The Company continued to make improvements in technology and product design.

• The Company is completing qualification of the XGA (1024 x 768) display which is expected to be available in the first quarter of 2017 for consumer and industrial applications that require cost effective medium resolution microdisplays.
• The Company’s direct patterning development work under the Defense Manufacturing, Science and Technology program (Man Tech) progressed during the quarter and is on track for completion in 2017.
• eMagin’s direct patterning technology has generated significant interest from our military and commercial customers. We will be offering direct patterned displays to our military customers in the second half of 2017.
• The Company’s direct patterning production equipment has been upgraded by the equipment manufacturers based on our design changes to provide significant improvements in display performance and higher production volumes. The upgraded equipment has been re-installed during the fourth quarter with fabrication samples expected by the end of the quarter.
• Product development on the 2K x 2K full color RGB microdisplay, eMagin Corporation’s largest microdisplay design, which expands the Company’s product offerings for the consumer and commercial marketplaces, is on schedule to produce engineering samples. Select customers, including the customer with whom we entered into the license agreement in December 2015, will receive samples beginning in December. Associated products are expected to be generally available in the first quarter of 2017.