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 September 27, 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 November 12, 2025
Common Stock, par value $0.01		182,513,346

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 September 27, 2025 (Unaudited) and December 28, 2024	3

	Condensed Consolidated Statements of Operations (Unaudited) for the three and nine months ended September 27, 2025 and September 28, 2024	4

	Condensed Consolidated Statements of Comprehensive Loss (Unaudited) for the three and nine months ended September 27, 2025 and September 28, 2024	5

	Condensed Consolidated Statements of Stockholders’ Equity (Unaudited) for the three and nine months ended September 27, 2025 and September 28, 2024	6

	Condensed Consolidated Statements of Cash Flows (Unaudited) for the nine months ended September 27, 2025 and September 28, 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

	September 27, 2025			December 28, 2024
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	26,508,140		$	14,160,120
Restricted cash		1,050,000			1,050,000
Marketable securities, at fair value		—			21,419,658
Accounts receivable, net of allowance of $1,009,000 and $1,075,000 in 2025 and 2024, respectively		6,357,343			11,850,654
Contract assets		9,948,216			7,074,020
Inventory		6,293,750			6,134,096
Prepaid expenses and other current assets		3,018,271			1,153,852
Total current assets		53,175,720			62,842,400
Property, plant and equipment, net		2,750,197			2,099,708
Operating lease right-of-use assets		2,015,472			2,134,898
Other assets		123,822			123,822
Equity investments		3,151,255			3,564,938
Total assets	$	61,216,466		$	70,765,766
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	6,125,584		$	5,941,470
Accrued payroll and expenses		2,247,619			2,409,468
Accrued warranty		2,069,000			2,557,000
Contract liabilities		1,365,819			87,752
Operating lease liabilities		775,814			639,642
Accrued post-retirement benefits		40,000			40,000
Other accrued liabilities		1,623,656			685,946
Customer deposits		9,542			—
Accrued legal expenses		1,850,000			6,367,900
Deferred tax liabilities		465,403			414,118
Accrued litigation liability		19,700,000			24,800,000
Total current liabilities		36,272,437			43,943,296
Noncurrent contract liabilities and asset retirement obligations		378,453			358,292
Operating lease liabilities, net of current portion		1,230,109			1,479,976
Accrued post-retirement benefits, net of current portion		190,646			230,646
Other long-term liabilities, net of current portion		1,822,341			1,471,994
Total liabilities		39,893,986			47,484,204
Commitments and contingencies (Notes 13 and 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 $0.01; 275,000,000 shares authorized, 163,299,258 issued, and 156,686,278 outstanding at September 27, 2025; 200,000,000 shares authorized, 161,264,507 issued, and 156,118,014 outstanding at December 28, 2024		1,571,180			1,564,308
Additional paid-in capital		424,708,822			422,087,837
Treasury stock (431,862 shares in 2025 and 312,882 shares in 2024, at cost)		(484,717	)		(370,012	)
Accumulated other comprehensive income		1,759,687			2,032,359
Accumulated deficit		(406,232,492	)		(402,032,930	)
Total stockholders’ equity		21,322,480			23,281,562
Total liabilities and stockholders’ equity	$	61,216,466		$	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			Nine Months Ended			Nine Months Ended
	September 27, 2025			September 28, 2024			September 27, 2025			September 28, 2024
Revenues:
Net product revenues	$	10,693,734		$	10,922,470		$	27,422,055		$	31,001,866
Research and development revenues		1,199,937			2,268,072			3,344,511			4,338,366
License and other revenues		68,754			129,066			189,234			348,440
Total revenues		11,962,425			13,319,608			30,955,800			35,688,672
Expenses:
Cost of product revenues		8,397,135			8,316,904			23,098,119			25,543,806
Research and development		2,502,988			2,596,649			6,564,345			6,537,065
Selling, general and administration		1,629,175			5,206,880			11,229,549			19,706,613
Litigation damages		(5,100,000	)		—			(5,100,000	)		24,800,000
Total expenses		7,429,298			16,120,433			35,792,013			76,587,484
Income (loss) from operations		4,533,127			(2,800,825	)		(4,836,213	)		(40,898,812	)
Other (expense) income
Interest income		281,194			220,017			1,053,944			619,534
Other (expense) income		(77,312	)		6,176			236,740			25,000
Loss on impairment of investments, net		(447,631	)		(903,609	)		(472,610	)		(1,637,895	)
Foreign currency transaction (losses) gains		(156,774	)		142,899			(25,423	)		86,618
Total other (expense) income, net		(400,523	)		(534,517	)		792,651			(906,743	)
Income (loss) before provision for income taxes		4,132,604			(3,335,342	)		(4,043,562	)		(41,805,555	)
Tax provision		(52,000	)		(125,000	)		(156,000	)		(125,000	)
Net income (loss)	$	4,080,604		$	(3,460,342	)	$	(4,199,562	)	$	(41,930,555	)
Net income (loss) per share
Basic	$	0.02		$	(0.03	)	$	(0.03	)	$	(0.34	)
Diluted		0.02			(0.03	)		(0.03	)		(0.34	)
Weighted average number of common shares outstanding
Basic		166,618,201			124,318,056			166,362,609			121,944,597
Diluted		169,448,696			124,318,056			166,362,609			121,944,597

See notes to unaudited condensed consolidated financial statements

KOPIN CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF comprehensive loss

(Unaudited)

	Three Months Ended		Three Months Ended			Nine Months Ended			Nine Months Ended
	September 27, 2025		September 28, 2024			September 27, 2025			September 28, 2024
Net income (loss)	$	4,080,604	$	(3,460,342	)	$	(4,199,562	)	$	(41,930,555	)
Other comprehensive loss, net of tax:
Foreign currency translation adjustments		49,562		(25,035	)		(103,228	)		(24,795	)
Unrealized holding gain (loss) on investments and marketable securities		71,780		18,236			(169,444	)		109,046
Other comprehensive gain (loss), net of tax		121,342		(6,799	)		(272,672	)		84,251
Comprehensive income (loss)	$	4,201,946	$	(3,467,141	)	$	(4,472,234	)	$	(41,846,304	)

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
Vesting of restricted stock		109,399		1,094		(1,094	)		-			-			-			-
Stock-based compensation expense		-		-		1,105,748			-			-			-			1,105,748
Other comprehensive loss		-		-		-			-			121,342			-			121,342
Restricted stock for tax withholding obligations		-		-		-			(25,048	)		-			-			(25,048	)
Net income		-		-		-			-			-			4,080,604			4,080,604
Balance, September 27, 2025		157,118,140	$	1,571,180

SEC Form 10-Q filed by Kopin Corporation