ended June 28, 2025 and June 29, 2024 include the accounts of Kopin Corporation and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated.

Liquidity

The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss of $43.9 million and incurred net cash outflows from operations of $14.2 million for the year ended December 28, 2024. The Company incurred a net loss of $8.3 million for the six months ended June 28, 2025 and net cash outflows from operations of $7.6 million. The Company’s net cash outflows from operations were partially a result of funding its ongoing investments in research and development, which management plans to continue. In 2024, the Company sold 43.0 million shares of common stock and 4.0 million prefunded warrants for net proceeds of $33.9 million. As described in Note 14 Litigation, on April 22, 2024, a jury verdict was entered against the Company awarding approximately $5.1 million in damages as well as recommending $19.7 million in disgorgement and exemplary damages. On May 22, 2024, the Company filed its Motion for Judgment as a Matter of Law or in the alternative for a New Trial, as well as two submissions arguing that the disgorgement and exemplary damages should not be awarded. That same day, BlueRadios filed motions seeking a permanent injunction prohibiting Kopin from selling any products that incorporate BlueRadios’ trade secrets, over $10.8 million in pre-judgment interest, and over $10.2 million in attorneys’ fees and costs. While no final judgment has been issued by the Court, the Court will take that recommendation under advisement and will rule in its final judgment on the final amount after briefing on the issues. Final briefings on the motions were made by the parties on October 29, 2024. As the Company is unable to conclude that a favorable outcome in this litigation is probable and due to the net losses and negative cash flows from operations, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern for twelve months from the issuance of these financial statements.

Management has implemented certain plans to reduce cash outflows including operational improvements and the curtailment of certain development programs, both of which are expected to preserve cash. The Company has in the past sold equity securities through at-the-market equity offerings and in the traditional fashion of significant equity offerings. Nonetheless, management monitors the capital markets on an ongoing basis and may consider raising capital if favorable market conditions develop. If the Company’s actual results are less than projected or the Company needs to raise capital for additional liquidity, the Company may be required to do additional equity financings, reduce expenses, or enter into a strategic transaction. However, management can make no assurance that the Company will be able to raise additional capital, reduce expenses sufficiently, or enter into a strategic transaction on terms acceptable to the Company, or at all.

2. ACCOUNTING STANDARDS

Recently Issued Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU Number 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires more disaggregated income tax disclosures, including additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 became effective for the Company for the fiscal year ending December 27, 2025. The Company is currently evaluating the impact of the adoption of ASU 2023-09 on its condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, which requires disaggregated disclosure of income statement expenses for public business entities (“PBEs”). The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the financial statements. ASU 2024-03 is effective for all PBEs for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on the presentation of its condensed consolidated financial statements and accompanying notes.

Recently Adopted Accounting Pronouncements

In November 2023, the FASB issued ASU Number 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker(s) that are included within each reported measure of segment profit or loss. The guidance also expands disclosure requirements for interim periods, as well as requires disclosure of other segment items, including the title and position of the entity’s chief operations decision maker(s). ASU 2023-07 became effective for the Company for the fiscal year ending December 28, 2024, and for interim periods starting in the Company’s first quarter of 2025. The Company adopted this standard for fiscal year 2024 and there was not a material impact, reference additional disclosure within Note 12. Segments and Disaggregation of Revenue.

3. FINANCIAL INSTRUMENTS

Fair Value Measurements

Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. The Company’s Level 2 investments are based on a yield to maturity models and market interest rates. An investment is categorized as Level 3 if its fair value is based on unobservable inputs for the asset.

The following table details the recurring fair value measurements of the Company’s financial assets:

	Total		Level 1		Level 2		Level 3
			Fair Value Measurement at June 28, 2025:
	Total		Level 1		Level 2		Level 3
Cash equivalents	$	20,168,080	$	20,168,080	$	—	$	—
U.S. Government and agency backed securities		497,750		—		497,750		—
Certificates of deposit		2,420,127		—		2,420,127		—
Equity Investments		656,091		656,091		—		—
Financial assets	$	23,742,048	$	20,824,171	$	2,917,877	$	—

	Total		Level 1		Level 2		Level 3
			Fair Value Measurement at December 28, 2024:
	Total		Level 1		Level 2		Level 3
Cash equivalents	$	12,438,130	$	11,592,842	$	845,288	$	—
U.S. Government and agency backed securities		17,436,195		1,995,520		15,440,675		—
Certificates of deposit		4,483,463		—		4,483,463		—
Equity Investments		699,176		699,176		—		—
Financial assets	$	35,056,964	$	14,287,538	$	20,769,426

SEC Form 10-Q filed by Kopin Corporation