Cover
Cover - shares | 3 Months Ended | |
Mar. 26, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 26, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-25 | |
Entity File Number | 0-19882 | |
Entity Registrant Name | KOPIN CORPORATION | |
Entity Central Index Key | 0000771266 | |
Entity Tax Identification Number | 04-2833935 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 125 North Drive | |
Entity Address, City or Town | Westborough | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01581-3335 | |
City Area Code | (508) | |
Local Phone Number | 870-5959 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | KOPN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,914,322 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 21,867,492 | $ 26,787,931 |
Marketable debt securities, at fair value | 4,451,088 | 2,507,535 |
Accounts receivable, net of allowance of $295,000 in 2022 and $150,000 in 2021 | 6,777,310 | 12,113,070 |
Contract assets and unbilled receivables | 2,552,201 | 2,299,392 |
Inventory | 7,132,617 | 6,581,139 |
Prepaid taxes | 119,163 | 160,599 |
Prepaid expenses and other current assets | 2,095,034 | 1,758,079 |
Total current assets | 44,994,905 | 52,207,745 |
Property, plant and equipment, net | 1,939,506 | 1,888,963 |
Operating lease right-of-use assets | 3,630,555 | 3,828,066 |
Other assets | 170,932 | 170,932 |
Equity investments | 9,553,628 | 4,912,022 |
Total assets | 60,289,526 | 63,007,728 |
Current liabilities: | ||
Accounts payable | 5,865,030 | 5,483,970 |
Accrued payroll and expenses | 2,760,369 | 2,413,744 |
Accrued warranty | 970,000 | 517,000 |
Contract liabilities and billings in excess of revenues earned | 1,756,202 | 4,063,031 |
Operating lease liabilities | 658,298 | 701,204 |
Other accrued liabilities | 2,108,625 | 1,202,635 |
Customer deposits | 2,457,496 | 2,638,103 |
Deferred tax liabilities | 497,102 | 513,417 |
Total current liabilities | 17,073,122 | 17,533,104 |
Noncurrent contract liabilities and asset retirement obligations | 273,913 | 288,634 |
Operating lease liabilities, net of current portion | 2,946,994 | 3,108,236 |
Other long-term obligations | 1,294,750 | 2,450,897 |
Total liabilities | 21,588,779 | 23,380,871 |
Stockholders’ equity: | ||
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued | ||
Common stock, par value $.01 per share: authorized, 150,000,000 shares; issued 92,176,761 shares in 2022 and 92,146,761 shares in 2021; outstanding 90,097,201 in 2022 and 89,988,528 in 2021 | 902,235 | 900,691 |
Additional paid-in capital | 357,585,686 | 356,931,157 |
Treasury stock (126,389 and 80,641 shares in 2022 and 2021, at cost) | (461,723) | (366,110) |
Accumulated other comprehensive income | 1,300,445 | 1,414,351 |
Accumulated deficit | (320,453,539) | (319,080,898) |
Total Kopin Corporation stockholders’ equity | 38,873,104 | 39,799,191 |
Noncontrolling interest | (172,357) | (172,334) |
Total Kopin Corporation stockholders’ equity | 38,700,747 | 39,626,857 |
Total liabilities and stockholders’ equity | $ 60,289,526 | $ 63,007,728 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 295,000 | $ 150,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares, issued | 92,176,761 | 92,146,761 |
Common stock, shares, outstanding | 90,097,201 | 89,988,528 |
Treasury stock, shares | 126,389 | 80,641 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Revenues: | ||
Total revenues | $ 11,578,422 | $ 11,676,369 |
Expenses: | ||
Cost of product revenues | 7,782,879 | 6,396,671 |
Research and development | 5,408,613 | 3,563,300 |
Selling, general and administration | 4,464,548 | 5,905,706 |
Total expenses | 17,656,040 | 15,865,677 |
Loss from operations | (6,077,618) | (4,189,308) |
Other income (expense): | ||
Interest income | 6,980 | 8,744 |
Other expense, net | (1,141) | (1,150) |
Gain on investments | 4,700,000 | |
Foreign currency transaction gains | 35,115 | 28,991 |
Total other income | 4,740,954 | 36,585 |
Loss before provision for income taxes and net loss attributable to noncontrolling interest | (1,336,664) | (4,152,723) |
Tax provision | (36,000) | (33,000) |
Net loss | (1,372,664) | (4,185,723) |
Net loss attributable to the noncontrolling interest | 23 | 39,485 |
Net loss attributable to Kopin Corporation | $ (1,372,641) | $ (4,146,238) |
Net loss per share | ||
Basic and diluted | $ (0.02) | $ (0.05) |
Weighted average number of common shares outstanding | ||
Basic and diluted | 90,121,226 | 87,378,288 |
Net Product Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 6,507,528 | $ 7,568,845 |
Research and Development Revenues [Member] | ||
Revenues: | ||
Total revenues | 4,908,033 | 3,560,743 |
Other Revenues [Member] | ||
Revenues: | ||
Total revenues | $ 162,861 | $ 546,781 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Income Statement [Abstract] | ||
Net loss | $ (1,372,664) | $ (4,185,723) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments | (5,932) | (27,842) |
Unrealized holding (loss) gain on marketable securities | (107,451) | 8,286 |
Reclassification of holding losses in net loss | (523) | |
Other comprehensive loss, net of tax | (113,906) | (19,556) |
Comprehensive loss | (1,486,570) | (4,205,279) |
Comprehensive loss attributable to the noncontrolling interest | 23 | 39,485 |
Comprehensive loss attributable to Kopin Corporation | $ (1,486,547) | $ (4,165,794) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total Kopin Corporation Stockholders Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 26, 2020 | $ 880,075 | $ 341,512,893 | $ (9,793,946) | $ 1,484,434 | $ (305,648,025) | $ 28,435,431 | $ (136,836) | $ 28,298,595 |
Balance, shares at Dec. 26, 2020 | 88,007,535 | |||||||
Stock-based compensation expense | 2,610,166 | 2,610,166 | 2,610,166 | |||||
Vesting of restricted stock | $ 9,500 | (9,500) | ||||||
Vesting of restricted stock, shares | 950,000 | |||||||
Restricted stock for tax withholding obligations | $ (37) | (32,668) | (32,705) | (32,705) | ||||
Restricted stock for tax withholding obligations, shares | (3,586) | |||||||
Other comprehensive loss | (19,556) | (19,556) | (19,556) | |||||
Net loss | (4,146,238) | (4,146,238) | (39,485) | (4,185,723) | ||||
Sale of registered stock | 6,336,470 | 9,183,614 | 15,520,084 | 15,520,084 | ||||
Ending balance, value at Mar. 27, 2021 | $ 889,538 | 350,417,361 | (610,332) | 1,464,878 | (309,794,263) | 42,367,182 | (176,321) | 42,190,861 |
Balance, shares at Mar. 27, 2021 | 88,953,949 | |||||||
Beginning balance, value at Dec. 25, 2021 | $ 900,691 | 356,931,157 | (366,110) | 1,414,351 | (319,080,898) | 39,799,191 | (172,334) | 39,626,857 |
Balance, shares at Dec. 25, 2021 | 90,069,169 | |||||||
Stock-based compensation expense | 656,073 | 656,073 | 656,073 | |||||
Vesting of restricted stock | $ 1,544 | (1,544) | ||||||
Vesting of restricted stock, shares | 154,421 | |||||||
Restricted stock for tax withholding obligations | (95,613) | (95,613) | (95,613) | |||||
Restricted stock for tax withholding obligations, shares | ||||||||
Other comprehensive loss | (113,906) | (113,906) | (113,906) | |||||
Net loss | (1,372,641) | (1,372,641) | (23) | (1,372,664) | ||||
Ending balance, value at Mar. 26, 2022 | $ 902,235 | $ 357,585,686 | $ (461,723) | $ 1,300,445 | $ (320,453,539) | $ 38,873,104 | $ (172,357) | $ 38,700,747 |
Balance, shares at Mar. 26, 2022 | 90,223,590 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (1,372,664) | $ (4,185,723) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 267,590 | 205,023 |
Accretion of premium or discount on marketable debt securities | 128 | 1,534 |
Stock-based compensation | 656,073 | 2,610,166 |
Loss on disposal of property and plant | 202,671 | 14,950 |
Gain on investments | (4,700,000) | |
Income taxes | 35,836 | 32,070 |
Foreign currency gains | (16,351) | (68,351) |
Change in allowance for bad debt | (26,281) | 95,931 |
Write-off of excess inventory | 588,175 | 408,939 |
Other non-cash items | 453,262 | 397,211 |
Changes in assets and liabilities: | ||
Accounts receivable | 5,777,308 | 1,258,770 |
Contract assets | (252,809) | 2,406,334 |
Inventory | (1,156,461) | (1,398,350) |
Prepaid expenses and other current assets | (314,361) | (773,067) |
Accounts payable and accrued expenses | (107,657) | (966,202) |
Billings in excess of revenue earned | (2,317,122) | (284,515) |
Net cash used in operating activities | (2,282,663) | (245,280) |
Cash flows from investing activities: | ||
Capital expenditures | (524,368) | (346,450) |
Purchases of marketable debt securities | (3,000,030) | |
Proceeds from sale of marketable debt securities | 1,000,000 | 200,000 |
Net cash used in investing activities | (2,524,398) | (146,450) |
Cash flows from financing activities: | ||
Sale of treasury stock, net of costs | 15,520,084 | |
Settlements of restricted stock for tax withholding obligations | (95,613) | (32,705) |
Net cash (used in) provided by financing activities | (95,613) | 15,487,379 |
Effect of exchange rate changes on cash | (17,765) | (5,207) |
Net (decrease) increase in cash and cash equivalents | (4,920,439) | 15,090,442 |
Cash and cash equivalents: | ||
Beginning of period | 26,787,931 | 17,112,869 |
End of period | $ 21,867,492 | $ 32,203,311 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The condensed consolidated financial statements of Kopin Corporation as of March 26, 2022 and for the three month periods ended March 26, 2022 and March 27, 2021 are unaudited and include all adjustments that, 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 fiscal year ended December 25, 2021. 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. As used in this report, the terms “we”, “us”, “our”, “Kopin” and the “Company” mean Kopin Corporation and its subsidiaries, unless the context indicates another meaning. The Company’s products are targeted towards the defense and industrial/enterprise and consumer wearable markets. The Company’s revenues from sales of products into the consumer market include sales of its organic light emitting diode (OLED) displays. The Company’s OLED products are relatively new and sales are sporadic. Management believes the enterprise wearable market is still developing and cannot predict how long it will take to develop or if the Company’s products will be accepted. In addition, the Company’s current strategy is to continue to invest in research and development, even during unprofitable periods, which may result in the Company continuing to incur net losses and negative cash flows from operations. If the Company is unable to achieve and maintain positive cash flows and profitability in the foreseeable future, its financial condition may ultimately be materially adversely affected such that management may be required to reduce operating expenses, including investments in research and development, or raise additional capital. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes its historical success in managing cash flows and obtaining capital will continue in the foreseeable future. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 3 Months Ended |
Mar. 26, 2022 | |
Accounting Policies [Abstract] | |
ACCOUNTING STANDARDS | 2. ACCOUNTING STANDARDS Accounting Standards Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
CASH AND CASH EQUIVALENTS AND M
CASH AND CASH EQUIVALENTS AND MARKETABLE DEBT SECURITIES | 3 Months Ended |
Mar. 26, 2022 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS AND MARKETABLE DEBT SECURITIES | 3. CASH AND CASH EQUIVALENTS AND MARKETABLE DEBT 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 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 March 26, 2022 and March 27, 2021. Investments in available-for-sale marketable debt securities were as follows at March 26, 2022 and December 25, 2021: SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES Amortized Cost Unrealized (Losses) Gains Fair Value 2022 2021 2022 2021 2022 2021 U.S. government and agency backed securities $ 2,000,006 $ 1,000,128 $ (49,326 ) $ 522 $ 1,950,680 $ 1,000,650 Corporate debt and certificates of deposit 2,500,024 1,500,000 384 6,885 2,500,408 1,506,885 Total $ 4,500,030 $ 2,500,128 $ (48,942 ) $ 7,407 $ 4,451,088 $ 2,507,535 The contractual maturity of the Company’s marketable debt securities was as follows at March 26, 2022: SCHEDULE OF MARKETABLE DEBT SECURITIES Less than One year One to Five years Total U.S. government and agency backed securities $ — $ 1,950,680 $ 1,950,680 Corporate debt 1,998,263 502,145 2,500,408 Total $ 1,998,263 $ 2,452,825 $ 4,451,088 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 4. 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: SCHEDULE OF FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS Fair Value Measurement at March 26, 2022 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 21,867,492 $ 21,867,492 $ — $ — U.S. government and agency-backed securities 1,950,680 — 1,950,680 — Corporate debt 1,501,745 — 1,501,745 — Certificates of deposit 998,663 998,663 — — Equity investments 9,553,628 244,549 — 9,309,079 $ 35,872,208 $ 23,110,704 $ 3,452,425 $ 9,309,079 Fair Value Measurement at December 25, 2021 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 26,787,931 $ 26,787,931 $ — $ — U.S. government and agency- backed securities 1,000,650 — 1,000,650 — Corporate debt 1,506,885 — 1,506,885 — Equity investments 4,912,022 296,173 — 4,615,849 $ 34,207,488 $ 27,084,104 $ 2,507,535 $ 4,615,849 Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. Changes in Level 3 investments were as follows: SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS December 25, 2021 Net unrealized gains Purchases, issuances and settlements Transfers in and or out of Level 3 March 26, 2022 Equity Investments $ 4,912,022 $ 4,641,606 $ — $ — $ 9,553,628 The carrying amounts of cash and cash 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. Marketable Debt Securities Corporate debt consists of floating rate notes with a maturity that may be over multiple years but has interest rates that 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 that 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. Equity Investments From 2017 through 2019, the Company made several equity investments in a customer. In the fourth quarter of 2019, the Company reviewed the financial condition and other factors of the customer and, as a result, recorded an impairment charge of $ 5.2 million to reduce its investment in the customer to zero as of December 28, 2019. In the first quarter of 2022 the customer raised additional equity capital and based on an observable price change of the customer’s share prices and terms of the equity sale the Company remeasured the fair market value of its investment and recorded a gain of $ 4.7 million. As of March 26, 2022, the Company owned an approximate 2.3 % interest in this investment. During the three months ended March 26, 2022, the Company recorded a less than $ 0.1 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 26, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 5. INVENTORY Inventories are stated at standard cost adjusted to approximate the lower of cost (first-in, first-out method) or net realizable value and consist of the following at March 26, 2022 and December 25, 2021: SCHEDULE OF INVENTORY March 26, 2022 December 25, 2021 Raw materials $ 5,629,085 $ 5,044,334 Work-in-process 984,241 1,032,519 Finished goods 519,291 504,286 Total $ 7,132,617 $ 6,581,139 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 3 Months Ended |
Mar. 26, 2022 | |
Net loss per share | |
NET LOSS PER SHARE | 6. 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 unvested restricted shares. Diluted net loss per share 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 unvested restricted stock. The following were not included in weighted-average common shares outstanding-diluted because they are anti-dilutive or performance conditions have not been met at the end of the period: SCHEDULE OF WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING DILUTED Three months ended Three months ended March 26, 2022 March 27, 2021 Non-vested restricted common stock 1,953,171 2,490,717 |
STOCKHOLDERS_ EQUITY AND STOCK-
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 26, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 7. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Registered sale of equity securities During the three months ended March 27, 2021, we sold 2.4 million shares of common stock for gross proceeds of $ 16 million (average of $ 6.66 per share), before deducting broker expenses paid by us of $ 0.5 million, pursuant to our At-The-Market Equity Offering Sales Agreement dated as of February 8, 2019 (the “Previous ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated (“Stifel”), as agent. The Previous ATM Agreement has since terminated pursuant to its terms as a result of the sale of all the shares subject to such agreement. On March 5, 2021 the Company entered into a new At-The-Market Equity Offering Sales Agreement dated as of March 5, 2021 (the “Current ATM Agreement”) with Stifel under which the Company may sell up to $ 50 million of its common stock. 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 that 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 that 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. Restricted stock activity for the three month period ended March 26, 2022 was as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Shares Weighted Average Grant Fair Value Balance, December 25, 2021 2,077,592 $ 2.90 Granted 37,100 2.36 Forfeited (7,100 ) 4.40 Vested (154,421 ) 2.73 Balance, March 26, 2022 1,953,171 $ 2.90 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 March 26, 2022 and March 27, 2021 (no tax benefits were recognized): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Three Months Ended Three Months Ended March 26, 2022 March 27, 2021 Cost of product revenues $ 66,668 $ 133,784 Research and development 147,379 94,053 Selling, general and administrative 442,026 2,382,329 Total $ 656,073 $ 2,610,166 Unrecognized compensation expense for non-vested restricted common stock as of March 26, 2022 totaled $ 3.7 three years |
ACCRUED WARRANTY
ACCRUED WARRANTY | 3 Months Ended |
Mar. 26, 2022 | |
Guarantees and Product Warranties [Abstract] | |
ACCRUED WARRANTY | 8. ACCRUED WARRANTY The Company typically warrants its products against defect for 12 to 18 months, however, for certain products a customer may purchase an extended warranty SCHEDULE OF ACCRUED WARRANTY Balance, December 25, 2021 $ 517,000 Additions 725,000 Claims (272,000 ) Balance, March 26, 2022 $ 970,000 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 to 18-month warranty . The Company classifies the current portion of deferred revenue under Other accrued liabilities in its condensed consolidated balance sheets. At March 26, 2022, the Company had less than $ 0.1 million of deferred revenue related to extended warranties. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 26, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 9. INCOME TAXES The Company recorded a provision for income taxes of less than $ 0.1 million in each of the three months ended March 26, 2022 and the three months ended March 27, 2021. As of March 26, 2022, the Company has available for tax purposes U.S. federal net operating loss carryforwards (“NOLs”) of approximately $ 160.3 million expiring 2022 through 2037 and $ 76.0 million that have an unlimited carryover period. The Company has recognized a full valuation allowance on its domestic and certain foreign net deferred tax assets due to the uncertainty of realization of such assets. The Company 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 foreign subsidiaries. |
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | 3 Months Ended |
Mar. 26, 2022 | |
Contract Assets And Liabilities | |
CONTRACT ASSETS AND LIABILITIES | 10. CONTRACT ASSETS AND LIABILITIES Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized from customer arrangements, including licensing, exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current. The Company classifies the noncurrent portion of contract assets under other assets in its condensed consolidated balance sheets. Contract liabilities consist of advance payments and billings in excess of cost incurred and deferred revenue. Net contract assets (liabilities) consisted of the following: SCHEDULE OF CONTRACT WITH CUSTOMER, ASSET AND LIABILITY March 26, 2022 December 25, 2021 $ Change % Change Contract assets—current $ 2,552,201 $ 2,299,392 $ 252,809 11 % Contract liabilities and billings in excess of revenues earned (1,756,202 ) (4,063,031 ) 2,306,829 (57 )% Contract liabilities—noncurrent (10,371 ) (20,664 ) 10,293 (50 )% Net contract assets (liabilities) $ 785,628 $ (1,784,303 ) $ 2,569,931 (144 )% The $ 2.6 million increase in the Company’s net contract assets (liabilities) at March 26, 2022 as compared to December 25, 2021 was primarily due to recording of revenue earned against advanced payments. In the three months ended March 26, 2022, the Company recognized revenue of $ 2.9 1.2 The Company did not recognize impairment losses on our contract assets in the three months ended March 26, 2022 or March 27, 2021. Performance Obligations The Company’s revenue recognition related to performance obligations that were satisfied at a point in time and over time were as follows: SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATIONS Three months ended Three months ended March 26, 2022 March 27, 2021 Point in time 20 % 32 % Over time 80 % 68 % Remaining performance obligations represent the transaction price of orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity (“IDIQ”)). As of March 26, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 29.3 |
LEASES
LEASES | 3 Months Ended |
Mar. 26, 2022 | |
Leases | |
LEASES | 11. LEASES The Company enters into operating leases primarily for: real estate, including for manufacturing, engineering, research, administration and sales facilities, and information technology (“IT”) equipment. At March 26, 2022 and December 25, 2021, the Company did not have any finance leases. Approximately all of our future lease commitments, and related lease liability, relate to the Company’s real estate leases. Some of the Company’s leases include options to extend or terminate the lease. The components of lease expense were as follows: SCHEDULE OF LEASE EXPENSE Three months ended Three months ended March 26, 2022 March 27, 2021 Operating lease cost $ 249,503 $ 290,884 At March 26, 2022, the Company’s future lease payments under non-cancellable leases were as follows: SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE 2022 (excluding the three months ended March 26, 2022) $ 645,519 2023 867,756 2024 769,923 2025 604,000 2026 604,000 Thereafter 805,333 Total future lease payments 4,296,531 Less imputed interest (691,239 ) Total $ 3,605,292 The Company’s lease liabilities recognized in the Company’s condensed consolidated balance sheet at March 26, 2022 were as follows: SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS March 26, 2022 Operating lease liabilities–current $ 658,298 Operating lease liabilities–noncurrent 2,946,994 Total lease liabilities $ 3,605,292 Supplemental cash flow information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Three months ended March 26, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 248,754 Other information related to leases was as follows: March 26, 2022 Weighted Average Discount Rate–Operating Leases 5.92 % Weighted Average Remaining Lease Term–Operating Leases (in years) 5.53 |
SEGMENTS AND DISAGGREGATION OF
SEGMENTS AND DISAGGREGATION OF REVENUE | 3 Months Ended |
Mar. 26, 2022 | |
Segment Reporting [Abstract] | |
SEGMENTS AND DISAGGREGATION OF REVENUE | 12. SEGMENTS AND DISAGGREGATION OF REVENUE We continually monitor and review our segment reporting structure in accordance with authoritative guidance to determine if any changes have occurred that would affect our reportable segments. We report under one segment, as our Chief Executive Officer, who is our chief operating decision maker (“CODM”), reviews results on a total company basis. Total long-lived assets by country at March 26, 2022 and December 25, 2021 were: SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS Total Long-lived Assets (in thousands) March 26, 2022 December 25, 2021 U.S. $ 5,287 $ 5,381 United Kingdom 226 264 Japan 57 72 Total $ 5,570 $ 5,717 Total Long-lived Assets $ 5,570 $ 5,717 We disaggregate our revenue from contracts with customers by geographic location and by display application, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. During the three months ended March 26, 2022 and March 27, 2021, the Company derived its sales from the following geographies: SCHEDULE OF SEGMENT INFORMATION BY REVENUE TYPE March 26, 2022 March 27, 2021 (In thousands, except percentages) Revenue % of Total Revenue % of Total United States $ 9,297 80 % $ 8,180 70 % Asia-Pacific 2,144 19 3,275 28 Europe 137 1 221 2 Total Revenues $ 11,578 100 % $ 11,676 100 % During the three months ended March 26, 2022 and March 27, 2021, the Company derived its sales from the following display applications: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (In thousands) March 26, 2022 March 27, 2021 Defense $ 4,757 $ 4,993 Industrial 1,530 2,041 Consumer 220 534 R&D 4,908 3,561 License and royalties 163 547 Total Revenues $ 11,578 $ 11,676 |
LITIGATION
LITIGATION | 3 Months Ended |
Mar. 26, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | 13. 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. BlueRadios, Inc. v. Kopin Corporation, Civil Action No. 16-02052-JLK (D. Col.): On August 12, 2016, BlueRadios, Inc. (“BlueRadios”) filed a complaint in the U.S. District Court for the District of Colorado, alleging that the Company breached a contract between it and BlueRadios concerning an alleged joint venture between the Company and BlueRadios to design, develop and commercialize micro-display products with embedded wireless technology referred to as “Golden-i,” breached the covenant of good faith and fair dealing associated with that contract, breached its fiduciary duty to BlueRadios, and misappropriated trade secrets owned by BlueRadios in violation of Colorado law (C.R.S. § 7-74-104(4)) and the Defend Trade Secrets Act (18 U.S.C. § 1836(b)(1)). BlueRadios further alleges that the Company was unjustly enriched by its alleged misconduct, BlueRadios is entitled to an accounting to determine the amount of profits obtained by the Company as a result of its alleged misconduct, and the inventorship on at least ten patents or patent applications owned by the Company need to be corrected to list BlueRadios’ employees as inventors and thereby list BlueRadios as co-assignees of the patents. BlueRadios seeks monetary, declaratory, and injunctive relief, including for alleged non-payment of engineering retainer fees. On October 11, 2016, the Company filed its Answer and Affirmative Defenses. The parties completed expert depositions on November 15, 2019. On December 2, 2019, the Company filed a Motion for Partial Summary Judgment requesting the Court dismiss counts 2-7 in their entirety and counts 1 and 8 in part. BlueRadios also filed a Motion for Partial Summary Judgment alleging it is the co-owner of U.S. Patent No. 8,909,296. Responses to the Motions for Partial Summary Judgment were filed on January 15, 2020, and replies were filed on February 19, 2020. On September 25, 2020, the Court denied BlueRadios’ Motion for Partial Summary Judgment. A trial date has not yet been set by the Court. The Company has not concluded a loss from this matter is probable; therefore, we have not recorded an accrual for litigation or claims related to this matter for the period ended March 26, 2022. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 26, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 14. RELATED PARTY TRANSACTIONS The Company may from time to time enter into agreements with stockholders, 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 to enhance its product offering. During the three-month periods ended March 26, 2022 and March 27, 2021, the Company had the following transactions with related parties: SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES Three months ended Three months ended March 26, 2022 March 27, 2021 Sales Purchases Sales Purchases RealWear, Inc. $ 624,216 $ — $ 1,323,885 $ — At March 26, 2022 and December 25, 2021, the Company had the following receivables and contract assets with related parties: March 26, 2022 December 25, 2021 Receivables Contract assets Receivables Contract assets RealWear, Inc. $ 628,923 $ — $ 306,307 $ — |
ACCOUNTING STANDARDS (Policies)
ACCOUNTING STANDARDS (Policies) | 3 Months Ended |
Mar. 26, 2022 | |
Accounting Policies [Abstract] | |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued But Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
CASH AND CASH EQUIVALENTS AND_2
CASH AND CASH EQUIVALENTS AND MARKETABLE DEBT SECURITIES (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Cash and Cash Equivalents [Abstract] | |
SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES | Investments in available-for-sale marketable debt securities were as follows at March 26, 2022 and December 25, 2021: SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES Amortized Cost Unrealized (Losses) Gains Fair Value 2022 2021 2022 2021 2022 2021 U.S. government and agency backed securities $ 2,000,006 $ 1,000,128 $ (49,326 ) $ 522 $ 1,950,680 $ 1,000,650 Corporate debt and certificates of deposit 2,500,024 1,500,000 384 6,885 2,500,408 1,506,885 Total $ 4,500,030 $ 2,500,128 $ (48,942 ) $ 7,407 $ 4,451,088 $ 2,507,535 |
SCHEDULE OF MARKETABLE DEBT SECURITIES | The contractual maturity of the Company’s marketable debt securities was as follows at March 26, 2022: SCHEDULE OF MARKETABLE DEBT SECURITIES Less than One year One to Five years Total U.S. government and agency backed securities $ — $ 1,950,680 $ 1,950,680 Corporate debt 1,998,263 502,145 2,500,408 Total $ 1,998,263 $ 2,452,825 $ 4,451,088 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Fair Value Disclosures [Abstract] | |
SCHEDULE OF FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS | The following table details the fair value measurements of the Company’s financial assets: SCHEDULE OF FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS Fair Value Measurement at March 26, 2022 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 21,867,492 $ 21,867,492 $ — $ — U.S. government and agency-backed securities 1,950,680 — 1,950,680 — Corporate debt 1,501,745 — 1,501,745 — Certificates of deposit 998,663 998,663 — — Equity investments 9,553,628 244,549 — 9,309,079 $ 35,872,208 $ 23,110,704 $ 3,452,425 $ 9,309,079 Fair Value Measurement at December 25, 2021 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 26,787,931 $ 26,787,931 $ — $ — U.S. government and agency- backed securities 1,000,650 — 1,000,650 — Corporate debt 1,506,885 — 1,506,885 — Equity investments 4,912,022 296,173 — 4,615,849 $ 34,207,488 $ 27,084,104 $ 2,507,535 $ 4,615,849 |
SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS | Transfers between levels of the fair value hierarchy are reported at the beginning of the reporting period in which they occur. Changes in Level 3 investments were as follows: SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS December 25, 2021 Net unrealized gains Purchases, issuances and settlements Transfers in and or out of Level 3 March 26, 2022 Equity Investments $ 4,912,022 $ 4,641,606 $ — $ — $ 9,553,628 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventories are stated at standard cost adjusted to approximate the lower of cost (first-in, first-out method) or net realizable value and consist of the following at March 26, 2022 and December 25, 2021: SCHEDULE OF INVENTORY March 26, 2022 December 25, 2021 Raw materials $ 5,629,085 $ 5,044,334 Work-in-process 984,241 1,032,519 Finished goods 519,291 504,286 Total $ 7,132,617 $ 6,581,139 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Net loss per share | |
SCHEDULE OF 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 conditions have not been met at the end of the period: SCHEDULE OF WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING DILUTED Three months ended Three months ended March 26, 2022 March 27, 2021 Non-vested restricted common stock 1,953,171 2,490,717 |
STOCKHOLDERS_ EQUITY AND STOC_2
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Equity [Abstract] | |
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY | Restricted stock activity for the three month period ended March 26, 2022 was as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Shares Weighted Average Grant Fair Value Balance, December 25, 2021 2,077,592 $ 2.90 Granted 37,100 2.36 Forfeited (7,100 ) 4.40 Vested (154,421 ) 2.73 Balance, March 26, 2022 1,953,171 $ 2.90 |
SCHEDULE OF 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 March 26, 2022 and March 27, 2021 (no tax benefits were recognized): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Three Months Ended Three Months Ended March 26, 2022 March 27, 2021 Cost of product revenues $ 66,668 $ 133,784 Research and development 147,379 94,053 Selling, general and administrative 442,026 2,382,329 Total $ 656,073 $ 2,610,166 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Guarantees and Product Warranties [Abstract] | |
SCHEDULE OF ACCRUED WARRANTY | SCHEDULE OF ACCRUED WARRANTY Balance, December 25, 2021 $ 517,000 Additions 725,000 Claims (272,000 ) Balance, March 26, 2022 $ 970,000 |
CONTRACT ASSETS AND LIABILITI_2
CONTRACT ASSETS AND LIABILITIES (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Contract Assets And Liabilities | |
SCHEDULE OF CONTRACT WITH CUSTOMER, ASSET AND LIABILITY | Net contract assets (liabilities) consisted of the following: SCHEDULE OF CONTRACT WITH CUSTOMER, ASSET AND LIABILITY March 26, 2022 December 25, 2021 $ Change % Change Contract assets—current $ 2,552,201 $ 2,299,392 $ 252,809 11 % Contract liabilities and billings in excess of revenues earned (1,756,202 ) (4,063,031 ) 2,306,829 (57 )% Contract liabilities—noncurrent (10,371 ) (20,664 ) 10,293 (50 )% Net contract assets (liabilities) $ 785,628 $ (1,784,303 ) $ 2,569,931 (144 )% |
SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATIONS | The Company’s revenue recognition related to performance obligations that were satisfied at a point in time and over time were as follows: SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATIONS Three months ended Three months ended March 26, 2022 March 27, 2021 Point in time 20 % 32 % Over time 80 % 68 % |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Leases | |
SCHEDULE OF LEASE EXPENSE | The components of lease expense were as follows: SCHEDULE OF LEASE EXPENSE Three months ended Three months ended March 26, 2022 March 27, 2021 Operating lease cost $ 249,503 $ 290,884 |
SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE | At March 26, 2022, the Company’s future lease payments under non-cancellable leases were as follows: SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE 2022 (excluding the three months ended March 26, 2022) $ 645,519 2023 867,756 2024 769,923 2025 604,000 2026 604,000 Thereafter 805,333 Total future lease payments 4,296,531 Less imputed interest (691,239 ) Total $ 3,605,292 |
SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS | The Company’s lease liabilities recognized in the Company’s condensed consolidated balance sheet at March 26, 2022 were as follows: SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS March 26, 2022 Operating lease liabilities–current $ 658,298 Operating lease liabilities–noncurrent 2,946,994 Total lease liabilities $ 3,605,292 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | Supplemental cash flow information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES Three months ended March 26, 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 248,754 Other information related to leases was as follows: March 26, 2022 Weighted Average Discount Rate–Operating Leases 5.92 % Weighted Average Remaining Lease Term–Operating Leases (in years) 5.53 |
SEGMENTS AND DISAGGREGATION O_2
SEGMENTS AND DISAGGREGATION OF REVENUE (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Segment Reporting [Abstract] | |
SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS | Total long-lived assets by country at March 26, 2022 and December 25, 2021 were: SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS Total Long-lived Assets (in thousands) March 26, 2022 December 25, 2021 U.S. $ 5,287 $ 5,381 United Kingdom 226 264 Japan 57 72 Total $ 5,570 $ 5,717 Total Long-lived Assets $ 5,570 $ 5,717 |
SCHEDULE OF SEGMENT INFORMATION BY REVENUE TYPE | During the three months ended March 26, 2022 and March 27, 2021, the Company derived its sales from the following geographies: SCHEDULE OF SEGMENT INFORMATION BY REVENUE TYPE March 26, 2022 March 27, 2021 (In thousands, except percentages) Revenue % of Total Revenue % of Total United States $ 9,297 80 % $ 8,180 70 % Asia-Pacific 2,144 19 3,275 28 Europe 137 1 221 2 Total Revenues $ 11,578 100 % $ 11,676 100 % |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | During the three months ended March 26, 2022 and March 27, 2021, the Company derived its sales from the following display applications: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (In thousands) March 26, 2022 March 27, 2021 Defense $ 4,757 $ 4,993 Industrial 1,530 2,041 Consumer 220 534 R&D 4,908 3,561 License and royalties 163 547 Total Revenues $ 11,578 $ 11,676 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 3 Months Ended |
Mar. 26, 2022 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES | During the three-month periods ended March 26, 2022 and March 27, 2021, the Company had the following transactions with related parties: SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES Three months ended Three months ended March 26, 2022 March 27, 2021 Sales Purchases Sales Purchases RealWear, Inc. $ 624,216 $ — $ 1,323,885 $ — At March 26, 2022 and December 25, 2021, the Company had the following receivables and contract assets with related parties: March 26, 2022 December 25, 2021 Receivables Contract assets Receivables Contract assets RealWear, Inc. $ 628,923 $ — $ 306,307 $ — |
SCHEDULE OF AVAILABLE-FOR-SALE
SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES (Details) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | $ 4,500,030 | $ 2,500,128 |
Unrealized Gains | (48,942) | (7,407) |
Unrealized Gains | 48,942 | 7,407 |
Fair Value | 4,451,088 | 2,507,535 |
US Government and Agency Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 2,000,006 | 1,000,128 |
Unrealized Gains | (49,326) | (522) |
Unrealized Gains | 49,326 | 522 |
Fair Value | 1,950,680 | 1,000,650 |
Corporate Debt and Certificates of Deposit [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 2,500,024 | 1,500,000 |
Unrealized Gains | (384) | (6,885) |
Unrealized Gains | 384 | 6,885 |
Fair Value | $ 2,500,408 | $ 1,506,885 |
SCHEDULE OF MARKETABLE DEBT SEC
SCHEDULE OF MARKETABLE DEBT SECURITIES (Details) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | $ 1,998,263 | |
One to Five Years | 2,452,825 | |
Total | 4,451,088 | $ 2,507,535 |
US Government and Agency Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | ||
One to Five Years | 1,950,680 | |
Total | 1,950,680 | $ 1,000,650 |
Corporate Debt [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | 1,998,263 | |
One to Five Years | 502,145 | |
Total | $ 2,500,408 |
SCHEDULE OF FAIR VALUE MEASUREM
SCHEDULE OF FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS (Details) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | $ 35,872,208 | $ 34,207,488 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 23,110,704 | 27,084,104 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 3,452,425 | 2,507,535 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 9,309,079 | 4,615,849 |
Cash and Cash Equivalents [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 21,867,492 | 26,787,931 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 21,867,492 | 26,787,931 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
US Government and Agency Backed Securities [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,950,680 | 1,000,650 |
US Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
US Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,950,680 | 1,000,650 |
US Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,501,745 | 1,506,885 |
Corporate Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,501,745 | 1,506,885 |
Corporate Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Certificates of Deposit [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 998,663 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 998,663 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 9,553,628 | 4,912,022 |
Equity Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 244,549 | 296,173 |
Equity Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | $ 9,309,079 | $ 4,615,849 |
SCHEDULE OF FAIR VALUE, LIABILI
SCHEDULE OF FAIR VALUE, LIABILITIES MEASURED ON RECURRING BASIS (Details) - Equity Investments [Member] | 3 Months Ended |
Mar. 26, 2022USD ($) | |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | |
Financial instrument fair value, beginning | $ 4,912,022 |
Net unrealized losses | 4,641,606 |
Purchases, issuances and settlements | |
Transfers in and or out of Level 3 | |
Financial instrument fair value, ending | $ 9,553,628 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2022 | Dec. 28, 2019 | |
Fair Value Disclosures [Abstract] | ||
[custom:ImpairmentOfEquitySecurity] | $ 5.2 | |
Gain on sale of equity investments | $ 4.7 | |
Equity Method Investment, Ownership Percentage | 2.30% | |
Unrealized loss on equity interest | $ 0.1 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 5,629,085 | $ 5,044,334 |
Work-in-process | 984,241 | 1,032,519 |
Finished goods | 519,291 | 504,286 |
Total | $ 7,132,617 | $ 6,581,139 |
SCHEDULE OF WEIGHTED-AVERAGE CO
SCHEDULE OF WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING DILUTED (Details) - shares | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Net loss per share | ||
Non-vested restricted common stock | 1,953,171 | 2,490,717 |
SCHEDULE OF NON-VESTED RESTRICT
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY (Details) | 3 Months Ended |
Mar. 26, 2022$ / sharesshares | |
Equity [Abstract] | |
Number of Shares, Restricted stock Outstanding Beginning | shares | 2,077,592 |
Weighted Average Grant Date Fair Value, Restricted stock Outstanding Beginning | $ / shares | $ 2.90 |
Number of Shares, Restricted stock Granted | shares | 37,100 |
Weighted Average Grant Date Fair Value, Restricted stock Granted | $ / shares | $ 2.36 |
Number of Shares, Restricted stock Forfeited | shares | (7,100) |
Weighted Average Grant Date Fair Value, Restricted stock Forfeited | $ / shares | $ 4.40 |
Number of Shares, Restricted stock Vested | shares | (154,421) |
Weighted Average Grant Date Fair Value, Restricted stock Vested | $ / shares | $ 2.73 |
Number of Shares, Restricted stock Outstanding Ending | shares | 1,953,171 |
Weighted Average Grant Date Fair Value, Restricted stock Outstanding Ending | $ / shares | $ 2.90 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Total | $ 656,073 | $ 2,610,166 |
Cost of Product Revenues [Member] | ||
Total | 66,668 | 133,784 |
Research and Development [Member] | ||
Total | 147,379 | 94,053 |
Selling, General and Administrative [Member] | ||
Total | $ 442,026 | $ 2,382,329 |
STOCKHOLDERS_ EQUITY AND STOC_3
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 05, 2021 | Mar. 26, 2022 | Mar. 27, 2021 |
Subsidiary, Sale of Stock [Line Items] | |||
Share-based payment arrangement, nonvested award, cost not yet recognized, amount | $ 3.7 | ||
Unrecognized compensation expense period for recognition | 3 years | ||
At The Market Offering [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 2.4 | ||
Gross proceeds from registered sale equity securities | $ 16 | ||
Shares Issued, Price Per Share | $ 6.66 | ||
Underwriting discounts and offering expenses from sale of equity | $ 0.5 | ||
At The Market Offering [Member] | Maximum [Member] | Common Stock [Member] | Stifel [Member] | |||
Subsidiary, Sale of Stock [Line Items] | |||
Sale of Stock, Consideration Received Per Transaction | $ 50 |
SCHEDULE OF ACCRUED WARRANTY (D
SCHEDULE OF ACCRUED WARRANTY (Details) | 3 Months Ended |
Mar. 26, 2022USD ($) | |
Guarantees and Product Warranties [Abstract] | |
Balance, December 25, 2021 | $ 517,000 |
Additions | 725,000 |
Claims | (272,000) |
Balance, March 26, 2022 | $ 970,000 |
ACCRUED WARRANTY (Details Narra
ACCRUED WARRANTY (Details Narrative) $ in Millions | 3 Months Ended |
Mar. 26, 2022USD ($) | |
Revenue Benchmark [Member] | |
Extended product warranty description | 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 |
Standard Product Warranty Description | standard 12 to 18-month warranty |
Warrant [Member] | |
Extended product warranty description | The Company typically warrants its products against defect for 12 to 18 months, however, for certain products a customer may purchase an extended warranty |
Deferred Revenue | $ 0.1 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current Income Tax Expense (Benefit) | $ 0.1 | $ 0.1 |
Operating Loss Carryforwards | $ 160.3 | |
Net operating loss expiry period | expiring 2022 through 2037 | |
Operating loss carryforwards unlimited | $ 76 |
SCHEDULE OF CONTRACT WITH CUSTO
SCHEDULE OF CONTRACT WITH CUSTOMER, ASSET AND LIABILITY (Details) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Dec. 25, 2021 | |
Contract Assets And Liabilities | ||
Contract assets-current | $ 2,552,201 | $ 2,299,392 |
Change in contract assets-current | $ 252,809 | |
Percentage of change in contract assets-current | 11.00% | |
Contract liabilities and billings in excess of revenue earned | $ (1,756,202) | (4,063,031) |
Change Contract liabilities and billings in excess of revenue earned | $ 2,306,829 | |
Percentage Contract liabilities and billings in excess of revenue earned | (57.00%) | |
Contract liabilities-noncurrent | $ (10,371) | (20,664) |
Change in contract liabilities-noncurrent | $ 10,293 | |
Percentage of change in contract liabilities-noncurrent | (50.00%) | |
Net contract (liabilities) assets | $ 785,628 | $ (1,784,303) |
Change in Net contract (liabilities) assets | $ 2,569,931 | |
Percentage of change in Net contract (liabilities) assets | (144.00%) |
SCHEDULE OF SATISFACTION OF PER
SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATIONS (Details) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Transferred at Point in Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage | 20.00% | 32.00% |
Transferred over Time [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue percentage | 80.00% | 68.00% |
CONTRACT ASSETS AND LIABILITI_3
CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Contract Assets And Liabilities | ||
Change in Net contract (liabilities) assets | $ 2,569,931 | |
Contract with customer, liability, revenue recognized | 2,900,000 | |
Contract with customer, liability, revenue recognized | $ 1,200,000 | |
Revenue, remaining performance obligation, amount | $ 29,300,000 |
SCHEDULE OF LEASE EXPENSE (Deta
SCHEDULE OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Leases | ||
Operating lease cost | $ 249,503 | $ 290,884 |
SCHEDULE OF FUTURE LEASE PAYMEN
SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE (Details) | Mar. 26, 2022USD ($) |
Leases | |
2022 (excluding the three months ended March 26, 2022) | $ 645,519 |
2023 | 867,756 |
2024 | 769,923 |
2025 | 604,000 |
2026 | 604,000 |
Thereafter | 805,333 |
Total future lease payments | 4,296,531 |
Less imputed interest | (691,239) |
Total | $ 3,605,292 |
SCHEDULE OF OPERATING LEASE PAY
SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS (Details) - USD ($) | Mar. 26, 2022 | Dec. 25, 2021 |
Leases | ||
Operating lease liabilities–current | $ 658,298 | $ 701,204 |
Operating lease liabilities–noncurrent | 2,946,994 | $ 3,108,236 |
Total | $ 3,605,292 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) | 3 Months Ended |
Mar. 26, 2022USD ($) | |
Leases | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 248,754 |
Weighted Average Discount Rate-Operating Leases | 5.92% |
Weighted Average Remaining Lease Term-Operating Leases (in years) | 5 years 6 months 10 days |
SCHEDULE OF LONG-LIVED ASSETS B
SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS (Details) - USD ($) $ in Thousands | Mar. 26, 2022 | Dec. 25, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | $ 5,570 | $ 5,717 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | 5,287 | 5,381 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | 226 | 264 |
JAPAN | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | $ 57 | $ 72 |
SCHEDULE OF SEGMENT INFORMATION
SCHEDULE OF SEGMENT INFORMATION BY REVENUE TYPE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 11,578 | $ 11,676 |
Percentage of total revenue | 100.00% | 100.00% |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 9,297 | $ 8,180 |
Percentage of total revenue | 80.00% | 70.00% |
Asia Pacific [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 2,144 | $ 3,275 |
Percentage of total revenue | 19.00% | 28.00% |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Revenues | $ 137 | $ 221 |
Percentage of total revenue | 1.00% | 2.00% |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 26, 2022 | Mar. 27, 2021 | |
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 11,578 | $ 11,676 |
Defense [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 4,757 | 4,993 |
Industrial [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 1,530 | 2,041 |
Consumer [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 220 | 534 |
Research and Development [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | 4,908 | 3,561 |
License And Royalties [Member] | ||
Revenue from External Customer [Line Items] | ||
Total Revenues | $ 163 | $ 547 |
SCHEDULE OF TRANSACTIONS WITH R
SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES (Details) - RealWear, Inc. [Member] - USD ($) | 3 Months Ended | ||
Mar. 26, 2022 | Mar. 27, 2021 | Dec. 25, 2021 | |
Related Party Transaction [Line Items] | |||
Sales | $ 624,216 | $ 1,323,885 | |
Purchases | |||
Receivables | 628,923 | $ 306,307 | |
Contract assets |