KOPIN CORP Leases Disclosure
4. Leases
The Company enters into operating leases primarily for manufacturing, engineering, research, administration and sales facilities, and information technology (“IT”) equipment. At December 27, 2025 and December 28, 2024, the Company did not have any finance leases. Almost all of the Company’s future lease commitments, and related lease liability, relate to the Company’s facility leases. Some of the Company’s leases include options to extend or terminate the lease.
| 2025 | 2024 | |||||||
| Operating lease cost | $ | 853,045 | $ | 867,920 | ||||
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
At December 27, 2025 the Company’s future lease payments under non-cancellable leases were as follows:
| 2026 | $ | 732,610 | ||
| 2027 | 669,255 | |||
| 2028 | 201,333 | |||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| Total future lease payments | 1,603,198 | |||
| Less effects of discounting | (123,222 | ) | ||
| Total | $ | 1,479,976 |
Cash paid for operating cash flows from operating leases:
| 2025 | 2024 | |||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 865,699 | $ | 861,775 | ||||
Other information related to leases was as follows:
| 2025 | 2024 | |||||||
| Weighted Average Discount Rate—Operating Leases | 6.80 | % | 6.77 | % | ||||
| Weighted Average Remaining Lease Term—Operating Leases (in years) | 2.23 | 3.16 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 13, 2026 | Showing above |
| 2024 | Apr 17, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2019 | Mar 11, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.