Kopin enters pact with Lightning Silicon Technology, to reduce workforce

Kopin announced it has entered in a technology license agreement with Lightning Silicon Technology, a California company. Lightning Silicon is a company formed by John C.C. Fan, Kopin’s chairman of board, and former CEO, to develop and supply advanced organic light emitting diode, or OLED, microdisplays for the consumer augmented reality, or AR, and virtual reality, or VR, markets. Under the terms of the agreement Lightning Silicon will receive a license to certain Kopin intellectual property to develop, manufacture and sell OLED technologies for use in the consumer market. Kopin will receive an equity interest in Lightning Silicon and royalties from the sale of products related to the licenses. Kopin retains the ability and rights to develop, manufacture and sell OLED displays and complete optical solutions that include microdisplays to its core base in the defense and enterprise markets, as well as value added Consumer applications. We believe Kopin is the only provider that can offer fully integrated optical solutions with OLED, LCD, LCOS and micro-LED microdisplay technology, enabling it to provide the right technology for the application. "This Agreement is part of our plan to restore profitability to Kopin by focusing our resources on new and existing defense, industrial and consumer applications which are in line with our strategic plan," said Mr. Michael Murray, Kopin’s CEO. "The agreement allows Kopin to reduce personnel, development and operational costs associated with OLED development, while continuing to both serve our core markets with all microdisplay technologies and participate in the consumer market upside, as it matures. In addition to the employees moving to Lightning Silicon, we also reduced headcount in our other product lines due in part to our operational improvement strategies providing increased efficiencies. As a result of the transactions above Kopin’s annualized payroll expense, excluding severance and similar benefits, are expected to decrease by approximately 25% since December 31, 2022," said Murray.