Westborough manufacturer Kopin Corp. has spun out parts of its Solos product line and Whisper Audio technology in a new company headed by a group of employees and investors.
Kopin, a developer of wearable computing technologies and solutions, will hold a 20% stake in the new company (Solos Inc.), receive a royalty in the single digits on the net sales amount of Solos products for a four-year period, and retain a license for the Whisper technology for industrial and military customers.
John Fan, CEO and chairman of the board of Kopin, said this is one of the first steps to monetize the intellectual property and reduce Kopin’s cost structure.
As part of the agreement, Fan and two of his family members invested in the new company. Fan’s total individual ownership interest is 15.5% of Solos Inc. and his two family members collectively hold a 37.1% ownership interest in Solos Inc.
Kopin’s Hong Kong employees have been offered employment with the Solos, Inc., and most are expected to transition to the new company.
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