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RELATED PARTY TRANSACTIONS
 6 Months Ended
Jun. 27, 2026
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

18. RELATED PARTY TRANSACTIONS

 

The Company may from time to time enter into agreements with shareholders, affiliates and other companies engaged in certain aspects of the display, electronics, optical and software industries as part of the Company’s business strategy. In addition, the wearable computing product market is relatively new and there may be other technologies the Company needs to purchase from affiliates in order to enhance its product offering.

 

The Company and RealWear have entered into agreements where the Company have agreed to supply display modules to RealWear, and license certain intellectual property to RealWear. In conjunction with these agreements the Company received an equity interest in RealWear, one-time $1.5 million license fees, paid as of December 2019, and will receive royalties of future product sales. See Note 5 for a description of the Company’s investments in RealWear. As of June 27, 2026, the Company owned approximately 2.8% of RealWear.

 

The Company has warrants to purchase shares of Preferred Stock of HMDmd. The fair value of the investment was determined to be $0.3 million as of June 27, 2026.

 

On October 16, 2025, Theon became a related party of the Company following its equity investment in Kopin Europe Limited (“Kopin Europe”), the Company’s majority-owned subsidiary, pursuant to a Subscription Agreement under which Theon subscribed for 21,281,350 ordinary shares of Kopin Europe for $8.0 million, resulting in 49% ownership of Kopin Europe.

 

 

Concurrent with the Subscription Agreement, Kopin, Kopin Europe, and Theon entered into a License and Collaboration Agreement (“LCA”), together with associated side letters, establishing a framework for joint development and commercialization of multiple product categories, including the DarkWave module, DarkWave subsystem, Theon End Product, certain MicroLED displays, and OLED displays.

 

The Company and Fabric.AI, Inc entered in a JDLA on April 27, 2026. The parties agreed to jointly develop and commercialize certain GPU to GPU connectivity technologies. The agreement provides for joint ownership of Project Technology. The Company also maintains an 19.99% benefical ownership through its equity investment in Fabric.AI Series J Preferred Stock. Fabric.AI became a related party of the Company following its equity investment in Fabric.AI and the operational involvement contemplated in the JDLA.

 

During the three and six months ended June 27, 2026 and June 28, 2025, the Company had the following transactions with related parties:

 

   Three Months Ended   Three Months Ended 
   June 27, 2026   June 28, 2025 
   Revenue   Purchases   Revenue   Purchases 
RealWear, Inc.  $55,998   $—   $48,522   $— 
HMDmd, Inc.   431,387    —    251,678    — 
Lightning Silicon Technology, Inc.   —    25,000    —    12,950 
Theon International PlC   271,478    4    —    — 
Fabric.AI   509,761    —    —    — 
   $1,268,624   $25,004   $300,200   $12,950 

 

   Six Months Ended   Six Months Ended 
   June 27, 2026   June 28, 2025 
   Revenue   Purchases   Revenue   Purchases 
RealWear, Inc.  $119,268   $—   $120,462   $— 
HMDmd, Inc.   448,226    —    699,585    — 
Lightning Silicon Technology, Inc.   1,658    25,000    —    51,800 
Theon International PlC   601,089    4    —    — 
Fabric.AI   509,761    —    —    — 
   $1,680,002   $25,004   $820,047   $51,800 

 

At June 27, 2026 and December 27, 2025, the Company had the following receivables and payables with related parties:

 

   June 27, 2026   December 27, 2025 
   Receivables   Payables   Receivables   Payables 
RealWear, Inc.  $185,388   $—   $96,120   $— 
HMDmd, Inc.   271,438    —    —    — 
Kopin Europe Ltd.   4,506,735    —    5,057,974    — 
Theon International PlC   400,000    —    300,000    — 
   $5,363,561   $—   $5,454,094   $— 

 

On June 10, 2026, Kopin entered into a Share Repurchase Agreement with Lightning Silicon Technology, Inc. (“LST”) and LS Assets, Inc. (“LSA”). Under the Share Repurchase Agreement, LST repurchased 18,000,000 shares of its Series Seed-1 Preferred Stock from Kopin for $1.00, and LSA repurchased 18,000,000 shares of its common stock from Kopin for $1.00. All such shares were cancelled and retired as of June 10, 2026. The Parties exchanged mutual releases of all claims relating to Kopin’s prior shareholdings in LST and LSA. As a result of the repurchases, Kopin no longer holds any equity interest in either LST or LSA.