Tue, May 14, 7:10 PM (73 days ago)
Kopin Corporation's Q1 2024 10-Q report reveals significant financial challenges. The company reported a net loss of $32.5 million, a significant increase from the $2.6 million loss in Q1 2023. This was primarily due to litigation damages and legal fees, including a $24.8 million accrual for potential damages from a jury verdict. Revenues slightly decreased to $10.0 million from $10.8 million in Q1 2023, with a notable decline in R&D revenues. Cost of product revenues increased to 95% of net product revenues, up from 87%, due to higher excess and obsolete reserves. Operating expenses also rose, driven by increased legal and professional fees, marketing expenses, and stock-based compensation. Cash and cash equivalents improved to $14.1 million from $5.7 million at year-end 2023, partly due to a $7.2 million stock issuance. The company's financial stability is uncertain, with substantial doubt about its ability to continue as a going concern. Kopin plans to raise additional capital and implement cost-saving measures but faces inherent uncertainties in these efforts.