Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 25, 2016 | Jul. 29, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 25, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | KOPN | |
Entity Registrant Name | KOPIN CORP | |
Entity Central Index Key | 771,266 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 66,769,502 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and equivalents | $ 25,812,429 | $ 19,767,889 |
Marketable debt securities, at fair value | 65,709,596 | 60,942,891 |
Accounts receivable, net of allowance of $169,000 and $153,000 in 2016 and 2015, respectively | 1,326,341 | 1,487,633 |
Unbilled receivables | 82,535 | 87,340 |
Inventory | 2,935,699 | 2,512,473 |
Prepaid taxes | 119,543 | 437,586 |
Prepaid expenses and other current assets | 895,741 | 920,410 |
Note receivable | 0 | 15,000,000 |
Total current assets | 96,881,884 | 101,156,222 |
Property, plant and equipment, net | 2,728,951 | 2,677,103 |
Goodwill | 887,512 | 946,082 |
Other assets | 716,679 | 461,416 |
Real Estate Held-for-sale | 0 | 819,263 |
Total assets | 101,215,026 | 106,060,086 |
Current liabilities: | ||
Accounts payable | 4,327,008 | 3,959,704 |
Accrued payroll and expenses | 1,791,883 | 1,631,292 |
Accrued warranty | 516,000 | 518,000 |
Accrued Income Taxes | 721,202 | 0 |
Billings in excess of revenue earned | 1,254,694 | 1,407,566 |
Other accrued liabilities | 2,662,518 | 2,553,282 |
Deferred tax liabilities | 2,570,000 | 1,207,000 |
Deferred tax liabilities | 13,843,305 | 11,276,844 |
Asset retirement obligations | 274,034 | 298,463 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued | 0 | 0 |
Common stock, par value $.01 per share: authorized, 120,000,000 shares; issued 78,875,534 shares in 2016 and 78,271,659 shares in 2015; outstanding 64,039,260 shares in 2016 and 63,977,385 shares in 2015 | 761,415 | 760,796 |
Additional paid-in capital | 327,754,462 | 326,558,527 |
Treasury stock (12,102,258 shares in 2016 and 2015, respectively, at cost) | (42,741,551) | (42,741,551) |
Accumulated other comprehensive income | 1,766,202 | 771,774 |
Accumulated deficit | (200,655,234) | (190,608,671) |
Total Kopin Corporation stockholders’ equity | 86,885,294 | 94,740,875 |
Noncontrolling interest | 212,393 | (256,096) |
Total stockholders’ equity | 87,097,687 | 94,484,779 |
Total liabilities and stockholders’ equity | $ 101,215,026 | $ 106,060,086 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 169,000 | $ 153,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 3,000 | 3,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 120,000,000 | 120,000,000 |
Common stock, issued | 78,875,534 | 78,271,659 |
Common stock, outstanding | 64,039,260 | 63,977,385 |
Treasury stock, shares | 12,102,258 | 12,102,258 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Revenues: | ||||
Net component revenues | $ 4,096,529 | $ 9,486,723 | $ 10,074,663 | $ 16,615,093 |
Research and development revenues | 258,746 | 1,369,883 | 399,750 | 2,826,505 |
Total revenues | 4,355,275 | 10,856,606 | 10,474,413 | 19,441,598 |
Expenses: | ||||
Cost of component revenues | 4,682,846 | 6,359,780 | 9,329,888 | 11,643,513 |
Research and development | 4,119,401 | 4,884,010 | 8,159,352 | 9,744,202 |
Selling, general and administration | 4,282,264 | 5,108,229 | 8,043,113 | 9,494,442 |
Gain (Loss) on Disposition of Property Plant Equipment | (7,700,522) | 0 | (7,700,522) | 0 |
Total expenses | 5,383,989 | 16,352,019 | 17,831,831 | 30,882,157 |
Loss from operations | (1,028,714) | (5,495,413) | (7,357,418) | (11,440,559) |
Other income and expense: | ||||
Interest income | 175,765 | 198,898 | 340,713 | 408,561 |
Other income, net | 3,718 | 25,758 | 41,626 | 45,269 |
Foreign currency transaction gains (losses) | 27,503 | 529,138 | (524,437) | 349,549 |
Gain on sale of investments | 0 | 5,460,399 | 0 | 7,602,820 |
Total other income and expense | 206,986 | 6,214,193 | (142,098) | 8,406,199 |
(Loss) income before provision for income taxes, equity loss in unconsolidated affiliate and net (income) loss attributable to noncontrolling interest | (821,728) | 718,780 | (7,499,516) | (3,034,360) |
Tax provision | (1,963,000) | (12,500) | (2,104,000) | (25,000) |
(Loss) income before equity loss in unconsolidated affiliate and net (income) loss attributable to noncontrolling interest | (2,784,728) | 706,280 | (9,603,516) | (3,059,360) |
Equity loss in unconsolidated affiliate | 0 | 0 | 0 | (47,443) |
Net (loss) income | (2,784,728) | 706,280 | (9,603,516) | (3,106,803) |
Net (income) loss attributable to the noncontrolling interest | (344,374) | 74,690 | (443,047) | 49,784 |
Net (loss) income attributable to the controlling interest | $ (3,129,102) | $ 780,970 | $ (10,046,563) | $ (3,057,019) |
Net (loss) income per share | ||||
Earnings Per Share, Basic | $ (0.05) | $ 0.01 | $ (0.16) | $ (0.05) |
Earnings Per Share, Diluted | $ (0.05) | $ 0.01 | $ (0.16) | $ (0.05) |
Weighted average number of common shares | ||||
Weighted average common shares outstanding, basic | 64,011,571 | 63,066,031 | 63,994,809 | 63,074,842 |
Weighted average common shares outstanding, diluted | 64,011,571 | 63,300,781 | 63,994,809 | 63,074,842 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (2,784,728) | $ 706,280 | $ (9,603,516) | $ (3,106,803) |
Foreign currency translation adjustments | (92,228) | (569,644) | 643,956 | (555,222) |
Holding (loss) gain on marketable securities | 92,596 | 500,602 | 410,106 | 1,325,524 |
Reclassifications of gains in net (loss) income | (38,360) | (21,785) | (34,192) | (399,345) |
Other Comprehensive Income (Loss), Net of Tax | (37,992) | (90,827) | 1,019,870 | 370,957 |
Comprehensive (loss) income | (2,822,720) | 615,453 | (8,583,646) | (2,735,846) |
Comprehensive loss (income) attributable to the noncontrolling interest | (337,788) | (76,524) | (468,489) | (18,726) |
Comprehensive (loss) income attributable to controlling interest | $ (3,160,508) | $ 538,929 | $ (9,052,135) | $ (2,754,572) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 6 months ended Jun. 25, 2016 - USD ($) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Stockholders' Equity, Total [Member] | Noncontrolling Interest |
Beginning Balance (in shares) at Dec. 26, 2015 | 76,079,643 | |||||||
Beginning Balance at Dec. 26, 2015 | $ 94,484,779 | $ 760,796 | $ 326,558,527 | $ (42,741,551) | $ 771,774 | $ (190,608,671) | $ 94,740,875 | $ (256,096) |
Stock-based compensation | 1,198,054 | 1,198,054 | 1,198,054 | |||||
Adjustments To Additional Paid In Capital Other Shares | 62,500 | |||||||
Adjustments to Additional Paid in Capital, Other | $ 625 | (625) | ||||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 1,019,870 | 994,428 | 994,428 | 25,442 | ||||
Shares Paid for Tax Withholding for Share Based Compensation | (625) | |||||||
Settlements of restricted stock for tax withholding obligations | (1,500) | $ (6) | (1,494) | (1,500) | ||||
Net loss | (9,603,516) | (10,046,563) | (10,046,563) | 443,047 | ||||
Ending Balance (in shares) at Jun. 25, 2016 | 76,141,518 | |||||||
Ending Balance at Jun. 25, 2016 | $ 87,097,687 | $ 761,415 | $ 327,754,462 | $ (42,741,551) | $ 1,766,202 | $ (200,655,234) | $ 86,885,294 | $ 212,393 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ (2,784,728) | $ 706,280 | $ (9,603,516) | $ (3,106,803) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation and amortization | 651,687 | 1,190,413 | ||
Accretion (amortization) of premium or discount on marketable debt securities | 78,261 | 302,466 | ||
Stock-based compensation | 951,053 | 2,022,043 | ||
Foreign currency losses (gains) | 563,548 | (280,173) | ||
Provision for Doubtful Accounts | (17,644) | 74,500 | ||
Deferred Income Tax Expense (Benefit) | 1,363,000 | 0 | ||
Gain (Loss) on Disposition of Property Plant Equipment | (7,700,522) | 0 | (7,700,522) | 0 |
Gain on sale of investments | 0 | (5,460,399) | 0 | (7,602,820) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 244,956 | 1,130,162 | ||
Changes in assets and liabilities: | ||||
Accounts receivable | 145,076 | (4,388,730) | ||
Inventory | (696,705) | (110,325) | ||
Increase (Decrease) in Prepaid Expense and Other Assets | (295,257) | (177,843) | ||
Accounts payable and accrued expenses | 1,682,820 | (1,351,835) | ||
Billings in excess of revenue earned | (152,872) | 3,085,945 | ||
Net cash used in operating activities | (12,195,601) | (8,857,314) | ||
Cash flows from investing activities: | ||||
Other assets | (187,646) | (8,486) | ||
Capital expenditures | (305,059) | (651,814) | ||
Proceeds from sale of marketable debt securities | 30,488,413 | 12,000,622 | ||
Purchase of marketable debt securities | (35,064,288) | (7,777,277) | ||
Proceeds from sale of investments | 0 | 7,330,203 | ||
Proceeds from Sale of Buildings | 8,106,819 | 0 | ||
Proceeds from Divestiture of Businesses | 15,000,000 | 0 | ||
Net cash provided by investing activities | 18,038,239 | 10,893,248 | ||
Net cash used in financing activities | ||||
Proceeds from Stock Options Exercised | 0 | 86,048 | ||
Settlements of restricted stock for tax withholding obligations | (1,500) | (183,259) | ||
Net cash used in financing activities | (1,500) | (97,211) | ||
Effect of exchange rate changes on cash | 203,402 | (97,023) | ||
Net increase in cash and equivalents | 6,044,540 | 1,841,700 | ||
Cash and equivalents: | ||||
Beginning of period | 16,477,501 | 19,767,889 | $ 14,635,801 | |
End of period | 25,812,429 | $ 25,812,429 | ||
Supplemental disclosure of cash flow information: | ||||
Income taxes paid | 0 | 50,000 | ||
Supplemental schedule of noncash investing activities: | ||||
Construction in progress included in accrued expenses | 0 | 228,000 | ||
Non cash proceeds from exercise of warrants | $ 0 | $ 1,330,000,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | BASIS OF PRESENTATION The condensed consolidated financial statements of Kopin Corporation (the Company) as of June 25, 2016 and for the three and six months ended June 25, 2016 and June 27, 2015 are unaudited and include all adjustments which, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 26, 2015 . The results of the Company's operations for any interim period are not necessarily indicative of the results of the Company's operations for any other interim period or for a full fiscal year. In June 2016 , the Company’s subsidiary Kowon sold its plant and the land on which the plant resided for 9.5 billion KRW (approximately $8.1 million on the closing date). Kowon had ceased its production activities at the facility in 2013 . The plant and land had a cost basis of approximately $0.4 million . Accordingly, the Company recorded a gain on the sale of the plant and land of $7.7 million . Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014 , the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . This new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. In addition, ASU 2014-09 provides guidance on accounting for certain revenue-related costs including, but not limited to, when to capitalize costs associated with obtaining and fulfilling a contract. The standard also requires certain new disclosures. The standard was effective for annual and interim reporting periods beginning after December 15, 2016. In August 2015 , the FASB issued ASU 2015-14, Revenue from Contracts with Customers . The amendments in this ASU defer the effective date of ASU 2014-09. Public companies should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017 , including interim periods within that reporting period. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016 , including interim reporting periods within that reporting period. The Company is currently evaluating the expected impact of this new guidance on its consolidated financial statements and available adoption methods. Leases In February 2016 , the FASB issued ASU No. 2016-02, Leases (Topic 842) . This new standard requires lessees to recognize a lease liability and a right-of-use asset on the balance sheet and aligns many of the underlying principles of the new lessor model with those in Topic 606, Revenue from Contracts with Customers . Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach.The new standard is effective for fiscal years beginning after December 15, 2018 , including interim periods within those fiscal years. Early application is permitted for all public business entities and all nonpublic business entities. The Company is currently evaluating the expected impact of this new guidance on its consolidated financial statements and available adoption methods. Compensation-Stock Compensation In March 2016 , the FASB issued ASU No. 2016-09 , Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This guidance is intended to simplify the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016 , including interim periods within those annual periods, and early application is permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the expected impact of this new guidance on its consolidated financial statements and available adoption methods. Statement of Comprehensive Income During the six months ended June 25, 2016 , the change in the Company's accumulated other comprehensive income was net of $ 0.6 million foreign currency translation adjustments and $0.4 million unrealized holding gains on marketable securities. |
CASH AND EQUIVALENTS AND MARKET
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES | 6 Months Ended |
Jun. 25, 2016 | |
Cash and Equivalents and Marketable Securities Disclosure [Abstract] | |
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES | CASH AND EQUIVALENTS AND MARKETABLE SECURITIES The Company considers all highly liquid, short-term debt instruments with original maturities of three months or less to be cash equivalents. Marketable debt securities consist primarily of certificates of deposit, medium-term corporate debt, and U.S. government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale in “Marketable Debt Securities”. The Company records the amortization of premium and accretion of discount on marketable debt securities in the results of operations. The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the three and six months ended June 25, 2016 and the year ended December 26, 2015 . Investments in available-for-sale marketable debt securities are as follows at June 25, 2016 and December 26, 2015 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2016 2015 2016 2015 2016 2015 2016 2015 U.S. government and agency backed securities $ 44,742,363 $ 46,586,224 $ 118,565 $ — $ — $ (121,561 ) $ 44,860,928 $ 46,464,663 Corporate debt and certificates of deposit 20,914,514 14,534,247 — — (65,846 ) (56,019 ) 20,848,668 14,478,228 Total $ 65,656,877 $ 61,120,471 $ 118,565 $ — $ (65,846 ) $ (177,580 ) $ 65,709,596 $ 60,942,891 The contractual maturity of the Company’s marketable debt securities is as follows at June 25, 2016 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 17,582,380 $ 20,207,958 $ 7,070,590 $ 44,860,928 Corporate debt and certificates of deposit 16,448,550 4,400,118 — 20,848,668 Total $ 34,030,930 $ 24,608,076 $ 7,070,590 $ 65,709,596 The Company conducts a review of its marketable debt securities on a quarterly basis for the presence of other-than-temporary impairment (OTTI). The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the balance sheet date. Under these circumstances OTTI is considered to have occurred (1) if the Company intends to sell the security before recovery of its amortized cost basis; (2) if it is “more likely than not” the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. The Company further estimates the amount of OTTI resulting from a decline in the creditworthiness of the issuer (credit-related OTTI) and the amount of non credit-related OTTI. Non credit-related OTTI can be caused by such factors as market illiquidity. Credit-related OTTI is recognized in earnings while non credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The Company did not record an OTTI for the three and six months ended June 25, 2016 and June 27, 2015 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 25, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. An investment is categorized as Level 3 if its fair value is based on assumptions developed by the Company about what a market participant would use in pricing the assets. The following table details the fair value measurements of the Company’s financial assets: Fair Value Measurement June 25, 2016 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 25,812,429 $ 25,812,429 $ — $ — U.S. Government Securities 44,860,928 13,490,520 31,370,408 — Corporate Debt 7,133,346 — 7,133,346 — Certificates of Deposit 13,715,322 — 13,715,322 — GCS Holdings 377,724 377,724 — — $ 91,899,749 $ 39,680,673 $ 52,219,076 $ — Fair Value Measurement December 26, 2015 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 19,767,889 $ 19,767,889 $ — $ — U.S. Government Securities 46,464,663 16,381,152 30,083,511 — Corporate Debt 6,886,495 — 6,886,495 — Certificates of Deposit 7,591,733 — 7,591,733 — GCS Holdings 232,037 232,037 — — $ 80,942,817 $ 36,381,078 $ 44,561,739 $ — The corporate debt consists of floating rate notes with a maturity that is over multiple years but has interest rates which are reset every three months based on the then-current three month London Interbank Offering Rate (three month Libor). The Company validates the fair market values of the financial instruments above by using discounted cash flow models, obtaining independent pricing of the securities or through the use of a model which incorporates the three month Libor, the credit default swap rate of the issuer and the bid and ask price spread of the same or similar investments which are traded on several markets. The carrying amounts of cash and equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short-term nature. If accrued liabilities were carried at fair value, these would be classified as Level 2 in the fair value hierarchy. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 25, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY Inventory is stated at the lower of cost (determined on the first-in, first-out) or market and consists of the following at June 25, 2016 and December 26, 2015 : June 25, December 26, Raw materials $ 1,113,639 $ 844,475 Work-in-process 1,393,398 1,281,891 Finished goods 428,662 386,107 $ 2,935,699 $ 2,512,473 |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 6 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Net (loss) Income per share | NET LOSS PER SHARE Basic net loss per share is computed using the weighted average number of shares of common stock outstanding during the period less any non-vested restricted shares. Diluted earnings per common share, if applicable, is calculated using weighted average shares outstanding and contingently issuable shares, less weighted average shares reacquired during the period. The net outstanding shares are adjusted for the dilutive effect of shares issuable upon the assumed conversion of the Company’s common stock equivalents, which consist of outstanding stock options and non-vested restricted stock units. Weighted average common shares outstanding used to calculate basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Weighted average common shares outstanding-basic 64,011,571 63,066,031 63,994,809 63,074,842 Stock options and non-vested restricted common stock — 234,750 — — Weighted average common shares outstanding-diluted 64,011,571 63,300,781 63,994,809 63,074,842 The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period: Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Non-vested restricted common stock 2,734,016 1,374,000 2,734,016 3,074,111 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The fair value of non-vested restricted common stock awards is generally the market value of the Company’s common stock on the date of grant. The non-vested restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for one , two or four years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards which solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards which require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company recognizes compensation costs on a straight-line basis over the requisite service period for time-vested awards. Non-Vested Restricted Common Stock Shares Weighted Balance, December 26, 2015 2,192,016 $ 3.82 Granted 604,500 1.86 Forfeited — — Vested (62,500 ) 3.55 Balance, June 25, 2016 2,734,016 $ 3.39 Stock-Based Compensation The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock awards for the six months ended June 25, 2016 and June 27, 2015 (no tax benefits were recognized): Six Months Ended June 25, June 27, Cost of component revenues $ 289,937 $ 461,094 Research and development 248,848 503,523 Selling, general and administrative 412,268 1,057,426 Total $ 951,053 $ 2,022,043 Unrecognized compensation expense for non-vested restricted common stock as of June 25, 2016 totaled $4.3 million and is expected to be recognized over a weighted average period of approximately two years. |
OTHER ASSETS AND AMOUNTS DUE TO
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES | 6 Months Ended |
Jun. 25, 2016 | |
Other Assets and Related Party Transactions Disclosure [Abstract] | |
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES | OTHER ASSETS AND NOTE RECEIVABLE In January 2016 , the Company received the final $15.0 million payment resulting from the sale of its III-V product line and its investment in KTC. On February 25, 2015 , the Company acquired approximately 251,000 shares of Vuzix Corporation (Vuzix) common stock through a cashless exercise of warrants. The Company received the warrants in August 2013 as part of a restructuring of debt owed by Vuzix to the Company. Upon receipt of the warrants, the Company should have recorded the value of the warrant of approximately $352,000 in its consolidated financial statements. Subsequently, the Company should have marked to market the warrants at the end of each reporting period. Had the Company recorded the warrants in its consolidated financial statements and marked to market the warrants as of December 28, 2013 and December 27, 2014 , the Company would have recorded gains in its statement of operations of approximately $646,000 and $171,000 , respectively. In the first quarter of 2015 , the Company recorded the warrants in its consolidated financial statements and as a result recorded a gain of approximately $1.3 million with $817,000 attributed to prior periods. The value of the warrants as of August 2013 , December 28, 2013 and December 27, 2014 was determined using the Black-Scholes pricing model. The Company does not believe the unrecorded gains were material to the consolidated financial statements as the loss from operations for the fiscal years ended December 28, 2013 and December 27, 2014 were $35.9 million and $28.5 million , respectively. |
GOODWILL AND INTANGIBLES (Notes
GOODWILL AND INTANGIBLES (Notes) | 6 Months Ended |
Jun. 25, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. GOODWILL AND INTANGIBLES The Company’s goodwill balance is as follows: Balance, December 26, 2015 $ 946,082 Change due to exchange rate fluctuations (58,570 ) Balance, June 25, 2016 $ 887,512 |
ACCRUED WARRANTY
ACCRUED WARRANTY | 6 Months Ended |
Jun. 25, 2016 | |
Product Warranties Disclosures [Abstract] | |
ACCRUED WARRANTY | ACCRUED WARRANTY The Company typically warrants its products against defect for 12 months . A provision for estimated future costs and estimated returns for credit relating to such warranty is recorded in the period when product is shipped and revenue recognized, and is updated as additional information becomes available. The Company’s estimate of future costs to satisfy warranty obligations is based primarily on historical warranty expense experienced and a provision for potential future product failures. Changes in the accrued warranty for the six months ended June 25, 2016 are as follows: Balance, December 26, 2015 $ 518,000 Additions 356,000 Claims (358,000 ) Balance, June 25, 2016 $ 516,000 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s tax provision of approximately $2.0 million for the three months ended June 25, 2016 represents $0.7 million of income taxes on the gain of the sale of Kowon’s plant and land and $1.3 million of net movement in estimated foreign withholding on anticipated future remitted earnings of a foreign subsidiary. The Company's tax provision of approximately $2.1 million for the six months ended June 25, 2016 represents $0.7 million of income taxes on the gain of the sale of Kowon’s plant and land, $1.4 million o f net movement in estimated foreign withholding on anticipated future remitted earnings of a foreign subsidiary, and $18,000 in state taxes. The Company’s tax provision of approximately $12,500 and $25,000 for the three and six month periods ended June 27, 2015 represents estimated state income taxes. As of June 25, 2016 , the Company has available for tax purposes U.S. federal NOLs of approximately $98 million expiring through 2035 . The Company has recognized a full valuation allowance on its domestic and certain foreign net deferred tax assets due to the uncertainty of realization of such assets. The Company has not historically recorded, nor does it intend to record the tax benefits from stock awards until realized. Unrecorded benefits from stock awards approximate $10 million . The Company’s income tax returns have not been examined by the Internal Revenue Service and are subject to examination for all years since 2001 . State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. |
SEGMENTS AND GEOGRAPHICAL INFOR
SEGMENTS AND GEOGRAPHICAL INFORMATION | 6 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
SEGMENTS AND GEOGRAPHICAL INFORMATION | SEGMENTS AND GEOGRAPHICAL INFORMATION The Company’s chief operating decision maker is its Chief Executive Officer. The Company has determined it has two reportable segments, FDD, the manufacturer of its reflective display products for test and simulation products, and Kopin, which is comprised of Kopin Corporation, Kowon, Kopin Software Ltd. and eMDT. The following table presents the Company’s reportable segment results (in thousands): Three Months Ended June 25, 2016 June 27, 2015 Kopin FDD Total Kopin FDD Total Revenues $ 3,321 $ 1,034 $ 4,355 $ 10,177 $ 679 $ 10,856 Net loss attributable to the controlling interest (3,075 ) (54 ) (3,129 ) 853 (72 ) 781 Six Months Ended June 25, 2016 June 27, 2015 Kopin FDD Total Kopin FDD Total Revenues $ 8,469 $ 2,005 $ 10,474 $ 17,764 $ 1,678 $ 19,442 Net loss attributable to the controlling interest (9,646 ) (401 ) (10,047 ) (2,519 ) (538 ) (3,057 ) Total assets 99,593 1,622 101,215 122,604 1,403 124,007 Long-lived assets from continuing operations 2,726 3 2,729 3,972 135 4,107 The total assets of Kopin are net of $6.2 million and $5.3 million in intercompany loans to FDD as of June 25, 2016 and June 27, 2015 , respectively. During the three and six month periods ended June 25, 2016 and June 27, 2015 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 United States 28 % 77 % 28 % 75 % Others — % — % — % 1 % Americas 28 % 77 % 28 % 76 % Asia-Pacific 59 % 18 % 55 % 17 % Europe 13 % 5 % 17 % 7 % Total Revenues 100 % 100 % 100 % 100 % |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION The Company may engage in legal proceedings arising in the ordinary course of business. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of such matters and our business, financial condition, results of operations or cash flows could be affected in any particular period. |
CASH AND EQUIVALENTS AND MARK20
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Cash and Equivalents and Marketable Securities Disclosure [Abstract] | |
Cash Cash Equivalents and Marketable Securities Table | Investments in available-for-sale marketable debt securities are as follows at June 25, 2016 and December 26, 2015 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2016 2015 2016 2015 2016 2015 2016 2015 U.S. government and agency backed securities $ 44,742,363 $ 46,586,224 $ 118,565 $ — $ — $ (121,561 ) $ 44,860,928 $ 46,464,663 Corporate debt and certificates of deposit 20,914,514 14,534,247 — — (65,846 ) (56,019 ) 20,848,668 14,478,228 Total $ 65,656,877 $ 61,120,471 $ 118,565 $ — $ (65,846 ) $ (177,580 ) $ 65,709,596 $ 60,942,891 |
Marketable Debt Securities | The contractual maturity of the Company’s marketable debt securities is as follows at June 25, 2016 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 17,582,380 $ 20,207,958 $ 7,070,590 $ 44,860,928 Corporate debt and certificates of deposit 16,448,550 4,400,118 — 20,848,668 Total $ 34,030,930 $ 24,608,076 $ 7,070,590 $ 65,709,596 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Instruments | The following table details the fair value measurements of the Company’s financial assets: Fair Value Measurement June 25, 2016 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 25,812,429 $ 25,812,429 $ — $ — U.S. Government Securities 44,860,928 13,490,520 31,370,408 — Corporate Debt 7,133,346 — 7,133,346 — Certificates of Deposit 13,715,322 — 13,715,322 — GCS Holdings 377,724 377,724 — — $ 91,899,749 $ 39,680,673 $ 52,219,076 $ — Fair Value Measurement December 26, 2015 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 19,767,889 $ 19,767,889 $ — $ — U.S. Government Securities 46,464,663 16,381,152 30,083,511 — Corporate Debt 6,886,495 — 6,886,495 — Certificates of Deposit 7,591,733 — 7,591,733 — GCS Holdings 232,037 232,037 — — $ 80,942,817 $ 36,381,078 $ 44,561,739 $ — |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Stated at the Lower of Cost or Market | Inventory is stated at the lower of cost (determined on the first-in, first-out) or market and consists of the following at June 25, 2016 and December 26, 2015 : June 25, December 26, Raw materials $ 1,113,639 $ 844,475 Work-in-process 1,393,398 1,281,891 Finished goods 428,662 386,107 $ 2,935,699 $ 2,512,473 |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Weighted Average Common Shares Outstanding | Weighted average common shares outstanding used to calculate basic and diluted earnings per share are as follows: Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Weighted average common shares outstanding-basic 64,011,571 63,066,031 63,994,809 63,074,842 Stock options and non-vested restricted common stock — 234,750 — — Weighted average common shares outstanding-diluted 64,011,571 63,300,781 63,994,809 63,074,842 |
Weighted Average Common Shares Outstanding-Diluted | The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period: Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 Non-vested restricted common stock 2,734,016 1,374,000 2,734,016 3,074,111 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
NonVested Restricted Common Stock | Shares Weighted Balance, December 26, 2015 2,192,016 $ 3.82 Granted 604,500 1.86 Forfeited — — Vested (62,500 ) 3.55 Balance, June 25, 2016 2,734,016 $ 3.39 |
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock awards for the six months ended June 25, 2016 and June 27, 2015 (no tax benefits were recognized): Six Months Ended June 25, June 27, Cost of component revenues $ 289,937 $ 461,094 Research and development 248,848 503,523 Selling, general and administrative 412,268 1,057,426 Total $ 951,053 $ 2,022,043 |
GOODWILL AND INTANGIBLES (Table
GOODWILL AND INTANGIBLES (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The Company’s goodwill balance is as follows: Balance, December 26, 2015 $ 946,082 Change due to exchange rate fluctuations (58,570 ) Balance, June 25, 2016 $ 887,512 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty | Changes in the accrued warranty for the six months ended June 25, 2016 are as follows: Balance, December 26, 2015 $ 518,000 Additions 356,000 Claims (358,000 ) Balance, June 25, 2016 $ 516,000 |
SEGMENTS AND GEOGRAPHICAL INF27
SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 6 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The following table presents the Company’s reportable segment results (in thousands): Three Months Ended June 25, 2016 June 27, 2015 Kopin FDD Total Kopin FDD Total Revenues $ 3,321 $ 1,034 $ 4,355 $ 10,177 $ 679 $ 10,856 Net loss attributable to the controlling interest (3,075 ) (54 ) (3,129 ) 853 (72 ) 781 Six Months Ended June 25, 2016 June 27, 2015 Kopin FDD Total Kopin FDD Total Revenues $ 8,469 $ 2,005 $ 10,474 $ 17,764 $ 1,678 $ 19,442 Net loss attributable to the controlling interest (9,646 ) (401 ) (10,047 ) (2,519 ) (538 ) (3,057 ) Total assets 99,593 1,622 101,215 122,604 1,403 124,007 Long-lived assets from continuing operations 2,726 3 2,729 3,972 135 4,107 |
Percentage of Net Revenues by Geographies | During the three and six month periods ended June 25, 2016 and June 27, 2015 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended Six Months Ended June 25, 2016 June 27, 2015 June 25, 2016 June 27, 2015 United States 28 % 77 % 28 % 75 % Others — % — % — % 1 % Americas 28 % 77 % 28 % 76 % Asia-Pacific 59 % 18 % 55 % 17 % Europe 13 % 5 % 17 % 7 % Total Revenues 100 % 100 % 100 % 100 % |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) ₩ in Billions | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 25, 2016KRW (₩) | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Current State and Local Tax Expense (Benefit) | $ 18,000 | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 0 | 0 | ₩ 9.5 | ||
Land Available-for-sale | 400,000 | 400,000 | |||
Gain (Loss) on Disposition of Property Plant Equipment | 7,700,522 | $ 0 | 7,700,522 | $ 0 | |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 1,019,870 | ||||
Accumulated Translation Adjustment | |||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 600,000 | $ 600,000 | |||
Accumulated Net Unrealized Investment Gain (Loss) | |||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items] | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | $ 400,000 |
CASH AND EQUIVALENTS AND MARK29
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 65,656,877 | $ 61,120,471 |
Unrealized Gains | 118,565 | 0 |
Unrealized Losses | (65,846) | (177,580) |
Fair Value | 65,709,596 | 60,942,891 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 34,030,930 | |
One to five years | 24,608,076 | |
Greater than five years | 7,070,590 | |
Available-for-sale Securities | 65,709,596 | |
U.S. government and agency backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 44,742,363 | 46,586,224 |
Unrealized Gains | 118,565 | 0 |
Unrealized Losses | 0 | (121,561) |
Fair Value | 44,860,928 | 46,464,663 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 17,582,380 | |
One to five years | 20,207,958 | |
Greater than five years | 7,070,590 | |
Available-for-sale Securities | 44,860,928 | |
Corporate debt and certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 20,914,514 | 14,534,247 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (65,846) | (56,019) |
Fair Value | 20,848,668 | $ 14,478,228 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 16,448,550 | |
One to five years | 4,400,118 | |
Greater than five years | 0 | |
Available-for-sale Securities | $ 20,848,668 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 91,899,749 | $ 80,942,817 |
Money Markets, Cash and Equivalents | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 25,812,429 | 19,767,889 |
U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 44,860,928 | 46,464,663 |
Corporate Debt | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 7,133,346 | 6,886,495 |
Certificates of Deposit | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 13,715,322 | 7,591,733 |
GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 377,724 | 232,037 |
Level 1 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 39,680,673 | 36,381,078 |
Level 1 | Money Markets, Cash and Equivalents | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 25,812,429 | 19,767,889 |
Level 1 | U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 13,490,520 | 16,381,152 |
Level 1 | GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 377,724 | 232,037 |
Level 2 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 52,219,076 | 44,561,739 |
Level 2 | U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 31,370,408 | 30,083,511 |
Level 2 | Corporate Debt | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 7,133,346 | 6,886,495 |
Level 2 | Certificates of Deposit | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 13,715,322 | 7,591,733 |
Level 3 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Level 3 | Money Markets, Cash and Equivalents | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Level 3 | U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Level 3 | Corporate Debt | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Level 3 | Certificates of Deposit | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | 0 |
Level 3 | GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 0 | $ 0 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Jun. 25, 2016 | Dec. 26, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,113,639 | $ 844,475 |
Work-in-process | 1,393,398 | 1,281,891 |
Finished goods | 428,662 | 386,107 |
Inventory | $ 2,935,699 | $ 2,512,473 |
NET (LOSS) INCOME PER SHARE (De
NET (LOSS) INCOME PER SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average common shares outstanding, basic | 64,011,571 | 63,066,031 | 63,994,809 | 63,074,842 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 234,750 | 0 | 0 |
Weighted average common shares outstanding, diluted | 64,011,571 | 63,300,781 | 63,994,809 | 63,074,842 |
Unvested Restricted Stock Awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, number of shares | 2,734,016 | 1,374,000 | 2,734,016 | 3,074,111 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ in Millions | 6 Months Ended |
Jun. 25, 2016USD ($) | |
Restricted Stock | |
Class of Warrant or Right [Line Items] | |
Unrecognized compensation cost related to nonvested stock awards | $ 4.3 |
Unrecognized compensation cost related to nonvested stock awards, period of recognition (in years) | 2 years |
Share-based Compensation Award, Tranche One | |
Class of Warrant or Right [Line Items] | |
Nonvested common stock awards employment obligations (in years) | 1 year |
Share-based Compensation Award, Tranche Two | |
Class of Warrant or Right [Line Items] | |
Nonvested common stock awards employment obligations (in years) | 2 years |
Share-based Compensation Award, Tranche Three | |
Class of Warrant or Right [Line Items] | |
Nonvested common stock awards employment obligations (in years) | 4 years |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Activity for Nonvested Restricted Common Stock Awards (Details) - Unvested Restricted Stock Awards | 6 Months Ended |
Jun. 25, 2016$ / sharesshares | |
Shares | |
Beginning Balance | shares | 2,192,016 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 604,500 |
Forfeited | shares | 0 |
Vested | shares | (62,500) |
Ending Balance | shares | 2,734,016 |
Weighted Average Grant Fair Value | |
Beginning Balance | $ / shares | $ 3.82 |
Granted | $ / shares | 1.86 |
Forfeited | $ / shares | 0 |
Vested | $ / shares | 3.55 |
Ending Balance | $ / shares | $ 3.39 |
STOCK-BASED COMPENSATION - Expe
STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) - USD ($) | 6 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 951,053 | $ 2,022,043 |
Cost of product revenues | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 289,937 | 461,094 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 248,848 | 503,523 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 412,268 | $ 1,057,426 |
OTHER ASSETS AND AMOUNTS DUE 36
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 28, 2015 | |
Other Assets and Related Party Transactions Disclosure [Abstract] | ||||||||
Proceeds from Divestiture of Businesses | $ 15,000,000 | $ 0 | ||||||
Class of Warrant or Right, Unissued | 251,000 | |||||||
Warrants and Rights Outstanding | $ 352,000 | |||||||
Prior Period Reclassification Adjustment | 1,300,000 | $ 171,000 | $ 646,000 | $ 817,000 | ||||
Net (loss) income | $ (2,784,728) | $ 706,280 | $ (9,603,516) | $ (3,106,803) | $ 28,500,000 | $ 35,900,000 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) | 6 Months Ended | |
Jun. 25, 2016 | Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 887,512 | $ 946,082 |
Goodwill, Period Increase (Decrease) | $ (58,570) |
ACCRUED WARRANTY (Details)
ACCRUED WARRANTY (Details) | 6 Months Ended |
Jun. 25, 2016USD ($) | |
Product Warranties Disclosures [Abstract] | |
Product warranty term | 12 months |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning Balance | $ 518,000 |
Additions | 356,000 |
Claim and reversals | (358,000) |
Ending Balance | $ 516,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | |
Income Taxes [Line Items] | ||||
State income and foreign tax expenses | $ 1,963,000 | $ 12,500 | $ 2,104,000 | $ 25,000 |
Gain (Loss) on Sale of Properties, Applicable Income Taxes | 700,000 | |||
Foreign Earnings Repatriated | 1,300,000 | 1,400,000 | ||
Net operating loss carryforwards available for tax purposes | $ 98,000,000 | 98,000,000 | ||
Unrecorded benefits from stock award | $ 10,000,000 | |||
Minimum | ||||
Income Taxes [Line Items] | ||||
State income tax returns examination period | 3 years | |||
Maximum | ||||
Income Taxes [Line Items] | ||||
State income tax returns examination period | 5 years | |||
The state impact of any federal changes, subject to examination by various states (in years) | 1 year |
SEGMENTS AND GEOGRAPHICAL INF40
SEGMENTS AND GEOGRAPHICAL INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | Jun. 27, 2015 | Dec. 26, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 4,355,275 | $ 10,856,606 | $ 10,474,413 | $ 19,441,598 | |
Net Income (Loss) Attributable to Parent | (3,129,102) | 780,970 | (10,046,563) | (3,057,019) | |
Assets | 101,215,026 | 101,215,026 | $ 106,060,086 | ||
Debt of Subsidiary, Not Assumed | $ 6,200,000 | $ 5,300,000 | $ 6,200,000 | $ 5,300,000 | |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
UNITED STATES | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of total revenue | 28.00% | 77.00% | 28.00% | 75.00% | |
All Others | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of total revenue | 0.00% | 0.00% | 0.00% | 1.00% | |
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of total revenue | 28.00% | 77.00% | 28.00% | 76.00% | |
Asia-Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of total revenue | 59.00% | 18.00% | 55.00% | 17.00% | |
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of total revenue | 13.00% | 5.00% | 17.00% | 7.00% | |
Segment, Continuing Operations | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 4,355 | $ 10,856 | $ 10,000 | $ 19,442 | |
Net Income (Loss) Attributable to Parent | (3,129) | 781 | (10,000) | (3,057) | |
Assets | 101,215 | 101,215 | 124,007 | ||
Long-Lived Assets | 2,729 | 2,729 | 4,107 | ||
Segment, Continuing Operations | Kopin United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 3,321 | 10,177 | 8,000 | 17,764 | |
Net Income (Loss) Attributable to Parent | (3,075) | 853 | (10,000) | (2,519) | |
Assets | 99,593 | 99,593 | 122,604 | ||
Long-Lived Assets | 2,726 | 2,726 | 3,972 | ||
Segment, Continuing Operations | Forth Dimension Displays Limited | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 1,034 | 679 | 2,000 | 1,678 | |
Net Income (Loss) Attributable to Parent | (54) | $ (72) | 0 | $ (538) | |
Assets | 1,622 | 1,622 | 1,403 | ||
Long-Lived Assets | $ 3 | $ 3 | $ 135 |