KOPIN CORP, 10-Q filed on 5/11/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 28, 2015
May 8, 2015
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 28, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
KOPN 
 
Entity Registrant Name
KOPIN CORP 
 
Entity Central Index Key
0000771266 
 
Current Fiscal Year End Date
--12-27 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
66,495,779 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Mar. 28, 2015
Dec. 27, 2014
Current assets:
 
 
Cash and equivalents
$ 12,460,936 
$ 14,635,801 
Marketable debt securities, at fair value
74,685,260 
76,223,135 
Accounts receivable, net of allowance of $191,000 and $266,000 in 2015 and 2014, respectively
4,420,993 
3,758,832 
Costs in Excess of Billings, Current
160,126 
43,492 
Inventory
3,654,213 
4,081,886 
Prepaid taxes
65,157 
378,637 
Prepaid expenses and other current assets
787,121 
802,837 
Notes, Loans and Financing Receivable, Gross, Current
14,950,003 
0 
Total current assets
111,183,809 
99,924,620 
Property, plant and equipment, net
4,246,687 
4,589,421 
Goodwill
947,450 
976,451 
Intangible assets, net
462,570 
616,759 
Other assets
2,366,581 
1,900,828 
Accounts and Notes Receivable, Net
0 
14,933,335 
Total assets
119,207,097 
122,941,414 
Current liabilities:
 
 
Accounts payable
3,524,566 
5,503,734 
Accrued payroll and expenses
1,268,813 
1,985,691 
Accrued warranty
716,000 
716,000 
Billings in excess of revenue earned
2,343,920 
586,471 
Other accrued liabilities
2,864,213 
3,169,028 
Deferred Tax Liabilities, Net, Current
1,282,000 
1,282,000 
Total current liabilities
11,999,512 
13,242,924 
Asset retirement obligations
297,309 
311,187 
Commitments and contingencies
   
   
Stockholders' equity:
 
 
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued
0 
0 
Common stock, par value $.01 per share: authorized, 120,000,000 shares; issued 78,533,036 shares in 2015 and 77,731,604 shares in 2014; outstanding 63,088,667 shares in 2015 and 63,077,715 shares in 2014
751,909 
751,832 
Additional paid-in capital
325,499,893 
324,625,694 
Treasury stock (12,102,258 shares in 2015 and 2014, respectively, at cost)
(42,741,551)
(42,741,551)
Accumulated other comprehensive income
3,620,914 
3,126,239 
Accumulated deficit
(179,753,247)
(175,915,255)
Total Kopin Corporation stockholders' equity
107,377,918 
109,846,959 
Noncontrolling interest
(467,642)
(459,656)
Total stockholders' equity
106,910,276 
109,387,303 
Total liabilities and stockholders' equity
$ 119,207,097 
$ 122,941,414 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Mar. 28, 2015
Dec. 27, 2014
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance
$ 0 
$ 202,000 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, authorized
3,000 
3,000 
Preferred stock, issued
0 
0 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, authorized
120,000,000 
120,000,000 
Common stock, issued
78,533,018 
77,731,604 
Common stock, outstanding
63,088,698 
63,077,715 
Treasury stock, shares
12,102,258 
12,102,258 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Revenues:
 
 
Net component revenues
$ 7,128,369 
$ 4,227,760 
Research and development revenues
1,456,622 
467,010 
Total revenues
8,584,991 
4,694,770 
Expenses:
 
 
Cost of component revenues
5,283,733 
4,225,449 
Research and development
4,860,192 
5,086,284 
Selling, general and administration
4,386,215 
4,996,802 
Total expenses
14,530,140 
14,308,535 
(Loss) income from operations
(5,945,149)
(9,613,765)
Other income and expense:
 
 
Interest income
209,664 
238,172 
Other income net
19,510 
59,828 
Foreign Currency Transaction Gain (Loss), Realized
(179,589)
181,751 
Gain (Loss) on Sale of Investments
2,142,421 
0 
Total other income and expense
2,192,006 
479,751 
(Loss) income before provision for income taxes, equity losses in unconsolidated affiliates and net loss (income) attributable to noncontrolling interest
(3,753,143)
(9,134,014)
Tax provision
(12,500)
143,000 
(Loss) income before equity loss in unconsolidated affiliates and net (loss) income of noncontrolling interest
(3,765,643)
(8,991,014)
Equity losses in unconsolidated affiliates
(47,443)
(102,305)
Net (loss) income
(3,813,086)
(9,093,319)
Net loss (income) attributable to the noncontrolling interest
(24,906)
(41,097)
Net (loss) income attributable to the controlling interest
$ (3,837,992)
$ (9,134,416)
Net (loss) income per share
 
 
Earnings Per Share, Basic
$ (0.06)
$ (0.15)
Earnings Per Share, Diluted
$ (0.06)
$ (0.15)
Weighted average number of common shares
 
 
Basic
63,083,652 
62,530,202 
Diluted
63,083,652 
62,530,202 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net (loss) income
$ (3,813,086)
$ (9,093,319)
Foreign currency translation adjustments
14,422 
(859,599)
Holding (loss) gain on marketable securities
824,922 
183,441 
Reclassifications of gains in net (loss) income
(377,561)
(14,085)
Other Comprehensive Income (Loss), Net of Tax
461,783 
(690,243)
Comprehensive (loss) income
(3,351,303)
(9,783,562)
Comprehensive loss (income) attributable to the noncontrolling interest
57,798 
8,986 
Comprehensive (loss) income attributable to controlling interest
$ (3,293,505)
$ (9,774,576)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
Total
Common Stock
Additional Paid-in Capital
Stockholders' Equity, Total [Member]
Treasury Stock
Accumulated Other Comprehensive Income
Accumulated Deficit
Noncontrolling Interest
Beginning Balance at Dec. 27, 2014
$ 109,387,303 
$ 751,832 
$ 324,625,694 
$ 109,846,959 
$ (42,741,551)
$ 3,126,239 
$ (175,915,255)
$ (459,656)
Beginning Balance (in shares) at Dec. 27, 2014
 
75,183,207 
 
 
 
 
 
 
Stock-based compensation
874,276 
 
874,276 
874,276 
 
 
 
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
461,783 
 
 
494,675 
 
494,675 
 
(32,892)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
0 
7,718 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
0 
77 
(77)
0 
 
0 
 
0 
Net loss
(3,813,086)
 
 
(3,837,992)
 
 
(3,837,992)
24,906 
Ending Balance at Mar. 28, 2015
$ 106,910,276 
$ 751,909 
$ 325,499,893 
$ 107,377,918 
$ (42,741,551)
$ 3,620,914 
$ (179,753,247)
$ (467,642)
Ending Balance (in shares) at Mar. 28, 2015
 
75,190,925 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Cash flows from operating activities:
 
 
Net (loss) income
$ (3,813,086)
$ (9,093,319)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
Depreciation and amortization
681,899 
932,974 
Amortization of premium or discount on marketable debt securities
20,645 
17,300 
Stock-based compensation
997,464 
1,126,957 
Gain (Loss) on Sale of Investments
(2,142,421)
0 
Losses in unconsolidated affiliates
0 
102,305 
Deferred income taxes
0 
(122,359)
Foreign Currency Transaction Gain (Loss), before Tax
137,074 
(157,642)
Change in allowance for bad debt
(74,500)
14,679 
Other non-cash items
548,627 
233,078 
Changes in assets and liabilities:
 
 
Accounts receivable
(696,222)
122,945 
Inventory
(140,810)
487,156 
Prepaid expenses and other current assets
168,651 
578,444 
Accounts payable and accrued expenses
(3,071,919)
(504,810)
Billings in excess of revenue earned
1,907,449 
117,491 
Net cash used in operating activities
(5,477,149)
(6,144,801)
Cash flows from investing activities:
 
 
Other assets
(8,250)
(14,127)
Capital expenditures
(314,400)
(444,372)
Proceeds from sale of marketable debt securities
3,805,945 
13,267,391 
Purchase of marketable debt securities
(2,073,061)
(8,444,398)
Proceeds from Sale and Maturity of Other Investments
1,869,804 
0 
Proceeds from Sale of Machinery and Equipment
0 
0 
Net cash provided by investing activities
3,280,038 
4,364,494 
Net cash used in financing activities
 
 
Treasury stock purchases
0 
(298,619)
Proceeds from exercise of stock options
0 
128,441 
Net cash used in financing activities
0 
(170,178)
Effect of exchange rate changes on cash
22,246 
5,429 
Net decrease in cash and equivalents
(2,174,865)
(1,945,056)
Cash and equivalents:
 
 
Beginning of period
14,635,801 
 
End of period
12,460,936 
 
Supplemental disclosure of cash flow information:
 
 
Income taxes paid
50,000 
57,000 
Supplemental schedule of noncash investing activities:
 
 
Construction in progress included in accrued expenses
150,000 
232,000 
Proceeds from Warrant Exercises
$ 1,330,000 
$ 0 
BASIS OF PRESENTATION
Basis of Accounting [Text Block]
BASIS OF PRESENTATION
The accompanying condensed consolidated financial statements include the accounts of Kopin Corporation, its wholly-owned subsidiaries, Kowon Technology Co., Ltd. (Kowon), a majority owned (93%) subsidiary located in Korea, Intoware Ltd. (Intoware), a majority owned (58%) subsidiary located in the United Kingdom, and eMDT America Inc. (eMDT), a majority owned (80%) subsidiary located in California (collectively, the Company). Ownership interests of Kowon, Intoware and eMDT not attributable to the Company are referred to as noncontrolling interests. All intercompany transactions and balances have been eliminated. The condensed consolidated financial statements for the three months ended March 28, 2015 and March 29, 2014 are unaudited and include all adjustments which, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 27, 2014.
The Company ceased its production activities at its Kowon facility in 2013, but as of March 28, 2015 the closure of this facility did not meet the criteria for assets held for sale.
During the second quarter of 2014, the Company paid approximately $0.3 million to acquire an additional 29% ownership in its eMDT subsidiary.
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.
During the three months ended March 28, 2015, the change in the Company's accumulated other comprehensive income was the net of $0.1 million foreign currency translation adjustment, $0.8 million unrealized holding gains on marketable securities and $(0.4) million of reclassified holding gains.
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES
The Company considers all highly liquid, short-term debt instruments with original maturities of three months or less to be cash equivalents.
Marketable debt securities consist primarily of certificates of deposit, medium-term corporate debt, and United States government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale in “Marketable Debt Securities”. The Company records the amortization of premium and accretion of discount on marketable debt securities in the results of operations.
The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the three months ended March 28, 2015 and the year ended December 27, 2014.
Investments in available-for-sale marketable debt securities are as follows at March 28, 2015 and December 27, 2014:
 
Amortized Cost

Unrealized Gains

Unrealized Losses

Fair Value
 
2015

2014

2015

2014

2015

2014

2015

2014
U.S. government and agency backed securities
$
55,667,125


$
57,897,914


$
73,752


$
—


$
—


$
(200,772
)

$
55,740,877


$
57,697,142

Corporate debt and certificates of deposit
18,995,265


18,564,823


—


—


(50,882
)

(38,830
)

18,944,383


18,525,993

Total
$
74,662,390

 
$
76,462,737

 
$
73,752

 
$
—

 
$
(50,882
)
 
$
(239,602
)
 
$
74,685,260

 
$
76,223,135


The contractual maturity of the Company’s marketable debt securities is as follows at March 28, 2015:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
11,150,469

 
$
36,937,584

 
$
7,652,824

 
$
55,740,877

Corporate debt and certificates of deposit
15,740,959

 
2,255,924

 
947,500

 
18,944,383

Total
$
26,891,428

 
$
39,193,508

 
$
8,600,324

 
$
74,685,260


The Company conducts a review of its marketable debt securities on a quarterly basis for the presence of other-than-temporary impairment (OTTI). The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the balance sheet date. Under these circumstances OTTI is considered to have occurred (1) if the Company intends to sell the security before recovery of its amortized cost basis; (2) if it is “more likely than not” the Company will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost basis.
The Company further estimates the amount of OTTI resulting from a decline in the credit worthiness of the issuer (credit-related OTTI) and the amount of non credit-related OTTI. Noncredit-related OTTI can be caused by such factors as market illiquidity. Credit-related OTTI is recognized in earnings while noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The Company did not record an OTTI for the three months ended March 28, 2015 and March 29, 2014.
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. An investment is categorized as Level 3 if its fair value is based on assumptions developed by the Company about what a market participant would use in pricing the assets.
The following table details the fair value measurements of the Company’s financial assets:
 
 
 
Fair Value Measurement March 28, 2015 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
12,460,936

 
$
12,460,936

 
$
—

 
$
—

U.S. Government Securities
55,740,877

 
19,065,259

 
36,675,618

 
—

Corporate Debt
6,779,034

 
—

 
6,779,034

 
—

Certificates of Deposit
12,165,349

 
—

 
12,165,349

 
—

Vuzix Corporation
1,908,957

 
1,908,957

 
—

 
—

GCS Holdings
229,673

 
229,673

 
—

 
—

 
$
89,284,826

 
$
33,664,825

 
$
55,620,001

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 27, 2014 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
14,635,802

 
$
14,635,802

 
$
—

 
$
—

U.S. Government Securities
57,697,142

 
21,218,340

 
36,478,802

 
—

Corporate Debt
5,970,983

 
—

 
5,970,983

 
—

Certificates of Deposit
12,555,010

 
—

 
12,555,010

 
—

Vuzix Corporation
1,500,777

 
1,500,777

 
—

 
—

GCS Holdings
180,347

 
180,347

 
—

 
—

 
$
92,540,061

 
$
37,535,266

 
$
55,004,795

 
$
—

The corporate debt consists of floating rate notes with a maturity that is over multiple years but has interest rates which are reset every three months based on the then current three month London Interbank Offering Rate (three month Libor). The Company validates the fair market values of the financial instruments above by using discounted cash flow models, obtaining independent pricing of the securities or through the use of a model which incorporates the three month Libor, the credit default swap rate of the issuer and the bid and ask price spread of the same or similar investments which are traded on several markets.
The carrying amounts of cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short-term nature.  If accrued liabilities were carried at fair value, these would be classified as Level 2 in the fair value hierarchy.
INVENTORY
Inventory
INVENTORY
Inventory is stated at the lower of cost (determined on the first-in, first-out) or market and consists of the following at March 28, 2015 and December 27, 2014:
 
March 28,
2015
 
December 27,
2014
Raw materials
$
1,401,645

 
$
2,057,202

Work-in-process
1,860,264

 
1,551,799

Finished goods
392,304

 
472,885

 
$
3,654,213

 
$
4,081,886

NET (LOSS) INCOME PER SHARE
Net (loss) Income per share
NET (LOSS) INCOME PER SHARE
Basic net (loss) income per share is computed using the weighted average number of shares of common stock outstanding during the period less any non-vested restricted shares. Diluted earnings per common share, if applicable, is calculated using weighted average shares outstanding and contingently issuable shares, less weighted average shares reacquired during the period. The net outstanding shares are adjusted for the dilutive effect of shares issuable upon the assumed conversion of the Company’s common stock equivalents, which consist of outstanding stock options and unvested restricted stock units.
Weighted average common shares outstanding used to calculate earnings per share are as follows:
 
Three Months Ended
 
March 28, 2015
 
March 29, 2014
Weighted average common shares outstanding-basic
63,083,652

 
62,530,202

Stock options and non-vested restricted common stock
—

 
—

Weighted average common shares outstanding-diluted
63,083,652

 
62,530,202


The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period.
 
March 28, 2015
 
March 29, 2014
Non-vested restricted common stock
3,342,111

 
3,349,148

Stock options
130,000

 
524,600

Total
3,472,111

 
3,873,748


Not included in weighted average common shares outstanding-diluted are the warrants to purchase 148,000 shares of the Company’s common stock for $3.49 per share.
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
The fair value of non-vested restricted common stock awards is generally the market value of the Company’s common stock on the date of grant. The non-vested common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for one, two or four years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards which solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards which require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company recognizes compensation costs on a straight-line basis over the requisite service period for time-vested awards.
On February 13, 2015, the Company modified the termination date of certain restricted stock grants previously made to Dr. Fan, the Company’s President and Chief Executive Officer. In 2011, the Company granted Dr. Fan 260,000 shares of restricted stock which will vest upon the first 10 consecutive trading day period following the grant date during which the Company's common stock trades at a price equal to or greater than $5.25 subject to acceleration upon the occurrence of an acceleration event. This grant was originally set to terminate on September 12, 2016. In 2013, the Company granted compensation awards to its Dr. Fan that consisted of two grants of 150,000 shares of restricted stock each. One of the grants will vest at the end of the first 10 consecutive trading day period following the grant date during which the Company’s common stock trades at a price per share equal to or greater than $6.00. The other award will vest at the end of the first 10 consecutive trading day period following the grant date during which the Company’s common stock trades at a price per share equal to or greater than $7.00. Both are due to expire in 2023. On December 31, 2014, Dr. Fan entered into a 3 year employment agreement with the Company which expires on December 31, 2017. The Company has amended the three grants to now terminate on December 31, 2017, to be consistent with Dr. Fan's employment agreement.

A summary of stock option award activity under the equity plans as of March 28, 2015 and changes during the three month period then ended is as follows (all options were vested as of March 28, 2015):
 
Three months ended March 28, 2015
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 27, 2014
130,500

 
$
3.49

Options forfeited/canceled
(500
)
 
3.87

Options exercised
—

 
—

Balance, all exercisable, March 28, 2015
130,000

 
$
3.49


The weighted average remaining contractual life of the outstanding options is less than one year. The Company has issued warrants to purchase 148,000 shares of the Company’s common stock for $3.49 per share.

Non-Vested Restricted Common Stock
A summary of the activity for non-vested restricted common stock awards as of March 28, 2015 and changes during the three month period then ended is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 27, 2014
2,551,631

 
$
3.75

Granted
919,000

 
3.92

Forfeited
(128,520
)
 
3.75

Vested
—

 
—

Balance, March 28, 2015
3,342,111

 
$
3.80


Included within the non-vested restricted common stock table above is 50,000 awards granted for which the performance conditions have yet to be determined and therefore a grant date has not yet been established for the award.  No stock-based compensation expense has been recorded relating to this award during the three month period ended March 28, 2015.

Subsequent to the year ended December 27, 2014, the Company identified an error in its calculation of the weighted average grant fair value of issued restricted stock outstanding as of December 27, 2014. The Company had disclosed a weighted average grant fair value of $4.41 in its Form 10-K for the year ended December 27, 2014, however the correct weighted average fair value was $3.75. The Company has revised the amount within the quarter ended March 28, 2015.

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 28, 2015 and March 29, 2014 (no tax benefits were recognized):
 
Three Months Ended
 
March 28,
2015
 
March 29,
2014
Cost of component revenues
$
199,239

 
$
230,333

Research and development
234,406

 
332,463

Selling, general and administrative
563,819

 
564,161

Total
$
997,464

 
$
1,126,957


Unrecognized compensation expense for non-vested restricted common stock as of March 28, 2015 totaled $6.2 million and is expected to be recognized over a weighted average period of three years.
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND NOTE RECEIVABLE
During the second quarter of 2014, the Company wrote-off its $1.3 million investment in Kobrite. Prior to the write-off, the Company accounted for its 12% ownership interest using the equity method. One of the Company’s directors is a member of the Board of Directors of Bright LED, principal investor of KoBrite.
The Company has recorded a $14.9 million note receivable resulting from the sale of its III-V product line and its investment in KTC, which is due January 16, 2016. The receivable is collateralized by certain assets of the buyer of the III-V product line. The buyer has outstanding debt and the repayment of the receivable is subject to the buyer remaining within its debt compliance obligations at the time of repayment.

As of March 28, 2015 the Company had an investment in GCS Holdings with a fair market value of $0.2 million and an adjusted cost basis of $0.0 million. As of December 27, 2014, GCS Holdings had a fair market value of $0.2 million, with an adjusted cost basis of $0.0 million.

As of December 27, 2014, the Company had an investment in Vuzix Corporation (“Vuzix”) with a fair market value of $1.5 million and adjusted cost basis of $0.0 million. On February 25, 2015, the Company acquired approximately 251,000 shares of Vuzix common stock through a cashless exercise of warrants. The Company received the warrants in August 2013 as part of a restructuring of debt owed by Vuzix to the Company. Upon receipt of the warrants, the Company should have recorded the value of the warrant of approximately $352,000 in its consolidated financial statements. Subsequently, the Company should have marked to market the warrants at the end of each reporting period. Had the Company recorded the warrants in its consolidated financial statements and marked to market the warrants as of December 28, 2013 and December 27, 2014, the Company would have recorded gains in its statement of operations of approximately $646,000 and $171,000, respectively. In the first quarter of 2015, the Company recorded the warrants in its consolidated financial statements and as a result recorded a gain of approximately $1.3 million with $817,000 attributed to prior periods. The value of the warrants as of August 2013, December 28, 2013 and December 27, 2014 was determined using the Black-Scholes pricing model. The Company does not believe the unrecorded gains were material to the consolidated financial statements as the loss from operations for the fiscal years ended December 28, 2013 and December 27, 2014 were $35.9 million and $28.7 million, respectively. As of March 28, 2015, the Company’s investment in Vuzix had a fair market value of $1.9 million with adjusted cost basis of $0.3 million.
ACCRUED WARRANTY
ACCRUED WARRANTY
ACCRUED WARRANTY
The Company typically warrants its products against defect for 12 months. A provision for estimated future costs and estimated returns for credit relating to warranty is recorded in the period when product is shipped and revenue recognized, and is updated as additional information becomes available. The Company’s estimate of future costs to satisfy warranty obligations is based primarily on historical warranty expense experienced and a provision for potential future product failures. Changes in the accrued warranty for the three months ended March 28, 2015 are as follows:
Balance, December 27, 2014
$
716,000

Additions
128,000

Claim and reversals
(128,000
)
Balance, March 28, 2015
$
716,000

INCOME TAXES
INCOME TAXES
INCOME TAXES
The Company’s tax provision of approximately $12,500 for the three month period ended March 28, 2015 represents the net movement in estimated foreign withholding on anticipated future remitted earnings of an international subsidiary and state taxes. The Company’s tax benefit of approximately $143,000 for the three month period ended March 29, 2014 represents a reduction in estimated foreign withholding taxes due on an international subsidiary.
As of March 28, 2015, the Company has available for tax purposes U.S. federal NOLs of approximately $71 million expiring through 2034. The Company has recognized a full valuation allowance on its domestic and certain foreign net deferred tax assets due to the uncertainty of realization of such assets. The Company has not historically recorded, nor does it intend to record the tax benefits from stock awards until realized. Unrecorded benefits from stock awards approximate $10 million.
The Company’s income tax returns have not been examined by the Internal Revenue Service and are subject to examination for all years since 2001. State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states.
SEGMENTS AND GEOGRAPHICAL INFORMATION
SEGMENTS AND GEOGRAPHICAL INFORMATION
SEGMENTS AND GEOGRAPHICAL INFORMATION
The Company’s chief operating decision maker is its Chief Executive Officer. The Company has determined it has two reportable segments, FDD, the manufacturer of its reflective display products for test and simulation products, and Kopin, which is comprised of Kopin Corporation, Kowon, Intoware and eMDT. The following table presents the Company’s reportable segment results (in thousands):
 
Three Months Ended
 
March 28, 2015
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
Revenues
$
7,586

 
$
999

 
$
8,585

Net loss attributable to the controlling interest
(3,373
)
 
(465
)
 
(3,838
)
Total assets
117,684

 
1,523

 
119,207

Long-lived assets
4,067

 
180

 
4,247

The total assets of Kopin is net of $5.2 million and $5.0 million in intercompany loans to FDD as of March 28, 2015 and December 27, 2014, respectively.
 
Three Months Ended
 
March 29, 2014
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
Revenues
$
3,902

 
$
793

 
$
4,695

Net loss attributable to the controlling interest
(8,624
)
 
(510
)
 
(9,134
)
Total assets
135,080

 
2,014

 
137,094

Long-lived assets
4,927

 
423

 
5,350


During the three month periods ended March 28, 2015 and March 29, 2014, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
March 28, 2015
 
March 29, 2014
United States
74
%
 
37
%
Others
2
%
 
—
%
        Americas
76
%
 
37
%
Asia-Pacific
16
%
 
47
%
Europe
8
%
 
16
%
       Total Revenues
100
%
 
100
%
LITIGATION
LITIGATION
LITIGATION
The Company may engage in legal proceedings arising in the ordinary course of business. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of such matters and our business, financial condition, results of operations or cash flows could be affected in any particular period.
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Tables)
Cash Cash Equivalents and Marketable Securities Table 
Investments in available-for-sale marketable debt securities are as follows at March 28, 2015 and December 27, 2014:
 
Amortized Cost

Unrealized Gains

Unrealized Losses

Fair Value
 
2015

2014

2015

2014

2015

2014

2015

2014
U.S. government and agency backed securities
$
55,667,125


$
57,897,914


$
73,752


$
—


$
—


$
(200,772
)

$
55,740,877


$
57,697,142

Corporate debt and certificates of deposit
18,995,265


18,564,823


—


—


(50,882
)

(38,830
)

18,944,383


18,525,993

Total
$
74,662,390

 
$
76,462,737

 
$
73,752

 
$
—

 
$
(50,882
)
 
$
(239,602
)
 
$
74,685,260

 
$
76,223,135

Marketable Debt Securities 
The contractual maturity of the Company’s marketable debt securities is as follows at March 28, 2015:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
11,150,469

 
$
36,937,584

 
$
7,652,824

 
$
55,740,877

Corporate debt and certificates of deposit
15,740,959

 
2,255,924

 
947,500

 
18,944,383

Total
$
26,891,428

 
$
39,193,508

 
$
8,600,324

 
$
74,685,260

FAIR VALUE MEASUREMENTS (Tables)
Fair Value Measurements of Financial Instruments
The following table details the fair value measurements of the Company’s financial assets:
 
 
 
Fair Value Measurement March 28, 2015 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
12,460,936

 
$
12,460,936

 
$
—

 
$
—

U.S. Government Securities
55,740,877

 
19,065,259

 
36,675,618

 
—

Corporate Debt
6,779,034

 
—

 
6,779,034

 
—

Certificates of Deposit
12,165,349

 
—

 
12,165,349

 
—

Vuzix Corporation
1,908,957

 
1,908,957

 
—

 
—

GCS Holdings
229,673

 
229,673

 
—

 
—

 
$
89,284,826

 
$
33,664,825

 
$
55,620,001

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 27, 2014 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
14,635,802

 
$
14,635,802

 
$
—

 
$
—

U.S. Government Securities
57,697,142

 
21,218,340

 
36,478,802

 
—

Corporate Debt
5,970,983

 
—

 
5,970,983

 
—

Certificates of Deposit
12,555,010

 
—

 
12,555,010

 
—

Vuzix Corporation
1,500,777

 
1,500,777

 
—

 
—

GCS Holdings
180,347

 
180,347

 
—

 
—

 
$
92,540,061

 
$
37,535,266

 
$
55,004,795

 
$
—

INVENTORY (Tables)
Inventory Stated at the Lower of Cost or Market
Inventory is stated at the lower of cost (determined on the first-in, first-out) or market and consists of the following at March 28, 2015 and December 27, 2014:
 
March 28,
2015
 
December 27,
2014
Raw materials
$
1,401,645

 
$
2,057,202

Work-in-process
1,860,264

 
1,551,799

Finished goods
392,304

 
472,885

 
$
3,654,213

 
$
4,081,886

NET (LOSS) INCOME PER SHARE (Tables)
Weighted Average Common Shares Outstanding 
Weighted average common shares outstanding used to calculate earnings per share are as follows:
 
Three Months Ended
 
March 28, 2015
 
March 29, 2014
Weighted average common shares outstanding-basic
63,083,652

 
62,530,202

Stock options and non-vested restricted common stock
—

 
—

Weighted average common shares outstanding-diluted
63,083,652

 
62,530,202

Weighted Average Common Shares Outstanding-Diluted 
The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period.
 
March 28, 2015
 
March 29, 2014
Non-vested restricted common stock
3,342,111

 
3,349,148

Stock options
130,000

 
524,600

Total
3,472,111

 
3,873,748

STOCK-BASED COMPENSATION (Tables)
Stock- Based Compensation 
A summary of stock option award activity under the equity plans as of March 28, 2015 and changes during the three month period then ended is as follows (all options were vested as of March 28, 2015):
 
Three months ended March 28, 2015
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 27, 2014
130,500

 
$
3.49

Options forfeited/canceled
(500
)
 
3.87

Options exercised
—

 
—

Balance, all exercisable, March 28, 2015
130,000

 
$
3.49

NonVested Restricted Common Stock 
A summary of the activity for non-vested restricted common stock awards as of March 28, 2015 and changes during the three month period then ended is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 27, 2014
2,551,631

 
$
3.75

Granted
919,000

 
3.92

Forfeited
(128,520
)
 
3.75

Vested
—

 
—

Balance, March 28, 2015
3,342,111

 
$
3.80

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 28, 2015 and March 29, 2014 (no tax benefits were recognized):
 
Three Months Ended
 
March 28,
2015
 
March 29,
2014
Cost of component revenues
$
199,239

 
$
230,333

Research and development
234,406

 
332,463

Selling, general and administrative
563,819

 
564,161

Total
$
997,464

 
$
1,126,957

ACCRUED WARRANTY (Tables)
Accrued Warranty
Changes in the accrued warranty for the three months ended March 28, 2015 are as follows:
Balance, December 27, 2014
$
716,000

Additions
128,000

Claim and reversals
(128,000
)
Balance, March 28, 2015
$
716,000

SEGMENTS AND GEOGRAPHICAL INFORMATION (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block] 
The following table presents the Company’s reportable segment results (in thousands):
 
Three Months Ended
 
March 28, 2015
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
Revenues
$
7,586

 
$
999

 
$
8,585

Net loss attributable to the controlling interest
(3,373
)
 
(465
)
 
(3,838
)
Total assets
117,684

 
1,523

 
119,207

Long-lived assets
4,067

 
180

 
4,247

The total assets of Kopin is net of $5.2 million and $5.0 million in intercompany loans to FDD as of March 28, 2015 and December 27, 2014, respectively.
 
Three Months Ended
 
March 29, 2014
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
Revenues
$
3,902

 
$
793

 
$
4,695

Net loss attributable to the controlling interest
(8,624
)
 
(510
)
 
(9,134
)
Total assets
135,080

 
2,014

 
137,094

Long-lived assets
4,927

 
423

 
5,350

Percentage of Net Revenues by Geographies 
During the three month periods ended March 28, 2015 and March 29, 2014, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
March 28, 2015
 
March 29, 2014
United States
74
%
 
37
%
Others
2
%
 
—
%
        Americas
76
%
 
37
%
Asia-Pacific
16
%
 
47
%
Europe
8
%
 
16
%
       Total Revenues
100
%
 
100
%
BASIS OF PRESENTATION (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
$ 461,783 
Reclassified holding gains
(400,000)
Kowon Technology Corporation Limited [Member]
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
93.00% 
Intoware
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
58.00% 
eMDT
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
80.00% 
Payments to Acquire Additional Interest in Subsidiaries
300,000 
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent
0.29 
Accumulated Translation Adjustment [Member]
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax
100,000 
Accumulated Net Unrealized Investment Gain (Loss) [Member]
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
$ 800,000 
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) (USD $)
Mar. 28, 2015
Dec. 27, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
$ 74,662,390 
$ 76,462,737 
Unrealized Gains
73,752 
0 
Unrealized Losses
(50,882)
(239,602)
Fair Value
74,685,260 
76,223,135 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
26,891,428 
 
One to five years
39,193,508 
 
Greater than five years
8,600,324 
 
Available-for-sale Securities
74,685,260 
 
U.S. government and agency backed securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
55,667,125 
57,897,914 
Unrealized Gains
73,752 
0 
Unrealized Losses
0 
(200,772)
Fair Value
55,740,877 
57,697,142 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
11,150,469 
 
One to five years
36,937,584 
 
Greater than five years
7,652,824 
 
Available-for-sale Securities
55,740,877 
 
Corporate debt and certificates of deposit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
18,995,265 
18,564,823 
Unrealized Gains
0 
0 
Unrealized Losses
(50,882)
(38,830)
Fair Value
18,944,383 
18,525,993 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
15,740,959 
 
One to five years
2,255,924 
 
Greater than five years
947,500 
 
Available-for-sale Securities
$ 18,944,383 
 
FAIR VALUE MEASUREMENTS (Details) (USD $)
Mar. 28, 2015
Dec. 27, 2014
Level 1
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
$ 33,664,825 
$ 37,535,266 
Level 1 |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
12,460,936 
14,635,802 
Level 1 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
19,065,259 
21,218,340 
Level 1 |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
1,908,957 
1,500,777 
Level 1 |
GCS [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
229,673 
180,347 
Level 2
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
55,620,001 
55,004,795 
Level 2 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
36,675,618 
36,478,802 
Level 2 |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
6,779,034 
5,970,983 
Level 2 |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
12,165,349 
12,555,010 
Level 2 |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
 
0 
Level 3
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Level 3 |
GCS [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
0 
0 
Estimate of Fair Value
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
89,284,826 
92,540,061 
Estimate of Fair Value |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
12,460,936 
14,635,802 
Estimate of Fair Value |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
55,740,877 
57,697,142 
Estimate of Fair Value |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
6,779,034 
5,970,983 
Estimate of Fair Value |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
12,165,349 
12,555,010 
Estimate of Fair Value |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
1,908,957 
1,500,777 
Estimate of Fair Value |
GCS [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
$ 229,673 
$ 180,347 
INVENTORY (Details) (USD $)
Mar. 28, 2015
Dec. 27, 2014
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 1,401,645 
$ 2,057,202 
Work-in-process
1,860,264 
1,551,799 
Finished goods
392,304 
472,885 
Inventory
$ 3,654,213 
$ 4,081,886 
NET (LOSS) INCOME PER SHARE (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Weighted average common shares outstanding - basic
63,083,652 
62,530,202 
Stock options and non-vested restricted common stock
0 
0 
Weighted average common shares outstanding - diluted
63,083,652 
62,530,202 
Antidilutive securities excluded from computation of earnings per share
3,472,111 
3,873,748 
Issuance Of Warrants Shares
148,000 
 
Exercise Price Of Warrants
$ 3.49 
 
Non-vested restricted common stock
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share
3,342,111 
3,349,148 
Stock options
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share
130,000 
524,600 
STOCK-BASED COMPENSATION (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 28, 2015
Class of Warrant or Right [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
150,000 
Warrant issued to purchase company's stock
148,000 
Warrant issued to purchase company's stock, exercise price
$ 3.49 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
50,000 
Restricted Stock [Member]
 
Class of Warrant or Right [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
260,000 
Unrecognized compensation cost related to nonvested stock awards
$ 6.2 
Unrecognized compensation cost related to nonvested stock awards, period of recognition (in years)
3 years 
Restricted Stock and Phantom Share Units [Member]
 
Class of Warrant or Right [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period
10 days 
Share-based Compensation Award, Tranche One
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
1 year 
Market Price Of Common Stock Range Low
$ 6.0 
Share-based Compensation Award, Tranche Two
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
2 years 
Market Price Of Common Stock Range Low
$ 7.0 
Share-based Compensation Award, Tranche Three
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
4 years 
Share-based Compensation Award, Tranche Three |
Restricted Stock and Phantom Share Units [Member]
 
Class of Warrant or Right [Line Items]
 
Market Price Of Common Stock Range Low
$ 5.25 
STOCK-BASED COMPENSATION - Summary of Award Activity under the Stock Option Plans and Changes (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Shares
 
Beginning Balance
130,500 
Options forfeited/cancelled
(500)
Options exercised
0 
Ending Balance
130,000 
Weighted Average Exercise Price
 
Beginning Balance
$ 3.49 
Options forfeited/cancelled
$ 3.87 
Options exercised
$ 0.00 
Ending Balance
$ 3.49 
STOCK-BASED COMPENSATION - Summary of Activity for Nonvested Restricted Common Stock Awards (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
50,000 
Shares
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
150,000 
Restricted Stock [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Unrecognized compensation cost related to nonvested stock awards
$ 6.2 
Shares
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
260,000 
Non-vested restricted common stock
 
Shares
 
Beginning Balance
2,551,631 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
919,000 
Forfeited
(128,520)
Vested
0 
Ending Balance
3,342,111 
Weighted Average Grant Fair Value
 
Beginning Balance
$ 3.75 
Granted
$ 3.92 
Forfeited
$ 3.75 
Vested
$ 0.00 
Ending Balance
$ 3.80 
STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
$ 997,464 
$ 1,126,957 
Cost of product revenues
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
199,239 
230,333 
Research and development
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
234,406 
332,463 
Selling, general and administrative
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
$ 563,819 
$ 564,161 
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES (Details) (USD $)
3 Months Ended 12 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Dec. 27, 2014
Dec. 28, 2013
Dec. 29, 2012
Jan. 16, 2013
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
Accounts and Notes Receivable, Net
 
 
 
 
 
$ 14,900,000 
Available-for-sale Securities
74,685,260 
 
 
 
 
 
Class of Warrant or Right, Unissued
251,000 
 
 
 
 
 
Warrants and Rights Outstanding
352,000 
 
 
 
 
 
Prior Period Reclassification Adjustment
1,300,000 
 
171,000 
646,000 
817,000 
 
Net (loss) income
(3,813,086)
(9,093,319)
28,700,000 
35,900,000 
 
 
Ko Brite (Member)
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
Carrying value of the investment
1,300,000 
 
 
 
 
 
Company's ownership percentage
12.00% 
 
 
 
 
 
Vuzix [Member]
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
Available-for-sale Securities
1,900,000 
 
1,500,000 
 
 
 
Available-for-sale Equity Securities, Amortized Cost Basis
300,000 
 
0 
 
 
 
GCS Holdings [Member]
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
Available-for-sale Securities
200,000 
 
200,000 
 
 
 
Available-for-sale Equity Securities, Amortized Cost Basis
$ 0 
 
$ 0 
 
 
 
ACCRUED WARRANTY (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Product Warranties Disclosures [Abstract]
 
Product warranty term
12 months 
Movement in Standard Product Warranty Accrual [Roll Forward]
 
Beginning Balance
$ 716,000 
Additions
128,000 
Claim and reversals
(128,000)
Ending Balance
$ 716,000 
INCOME TAXES (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Mar. 30, 2013
Income Taxes [Line Items]
 
 
 
State income and foreign tax expenses
$ 12,500 
$ (143,000)
$ 143,000 
Net operating loss carryforwards available for tax purposes
71,000,000 
 
 
Unrecorded benefits from stock award
$ 10,000,000 
 
 
Minimum
 
 
 
Income Taxes [Line Items]
 
 
 
State income tax returns examination period
3 years 
 
 
Maximum
 
 
 
Income Taxes [Line Items]
 
 
 
State income tax returns examination period
5 years 
 
 
The state impact of any federal changes, subject to examination by various states (in years)
1 year 
 
 
SEGMENTS AND GEOGRAPHICAL INFORMATION (Details) (USD $)
3 Months Ended
Mar. 28, 2015
Mar. 29, 2014
Dec. 27, 2014
Sep. 28, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenues
$ 8,584,991 
$ 4,694,770 
 
 
Net Income (Loss) Attributable to Parent
(3,837,992)
(9,134,416)
 
 
Assets
119,207,097 
 
122,941,414 
 
Debt of Subsidiary, Not Assumed
5,200,000 
 
 
5,000,000 
Percentage of total revenue
100.00% 
100.00% 
 
 
UNITED STATES
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Percentage of total revenue
74.00% 
37.00% 
 
 
All Others
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Percentage of total revenue
2.00% 
0.00% 
 
 
Americas
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Percentage of total revenue
76.00% 
37.00% 
 
 
Asia-Pacific
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Percentage of total revenue
16.00% 
47.00% 
 
 
Europe
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Percentage of total revenue
8.00% 
16.00% 
 
 
Segment, Continuing Operations [Member]
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenues
8,585 
4,695,000 
 
 
Net Income (Loss) Attributable to Parent
(3,838)
(9,134,000)
 
 
Assets
119,207 
137,093,895 
 
 
Long-Lived Assets
4,247 
5,350,375 
 
 
Segment, Continuing Operations [Member] |
Kopin United States [Member]
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenues
7,586 
3,902,000 
 
 
Net Income (Loss) Attributable to Parent
(3,373)
(8,624,000)
 
 
Assets
117,684 
135,079,692 
 
 
Long-Lived Assets
4,067 
4,926,972 
 
 
Segment, Continuing Operations [Member] |
Forth Dimension Displays Limited [Member]
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
Revenues
999 
793,000 
 
 
Net Income (Loss) Attributable to Parent
(465)
(510,000)
 
 
Assets
1,523 
2,014,203 
 
 
Long-Lived Assets
$ 180 
$ 423,403