Kopin Corporation (KOPN): Business Model Canvas [Dec-2025 Updated]

You're looking past the stock ticker to see how Kopin Corporation actually makes its money, and honestly, their Business Model Canvas is a masterclass in defense-critical niche technology. As an analyst who's spent two decades mapping these defense plays, I see a model entirely built around proprietary MicroLEDs-displays so bright, up to 1 million fL, they solve real soldier problems. With Q3 2025 product revenue at $10.7 million and a solid $26.5 million in the bank, the entire structure is geared toward executing on that massive pipeline, heavily supported by the U.S. Department of Defense. Dive in below to see the nine blocks that define Kopin Corporation's current strategy and where the real value-and risk-is hiding.

Kopin Corporation (KOPN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Kopin Corporation is building to fuel its next phase of growth, especially in the defense sector as of late 2025. These aren't just handshake deals; they involve significant capital injections and specific development commitments. Honestly, the partnership structure is where you see the company betting its future.

U.S. Department of Defense (DoD) for Major Contracts

Kopin Corporation has solidified its standing as a trusted defense technology partner, evidenced by recent contract awards directly from the U.S. military. These awards are crucial as they validate the technology for domestic use and often serve as a springboard for international sales. The company's management has emphasized transformative MicroLED development for the U.S. Army.

Key recent DoD-related financial figures include:

• A $15.4 million contract secured to develop MicroLED displays specifically for military augmented reality applications.
• A follow-on production contract valued at approximately $9 million for thermal imaging systems.

Theon International for European/NATO Defense Market Access

The alliance with Theon International is clearly transformational, providing Kopin with immediate access to the European and NATO defense markets, where Kopin's exposure was minimal before. Theon is a global market leading developer and manufacturer of customizable night vision and thermal imaging systems.

The financial structure of this partnership is quite detailed:

While Kopin Corporation currently reports zero defense revenue in Europe, the agreements are set to drive growth, with management expecting significant European revenue starting in the 2027-2028 timeframe, targeting tens of millions. The planned $8 million Non-Recurring Engineering (NRE) agreement further reinforces this commitment to joint innovation for defense platforms.

Carl Zeiss for Potential Medical Product Development

Kopin Corporation is also looking beyond defense. Management has indicated that a project, HMDMD, has signed an agreement with Carl Zeiss, signaling an entry point into the medical technology space. The company is actively working on other potential medical products as well. What this estimate hides is the specific timeline for commercialization or any associated funding milestones from this particular agreement.

Tier One Aerospace and Defense Prime Contractors

Beyond direct DoD awards, Kopin maintains critical relationships with major defense prime contractors. These relationships often translate into multi-year production orders, which help stabilize the revenue base. A recent example highlights this:

• A follow-on production contract valued at approximately $9 million was received for custom thermal imaging assemblies.
• The company secured a Phase 2 contract from Lockheed Martin to enhance visual display systems for the U.S. Army's Interceptor programs.

These deals showcase Kopin's depth in syncing technology with defense-specific requisites.

Strategic Investors like Onos Holdings and Unusual Machines

The company significantly bolstered its capital structure by securing a large private investment round that included Onos Holdings and Unusual Machines alongside Theon International. This move was a clear vote of confidence from strategic industry partners.

Here are the hard numbers from the September 2025 private placement:

• Total private investment financing secured: approximately $41 million.
• Total shares issued: 19,545,950 shares of common stock.
• Issue price per share: $2.10.

The proceeds from this financing are earmarked to advance color MicroLED technology, NeuralDisplay Artificial Intelligence, and commercialization for drone applications. Eric Brock, Chairman and CEO of Ondas Holdings, specifically noted confidence in Kopin's optical display solutions delivering the performance, durability, and cost efficiency required by next-generation security systems.

Finance: review the impact of the $41 million capital raise on the Q4 2025 cash runway by next Tuesday.

Kopin Corporation (KOPN) - Canvas Business Model: Key Activities

You're looking at the core things Kopin Corporation is doing to generate revenue and advance its technology as of late 2025. It's all about high-performance displays for demanding users, especially in defense.

Microdisplay and optical system manufacturing in the U.S.

Kopin Corporation manufactures and provides application-specific optical solutions, including microdisplays, subassemblies, and related components for defense, industrial, and consumer products. The company's product revenues showed some fluctuation through the year:

• Q1 2025 product revenues increased 2% year-over-year to support sales in thermal weapon sights and pilot helmets.
• Q2 2025 product revenues were $7.5 million.
• Q3 2025 product revenues were $10.7 million.
• The company reported annual revenue of $45.6 million as of December 2025.

The cost structure for manufacturing is a key focus area, with the company noting improvements in efficiency:

R&D for next-generation MicroLED and OLED technologies

Research and Development spending is directed toward advancing core display technologies, with internal R&D increasing despite overall R&D expenses remaining relatively flat in the first quarter.

• Q1 2025 Research and Development (R&D) expenses were $2.1 million.
• Q2 2025 R&D expenses were $1.9 million.
• Q3 2025 R&D expenses were $2.5 million.
• Internal R&D increased by $0.2 million year-over-year in Q1 2025.
• Internal R&D increased by $0.3 million year-over-year in Q2 2025, primarily due to investments in production automation.

The company has made strategic hires to spearhead the technology roadmap with a focus on Color MicroLED microdisplays.

Executing multi-million dollar government development contracts

Government and defense contracts are a significant driver of funded research revenue and validation for Kopin Corporation's technology. The company secured several notable awards in 2025:

• In September 2025, Kopin Corporation was awarded a $15.4 million Other Transaction Agreement (OTA) from the U.S. Army to develop full-color MicroLED micro-displays.
• In October 2025, the company secured a $3 million order for MicroLED displays from a tier-one aerospace company for combat aircraft HUD upgrades.
• Kopin Corporation also negotiated an $8 million research and development order for Theon International and European markets.

Funded research revenue varied quarterly:

Implementing production line automation for efficiency

Kopin Corporation launched an aggressive, companywide automation plan to increase capacity, throughput, and efficiencies in its Westborough facility.

• The first phase of optical automation was introduced in Q2 2025.
• This automation is expected to increase throughput and quality while reducing costs.
• The goal of the automation is to allow for higher throughput, greater accuracy, and less human interaction, which can cause molecular debris in assemblies.

Developing AI-enabled neural display prototypes

The company is actively developing advanced display prototypes alongside its MicroLED focus. Kopin Corporation is investing in this area over the next few years.

• The AI-Enabled OLEDoS NeuralDisplay™ achieved a prototype milestone with software and hardware improvements in Q2 2025.
• Kopin plans to unveil a prototype of its new wireless simulated binoculars, featuring high-resolution color OLED displays, at I/ITSEC 2025.

Financially, the company is managing its operations with a negative EBITDA of $11.34 million in the last twelve months, while maintaining a balance sheet with more cash than debt.

Kopin Corporation (KOPN) - Canvas Business Model: Key Resources

You're looking at the core assets Kopin Corporation is banking on to execute its next phase of growth, especially as they pivot hard into next-generation defense and AR/VR components. These aren't just line items; they are the tangible and intangible things that let Kopin Corporation operate and compete.

The foundation of Kopin Corporation's offering rests on its technology portfolio, which is quite broad for a company of its size. They are known as the only company, to their knowledge, offering a combination of AMLCD (Active Matrix Liquid Crystal Displays), LCOS (Liquid Crystal on Silicon) displays, and OLED (Organic Light Emitting Diode) displays, along with related optics. This technological breadth is a major resource.

Specifically regarding the advanced display technologies:

• Proprietary MicroLED and OLED display intellectual property.
• Kopin Corporation retains ownership of its OLED Intellectual Property, even after licensing some rights to Lightning Silicon Technology, Inc..
• The company is 'all-in on MicroLED' with a focus on next-generation Color MicroLED microdisplays.
• Kopin Corporation secured a pivotal $3 million order in October 2025 for its MicroLED displays from a tier-one aerospace company.
• They are also executing on a U.S. Army IBAS-funded $15.4 million color MicroLED program.

Manufacturing capability is centralized and high-spec. Kopin Corporation maintains domestic production capacity essential for defense contracts.

Financially, the balance sheet was significantly stabilized following Q3 2025. You need to know the starting point for the near-term planning cycle.

The strong cash position of about $26.5 million was reported at the end of Q3 2025,,,. Honestly, that number alone doesn't tell the whole story; subsequent to that quarter-end, Kopin Corporation raised an additional $41 million via a PIPE (Private Investment in Public Equity) and completed a $15 million transaction, which defintely improved liquidity and removed going-concern doubts,,,.

The forward-looking resource is the pipeline of potential business. Kopin Corporation has an opportunity pipeline that "just surpassed $1B". This pipeline is positioned to fuel production ramps expected in the 2026-2028 timeframe. Here's the quick math: they are aiming for at least $75 million in revenue in 2027, based on expected 2025 revenue between $52 million and $55 million.

Finally, the human capital driving this technology forward is a key asset. The success hinges on the people who can translate R&D into deployable systems. Kopin Corporation's success is driven by engineering and visual system experts.

• Experienced engineering and photonics R&D teams.
• Team expertise covers microdisplays, optics, electronics, and integrated visual systems.
• New leadership is focused on an aggressive 3 and 5-year technology roadmap, with a laser focus on next-generation Color MicroLED microdisplays.
• They also secured a $8 million R&D order focused on Europe.

Finance: draft 13-week cash view by Friday.

Kopin Corporation (KOPN) - Canvas Business Model: Value Propositions

You're looking at Kopin Corporation (KOPN) as a critical enabler for next-generation defense and immersive technology systems. The value Kopin Corporation delivers isn't just in selling parts; it's in providing performance specifications that meet extreme operational needs, especially for the warfighter.

Ultra-bright MicroLEDs (up to 1 million fL) for daylight use

Kopin Corporation's MicroLED technology is engineered for visibility in the harshest light conditions. The displays achieve up to 1 million foot lambert (fL) of brightness, making them suitable for bright daylight missions. To put that into perspective, this brightness level is up to 100 times brighter than OLED displays. Furthermore, the technology offers a dimming range exceeding 30,000:1, ensuring seamless performance transition from intense sunlight to low-light environments.

Superior power efficiency (up to 5x better) for soldier systems

For soldier systems, power conservation is non-negotiable, and Kopin Corporation addresses this directly. Their MicroLED displays offer up to five times greater power efficiency when compared to other competing microdisplay technologies. This efficiency is a core component of the value proposition for defense applications, such as the U.S. Army project focused on Extended Reality (XR) heads-up displays.

Secure, U.S.-based supply chain for defense-critical components

A major part of Kopin Corporation's value proposition is its commitment to a secure, domestic supply chain for defense technology. The company recently secured a transformative $15.4 million award from the U.S. Department of Defense under the Industrial Base Analysis and Sustainment (IBAS) program to accelerate domestic production of MicroLED technology. This effort strengthens the U.S. defense industrial base and reduces reliance on overseas suppliers. Kopin Corporation supports this with its operations, including a Class 10 cleanroom facility in the United States. Over the last four decades, Kopin Corporation has supplied more than 400,000 defense vision systems, underscoring its established reliability.

High-resolution, motion-artifact-free visuals for AR/VR

Kopin Corporation's displays are designed to deliver visuals that are both sharp and stable for immersive applications. The MicroLED technology supports 4-megapixel resolution at 120 frames per second. The advanced backplane architecture is key here, as it actively eliminates motion artifacts, providing smooth, high-fidelity visuals for users. Beyond MicroLED, Kopin Corporation is advancing its AI-powered NeuralDisplay prototype, which is designed to automatically adapt to a user's unique vision requirements, potentially revolutionizing spatial computing by eliminating the need for dedicated eye-tracking cameras.

Application-specific optical solutions, not just components

Kopin Corporation positions itself as a provider of application-specific optical systems, moving beyond simply supplying raw components. This is evidenced by specific contract wins tailored to system integration. For instance, the company announced approximately $3.2 million in orders from a tier-one aerospace company for MicroLED displays to upgrade legacy Heads-Up Displays (HUDs) in fielded aircraft. Earlier in 2025, Kopin Corporation also announced $6 million in pilot helmet display orders, bringing their total for the year in that segment to $13.5 million. This focus on tailored solutions is reflected in their Q3 2025 revenue of $12.0 million.

Here's a quick look at some of the performance specifications Kopin Corporation is delivering in its advanced displays:

The company's portfolio includes a range of technologies that enable these solutions, such as:

• MicroLED (µLED) displays
• Active-Matrix Liquid Crystal displays (AMLCD)
• Ferroelectric Liquid Crystal on Silicon (FLCoS) displays
• Organic Light Emitting Diode (OLED) displays
• Low-power ASICs and various optics

Finance: draft 13-week cash view by Friday.

Kopin Corporation (KOPN) - Canvas Business Model: Customer Relationships

You're looking at how Kopin Corporation maintains its most critical revenue sources, which are deeply embedded within the defense and specialized technology sectors. Their customer relationships aren't transactional; they are built on long-term development and high-stakes performance validation.

Dedicated, long-term relationships with Tier one defense customers

Kopin Corporation explicitly states they continue to supply top tier defense contractors, affirming their standing as a preferred supplier of microdisplay technology. These relationships often involve multi-year commitments, such as a previously mentioned multi-year, full-scale production program for thermal weapon sights. Furthermore, Kopin secured its first production order for MicroLED displays in combat aircraft from a tier one aerospace company, an order valued at approximately $3 million, with delivery set for later. The CEO noted that with the addition of Theon, Kopin is transforming into a global defense player alongside its existing Tier one customers.

The scale of these defense engagements is significant, as evidenced by recent contract awards:

Strategic development agreements for custom solutions

Kopin Corporation actively pursues strategic alliances to co-develop and tailor solutions, moving beyond off-the-shelf components. A major recent development was the closing of a $15 million strategic investment agreement with THEON International Plc in October 2025. This partnership includes plans for a separately funded $8 million non-recurring engineering (NRE) agreement specifically to co-develop a military-grade display for integration into defense platforms. This strategic move is designed to give Kopin immediate access to the European and NATO defense market, where European nations have pledged over a trillion dollars in defense investments.

The relationship with Theon involves specific financial and operational commitments:

• Investment into Kopin Europe: $8.0 million for a 49% equity interest in the subsidiary.
• Preferred Stock Purchase: Theon purchased $7.0 million of preferred shares convertible at a fixed price of $3.00 per share.
• Existing Development Agreement with Theon: Agreements already in place for $8 million of development for a color microLED targeting Europe, Southeast Asia, and NATO.

These agreements are focused on creating application-specific solutions tailored to individual needs, which global defense contractors and integrators now demand.

Direct engagement via technology demonstrations (e.g., AUSA 2025)

Direct engagement is a key tactic for Kopin Corporation to showcase its evolving technology roadmap to defense stakeholders. Kopin presented its latest advancements in soldier-worn augmented reality systems at the Association of the United States Army (AUSA) Annual Meeting and Exposition, held in Washington, DC, from October 13-15, 2025.

Key technology demonstrations at AUSA 2025 included:

• HUDS for daytime and nighttime see-thru AR defense applications.
• First Person Viewer (FPV) HUD demo for drone control.
• NeuralDisplay?? prototype, described as a bi-directional AI enabled microdisplay.
• Training and simulation head-tracked binoculars.

Looking ahead, Kopin plans to unveil a prototype of its new wireless simulated binoculars at the Interservice/Industry Training, Simulation and Education Conference (I/ITSEC) 2025.

High-quality service affirmed by top customer quality levels

Operational excellence directly supports customer retention, and Kopin Corporation has recently hit performance milestones in this area. The company reported that it received the best overall quality level from all 3 of its top customers since the CEO joined almost 3 years ago. Management stated they are holding quality rates at a 'much higher level, more consistent and more predictable levels'.

Financial and operational data reflecting quality improvements include:

• Cost of Product Revenues as a percentage of net product revenues improved from 95% in Q1 2024 to 83% in Q1 2025 due to improved yields.
• First phase of optical inspection automation was introduced and is operational, with the second phase expected by the end of 2025.
• This automation is expected to save the company significant operating expenses in the second half of 2025 while increasing overall throughput and inspection quality.

For context on the revenue base these relationships support, Kopin Corporation's Q3 2025 total revenues were $12 million, following Q2 2025 total revenues of $8.5 million.

Kopin Corporation (KOPN) - Canvas Business Model: Channels

You're looking at how Kopin Corporation moves its specialized optical systems and microdisplays to the end-user as of late 2025. The channels are heavily weighted toward high-value defense and specialized industrial sectors, which is clear from their recent financial activities.

Direct sales to U.S. government and defense contractors form a core part of the business, often realized through funded research and development contracts and direct product sales for established programs. This segment shows volatility based on government budgeting cycles, as seen when Q2 2025 revenue was lower than expected due to U.S. government budget process delays. Still, the pipeline remains strong, with management expressing confidence in the multi-year order book at the start of 2025.

• Funded research and development revenues for Q1 2025 increased by 37% year over year, primarily due to increases in funding for U.S. defense programs.
• A follow-on $9 million contract was awarded for custom thermal imaging assemblies, signaling strengthening ties with the U.S. defense industry.
• The company secured a Phase 2 contract from Lockheed Martin for the U.S. Army's Interceptor programs, focusing on advanced display systems.
• Q1 2025 saw orders for thermal weapon sights, noted as a multi-year, full-scale production program.
• Q3 2025 funded research and development revenues were $1.2 million.

Strategic partner networks (Theon) for global defense sales represent a major recent channel expansion, aimed directly at European and NATO markets. The closing of the strategic investment in October 2025 solidified this route. This partnership is designed to leverage Theon's global footprint to accelerate Kopin Corporation's business wins outside the U.S.

• Kopin Corporation closed a $15 million strategic investment agreement with THEON International in October 2025.
• Theon invested $8 million into Kopin Europe, receiving a 49% equity interest, specifically supporting co-developed products for Europe, Southeast Asia, and NATO countries.
• The companies contemplate an additional separately funded $8 million Non-Recurring Engineering (NRE) agreement for co-development.
• Theon also purchased $7 million of preferred shares from Kopin Corporation.

Direct sales to enterprise and industrial system integrators are a consistent, though sometimes fluctuating, channel. These sales include products for industrial inspection modules, public safety, and medical devices. The performance here directly impacts overall product revenue, as seen in the Q2 2025 results where lower than expected orders for training and simulation were a factor.

• Q2 2025 product revenues saw a decrease due to lower than expected orders for training and simulation.
• Q3 2025 product revenues of $10.7 million saw a decrease from products used in training and simulation.
• Q2 2025 sales of products for public safety and medical devices partially offset the decrease in training and simulation revenue.

Industry trade shows (I/ITSEC 2025) for product showcasing serve as a critical, time-bound channel for generating leads, demonstrating new technology, and engaging directly with defense and enterprise customers. Kopin Corporation used this platform to debut next-generation visualization tools.

• Kopin Corporation was scheduled to unveil a prototype of its new wireless simulated binoculars at I/ITSEC 2025 in Orlando, Florida, from December 1-4, 2025.
• The company planned to showcase live demonstrations of VR Head Mounted Displays (HMDS) and simulated military equipment at Booth #2423.
• The showcased products target defense and commercial training and simulation applications.

Here's a quick look at the revenue context surrounding these channels through the first three quarters of 2025:

Theon's investment structure, involving $8 million into Kopin Europe and $7 million in preferred shares, is a direct financial channel supporting the global defense sales push. That $15 million infusion is defintely a key enabler for scaling these distribution and partnership efforts.

Kopin Corporation (KOPN) - Canvas Business Model: Customer Segments

You're looking at the customer base for Kopin Corporation (KOPN) as of late 2025, and honestly, the story is heavily weighted toward defense right now, which is driving a lot of the recent financial activity. The company is clearly pivoting, using its microdisplay tech to secure significant, non-dilutive funding from the U.S. government.

The primary segment is the U.S. Army/DoD for Integrated Visual AR and thermal sights. This isn't just speculative; we have hard numbers from recent contract awards. For instance, Kopin secured a transformative $15.4 million Other Transaction Agreement from the U.S. Department of Defense in September 2025 to push forward full-color MicroLED technology specifically for ground soldier augmented reality systems. This builds on earlier work, including a Soldier Display Trade Study. Furthermore, Kopin won a $14 million contract for thermal imaging assemblies in March 2025, with an extra $5.3 million authorized for material procurement on that program. This focus is showing up in the financials; funded research revenues, largely driven by these defense programs, jumped 37% in the first quarter of 2025.

The Global defense and aerospace OEMs for combat aircraft HUDs segment is also a key area, focusing on pilot situational awareness. As of April 2025, Kopin reported securing a multi-year, USD $7.5 million contract for microdisplays used in pilot Helmet Mounted Display Systems with AR capabilities. This was on top of $6 million in similar pilot helmet display orders received earlier that year, bringing the total for those specific orders to $13.5 million in 2025 up to that point.

The push into Europe is being formalized through the European/NATO defense markets via Theon International. Theon International closed a $15 million strategic investment in Kopin on October 16, 2025. This deal is structured with $8 million buying a 49% equity stake in Kopin Europe, Kopin's Scottish subsidiary, and they plan an additional $8 million Non-Recurring Engineering (NRE) agreement for co-development. To give you context on Theon's reach, they have over 200,000 systems in service globally, with 26 of those being NATO countries. This partnership is designed to give Kopin immediate access to those European and NATO markets.

While defense dominates the headlines, Kopin Corporation still serves Industrial and enterprise customers (e.g., 3D metrology), along with Medical visualization device manufacturers. Kopin states it supplies components for industrial and medical products. In the first quarter of 2025, defense product revenues were up 2.8% year-over-year, but the company noted that sales for medical devices helped offset revenue decreases in other areas during the second quarter of 2025. The overall picture is that while these commercial segments provide a baseline, the recent financial strength is coming from defense R&D and contract wins.

Here's a quick look at the key financial markers relevant to these customer segments as of late 2025:

You can see the immediate impact of the defense segment in the Q3 results: a net income of $4.1 million and a strong cash position of $26 million as of September 27, 2025. Plus, the company bolstered its balance sheet further by completing a $41 million private placement after the quarter closed. The reliance on government funding is the biggest near-term risk, but these large contract awards are definitely providing the necessary capital to fund their technology roadmap, especially the MicroLED push.

The customer segments can be broken down by their recent activity:

• U.S. Army/DoD: Secured $15.4 million MicroLED development order.
• Global OEMs: Secured $7.5 million pilot display contract in 2025.
• European/NATO via Theon: Theon has 220,000+ systems in service globally.
• Industrial/Enterprise/Medical: Product revenues saw a 2% year-over-year increase in Q1 2025.

Finance: draft 13-week cash view by Friday.

Kopin Corporation (KOPN) - Canvas Business Model: Cost Structure

When you look at Kopin Corporation's cost base as of late 2025, the cost of goods sold is definitely a major component of the picture. For the third quarter ended September 27, 2025, the Cost of Product Revenue hit 79% of net product revenue, which is up from 76% in the third quarter of 2024. This increase reflects higher manufacturing costs tied to training and simulation products and 3D AOI products, even with some efficiency gains in thermal weapon sight production helping to offset it a bit.

You'll see a significant positive shift in Selling, General and Administration (SG&A) expenses for Q3 2025. SG&A expenses were only $1.6 million in the third quarter of 2025. That's a big drop from $5.2 million in the third quarter of 2024, primarily because of a reduction in accrued legal expenses, though non-cash stock compensation did tick up a bit.

Here's a quick look at those key Q3 2025 expense line items you need to track:

Research and Development (R&D) remains a substantial investment area for Kopin Corporation, showing their commitment to future tech. For Q3 2025, R&D expense was $2.5 million, slightly down from $2.6 million the prior year. This spending level is happening while programs previously in development are transitioning into production, which is a key sign of maturation in their technology pipeline.

Beyond the reported quarterly expenses, the underlying structure involves other fixed and variable commitments:

• Fixed costs tied to the domestic Class 10 cleanroom facility operations.
• Ongoing capital expenditure for production automation and efficiency improvements.
• Internal R&D spending increased $0.4 million year-over-year in Q3 2025.

Finance: draft 13-week cash view by Friday.

Kopin Corporation (KOPN) - Canvas Business Model: Revenue Streams

You're looking at how Kopin Corporation actually brings in the money, which is heavily weighted toward specialized defense and high-tech component sales as of late 2025. Honestly, the revenue mix shows a clear pivot toward next-generation tech like MicroLED, even as legacy defense products remain a core pillar.

The core of the revenue comes from selling hardware, but the mix is shifting. For the third quarter ending September 27, 2025, Kopin Corporation pulled in $10.7 million from product sales, which covers their microdisplays and subassemblies. This is the bread-and-butter stream, though it saw a slight year-over-year dip in Q3 2025 compared to the prior year period.

Another important, though smaller, stream is the money coming in from external research. Funded Research and Development (R&D) contracts brought in $1.2 million in Q3 2025. This revenue stream is crucial because it funds the development of future products, like the advanced MicroLED technology, even if the timing of project completion can cause quarterly fluctuations.

Major defense contract awards represent significant, lumpy revenue opportunities that validate Kopin Corporation's technology leadership. A landmark example is the transformative $15.4 million Other Transaction Agreement (OTA) secured from the Office of the Secretary of Defense for developing full-color MicroLED displays for ground soldier augmented reality applications.

The transition from R&D to actual sales is happening now, which is a key inflection point for the business. You see this with new technology production orders, such as the recent order worth approximately $3 million from a tier one aerospace company for MicroLED displays to upgrade Heads-Up Displays (HUDs) in fielded combat aircraft. This marks the first production order for Kopin Corporation's MicroLED technology in combat aircraft.

Revenue from established defense programs remains a steady component of the product sales. Specifically, revenue generated from products used in thermal weapon sights and pilot helmet displays contributes significantly to the product revenue base. For instance, in Q1 2025, defense product revenues saw an increase, primarily driven by sales for thermal weapon sights and pilot helmets. However, the mix can shift; in Q3 2025, a decrease in revenue from pilot helmets and training was partially offset by an increase in sales from thermal weapon sights.

Here's a quick look at the key financial figures for the third quarter of 2025:

The company's overall financial health, post-Q3 2025, included total revenues of $12.0 million for the quarter, and a cash position of $26.5 million at the end of the quarter. Also, Kopin Corporation secured a $41 million private placement subsequent to the quarter end, which solidifies their ability to invest in these revenue-generating technologies.

You can expect the revenue mix to continue evolving as the $15.4 million OTA funding moves into production phases and the $3 million combat aircraft order is delivered in the second half of 2026.