SidotiConference2019

FORWARD LOOKING STATEMENTS AND RISK FACTORS

• 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 that refer to expectations, projections, our stock value multiple, the value of head-worn computing or our 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 that 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.

• The following factors, among others, could cause actual results to differ materially from those set forth in this presentation:

– Our ability to continue as a going concern, as noted in the report from our independent registered public accounting firm on our financial statements as of and for the fiscal year ended December 29, 2018

– The market segment for our Wearable products may not develop or may take longer to develop than we anticipate, which may impact our ability to grow revenues.

– Our revenues and cash flows could be negatively affected if sales of our Display products for military applications significantly decline.

– Our ability to manufacture and distribute our Display products would be severely limited if the foundries that we rely on to manufacture integrated circuits for our Display products fail to provide those services.

– We depend on third parties to provide integrated circuit chip sets and critical raw materials for use with our headset systems and components and we periodically receive “end of life” notices from suppliers that they will no longer be providing a raw material.

– The markets in which we operate are highly competitive and rapidly changing and we may be unable to compete successfully. There are a number of companies that develop or may develop products that compete in our targeted markets.

– Disruptions of our production of our Display products would adversely affect our operating results.

– A disruption to our information technology systems could significantly impact our operations revenue and profitability.

– Our headset systems are dependent on software that we have limited experience in developing, marketing or licensing.

– Our headset systems use software that we license from other companies ("Licensors") and require us to access the Licensor's data centers, and interruptions or delays in service from data center hosting facilities could impair our customer's products.

– We may not be successful in protecting our intellectual property and proprietary rights and we may incur substantial costs in defending our intellectual property.

– Our customers who purchase display products for military applications typically incorporate our products into their products that are sold to the U.S. government under contracts. U.S. government contracts generally are not fully funded at inception and may be terminated or modified prior to completion, which could adversely affect our business.

– Most of our military sales are on a fixed-price basis, which could subject us to losses if there are cost overruns.

– We generally do not have long-term contracts with our customers, which makes forecasting our revenues and operating results difficult.

– A decline in the U.S. government defense budget, changes in spending or budgetary priorities, prolonged U.S. government shutdown or delays in contract awards may significantly and adversely affect our future revenues, cash flow and financial results.

• A more complete description of these risks and uncertainties can be found in the filings of the Company with the U.S. Securities and Exchange Commission, including in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2018. We undertake no obligation to update any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forwarding-looking statements.

2

INVESTMENT HIGHLIGHTS

3*Source: Gartner Research

Leading Provider of Wearable Technologies, Solutions and Components for

Consumer, Enterprise/Industrial and Military Markets

At Inflection point for growth in the Consumer and Enterprise Wearables

Market with Underlying Growth in the Military/Industrial Markets

Tier 1 Customers and Partnerships

Rich IP Portfolio

• Comprehensive portfolio of micro-display technologies (LCD, LCOS and OLED)

• Leading portfolio of complete wearable headset solutions

• Whisper® speech enhancement technology

• Differentiated, patented technologies available for broad commercialization

• No.1 micro-display player in Military and Industrial verticals with sustainable growth from strong balance of

R&D and production programs

• Wearables market is at a growth inflection point with over $24 billion TAM in 2017 and projected to grow to

over $84 billion in 2022*

• Customers: Google, Lenovo, Lockheed Martin, Raytheon, Rockwell Collins, 3M Scott

• Strategic Partnership: BOE, Goertek

• 300 patents and patent applications world wide with focus on wearable IP and critical components enabling

wearable solutions

MOBILE VR, AR AND WEARABLE HEADSET TECHNOLOGY : KOPIN’s 30 Year Quest

4

1990 1995 2000 2005 2010 2015

Kopin

Transmissive Display

Golden-i Headset

Computer

Video Eyewear

Electronic

Viewfinder

Mono SXGA

0.97”

Funding for

microdisplays

Mono QVGA

0.24”

Electronic

Viewfinder

Color VGA

0.44”Night Vision

Goggle

Thermal Weapon

Sights

Forte Virtual

Reality

Lightning OLED

Solos

Smart Glasses

Shipped over 35M Displays

Golden-I Infinity

2018

KOPIN TODAY - INTELLECTUAL PROPERTY PORTFOLIO

• More than 300 patents and pending

• Most of the patents are related to wearables

• Licensed IP to some companies• Royalties

• Component sales

• Equity stake

5

6

KOPIN TODAY- WEARABLE PRODUCT PORTFOLIO

Ultra-smallDisplays

Modules with Innovative Optics

Speech Enhancement

System Reference Designs

Consumer Military

PRODUCTS OVERVIEW: CUSTOMER PORTFOLIO

7

Enterprise

WEARABLES: GROWTH OPPORTUNITIES

Wearables TAM ($B)

$24.8

$84.8

2017 2022

CAGR: 28%

Head-Mounted ($B) Hearables ($B)

$3.8

$25.3

2018 2022

CAGR:46%

$3.7

$23.7

2017 2022

CAGR: 45%

Wearables Market: $24.8B (2017) and projected to grow to $84.8B in 2022*

• Head-Mounted Displays: $3.7B TAM in 2017 and estimated $23.7B in 2022*

• Hearables: $3.8B TAM in 2017 and estimated to grow to $25.3B in 2022*

*Source: Gartner Research

Note: Total Wearables Market also includes smart clothing, smartwatches and wristbands

Kopin Target Markets

8

REVENUE DRIVERS - MILITARY

9

F-35 Strike Fighter Program – In Production

• Projects all mission information on helmet’s visor

‒ Airspeed, heading, altitude, targeting information and warnings

• Potential $100M revenue opportunity over the next 10 years

U.S. Army FWS Program

• FWS Individual (FWS-I) Selected by one of two prime contractors to provide the

eyepiece assemblies for the next generation of thermal sights – In Production

• FWS Crew Served (FWS-CS) Engineering and Development Contract awarded in 2016,

Prototype Testing into 2019, then production scheduled in 2020

• Two FWS Programs potential $150M Kopin revenue opportunity over the next 10 years

• TWS-International development, production in early 2020 is potential $100M Kopin

revenue opportunity over the next 10 years

Armored Vehicle – In Development

• First design win in armored vehicles

• Rollout $80M to $100M revenue opportunity over the next 10 years

• In development through 2020, then volume production

REVENUE DRIVERS – INDUSTRIAL & ENTERPRISE

10

Vuzix M300 Golden-i® Infinity

Realwear hmt-1® 3M Scott Sight®

Industrial, Enterprise & Pro-sumer

• Vuzix, Realwear, Lenovo New Vision, Others

• Golden-i Infinity

• 3-D metrology

• Kopin shipped approximately 30,000 units in 2018

Safety

• 3M Scott Safety Firemen Helmets – in production

• In development with Chinese & European Helmet

Manufacturers

REVENUE DRIVERS IN CONSUMERSTRATEGIC ALLIANCES IN AR AND VR

11

OLED

Kopin

BOE/Other

Goertek

Tier 1 Global Tech

Co.

• BOE is a China-based company engaged

in research, development, manufacture of

display products and components.

• We are currently working with a 2nd China-

based OLED technology developer and

display manufacturer.

• Goertek is a China-based global

technology company that designs and

manufactures a range of customer

electronic products.

• We are working with a Tier 1 Global

Technology Company who manufacturers

and sells a range of consumer electronic

products.

Friend/FOE

875m

230.63° 37 23.516 122 02.625

WHY DO CUSTOMERS CHOOSE KOPIN – WE SOLVE PROBLEMS LIKE THIS

Generic

Display Engine

Retrofit

Revised

Optics

+

GPS & Compass

=

Maintain fixed reticle

High Resolution

DVO always available

DVO stays on weapon

Retains boresight

Visual and Sensor Fusion

SWIR, Thermal, I2

Target ID

Rapid Targeting

> First shot accuracy

Active Target reticleWind & Range

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AUGMENTED & VIRTUAL REALITY DISPLAY MODULES

13

Augmented Reality (AR)

• Transmissive AMLCDs for AR

‒ 0.20” – .97” diagonal

‒ QVGA – SXGA

• Backlights: Super-high brightness to compete with the sun, 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

Virtual Reality (VR)

• 2k by 2K OLED (Lightning™) for VR

‒ 1” diagonal

‒ 2048 x 2048 resolution (4 million pixels)

‒ 120 Hz with low power consumption,

‒ Pancake™ optics (< 20 mm thick) allows much smaller and thinner

mobile VR systems

KOPIN LCD (CYBERDISPLAY) FOR AR

Si IC LCD

LCD High Brightness for Out Door Applications

CyberDisplay

LensCyber Display

Virtual Image

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KOPIN OLED (LIGHTNING™ 2K) FOR VR

15

• CES Innovation Award in January 2017

• OLED on Silicon Lightning™ Architecture provides the highest resolution, fastest speed, and lowest power

• Kopin has a unique, patented architecture (10 patents pending)

• Fabless manufacturing model for rapid volume ramp

• 3X pixels versus existing Mobile VR OLEDs for natural, smooth images without the screen door effect

Resolution 2048 x RGB x 2048

Color Dot Pitch 2.88 x 8.64 um

Image Diagonal 0.99 in

Pixel Density 2,940 pixels per inch

Frame Rate Up to 120 Hz

Video Input 25-pair mini-LVDS

Process 1.2V / 5V, 0.11 um

KOPIN OLED FOR VR

3X pixels versus

existing Mobile VR

OLEDs for natural,

smooth images without

the screen door effect

16

120 Hz Frame

Rate To Help

Avoid Motion

Artifacts That

Can Cause

Dizziness or

Nausea

60 Hz VR = Motion Blur Artifacts

120 Hz frame rate = No Motion Blur

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LIGHTNING 2K OLED

18

Kopin, one that’s not only interesting but potentially

extremely pertinent to next generation VR hardware.

Seeing is believing here, and I quite literally could not see

anything resembling aliasing on the display even with a 10x

loupe to try and look more closely at the display

The Technology That May Drive The Next Generation of

Phones and Mobile Devices…the most advanced display I

saw came from Kopin, which showed a 1-inch OLED panel with

a 2048 by 2048 resolution and a 120 Hz frame rate

2048×2048 and a fast 120 Hz frame rate - firsts for the VR

industry and will raise the bar on performance… Latency is

also an astoundingly low 10 microseconds

Kopin Debuts Lightning OLED Microdisplay With 2k x 2k

Resolution for Mobile VR New High-Speed 4 Million Pixel

Display Wins CES Innovation Award for Mobile Virtual

Reality.

19

40

VR AND AR OPTICAL MODULES

60

Distance to Eye (MM)

20

Field of View

PRISM

PEARL

Augmented Reality and Virtual Reality – Matching Display and Optics

PUPIL

Virtual RealityPANCAKE

PANTILE80

100

19

KOPIN WHISPER CHIP: A DIFFERENT APPROACHTO AUDIO

Specifically designed for Wearables

• No distortion to voice signal – natural voice

• Adaptive voice detection – “listening” adjusts

to environmental noise level

• Lowest power – less than 12 mW

• Only 16MHz clock frequency

• Replaces CODEC – All digital

• “Configurable” for your device

• Digital microphone in (up to 4)

• Digital speaker out (2)

• Compact size (4x4 mm)

BU

S

I2S

to

external

audio to host

ARM

Cortex-M0

I2C UART

DSP

Co-Processor

4

Digital

MEMS Mic

Clock

Manager

GPIOPDM PWM

ROM RAM

Main clock

SPI

22

PLL

20

VOICE INTERFACE:– Kopin has developed the Whisper Chip™ that provides up to almost 2X

improvement in human-to-machine (H2M) automatic speech recognition (ASR) rates.

21

FINANCIAL HIGHLIGHTS

BALANCE SHEET HIGHLIGHTS

23

December 31, 2018

Cash and marketable securities 37.2(1)

A/R and inventory 7.9

Contract assets and unbilled AR 3.1

Other current assets 1.2

PP&E 2.9

Goodwill & intangibles 0.3

Other assets 7.2

Total assets 59.9

Current liabilities 10.4

Other 1.5

Equity 48.0 (1)

Total liabilities and equity 59.9

($ in millions)

(1) Does not reflect the equity raise of 7.2 million shares for net proceeds of $7.5 million

INCOME STATEMENT HIGHLIGHTS

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2016 2017 2018

Revenue $22.6 $27.8 $24.5

Gross profit 3.3 6.8 3.4

R&D 16.0 18.9 17.4

SG&A 17.0 20.5 27.2

Other operating expense (income) (7.7) 0.6 3.6

Operating loss (20.5) (30.3) (39.7)

Non-operating income 0.5 2.0 4.2

Net loss (23.0) (25.4) (35.5)

Net loss per share (basic & diluted) $(0.37) $(0.36) $(0.49)

($ in millions, except per share amounts)

RECENT HIGHLIGHTS

• Endopodium to Develop High Resolution Wearable Displays for Medical and Surgical

Applications: develop and commercialize next generation of head mounted display

system (HMD) designed for advanced medical and surgical applications

• TrainingPeaks: Kopin teaming up with TrainingPeaks LLC., to support TrainingPeaks'

Structured Workouts.

• Agreement with JUTZE Intelligence Technology Co., Ltd. (JUTZE) : Kopin subsidiary

Forth Dimension Displays to provide displays for JUTZE Mirage series of 3D SPI

(Solder Paste Inspection) equipment.

• Agreement with Skully Technologies: SKULLY will incorporated Kopin’s WQVGA

Microdisplay and A230 driver IC in the SKULLY FENIX AR motorcycle helmet.

• 5,000 Units Shipment to Tier One Customer: The shipment of 5,000 display modules to

a Tier One US internet company for its soon-to-launch next generation augmented

reality (AR) smart glasses

• Kopin’s Golden-i Infinity Wearable Evaluation Program Commences: Approximately 100

Organizations Have Signed up to Pilot Test the Unique Smart Glass Platform that

combines Kopin’s industry leading display and Whisper® voice extraction technologies

to provide a smart screen that clips on to safety glasses, bump caps or hardhat.

25

INVESTMENT HIGHLIGHTS

26*Source: Gartner Research

Leading Provider of Wearable Technologies, Solutions and Components for

Consumer, Enterprise/Industrial and Military Markets

At Inflection point for growth in the Consumer and Enterprise Wearables

Market with Underlying Growth in the Military/Industrial Markets

Tier 1 Customers and Partnerships

Rich IP Portfolio

• Comprehensive portfolio of micro-display technologies (LCD, LCOS and OLED)

• Leading portfolio of complete wearable headset solutions

• Whisper® speech enhancement technology

• Differentiated, patented technologies available for broad commercialization

• No.1 micro-display player in Military and Industrial verticals with sustainable growth from strong balance of

R&D and production programs

• Wearables market is at a growth inflection point with over $24 billion TAM in 2017 and projected to grow to

over $84 billion in 2022*

• Customers: Google, Lenovo, Lockheed Martin, Raytheon, Rockwell Collins, 3M Scott

• Strategic Partnership: BOE, Goertek

• 300 patents and patent applications world wide with focus on wearable IP and critical components enabling

wearable solutions