Kopin Corporation (KOPN)

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Second Quarter Financial Results

Product revenues for the second quarter ended June 27, 2020 were $6.7 million, compared with $4.4 million for the second quarter ended June 29, 2019, a 50% increase year over year. Funded research, development and other revenues were $2.1 million for the second quarter ended June 27, 2020 compared with $4.7 million for the second quarter ended June 29, 2019. Included in the $4.7 million of revenues for the second quarter of 2019 was a one-time license fee payment of $3.5 million. Total revenues were $8.8 million for the second quarter ended June 27, 2020 compared with $9.1 million for the second quarter ended June 29, 2019.

Research and development (R&D) expenses for the second quarter of 2020 were $2.2 million compared to $3.3 million for the second quarter of 2019, a 33% decrease year over year. The decline in R&D expenses is due in part to the licensing and sale of our Golden-I Infinity and Solos technologies as part of our commercialization strategy which we commenced in 2019. In fiscal year 2020, we expect our R&D expenditures to primarily focus on our display products, overlay weapon sights and organic light emitting diode (“OLED”) display technologies.

Selling, general and administrative (SG&A) expenses were $2.9 million for the second quarter of 2020, compared to $5.4 million for the second quarter of 2019, a 46% decrease year over year. SG&A decreased for the three and six months ended June 27, 2020 as compared to the three and six months ended June 29, 2019 primarily due to a decrease in compensation expenses including stock-based compensation, bad debt expense, professional fees, information technology expenses, travel and accretion of the NVIS contingent consideration.

The net loss attributable to controlling interest for the second quarter of 2020 was $1.1 million, or 1 cent per share, compared with net loss of $4.3 million, or 5 cents per share, for the second quarter of 2019.

Net cash used in operating activities for the second quarter ended June 27, 2020 was approximately $2.9 million. Kopin's cash and equivalents and marketable securities were approximately $15.3 million at June 27, 2020 as compared to $21.8 million at December 28, 2019.

All amounts above are estimates and readers should refer to our Form 10-Q for the quarter ended June 27, 2020, for final disposition as well as important risk factors.