Cover
Cover - $ / shares | 6 Months Ended | |
Jun. 29, 2024 | Aug. 07, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 29, 2024 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-30 | |
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 | 120,968,103 | |
Entity Listing, Par Value Per Share | $ 0.01 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 10,042,847 | $ 5,710,685 |
Restricted cash | 1,050,000 | 500,000 |
Marketable debt securities, at fair value | 7,587,014 | 11,692,000 |
Accounts receivable, net of allowance of $988,000 in 2024 and $1,025,000 in 2023 | 7,406,272 | 9,706,036 |
Contract assets and unbilled receivables | 6,523,002 | 3,409,809 |
Inventory | 5,649,665 | 7,601,806 |
Prepaid taxes | 88,433 | 85,572 |
Prepaid expenses and other current assets | 1,972,872 | 1,124,635 |
Total current assets | 40,320,105 | 39,830,543 |
Property, plant and equipment, net | 2,143,235 | 2,163,417 |
Operating lease right-of-use assets | 2,477,774 | 2,504,909 |
Other assets | 124,925 | 124,925 |
Equity investments | 3,982,385 | 4,688,522 |
Total assets | 49,048,424 | 49,312,316 |
Current liabilities: | ||
Accounts payable | 5,713,542 | 4,947,338 |
Accrued payroll and expenses | 1,945,532 | 1,701,506 |
Accrued warranty | 2,674,000 | 2,160,000 |
Contract liabilities and billings in excess of revenues earned | 198,291 | 916,826 |
Operating lease liabilities | 672,038 | 651,503 |
Accrued post-retirement benefits | 415,000 | 790,000 |
Other accrued liabilities | 1,460,402 | 1,702,681 |
Customer deposits | 331,766 | 408,156 |
Deferred tax liabilities | 470,884 | 470,884 |
Accrued legal expenses | 6,666,717 | 2,129,421 |
Accrued litigation damages | 24,800,000 | |
Total current liabilities | 45,348,172 | 15,878,315 |
Noncurrent contract liabilities and asset retirement obligations | 356,560 | 278,112 |
Operating lease liabilities, net of current portion | 1,786,021 | 1,832,982 |
Accrued post-retirement benefits, net of current portion | 279,996 | 319,996 |
Other long-term obligations, net of current portion | 1,494,016 | 1,494,016 |
Total liabilities | 49,264,765 | 19,803,421 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued | ||
Common stock, par value $.01 per share: authorized, 200,000,000 shares in 2024 and 150,000,000 in 2023; issued 121,137,538 shares in 2024 and 114,253,818 shares in 2023; outstanding 115,577,875 in 2024 and 112,251,416 in 2023, respectively | 1,156,484 | 1,123,220 |
Additional paid-in capital | 394,032,205 | 385,411,542 |
Treasury stock (70,635 shares in 2024 and 2023, at cost) | (103,127) | (103,127) |
Accumulated other comprehensive income | 1,323,344 | 1,232,294 |
Accumulated deficit | (396,625,247) | (358,155,034) |
Total stockholders’ equity | (216,341) | 29,508,895 |
Total liabilities and stockholders’ equity | $ 49,048,424 | $ 49,312,316 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 988,000 | $ 1,025,000 |
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 | 200,000,000 | 150,000,000 |
Common stock, shares issued | 121,137,538 | 114,253,818 |
Common stock, shares outstanding | 115,577,875 | 112,251,416 |
Treasury stock, shares | 70,635 | 70,635 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenues: | ||||
Total revenues | $ 12,336,423 | $ 10,459,856 | $ 22,369,064 | $ 21,218,047 |
Expenses: | ||||
Cost of product revenues | 8,685,328 | 5,697,063 | 17,226,902 | 12,321,164 |
Research and development | 1,839,663 | 3,132,259 | 3,940,416 | 5,444,476 |
Selling, general and administration | 7,267,868 | 6,466,120 | 14,499,733 | 11,114,250 |
Litigation damages | 24,800,000 | |||
Total expenses | 17,792,859 | 15,295,442 | 60,467,051 | 28,879,890 |
Loss from operations | (5,456,436) | (4,835,586) | (38,097,987) | (7,661,843) |
Other (expense) income | ||||
Interest income | 226,677 | 222,700 | 399,517 | 324,465 |
Other income | 18,867 | 35,765 | 18,824 | 72,795 |
Loss on impairment of investments | (734,286) | (3,327,347) | (734,286) | (3,327,347) |
Foreign currency transaction gains (losses) | 23,180 | (236,911) | (56,281) | (139,004) |
Total other expense, net | (465,562) | (3,305,793) | (372,226) | (3,069,091) |
Loss before provision for income taxes | (5,921,998) | (8,141,379) | (38,470,213) | (10,730,934) |
Tax provision | (39,000) | (78,000) | ||
Net loss | $ (5,921,998) | $ (8,180,379) | $ (38,470,213) | $ (10,808,934) |
Net loss per share | ||||
Basic | $ (0.05) | $ (0.07) | $ (0.32) | $ (0.10) |
Diluted | $ (0.05) | $ (0.07) | $ (0.32) | $ (0.10) |
Weighted average number of common shares outstanding | ||||
Basic | 121,400,739 | 109,911,244 | 120,757,868 | 107,473,813 |
Diluted | 121,400,739 | 109,911,244 | 120,757,868 | 107,473,813 |
Net Product Revenues [Member] | ||||
Revenues: | ||||
Total revenues | $ 11,054,030 | $ 6,011,393 | $ 20,079,396 | $ 13,666,109 |
Research and Development Revenues [Member] | ||||
Revenues: | ||||
Total revenues | 1,170,329 | 3,884,225 | 2,070,294 | 6,780,676 |
Other Revenues [Member] | ||||
Revenues: | ||||
Total revenues | $ 112,064 | $ 564,238 | $ 219,374 | $ 771,262 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Statement [Abstract] | ||||
Net loss | $ (5,921,998) | $ (8,180,379) | $ (38,470,213) | $ (10,808,934) |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments | 2,444 | 32,190 | 240 | 42,184 |
Unrealized holding gain (loss) on marketable securities | 86,770 | (14,440) | 90,810 | (18,207) |
Other comprehensive income, net of tax | 89,214 | 17,750 | 91,050 | 23,977 |
Comprehensive loss | $ (5,832,784) | $ (8,162,629) | $ (38,379,163) | $ (10,784,957) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock, Common [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Parent [Member] | Total |
Balance at Dec. 31, 2022 | $ 929,540 | $ 360,567,631 | $ (103,127) | $ 1,176,068 | $ (338,406,815) | $ (172,682) | $ 24,163,297 | $ 23,990,615 |
Balance, shares at Dec. 31, 2022 | 92,954,159 | |||||||
Vesting of restricted stock | $ 175 | (175) | ||||||
Vesting of restricted stock, shares | 17,500 | |||||||
Stock-based compensation expense | 194,190 | 194,190 | 194,190 | |||||
Other comprehensive income | 6,227 | 6,227 | 6,227 | |||||
Issuance of common stock, net of costs | $ 170,000 | 21,165,000 | 21,335,000 | 21,335,000 | ||||
Issuance of common stock, net of costs, shares | 17,000,000 | |||||||
Net loss | (2,628,555) | (2,628,555) | (2,628,555) | |||||
Acquisition of noncontrolling interest | (172,682) | 172,682 | (172,682) | |||||
Balance at Apr. 01, 2023 | $ 1,099,715 | 381,753,964 | (103,127) | 1,182,295 | (341,035,370) | 42,897,477 | 42,897,477 | |
Balance, shares at Apr. 01, 2023 | 109,971,659 | |||||||
Balance at Dec. 31, 2022 | $ 929,540 | 360,567,631 | (103,127) | 1,176,068 | (338,406,815) | (172,682) | 24,163,297 | 23,990,615 |
Balance, shares at Dec. 31, 2022 | 92,954,159 | |||||||
Other comprehensive income | 23,977 | |||||||
Net loss | (10,808,934) | |||||||
Balance at Jul. 01, 2023 | $ 1,103,765 | 382,941,171 | (103,127) | 1,200,045 | (349,215,749) | 35,926,105 | 35,926,105 | |
Balance, shares at Jul. 01, 2023 | 110,376,625 | |||||||
Balance at Apr. 01, 2023 | $ 1,099,715 | 381,753,964 | (103,127) | 1,182,295 | (341,035,370) | 42,897,477 | 42,897,477 | |
Balance, shares at Apr. 01, 2023 | 109,971,659 | |||||||
Vesting of restricted stock | $ 4,050 | (4,050) | ||||||
Vesting of restricted stock, shares | 404,966 | |||||||
Stock-based compensation expense | 1,191,257 | 1,191,257 | 1,191,257 | |||||
Other comprehensive income | 17,750 | 17,750 | 17,750 | |||||
Net loss | (8,180,379) | (8,180,379) | (8,180,379) | |||||
Balance at Jul. 01, 2023 | $ 1,103,765 | 382,941,171 | (103,127) | 1,200,045 | (349,215,749) | 35,926,105 | 35,926,105 | |
Balance, shares at Jul. 01, 2023 | 110,376,625 | |||||||
Balance at Dec. 30, 2023 | $ 1,123,220 | 385,411,542 | (103,127) | 1,232,294 | (358,155,034) | 29,508,895 | ||
Balance, shares at Dec. 30, 2023 | 112,322,051 | |||||||
Vesting of restricted stock | $ 200 | (200) | ||||||
Vesting of restricted stock, shares | 20,064 | |||||||
Stock-based compensation expense | 734,928 | 734,928 | ||||||
Other comprehensive income | 1,836 | 1,836 | ||||||
Issuance of common stock, net of costs | $ 30,800 | 7,211,781 | 7,242,581 | |||||
Issuance of common stock, net of costs, shares | 3,080,000 | |||||||
Net loss | (32,548,215) | (32,548,215) | ||||||
Balance at Mar. 30, 2024 | $ 1,154,220 | 393,358,051 | (103,127) | 1,234,130 | (390,703,249) | 4,940,025 | ||
Balance, shares at Mar. 30, 2024 | 115,422,115 | |||||||
Balance at Dec. 30, 2023 | $ 1,123,220 | 385,411,542 | (103,127) | 1,232,294 | (358,155,034) | 29,508,895 | ||
Balance, shares at Dec. 30, 2023 | 112,322,051 | |||||||
Other comprehensive income | 91,050 | |||||||
Net loss | (38,470,213) | |||||||
Balance at Jun. 29, 2024 | $ 1,156,484 | 394,032,205 | (103,127) | 1,323,344 | (396,625,247) | (216,341) | ||
Balance, shares at Jun. 29, 2024 | 115,648,510 | |||||||
Balance at Mar. 30, 2024 | $ 1,154,220 | 393,358,051 | (103,127) | 1,234,130 | (390,703,249) | 4,940,025 | ||
Balance, shares at Mar. 30, 2024 | 115,422,115 | |||||||
Vesting of restricted stock | $ 2,264 | (2,264) | ||||||
Vesting of restricted stock, shares | 226,395 | |||||||
Stock-based compensation expense | 676,418 | 676,418 | ||||||
Other comprehensive income | 89,214 | 89,214 | $ 89,214 | |||||
Net loss | (5,921,998) | (5,921,998) | ||||||
Balance at Jun. 29, 2024 | $ 1,156,484 | $ 394,032,205 | $ (103,127) | $ 1,323,344 | $ (396,625,247) | $ (216,341) | ||
Balance, shares at Jun. 29, 2024 | 115,648,510 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jul. 01, 2023 | Apr. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Cash flows from operating activities: | |||||
Net loss | $ (8,180,379) | $ (2,628,555) | $ (38,470,213) | $ (10,808,934) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 332,155 | 387,779 | |||
Stock-based compensation | 1,411,346 | 1,385,449 | |||
Income taxes | 78,210 | ||||
Foreign currency losses | 38,633 | 51,950 | |||
Provision for credit losses | 790,950 | ||||
Noncash provision for excess inventory | 1,023,709 | 292,405 | |||
Investment impairment | 734,243 | 2,887,893 | |||
Changes in other non-cash items | 513,556 | 198,194 | |||
Changes in assets and liabilities: | |||||
Accounts receivable | 2,994,914 | (1,565,340) | |||
Contract assets and unbilled receivables | (3,353,456) | (96,923) | |||
Inventory | 912,158 | (1,685,961) | |||
Prepaid expenses, other current assets and other assets | (857,448) | (929,086) | |||
Accounts payable and accrued expenses | 4,474,548 | 1,396,840 | |||
Contract liabilities and billings in excess of revenue earned | (738,047) | (375,499) | |||
Accrued litigation damages | 24,800,000 | ||||
Net cash used in operating activities | (6,183,902) | (7,992,073) | $ (15,300,000) | ||
Cash flows from investing activities: | |||||
Capital expenditures | (310,600) | (350,631) | |||
Purchases of marketable debt securities | (1,119,012) | (17,624,779) | |||
Proceeds from sale of marketable debt securities | 5,250,066 | 6,466,917 | |||
Other assets | (483) | ||||
Net cash provided by (used in) investing activities | 3,820,454 | (11,508,976) | |||
Cash flows from financing activities: | |||||
Issuance of common stock, net of costs | 7,242,581 | ||||
Issuance of common stock and pre-funded warrants, net of costs | 21,335,000 | ||||
Net cash provided by financing activities | 7,242,581 | 21,335,000 | |||
Effect of exchange rate changes on cash | 3,029 | 13,839 | |||
Net increase in cash, cash equivalents and restricted cash | 4,882,162 | 1,847,790 | |||
Cash, cash equivalents and restricted cash: | |||||
Beginning of period | $ 8,258,878 | 6,210,685 | 8,258,878 | 8,258,878 | |
End of period | $ 10,106,668 | $ 11,092,847 | $ 10,106,668 | $ 6,210,685 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 and for the three and six month periods ended June 29, 2024 and July 1, 2023 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 30, 2023. 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 condensed consolidated financial statements for the three and six month periods ended June 29, 2024 and July 1, 2023 include the accounts of Kopin Corporation and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated. Going Concern The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss of $ 19.7 15.3 38.5 6.2 38.5 24.8 5.1 19.7 10 10 18.7 The Company has historical and current negative cash flow from operations and limited liquidity resources. The Company’s current strategy is to continue to invest in its business and raise additional capital through financing activities that may include public offerings and private placements of its common stock, preferred stock offerings, collaborations and licensing arrangements and issuances of debt and convertible debt instruments. Until such time that additional capital can be raised, the Company plans to strategically manage its uncommitted spend, execute its priorities and implement cost saving measures to reduce research and development and general and administrative expenditures which could include minimizing staff costs. The Company may also sell assets and look at other strategic alternatives. There are inherent uncertainties associated with fundraising activities and activities to manage our uncommitted spending and the successful execution of these activities may not be within the Company’s control. There are no assurances that such additional funding will be obtained and that the Company will succeed in its future operations. If the Company is unable to achieve positive cash flows and profitability in the foreseeable future, cannot successfully raise additional capital and implement its strategic plan, or the recommended disgorgement and exemplary damages are not significantly reduced or eliminated in the final order, the Company’s liquidity, financial condition and business prospects will be materially and adversely affected. There is substantial doubt about the Company’s ability to continue as a going concern. |
ACCOUNTING STANDARDS
ACCOUNTING STANDARDS | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Policies [Abstract] | |
ACCOUNTING STANDARDS | 2. ACCOUNTING STANDARDS In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Number 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires more disaggregated income tax disclosures, including additional information in the rate reconciliation and additional disclosures about income taxes paid. ASU 2023-09 will become effective for the Company for the fiscal year ending December 27, 2025. Early adoption is permitted, and guidance should be applied prospectively, with an option to apply guidance retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2023-09 on its condensed consolidated financial statements. In November 2023, the FASB issued ASU Number 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker(s) that are included within each reported measure of segment profit or loss. The guidance also expands disclosure requirements for interim periods, as well as requires disclosure of other segment items, including the title and position of the entity’s chief operations decision maker(s). ASU 2023-07 will become effective for the Company for the fiscal year ending December 28, 2024, and for interim periods starting in the Company’s first quarter of 2025. Early adoption is permitted, and guidance is required to be applied retrospectively. The Company is currently evaluating the impact of the adoption of ASU 2023-07 on its condensed consolidated financial statements. |
CASH AND CASH EQUIVALENTS, REST
CASH AND CASH EQUIVALENTS, RESTRICTED CASH, AND MARKETABLE DEBT SECURITIES | 6 Months Ended |
Jun. 29, 2024 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS, RESTRICTED CASH, AND MARKETABLE DEBT SECURITIES | 3. CASH AND CASH EQUIVALENTS, RESTRICTED CASH, 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. Restricted cash of approximately $ 1.1 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 premiums 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 six months ended June 29, 2024 and July 1, 2023. Investments in available-for-sale marketable debt securities were as follows at June 29, 2024 and December 30, 2023: SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES Amortized Cost Unrealized Losses Fair Value 2024 2023 2024 2023 2024 2023 U.S. Government and agency backed securities $ 1,500,018 $ 4,500,030 $ (12,718 ) $ (25,655 ) $ 1,487,300 $ 4,474,375 Corporate debt 6,619,132 7,750,174 (19,418 ) (32,549 ) 6,599,714 7,717,625 Total $ 8,119,150 $ 12,250,204 $ (32,136 ) $ (58,204 ) $ 8,087,014 $ 12,192,000 The contractual maturity of the Company’s marketable debt securities was as follows at June 29, 2024: SCHEDULE OF MARKETABLE DEBT SECURITIES Less than One to Total U.S. Government and agency backed securities $ 999,555 $ 487,745 $ 1,487,300 Corporate debt 6,120,626 479,088 6,599,714 Total $ 7,120,181 $ 966,833 $ 8,087,014 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 29, 2024 | |
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 Total Level 1 Level 2 Level 3 Fair Value Measurement at June 29, 2024 Using: Total Level 1 Level 2 Level 3 Cash equivalents $ 8,789,027 $ 8,789,027 $ — $ — U.S. Government and agency backed securities 1,487,300 — 1,487,300 — Corporate debt 6,599,714 6,599,714 — — Equity Investments 2,016,782 238,920 — 1,777,862 Financial instruments, owned, at fair value $ 18,892,823 $ 15,627,661 $ 1,487,300 $ 1,777,862 Total Level 1 Level 2 Level 3 Fair Value Measurement at December 30, 2023 Using: Total Level 1 Level 2 Level 3 Cash equivalents $ 5,079,605 $ 5,079,605 $ — $ — U.S. Government and agency backed securities 4,474,375 — 4,474,375 — Corporate debt 7,717,625 7,717,625 — — Equity Investments 4,688,522 174,178 — 4,514,344 Financial instruments, owned, at fair value $ 21,960,127 $ 12,971,408 $ 4,474,375 $ 4,514,344 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. 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 interest rate, 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 The Company has an investment in RealWear Inc. (RealWear) which had been valued at $ 5.2 0.4 3.1 2.5 0.7 1.8 2.8 The equity investments categorized as Level 1 at June 29, 2024 were the Company’s equity investments in publicly traded companies that met the categorization requirements for Level 1 classification. The equity investments that were not remeasured to fair value and therefore did not meet the Level 1, Level 2 or Level 3 classification requirements had a value of $ 2.0 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | 5. ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 29, 2024 December 30, 2023 Accounts receivable $ 8,394,272 $ 10,731,036 Less — allowance for credit losses (988,000 ) (1,025,000 ) Total $ 7,406,272 $ 9,706,036 Changes to the allowance for credit losses for the six months ended June 29, 2024 were as follows: SCHEDULE OF CHANGE IN ALLOWANCE FOR CREDIT LOSSES Balance, December 30, 2023 $ 1,025,000 Additions — Write-offs (37,000 ) Balance, June 29, 2024 $ 988,000 |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 6. 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 June 29, 2024 and December 30, 2023: SCHEDULE OF INVENTORY June 29, 2024 December 30, 2023 Raw materials $ 3,479,654 $ 4,785,197 Work-in-process 1,379,528 2,018,421 Finished goods 790,483 798,188 Total $ 5,649,665 $ 7,601,806 |
NET LOSS PER SHARE
NET LOSS PER SHARE | 6 Months Ended |
Jun. 29, 2024 | |
Net loss per share | |
NET LOSS PER SHARE | 7. 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: SCHEDULE OF NON-VESTED RESTRICTED COMMON STOCK Three Months Three Months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Non-vested restricted common stock 5,489,028 3,989,161 5,489,028 3,989,161 |
STOCKHOLDERS_ EQUITY AND STOCK-
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION | 8. STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION Registered sale of equity securities During the three months ended March 30, 2024, the Company sold 3,080,000 7,466,755 2.42 0.2 On January 27, 2023, the Company sold 17,000,000 6,000,000 0.99 22.9 1.5 0.01 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. The Company granted 4,131,820 3,136,844 1,137,970 99,279 328,096 710,595 Restricted stock activity for the six month period ended June 29, 2024 was as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Shares Weighted Balance, December 30, 2023 1,931,767 $ 1.65 Granted 4,131,820 1.31 Forfeited (328,100 ) 2.70 Vested (246,459 ) 2.00 Balance, June 29, 2024 5,489,028 1.32 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 six months ended June 29, 2024 and July 1, 2023 (no tax benefits were recognized): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Three Months Three Months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Cost of product revenues $ 268,318 $ 427,323 $ 488,924 $ 453,541 Research and development 117,086 322,294 260,909 339,168 Selling, general and administrative 291,014 441,641 661,513 592,740 Total $ 676,418 $ 1,191,258 $ 1,411,346 $ 1,385,449 Stock based compensation expense $ 676,418 $ 1,191,258 $ 1,411,346 $ 1,385,449 Unrecognized compensation expense for non-vested restricted common stock as of June 29, 2024 totaled $ 7.2 two years |
ACCRUED WARRANTY
ACCRUED WARRANTY | 6 Months Ended |
Jun. 29, 2024 | |
Guarantees and Product Warranties [Abstract] | |
ACCRUED WARRANTY | 9. 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 30, 2023 $ 2,160,000 Additions 694,000 Claims (180,000 ) Balance, June 29, 2024 $ 2,674,000 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 standard 12 to 18-month warranty. 0.1 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 10. INCOME TAXES The Company recorded a provision for income taxes of $ 0.0 0.1 122.7 expiring 2024 through 2038 107.0 |
CONTRACT ASSETS AND LIABILITIES
CONTRACT ASSETS AND LIABILITIES | 6 Months Ended |
Jun. 29, 2024 | |
Contract Assets And Liabilities | |
CONTRACT ASSETS AND LIABILITIES | 11. 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 June 29, 2024 December 30, 2023 $ Change % Change Contract assets and unbilled receivables —current $ 6,523,002 $ 3,409,809 $ 3,113,193 91 % Contract liabilities and billings in excess of revenues earned (198,291 ) (916,826 ) 718,535 (78 )% Contract liabilities—noncurrent (3,920 ) (23,198 ) 19,278 (83 )% Net contract assets $ 6,320,791 $ 2,469,785 $ 3,851,006 156 % The $ 3.9 In the three and six months ended June 29, 2024, the Company recognized revenue of $ 0.6 0.9 0.1 0.6 The Company did not recognize impairment losses on its contract assets in the three or six months ended June 29, 2024 or July 1, 2023. 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 OBLIGATION Three months Three months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Point in time 13 % 31 % 19 % 28 % Over time 87 % 69 % 81 % 72 % Performance obligation percentage 87 % 69 % 81 % 72 % 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 June 29, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 31.6 |
LEASES
LEASES | 6 Months Ended |
Jun. 29, 2024 | |
Leases | |
LEASES | 12. 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 June 29, 2024 and December 30, 2023, the Company did not have any finance leases. Approximately all of its 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 Three Months Six Months Six Months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease cost $ 205,743 $ 217,863 $ 433,370 $ 432,426 At June 29, 2024, the Company’s future lease payments under non-cancellable leases were as follows: SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE 2024 (excluding the six months ended June 29, 2024) $ 426,743 2025 763,994 2026 732,610 2027 669,255 2028 201,333 Total future lease payments 2,793,935 Less imputed interest (335,876 ) Total $ 2,458,059 The Company’s lease liabilities recognized in the Company’s condensed consolidated balance sheet at June 29, 2024 were as follows: SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS June 29, 2024 Operating lease liabilities–current $ 672,038 Operating lease liabilities–noncurrent 1,786,021 Total lease liabilities $ 2,458,059 Supplemental cash flow information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES June 29, 2024 July 1, 2023 Six months ended June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 432,612 $ 496,691 Other information related to leases was as follows: June 29, 2024 July 1, 2023 Weighted Average Discount Rate–Operating Leases 6.79 % 6.00 % Weighted Average Remaining Lease Term–Operating Leases (in years) 3.6 4.28 |
SEGMENTS AND DISAGGREGATION OF
SEGMENTS AND DISAGGREGATION OF REVENUE | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
SEGMENTS AND DISAGGREGATION OF REVENUE | 13. SEGMENTS AND DISAGGREGATION OF REVENUE The Company continually monitors and reviews its segment reporting structure in accordance with authoritative guidance to determine if any changes have occurred that would affect its reportable segments. The Company reports under one segment, as its Chief Executive Officer, who is its chief operating decision maker (“CODM”), reviews results on a total company basis. Total long-lived assets by country at June 29, 2024 and December 30, 2023 were: SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS Total Long-lived Assets (in thousands) June 29, 2024 December 30, 2023 United States $ 4,459 $ 4,424 United Kingdom 162 244 Total $ 4,621 $ 4,668 Long lived assets $ 4,621 $ 4,668 The Company disaggregates its revenue from contracts with customers by geographic location and by display application, as it believes this best depicts how the nature, amount, timing and uncertainty of its revenue and cash flows are affected by economic factors. During the three and six months ended June 29, 2024 and July 1, 2023, the Company derived its sales from the following geographies: SCHEDULE SEGMENT INFORMATION BY REVENUE TYPE Three months Three months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total Revenue % of Total United States $ 11,556 93 % $ 8,931 86 % $ 20,740 92 % $ 17,909 85 % Other Americas — — 5 — 5 — 5 — Total Americas 11,556 93 8,936 86 20,745 92 17,914 85 Asia - Pacific 578 5 1,184 11 1,249 6 2,593 12 Europe 202 2 340 3 375 2 711 3 Total Revenues $ 12,336 100 % $ 10,460 100 % $ 22,369 100 % $ 21,218 100 % During the three and six months ended June 29, 2024 and July 1, 2023, the Company derived its sales from the following display applications: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT Three months ended Three months ended Six months ended Six months ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Defense $ 10,439 $ 5,067 $ 18,672 $ 11,487 Industrial 615 884 1,383 1,808 Consumer — 59 25 370 R&D 1,170 3,884 2,070 6,780 License and royalties 112 566 219 773 Total Revenues $ 12,336 $ 10,460 $ 22,369 $ 21,218 |
LITIGATION
LITIGATION | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | 14. 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. On August 3, 2022, the Court granted the Company’s Motion for Partial Summary Judgment by dismissing counts 3, 6, 7, punitive damages under count 2, and count 8 as it relates to patent applications, and denying the motion as it relates to counts 1, 4, and 5, and the remainder of counts 2 and 8. The Court also ordered discovery reopened for certain limited purposes. A trial date was set by the Court for January 22 – February 5, 2024 but then re-scheduled for March 20-April 16. On Monday, April 22, 2024, after a four week trial, a jury verdict was entered finding for BlueRadios and awarding approximately $5.1 million in damages as well as recommending $19.7 million in disgorgement and exemplary damages. While no final judgment has been issued by the Court, the Court will take that recommendation under advisement and will rule in its final judgment on the final amount after briefing on the issues. 10 10 5.1 19.7 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 29, 2024 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 15. 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 its 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. On January 5, 2023, the Company entered into a Technology License Agreement and an Asset Purchase Agreement (the “LST Agreements”) with Lightning Silicon Technology, Inc. (“LST”). Pursuant to the LST Agreements, the Company issued a license to LST for certain technology associated with its Organic Light Emitting Technology, transferred in-process development contracts with two customers and accounts receivables that the Company had previously determined were not collectible. The technology license agreement provides for Kopin to transfer certain patents to LST if LST achieves certain milestones, however upon transfer Kopin will receive a license to the technology. To the extent LST makes improvements to the technology licensed from Kopin, Kopin will receive a license for these improvements for certain markets. Kopin is not obligated to provide any additional funding support to LST. As consideration for the transaction, the Company received 18,000,000 20.0 0 During the three and six months ended June 29, 2024 and July 1, 2023, the Company had the following transactions with related parties: SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES Three Months Ended June 29, 2024 July 1, 2023 Sales Purchases Sales Purchases RealWear, Inc. $ 109,830 10,550 $ 562,622 $ — HMDmd, Inc. 122,259 — 236,279 — Vuzix Corp — 4,955 — — Lightning Silicon Technology, Inc. 2,234 81,800 — 168,800 $ 234,323 97,305 $ 798,901 $ 168,800 Six Months Ended June 29, 2024 July 1, 2023 Sales Purchases Sales Purchases RealWear, Inc. $ 217,140 10,550 $ 769,646 $ — HMDmd, Inc. 222,259 — 502,755 — Vuzix Corp — 11,905 — — Lightning Silicon Technology, Inc. 2,234 164,200 — 208,055 $ 441,633 186,655 $ 1,272,401 $ 208,055 At June 29, 2024 and December 30, 2023, the Company had the following receivables from and payables to related parties: June 29, 2024 December 30, 2023 Receivables Payables Receivables Payables RealWear, Inc. $ 109,830 $ — $ 94,902 $ — HMDmd, Inc. 120,936 — 15,000 — Vuzix Corp — 4,955 — — Lightning Silicon Technology, Inc. 1,233 59,200 35,013 97,600 $ 231,999 $ 64,155 $ 144,915 $ 97,600 |
CASH AND CASH EQUIVALENTS, RE_2
CASH AND CASH EQUIVALENTS, RESTRICTED CASH, AND MARKETABLE DEBT SECURITIES (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 and December 30, 2023: SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES Amortized Cost Unrealized Losses Fair Value 2024 2023 2024 2023 2024 2023 U.S. Government and agency backed securities $ 1,500,018 $ 4,500,030 $ (12,718 ) $ (25,655 ) $ 1,487,300 $ 4,474,375 Corporate debt 6,619,132 7,750,174 (19,418 ) (32,549 ) 6,599,714 7,717,625 Total $ 8,119,150 $ 12,250,204 $ (32,136 ) $ (58,204 ) $ 8,087,014 $ 12,192,000 |
SCHEDULE OF MARKETABLE DEBT SECURITIES | The contractual maturity of the Company’s marketable debt securities was as follows at June 29, 2024: SCHEDULE OF MARKETABLE DEBT SECURITIES Less than One to Total U.S. Government and agency backed securities $ 999,555 $ 487,745 $ 1,487,300 Corporate debt 6,120,626 479,088 6,599,714 Total $ 7,120,181 $ 966,833 $ 8,087,014 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 Total Level 1 Level 2 Level 3 Fair Value Measurement at June 29, 2024 Using: Total Level 1 Level 2 Level 3 Cash equivalents $ 8,789,027 $ 8,789,027 $ — $ — U.S. Government and agency backed securities 1,487,300 — 1,487,300 — Corporate debt 6,599,714 6,599,714 — — Equity Investments 2,016,782 238,920 — 1,777,862 Financial instruments, owned, at fair value $ 18,892,823 $ 15,627,661 $ 1,487,300 $ 1,777,862 Total Level 1 Level 2 Level 3 Fair Value Measurement at December 30, 2023 Using: Total Level 1 Level 2 Level 3 Cash equivalents $ 5,079,605 $ 5,079,605 $ — $ — U.S. Government and agency backed securities 4,474,375 — 4,474,375 — Corporate debt 7,717,625 7,717,625 — — Equity Investments 4,688,522 174,178 — 4,514,344 Financial instruments, owned, at fair value $ 21,960,127 $ 12,971,408 $ 4,474,375 $ 4,514,344 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable consisted of the following: SCHEDULE OF ACCOUNTS RECEIVABLE June 29, 2024 December 30, 2023 Accounts receivable $ 8,394,272 $ 10,731,036 Less — allowance for credit losses (988,000 ) (1,025,000 ) Total $ 7,406,272 $ 9,706,036 |
SCHEDULE OF CHANGE IN ALLOWANCE FOR CREDIT LOSSES | Changes to the allowance for credit losses for the six months ended June 29, 2024 were as follows: SCHEDULE OF CHANGE IN ALLOWANCE FOR CREDIT LOSSES Balance, December 30, 2023 $ 1,025,000 Additions — Write-offs (37,000 ) Balance, June 29, 2024 $ 988,000 |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 and December 30, 2023: SCHEDULE OF INVENTORY June 29, 2024 December 30, 2023 Raw materials $ 3,479,654 $ 4,785,197 Work-in-process 1,379,528 2,018,421 Finished goods 790,483 798,188 Total $ 5,649,665 $ 7,601,806 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Net loss per share | |
SCHEDULE OF NON-VESTED RESTRICTED COMMON STOCK | The following were not included in weighted-average common shares outstanding-diluted because they are anti-dilutive: SCHEDULE OF NON-VESTED RESTRICTED COMMON STOCK Three Months Three Months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Non-vested restricted common stock 5,489,028 3,989,161 5,489,028 3,989,161 |
STOCKHOLDERS_ EQUITY AND STOC_2
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY | Restricted stock activity for the six month period ended June 29, 2024 was as follows: SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY Shares Weighted Balance, December 30, 2023 1,931,767 $ 1.65 Granted 4,131,820 1.31 Forfeited (328,100 ) 2.70 Vested (246,459 ) 2.00 Balance, June 29, 2024 5,489,028 1.32 |
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 and six months ended June 29, 2024 and July 1, 2023 (no tax benefits were recognized): SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE Three Months Three Months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Cost of product revenues $ 268,318 $ 427,323 $ 488,924 $ 453,541 Research and development 117,086 322,294 260,909 339,168 Selling, general and administrative 291,014 441,641 661,513 592,740 Total $ 676,418 $ 1,191,258 $ 1,411,346 $ 1,385,449 Stock based compensation expense $ 676,418 $ 1,191,258 $ 1,411,346 $ 1,385,449 |
ACCRUED WARRANTY (Tables)
ACCRUED WARRANTY (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Guarantees and Product Warranties [Abstract] | |
SCHEDULE OF ACCRUED WARRANTY | SCHEDULE OF ACCRUED WARRANTY Balance, December 30, 2023 $ 2,160,000 Additions 694,000 Claims (180,000 ) Balance, June 29, 2024 $ 2,674,000 |
CONTRACT ASSETS AND LIABILITI_2
CONTRACT ASSETS AND LIABILITIES (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
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 June 29, 2024 December 30, 2023 $ Change % Change Contract assets and unbilled receivables —current $ 6,523,002 $ 3,409,809 $ 3,113,193 91 % Contract liabilities and billings in excess of revenues earned (198,291 ) (916,826 ) 718,535 (78 )% Contract liabilities—noncurrent (3,920 ) (23,198 ) 19,278 (83 )% Net contract assets $ 6,320,791 $ 2,469,785 $ 3,851,006 156 % |
SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATION | 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 OBLIGATION Three months Three months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Point in time 13 % 31 % 19 % 28 % Over time 87 % 69 % 81 % 72 % Performance obligation percentage 87 % 69 % 81 % 72 % |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Leases | |
SCHEDULE OF LEASE EXPENSE | The components of lease expense were as follows: SCHEDULE OF LEASE EXPENSE Three Months Three Months Six Months Six Months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Operating lease cost $ 205,743 $ 217,863 $ 433,370 $ 432,426 |
SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE | At June 29, 2024, the Company’s future lease payments under non-cancellable leases were as follows: SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE 2024 (excluding the six months ended June 29, 2024) $ 426,743 2025 763,994 2026 732,610 2027 669,255 2028 201,333 Total future lease payments 2,793,935 Less imputed interest (335,876 ) Total $ 2,458,059 |
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 June 29, 2024 were as follows: SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS June 29, 2024 Operating lease liabilities–current $ 672,038 Operating lease liabilities–noncurrent 1,786,021 Total lease liabilities $ 2,458,059 |
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES | Supplemental cash flow information related to leases was as follows: SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES June 29, 2024 July 1, 2023 Six months ended June 29, 2024 July 1, 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 432,612 $ 496,691 Other information related to leases was as follows: June 29, 2024 July 1, 2023 Weighted Average Discount Rate–Operating Leases 6.79 % 6.00 % Weighted Average Remaining Lease Term–Operating Leases (in years) 3.6 4.28 |
SEGMENTS AND DISAGGREGATION O_2
SEGMENTS AND DISAGGREGATION OF REVENUE (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS | Total long-lived assets by country at June 29, 2024 and December 30, 2023 were: SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS Total Long-lived Assets (in thousands) June 29, 2024 December 30, 2023 United States $ 4,459 $ 4,424 United Kingdom 162 244 Total $ 4,621 $ 4,668 Long lived assets $ 4,621 $ 4,668 |
SCHEDULE SEGMENT INFORMATION BY REVENUE TYPE | During the three and six months ended June 29, 2024 and July 1, 2023, the Company derived its sales from the following geographies: SCHEDULE SEGMENT INFORMATION BY REVENUE TYPE Three months Three months Six months Six months June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total Revenue % of Total United States $ 11,556 93 % $ 8,931 86 % $ 20,740 92 % $ 17,909 85 % Other Americas — — 5 — 5 — 5 — Total Americas 11,556 93 8,936 86 20,745 92 17,914 85 Asia - Pacific 578 5 1,184 11 1,249 6 2,593 12 Europe 202 2 340 3 375 2 711 3 Total Revenues $ 12,336 100 % $ 10,460 100 % $ 22,369 100 % $ 21,218 100 % |
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT | During the three and six months ended June 29, 2024 and July 1, 2023, the Company derived its sales from the following display applications: SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT Three months ended Three months ended Six months ended Six months ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Defense $ 10,439 $ 5,067 $ 18,672 $ 11,487 Industrial 615 884 1,383 1,808 Consumer — 59 25 370 R&D 1,170 3,884 2,070 6,780 License and royalties 112 566 219 773 Total Revenues $ 12,336 $ 10,460 $ 22,369 $ 21,218 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Related Party Transactions [Abstract] | |
SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES | During the three and six months ended June 29, 2024 and July 1, 2023, the Company had the following transactions with related parties: SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES Three Months Ended June 29, 2024 July 1, 2023 Sales Purchases Sales Purchases RealWear, Inc. $ 109,830 10,550 $ 562,622 $ — HMDmd, Inc. 122,259 — 236,279 — Vuzix Corp — 4,955 — — Lightning Silicon Technology, Inc. 2,234 81,800 — 168,800 $ 234,323 97,305 $ 798,901 $ 168,800 Six Months Ended June 29, 2024 July 1, 2023 Sales Purchases Sales Purchases RealWear, Inc. $ 217,140 10,550 $ 769,646 $ — HMDmd, Inc. 222,259 — 502,755 — Vuzix Corp — 11,905 — — Lightning Silicon Technology, Inc. 2,234 164,200 — 208,055 $ 441,633 186,655 $ 1,272,401 $ 208,055 At June 29, 2024 and December 30, 2023, the Company had the following receivables from and payables to related parties: June 29, 2024 December 30, 2023 Receivables Payables Receivables Payables RealWear, Inc. $ 109,830 $ — $ 94,902 $ — HMDmd, Inc. 120,936 — 15,000 — Vuzix Corp — 4,955 — — Lightning Silicon Technology, Inc. 1,233 59,200 35,013 97,600 $ 231,999 $ 64,155 $ 144,915 $ 97,600 |
BASIS OF PRESENTATION (Details
BASIS OF PRESENTATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
May 22, 2024 | Apr. 22, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||
Net losses | $ 5,921,998 | $ 8,180,379 | $ 38,470,213 | $ 10,808,934 | $ 19,700,000 | ||
Net cash outflows from operations | 6,183,902 | $ 7,992,073 | $ 15,300,000 | ||||
Estimated possible damages amount | 24,800,000 | ||||||
Damages settlement | $ 5,100,000 | ||||||
Exemplary damages | $ 19,700,000 | ||||||
Pre-judgment interest | $ 10,000,000 | ||||||
Attorneys fees and costs | $ 10,000,000 | ||||||
Cash and cash equivalents, restricted cash, and marketable debt securities | $ 18,700,000 | $ 18,700,000 |
SCHEDULE OF AVAILABLE-FOR-SALE
SCHEDULE OF AVAILABLE-FOR-SALE MARKETABLE DEBT SECURITIES (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | $ 8,119,150 | $ 12,250,204 |
Unrealized Losses | (32,136) | (58,204) |
Fair Value | 8,087,014 | 12,192,000 |
U.S. Government and Agency Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 1,500,018 | 4,500,030 |
Unrealized Losses | (12,718) | (25,655) |
Fair Value | 1,487,300 | 4,474,375 |
Corporate Debt [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 6,619,132 | 7,750,174 |
Unrealized Losses | (19,418) | (32,549) |
Fair Value | $ 6,599,714 | $ 7,717,625 |
SCHEDULE OF MARKETABLE DEBT SEC
SCHEDULE OF MARKETABLE DEBT SECURITIES (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | $ 7,120,181 | |
One to Five years | 966,833 | |
Marketable debt securities | 8,087,014 | $ 12,192,000 |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | 999,555 | |
One to Five years | 487,745 | |
Marketable debt securities | 1,487,300 | |
Corporate Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | 6,120,626 | |
One to Five years | 479,088 | |
Marketable debt securities | $ 6,599,714 |
CASH AND CASH EQUIVALENTS, RE_3
CASH AND CASH EQUIVALENTS, RESTRICTED CASH, AND MARKETABLE DEBT SECURITIES (Details Narrative) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Restricted cash | $ 1,050,000 | $ 500,000 |
SCHEDULE OF FAIR VALUE MEASUREM
SCHEDULE OF FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | $ 18,892,823 | $ 21,960,127 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 15,627,661 | 12,971,408 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,487,300 | 4,474,375 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,777,862 | 4,514,344 |
Cash and Cash Equivalents [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 8,789,027 | 5,079,605 |
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 | 8,789,027 | 5,079,605 |
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 | ||
U.S. Government and Agency Backed Securities [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 1,487,300 | 4,474,375 |
U.S. 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 | ||
U.S. 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 | 1,487,300 | 4,474,375 |
U.S. 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 Securities [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 6,599,714 | 7,717,625 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | 6,599,714 | 7,717,625 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, off-Balance-Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt Securities [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 | 2,016,782 | 4,688,522 |
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 | 238,920 | 174,178 |
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 | $ 1,777,862 | $ 4,514,344 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Investments | $ 5.2 | |
Payments for royalties | $ 0.4 | |
Asset impairment charges | 0.7 | 3.1 |
Increase (decrease) in receivable for investment sold | 1.8 | $ 2.5 |
Equity investments | $ 2 | |
RealWear, Inc. [Member] | ||
Equity method investment, ownership percentage | 2.80% |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Receivables [Abstract] | ||
Accounts receivable | $ 8,394,272 | $ 10,731,036 |
Less — allowance for credit losses | (988,000) | (1,025,000) |
Total | $ 7,406,272 | $ 9,706,036 |
SCHEDULE OF CHANGE IN ALLOWANCE
SCHEDULE OF CHANGE IN ALLOWANCE FOR CREDIT LOSSES (Details) | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Receivables [Abstract] | |
Balance, December 30, 2023 | $ 1,025,000 |
Additions | |
Write-offs | (37,000) |
Balance, June 29, 2024 | $ 988,000 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,479,654 | $ 4,785,197 |
Work-in-process | 1,379,528 | 2,018,421 |
Finished goods | 790,483 | 798,188 |
Total | $ 5,649,665 | $ 7,601,806 |
SCHEDULE OF NON-VESTED RESTRICT
SCHEDULE OF NON-VESTED RESTRICTED COMMON STOCK (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Net loss per share | ||||
Non-vested restricted common stock | 5,489,028 | 3,989,161 | 5,489,028 | 3,989,161 |
SCHEDULE OF NON-VESTED RESTRI_2
SCHEDULE OF NON-VESTED RESTRICTED STOCK ACTIVITY (Details) | 6 Months Ended |
Jun. 29, 2024 $ / shares shares | |
Equity [Abstract] | |
Number of Shares, Outstanding | shares | 1,931,767 |
Weighted Average Grant Fair Value, Outstanding | $ / shares | $ 1.65 |
Number of Shares, Granted | shares | 4,131,820 |
Weighted Average Grant Fair Value, Granted | $ / shares | $ 1.31 |
Number of Shares, Forfeited | shares | (328,100) |
Weighted Average Grant Fair Value, Forfeited | $ / shares | $ 2.70 |
Number of Shares, Vested | shares | (246,459) |
Weighted Average Grant Fair Value, Vested | $ / shares | $ 2 |
Number of Shares, Outstanding | shares | 5,489,028 |
Weighted Average Grant Fair Value, Outstanding | $ / shares | $ 1.32 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Stock based compensation expense | $ 676,418 | $ 1,191,258 | $ 1,411,346 | $ 1,385,449 |
Cost of Product Revenues [Member] | ||||
Stock based compensation expense | 268,318 | 427,323 | 488,924 | 453,541 |
Research and Development [Member] | ||||
Stock based compensation expense | 117,086 | 322,294 | 260,909 | 339,168 |
Selling General and Administrative [Member] | ||||
Stock based compensation expense | $ 291,014 | $ 441,641 | $ 661,513 | $ 592,740 |
STOCKHOLDERS_ EQUITY AND STOC_3
STOCKHOLDERS’ EQUITY AND STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jan. 27, 2023 | Mar. 30, 2024 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 28, 2024 | |
Class of Warrant or Right [Line Items] | |||||
Number of registered common stock sold | 17,000,000 | 3,080,000 | |||
Gross proceeds from registered sale equity securities | $ 7,466,755 | ||||
Share price | $ 2.42 | ||||
Restricted stock granted | 4,131,820 | ||||
Restricted stock, vested | 246,459 | ||||
Restricted stock forfeited | 328,100 | ||||
Unrecognized compensation expense | $ 7,200,000 | ||||
Weighted average period, unrecognized | 2 years | ||||
Successful Achievement of Milestones [Member] | Forecast [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Restricted stock, vested | 1,137,970 | ||||
Achievement of Milestones [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Restricted stock earned | 99,279 | ||||
Failure to Meet of Milestones [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Restricted stock forfeited | 328,096 | ||||
Achieving Milestones [Member] | Forecast [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Restricted stock earned | 710,595 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Restricted stock granted | 4,131,820 | 3,136,844 | |||
Prefunded Warrants [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Pre-funded warrants issued to purchase common stock | 6,000,000 | ||||
Offering price per share | $ 0.99 | ||||
Proceeds from issuance of warrants | $ 22,900,000 | ||||
Underwriting discounts and offering expenses | $ 1,500,000 | ||||
Exercise price of warrants | $ 0.01 | ||||
At-The-Market Equity Offering Sales Agreement [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Payment of expenses | $ 200,000 |
SCHEDULE OF ACCRUED WARRANTY (D
SCHEDULE OF ACCRUED WARRANTY (Details) | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Guarantees and Product Warranties [Abstract] | |
Balance, December 30, 2023 | $ 2,160,000 |
Additions | 694,000 |
Claims | (180,000) |
Balance, June 29, 2024 | $ 2,674,000 |
ACCRUED WARRANTY (Details Narra
ACCRUED WARRANTY (Details Narrative) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Product Information [Line Items] | |
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. |
Warrant [Member] | |
Product Information [Line Items] | |
Deferred revenue | $ 0.1 |
Revenue Benchmark [Member] | |
Product Information [Line Items] | |
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. |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense (benefit) | $ 0 | $ 0.1 | $ 0 | $ 0.1 |
Operating loss carryforwards | 122.7 | $ 122.7 | ||
Operating loss carryforwards expiring date | expiring 2024 through 2038 | |||
Operating loss carryforwards unlimited | $ 107 | $ 107 |
SCHEDULE OF CONTRACT WITH CUSTO
SCHEDULE OF CONTRACT WITH CUSTOMER, ASSET AND LIABILITY (Details) - USD ($) | 6 Months Ended | |
Jun. 29, 2024 | Dec. 30, 2023 | |
Contract Assets And Liabilities | ||
Contract assets and unbilled receivables-current | $ 6,523,002 | $ 3,409,809 |
Change in contract assets and unbilled receivables-current | $ 3,113,193 | |
Percentage of contract assets and unbilled receivables-current | 91% | |
Contract liabilities and billings in excess of revenue earned | $ (198,291) | (916,826) |
Change in contract liabilities and billings in excess of revenue earned | $ 718,535 | |
Percentage of contract liabilities and billings in excess of revenue earned | (78.00%) | |
Contract liabilities-noncurrent | $ (3,920) | (23,198) |
Change in contract liabilities-noncurrent | $ 19,278 | |
Percentage of contract liabilities-noncurrent | (83.00%) | |
Net contract assets | $ 6,320,791 | $ 2,469,785 |
Change in net contract assets | $ 3,851,006 | |
Percentage of net contract assets | 156% |
SCHEDULE OF SATISFACTION OF PER
SCHEDULE OF SATISFACTION OF PERFORMANCE OBLIGATION (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Performance obligation percentage | 13% | 31% | 19% | 28% |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Performance obligation percentage | 87% | 69% | 81% | 72% |
CONTRACT ASSETS AND LIABILITI_3
CONTRACT ASSETS AND LIABILITIES (Details Narrative) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Contract Assets And Liabilities | ||||
Net contract assets | $ 3.9 | $ 3.9 | ||
Contract with customer, liability, revenue recognized | 0.6 | $ 0.1 | 0.9 | $ 0.6 |
Revenue, remaining performance obligation, amount | $ 31.6 | $ 31.6 |
SCHEDULE OF LEASE EXPENSE (Deta
SCHEDULE OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Leases | ||||
Operating lease cost | $ 205,743 | $ 217,863 | $ 433,370 | $ 432,426 |
SCHEDULE OF FUTURE LEASE PAYMEN
SCHEDULE OF FUTURE LEASE PAYMENT UNDER NON-CANCELLABLE LEASE (Details) | Jun. 29, 2024 USD ($) |
Leases | |
2024 (excluding the six months ended June 29, 2024) | $ 426,743 |
2025 | 763,994 |
2026 | 732,610 |
2027 | 669,255 |
2028 | 201,333 |
Total future lease payments | 2,793,935 |
Less imputed interest | (335,876) |
Total | $ 2,458,059 |
SCHEDULE OF OPERATING LEASE PAY
SCHEDULE OF OPERATING LEASE PAYMENTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS (Details) - USD ($) | Jun. 29, 2024 | Dec. 30, 2023 |
Leases | ||
Operating lease liabilities–current | $ 672,038 | $ 651,503 |
Operating lease liabilities–noncurrent | 1,786,021 | $ 1,832,982 |
Total | $ 2,458,059 |
SCHEDULE OF SUPPLEMENTAL INFORM
SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO LEASES (Details) - USD ($) | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 432,612 | $ 496,691 |
Weighted Average Discount Rate - Operating Leases | 6.79% | 6% |
Weighted Average Remaining Lease Term-Operating Leases (in years) | 3 years 7 months 6 days | 4 years 3 months 10 days |
SCHEDULE OF LONG-LIVED ASSETS B
SCHEDULE OF LONG-LIVED ASSETS BY GEOGRAPHIC AREAS (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 4,621 | $ 4,668 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 4,459 | 4,424 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 162 | $ 244 |
SCHEDULE SEGMENT INFORMATION BY
SCHEDULE SEGMENT INFORMATION BY REVENUE TYPE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 12,336,423 | $ 10,459,856 | $ 22,369,064 | $ 21,218,047 |
Percentage of total revenue | 100% | 100% | 100% | 100% |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 11,556,000 | $ 8,931,000 | $ 20,740,000 | $ 17,909,000 |
Percentage of total revenue | 93% | 86% | 92% | 85% |
Other Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 5,000 | $ 5,000 | $ 5,000 | |
Percentage of total revenue | ||||
Americas [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 11,556,000 | $ 8,936,000 | $ 20,745,000 | $ 17,914,000 |
Percentage of total revenue | 93% | 86% | 92% | 85% |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 578,000 | $ 1,184,000 | $ 1,249,000 | $ 2,593,000 |
Percentage of total revenue | 5% | 11% | 6% | 12% |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total Revenues | $ 202,000 | $ 340,000 | $ 375,000 | $ 711,000 |
Percentage of total revenue | 2% | 3% | 2% | 3% |
SCHEDULE OF SEGMENT REPORTING I
SCHEDULE OF SEGMENT REPORTING INFORMATION, BY SEGMENT (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenue from External Customer [Line Items] | ||||
Total Revenues | $ 12,336,423 | $ 10,459,856 | $ 22,369,064 | $ 21,218,047 |
Defense [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total Revenues | 10,439,000 | 5,067,000 | 18,672,000 | 11,487,000 |
Industrial [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total Revenues | 615,000 | 884,000 | 1,383,000 | 1,808,000 |
Consumer [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total Revenues | 59,000 | 25,000 | 370,000 | |
Research and Development [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total Revenues | 1,170,000 | 3,884,000 | 2,070,000 | 6,780,000 |
License and Royalties [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Total Revenues | $ 112,000 | $ 566,000 | $ 219,000 | $ 773,000 |
LITIGATION (Details Narrative)
LITIGATION (Details Narrative) - USD ($) $ in Millions | 6 Months Ended | ||
May 22, 2024 | Apr. 22, 2024 | Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Damages | On Monday, April 22, 2024, after a four week trial, a jury verdict was entered finding for BlueRadios and awarding approximately $5.1 million in damages as well as recommending $19.7 million in disgorgement and exemplary damages. While no final judgment has been issued by the Court, the Court will take that recommendation under advisement and will rule in its final judgment on the final amount after briefing on the issues. | ||
Prejudgement interest | $ 10 | ||
Fee and costs | $ 10 | ||
Damages value | $ 5.1 | ||
Exemplary damages value | $ 19.7 |
SCHEDULE OF TRANSACTIONS WITH R
SCHEDULE OF TRANSACTIONS WITH RELATED PARTIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Related Party Transaction [Line Items] | |||||
Revenue with related parties | $ 234,323 | $ 798,901 | $ 441,633 | $ 1,272,401 | |
Purchases with related parties | 97,305 | 168,800 | 186,655 | 208,055 | |
Receivables with related parties | 231,999 | 231,999 | $ 144,915 | ||
Payables with related parties | 64,155 | 64,155 | 97,600 | ||
RealWear, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue with related parties | 109,830 | 562,622 | 217,140 | 769,646 | |
Purchases with related parties | 10,550 | 10,550 | |||
Receivables with related parties | 109,830 | 109,830 | 94,902 | ||
Payables with related parties | |||||
HMDmd, Inc. [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue with related parties | 122,259 | 236,279 | 222,259 | 502,755 | |
Purchases with related parties | |||||
Receivables with related parties | 120,936 | 120,936 | 15,000 | ||
Payables with related parties | |||||
Vuzix Corp [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue with related parties | |||||
Purchases with related parties | 4,955 | 11,905 | |||
Receivables with related parties | |||||
Payables with related parties | 4,955 | 4,955 | |||
Lightning Silicon Techonology Inc [Member] | |||||
Related Party Transaction [Line Items] | |||||
Revenue with related parties | 2,234 | 2,234 | |||
Purchases with related parties | 81,800 | $ 168,800 | 164,200 | $ 208,055 | |
Receivables with related parties | 1,233 | 1,233 | 35,013 | ||
Payables with related parties | $ 59,200 | $ 59,200 | $ 97,600 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jan. 05, 2023 | Jun. 29, 2024 |
Investments | $ 5,200,000 | |
Lightning Silicon Technology Inc [Member] | ||
Issuance of shares | 18,000,000 | |
Ownership percentage | 20% | |
Investments | $ 0 |