WESTBOROUGH, MA—Kopin Corporation (NASDAQ:KOPN), a semiconductor manufacturer, disclosed on Monday that it has been warned of a potential delisting from the Nasdaq Capital Market due to its stock price falling below the required minimum. The company's share price has not met the Nasdaq's $1.00 minimum bid price requirement for the past 30 consecutive business days.
The notice from Nasdaq does not immediately affect Kopin's listing status. The company has until April 14, 2025, to regain compliance with the minimum bid price rule. Compliance can be achieved if the company's stock closes at $1.00 or higher for at least ten consecutive business days.
Kopin may be granted an additional 180 days to meet the requirement if it fails to do so by the initial deadline. To qualify for this extension, the company must fulfill all other Nasdaq Capital Market initial listing standards, except for the bid price requirement, and may need to undertake measures such as a reverse stock split.
Should Kopin not achieve compliance within the allotted timeframe and is ineligible for an extension, Nasdaq will notify the company of its securities being delisted. Kopin would then have the option to appeal the decision to a Nasdaq Hearings Panel.
In other recent news, Kopin Corporation has been making significant strides in its operations. The company has secured a contract for the development of its Night HUD technology, aimed at enhancing night vision capabilities for military operations. In addition, Kopin has received its first production order for the SXGA-R15, a new microdisplay system, from Mirtec Co. Ltd., scheduled for delivery in 2025.
Furthermore, Kopin has been awarded a contract to advance its augmented reality Head-Up Display (HUD) technology for military applications. The company also secured a $1.3 million order for its Emerald microdisplay modules, which are expected to contribute to revenue growth for fiscal year 2025.
On the financial front, Kopin's Q1 2024 results showed a 7% decrease in total revenues, amounting to $10 million, and a net loss of $32.5 million. Despite this, Kopin has a backlog exceeding $55 million for 2024 and beyond. Lake Street Capital Markets maintains their Buy rating on the company.
Additionally, the company has announced a public offering of 37,550,000 shares of common stock and pre-funded warrants, aiming to raise approximately $27 million. These are the recent developments at Kopin Corporation.
InvestingPro Insights
Recent data from InvestingPro sheds light on Kopin Corporation's financial situation, providing context to the company's Nasdaq delisting warning. With a market capitalization of $119.96 million, Kopin's stock has experienced significant volatility, as highlighted by one of the InvestingPro Tips. This volatility is evident in the stock's performance, with a 21.13% decline over the past month and a substantial 47.5% drop over the last six months.
The company's financial health presents a mixed picture. While Kopin holds more cash than debt on its balance sheet, it also faces challenges with weak gross profit margins and short-term obligations exceeding liquid assets. These factors may contribute to investor uncertainty, potentially impacting the stock price.
InvestingPro Tips also indicate that analysts do not anticipate Kopin to be profitable this year, which aligns with the company's reported operating income margin of -54.91% for the last twelve months. This financial performance may be a contributing factor to the stock's struggle to maintain the Nasdaq's minimum bid price requirement.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Kopin Corporation, providing a deeper understanding of the company's financial position and market performance.
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