FORWARD LOOKING STATEMENTS
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This presentation includes forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. 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 27,2014 and Form 10-Q for the nine month period ended September 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.
INVESTMENT SUMMARY
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Wearable Technology Focus• Global Wearable Market Projected to Exceed $170 Billion by 2020• Unit CAGR Projected to be >154% from 2013 to 2017
.
FOCUS
MODEL
STRONGTECHNOLOGY
FINANCIAL
POSITION
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)
Strong Financial Position• Cash and S/T investments (>$87M @ September 26, 2015)• No debt
RECENT HIGHLIGHTS
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Q3, 2015 and Year to Date Highlights Include
• Wearables revenues double for the nine months ended September 27,2015 and compared to the same period in 2014
• Kopin introduces Solos, Smart Eyewear designed for elite cyclists, trainers and coached to maximize performance
• Added another Tier One Customer we expect to launch a consumer wearable product in 2016 bringing the number of Tier One customers to 5
• Celebrated 30 Years on Innovation including developing and commercializing a 3D transistor and a micro transmissive AMLCD
YOU PROBABLY HEARD…WEARABLES WILL BE BIG
51. Jupiter Research. 2. IMS Research. 3. Morgan Stanley 4. Cowen and Co.
2020$ 170BILLION
2016$6 BILLION2
2014$1.5 BILLION1
UNITS
248 2017MILLION3
154%Unit CAGR
2013- 20173
Consumer head-worn device (HMD) market segment expected to grow from 2013–2020
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WAIST
THE WEARABLE TRANSITION IS ALREADY UNDERWAY!
We are approaching a time where the human body can be retrofit in wearable technology from head-to-toe*.
:
*Source: WSJ. Where
to Wear Your Technology?
Torso to Toe 6
HEAD
TORSOWRIST
FEET
DOG
NECK
KOPIN’S WEARABLE EFFORTS START WITH REQUEST FROM DARPA
• Early 1990’s DARPA wants to provide the soldier with improved situational awareness
• Kopin develops the micro-AMLCD
• Kopin is the leader in US military pilot helmet HMD’s
• Why Kopin: Technology, quality (especially brightness), system know-how, dependable partner
CHDTSTOP OWLF35 Joint Strike Fighter
WHAT IS REQUIRED TO DEVELOP THE IDEAL INDUSTRIAL AND CONSUMER HMD?)
Reliable WiFi and BT connection
Reliable voice-control for hands-free use
Compact, low-power electronics Small display + optics
allow stylish design
Small, high-capacity battery
Applications SW
Attractive industrial design with system functionality --
Critical SW & FW
WHAT IS REQUIRED TO DEVELOP THE IDEAL INDUSTRIAL AND CONSUMER HMD?
Reliable WiFi and BT connection
Reliable voice-control for hands-free use
Compact, low-power electronics Small display + optics
allow stylish design
Small, high-capacity battery
Applications SW
Attractive industrial design with system functionality –
Critical SW & FW
THE MISSING PIECES
• 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
WE FOCUS IN FOUR CRITICAL AREAS : A FEW HIGHLIGHTS
TM
WE FOCUS IN FOUR CRITICAL AREAS
• Display modules
– Comprehensive line of modules for all HMD needs: Consumer & Enterprise applications
• Displays: Full range of sizes and resolutions (including world’s smallest)
– 0.20” – 0.88” 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
• Voice interface
• Power – battery
• System design
OPTICAL MODULES
60
Distance to Eye (MM)
40
20
Field of View
PRISM
PEARL
Augmented Reality and Virtual Reality – Matching Display and Optics
PUPIL
Virtual Reality
WE FOCUS IN FOUR CRITICAL AREAS
• Display modules
• Voice interface:– Kopin has developed a voice chip that provides up to almost 2X improvement
in human-to-machine (H2M) automatic speech recognition (ASR) rates.
– New privacy features for both speaking and listening
– Demonstrate the new chip at 2016 CES
• Power – battery
• System design
WE FOCUS IN FOUR CRITICAL AREAS
• System design
• Display modules
• Voice interface
• Power – battery:
– Kopin has entered a partnership with Hitachi Maxell for the optimal HMD battery
– 2-3X increased energy density for battery volume
• System design
A NEW BATTERY TECHNOLOGY FOR WEARABLES
• Kopin and Hitachi-Maxell have partnered to bring a new battery technology to market
• 80-200% more energy density compared to today’s Li-Ion cells in the market.
– Means longer lasting battery for any given size
– Means smaller and lighter weight for any given capacity
• Utilizes Lithium ion technology with new anode formulation
• Safety tested
• To be demonstrated at 2016 CES
WE FOCUS IN FOUR CRITICAL AREAS
• Display modules
• Voice interface
• Power – battery
• System design and integration:
–We do systems design and integration for major customers
• Electronics platforms and layout
• Core components: smallest size, lowest power, high performance
• Firmware, software & Integration
• Industrial designs
CONCEPT SYSTEMS
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Model # 100 101 102 103 104 105
Target Consumer Consumer Enterprise Enterprise Consumer Consumer
Optics N/A Pupil
In-Frame
Pearl
Off-frame
Pearl
Off-frame
Pupil
Off-frame
Pearl
Off-frame
Display N/A WQVGA 0.20” WQVGA 0.20” WQVGA 0.20” WQVGA 0.20” WQVGA 0.20”
User
Configurable
Display module
N/A fixed Swappable
Left/right eye
Adjusts 3 DOF
Swappable
Left/right eye
Adjusts 3 DOF
Adjusts 3 DOF Adjusts 1 DOF
Design Audio-only
interface with
superior noise-
cancel tech
Invisible optics
in modern
eyewear frame
design
Safety glasses
productivity
platform. Fits
over glasses.
Ergonomic
headset with for
long-term
enterprise use
Active-wear
gives you
relevant info on-
the-go
Voice enabled
connectivity for
everyday
entertainment
Display/Optics technology deliver high resolution and bright images in outdoor/indoor environments
Adaptive optics adjust to diverse ergonomic features
Bluetooth connectivity to Android Smart Devices.
Dual Non-occlusive Stereo Speakers
Support all hands free Voice Commander functions and features including phone, text messaging, internet search and
translation apps.
• Solos Smart Eyewear designed specifically for elite cyclists, trainers and coaches to maximize real-time data.
• Connects to mobile devices and training Apps
• Kopin “ingredients”: Pupil optics, Whisper chip, Hitachi-Maxell battery
• Announced at InterBike show in September – Very well received.
• Will be shown at CES 2016
Consumer
•Intel /Recon
•Tier one expected to
launch product at 2016
CES
Military
•Rockwell Collins
•Elbit
•Raytheon
•DRS
•BAE
Enterprise
•Motorola
•Fujitsu
The leader in Wearable Headsets – Design-in results
CONDENSED BALANCE SHEET
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• No long-term debt
• $15 Million Note Receivable due in January 2016
September 26, 2015 December 27, 2014
Assets
Cash and marketable securities $ 87,339,457 $ 90,858,936
Total current assets 108,405,724 99,924,620
Equipment and improvements, net 3,641,729 4,589,421
Other assets 2,829,048 3,494,038
Note receivable - 14,933,335
Total assets $ 114,876,501 $ 122,941,414
Liabilities and stockholders equity
Total current liabilities 12,093,993 13,242,924
ARO 304,183 311,187
Total stockholders' equity 102,478,325 109,387,303
Total liabilities and stockholders' equity $ 114,876,501 $ 122,941,414
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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
TechnologyWe understand the complete wearable headset system requirements
SUMMARYA FOCUS ON WEARABLES
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
We Expect Between 5 and 10 Companies to display Wearable Products at CES in January 2016 based on our technologies
Customers
Continue to enhance our IP portfolio on key technologies and concept system designs
At CES 2016 We expect to demonstrate our latest technologies including our Whisper Speech Enhancement Chip, SiMax Battery, and Vista lensInnovation