Kopin Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Kopin Corporation filed its 2023 Form 10-K detailing its financial performance and operations for the fiscal year ending December 30, 2023.</b>

AI Summary

KOPIN CORP (KOPN) filed a Annual Report (10-K) with the SEC on March 14, 2024. Kopin Corporation filed its 2023 Form 10-K on March 14, 2024. The filing covers the fiscal year ending December 30, 2023. The company is incorporated in Delaware and headquartered in Westborough, MA. Kopin operates in the Semiconductors & Related Devices industry (SIC 3674). The filing includes financial data for fiscal years 2020, 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking KOPIN CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Kopin's financial health, operational performance, and strategic direction for the past fiscal year, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and risk factors within the report are essential for understanding the company's revenue streams, profitability, and potential challenges in the semiconductor industry.

Risk Assessment

Risk Level: medium — KOPIN CORP shows moderate risk based on this filing. The company operates in the highly competitive Semiconductors & Related Devices industry, which is subject to rapid technological changes and cyclical demand, posing a medium risk to its financial performance and market position.

Analyst Insight

Investors should review the detailed revenue breakdown and risk factors in the 10-K to assess Kopin's competitive positioning and future growth potential in the semiconductor market.

Key Numbers

• 2023-12-30 — Fiscal Year End (Reporting period)
• 2024-03-14 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Period covered)
• 2022 — Prior Fiscal Year (Comparative period)
• 2021 — Prior Fiscal Year (Comparative period)
• 2020 — Prior Fiscal Year (Comparative period)

Key Players & Entities

• KOPIN CORP (company) — Filer name
• KOPN (company) — Ticker symbol
• 0000771266 (company) — Central Index Key
• DE (company) — State of Incorporation
• MA (company) — State of Business Address
• Westborough (company) — City of Business Address
• 3674 (company) — Standard Industrial Classification
• 2023-12-30 (date) — Fiscal Year End

FAQ

Key Dates

• 2024-03-14: 10-K Filing — Submission of the annual report for fiscal year 2023.
• 2023-12-30: Fiscal Year End — End date of the reporting period.

Key Financial Figures

• $0.01 K — ch registered Common Stock, par value $0.01 KOPN Nasdaq Capital Market Securitie

Filing Documents

• form10-k.htm (10-K) — 1604KB
• ex21-1.htm (EX-21.1) — 25KB
• ex23-1.htm (EX-23.1) — 4KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 17KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 8KB
• ex97-1.htm (EX-97.1) — 3KB
• form10-k_001.jpg (GRAPHIC) — 35KB
• 0001493152-24-009985.txt (&nbsp;) — 7908KB
• kopn-20231230.xsd (EX-101.SCH) — 55KB
• kopn-20231230_cal.xml (EX-101.CAL) — 92KB
• kopn-20231230_def.xml (EX-101.DEF) — 193KB
• kopn-20231230_lab.xml (EX-101.LAB) — 461KB
• kopn-20231230_pre.xml (EX-101.PRE) — 353KB
• form10-k_htm.xml (XML) — 1280KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 27 Item 2.

Properties

Properties 28 Item 3.

Legal Proceedings

Legal Proceedings 28 Item 4. Mine Safety Disclosures 28 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. Reserved 31 Item 7.

Management's Discussion and Analysis

Management's Discussion and Analysis 31 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 42 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 42 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 42 Item 9A.

Controls and Procedures

Controls and Procedures 42 Item 9B. Other Information 43 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 43 PART III Item 10. Directors, Executive Officers and Corporate Governance 43 Item 11.

Executive Compensation

Executive Compensation 43 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 43 Item 13. Certain Relationships and Related Transactions, and Director Independence 43 Item 14. Principal Accountant Fees and Services 43 Part IV Item 15. Exhibits and Financial Statement Schedules 44 Item 16. Form 10-K Summary 74

SIGNATURES

SIGNATURES 75 2 Part I Forward Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the safe harbor created by such sections. Words such as "expects," "anticipates," "intends," "plans," "believes," "could," "would," "seeks," "estimates," and variations of such words and similar expressions, and the negatives thereof, are intended to identify such forward-looking statements. We caution readers not to place undue reliance on any such "forward-looking statements," which speak only as of the date made, and advise readers that these forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties, estimates, and assumptions by us that are difficult to predict. Various factors, some of which are beyond our control, could cause actual results to differ materially from those expressed in, or implied by, such forward-looking statements. All such forward-looking statements, whether written or oral, and whether made by us or on our behalf, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, we disclaim any obligation to update any forward-looking laws. We have identified the following important factors that could cause actual results to differ materially from those discussed in our

forward-looking statements. Such factors may be in addition to the risks described in Part I, Item 1A. "Risk Factors;"

forward-looking statements. Such factors may be in addition to the risks described in Part I, Item 1A. "Risk Factors;"

, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations;" and

Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations;" and other parts of this Form 10-K. These factors include: our ability to source semiconductor components and other raw materials used in the manufacturing of our products amidst continued intermittent shortages, including from new and alternative suppliers; our ability to prosecute and defend our proprietary technology aggressively or successfully; our ability to retain personnel with experience and expertise relevant to our business; our ability to invest in research and development to achieve profitability even during periods when we are not profitable; any disruptions or delays in our supply chains, particularly with respect to semiconductor components, whether resulting from regional or global geopolitical developments or otherwise; costs and outcomes relating to any disputes, governmental inquiries or investigations, regulatory proceedings, legal proceedings or litigation; our ability to continue to introduce new products in our target markets; our ability to generate revenue growth and positive cash flow, and reach profitability; the strengthening of the U.S. dollar and its effects on the price of our products in foreign markets; the impact of new regulations and customer demands relating to conflict minerals; our ability to obtain a competitive advantage in the wearable technologies market through our extensive portfolio of patents, trade secrets and non-patented know-how; our ability to grow within our targeted markets; the importance of small form factor displays in the development of defense, consumer, and industrial products such as thermal weapon sights, safety equipment, virtual and augmented reality gaming, training and simulation products and metrology tools; the suitability of our properties for our needs for the foreseeable future; and our need to achieve and maintain positive cash flow and profitability. 3 Item 1.

Business

Business Overview Incorporated in Delaware in 1984, Kopin Corporation ("Kopin" or "the Company") is a leading developer and provider of high-performance application-specific optical solutions consisting of high-resolution microdisplays and optics, subassemblies, and headsets. We define microdisplays as displays that have a diagonal measurement of less than 2 inches. Our products are used for defense applications (thermal weapon rifle sights, fixed and rotary wing pilot helmets, armored vehicle targeting systems, and training & simulation headsets); industrial and medical headsets; and 3D optical inspection systems. We believe that the technologies we are developing may eventually be used in consumer augmented reality ("AR") and virtual reality ("VR") wearable headset systems. Our products are primarily used to overlay digital information on the real-world scene. As part of our plan to focus our resources on new and existing defense, industrial and consumer applications that are in line with our strategic plan, in January 2023, we conducted a partial spinout of our organic light emitting diode ("OLED") development unit to Lightning Silicon Technology, Inc. ("Lightning Silicon"). Lightning Silicon received a license under a Technology License agreement to certain Kopin intellectual property to develop, manufacture and sell OLED display technologies for use in the consumer market, based on 12 inch deposition technology development. The Technology License agreement provides for Kopin to transfer certain patents to Lightning Silicon if they achieve certain milestones, however upon transfer Kopin will receive a license to the technology. We received an equity interest in Lightning Silicon and expect to receive royalties from the sale of products related to the licenses. We retained the ability and rights to develop, manufacture and sell OLED displays and complete optical solutions that include microdisplays to our core base in the defense and enterprise markets, as

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