Kopin Corporation (NASDAQ:KOPN), a leading company in the semiconductors and related devices industry with a market capitalization of $200 million, has disclosed new compensatory arrangements for its top executives, according to a recent SEC filing.
According to InvestingPro data, the company's stock has shown strong momentum with a 64% return over the past six months, though price movements remain notably volatile. On January 3, 2025, Kopin's CEO and Chairman, Michael Murray, received a significant award of 408,634 restricted stock units (RSUs) and 591,366 stock options with a strike price of $1.76, under the company's 2020 Equity Incentive Plan. The strike price represents a 34% premium to the current trading price of $1.31.
The RSUs are set to vest three years from the grant date, while the options will vest quarterly over four years, contingent upon Murray's continued service and adherence to his employment agreement. Additionally, Murray's salary for fiscal year 2025 has been raised by three percent to $508,850, with his annual bonus potentially reaching up to 150% of his base salary.
In parallel, Paul Baker, the Chief Operating Officer, and Richard Sneider were granted 146,350 and 136,360 RSUs respectively. These grants are tied to the achievement of specific revenue, operating income, and individual performance goals for the fiscal year 2025. The RSUs are subject to the terms of Kopin's 2020 Equity Incentive Plan. Baker's and Sneider's salaries for the fiscal year 2025 have been set at $360,900 and $362,000, respectively.
The filing also mentions that these compensatory arrangements include a double-trigger change-in-control provision, which is designed to protect the executives in the event of a significant corporate transaction. InvestingPro analysis reveals that while Kopin maintains a healthy balance sheet with more cash than debt, the company faces challenges with weak gross profit margins of 9.8% and negative EBITDA of -$22.3 million in the last twelve months. For deeper insights into Kopin's financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Kopin Corporation has been making significant strides in its operations. In the third quarter of 2024, the company reported a substantial 26% year-over-year increase in revenue to $13.3 million, primarily driven by a 109% surge in defense product revenues. Despite this, Kopin reported a net loss of $3.5 million for the quarter, an increase from the previous year's $2.5 million, due to higher legal fees and other expenditures.
On the analyst front, Canaccord Genuity initiated coverage on Kopin with a Buy rating, suggesting potential for growth due to the company's defense-related projects and expansion into the medical and consumer markets. However, the firm also pointed out several risks that could impact Kopin's trajectory, including potential difficulties in converting opportunities into actual orders and the outcome of legal issues with BlueRadios.
In other company news, Kopin Corporation has appointed BDO USA, P.C. as its new independent registered public accounting firm for the fiscal year ending December 28, 2024. This change followed the dismissal of the previous auditor, RSM US LLP, which was stated to be unrelated to any disagreements on accounting principles, financial statement disclosure, or auditing scope or procedure.
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