Kopin (KOPN) 10-Q 9 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 06, 2017
Document Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
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		75,336,563

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and equivalents	$ 25,882,554	$ 15,822,495
Marketable debt securities, at fair value	51,454,910	61,375,401
Accounts receivable, net of allowance of $149,000 in 2017 and $136,000 in 2016	2,023,618	1,664,488
Unbilled receivables	124,068	34,707
Inventory	5,949,010	3,302,112
Prepaid taxes	166,461	341,144
Prepaid expenses and other current assets	1,089,948	853,757
Total current assets	86,690,569	83,394,104
Property, plant and equipment, net	3,660,925	2,976,006
Goodwill	2,376,577	844,023
Intangible assets, net	1,356,546	0
Other assets	968,083	618,139
Total assets	95,052,700	87,832,272
Current liabilities:
Accounts payable	3,965,760	4,355,462
Accrued payroll and expenses	2,755,150	1,443,976
Accrued warranty	585,000	518,000
Billings in excess of revenue earned	728,281	981,761
Other accrued liabilities	4,792,347	2,560,144
Income tax payable	724,688	935,364
Deferred tax liabilities	2,606,312	2,571,000
Total current liabilities	16,157,538	13,365,707
Asset retirement obligations	268,068	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 79,669,818 shares in 2017 and 2016; outstanding 72,187,688 shares in 2017 and 64,538,686 shares in 2016	767,009	766,409
Additional paid-in capital	331,008,801	328,524,644
Treasury stock (4,513,256 shares in 2017 and 12,102,258 shares in 2016, at cost)	(17,238,669)	(42,741,551)
Accumulated other comprehensive income	2,346,909	1,570,971
Accumulated deficit	(238,319,253)	(214,042,787)
Total Kopin Corporation stockholders’ equity	78,564,797	74,077,686
Noncontrolling interest	62,297	141,957
Total stockholders’ equity	78,627,094	74,219,643
Total liabilities and stockholders’ equity	$ 95,052,700	$ 87,832,272

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 149,000	$ 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	79,669,818	79,648,618
Common stock, outstanding	72,187,688	64,538,686
Treasury stock, shares	4,513,256	12,102,258

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Revenues:
Net product revenues	$ 5,589,402	$ 5,522,584	$ 14,501,945	$ 15,597,247
Research and development revenues	549,765	272,222	1,942,819	671,972
Total revenues	6,139,167	5,794,806	16,444,764	16,269,219
Expenses:
Cost of product revenues	4,144,884	4,573,581	11,379,467	13,856,469
Research and development	5,253,860	4,123,268	14,213,950	12,282,620
Selling, general and administration	5,344,999	3,980,605	16,186,946	12,023,717
Gain on sale of property and plant	0	0	0	(7,700,522)
Total expenses	14,743,743	12,677,454	41,780,363	30,462,284
Loss from operations	(8,604,576)	(6,882,648)	(25,335,599)	(14,193,065)
Other income and expense:
Interest income	191,613	191,472	611,532	532,185
Other (expense) income, net	(109,546)	(257,384)	215,883	(415,758)
Foreign currency transaction gains (losses)	224,370	(1,124,526)	(410,373)	(1,581,962)
Gain on investments	0	0	274,000	0
Total other income and expense	306,437	(1,190,438)	691,042	(1,465,535)
Loss before benefit (provision) for income taxes and net (income) loss attributable to noncontrolling interest	(8,298,139)	(8,073,086)	(24,644,557)	(15,658,600)
Tax benefit (provision)	(4,500)	(114,000)	1,141,500	(2,218,000)
Net loss	(8,302,639)	(8,187,086)	(23,503,057)	(17,876,600)
Net loss (income) attributable to the noncontrolling interest	55,217	69,782	65,223	(367,640)
Net loss attributable to the controlling interest	$ (8,247,422)	$ (8,117,304)	$ (23,437,834)	$ (18,244,240)
Net (loss) income per share
Basic and diluted (usd per share)	$ (0.11)	$ (0.13)	$ (0.34)	$ (0.29)
Weighted average number of common shares
Basic and diluted (in shares)	72,187,688	64,047,852	69,117,640	64,012,490

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,302,639)	$ (8,187,086)	$ (23,503,057)	$ (17,876,600)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(272,618)	1,718,596	658,443	2,362,552
Unrealized holding gains on marketable securities	(29,584)	(73,443)	108,196	336,663
Reclassification of holding losses in net loss	(1,238)	(14,092)	(5,138)	(48,284)
Other comprehensive (loss) income	(303,440)	1,631,061	761,501	2,650,931
Comprehensive loss	(8,606,079)	(6,556,025)	(22,741,556)	(15,225,669)
Comprehensive income attributable to the noncontrolling interest	63,306	(19,656)	79,660	(482,520)
Comprehensive loss attributable to controlling interest	$ (8,542,773)	$ (6,575,681)	$ (22,661,896)	$ (15,708,189)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2017 - USD ($)	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Kopin Corporation Stockholders’ Equity	Noncontrolling Interest
Beginning balance at Dec. 31, 2016	$ 74,219,643	$ 766,409	$ 328,524,644	$ (42,741,551)	$ 1,570,971	$ (214,042,787)	$ 74,077,686	$ 141,957
Beginning Balance (in shares) at Dec. 31, 2016		76,640,943
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	2,484,757		2,484,757				2,484,757
Vesting of restricted stock		$ 600	(600)
Vesting of restricted stock (shares)		60,000
Other comprehensive income	761,501				775,938		775,938	(14,437)
Sale of unregistered stock	24,664,250			25,502,882			24,664,250
Net loss	(23,503,057)					(23,437,834)	(23,437,834)	(65,223)
Ending balance at Sep. 30, 2017	$ 78,627,094	$ 767,009	$ 331,008,801	$ (17,238,669)	$ 2,346,909	$ (238,319,253)	$ 78,564,797	$ 62,297
Ending Balance (in shares) at Sep. 30, 2017		76,700,943

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016
Cash flows from operating activities:
Net loss	$ (23,503,057)	$ (17,876,600)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	1,878,363	949,854
Accretion of premium or discount on marketable debt securities	40,204	104,282
Stock-based compensation	2,990,157	1,479,481
Foreign currency losses	400,542	1,715,901
Unrealized gain on warrant	(274,000)	0
Deferred income taxes	(1,170,017)	1,192,128
Gain on sale of property and plant	0	(7,700,522)
Other non-cash items	673,720	503,115
Change in warranty reserves	68,003	0
Changes in assets and liabilities, net of acquired assets and liabilities:
Accounts receivable	71,400	(524,084)
Inventory	(2,519,197)	(1,231,705)
Prepaid expenses and other current assets	13,345	213,028
Accounts payable and accrued expenses	1,743,215	1,271,171
Billings in excess of revenue earned	(253,480)	(132,740)
Net cash used in operating activities	(19,840,802)	(20,036,691)
Cash flows from investing activities:
Other assets	(79,916)	(7,801)
Capital expenditures	(1,341,744)	(329,414)
Proceeds from sale of marketable debt securities	33,395,422	43,836,978
Purchase of marketable debt securities	(22,974,668)	(45,905,075)
Proceeds from sale of property and plant	0	8,106,819
Cash paid for acquisition, net of cash acquired	(3,690,047)	0
Proceeds from sale of III-V product line	0	15,000,000
Net cash provided by investing activities	5,309,047	20,701,507
Cash flows from financing activities:
Sale of unregistered stock	24,664,250	0
Settlements of restricted stock for tax withholding obligations	0	(9,153)
Net cash provided by (used in) financing activities	24,664,250	(9,153)
Effect of exchange rate changes on cash	(72,436)	574,850
Net increase in cash and equivalents	10,060,059	1,230,513
Cash and equivalents:
Beginning of period	15,822,495	19,767,889
End of period	25,882,554	20,998,402
Supplemental disclosure of cash flow information:
Income taxes paid	$ 0	$ 366,000

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION The condensed consolidated financial statements of Kopin Corporation (the Company) as of September 30, 2017 and for the three and nine month periods ended September 30, 2017 and September 24, 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 March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is an amendment on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses issues to clarify the principal versus agent assessment and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which contains amendments to the new revenue recognition standard on identifying performance obligations and accounting for licenses of intellectual property. The amendments related to identifying performance obligations clarify when a promised good or service is separately identifiable and allows entities to disregard items that are immaterial in the context of a contract. The licensing implementation amendments clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether revenue is recognized over time or at a point in time. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarity and implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The new standards have the same effective date and transition requirements as ASU 2014-09. 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 continues to evaluate the potential impact of ASC 606 on its consolidated financial statements and related disclosures. As part of the Company's assessment work to date, the Company with assistance from an external consulting firm is continuing to review and finalize its conclusions relative to is contracts with customers. For the remainder of 2017, the Company plans to finalize its evaluation and implement any required policy, process, and internal control changes required as a result of that evaluation. While the Company continues to assess all potential impacts of the new standard on its consolidated financial statements, the adoption of ASC 606 may accelerate the timing of revenue recognition for certain research and development contracts and the sale of products to military programs whereby revenue will be recognized as the product is produced (as opposed to at a point in time when the product is shipped to the customer) as the Company has an enforceable right to payment for performance completed to date and the inventory has no alternative use. Upon the adoption of ASC 606 using the modified retrospective method on December 31, 2017, the Company expects to record an adjustment to accumulated deficit for the amount that would have been recognized in 2017 under the new guidance and would not have been recognized until shipment of the product in 2018 under the current guidance. The new standard will also require an enhanced level of disclosures in the Company’s quarterly and annual consolidated financial statements. 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 expects to complete its assessment in 2018 and is required to adopt ASU 2016-02 as of January 1, 2019 using the modified retrospective method. The Company expects the potential impact of adopting ASU 2016-02 to be material to our lease liabilities and assets on its consolidated balance sheets. 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 carrying amount of a reporting unit exceeds its fair value. 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	9 Months Ended
	Sep. 30, 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 and nine months ended September 30, 2017 and the year ended December 31, 2016 . Investments in available-for-sale marketable debt securities are as follows at September 30, 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 $ 36,365,672 $ 36,343,817 $ — $ — $ (180,768 ) $ (252,556 ) $ 36,184,904 $ 36,091,261 Corporate debt and certificates of deposit 15,311,458 25,323,428 — — (41,452 ) (39,288 ) 15,270,006 25,284,140 Total $ 51,677,130 $ 61,667,245 $ — $ — $ (222,220 ) $ (291,844 ) $ 51,454,910 $ 61,375,401 The contractual maturity of the Company’s marketable debt securities is as follows at September 30, 2017 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 21,245,723 $ 12,993,121 $ 1,946,060 $ 36,184,904 Corporate debt and certificates of deposit 9,585,467 5,684,539 — 15,270,006 Total $ 30,831,190 $ 18,677,660 $ 1,946,060 $ 51,454,910 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 nine months ended September 30, 2017 and September 24, 2016 .

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 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 September 30, 2017 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 25,882,554 $ 25,882,554 $ — $ — U.S. Government Securities 36,184,904 6,923,591 29,261,313 — Corporate Debt 7,652,455 — 7,652,455 — Certificates of Deposit 7,617,551 — 7,617,551 — GCS Holdings 365,017 365,017 — — Warrant 274,000 — — 274,000 $ 77,976,481 $ 33,171,162 $ 44,531,319 $ 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	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 Raw materials $ 2,517,803 $ 1,986,491 Work-in-process 2,552,517 1,186,162 Finished goods 878,690 129,459 $ 5,949,010 $ 3,302,112

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
NET LOSS 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 Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Non-vested restricted common stock 2,968,874 2,692,516 2,968,874 2,692,516

STOCKHOLDERS' EQUITY AND STOCK-

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION	STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION On April 20, 2017, the Company sold 7,589,000 shares of unregistered common stock to Goertek Inc. for $24,664,250 ( $3.25 per share). This represents approximately 10.1% of Kopin’s total outstanding shares of common stock as of the date of purchase. In addition, Kopin and Goertek have entered into agreements to jointly develop and commercialize a range of technologies and wearable products. Goertek is a leading innovative global technology company headquartered in Weifang, China that designs and manufactures a range of consumer electronics products for brand customers including wearables, virtual and augmented reality headsets, and audio products. The transaction was accounted for under FASB ASC 505-30 " Treasury Stock ", and the loss on the sale of the treasury stock of approximately $0.8 million was charged to retained earnings. See "Note 13. Amounts Due To/Due From Affiliates" for additional discussion around agreements with Goertek. Non-Vested Restricted Common Stock 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-market. 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. Shares Weighted Balance, December 31, 2016 3,007,674 $ 3.21 Granted 120,000 3.44 Forfeited (98,800 ) 3.17 Vested (60,000 ) 1.70 Balance, September 30, 2017 2,968,874 $ 3.26 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 and nine months ended September 30, 2017 and September 24, 2016 (no tax benefits were recognized): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Cost of product revenues $ 142,604 $ 136,420 $ 405,778 $ 426,357 Research and development 203,288 129,308 616,500 378,156 Selling, general and administrative 676,137 262,700 1,967,879 674,968 Total $ 1,022,029 $ 528,428 $ 2,990,157 $ 1,479,481 Unrecognized compensation expense for non-vested restricted common stock as of September 30, 2017 totaled $3.8 million and is expected to be recognized over a weighted average period of approximately two years. The selling, general and administrative expense includes Liability Awards and the increase in expense for the nine months ended September 30, 2017 as compared to September 24, 2016 is partially the result of a higher stock price of the Company at September 30, 2017 as compared to September 24, 2016 . Included in Other accrued liabilities is $1.6 million in deferred compensation from equity awards which are classified as Liability Awards.

NOTE RECEIVABLE

NOTE RECEIVABLE	9 Months Ended
	Sep. 30, 2017
Receivables [Abstract]
NOTE RECEIVABLE	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	9 Months Ended
	Sep. 30, 2017
Product Warranties Disclosures [Abstract]
ACCRUED WARRANTY	ACCRUED WARRANTY The Company typically warrants its products against defect for 12 months , however, for certain products a customer may purchase an extended warranty. 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 nine months ended September 30, 2017 are as follows: Balance, December 31, 2016 $ 518,000 Additions 83,000 Claims (16,000 ) Balance, September 30, 2017 $ 585,000 Extended Warranties Deferred revenue represents the purchase of extended warranties by the Company's customers. The Company recognizes revenue from an extended warranty on the straight-line method over the life of the extended warranty, which is typically 12 to 15 months beyond the standard 12 month warranty. The Company classifies deferred revenue under other accrued liabilities in its consolidated balance sheets. The Company currently has $0.5 million of deferred revenue related to extended warranties.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s tax benefit of approximately $1.1 million for the nine months ended September 30, 2017 represents the net of $0.1 million for foreign income taxes related to uncertain tax positions and a benefit for the net reduction in estimated foreign withholding. We reduced the valuation allowance on our net deferred tax assets in the amount of $1.0 million and such reduction was recognized as a benefit for income taxes for the nine months ended September 30, 2017 . The Company’s tax provision of approximately $0.1 million for the three months ended September 24, 2016 , represents less than $14,000 of state income tax and $0.1 million of foreign income taxes including interest income on intercompany loan and net movement in estimated foreign withholding. The Company’s tax provision of approximately $2.2 million for the nine months ended September 24, 2016 , represents $1.0 million of income taxes on the gain on the sale of Kowon’s plant and land, $1.2 million of net movement in estimated foreign withholding on anticipated future remitted earnings of a foreign subsidiary, and $22,000 in state income taxes. As of September 30, 2017 , the Company has available for tax purposes U.S. federal NOLs of approximately $153.0 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. 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. 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 AND GOODWI

BUSINESS COMBINATION AND GOODWILL	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
BUSINESS COMBINATION AND GOODWILL	BUSINESS COMBINATION AND GOODWILL In March 2017 , the Company purchased 100% of a company for $3.7 million . The acquired company produces virtual reality systems for 3D applications. 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 a requirement to remain employed to earn the contingent payments, these contingent payments 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. 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 1,489,000 Total $ 3,693,000 Goodwill represents the recording of the excess of the purchase price over the fair values of the net tangible assets acquired. The values assigned to the acquired assets and liabilities are based on preliminary estimates of fair value available as of the date of this filing and will be adjusted upon completion of final valuations of certain assets and liabilities. Any changes in these fair values could potentially result in an adjustment to the goodwill recorded for this transaction. 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 $1.1 million in amortization for the nine month period ended September 30, 2017 related to its intangible assets. In conjunction with the acquisition the Company recorded deferred tax liabilities of approximately $1.0 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 $1.0 million and such reduction was recognized as a benefit for income taxes for the nine month period ended September 30, 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 and nine month period s ended September 24, 2016 and the nine month period ended September 30, 2017 , assuming the acquisition of the company had occurred as of December 26, 2015 . All intercompany transactions have been eliminated. Three months ended Nine months ended September 24, 2016 September 30, 2017 September 24, 2016 Revenues $ 6,698,701 $ 17,081,144 $ 17,894,777 Net loss (7,710,770 ) (23,271,116 ) (18,226,203 ) Since the date of acquisition, the Company recorded revenue and net loss of $1.9 million and $0.1 million , respectively, in the three month period ended September 30, 2017 , and for the nine month period ended September 30, 2017 the revenues and net loss from the acquired company were $3.7 million and $0.5 million , respectively. A rollforward of the Company's goodwill by segment is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,488,650 1,488,650 Change due to exchange rate fluctuations 43,904 — 43,904 Balance, September 30, 2017 $ 887,927 $ 1,488,650 $ 2,376,577 The Company has entered into two joint venture agreements and other agreements which are subject to certain closing conditions including government approvals. If the transactions close the Company will contribute certain intellectual property and approximately $8.0 million .

SEGMENTS AND GEOGRAPHICAL INFOR

SEGMENTS AND GEOGRAPHICAL INFORMATION	9 Months Ended
	Sep. 30, 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 manufacture its reflective display products and virtual reality systems for test and simulation products, and Kopin, which includes the operations that develop and manufacture its other products. 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. The following table presents the Company’s reportable segment results (in thousands): Three Months Ended September 30, 2017 September 24, 2016 Kopin Industrial Total Kopin Industrial Total Revenues $ 3,744 $ 2,395 $ 6,139 $ 4,708 $ 1,087 $ 5,795 Net loss attributable to the controlling interest (8,117 ) (130 ) (8,247 ) (7,901 ) (216 ) (8,117 ) Nine Months Ended September 30, 2017 September 24, 2016 Kopin Industrial Total Kopin Industrial Total Revenues $ 10,409 $ 6,036 $ 16,445 $ 13,176 $ 3,093 $ 16,269 Net loss attributable to the controlling interest (23,170 ) (268 ) (23,438 ) (17,628 ) (616 ) (18,244 ) Total assets 87,043 8,010 95,053 92,799 1,699 94,498 Long-lived assets 3,544 117 3,661 2,937 — 2,937 The total assets of Kopin are net of $6.0 million and $6.2 million in intercompany loans to Industrial as of September 30, 2017 and September 24, 2016 , respectively. During the three and nine month periods ended September 30, 2017 and September 24, 2016 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 United States 47 % 49 % 48 % 36 % Asia-Pacific 22 % 37 % 25 % 48 % Europe 31 % 14 % 27 % 16 % Total Revenues 100 % 100 % 100 % 100 %

LITIGATION

LITIGATION	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	LITIGATION The Company may be named 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.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS The Company may from time to time enter into agreements with shareholders, affiliates and other companies engaged in certain aspects of the display, electronics, optical and software industries as part of our business strategy. In addition, the wearable computing product market is relatively new and there may be other technologies the Company needs to purchase from affiliates in order to enhance its product offering. The Company and Goertek have entered into agreements to jointly develop and commercialize a range of technologies and wearable products. These include: a mutual exclusive supply and manufacturing arrangement for a certain display product for twenty four months after mass production begins; an agreement that provides the Company with the right of first refusal to invest in certain manufacturing capacity for certain products with Goertek; an agreement whereby Goertek will provide system level original equipment manufacturing services for the Company's wearable products; an arrangement whereby the Company will supply display modules for Goertek's virtual reality and augmented reality products; and other agreements related to promotion around certain products as well as providing designs relating to head mounted displays. During the three and nine month periods ended September 30, 2017 , the Company had the following transactions with related parties: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Sales Purchases Sales Purchases Goertek $ — $ 207,694 $ — $ 390,619 Affiliate 1 48,320 — 109,952 — $ 48,320 $ 207,694 $ 109,952 $ 390,619 At September 30, 2017 , the Company had the following receivables and payables with related parties: Receivables Payables Goertek $ — $ 103,100

EMBEZZLEMENT

EMBEZZLEMENT	9 Months Ended
	Sep. 30, 2017
Prior Period Adjustment [Abstract]
IMMATERIAL RESTATEMENT	EMBEZZLEMENT 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 the Company has made the following correcting adjustments to the amounts presented in its previously issued quarterly financial information. In the three and nine month periods ended September 24, 2016 , the Company has recorded in Other income (expense), net, embezzlement expense of approximately $200,000 and $420,000 , respectively, representing the total amount of theft loss that occurred.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Recently Issued Accounting Pronouncements	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 March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , which is an amendment on assessing whether an entity is a principal or an agent in a revenue transaction. This amendment addresses issues to clarify the principal versus agent assessment and lead to more consistent application. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , which contains amendments to the new revenue recognition standard on identifying performance obligations and accounting for licenses of intellectual property. The amendments related to identifying performance obligations clarify when a promised good or service is separately identifiable and allows entities to disregard items that are immaterial in the context of a contract. The licensing implementation amendments clarify how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether revenue is recognized over time or at a point in time. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which provides clarity and implementation guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The new standards have the same effective date and transition requirements as ASU 2014-09. 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 continues to evaluate the potential impact of ASC 606 on its consolidated financial statements and related disclosures. As part of the Company's assessment work to date, the Company with assistance from an external consulting firm is continuing to review and finalize its conclusions relative to is contracts with customers. For the remainder of 2017, the Company plans to finalize its evaluation and implement any required policy, process, and internal control changes required as a result of that evaluation. While the Company continues to assess all potential impacts of the new standard on its consolidated financial statements, the adoption of ASC 606 may accelerate the timing of revenue recognition for certain research and development contracts and the sale of products to military programs whereby revenue will be recognized as the product is produced (as opposed to at a point in time when the product is shipped to the customer) as the Company has an enforceable right to payment for performance completed to date and the inventory has no alternative use. Upon the adoption of ASC 606 using the modified retrospective method on December 31, 2017, the Company expects to record an adjustment to accumulated deficit for the amount that would have been recognized in 2017 under the new guidance and would not have been recognized until shipment of the product in 2018 under the current guidance. The new standard will also require an enhanced level of disclosures in the Company’s quarterly and annual consolidated financial statements. 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 expects to complete its assessment in 2018 and is required to adopt ASU 2016-02 as of January 1, 2019 using the modified retrospective method. The Company expects the potential impact of adopting ASU 2016-02 to be material to our lease liabilities and assets on its consolidated balance sheets. 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 carrying amount of a reporting unit exceeds its fair value. 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 MARK23

CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 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 $ 36,365,672 $ 36,343,817 $ — $ — $ (180,768 ) $ (252,556 ) $ 36,184,904 $ 36,091,261 Corporate debt and certificates of deposit 15,311,458 25,323,428 — — (41,452 ) (39,288 ) 15,270,006 25,284,140 Total $ 51,677,130 $ 61,667,245 $ — $ — $ (222,220 ) $ (291,844 ) $ 51,454,910 $ 61,375,401
Marketable Debt Securities	The contractual maturity of the Company’s marketable debt securities is as follows at September 30, 2017 : Less than One year One to Five years Greater than Five years Total U.S. government and agency backed securities $ 21,245,723 $ 12,993,121 $ 1,946,060 $ 36,184,904 Corporate debt and certificates of deposit 9,585,467 5,684,539 — 15,270,006 Total $ 30,831,190 $ 18,677,660 $ 1,946,060 $ 51,454,910

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 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 September 30, 2017 Using: Total Level 1 Level 2 Level 3 Cash and Equivalents $ 25,882,554 $ 25,882,554 $ — $ — U.S. Government Securities 36,184,904 6,923,591 29,261,313 — Corporate Debt 7,652,455 — 7,652,455 — Certificates of Deposit 7,617,551 — 7,617,551 — GCS Holdings 365,017 365,017 — — Warrant 274,000 — — 274,000 $ 77,976,481 $ 33,171,162 $ 44,531,319 $ 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)	9 Months Ended
	Sep. 30, 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 September 30, 2017 and December 31, 2016 : September 30, 2017 December 31, 2016 Raw materials $ 2,517,803 $ 1,986,491 Work-in-process 2,552,517 1,186,162 Finished goods 878,690 129,459 $ 5,949,010 $ 3,302,112

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Non-vested restricted common stock 2,968,874 2,692,516 2,968,874 2,692,516

STOCKHOLDERS' EQUITY AND STOC27

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 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 120,000 3.44 Forfeited (98,800 ) 3.17 Vested (60,000 ) 1.70 Balance, September 30, 2017 2,968,874 $ 3.26
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 and nine months ended September 30, 2017 and September 24, 2016 (no tax benefits were recognized): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 Cost of product revenues $ 142,604 $ 136,420 $ 405,778 $ 426,357 Research and development 203,288 129,308 616,500 378,156 Selling, general and administrative 676,137 262,700 1,967,879 674,968 Total $ 1,022,029 $ 528,428 $ 2,990,157 $ 1,479,481

ACCRUED WARRANTY (Tables)

ACCRUED WARRANTY (Tables)	9 Months Ended
	Sep. 30, 2017
Product Warranties Disclosures [Abstract]
Accrued Warranty	Changes in the accrued warranty for the nine months ended September 30, 2017 are as follows: Balance, December 31, 2016 $ 518,000 Additions 83,000 Claims (16,000 ) Balance, September 30, 2017 $ 585,000

BUSINESS COMBINATION AND GOOD29

BUSINESS COMBINATION AND GOODWILL (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Allocation of the Purchase Price	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 1,489,000 Total $ 3,693,000
Identified Intangible Assets	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
Schedule of Goodwill	A rollforward of the Company's goodwill by segment is as follows: Kopin Industrial Total Balance, December 31, 2016 $ 844,023 $ — $ 844,023 March 2017 acquisition — 1,488,650 1,488,650 Change due to exchange rate fluctuations 43,904 — 43,904 Balance, September 30, 2017 $ 887,927 $ 1,488,650 $ 2,376,577

SEGMENTS AND GEOGRAPHICAL INF30

SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following table presents the Company’s reportable segment results (in thousands): Three Months Ended September 30, 2017 September 24, 2016 Kopin Industrial Total Kopin Industrial Total Revenues $ 3,744 $ 2,395 $ 6,139 $ 4,708 $ 1,087 $ 5,795 Net loss attributable to the controlling interest (8,117 ) (130 ) (8,247 ) (7,901 ) (216 ) (8,117 ) Nine Months Ended September 30, 2017 September 24, 2016 Kopin Industrial Total Kopin Industrial Total Revenues $ 10,409 $ 6,036 $ 16,445 $ 13,176 $ 3,093 $ 16,269 Net loss attributable to the controlling interest (23,170 ) (268 ) (23,438 ) (17,628 ) (616 ) (18,244 ) Total assets 87,043 8,010 95,053 92,799 1,699 94,498 Long-lived assets 3,544 117 3,661 2,937 — 2,937
Percentage of Net Revenues by Geographies	During the three and nine month periods ended September 30, 2017 and September 24, 2016 , the Company derived its sales from the following geographies (as a percentage of net revenues): Three Months Ended Nine Months Ended September 30, 2017 September 24, 2016 September 30, 2017 September 24, 2016 United States 47 % 49 % 48 % 36 % Asia-Pacific 22 % 37 % 25 % 48 % Europe 31 % 14 % 27 % 16 % Total Revenues 100 % 100 % 100 % 100 %

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	During the three and nine month periods ended September 30, 2017 , the Company had the following transactions with related parties: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2017 Sales Purchases Sales Purchases Goertek $ — $ 207,694 $ — $ 390,619 Affiliate 1 48,320 — 109,952 — $ 48,320 $ 207,694 $ 109,952 $ 390,619 At September 30, 2017 , the Company had the following receivables and payables with related parties: Receivables Payables Goertek $ — $ 103,100

CASH AND EQUIVALENTS AND MARK32

CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 51,677,130	$ 61,667,245
Unrealized Gains	0	0
Unrealized Losses	(222,220)	(291,844)
Fair Value	51,454,910	61,375,401
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Less than one year	30,831,190
One to five years	18,677,660
Greater than five years	1,946,060
Available-for-sale Securities	51,454,910
U.S. government and agency backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	36,365,672	36,343,817
Unrealized Gains	0	0
Unrealized Losses	(180,768)	(252,556)
Fair Value	36,184,904	36,091,261
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Less than one year	21,245,723
One to five years	12,993,121
Greater than five years	1,946,060
Available-for-sale Securities	36,184,904
Corporate debt and certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,311,458	25,323,428
Unrealized Gains	0	0
Unrealized Losses	(41,452)	(39,288)
Fair Value	15,270,006	$ 25,284,140
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
Less than one year	9,585,467
One to five years	5,684,539
Greater than five years	0
Available-for-sale Securities	$ 15,270,006

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	$ 77,976,481	$ 77,529,350
Noncash or Part Noncash Acquisition, Interest Acquired	15.00%
Cash and Equivalents
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	$ 25,882,554	15,822,495
U.S. Government Securities
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	36,184,904	36,091,261
Corporate Debt
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	7,652,455	7,557,029
Certificates of Deposit
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	7,617,551	17,727,111
GCS Holdings
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	365,017	331,454
Warrant [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	33,171,162	23,298,716
Level 1 | Cash and Equivalents
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	25,882,554	15,822,495
Level 1 | U.S. Government Securities
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	6,923,591	7,144,767
Level 1 | GCS Holdings
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	365,017	331,454
Level 1 | Warrant [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	44,531,319	54,230,634
Level 2 | U.S. Government Securities
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	29,261,313	28,946,494
Level 2 | Corporate Debt
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	7,652,455	7,557,029
Level 2 | Certificates of Deposit
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	7,617,551	17,727,111
Level 2 | GCS Holdings
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	0
Level 2 | Warrant [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 | 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
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	0	$ 0
Level 3 | Warrant [Member]
Fair Value Measurements [Line Items]
Financial Instruments, Owned, at Fair Value	$ 274,000

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 2,517,803	$ 1,986,491
Work-in-process	2,552,517	1,186,162
Finished goods	878,690	129,459
Inventory	$ 5,949,010	$ 3,302,112

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
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	2,968,874	2,692,516	2,968,874	2,692,516

STOCKHOLDERS' EQUITY AND STOC36

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION (Details) - USD ($)	Apr. 22, 2017	Sep. 30, 2017
Class of Warrant or Right [Line Items]
Sale of unregistered stock		$ 24,664,250
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid		1,600,000
Restricted Stock
Class of Warrant or Right [Line Items]
Unrecognized compensation cost related to nonvested stock awards		$ 3,800,000
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
Sale of Stock to Goertek
Class of Warrant or Right [Line Items]
Sale of Stock, Number of Shares Issued in Transaction	7,589,000
Sale of unregistered stock	$ 24,664,250
Price per share	$ 3.25
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners	10.10%
Accumulated Deficit
Class of Warrant or Right [Line Items]
Gain (Loss) on Sale of Treasury Stock	$ (800,000)

STOCKHOLDERS' EQUITY AND STOC37

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION - Summary of Activity for Nonvested Restricted Common Stock Awards (Details) - Unvested Restricted Stock Awards	9 Months Ended
	Sep. 30, 2017$ / sharesshares
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	120,000
Forfeited | shares	(98,800)
Vested | shares	(60,000)
Ending Balance | shares	2,968,874
Weighted Average Grant Fair Value
Beginning Balance | $ / shares	$ 3.21
Granted | $ / shares	3.44
Forfeited | $ / shares	3.17
Vested | $ / shares	1.70
Ending Balance | $ / shares	$ 3.26

STOCKHOLDERS' EQUITY AND STOC38

STOCKHOLDERS' EQUITY AND STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 1,022,029	$ 528,428	$ 2,990,157	$ 1,479,481
Cost of product revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	142,604	136,420	405,778	426,357
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	203,288	129,308	616,500	378,156
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Allocated Share-based Compensation Expense	$ 676,137	$ 262,700	$ 1,967,879	$ 674,968

NOTE RECEIVABLE (Details)

NOTE RECEIVABLE (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016
Receivables [Abstract]
Proceeds from sale of III-V product line	$ 0	$ 15,000,000

GOODWILL AND INTANGIBLES (Detai

GOODWILL AND INTANGIBLES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 2,376,577	$ 844,023

ACCRUED WARRANTY (Details)

ACCRUED WARRANTY (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Deferred Revenue Arrangement [Line Items]
Product warranty term	12 months
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning Balance	$ 518,000
Additions	83,000
Claim and reversals	(16,000)
Ending Balance	585,000
Extended Warranties [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue	$ 500,000
Minimum [Member]
Deferred Revenue Arrangement [Line Items]
Extended Warranty Period	12 months
Maximum [Member]
Deferred Revenue Arrangement [Line Items]
Extended Warranty Period	15 months

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016
Income Taxes [Line Items]
Tax benefit (provision)	$ (4,500)	$ (114,000)	$ 1,141,500	$ (2,218,000)
Current Foreign Tax Expense (Benefit)	100,000	100,000
Deferred Tax Liabilities, Net	1,000,000		1,000,000
Reduction in net deferred tax assets	1,000,000		1,000,000
Current State and Local Tax Expense (Benefit)		$ 14,000		22,000
Foreign Earnings Repatriated				1,200,000
Net operating loss carryforwards available for tax purposes	$ 153,000,000		$ 153,000,000
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent			16.50%
Kowon [Member]
Income Taxes [Line Items]
Gain (Loss) on Sale of Properties, Applicable Income Taxes				$ 1,000,000

BUSINESS COMBINATION AND GOOD43

BUSINESS COMBINATION AND GOODWILL (Details) - USD ($)	Mar. 07, 2017	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 30, 2017	Sep. 24, 2016
Business Acquisition [Line Items]
Percentage of Voting Interests Acquired	100.00%
Consideration transferred	$ 3,693,000
Business Combination, Contingent Consideration, Asset	$ 2,000,000
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amortization, Amount					$ 1,100,000
Deferred Tax Liabilities, Net		$ 1,000,000		$ 1,000,000	1,000,000
Reduction in net deferred tax assets		1,000,000			1,000,000
Business Acquisition, Transaction Costs		200,000		200,000	200,000
Business Acquisition, Pro Forma Revenue			$ 6,698,701		17,081,144	$ 17,894,777
Business Acquisition, Pro Forma Net Income (Loss)			$ (7,710,770)		(23,271,116)	$ (18,226,203)
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period		1,900,000		3,700,000
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual		$ (100,000)		$ (500,000)
Intellectual Property					$ 8,000,000

BUSINESS COMBINATION AND GOOD44

BUSINESS COMBINATION AND GOODWILL - Purchase Price Allocation (Details)	Mar. 07, 2017USD ($)
Business Combinations [Abstract]
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	1,489,000
Total	$ 3,693,000

BUSINESS COMBINATION AND GOOD45

BUSINESS COMBINATION AND GOODWILL - Intangible Asset Amortization (Details)	9 Months Ended
	Sep. 30, 2017
Order backlog
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization period	1 year
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization period	2 years
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization period	2 years
Trademark portfolio
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization period	2 years

BUSINESS COMBINATION AND GOOD46

BUSINESS COMBINATION AND GOODWILL - Changes in Goodwill (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill [Roll Forward]
December 31, 2016	$ 844,023
March 2017 acquisition	1,488,650
Change due to exchange rate fluctuations	43,904
September 30, 2017	2,376,577
Kopin United States [Member]
Goodwill [Roll Forward]
December 31, 2016	844,023
March 2017 acquisition	0
Change due to exchange rate fluctuations	43,904
September 30, 2017	887,927
Industrial [Member]
Goodwill [Roll Forward]
December 31, 2016	0
March 2017 acquisition	1,488,650
Change due to exchange rate fluctuations	0
September 30, 2017	$ 1,488,650

SEGMENTS AND GEOGRAPHICAL INF47

SEGMENTS AND GEOGRAPHICAL INFORMATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 24, 2016	Sep. 30, 2017	Sep. 24, 2016	Dec. 31, 2016	Dec. 26, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 6,139,167	$ 5,794,806	$ 16,444,764	$ 16,269,219
Net Income (Loss) Attributable to Parent	(8,247,422)	(8,117,304)	(23,437,834)	(18,244,240)
Total assets	95,052,700	94,498,000	95,052,700	94,498,000	$ 87,832,272
Long-Lived Assets	3,661,000	2,937,000	3,661,000	2,937,000
Debt of Subsidiary, Not Assumed	$ 6,000,000	$ 6,200,000	$ 6,000,000	$ 6,200,000
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	47.00%	49.00%	48.00%	36.00%
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total revenue	22.00%	37.00%	25.00%	48.00%
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Percentage of total revenue	31.00%	14.00%	27.00%	16.00%
Kopin United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Total assets	$ 87,043,000	$ 92,799,000	$ 87,043,000	$ 92,799,000
Long-Lived Assets	3,544,000		3,544,000			$ 2,937,000
Industrial [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total assets	8,010,000	1,699,000	8,010,000	1,699,000
Long-Lived Assets	117,000	0	117,000	0
Segment, Continuing Operations
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,139,000	5,795,000	16,445,000	16,269,000
Net Income (Loss) Attributable to Parent	(8,247,000)	(8,117,000)	(23,438,000)	(18,244,000)
Segment, Continuing Operations | Kopin United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,744,000	4,708,000	10,409,000	13,176,000
Net Income (Loss) Attributable to Parent	(8,117,000)	(7,901,000)	(23,170,000)	(17,628,000)
Segment, Continuing Operations | Industrial [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,395,000	1,087,000	6,036,000	3,093,000
Net Income (Loss) Attributable to Parent	$ (130,000)	$ (216,000)	$ (268,000)	$ (616,000)

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended	9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)
Related Party Transactions [Abstract]
Receivables	$ 0	$ 0
Payables	103,100	103,100
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Sales	48,320	109,952
Purchases	207,694	390,619
Goertek [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Sales	0	0
Purchases	207,694	390,619
Affiliate 1 [Member]
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items]
Sales	48,320	109,952
Purchases	$ 0	$ 0

EMBEZZLEMENT (Details)

EMBEZZLEMENT (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 24, 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	$ 200,000	$ 420,000