Precision Optics Announces Product Development Agreement to Deliver Next-Generation Augmented Reality Sub-Systems for Fighter Pilots

Rhea-AI Summary

Precision Optics (NASDAQ: POCI) announced a product development order dated Nov 7, 2025 to build compact optical sub-assemblies for an augmented reality (AR) system intended for US Air Force fighter pilot in-air training.

The initial $723,000 development order covers design, prototyping and qualification of next-generation, reduced size/weight/power optical systems to enable pilots to wear AR headsets during flight and reduce secondary-aircraft training needs.

Insights

Defense optics strategist

POC wins a small but strategically relevant AR development order for in‑air fighter pilot training; commercial and defense follow‑ons matter most.

Precision Optics received an initial $723,000 product development order to design and prototype compact optical sub‑assemblies for an in‑air augmented reality headset intended for fighter pilot training, with the customer's solution contracted by the US Air Force for deployment across multiple aircraft platforms. The work leverages the company's emphasis on reduced size, weight and power and targets a segment the release describes as growing at greater than 20% CAGR to 2030.

The business mechanism is straightforward: a paid development order converts POC’s design and manufacturing capabilities into a qualified optical sub‑assembly that the prime integrator can install on aircraft. Key dependencies include successful prototype qualification, integration with the prime contractor’s AR system, and meeting military reliability and safety standards in flight conditions. Risks stem from typical development hurdles, modest initial order size relative to program build costs, and the need for broader follow‑on production contracts to materialize commercial value.

Concrete items to watch are the completion and formal qualification milestones for the prototype, any follow‑on production awards from the prime or the US Air Force, and multiyear integration or sustainment contracts; expect these milestones over a 6–24 month horizon as engineering, testing and military qualification progress.

GARDNER, Mass., Nov. 07, 2025 (GLOBE NEWSWIRE) -- Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, today announced the receipt of a product development order to build sub-assemblies that will support an advanced augmented reality (AR) system for US Air Force fighter pilot training, powered by POC’s next-generation optical sub-assembly design and manufacturing technologies.

The program aims to allow pilots to wear AR headsets while in the air in their fighter jets, simulating combat training, without the need for secondary aircraft to be present. This reduces cost and the potential for training related accidents. The customer has been contracted by the US Air Force to deploy their solution on multiple aircraft platforms.

This development project is an example of the defense/aerospace industry’s growing interest in engaging with POC, as the Company’s solutions are well positioned to align with the industry's need for smaller sized optical systems focused on reduced size, weight and power. The global aviation AR market, which includes pilot training, is estimated to grow at a CAGR greater than 20% from 2023 to 2030, making this an attractive new market segment for POC technologies.

The initial $723,000 development order is focused on leveraging POC’s optical expertise to design, prototype and qualify compact optical systems with ultra-high precision optical performance.

“Aviation related augmented reality today is a rapidly growing industry, however most systems are focused on land-based training,” commented Joe Forkey, CEO of Precision Optics. “This new system is focused on leveraging the unique attributes of AR for in-air training. We look forward to working with our new partner to bring this next generation technology to the market.”

About Precision Optics Corporation
Founded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics, 3D imaging and digital imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company is able to design and manufacture next-generation product solutions to the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

About Forward-Looking Statements

This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "intends," "may," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on certain assumptions and analyses made by the management of the Company in light of their respective experience and perception of historical trends, current conditions, and expected future developments and their potential effects on the Company as well as other factors they believe are appropriate in the circumstances. There can be no assurance that future developments affecting the Company will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties), or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including risks that the closing conditions for this offering will not be achieved, the demand for the Company's products, global supply chains and economic activity in general and other risks and uncertainties identified in the Company's filings with the SEC. Should one or more of these risks or uncertainties materialize or should any of the assumptions being made prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

Company Contact:
PRECISION OPTICS CORPORATION
22 East Broadway
Gardner, Massachusetts 01440-3338
Telephone: 978-630-1800

Investor Contact:
LYTHAM PARTNERS, LLC
Robert Blum
Telephone: 602-889-9700
poci@lythampartners.com

FAQ

What did Precision Optics (POCI) announce on November 7, 2025?

POCI announced a $723,000 product development order to build optical sub-assemblies for an AR system for US Air Force fighter pilot training.

How will the POCI-developed AR sub-assemblies be used in US Air Force training?

They are intended to enable pilots to wear AR headsets in-air to simulate combat training without requiring secondary aircraft.

What is the scope of the initial POCI development order and timeline?

The initial order covers design, prototyping and qualification of compact optical systems; a specific delivery timeline was not disclosed.

Does the POCI announcement name the customer deploying the AR solution?

The announcement says the customer has been contracted by the US Air Force to deploy the solution on multiple aircraft platforms; the customer name was not disclosed.

What market opportunity does Precision Optics cite for aviation AR?

POCI cited industry estimates of a global aviation AR market CAGR greater than 20% from 2023–2030 as an attractive segment for its technologies.

What technical advantages does POCI highlight for its AR sub-assemblies?

POCI emphasizes reduced size, weight and power and ultra-high precision optical performance for compact in-air AR systems.