Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 01, 2017 | May 05, 2017 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 1, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | KOPN | |
Entity Registrant Name | KOPIN CORP | |
Entity Central Index Key | 771,266 | |
Current Fiscal Year End Date | --12-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 75,195,363 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and equivalents | $ 18,393,066 | $ 15,822,495 |
Marketable debt securities, at fair value | 49,357,503 | 61,375,401 |
Accounts receivable, net of allowance of $136,000 in 2017 and 2016 | 2,390,660 | 1,664,488 |
Unbilled receivables | 0 | 34,707 |
Inventory | 4,194,821 | 3,302,112 |
Prepaid taxes | 116,921 | 341,144 |
Prepaid expenses and other current assets | 1,147,074 | 853,757 |
Total current assets | 75,600,045 | 83,394,104 |
Property, plant and equipment, net | 2,999,590 | 2,976,006 |
Goodwill | 2,326,948 | 844,023 |
Intangible Assets, Current | 2,302,364 | 0 |
Other assets | 823,746 | 618,139 |
Total assets | 84,052,693 | 87,832,272 |
Current liabilities: | ||
Accounts payable | 3,878,123 | 4,355,462 |
Accrued payroll and expenses | 2,393,195 | 1,443,976 |
Accrued warranty | 736,000 | 518,000 |
Billings in Excess of Cost, Current | 1,134,558 | 981,761 |
Other accrued liabilities | 3,358,760 | 2,560,144 |
Taxes Payable, Current | 936,866 | 935,364 |
Deferred Tax Liabilities, Net, Current | 2,686,000 | 2,571,000 |
Liabilities, Current | 15,123,502 | 13,365,707 |
Asset retirement obligations | 251,186 | 246,922 |
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 79,708,618 shares in 2017 and 79,648,618 shares in 2016; outstanding 64,538,686 shares in 2017 and 64,538,686 shares in 2016 | 766,409 | 766,409 |
Additional paid-in capital | 329,337,949 | 328,524,644 |
Treasury stock (12,102,258 shares in 2017 and 2016, at cost) | (42,741,551) | (42,741,551) |
Accumulated other comprehensive income | 3,132,503 | 1,570,971 |
Accumulated deficit | (221,901,228) | (214,042,787) |
Total Kopin Corporation stockholders’ equity | 68,594,082 | 74,077,686 |
Noncontrolling interest | 83,923 | 141,957 |
Total stockholders’ equity | 68,678,005 | 74,219,643 |
Total liabilities and stockholders’ equity | $ 84,052,693 | $ 87,832,272 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 136,000 | $ 136,000 |
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 | 79,708,618 | 79,648,618 |
Common stock, outstanding | 64,538,686 | 64,538,686 |
Treasury stock, shares | 12,102,258 | 12,102,258 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Revenues: | ||
Net product revenues | $ 3,933,142 | $ 5,978,134 |
Research and development revenues | 444,985 | 141,004 |
Total revenues | 4,378,127 | 6,119,138 |
Expenses: | ||
Cost of product revenues | 3,117,357 | 4,636,041 |
Research and development | 4,281,870 | 4,039,951 |
Selling, general and administration | 5,641,684 | 3,760,849 |
Total expenses | 13,040,911 | 12,436,841 |
Loss from operations | (8,662,784) | (6,317,703) |
Other income and expense: | ||
Interest income | 233,777 | 164,948 |
Other income (expense), net | 534,411 | (39,093) |
Foreign currency transaction (losses) | (1,191,283) | (501,940) |
Total other income and expense | (423,095) | (376,085) |
Loss before benefit (provision) for income taxes and net loss (income) attributable to noncontrolling interest | (9,085,879) | (6,693,788) |
Tax benefit (provision) | 1,146,000 | (141,000) |
Net loss | (7,939,879) | (6,834,788) |
Net loss (income) attributable to the noncontrolling interest | 81,438 | (98,673) |
Net loss attributable to the controlling interest | $ (7,858,441) | $ (6,933,461) |
Net (loss) income per share | ||
Earnings Per Share, Basic | $ (0.12) | $ (0.11) |
Earnings Per Share, Diluted | $ (0.12) | $ (0.11) |
Weighted average number of common shares | ||
Weighted average common shares outstanding, basic | 64,538,686 | 63,978,048 |
Weighted average common shares outstanding, diluted | 64,538,686 | 63,978,048 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,939,879) | $ (6,834,788) |
Foreign currency translation adjustments | 1,597,406 | 736,184 |
Holding (loss) gain on marketable securities | (11,314) | 317,510 |
Reclassifications of gains in net (loss) income | (1,156) | 4,167 |
Other Comprehensive Income (Loss), Net of Tax | 1,584,936 | 1,057,861 |
Comprehensive (loss) income | (6,354,943) | (5,776,927) |
Comprehensive loss (income) attributable to the noncontrolling interest | 58,034 | 66,645 |
Comprehensive (loss) income attributable to controlling interest | $ (6,296,909) | $ (5,710,282) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 3 months ended Apr. 01, 2017 - USD ($) | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income | Accumulated Deficit | Noncontrolling Interest | Stockholders' Equity, Total [Member] |
Beginning Balance (in shares) at Dec. 31, 2016 | 76,640,943 | |||||||
Beginning Balance at Dec. 31, 2016 | $ 74,219,643 | $ 766,409 | $ 328,524,644 | $ (42,741,551) | $ 1,570,971 | $ (214,042,787) | $ 141,957 | $ 74,077,686 |
Stock-based compensation | 813,305 | 813,305 | 813,305 | |||||
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 1,584,936 | 1,561,532 | 23,404 | 1,561,532 | ||||
Settlements of restricted stock for tax withholding obligations | 0 | |||||||
Net loss | (7,939,879) | (7,858,441) | (81,438) | (7,858,441) | ||||
Ending Balance (in shares) at Apr. 01, 2017 | 76,640,943 | |||||||
Ending Balance at Apr. 01, 2017 | $ 68,678,005 | $ 766,409 | $ 329,337,949 | $ (42,741,551) | $ 3,132,503 | $ (221,901,228) | $ 83,923 | $ 68,594,082 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (7,939,879) | $ (6,834,788) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 443,174 | 335,478 |
Accretion (amortization) of premium or discount on marketable debt securities | 27,256 | 37,971 |
Stock-based compensation | 1,292,105 | 56,454 |
Foreign currency losses | 1,190,199 | 485,294 |
Adjustment of Warrants Granted for Services | (274,000) | 0 |
Deferred Income Tax Expense (Benefit) | (1,168,962) | 123,000 |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | 129,884 | 94,050 |
Changes in assets and liabilities: | ||
Accounts receivable | (210,823) | (123,073) |
Inventory | (249,340) | (306,431) |
Increase (Decrease) in Prepaid Expense and Other Assets | 22,082 | (541,455) |
Accounts payable and accrued expenses | 10,736 | 98,847 |
Billings in excess of revenue earned | 152,797 | (77,580) |
Net cash used in operating activities | (6,618,935) | (5,569,323) |
Cash flows from investing activities: | ||
Other assets | (12,346) | (92,276) |
Capital expenditures | (297,983) | (223,520) |
Proceeds from sale of marketable debt securities | 13,519,291 | 11,229,734 |
Purchase of marketable debt securities | (948,637) | (13,474,384) |
Increase (Decrease) in Assets Held-for-sale | 0 | (791,623) |
Business Combination, Consideration Transferred | (3,247,397) | 0 |
Proceeds from Divestiture of Businesses | 0 | 15,000,000 |
Net cash provided by investing activities | 9,012,928 | 13,231,177 |
Net cash used in financing activities | ||
Settlements of restricted stock for tax withholding obligations | 0 | (1,500) |
Net cash used in financing activities | 0 | (1,500) |
Effect of exchange rate changes on cash | 176,578 | 191,088 |
Net increase in cash and equivalents | 2,570,571 | 7,851,442 |
Cash and equivalents: | ||
Beginning of period | 15,822,495 | 19,767,889 |
End of period | 18,393,066 | 27,619,331 |
Supplemental schedule of noncash investing activities: | ||
Construction in progress included in accrued expenses | $ 0 | $ 136,000 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and for the three months ended April 1, 2017 and March 26, 2016 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 31, 2016 . 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. 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 underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new standard also requires entities to enhance disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company anticipates applying the guidance in ASU 2014-09 after January 1, 2018 . 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 Accounting Standards Update No. 2016-02 (Topic 842) Leases . Topic 842 supersedes the lease recognition requirements in Accounting Standards Codification Topic 840, "Leases". Under Topic 842, lessees are required to recognize assets and liabilities on the balance sheet for most leases and provide enhanced disclosures. Leases will continue to be classified as either finance or operating. Topic 842 is effective for annual reporting periods, and interim periods within those years beginning after December 15, 2018 . Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, and there are certain optional practical expedients that an entity may elect to apply. Full retrospective application is prohibited and early adoption by public entities is permitted. The Company is currently evaluating the expected impact of this new guidance on its consolidated financial statements. The Company has not yet made any decision on the timing of adoption or method of adoption with respect to the optional practical expedients. Business Combinations In January 2017 , the FASB issued ASU 2017-01 , Business Combinations (Topic 805). The new guidance clarifies the definition of a business that an entity uses to determine whether a transaction should be accounted for as an asset acquisition (or disposal) or a business combination. The guidance is expected to cause fewer acquired sets of assets (and liabilities) to be identified as businesses. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017 . Early adoption is permitted for transactions that meet certain requirements. The Company is evaluating the impact this standard will have on its financial statements. Intangibles- Goodwill and Other In January 2017 , the FASB issued ASU 2017-04, Intangibles- Goodwill and Other (Topic 350). The new guidance simplifies the accounting for goodwill impairments by eliminating Step 2 from the goodwill impairment test. The guidance requires, among other things, recognition of an impairment loss when the fair value of a reporting unit exceeds its carrying amount. The loss recognized is limited to the total amount of goodwill allocated to that reporting unit. The guidance is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019 . Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The Company is evaluating the impact this standard will have on its financial statements. |
CASH AND EQUIVALENTS AND MARKET
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES | 3 Months Ended |
Apr. 01, 2017 | |
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 commercial paper, medium-term corporate notes, and U.S. government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale at fair value in “Marketable debt securities, at fair value.” The Company's investment in GCS Holdings is included in "Other Assets" as available-for-sale and at fair value. The Company records the amortization of premium and accretion of discounts 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 months ended April 1, 2017 and the year ended December 31, 2016 . Investments in available-for-sale marketable debt securities are as follows at April 1, 2017 and December 31, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2017 2016 2017 2016 2017 2016 2017 2016 U.S. government and agency backed securities $ 35,116,536 $ 36,343,817 $ — $ — $ (201,268 ) $ (252,556 ) $ 34,915,268 $ 36,091,261 Corporate debt and certificates of deposit 14,475,561 25,323,428 — — (33,326 ) (39,288 ) 14,442,235 25,284,140 Total $ 49,592,097 $ 61,667,245 $ — $ — $ (234,594 ) $ (291,844 ) $ 49,357,503 $ 61,375,401 The contractual maturity of the Company’s marketable debt securities is as follows at April 1, 2017 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 15,495,380 $ 15,501,588 $ 3,918,300 $ 34,915,268 Corporate debt and certificates of deposit 13,484,735 957,500 — 14,442,235 Total $ 28,980,115 $ 16,459,088 $ 3,918,300 $ 49,357,503 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 months ended April 1, 2017 and March 26, 2016 . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 18,393,066 $ 18,393,066 $ — $ — U.S. Government Securities 34,915,268 6,943,660 27,971,608 — Corporate Debt 6,832,185 — 6,832,185 — Certificates of Deposit 7,610,050 — 7,610,050 — GCS Holdings 261,788 261,788 — — Warrant 274,000 — — 274,000 $ 68,286,357 $ 25,598,514 $ 42,413,843 $ 274,000 Fair Value Measurement December 31, 2016 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 15,822,495 $ 15,822,495 $ — $ — U.S. Government Securities 36,091,261 7,144,767 28,946,494 — Corporate Debt 7,557,029 — 7,557,029 — Certificates of Deposit 17,727,111 — 17,727,111 — GCS Holdings 331,454 331,454 — — $ 77,529,350 $ 23,298,716 $ 54,230,634 $ — 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 Company has a warrant to acquire up to 15% of the next round of equity offered by a customer as part of the licensing of technology to the customer. The fair market value of the warrant was determined based upon expectations from the customer’s management and then applying probabilities of occurrence and discounting back the values using expected returns required for similar instruments. 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 | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 : April 1, December 31, Raw materials $ 2,119,312 $ 1,986,491 Work-in-process 1,677,043 1,186,162 Finished goods 398,466 129,459 $ 4,194,821 $ 3,302,112 |
NET (LOSS) INCOME PER SHARE
NET (LOSS) INCOME PER SHARE | 3 Months Ended |
Apr. 01, 2017 | |
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. 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 April 1, 2017 March 26, 2016 Non-vested restricted common stock 3,067,674 2,694,016 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Apr. 01, 2017 | |
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. Some of the restricted stock awards vest upon our stock price achieving certain levels. These awards are referred to as Liability Awards and are mark to marketed. Accordingly in some periods there is expense and in other periods the expense may reverse. 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 31, 2016 3,007,674 $ 3.21 Granted 60,000 3.43 Forfeited — — Vested — — Balance, April 1, 2017 3,067,674 $ 3.22 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 three months ended April 1, 2017 and March 26, 2016 (no tax benefits were recognized): Three Months Ended April 1, March 26, Cost of component revenues $ 104,092 $ 142,534 Research and development 218,558 116,895 Selling, general and administrative 969,455 (202,975 ) Total $ 1,292,105 $ 56,454 Unrecognized compensation expense for non-vested restricted common stock as of April 1, 2017 totaled $5.3 million and is expected to be recognized over a weighted average period of approximately three years. The Selling, general and administrative expense includes Liability Awards and the increase in expense for the three month period ended April 1, 2017 as compared to March 26, 2016 is the result of a higher stock price of the Company at April 1, 2017 as compared to March 26, 2016 . Included in Other accrued liabilities is $1.6 million in deferred compensation from equity awards which are classified as Liability Awards. |
OTHER ASSETS AND AMOUNTS DUE TO
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES | 3 Months Ended |
Apr. 01, 2017 | |
Other Assets and Related Party Transactions Disclosure [Abstract] | |
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES | 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. |
ACCRUED WARRANTY
ACCRUED WARRANTY | 3 Months Ended |
Apr. 01, 2017 | |
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 three months ended April 1, 2017 are as follows: Balance, December 31, 2016 $ 518,000 Additions 100,000 Additions from acquisition 218,000 Claims (100,000 ) Balance, April 1, 2017 $ 736,000 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Apr. 01, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s tax benefit of approximately $1.1 million for the three months ended April 1, 2017 represents a net benefit of $62,000 for foreign income taxes including interest income on intercompany loans, uncertain tax positions and a benefit for the net reduction in estimated foreign withholding. In addition, as a result of the acquisition of a company, we recognized $1.1 million of net deferred tax liabilities which provides evidence of recoverability of our net deferred tax assets that previously carried a full valuation allowance. We reduced the valuation allowance on our net deferred tax assets in the amount of $1.1 million and such reduction was recognized as a benefit for income taxes for the year three month period ended April 1, 2017 . The Company’s tax provision of approximately $141,000 for the three months ended March 26, 2016 , represents the net movement in estimated foreign withholding on anticipated future remitted earnings of an international subsidiary and state taxes. As of April 1, 2017 , the Company has available for tax purposes U.S. federal NOLs of approximately $141 million expiring through 2036 . 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. During the three months ended April 1, 2017 we recorded $0.2 million of expense resulting from the amortization of the intangibles. Ownership changes, as defined by the Internal Revenue Code, may substantially limit the amount of net operating loss carryforwards that can be utilized annually to offset future taxable income. The ownership change in 2017 did not result in an annual net operating loss limitation as the acquired entity was an S Corporation and did not have loss carryforwards. Subsequent ownership changes could affect the limitation in future years. Such annual limitations could result in the expiration of net operating loss and tax credit carryforwards before utilization. The tax years 2001 through 2016 remain open to examination by major taxing jurisdictions to which the Company is subject to United States federal tax for the consolidated group. These periods have carryforward attributes generated in years past that may still be adjusted upon examination by the Internal Revenue Service or state tax authorities if they have or will be used in a future period. State statutes are generally shorter with shorter carryforward periods. The Company is currently not under examination by the Internal Revenue Service and is currently under examination by Massachusetts for the 2013 tax year. The Company recognizes both accrued interest and penalties related to its uncertain tax positions related to intercompany loan interest and potential transfer pricing exposure related to its Korean subsidiary. The Company has concluded that it does not maintain its permanent reinvestment assertion with regard to the unremitted earnings of its Korean subsidiaries. As such, it accrues U.S. tax for the possible future repatriation of these unremitted foreign earnings. If the Company were to repatriate these earnings, it expects to have foreign withholding at a rate of 16.5 %and does not expect any taxes to be paid in the U.S when repatriated as it currently is expected to be a return of capital. |
BUSINESS COMBINATION (Notes)
BUSINESS COMBINATION (Notes) | 3 Months Ended |
Apr. 01, 2017 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | 10. BUSINESS COMBINATION In March 2017 , the Company purchased 100% of the outstanding common stock of a company for $3.7 million . Additional payments of up to $2.0 million may be required if certain future operating performance milestones are met and the selling shareholders remain employed through March 2020 . As there is requirement to remain employed to earn the contingent payments, they will be treated as compensation expense. Commencing on the date of acquisition, the Company consolidated the financial results of the acquired company. The identifiable assets acquired and liabilities assumed at the acquisition date have been recognized at fair value of the acquired company. The allocation of the purchase price is as follows: Cash and marketable securities $ 2,600 Accounts receivable 490,700 Inventory 768,400 Other identifiable assets 46,800 Order backlog 840,000 Customer relationships 1,000,000 Developed technology 460,000 Trademark portfolio 160,000 Current liabilities (480,500 ) Net deferred tax liabilities (1,084,000 ) Goodwill 1,477,000 Total $ 3,681,000 The Company’s goodwill balance is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,477,000 1,477,000 Change due to exchange rate fluctuations 5,925 — 5,925 Balance, April 1, 2017 $ 849,948 $ 1,477,000 $ 2,326,948 The identified intangible assets will be amortized on a straight-line basis over the following lives, in years: Order backlog 1 Customer relationships 2 Developed technology 2 Trademark portfolio 2 The Company recognized $0.2 million in amortization for the three months ended April 1, 2017 related to its intangible assets. In conjunction with the acquisition the Company recorded deferred tax liabilities of approximately $1.1 million associated with the future non-deductible amortization of the intangible assets. These deferred tax liabilities can be used to offset the Company’s net deferred tax assets in future years. The Company reduced the valuation allowance on its net deferred tax assets in the amount of $1.1 million and such reduction was recognized as a benefit for income taxes for the three month period ended April 1, 2017 . Acquisition expenses were approximately $0.2 million and are recorded in selling, general and administration expenses. The following unaudited supplemental pro forma disclosures are provided for the three month periods ended April 1, 2017 and March 26, 2016 , assuming the acquisition of the company had occurred as of December 26, 2015 . All intercompany transactions have been eliminated. Three months ended April 1, March 26, Revenues $ 4,982,000 $ 6,374,000 Net loss (8,553,000 ) (7,312,000 ) For the three month period ended April 1, 2017 the revenues and net loss from the acquired company were $396,000 and $78,000 , respectively. In March 2017 , the Company purchased 100% of the outstanding common stock of a company for $3.7 million . Additional payments of up to $2.0 million may be required if certain future operating performance milestones are met and the selling shareholders remain employed through March 2020 . As there is requirement to remain employed to earn the contingent payments, they will be treated as compensation expense. Commencing on the date of acquisition, the Company consolidated the financial results of the acquired company. The identifiable assets acquired and liabilities assumed at the acquisition date have been recognized at fair value of the acquired company. The allocation of the purchase price is as follows: Cash and marketable securities $ 2,600 Accounts receivable 490,700 Inventory 768,400 Other identifiable assets 46,800 Order backlog 840,000 Customer relationships 1,000,000 Developed technology 460,000 Trademark portfolio 160,000 Current liabilities (480,500 ) Net deferred tax liabilities (1,084,000 ) Goodwill 1,477,000 Total $ 3,681,000 The Company’s goodwill balance is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,477,000 1,477,000 Change due to exchange rate fluctuations 5,925 — 5,925 Balance, April 1, 2017 $ 849,948 $ 1,477,000 $ 2,326,948 The identified intangible assets will be amortized on a straight-line basis over the following lives, in years: Order backlog 1 Customer relationships 2 Developed technology 2 Trademark portfolio 2 The Company recognized $0.2 million in amortization for the three months ended April 1, 2017 related to its intangible assets. In conjunction with the acquisition the Company recorded deferred tax liabilities of approximately $1.1 million associated with the future non-deductible amortization of the intangible assets. These deferred tax liabilities can be used to offset the Company’s net deferred tax assets in future years. The Company reduced the valuation allowance on its net deferred tax assets in the amount of $1.1 million and such reduction was recognized as a benefit for income taxes for the three month period ended April 1, 2017 . Acquisition expenses were approximately $0.2 million and are recorded in selling, general and administration expenses. The following unaudited supplemental pro forma disclosures are provided for the three month periods ended April 1, 2017 and March 26, 2016 , assuming the acquisition of the company had occurred as of December 26, 2015 . All intercompany transactions have been eliminated. Three months ended April 1, March 26, Revenues $ 4,982,000 $ 6,374,000 Net loss (8,553,000 ) (7,312,000 ) For the three month period ended April 1, 2017 the revenues and net loss from the acquired company were $396,000 and $78,000 , respectively. |
SEGMENTS AND GEOGRAPHICAL INFOR
SEGMENTS AND GEOGRAPHICAL INFORMATION | 3 Months Ended |
Apr. 01, 2017 | |
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, Industrial, which includes the operations that develop and manufactur its reflective display products for test and simulation products, and Kopin, which includes the operations that develop and manufacture its other products. The following table presents the Company’s reportable segment results (in thousands): Three Months Ended April 01, 2017 Kopin Industrial Total Revenues $ 2,959 $ 1,419 $ 4,378 Net loss attributable to the controlling interest (7,911 ) 53 (7,858 ) Total assets 76,612 7,441 84,053 Long-lived assets 2,968 32 3,000 Three Months Ended March 26, 2016 Kopin Industrial Total Revenues $ 5,148 $ 971 $ 6,119 Net loss attributable to the controlling interest (6,571 ) (346 ) (6,917 ) Total assets 99,811 1,512 101,323 Long-lived assets 2,695 18 2,713 Property and Plant held for sale 861 — 861 The total assets of Kopin are net of $6.3 million and $5.2 million in intercompany loans to Industrial as of April 1, 2017 and March 26, 2016 , respectively. Previously the Company had two segments consisting of Kopin and FDD. The acquired company is included in the segment formerly known as FDD and the segment has been renamed to Industrial. During the three month periods ended April 1, 2017 and March 26, 2016 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended April 1, 2017 March 26, 2016 United States 49 % 29 % Others — % — % Americas 49 % 29 % Asia-Pacific 28 % 51 % Europe 23 % 20 % Total Revenues 100 % 100 % |
LITIGATION
LITIGATION | 3 Months Ended |
Apr. 01, 2017 | |
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. |
IMMATERIAL RESTATEMENT (Notes)
IMMATERIAL RESTATEMENT (Notes) | 3 Months Ended |
Apr. 01, 2017 | |
Risks and Uncertainties [Abstract] | |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | IMMATERIAL RESTATEMENT During the third quarter of 2016 , the Company discovered embezzlement activities at its Korean subsidiary. Based upon the results of forensic investigation procedures, the Company identified that the embezzlement activities occurred from fiscal year 2011 through fiscal year 2016 . The embezzlement resulted in a total theft loss of $1,589,000 over that period and as a result of the embezzlement we have made the following correcting adjustments to the amounts presented in our previously issued quarterly financial information. In the three month period ended March 26, 2016 , the Company has recorded in Other income (expense), net, embezzlement expense of approximately $77,000 , representing the total amount of theft loss that occurred during the first quarter of fiscal 2016 . Of that amount, $61,000 had previously been expensed, although misclassified ( $11,000 as Cost of component revenues and $50,000 as Foreign currency transaction losses), and $16,000 had been incurred but not yet recorded in the first quarter of 2016 . Accordingly, the embezzlement expense recorded in the accompanying financial statements includes the effects of correcting these misstatements. |
DUE TO_DUE FROM RELATED PARTIES
DUE TO/DUE FROM RELATED PARTIES (Notes) | 3 Months Ended |
Apr. 01, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Summary of Investments, Other than Investments in Related Parties [Text Block] | AMOUNTS DUE TO/DUE FROM AFFILATES During the first quarter of 2017 the Company had the following transactions with affiliates: Sales Purchases Affiliate 1 $ — $ 9,000 Affiliate 2 $ 62,000 $ — $ 62,000 $ 9,000 At April 1, 2017 , the Company had the following receivables and payables with affiliates: Receivables Payables Affiliate 1 $ — $ 1,000 Affiliate 2 $ 27,000 $ — $ 27,000 $ 1,000 |
Schedule of Related Party Transactions [Table Text Block] | At April 1, 2017 , the Company had the following receivables and payables with affiliates: Receivables Payables Affiliate 1 $ — $ 1,000 Affiliate 2 $ 27,000 $ — $ 27,000 $ 1,000 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 3 Months Ended |
Apr. 01, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 15. SUBSEQUENT EVENTS On April 20, 2017, the Company completed the sale of 7.6 million shares of the Company's common stock to Goertek, Inc. and received cash proceeds of approximately $24.7 million . The 7.6 million shares of the Company's common stock will be issued from the Company's treasury stock. |
CASH AND EQUIVALENTS AND MARK23
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 : Amortized Cost Unrealized Gains Unrealized Losses Fair Value 2017 2016 2017 2016 2017 2016 2017 2016 U.S. government and agency backed securities $ 35,116,536 $ 36,343,817 $ — $ — $ (201,268 ) $ (252,556 ) $ 34,915,268 $ 36,091,261 Corporate debt and certificates of deposit 14,475,561 25,323,428 — — (33,326 ) (39,288 ) 14,442,235 25,284,140 Total $ 49,592,097 $ 61,667,245 $ — $ — $ (234,594 ) $ (291,844 ) $ 49,357,503 $ 61,375,401 |
Marketable Debt Securities | The contractual maturity of the Company’s marketable debt securities is as follows at April 1, 2017 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 15,495,380 $ 15,501,588 $ 3,918,300 $ 34,915,268 Corporate debt and certificates of deposit 13,484,735 957,500 — 14,442,235 Total $ 28,980,115 $ 16,459,088 $ 3,918,300 $ 49,357,503 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 18,393,066 $ 18,393,066 $ — $ — U.S. Government Securities 34,915,268 6,943,660 27,971,608 — Corporate Debt 6,832,185 — 6,832,185 — Certificates of Deposit 7,610,050 — 7,610,050 — GCS Holdings 261,788 261,788 — — Warrant 274,000 — — 274,000 $ 68,286,357 $ 25,598,514 $ 42,413,843 $ 274,000 Fair Value Measurement December 31, 2016 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 15,822,495 $ 15,822,495 $ — $ — U.S. Government Securities 36,091,261 7,144,767 28,946,494 — Corporate Debt 7,557,029 — 7,557,029 — Certificates of Deposit 17,727,111 — 17,727,111 — GCS Holdings 331,454 331,454 — — $ 77,529,350 $ 23,298,716 $ 54,230,634 $ — |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 1, 2017 and December 31, 2016 : April 1, December 31, Raw materials $ 2,119,312 $ 1,986,491 Work-in-process 1,677,043 1,186,162 Finished goods 398,466 129,459 $ 4,194,821 $ 3,302,112 |
NET (LOSS) INCOME PER SHARE (Ta
NET (LOSS) INCOME PER SHARE (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Earnings Per Share [Abstract] | |
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 April 1, 2017 March 26, 2016 Non-vested restricted common stock 3,067,674 2,694,016 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
NonVested Restricted Common Stock | Shares Weighted Balance, December 31, 2016 3,007,674 $ 3.21 Granted 60,000 3.43 Forfeited — — Vested — — Balance, April 1, 2017 3,067,674 $ 3.22 |
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 three months ended April 1, 2017 and March 26, 2016 (no tax benefits were recognized): Three Months Ended April 1, March 26, Cost of component revenues $ 104,092 $ 142,534 Research and development 218,558 116,895 Selling, general and administrative 969,455 (202,975 ) Total $ 1,292,105 $ 56,454 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty | Changes in the accrued warranty for the three months ended April 1, 2017 are as follows: Balance, December 31, 2016 $ 518,000 Additions 100,000 Additions from acquisition 218,000 Claims (100,000 ) Balance, April 1, 2017 $ 736,000 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The allocation of the purchase price is as follows: Cash and marketable securities $ 2,600 Accounts receivable 490,700 Inventory 768,400 Other identifiable assets 46,800 Order backlog 840,000 Customer relationships 1,000,000 Developed technology 460,000 Trademark portfolio 160,000 Current liabilities (480,500 ) Net deferred tax liabilities (1,084,000 ) Goodwill 1,477,000 Total $ 3,681,000 |
Schedule of Goodwill [Table Text Block] | The Company’s goodwill balance is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,477,000 1,477,000 Change due to exchange rate fluctuations 5,925 — 5,925 Balance, April 1, 2017 $ 849,948 $ 1,477,000 $ 2,326,948 The Company’s goodwill balance is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,477,000 1,477,000 Change due to exchange rate fluctuations 5,925 — 5,925 Balance, April 1, 2017 $ 849,948 $ 1,477,000 $ 2,326,948 The identified intangible assets will be amortized on a straight-line basis over the following lives, in years: Order backlog 1 Customer relationships 2 Developed technology 2 Trademark portfolio 2 The Company recognized $0.2 million in amortization for the three months ended April 1, 2017 related to its intangible assets. In conjunction with the acquisition the Company recorded deferred tax liabilities of approximately $1.1 million associated with the future non-deductible amortization of the intangible assets. These deferred tax liabilities can be used to offset the Company’s net deferred tax assets in future years. The Company reduced the valuation allowance on its net deferred tax assets in the amount of $1.1 million and such reduction was recognized as a benefit for income taxes for the three month period ended April 1, 2017 . Acquisition expenses were approximately $0.2 million and are recorded in selling, general and administration expenses. The following unaudited supplemental pro forma disclosures are provided for the three month periods ended April 1, 2017 and March 26, 2016 , assuming the acquisition of the company had occurred as of December 26, 2015 . All intercompany transactions have been eliminated. Three months ended April 1, March 26, Revenues $ 4,982,000 $ 6,374,000 Net loss (8,553,000 ) (7,312,000 ) For the three month period ended April 1, 2017 the revenues and net loss from the acquired company were $396,000 and $78,000 , respectively. |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The identified intangible assets will be amortized on a straight-line basis over the following lives, in years: Order backlog 1 Customer relationships 2 Developed technology 2 Trademark portfolio 2 |
SEGMENTS AND GEOGRAPHICAL INF30
SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
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 April 01, 2017 Kopin Industrial Total Revenues $ 2,959 $ 1,419 $ 4,378 Net loss attributable to the controlling interest (7,911 ) 53 (7,858 ) Total assets 76,612 7,441 84,053 Long-lived assets 2,968 32 3,000 Three Months Ended March 26, 2016 Kopin Industrial Total Revenues $ 5,148 $ 971 $ 6,119 Net loss attributable to the controlling interest (6,571 ) (346 ) (6,917 ) Total assets 99,811 1,512 101,323 Long-lived assets 2,695 18 2,713 Property and Plant held for sale 861 — 861 |
Percentage of Net Revenues by Geographies | During the three month periods ended April 1, 2017 and March 26, 2016 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended April 1, 2017 March 26, 2016 United States 49 % 29 % Others — % — % Americas 49 % 29 % Asia-Pacific 28 % 51 % Europe 23 % 20 % Total Revenues 100 % 100 % |
DUE TO_DUE FROM RELATED PARTI31
DUE TO/DUE FROM RELATED PARTIES (Tables) | 3 Months Ended |
Apr. 01, 2017 | |
Related parties [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | At April 1, 2017 , the Company had the following receivables and payables with affiliates: Receivables Payables Affiliate 1 $ — $ 1,000 Affiliate 2 $ 27,000 $ — $ 27,000 $ 1,000 |
CASH AND EQUIVALENTS AND MARK32
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | $ 49,592,097 | $ 61,667,245 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (234,594) | (291,844) |
Fair Value | 49,357,503 | 61,375,401 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 28,980,115 | |
One to five years | 16,459,088 | |
Greater than five years | 3,918,300 | |
Available-for-sale Securities | 49,357,503 | |
U.S. government and agency backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 35,116,536 | 36,343,817 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (201,268) | (252,556) |
Fair Value | 34,915,268 | 36,091,261 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 15,495,380 | |
One to five years | 15,501,588 | |
Greater than five years | 3,918,300 | |
Available-for-sale Securities | 34,915,268 | |
Corporate debt and certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Debt Securities, Amortized Cost Basis | 14,475,561 | 25,323,428 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (33,326) | (39,288) |
Fair Value | 14,442,235 | $ 25,284,140 |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract] | ||
Less than one year | 13,484,735 | |
One to five years | 957,500 | |
Greater than five years | 0 | |
Available-for-sale Securities | $ 14,442,235 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Dec. 31, 2016 | |
Fair Value Measurements [Line Items] | ||
Noncash or Part Noncash Acquisition, Interest Acquired | 15.00% | |
Financial Instruments, Owned, at Fair Value | $ 68,286,357 | $ 77,529,350 |
Money Markets, Cash and Equivalents | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 18,393,066 | 15,822,495 |
U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 34,915,268 | 36,091,261 |
Corporate Debt | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 6,832,185 | 7,557,029 |
Certificates of Deposit | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 7,610,050 | 17,727,111 |
GCS Holdings [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 261,788 | |
GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 331,454 | |
Others [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 274,000 | |
Level 1 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 25,598,514 | 23,298,716 |
Level 1 | Money Markets, Cash and Equivalents | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 18,393,066 | 15,822,495 |
Level 1 | U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 6,943,660 | 7,144,767 |
Level 1 | GCS Holdings [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 261,788 | |
Level 1 | GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 331,454 | |
Level 1 | Others [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | |
Level 2 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 42,413,843 | 54,230,634 |
Level 2 | U.S. Government Securities | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 27,971,608 | 28,946,494 |
Level 2 | Corporate Debt | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 6,832,185 | 7,557,029 |
Level 2 | Certificates of Deposit | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 7,610,050 | 17,727,111 |
Level 2 | GCS Holdings [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | |
Level 2 | Others [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | |
Level 3 | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 274,000 | 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 Holdings [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | 0 | |
Level 3 | GCS | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 0 | |
Level 3 | Others [Member] | ||
Fair Value Measurements [Line Items] | ||
Financial Instruments, Owned, at Fair Value | $ 274,000 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,119,312 | $ 1,986,491 |
Work-in-process | 1,677,043 | 1,186,162 |
Finished goods | 398,466 | 129,459 |
Inventory | $ 4,194,821 | $ 3,302,112 |
NET (LOSS) INCOME PER SHARE (De
NET (LOSS) INCOME PER SHARE (Details) - shares | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average common shares outstanding, basic | 64,538,686 | 63,978,048 |
Weighted average common shares outstanding, diluted | 64,538,686 | 63,978,048 |
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 | 3,067,674 | 2,694,016 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Restricted Stock | |
Class of Warrant or Right [Line Items] | |
Unrecognized compensation cost related to nonvested stock awards | $ 5.3 |
Unrecognized compensation cost related to nonvested stock awards, period of recognition (in years) | 3 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) $ / shares in Units, $ in Millions | 3 Months Ended |
Apr. 01, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ | $ 1.6 |
Unvested Restricted Stock Awards | |
Shares | |
Beginning Balance | shares | 3,007,674 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 60,000 |
Forfeited | shares | 0 |
Vested | shares | 0 |
Ending Balance | shares | 3,067,674 |
Weighted Average Grant Fair Value | |
Beginning Balance | $ / shares | $ 3.21 |
Granted | $ / shares | 3.43 |
Forfeited | $ / shares | 0 |
Vested | $ / shares | 0 |
Ending Balance | $ / shares | $ 3.22 |
STOCK-BASED COMPENSATION - Expe
STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 1,292,105 | $ 56,454 |
Cost of product revenues | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 104,092 | 142,534 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | 218,558 | 116,895 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated Share-based Compensation Expense | $ 969,455 | $ (202,975) |
NOTE RECEIVABLE (Details)
NOTE RECEIVABLE (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Other Assets and Related Party Transactions Disclosure [Abstract] | ||
Proceeds from Divestiture of Businesses | $ 0 | $ 15,000,000 |
GOODWILL AND INTANGIBLES (Detai
GOODWILL AND INTANGIBLES (Details) - USD ($) | Apr. 01, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 2,326,948 | $ 844,023 |
ACCRUED WARRANTY (Details)
ACCRUED WARRANTY (Details) | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Product Warranties Disclosures [Abstract] | |
Product warranty term | 12 months |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Beginning Balance | $ 518,000 |
Additions | 100,000 |
Product Warranty Accrual, Noncurrent | 218,000 |
Claim and reversals | (100,000) |
Ending Balance | $ 736,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Mar. 26, 2016 | |
Income Taxes [Line Items] | ||
State income and foreign tax expenses | $ (1,146,000) | $ 141,000 |
Current Foreign Tax Expense (Benefit) | 62,000 | |
Deferred Tax Liabilities, Net | 1,100,000 | |
Valuation Allowances and Reserves, Additions for Adjustments | 1,100,000 | |
Net operating loss carryforwards available for tax purposes | 141,000,000 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Amount | $ 200,000 | |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent | 1650.00% |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Business Acquisition, Pro Forma Revenue | $ 4,982,000 | $ 6,374,000 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Amount | $ 200,000 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 2,600 | ||
Business Combination, Liabilities Arising from Contingencies, Amount Recognized | 490,700 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 768,400 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 46,800 | ||
Business Combination, Separately Recognized Transactions, Assets Recognized | 840,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,000,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 460,000 | ||
Business Combination, Contingent Consideration, Asset, Noncurrent | 160,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (480,500) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities, Current | (1,084,000) | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,477,000 | ||
Business Combination, Consideration Transferred | 3,681,000 | ||
Business Combination, Contingent Consideration, Asset | 2,000,000 | ||
Goodwill, Acquired During Period | 1,477,000 | ||
Goodwill, Period Increase (Decrease) | 849,948 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | 5,925 | ||
Deferred Tax Liabilities, Net | 1,100,000 | ||
Valuation Allowances and Reserves, Additions for Adjustments | 1,100,000 | ||
Business Acquisition, Transaction Costs | 200,000 | ||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 396,000 | ||
Business Acquisition, Pro Forma Net Income (Loss) | (8,553,000) | $ (7,312,000) | |
Goodwill | 2,326,948 | $ 844,023 | |
Others [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill, Period Increase (Decrease) | $ 1,477,000 |
SEGMENTS AND GEOGRAPHICAL INF44
SEGMENTS AND GEOGRAPHICAL INFORMATION (Details) - USD ($) | 3 Months Ended | ||
Apr. 01, 2017 | Mar. 26, 2016 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 4,378,127 | $ 6,119,138 | |
Net Income (Loss) Attributable to Parent | (7,858,441) | (6,933,461) | |
Assets | 84,052,693 | 99,811 | $ 87,832,272 |
Debt of Subsidiary, Not Assumed | $ 6,300,000 | $ 5,200,000 | |
Percentage of total revenue | 100.00% | 100.00% | |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of total revenue | 49.00% | 29.00% | |
Others [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of total revenue | 0.00% | 0.00% | |
Americas | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of total revenue | 49.00% | 29.00% | |
Asia-Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of total revenue | 28.00% | 51.00% | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of total revenue | 23.00% | 20.00% | |
Segment, Continuing Operations | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 4,378 | $ 6,119 | |
Net Income (Loss) Attributable to Parent | (7,858) | (6,917) | |
Assets | 84,053 | 101,323 | |
Long-Lived Assets | 3,000 | 2,713 | |
Segment, Continuing Operations | Kopin United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 2,959 | 5,148 | |
Net Income (Loss) Attributable to Parent | (7,911) | (6,571) | |
Assets | 76,612 | ||
Assets Held-for-sale, Not Part of Disposal Group | 861 | ||
Long-Lived Assets | 2,968 | 2,695 | |
Segment, Continuing Operations | Forth Dimension Displays Limited | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,419 | 971 | |
Net Income (Loss) Attributable to Parent | 53 | (346) | |
Assets | 7,441 | 1,512 | |
Long-Lived Assets | $ 32 | $ 18 |
IMMATERIAL RESTATEMENT (Details
IMMATERIAL RESTATEMENT (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 26, 2016 | Sep. 24, 2016 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Unusual or Infrequent Item, or Both, Gain, Gross | $ 1,589,000 | |
Unusual or Infrequent Item, or Both, Loss, Gross | $ 77,000 | |
Unusual or Infrequent Item, or Both, Net of Insurance Proceeds | 61,000 | |
Unusual or Infrequent Item, or Both, Net (Gain) Loss | 11,000 | |
Unusual or Infrequent Item, or Both, Tax Effect | 50,000 | |
Extraordinary Item, Gain (Loss), Gross | $ 16,000 |
DUE TO_DUE FROM RELATED PARTI46
DUE TO/DUE FROM RELATED PARTIES (Details) | 3 Months Ended |
Apr. 01, 2017USD ($) | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Accounts Payable, Related Parties | $ 1,000 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Related Party Transaction, Purchases from Related Party | 9,000 |
Accounts Payable, Related Parties | 27,000 |
Related Parties Amount in Cost of Sales | $ 62,000 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | 2 Months Ended | 3 Months Ended | |
Jun. 01, 2017 | Apr. 01, 2017 | Mar. 26, 2016 | |
Subsequent Event [Line Items] | |||
Business Combination, Consideration Transferred | $ 3,247,397 | $ 0 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Stock Issued During Period, Shares, Acquisitions | 7,600,000 | ||
Business Combination, Consideration Transferred | $ 24,700,000 |
Uncategorized Items - kopn-2017
Label | Element | Value |
Goodwill [Member] | ||
Goodwill, Period Increase (Decrease) | us-gaap_GoodwillPeriodIncreaseDecrease | $ 2,326,948 |