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RELATED PARTY TRANSACTIONS | 6 Months Ended
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Jun. 28, 2025
Related Party Transactions [Abstract] |
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS The Company may from time to time enter into agreements with stockholders, affiliates and other companies engaged in certain aspects of the display, electronics, optical and software industries as part of its 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 to enhance its product offering. On September 30, 2019, the Company entered into an Asset Purchase Agreement (the “Solos Purchase Agreement”) with Solos Technology Limited (“Solos Technology”). Pursuant to the Solos Purchase Agreement, the Company sold and licensed to Solos Technology certain assets of its SolosTM (“Solos”) product line and WhisperTM Audio (“Whisper”) technology. As consideration for the transaction the Company received 1,172,000 common shares representing a 20.0% equity stake in Solos Technology’s parent company, Solos Incorporation (“Solos Inc.”). As of June 28, 2025 and December 28, 2024, the Company had $0 and less than $30,000, respectively, of receivables outstanding from Solos Technology. As of December 28, 2024, the Company’s former Chairman and founder of Solos Inc., Dr. John C.C. Fan, has an investment in Solos Inc. 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 28, 2025 and December 28, 2024. On January 5, 2023, the Company entered into a Technology License Agreement and an Asset Purchase Agreement (the “LST Agreements”) with Lightning Silicon Technology, Inc (“LST”). Pursuant to the LST Agreements, the Company issued a license to LST for certain technology associated with our Organic Light Emitting Technology, transferred in-process development contracts with two customers and accounts receivables that the Company had previously determined were not collectible. As consideration for the transaction, the Company received 18,000,000 common shares representing a 20.0% equity stake in LST. The Technology License agreement provides for Kopin to transfer certain patents to Lightning Silicon if they achieve certain milestones, however upon transfer Kopin will receive a license to the technology. The Company also receives a royalty based on unit sales of products that utilize the technology licensed. As of June 28, 2025, the Company’s former Chairman and founder of Lightning Silicon Technology, Inc., Dr. John C.C. Fan, has an individual ownership interest of Lightning Silicon Technology Inc. On September 5, 2022, John C.C. Fan, the Company’s then President and Chief Executive Officer and Chairman of the Company’s Board of Directors, notified the Company of his resignation as President and CEO effective September 6, 2022. Under the terms of his previous employment agreement Dr. Fan received $750,000 of severance payments for the fiscal year 2024 and 2023. In addition, Dr. Fan has received $40,000 for medical benefits for each fiscal year since 2023, and he (or his spouse) will receive $40,000 through 2032. During the three and six months ended June 28, 2025 and June 29, 2024, the Company had the following transactions with related parties: SCHEDULE OF REVENUE WITH RELATED PARTIES
|  | Three Months Ended |
|  | June 28, 2025 |  |  | June 29, 2024 |
|  | Sales |  |  | Purchases |  |  | Sales |  |  | Purchases |
RealWear, Inc. |  | $ | 48,522 |  |  | $ | — |  |  | $ | 109,830 |  |  | $ | 10,550 |
HMDmd, Inc. |  |  | 251,678 |  |  |  | — |  |  |  | 122,259 |  |  |  | — |
Vuzix Corp |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 4,955 |
Lightning Silicon Technology, Inc. |  |  | — |  |  |  | 12,950 |  |  |  | 2,234 |  |  |  | 81,800 |
|  | $ | 300,200 |  |  | $ | 12,950 |  |  | $ | 234,323 |  |  | $ | 97,305 |
|  | Six Months Ended |
|  | June 28, 2025 |  |  | June 29, 2024 |
|  | Sales |  |  | Purchases |  |  | Sales |  |  | Purchases |
RealWear, Inc. |  | $ | 120,462 |  |  | $ | — |  |  | $ | 217,140 |  |  | $ | 10,550 |
HMDmd, Inc. |  |  | 699,585 |  |  |  | — |  |  |  | 222,259 |  |  |  | — |
Vuzix Corp |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 11,905 |
Lightning Silicon Technology, Inc. |  |  | — |  |  |  | 51,800 |  |  |  | 2,234 |  |  |  | 164,200 |
|  | $ | 820,047 |  |  | $ | 51,800 |  |  | $ | 441,633 |  |  | $ | 186,655 |
At June 28, 2025 and December 28, 2024, the Company had the following receivables and payables with related parties:
|  | June 28, 2025 |  |  | December 28, 2024 |
|  | Receivables |  |  | Payables |  |  | Receivables |  |  | Payables |
RealWear, Inc. |  | $ | 120,462 |  |  | $ | — |  |  | $ | 94,884 |  |  | $ | — |
HMDmd, Inc. |  |  | 407,945 |  |  |  | — |  |  |  | 279,150 |  |  |  | — |
Solos Technology |  |  | — |  |  |  | — |  |  |  | 29,132 |  |  |  | — |
Lightning Silicon Technology, Inc. |  |  | — |  |  |  | — |  |  |  | 1,228 |  |  |  | 72,500 |
|  | $ | 528,407 |  |  | $ | — |  |  | $ | 404,394 |  |  | $ | 72,500 |

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-5 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-6 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477968/946-235-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 235 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477968/946-235-50-2 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(g)(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(c)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 220 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.6-07(2)(e)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479134/946-220-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/850/tableOfContent Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-6 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-1 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 850 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147483326/850-10-50-1 + Details
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