KOPIN CORP
For the period ended Sep 27, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2025 · Filed Nov 12, 2025
KOPN$3.04+10.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-28; filed 2025-08-12.
0001493152-25-011854
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-27; filed 2025-11-12.
0001493152-25-022035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 45 previous paragraphs and 48 current paragraphs.
19 unchanged; 23 reworded; 6 added; 3 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 7 previous and 7 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
The cost of product revenues as a percentage of net product revenues for the three and nine months ended September 27, 2025, as compared to the three and nine months ended September 28, 2024 increased due to higher costs to manufacture training and simulation products and 3DAOI products which was partially offset by improved efficiency in making products for thermal weapon sights. The increase in cost to manufacture training and simulation and 3DAOI products is due to lower volumes which results in a higher fixed cost per unit.
Current report
On September 29, 2025, the Company announced that it had entered into a securities purchase agreement (the “Purchase Agreement”) for a private investment in public equity financing (the “PIPE”) for 19,545,950 shares of its common stock, par value $0.01 per share (the “Shares”). The net proceeds to the Company from the offering were estimated to be approximately $38.1 million, after deducting placement agent fees and commissions and estimated offering expenses payable by the Company. The transaction was consummated on September 30, 2025.
Current report
As described in Note 14. Litigation, on September 5, 2025, a post-trial order was entered in the U.S. District Court for the District of Colorado in the matter of BlueRadios, Inc. v. Kopin Corporation, Inc. finding for the plaintiff, BlueRadios, Inc. and awarding approximately $19.7 million in damages but denying a permanent injunction and prejudgment interest. In the second quarter of 2024, the Company had estimated and accrued $24.8 million in probable and reasonably estimable damages for this matter. As a result of the post-trial order, the Company reduced the accrual to $19.7 million and recognized a benefit of $5.1 million for the reduction in the accrual in the condensed consolidated Statements of Operations for the three and nine months ended September 27, 2025. On October 2, 2025, the Company posted a supersedeas bond for the amount of $23.0 million which consisted of the $19.7 million judgement, legal expenses, and interest that would accrue over the expected term of the appeal. To post the bond the Company entered into loan agreements (the “Agreements”) with its bank which provides the bank with a security interest in the $23.0 million the Company deposited with the bank. This $23.0 million is to be classified as Restricted Cash. The bank then issued a Letter of Credit (LOC) to a surety company who then issued the bond to the court. The Agreement provides for standard representations and warranties and allows the bank to use the $23.0 million to satisfy the LOC in the event the LOC is called. As of September 27, 2025, the Company has accrued $19.7 million for the judgment within Accrued litigation liability and has accrued approximately $0.1 million in related interest within Other accrued liabilities. On October 7, 2025, the Company filed an appeal of the $19.7 million judgement against the Company in the matter of Blue Radios Inc. v. Kopin Corporation. As of September 27, 2025, the Company has accrued $19.7 million for the judgment within Accrued litigation liability and has accrued approximately $0.1 million in related interest within Other accrued liabilities.
Current report
On October 16, 2025, the Company announced that a $15 million strategic investment from Theon International Plc had been completed. Under the terms of the Agreements, Theon acquired a 49% interest in Kopin’s subsidiary, Kopin Europe Ltd. for $8.0 million and the parties entered into a licensing and development agreement and funding agreements relating to the joint development of military products. In addition, Theon purchased $7.0 million worth of shares of Series A Convertible Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Stock”). Each share of the Preferred Stock is convertible into shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”) at an initial fixed conversion price of $3.00 per share, pursuant to the terms of the Certificate of Designation for Series A Convertible Preferred Stock of the Company (the “Certificate of Designations”). Kopin will have the ability to force the conversion of the preferred stock into common stock once Kopin’s common stock trades at $5.50 per share or higher for 10 Trading Days (as defined in the Certificate of Designation) within a 30 consecutive Trading Day period. The Preferred Stock will carry an annual dividend of at the base rate dividend rate of 4%, 2% payable in cash and 2% payable in stock.
Current report
We expect to continue to incur significant operating losses and negative cash flow from operations in the foreseeable future. Inclusive within the financial statements for the year ended December 28, 2024 and for the three and six months ended June 28, 2025 we experienced negative cash flow from operation and had limited liquidity resources which has led us to conclude that there was substantial doubt about the Company’s ability to continue as a going concern. After the bond related to the Blue Radios, Inc. v. Kopin Corporation, Inc. judgment, we were able to achieve sufficient financing from the PIPE so that liquidity, financial condition, and business projects will be funded. Therefore, we have concluded that the Company will be able to continue as a going concern for at least the next twelve months from the issuance of these financial statements.
Current report
As discussed in Note 16. Subsequent Events, $23.0 million of the Company’s cash balance is to be classified as Restricted Cash.
Removed paragraphs (3)
Previous report
The increase in cost of product revenue as a percent of net product revenues for the three months ended June 28, 2025 as compared to the three months ended June 29, 2024 was due to decreased unit volume of revenue for the three months ended June 28, 2025 as compared to the three months ended June 29, 2024 which resulted in the under absorption of overhead which was partially offset by decreases in excess and obsolete reserves and warranty reserves. Cost of product revenues as a percentage of net product revenues for the six months ended June 28, 2025, as compared to the six months ended June 29, 2024 was essentially flat.
Previous report
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. We have incurred net losses of $43.9 million and net cash outflows from operations of $14.2 million for the fiscal year ended 2024. We incurred a net loss of $8.3 million for the six months ended June 28, 2025 and net cash outflows from operations of $7.6 million. In addition, we have experienced a significant decline in our cash and cash equivalents and marketable securities over the last several years, which was primarily a result of funding operating losses. As described in Note 14 Litigation, on April 22, 2024, the jury verdict was entered against us awarding approximately $5.1 million in damages as well as recommending $19.7 million in disgorgement and exemplary damages. While no final judgment has been issued by the Court, the Court will take that recommendation under advisement and will rule in its final judgment on the final amount after briefing on the issues. We have argued that the damages, disgorgement and exemplary damages should be reduced or eliminated. Final briefing on the issued occurred on October 29, 2024. We are also considering the appeal of any award in a final judgment. The $5.1 million in damages and $19.7 million in disgorgement and exemplary damages were accrued for as of June 28, 2025 and December 28, 2024. We had $27.8 million of cash and cash equivalents, restricted cash, and marketable securities at June 28, 2025.
Previous report
We have had historical and current negative cash flow from operations and limited liquidity resources. Our current strategy is to continue to invest in our business and raise additional capital through financing activities that may include public offerings and private placements of our common stock, preferred stock offerings, collaborations and licensing arrangements and issuances of debt and convertible debt instruments. Until such time that additional capital can be raised, we plan to strategically manage our uncommitted spending, execute our priorities and implement cost saving measures to reduce research and development and general and administrative expenditures which could include minimizing staff costs. We may also sell assets and look at other strategic alternatives. There are inherent uncertainties associated with fundraising activities and activities to manage our uncommitted spending and the successful execution of these activities may not be within our control. There are no assurances that such additional funding will be obtained and that we will succeed in our future operations. If we are unable to achieve positive cash flows and profitability in the foreseeable future or cannot successfully raise additional capital and implement our strategic plan, our liquidity, financial condition and business prospects will be materially and adversely affected. As the Company is unable to conclude that a favorable outcome in this litigation is probable and due to the net losses and negative cash flows from operations, management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern for twelve months from the issuance of these financial statements.
Reworded paragraphs (23)
Previous wording
We have identified the following important factors that could cause actual results to differ materially from those discussed in our forward-looking statements. Such factors may be in addition to the risks described in Part I, Item 1A. “Risk Factors;” Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” and other parts of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024, as amended. These factors include: our ability to source semiconductor components and other raw materials used in the manufacturing of our products amidst continued intermittent shortages, including from new and alternative suppliers; our ability to prosecute and defend our proprietary technology aggressively or successfully; our ability to recruit and retain personnel with experience and expertise relevant to our business; our ability to invest in research and development to achieve profitability even during periods when we are not profitable; any disruptions or delays in our supply chains, particularly with respect to semiconductor components, whether resulting from regional or global geopolitical developments, changes imposed by the new U.S. presidential administration, or otherwise; costs and outcomes relating to any disputes, governmental inquiries or investigations, regulatory proceedings, legal proceedings or litigation; our ability to continue to introduce new products in our target markets; our ability to generate revenue growth and positive cash flow, and reach profitability; the strengthening of the U.S. dollar and its effects on the price of our products in foreign markets; the impact of new regulations and customer demands relating to conflict minerals; our ability to obtain a competitive advantage in the wearable technologies market through our extensive portfolio of patents, trade secrets and non-patented know-how; our ability to grow within our targeted markets; the importance of small form factor displays in the development of defense, consumer, and industrial products such as thermal weapon sights, safety equipment, virtual and augmented reality gaming, training and simulation products and metrology tools; the suitability of our properties for our needs for the foreseeable future; and our need to achieve and maintain positive cash flow and profitability.
Current wording
We have identified the following important factors that could cause actual results to differ materially from those discussed in our forward-looking statements. Such factors may be in addition to the risks described in Part I, Item 1A. “Risk Factors;” Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations;” and other parts of our Annual Report on Form 10-K for the fiscal year ended December 28, 2024, as amended. These factors include: our ability to source semiconductor components and other raw materials used in the manufacturing of our products amidst continued intermittent shortages, including from new and alternative suppliers; our ability to prosecute and defend our proprietary technology aggressively or successfully; our ability to recruit and retain personnel with experience and expertise relevant to our business; our ability to invest in research and development to achieve profitability even during periods when we are not profitable; any disruptions or delays in our supply chains, particularly with respect to semiconductor components, whether resulting from regional or global geopolitical developments, changes imposed by the new U.S. presidential administration, the current U.S. government shutdown, or otherwise; costs and outcomes relating to any disputes, governmental inquiries or investigations, regulatory proceedings, legal proceedings or litigation; our ability to continue to introduce new products in our target markets; our ability to generate revenue growth and positive cash flow, and reach profitability; the strengthening of the U.S. dollar and its effects on the price of our products in foreign markets; the impact of new regulations and customer demands relating to conflict minerals; our ability to obtain a competitive advantage in the wearable technologies market through our extensive portfolio of patents, trade secrets and non-patented know-how; our ability to grow within our targeted markets; the importance of small form factor displays in the development of defense, consumer, and industrial products such as thermal weapon sights, safety equipment, virtual and augmented reality gaming, training and simulation products and metrology tools; the suitability of our properties for our needs for the foreseeable future; and our need to achieve and maintain positive cash flow and profitability.
Previous wording
*Revenues.*For the three and six months ended June 28, 2025 and June 29, 2024, our revenues by display application, which include product sales and amounts earned from research and development contracts (“R&D”), were as follows:
Current wording
*Revenues.*For the three and nine months ended September 27, 2025 and September 28, 2024, our revenues by display application, which include product sales and amounts earned from research and development contracts (“R&D”), were as follows:
Previous wording
Sales of our products for Defense applications include systems used by the military both in the field and for training and simulation. The decrease in Defense applications revenues in the three months ended June 28, 2025 as compared to the three months ended June 29, 2024 was primarily due to a decrease in revenues from products used in thermal weapon sights and pilot helmets. The decrease in Defense applications revenues in the six months ended June 28, 2025 as compared to the six months ended June 29, 2024 was primarily due to a decrease in revenues from products used in thermal weapon sights and training and simulation which was partially offset by an increase in sales from products used in pilot helmets.
Current wording
Sales of our products for Defense applications include systems used by the military both in the field and for training and simulation. The decrease in Defense applications revenues in the three months ended September 27, 2025 as compared to the three months ended September 28, 2024 was primarily due to a decrease in revenues from products used in pilot helmets and training and simulation which was partially offset by an increase in sales from products used in thermal weapon sights. The decrease in Defense applications revenues in the nine months ended September 27, 2025 as compared to the nine months ended September 28, 2024 was primarily due to a decrease in revenues from products used in thermal weapon sights, training and simulation, and pilot helmets.
Previous wording
Industrial applications revenue represents customers who purchase our display products for use in 3D metrology equipment and headsets used for applications in manufacturing, distribution, and public safety. Our 3D metrology customers are primarily located in Asia and sell to Asian contract manufacturers who use the 3D metrology machines for quality control purposes. The increase in Industrial applications revenues for the three and six months ended June 28, 2025 as compared to the three months ended June 29, 2024 was primarily due to an increase in revenues from products used in a public safety application which was partially offset by a decline in products used for 3D automated optical inspection.
Current wording
Industrial applications revenue represents customers who purchase our display products for use in 3D automated optical inspection (“3DAOI”) equipment and head-mounted displays used for applications in public safety. The increase in Industrial applications revenues for the three and nine months ended September 27, 2025 as compared to the three months ended September 28, 2024 was primarily due to an increase in revenues from products used in a public safety application which was partially offset by a decline in products used for 3D automated optical inspection. We have launched a new product for the 3DAOI and our ability to compete in this market will rely upon acceptance of this product which we are unable to forecast.
Previous wording
Medical revenues represent the initial shipments of head-mounted medical product.
Current wording
Medical revenues in 2025 represent the initial shipments of a head-mounted medical product. There were minimal revenues from the sales of this product in the third quarter of 2025 as the products sold in the first six months of 2025 are being evaluated by ultimate customers.
Previous wording
R&D revenues decreased in the three and six months ended June 28, 2025 as compared to the three and six months ended June 29, 2024 primarily due to decreases in funding for U.S. defense programs.
Current wording
R&D revenues decreased in the three and nine months ended September 27, 2025 as compared to the three and nine months ended September 28, 2024 primarily due to decreases in funding for U.S. defense programs. We were awarded a $15.4 million Other Transaction Agreement (“OTA”) from the Office of the Secretary of War (“OSW”) through the U.S. Army Contracting Command (“ACC”) under the Industrial Base Analysis and Sustainment (“IBAS”) program. This contract is for the development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality (“AR”) applications. As a result of this contract and other contracts we have received, we believe funded research and development revenues will increase in fiscal year 2026 as compared to fiscal year 2025. This belief is based on assumption of meeting required milestones in these contracts which may be delayed or not met which can affect the timing of revenue recognition.
Previous wording
The decrease in license and royalty revenue in the three and six months ended June 28, 2025 as compared to the three and six months ended June 29, 2024 is due to a decrease in royalties earned under IP license agreements for industrial wearable headsets.
Current wording
The decrease in license and royalty revenue in the three and nine months ended September 27, 2025 as compared to the three and nine months ended September 28, 2024 is due to a decrease in royalties earned under IP license agreements for industrial wearable headsets.
Previous wording
Our international revenues, which are primarily our sales of our products into the 3D AOI market and which comprise the majority of our Industrial sales category, represented 3% and 4% of total revenues for the three and six months ended June 28, 2025, respectively, and 7% and 8% of total revenues for the three and six months ended June 29, 2024, respectively. These sales are primarily made by Kopin Europe, Ltd. our wholly-owned Scottish subsidiary in Asian markets. We have not taken any protective measures against exchange rate fluctuations, such as purchasing hedging instruments with respect to such fluctuations, because of the historically stable exchange rate between the British Pound Sterling (the functional currency of our U.K. subsidiary) and the U.S. dollar. Foreign currency translation impact on our results, if material, is described in further detail under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” section below.
Current wording
Our international revenues, which are primarily our sales of our products into the 3D AOI market and which comprise the majority of our Industrial sales category, represented 3% and 4% of total revenues for the three and nine months ended September 27, 2025, respectively, and 5% and 7% of total revenues for the three and nine months ended September 28, 2024, respectively. These sales are primarily made by Kopin Europe, Ltd. (“KEL”) our then wholly-owned Scottish subsidiary as of September 27, 2025 in Asian markets. In October 2025, we sold a 49% interest in KEL to Theon. We expect to expand the operations of KEL through the development of new products. We are unable to forecast when the products would be available, if successfully developed, to generate revenue. We have not taken any protective measures against exchange rate fluctuations, such as purchasing hedging instruments with respect to such fluctuations, because of the historically stable exchange rate between the British Pound Sterling (the functional currency of our U.K. subsidiary) and the U.S. dollar. Foreign currency translation impact on our results, if material, is described in further detail under “Item 3. Quantitative and Qualitative Disclosures About Market Risk” section below.
Previous wording
*Cost of Product Revenues.*Cost of product revenues, which is comprised of materials, labor and manufacturing overhead related to the production of our products for the three and six months ended June 28, 2025 and June 29, 2024 were as follows:
Current wording
*Cost of Product Revenues.*Cost of product revenues, which is comprised of materials, labor and manufacturing overhead related to the production of our products for the three and nine months ended September 27, 2025 and September 28, 2024 were as follows:
Previous wording
The issues associated with the global shortage of semiconductor circuit chips and other raw materials decreased in 2024 as compared to 2023 and 2022. However, we have identified several semiconductor components which continue to have long lead delivery times. We continue to search for and procure all necessary components from our current vendors and new alternative vendors. In certain situations, we can obtain the components but at a significantly increased cost. The inability to procure a single component will prevent the completion of our product and the ability to sell the product. Our products go through extensive qualification processes and therefore our customers may not accept a replacement component. If we are unable to obtain all necessary components, we may be required to stop production, which would negatively affect our cash flow and results of operations. In addition, we depend on a Taiwanese foundry for the manufacture of integrated circuits for our AMLCD display products and on Chinese, Korean, and European foundries for our OLED display products. If there was a disruption of supply from these foundries it would take a significant period of time to identify, and qualify, if possible, a new source.
Current wording
The issues associated with the global shortage of semiconductor circuit chips and other raw materials decreased in 2025 as compared to 2024. However, we have identified several semiconductor components which continue to have long lead delivery times. We continue to search for and procure all necessary components from our current vendors and new alternative vendors. In certain situations, we can obtain the components but at a significantly increased cost. The inability to procure a single component will prevent the completion of our product and the ability to sell the product. Our products go through extensive qualification processes and therefore our customers may not accept a replacement component. If we are unable to obtain all necessary components, we may be required to stop production, which would negatively affect our cash flow and results of operations. In addition, we depend on a Taiwanese foundry for the manufacture of integrated circuits for our AMLCD display products and on Chinese, Korean, and European foundries for our OLED display products. If there was a disruption of supply from these foundries it would take a significant period of time to identify, and qualify, if possible, a new source.
Previous wording
Research and Development. R&D expenses are incurred in support of internal display development programs and programs funded by agencies or prime contractors of the U.S. Government and commercial partners. R&D costs include staffing, purchases of materials and laboratory supplies, circuit design costs, fabrication and packaging of display products, and overhead. In fiscal year 2025, we expect our R&D expenditures to be related to our display products, overlay weapon sight modules and production automation. Funded and internal R&D expenses are combined in research and development expenses in the condensed consolidated statement of operations. R&D expenses for the three and six months ended June 28, 2025 and June 29, 2024 were as follows:
Current wording
Research and Development. R&D expenses are incurred in support of internal display development programs and programs funded by agencies or prime contractors of the U.S. Government and commercial partners. R&D costs include staffing, purchases of materials and laboratory supplies, circuit design costs, fabrication and packaging of display products, and overhead. In fiscal year 2025, our R&D expenditures are related to our display products, overlay weapon sight modules and production automation. In addition, in October 2025 we sold a 49% interest in KEL to Theon. We expect to expand the operations of KEL through the development of new products. Funded and internal R&D expenses are combined in research and development expenses in the condensed consolidated statement of operations. R&D expenses for the three and nine months ended September 27, 2025 and September 28, 2024 were as follows:
Previous wording
Funded R&D expense for the three and six months ended June 28, 2025 decreased as compared to the three and six months ended June 29, 2024 primarily due to decreased spending on U.S. defense programs and programs previously in development are transitioning into production. Internal R&D expense increased due to an increase in internally developed technology focused on future process improvements.
Current wording
Funded R&D expense for the three and nine months ended September 27, 2025 decreased as compared to the three and nine months ended September 28, 2024 primarily due to decreased spending on U.S. defense programs and programs previously in development are transitioning into production. Internal R&D expense increased due to an increase in internally developed technology focused on future process improvements. We were awarded a $15.4 million Other Transaction Agreement (“OTA”) from the Office of the Secretary of War (“OSW”) through the U.S. Army Contracting Command (“ACC”) under the Industrial Base Analysis and Sustainment (“IBAS”) program. This contract is for the development of ultra-bright, full-color MicroLED displays optimized for ground soldier augmented reality (“AR”) applications. As a result of this contract and other contracts we have received we believe funded research and development expenses will increase in fiscal year 2026 as compared to fiscal year 2025.
Previous wording
Selling, General and Administrative. Selling, general and administrative (“S,G&A”) expenses consist of the expenses incurred by our sales and marketing personnel and related expenses, and administrative and general corporate expenses. S,G&A expenses for the three and six months ended June 28, 2025 and June 29, 2024 were as follows:
Current wording
Selling, General and Administrative. Selling, general and administrative (“S,G&A”) expenses consist of the expenses incurred by our sales and marketing personnel and related expenses, and administrative and general corporate expenses. S,G&A expenses for the three and nine months ended September 27, 2025 and September 28, 2024 were as follows:
Previous wording
S,G&A decreased for the three and six months ended June 28, 2025 as compared to the three and six months ended June 29, 2024 primarily due to a decrease in legal fees partially offset by an increase in non-cash stock-based compensation.
Current wording
S,G&A decreased for the three months ended September 27, 2025 as compared to the three months ended September 28, 2024 primarily due to a decrease in accrued legal expenses of approximately $4.0 million partially offset by an increase in non-cash stock-based compensation of $0.2 million. S,G&A decreased for the nine months ended September 27, 2025 as compared to the nine months ended September 28, 2024 primarily due to a decrease in accrued legal expenses of approximately $9.8 million partially offset by an increase in non-cash stock-based compensation of $0.6 million, professional fees of $0.4 million, and labor costs of $0.4 million.
Previous wording
Litigation Damages Litigation damages were accrued as of June 29, 2024 as a result of the April 22, 2024 jury verdict that was entered against the Company awarding approximately $5.1 million in damages as well as recommending $19.7 million in disgorgement and exemplary damages.
Current wording
Litigation Damages. Litigation damages of $24.8 million were accrued as of September 28, 2024 as a result of the April 22, 2024 jury verdict that was entered against the Company. On September 5, 2025, Kopin received a judgment from the courts in the BlueRadios litigation awarding BlueRadios $19.7 million in damages but denying a permanent injunction and prejudgment interest. This most recent judgment also provides for the accrual of interest of less than $0.1 million per month until final settlement. As a result, the accrued litigation damages were reduced by $5.1 million in the three months ended September 27, 2025. We also recognized approximately $0.1 million of litigation damages related to the interest on the judgment in the three months ended September 27, 2025.
Previous wording
*Other Income, net.*Other income, net, is primarily composed of interest income, foreign currency transactions, gains on fair value recording of investments and remeasurement gains and losses incurred by our U.K.-based subsidiary and other non-operating income items. Other income, net, for the three and six months ended June 28, 2025 and June 29, 2024 were as follows:
Current wording
*Other Expense, net.*Other expense, net, is primarily composed of interest income, foreign currency transactions, gains on fair value recording of investments and remeasurement gains and losses incurred by our U.K.-based subsidiary and other non-operating income items. Other expense, net, for the three and nine months ended September 27, 2025 and September 28, 2024 were as follows:
Previous wording
During the six months ended June 28, 2025, we sold an investment for a gain of approximately $0.3 million, respectively. Interest income increased approximately $0.1 million and $0.4 million for the three and six months ended June 28, 2025, respectively, as compared to the three and six months ended June 29, 2024. During the three and six months ended June 28, 2025, we recorded foreign currency gains of less than $0.1 million and approximately $0.1 million, respectively. During the three and six months ended June 29, 2024, we recorded foreign currency gains of less than $0.1 million and foreign currency losses of less than $0.1 million, respectively. Other income (expense), net includes $0 and $0.7 million of impairment losses on equity investments for the second quarter of 2025 and the second quarter of 2024, respectively.
Current wording
During the nine months ended September 27, 2025, we sold an investment for a gain of approximately $0.3 million. Interest income increased by less than $0.1 million and approximately $0.4 million for the three and nine months ended September 27, 2025, respectively, as compared to the three and nine months ended September 28, 2024. During the three and nine months ended September 27, 2025, we recorded foreign currency losses of approximately $0.2 and less than $0.1 million, respectively. During the three and nine months ended September 28, 2024, we recorded foreign currency gains of $0.1 million and less than $0.1 million, respectively. Other (expense) income, net includes $0.5 and $1.6 million of impairment losses on equity investments for the nine months ended September 27, 2025 and September 28, 2024, respectively.
Previous wording
Tax Provision. We recorded a provision for income taxes of less than $0.1 million and approximately $0.1 million in the three and six months ended June 28, 2025, respectively. We recorded a provision for income taxes of $0 in the three and six months ended June 29, 2024
Current wording
Tax Provision. We recorded a provision for income taxes of less than $0.1 million and approximately $0.2 million in the three and nine months ended September 27, 2025, respectively. We recorded a provision for income taxes of approximately $0.1 million in the three and nine months ended September 28, 2024
Previous wording
Net Loss. We incurred net losses of $5.2 million and $8.3 million during the three and six months ended June 28, 2025, respectively, compared to net losses of $5.9 million and $38.5 million during the three and six months ended June 29, 2024, respectively. The decrease in net loss during the three months ended June 28, 2025 compared to the three months ended June 29, 2024 was primarily due to a decrease in legal fees. The decrease in the net loss during the six months ended June 28, 2025 compared to the six months ended June 29, 2024 was primarily due to accrued litigation damages and legal fees.
Current wording
Net Income (Loss). Net income of $4.1 million and net losses of $4.2 million during the three and nine months ended September 27, 2025, respectively, compared to net losses of $3.5 million and $41.9 million during the three and nine months ended September 28, 2024, respectively. The increase in net income during the three months ended September 27, 2025 compared to the three months ended September 28, 2024 was primarily due to the reduction of the accrued litigation damages and legal fees. The decrease in net loss during the nine months ended September 27, 2025 compared to the nine months ended September 28, 2024 was primarily due to accrued litigation damages and legal fees.
Previous wording
At June 28, 2025 and December 28, 2024, we had cash and cash equivalents, including restricted cash, and marketable securities of $27.8 million and working capital of $11.2 million compared to $36.6 million and $18.9 million, respectively.
Current wording
At September 27, 2025 and December 28, 2024, we had cash and cash equivalents, including restricted cash, and marketable securities of $27.6 million and working capital of $16.9 million compared to $36.6 million and $18.9 million, respectively.
Previous wording
The increase in cash, cash equivalents, and restricted cash for the six months ended June 28, 2025 was primarily due to proceeds from the sales of marketable securities of $34.0 million partially offset by purchases of marketable securities of $15.2 million, cash used in operations of $7.6 million, capital expenditures of $1.2 million and proceeds from the sale of an equity investment of $0.3 million. The increase in cash, cash equivalents, and restricted cash for the three months ended June 29, 2024 was primarily due to proceeds from the sale of common stock of $7.2 million and marketable securities of $5.3 million partially offset by cash used in operations of $6.2 million, purchases of marketable securities of $1.1 million, and capital expenditures of $0.3 million. For the six months ended June 28, 2025, cash used in operating activities consisted of a net loss of $8.3 million and net cash used to fund changes in operating assets and liabilities of $1.8 million, which were partially offset by non-cash charges totaling $2.5 million, which was primarily related to stock-based compensation, depreciation, and inventory reserves. For the six months ended June 29, 2024, cash used in operating activities consisted of a net loss from operations of $38.5 million partially offset by net cash provided by changes in operating assets and liabilities of $3.9 million and non-cash charges totaling $28.3 million, which was primarily related to accrued litigation damages, stock-based compensation, inventory reserves, and depreciation. We expect that net cash used for or provided by operating activities to fluctuate in future periods as a result of a number of factors, including fluctuations in our operating results, the timing of when we recognize revenue, and changes in components of working capital. Our cash and cash equivalents and liquidity could be adversely affected by any amounts that become payable in connection with any adverse results from any litigation we are, or may become, involved in.
Current wording
The increase in cash, cash equivalents, and restricted cash for the nine months ended September 27, 2025 was primarily due to proceeds from the sales of marketable securities of $36.4 million partially offset by purchases of marketable securities of $15.2 million, cash used in operations of $7.7 million, capital expenditures of $1.3 million and proceeds from the sale of an equity investment of $0.3 million. The increase in cash, cash equivalents, and restricted cash for the three months ended September 28, 2024 was primarily due to proceeds from the sale of common stock and pre-funded warrants of $32.4 million and marketable securities of $6.9 million partially offset by purchases of marketable securities of $16.9 million, cash used in operations of $12.6 million, and capital expenditures of $0.3 million. For the nine months ended September 27, 2025, cash used in operating activities consisted of a net loss of $4.2 million, net cash used to fund changes in operating assets and liabilities of $3.0 million, and non-cash charges totaling $0.5 million, which was primarily related to accrued litigation damages offset by stock-based compensation, inventory reserves, depreciation, and investment impairment net of unrealized gains. For the nine months ended September 28, 2024, cash used in operating activities consisted of a net loss from operations of $41.9 million and net cash provided by changes in operating assets and liabilities of $1.9 million partially offset by non-cash charges totaling $31.2 million, which was primarily related to accrued litigation damages, stock-based compensation, investment impairment net of unrealized gains, inventory reserves, and depreciation. We expect that net cash used for or provided by operating activities to fluctuate in future periods as a result of a number of factors, including fluctuations in our operating results, the timing of when we recognize revenue, and changes in components of working capital. Our cash and cash equivalents and liquidity could be adversely affected by any amounts that become payable in connection with any adverse results from any litigation we are, or may become, involved in.
Previous wording
On September 23, 2024, we sold 37,550,000 shares of common stock and pre-funded warrants to purchase up to 4,000,000 shares of common stock at a public offering price of $0.64 per pre-funded warrants, for gross proceeds of $27.0 million before deducting underwriting discounts and offering expenses paid by the us of $1.8 million. The offering price of the pre-funded warrant equals the public offering price per share of the common stock less the $0.01 per share exercise price of each pre-funded warrant.
Current wording
On September 23, 2024, we sold 37,550,000 shares of common stock at a public offering price of $0.65 per share. In addition, in lieu of common stock to certain investors, we offered pre-funded warrants to purchase 4,000,000 shares of our common stock at a purchase price of $0.64 per pre-funded warrant, which equals the public offering price per share of the common stock less the $0.01 exercise price per share of each pre-funded warrant. We received gross proceeds of $27.0 million before deducting underwriting discounts and offering expenses paid by us of $1.8 million. In addition, we granted the underwriters a 30-day option to purchase up to an additional 6,232,500 shares of common stock at the public offering price, less underwriting discounts and commissions.
Previous wording
During the three months ended March 30, 2024, we sold 3,080,000 shares of common stock for gross proceeds of $7,466,755 (average of $2.42 per share) before deducting broker expenses paid by us of approximately $0.2 million, pursuant to our then effective At-The-Market Equity Offering Sales Agreement, dated as of March 5, 2021 (the “ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent. The ATM Agreement terminated in the three months ended June 29, 2024. On January 24, 2025 we entered into a new At-The-Market Equity Offering Sales Agreement with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent, for the sale of up to $50 million of securities. Subsequent to June 28, 2025, the Company cannot use the ATM Agreement entered into on January 24, 2025 until such time the Company can utilize Form S-3.
Current wording
During the three months ended March 30, 2024, we sold 3,080,000 shares of common stock for gross proceeds of $7,466,755 (average of $2.42 per share) before deducting broker expenses paid by us of approximately $0.2 million, pursuant to our then effective At-The-Market Equity Offering Sales Agreement, dated as of March 5, 2021 (the “ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent. The ATM Agreement terminated in the three months ended September 28, 2024. On January 24, 2025, the Company entered into a new At-The-Market Equity Offering Sales Agreement with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent, for the sale of up to $50 million of securities. Subsequent to April 13, 2025, the Company cannot use the At-The-Market Equity Offering Sales Agreement entered into on January 24, 2025 until such time the Company can utilize Form S-3.