Morning, everybody, and welcome to the 2024 Micro Cap Rodeo, brought to you by The Money Channel and sponsored by Lucosky Brookman. I'm used to doing this in front of about nineteen thousand people in Madison Square Garden, so it's a bit of an adjustment today. I'm John Heffernan. I work in the sports world here in New York City, and I get asked to do these things from time to time. So for our viewers at home, or as I like to say in the boxing ring at Madison Square Garden, and for those in attendance and the millions listening around the world, welcome to the 2024 Micro Cap Rodeo. Folks, it's a great opportunity today for investors to get introduced to all of our fine array of CEOs that are here, throughout the day today here at Sparks Steak House in Midtown Manhattan. So that's about it for me. Without further ado, first introduction today from Kopin Corporation, based up in Massachusetts. I'd like to welcome the CEO, Mr. Michael Murray. Michael? I'm not sure how I'm supposed to follow that exactly, but I'll give it my best shot. I do wanna just make sure that you all realize that I do think the Bruins will finish ahead of the Rangers this year. So I just wanna make sure that I give a shout-out to my boy Swayman, that was signed recently. So there you go. All right, let's get started. I just flew in from AUSA, so I'm a little punchy, so bear with me. We'll walk through this, and we'll talk about what's going on with Kopin. We've got some exciting news to share with you this morning. So, with no further ado, we'll get started. I will have some forward-looking statements during the presentation today, so please bear that in mind. So a couple of things that I wanna update you on. We recently were presenting at AUSA. We've announced several new products with a company called Wilcox, as well as a company called QinetiQ. You can go see those products on AUSA site or on social media, but tremendous amount of new customer activity for Kopin. So a few things also I wanted to mention. In the show, we were aware of a number of new AR/VR applications that are coming our way. We're very well positioned to receive those opportunities and win them. So we have a tremendous tier one growing customer base, as well as a significant amount of new opportunities. As I said recently, our order pipeline has grown well beyond $55 million, and we expect our opportunity pipeline to continue to grow to, well over $500 million. So we're headquartered in Westborough, Massachusetts. We have our LCD fabrication plant there. We also build our thermal weapon sight products out of that facility, and we have a facility in Reston, Virginia. Our Dalgety Bay, Scotland, location has a liquid crystal on silicon manufacturing plant there, and we look forward to also doing some back-end work for our OLED capability in Dalgety Bay, Scotland, as well. Okay, this is a bit of a busy slide because we've been busy. If you follow us on socials or you look through our website, you'll notice that we've been receiving a significant amount of new awards. We've received a Next Generation Short Range Interceptor award from Lockheed Martin. This is a research and development contract. The reason I'm calling it out is it's very important to note that these launchers that we'll be developing the eyepieces for and the weapon sight for, they basically go hand in hand, one-to-one per Stinger missile. They're going to develop about 100,000 Stinger missiles over the course of the next 10 years, therefore, 100,000 new weapon sights for Kopin. So that is a research and development project that we're working on right now with Lockheed Martin, and it'll go into production, we believe, in 2026, 2027. The other one that I wanted to call out briefly is, we also have a new order for a firefighter mask. That product is something that we've been working on for several years. We're now starting to see that market start to refresh their technology as well, and that is with a tier one OEM. Secondly, we've also been very successful in new research and development awards with the government, specifically the United States Department of Defense. We did receive a Navy Small Business Innovation Award. We also have put in for two new innovation rewards, awards, I should say, for our AI capability, which I'm going to talk about in the next couple of slides. Lastly, on this slide, I just wanted to call out and highlight the changes in governance at Kopin. We've been working very hard to revamp the board and bring in some of the top people in the industry. I'm very pleased to report that the board has joined... Pardon me. We've also brought in someone by the name of Paul Walsh to the board recently. Paul joins us from Silicon Labs. He was the former CFO of Allegro Microsystems. So he joined the board very recently. We also brought in Marnie Seif. Marnie was the Chief General Counsel at Analog Devices for many years. She and I worked together and acquired Hittite Microwave back I think in two thousand and fourteen. So she joins the board as well, and we continue to look for new board members as we round out the board and the governance of Kopin. Okay, I'm gonna talk a little bit about our microdisplay technology. I'm not gonna go into too much detail. For those of you that haven't seen what a microdisplay looks like, if you have an O-... They're very difficult to manufacture. If you've been following what's going on with Apple and Sony, even Sony is struggling to make these in volume. They're a very difficult technology to make. We are the only U.S.-owned company that makes four different types of microdisplays. We're also the only U.S. company that has a micro LED in production. We demonstrated the micro LED, which is the vanguard of technology, yesterday at AUSA. It's a monochrome device, and it has the brightness of about one point eight million microcandelas. It can go up to three million microcandelas of brightness. To give you a sense, your average cell phone runs around nine thousand, so three million is a tremendous amount of light. If I put it on here in this room, it would light up the room and probably blind half of you. That's how bright this is. The reason why it's important, the same amount of brightness for the same amount of voltage and power consumption is truly revolutionary, and Kopin is the only U.S. company that has one. Furthermore, we have a full line of OLED displays. We currently deposit that OLED with a partner in China. I've been very clear that we've been moving that deposition capability into a new deposition partner in Europe that's U.S. DoD approved. We're pleased to report that that is ongoing, and we now have received multiple new products from that supplier, and we're actually seeing better performance from that supplier. So we now have a U.S. DoD approved OLED supplier, which is great news. So with that, we don't stop there. Yesterday at AUSA, we received tremendous reporting from Axios magazine and online news agency with 36 million views of our NeuralD isplay technology. The NeuralD isplay was on display in a booth with our friends at QinetiQ, with a Q, and we received tremendous feedback from it. We also were written up in Defense Daily and a number of other news articles yesterday at AUSA. Now, why is this important? Essentially, if you look at an Apple Vision Pro, an Oculus, or the new IVAS system shipping into the United States Department of Defense, each of those systems have multiple cameras that are doing eye tracking. With our technology, what we've done is we've added a small individual pixel into our microdisplay that takes an image back from the user's eye. So what you're seeing is Ben, Ben's eye. Ben is controlling the ship in this video with his eye. He's not looking at the ship, he's controlling the ship with his eye in real time. So it's a very interesting technology for the United States Department of Defense, specifically for issues around fight or flight neural response. Furthermore, we're able to adapt the microdisplay for the user while the user is actively using the device. So as an example, I don't know if you've traveled before and you wake up at night, in the middle of the night, you walk into the bathroom, you turn the bathroom light on, and you get this bright light into your eyes, and you squint. That's the wrong thing to have happen to you if you're getting shot at, or if you're flying an F-35, or if you're a gunner in a tank. That's the basic fundamentals of what Neural Display does, is it adapts the technology to you and your neural environment. So, tremendous technology from the company. It is AI-enabled. We do have an AI engine in the display itself, and it was very well received yesterday at AUSA. So even though the display itself has a bidirectional pixel in the quad pixel structure, all of the back planes moving forward will have some sort of programmability to it, moving forward. Whether it be an OLED or a micro LED or even an LCD, there'll be some sort of programmability in our microdisplays moving forward. And I think that's where I think Kopin's going to be very different from a manufacturing perspective, is most of our systems will be software-defined. The market opportunity, I'm not gonna spend too much time here. It's massive. It's billions of dollars. If you're tracking what's going on with the Vision Pro or Oculus, all of the consumer companies are back to the drawing board. They're trying to figure out how to make this technology work for human beings finally. And we're affirmed in our belief that sensor systems and integrated systems are the way to go for this technology. Just like your old cell phone. Cell phones have come a long, long way over the course of the last decade or two, and integration in semiconductors, I believe, as a semiconductor sensor guy, that that's the way that the market will unfold in the future. And we're affirmed in that since what we see with Oculus as well as Apple moving in that direction. Okay, so we don't stop there. Our customers ask us to do more, to take more of their systems. We make great displays, yes. We have great optics, absolutely. However, our customers don't understand or don't want to understand how to implement these into their systems. In many cases, our customers are very large Tier One OEMs. They're big metal benders or weapon manufacturers. They're also consumer companies that want to have their value proposition put into other things, like software or big metal. So we take on that challenge for them, and we build what's called an application-specific solution. So that includes the microdisplay, the optics, and the drive electronics in many cases. Now we're moving into a little bit of software. The reason we're moving into, quote, "a little bit of software" is we need that AI capability to adapt the technology to the user. So we've been investing in that over the last couple of years. Essentially, we are the digital overlay to the analog world. We focus on making sure that you have the information that you need, whether you're a gamer, spatial computing user, or a weapon fighter. This technology is really focused around making sure that you can make the best decisions in real time using our technology. So much so that we just released our CR3 headset, and that headset is for surgeons. We've been demonstrating it for, I'd say, about a year now. It is now in production, and we just received a production order from a Tier One OEM that we're going to be shipping in the next quarter. Moreover, we expect that Tier One OEM to announce that technology to the world as well. So very exciting news. So I'm gonna pause here and talk about the end markets a little bit more deeply. More specifically, in terms of defense, our programs in production will drive about $70-$75 million of repeatable business for the next few years. And when I say the next few years, the F-35 will continue to fly until 2030. The Family of Weapon Sights is a multi-billion-dollar IDIQ that will continue to ship in terms of multiple years from now. And we also have the Abrams program that we will be supporting for many, many years until a new platform comes available. So these programs have a long life. We are well positioned in them. We are taking more of the customer's wallet as we progress through, and you've seen or will see new press releases and new orders this quarter for some of these programs that I've listed here. Now, we just announced new programs with Wilcox. To the left, you can see our Off- the- Visor, as well as our Night HUD or Night Wave technology, and that was what was written up in Axios this morning as our Night Wave technology. It was absolutely one of the stars of the show yesterday at AUSA, along with the NeuralD isplay. Now, this is our CR3. I mentioned it earlier. This was designed and built all internally within Kopin. If you notice the size and weight distribution of the system itself, it was designed this way to be very balanced, and it actually sits above the bridge of the nose, and what we're solving here is very important. If you think about driving and you check your blind spot to either side, your hands slightly move because your hands follow your head, and your head follows your eyes. So in this case, we allow a surgeon to look at the person that they're actually operating on, and just with the flick of their eyes up and down, they can actually see the 3D rendering from the images that, you know, GE Medicare or, pardon me, GE Medical or Baxter or Olympus give us. So we're not generating the images, we're displaying the images in a 3D environment. So very useful technology, and we're receiving tremendous accolades for this technology, and as I said, we expect a Tier One OEM to announce it very soon. Okay, so MicroLED. The difference between a MicroLED and an OLED is the actual deposition. In one micro OLED, we use quantum dots, and in MicroLED, we actually grow individual LEDs. This allows for tremendous brightness and contrast. You can go from DC all the way up to three million nits building a MicroLED. The reason we did this technology is one of our fast mover, fixed-wing customers was developing this for a heads-up display. It is shipping into an aircraft today, and we do believe it's flying today in an aircraft. Kopin is one of the only companies in the world that has this technology, and I do believe we're the only US company shipping a monochrome device, in production. So I wanted to pause on this for a moment. One of the things when I joined Kopin that I heard from all of you, the investment community, is the research and development dollars that we've been working on at Kopin have not returned any value or income. I'm pleased to report that the last few programs that we invested in internally, so our IRAD or internal research and development, have now received orders, early-stage orders. We are now shipping orders and receiving revenue from these technologies that we've been developing over the course of the last year or so. Dark WAVE, as I said, we announced yesterday that we've presented that in the Wilcox booth at AUSA. We also have our DayVAS solution with a different customer, although we are also showing that in the Wilcox booth. They're one of our partners there. And then the medical CR3, we invested in that the last couple of years, and it's now starting to return value to the company. In 3D AOI, this market has been stagnant for a little while, but we've entered two new products into the market. One at the very high end, which is a 2K device, and one at the lower cost side of the market, which is our R-15. We're very pleased to report, and we just announced, one of the leaders in the market, Mirtec, has ordered our new technology, which is fantastic news for us. Then, of course, we did announce that we are the F-35 OLED production manufacturer, and we are just starting to tool up production capability for the F-35 OLED as well. Tremendous growth. In terms of patents, we're very focused on making sure that we cover our patent portfolio with regards to the NeuralD isplay as well as some of our other display technologies. We wanna make sure that we're covered here in the United States as well as in Europe and other areas, but tremendous amount of patent portfolio and coverage on our new technologies. So I've been very focused around our five strategic initiatives. I'm not going to go through each of them, but what I am going to talk about is our Fab Lite model. This is the transition between having wafer development, which we do internally, or we outsource to folks like UMC, as an example, and then the deposition or the growth of LEDs in U.S. DoD-approved sites. One of the things that we've been doing, and myself personally, I've been spending a lot of time on Capitol Hill. We have entered several new letters to the DPA and CHIPS Act. These range between $8 million to $50 million, and we will be also approaching the CHIPS Act for a fab development here in the United States for microLED as well as OLED. That will be coming very shortly, and that's focused on the CHIPS Act. Okay, this is the team. I think we've been established here for a while. I'll call up Bill Maffucci, who's doing a great job building our order book. Our order book is exceptional at this point, very strong in terms of follow-on orders as well as new orders with new customers. I think if you leave with anything today, is we're being very successful with the world's toughest customers, like Lockheed Martin, and bringing in new technologies and new orders from folks, in that, in that realm. So in terms, of a summary, we are the industry leader of microdisplays. We're the only U.S. company, U.S.-owned company, that can build four different types of microdisplays. To my knowledge, we're the only one that has an AI-enabled microdisplay and a bidirectional pixel. Furthermore, we have a tier one customer base that is growing, and I think that's the thing that I look at most, is what are our customers telling us? And our customers are telling us that we're doing a good job, our quality is greatly improved, and they wanna give us more of their share wallet. So, exciting times for the company right now. We're very focused on growing our order book and executing on that order book, as it grows, and, I think the market opportunity is coming to us, and we're ready to receive it. So with that, I will answer any questions that I can. Yes, sir. I know it's a little bit outside sort of question and answer, but all the different things when you're last, we saw before, the last one. It was two, like $3. I see you even that kind of level. Yeah. But I think you're done as annoying. It's annoying to me as well. So the question was, how do we get the stock above $1 and back to approaching $3? So if you notice, in April of this year, the stock was around $2.75. In April, we received an adverse jury verdict, in a case against BlueRadios. That took the stock into a tailspin, and it's been in that position ever since. The company itself, the fundamentals of the company are far stronger than they were in April, quite frankly. But the overhang of the stock is the issue. Pardon me, the overhang of the lawsuit is the issue. So there is an update to that. The update is, BlueRadios sued Kopin's patent attorneys, Hamilton Brook Smith Reynolds. They have lost that lawsuit, and we have entered a motion to the judge in Colorado, who has not yet reached final judgment in that case, and we have put a motion in place to have the Hamilton Brook Smith Reynolds judgment entered as evidence in our case. It is the same grouping of facts in our case, it is the same timeline as in our case, and in the Hamilton Brook Smith Reynolds case, the judge found for Hamilton Brook Smith Reynolds that the statute of limitations was up in 2009, not 2014, like they found in our case. Same grouping of facts, same companies, so we are working with that judge right now in Colorado to enter this motion. I think the motion will go in today or tomorrow. I'm not sure exactly when. It's supposed to be in by tomorrow, and you'll be able to read that. It'll be on PACER if you want to read through it. But there are some very substantial facts that will be in that paper, so I encourage everyone to read it and judge for yourself. I am a bystander in this. Quite frankly, I inherited this problem, and I can tell you as a third party, I don't believe Kopin did anything wrong. We had a contract, we paid money, we didn't have a product that worked. That's as simple as it is. So I will defend that position for as long as I can, and we are looking forward to the appeal. So I did raise capital. Part of the reason why I raised capital was we will have to place a bond to get to a judgment. That bond could be 100%-150% of whatever the judgment, the final judgment that Judge Kane will deliver in some period of time between now and whenever he chooses to. So we hope that the judge will see our side of the facts, and we look forward to appealing that judgment when it comes out. So that's the overhang, but the overhang should be gone since we raised the capital to overcome it, and also, more importantly, grow our order book and deliver our products to customers. That's the real reason we raised cash. I hated doing it at the price that we had to do it, but I think after the judgment, it would have been much harder at a much lower price to raise capital. That's the thesis. I hope I answered your question. Yes, sir, you had a question? In the defense, what you're doing for the Department of Defense, what exactly is it? Is it night gear equipment that you're manufacturing with these optical, you know, devices? So the question was, what are we doing for the U.S. Department of Defense? Is it night vision goggles and night technology? So the answer is, yes and no. So we don't actually build the goggles themselves. The goggles give you night vision, but they don't give you any information, color, or thermal capability. What we're providing with Night Wave is ATAK software information. So we get ATAK, it's an Android tactical system we can project that into the night vision goggle. So as you're using night vision goggles, you know which way to run and where your buddies are and where your foes are, and you're also getting information at thermal imaging. Is there someone, you know, behind the door that you can't see, as an example, you can see their footprints and what have you. And then, for daytime, we're providing the same thing, but for daytime, it has to be very bright LCD technology or OLED technology, and Kopin happens to be the only U.S. company that can provide it. Great question. Yes, sir. Can you just comment about what the pipeline, big picture pipeline is for your company right now? Right now, it's about $500 million in terms of factored opportunities. Of that $500 million, I'd say $350 million of it is defense. So is that the volume of contracts that are available for you to bid on? In bid, in process. When I say factored, that's Michael Murray looking at it and saying whether or not their sales guys are blowing, you know, smoke or not. When I say factored, we take a view of what is our customer's potential to win that bid and what is our potential to win that bid with our customer. So we do the math along those factored lines. So in reality, the actual pipeline is quite large, and what we're doing is factoring that down to that $500 million mark to say that's what we believe is real and factual, and of that amount, how much could we achieve? But it is a very significant pipeline of opportunities with tier one customers, and also with Kopin leading, in some cases, taking on full builds as a prime, and I think that is a big change for us. Our customer, U.S. Department of Defense, sees us as one of the only primes that's left that is a small cap company. I think we are the only defense company that is a small cap or micro cap. So, very interesting change of events that our customers are now coming to us as a prime bidder. Is that $350 million that includes Microsoft? It is not. So there are three opportunities that I do not include in that number because they are so significant. Our IVAS opportunity is around $380 million, two displays, around $1,700 a display, times 10,000 a year. You do the math, it comes out around $384 million. Trust me, I've done it many, many times. That is an opportunity that we are actively pursuing. We did have several meetings with that team over the course of this week. I think there's opportunity for us to work with either A, their current prime or with a potential new prime for the goggle itself, and I've been very clear that I believe Microsoft will always be an IVAS prime from a software perspective. Whether or not they do the next generation of hardware, I don't know. I don't know their ambition, but we do have access to them, and they are, I think, interested in working with us, and we're interested in working with them. So we'll see where that goes. There's been a lot of talk about Anduril. We also know that company very well. Their software, Lattice, is fantastic. It's not something that we would add value to, but it's something that we're trying to understand of how we could potentially, display that technology, and work with it if possible. So we've had multiple meetings with those folks. Very great company. Yes, sir. Are you in a partnership with Microsoft and the other companies, are you bringing software to them? No, we are not. Not yet. So the question was, are we in partnership with Microsoft to support them with our AI software and Apple? So with the consumer companies, as I said, there were three very large opportunities. One is IVAS, two is our consumer opportunities. We've been very careful about talking about those because of NDAs, so I won't be talking about them. And then thirdly, we may or may not be entering the automotive market. We do have some interest in our liquid crystal and silicon. It is an automotive-qualified display that we're doing for the armored vehicle program. It just so happens that other automotive companies really like that technology for heads-up displays. So I'm considering potentially entering that market, but it's a drag, not a push, meaning I'm being dragged into it, not pushing it, because I don't quite understand what the needs will be. So, we're not stating that we'll be in the automotive market. We're just stating that we have an automotive-qualified liquid crystal on silicon that happens to be good enough to put into an Abrams tank platform. So therefore, it should be good enough and robust enough for a consumer automotive application. Yes, sir. I hope I answered your question. So those are the big three that we're not including in our opportunity pipeline, just simply because it dominates the conversation. When I think about our opportunity pipeline, it's really about what can we win, what should we be able to win, and we're planning on that. If one of these big three come in, fantastic. That's the sizzle on top of your steak. In a year, about the $350 million, is that over the next year or? Yeah, so, I've got to be a little careful because the schedule is now firming for that team. We have been working with them over the course of the last year with multiple visits to and from Massachusetts, and we expect that there'll be some documentation passed forward in the next few months. So there is an ambition from that team to look for new technology for the next generation of IVAS, and we are part of that discussion. All right, well, thank you very much to the folks at Micro Cap Rodeo for the invitation today. Thank you for your questions and everyone online. We really appreciate your support and look for more from us as we close up Q3 and move on for the rest of the year. Thank you very much.