10-Q - KOPIN CORP (0000771266) (Filer)

Tue, May 13, 9:37 PM (34 days ago)

**Kopin Corporation (KOPN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $10.54 million (up from $10.03 million in Q1 2024). - **Net Loss:** $3.11 million (improved from $32.55 million in Q1 2024). - **Gross Margin:** 17% (improved from -287% in Q1 2024 due to lower litigation damages). - **Operating Loss:** $3.91 million (improved from $32.64 million in Q1 2024). - **Cash Flow from Operations:** -$3.41 million (improved from -$3.11 million in Q1 2024). **Key Metrics:** - **Cash and Cash Equivalents:** $16.38 million (up from $14.87 million in Q1 2024). - **Total Assets:** $65.04 million (down from $70.77 million in Q1 2024). - **Total Liabilities:** $44.36 million (down from $47.48 million in Q1 2024). - **Stockholders' Equity:** $20.68 million (down from $23.28 million in Q1 2024). **Segment Performance:** - **Defense:** $8.46 million (up from $8.23 million in Q1 2024). - **Industrial:** $0.39 million (down from $0.77 million in Q1 2024). - **Medical:** $0.36 million (new segment in Q1 2025). - **Consumer and Other:** $0.02 million (down from $0.03 million in Q1 2024). - **R&D:** $1.24 million (up from $0.90 million in Q1 2024). - **License and Royalties:** $0.07 million (down from $0.11 million in Q1 2024). **Trends and Uncertainties:** - **Revenue Growth:** Driven by defense applications, particularly thermal weapon sights and pilot helmets. - **Cost Management:** Effective expense management and reduced legal fees contributed to improved profitability. - **Litigation:** Ongoing litigation with BlueRadios, Inc. poses a significant risk, with potential damages and injunctions. - **Supply Chain:** Continued challenges in sourcing semiconductor components and raw materials. - **Cash Flow:** Negative cash flow from operations, necessitating strategic capital raising and cost-saving measures. **Future Operations Impact:** - **Capital Expenditures:** Expected to be between $1.0 million and $2.0 million in 2025. - **Fundraising:** Potential equity offerings, debt issuances, or strategic transactions to improve liquidity. - **Cost Savings:** Implementation of cost-saving measures to reduce research and development and general and administrative expenditures. **Conclusion:** Kopin Corporation showed improved financial performance in Q1 2025, driven by revenue growth in defense applications and effective cost management. However, the company faces significant uncertainties, including ongoing litigation, supply chain challenges, and negative cash flow from operations. Strategic capital raising and cost-saving measures will be crucial for future operations and financial stability.