28 th Annual Roth Conference. March 14, 2016

Transcription

1 28 th Annual Roth Conference March 14, 2016

2 FORWARD LOOKING STATEMENTS This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of These statements relate to our expected future financial and operating performance, growth in the markets in which our products are sold, our market share for our products, and our significant customers. We may use words such as expects, anticipates, intends, plans, believes, could, seeks, estimates, and variations of such words and similar expressions in identifying forward-looking statements. In addition, any statements which refer to expectations, projections, our stock value multiple, the value of head-worn computing and or Golden-i products, or other characterizations of future events or circumstances are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, whether as a result of new information, future events or otherwise. We refer you to the documents the Company files from time to time with Securities and Exchange Commission, and specifically the Risk Factors section of the Company s Form 10-K for the period ended December 26,2015. We do not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. 2

3 INVESTMENT SUMMARY FOCUS Wearable Technology Focus Global Wearable Market Projected to Exceed $170 Billion by 2020 AR and VR Market Estimated to be $25 Billion in 2025 MODEL STRONG TECHNOLOGY Solid Business Model Design and License concept systems, critical components Supplier to five Tier One enterprise, consumer HMD companies. Strong IP and Technology 300+ patents globally (display, software, speech enhancement, noise cancellation, ergonomics wearable systems) FINANCIAL POSITION Strong Financial Position Cash and S/T investments December 26, 2015) No debt 3

4 RECENT HIGHLIGHTS 2015 Revenues from Wearable Products Doubled over 2014 to Approximately $12 million At CES 2016 we : Demonstrated Solos smart eyewear designed for elite cyclists, trainers and coaches to maximize performance Launched and demonstrated Whisper Voice Chip based on Kopin s proprietary Voice Extraction Filter (VEF) technology. Announced Pupil TM the world s smallest smart glass display at only 2mm in height Announced an agreement with Hitachi Maxell, Ltd. to produce and market new high-capacity lithium-ion battery (SiMax) based on silicon oxide with carbon (SiO-C) in the anode Announced the Vista VR series of High Definition (HD) micro LCDs microdisplays for the immersive Virtual Reality (VR) 15 Companies Demonstrated Products Incorporating Kopin Technology at CES

5 RECENT HIGHLIGHTS: POSITIVE PRESS FROM CES

6 RECENT HIGHLIGHTS: SOLOS Solos Featured at the IBM 2016 InterConnect Cloud Conference in February 2016

7 YOU PROBABLY HEARD WEARABLES WILL BE BIG Consumer head-worn device (HMD) market segment expected to grow from $ 25 BILLION VR and AR Market MILLION $6.0 BILLION Million Units2 154% Unit CAGR IMS Research. 2 Morgan Stanley. 3. Cowen and Company 4. Goldman Sachs. 7

8 WHAT IS REQUIRED TO DEVELOP THE IDEAL INDUSTRIAL AND CONSUMER HMD? THE MISSING PIECES Compact, lowpower electronics Small, highcapacity battery Small display + optics allow stylish design Reliable WiFi and BT connection Attractive industrial design with system functionality Critical SW & FW Reliable voice-control for hands-free use Applications SW

9 Display modules: We have a full line of display modules to meet any need consumer & enterprise We have the world s smallest, brightest and most energy efficient display modules for HMD (Pupil) Voice interface: We improve Automatic Speech Recognition (ASR) success rate by almost 2X over competitive technologies in noisy (normal) environments We improve the clarity of human-to-human voice communications Power: We have collaborated with a top-tier Japan battery manufacturer to introduce a new battery for HMD with more than 2X more energy density than today s Lithium batteries System design and integration: Our expertise in complete systems design is based in 20+ years of winning military headset programs worldwide We have over 300 patents covering all core aspects of HMD systems, displays, audio

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11 Augmented & Virtual Reality Display modules Comprehensive line of modules for all HMD needs: Consumer & Enterprise applications Displays: Full range of sizes and resolutions (including world s smallest) diagonal QVGA QXGA Backlights: Super-high brightness, low power for inside and outside use Optics: Compact designs -- everyone wants small and good looking device even in enterprise use Driver ASICs: small size, low power Augmented Reality Virtual Reality

12 OPTICAL MODULES Distance to Eye (MM) Field of View Virtual Reality 60 PRISM 40 PEARL 20 PUPIL Augmented Reality and Virtual Reality Matching Display and Optics

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14 Voice interface: Kopin has developed THE Whisper Chip that provides up to almost 2X improvement in human-to-machine (H2M) automatic speech recognition (ASR) rates.

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16 Power battery: Kopin has entered a partnership with Hitachi Maxell for the optimal HMD battery. Under the terms of the agreement, Kopin will exclusively market the batteries to OEM customers under the brand name SiMax for use in head-worn wearable products. The first SiMax battery measures just 46x10.5x5.5mm with 400 mah capacity, % more energy density compared to today s Li-Ion cells in the market.

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19 The leader in Military and Enterprise Wearable Headsets Consumer Military Enterprise Intel /Recon Tier One Fitness Brand product launched at 2016 CES Rockwell Collins Elbit Raytheon DRS BAE Motorola Fujitsu Google

20 CONDENSED BALANCE SHEET December 26, 2015 December 27, 2014 Assets Cash and marketable securities $ 80,710,780 $ 90,858,936 Total current assets 101,156,222 99,924,620 Equipment and improvements, net 2,677,103 4,589,421 Other assets 2,226,761 3,494,038 Note receivable - 14,933,335 Total assets $ 106,060,086 $ 122,941,414 Liabilities and stockholders equity Total current liabilities 11,276,844 13,242,924 ARO 298, ,187 Total stockholders' equity 94,484, ,387,303 Total liabilities and stockholders' equity $ 106,060,086 $ 122,941,414 No long-term debt 20

21 CONDENSED STATEMENT OF OPERATIONS ($ in million except per share data) Total Revenues $ 32.1 $ 31.8 Cost of product revenues Gross Margin R&D SG&A Operating loss (25.3) (28.5) Other income (loss) Net loss ($14.7) ($28.2) Net loss per share ($0.23) ($0.45) Weighted average shares o/s

22 SUMMARY A FOCUS ON WEARABLES Technology Customers/partners leverage our portfolio of key technologies developed over 30 year history LCOS displays (transmissive and reflective) Optics Low power IC Ergonomics Software Electronics Packaging Speech enhancement Natural speech software We understand the complete wearable headset system requirements Demonstrate that the breadth of our knowledge and increase our critical component offerings enabling our partners to develop tailored solutions and reduce their time to market Customers 15 Companies displayed Wearable Products at CES in January 2016 based on our technologies Continue to enhance our IP portfolio on key technologies and concept system designs Innovation At CES 2016 we demonstrated our latest technologies including our Whisper Speech Enhancement Chip, SiMax Battery, and Vista lens 22

23 28 th Annual Roth Conference March 14, 2016