News

27 November 2006

 

Kopin on notice from NASDAQ pending review of stock option practices

Kopin Corp of Taunton, MA, USA says that, on 15 November, it received a NASDAQ Staff Determination letter indicating that it is not in compliance with NASDAQ Marketplace Rule 4310(c)(14), because it did not file its
quarterly report on Form 10-Q (for the quarter ended 30 September) by the 10 November deadline.

On 1 November Kopin had announced that its board of directors had appointed a special committee (assisted by independent legal counsel and independent accounting experts) to review its past stock option practices, and that it would not file its quarterly report on Form 10-Q until after the completion of the review.

A derivative lawsuit related to certain stock option grants issued during a period from 1996 to 2001 has been filed in Massachusetts against certain directors and officers of Kopin. The company has been named as a nominal
defendant in the action.

It has not been determined whether the review will result in any restatement of Kopin's historical financial statements and, if so, what years would be affected and what amounts would be involved. Until the review is completed and Kopin is current with its regulatory filings, Kopin has also suspended its stock repurchase program.

NASDAQ's notice also indicated that Kopin's common stock is subject to delisting from The NASDAQ Global Market unless Kopin requests a hearing before the NASDAQ Qualifications Panel. Accordingly, on 21 November Kopin
requested a hearing before the panel to review the determination and to request continued listing. Pending the occurrence and resolution of the hearing, Kopin's common stock will remain listed.

See related item.

Visit: http://www.kopin.com