4. JOINT DEVELOPMENT AND LICENSE AGREEMENT WITH FABRIC.AI

On April 27, 2026, the Company entered into a Joint Development & License Agreement (“JDLA”) with Fabric.AI, Inc. (formerly StableX Technologies, Inc.) (“Fabric AI”), under which the parties agreed to jointly develop and commercialize certain Graphics Processing Unit to Graphics Processing Unit “ GPU to GPU” connectivity technologies. Fabric.AI is obligated to fund up to $15 million of development activities through successful demonstration, with additional production related funding subject to further negotiation. The agreement provides for joint ownership of Project Technology and includes the issuance of Convertible Preferred Stock to Kopin designed to give Kopin approximately 19.99% of Fabric.AI’s outstanding common stock.

On the same date, the Company also executed a commercial supply agreement with Fabric.AI. Under this agreement, Kopin will manufacture and supply products incorporating the jointly developed project technology, and Fabric.AI will act as the exclusive commercial market seller for certain markets, not including certain government and military markets. The agreement outlines exclusivity terms, supply obligations, and a process for establishing manufacturing ramp up plans, pricing, and forecasting.

As of June 27, 2026, total committed funding received by Kopin Corporation from Fabric.AI under the JDLA was $15 million, of which $5 million was received during the three and six months ended June 27, 2026. In addition, the Fabric.AI Convertible Preferred Stock issued to the Company on April 27, 2026 was recorded as an equity investment at fair value in the amount of $0.7 million (refer to Note 5 for further information). During the three and six months ended June 27, 2026, $0.5 million was recognized as Research and development revenues in the Condensed Consolidated Statements of Operations. As of June 27, 2026, $5.2 million was included in Contract liabilities in the Condensed Consolidated Balance Sheets consisting of advance payments and billings in excess of revenue recognized for the contract.