|
|
|
|
|
|
|
2015 | 2014 | ||||||
Raw materials | $ | 844,475 | $ | 2,057,202 | |||
Work-in-process | 1,281,891 | 1,551,799 | |||||
Finished goods | 386,107 | 472,885 | |||||
$ | 2,512,473 | $ | 4,081,886 |
2015 | 2014 | ||||||
Beginning balance | $ | 311,187 | $ | 329,435 | |||
Additions | — | — | |||||
Charges | — | — | |||||
Exchange rate change | (12,724 | ) | (18,248 | ) | |||
Ending balance | $ | 298,463 | $ | 311,187 |
2015 | 2014 | 2013 | ||||||
Weighted-average common shares outstanding—basic | 63,465,797 | 62,638,675 | 62,347,852 | |||||
Stock options and nonvested restricted common stock | — | — | — | |||||
Weighted-average common shares outstanding—diluted | 63,465,797 | 62,638,675 | 62,347,852 |
2015 | 2014 | 2013 | ||||||
Nonvested restricted common stock | 2,192,016 | 2,551,631 | 3,024,148 | |||||
Stock options | — | 130,500 | 558,850 | |||||
Total | 2,192,016 | 2,682,131 | 3,582,998 |
Cumulative Translation Adjustment | Unrealized Holding Gain (Loss) on Marketable Securities | Acquisition of Minority Interest in KSL | Accumulated Other Comprehensive Income | ||||||||||||
Balance as of December 29, 2012 | $ | 3,542,104 | $ | 2,970,688 | $ | — | $ | 6,512,792 | |||||||
Changes during year | (1,017,403 | ) | (2,053,392 | ) | — | (3,070,795 | ) | ||||||||
Balance as of December 28, 2013 | 2,524,701 | 917,296 | — | 3,441,997 | |||||||||||
Changes during year | (990,626 | ) | 674,868 | — | (315,758 | ) | |||||||||
Balance as of December 27, 2014 | 1,534,075 | 1,592,164 | — | 3,126,239 | |||||||||||
Changes during year | (1,001,733 | ) | (1,386,415 | ) | 33,683 | (2,354,465 | ) | ||||||||
Balance as of December 26, 2015 | $ | 532,342 | $ | 205,749 | $ | 33,683 | $ | 771,774 |
|
December 28, 2013 | |||
Net product and research and development revenues | $ | 2.3 | |
(Loss) gain from discontinued operations before income taxes | (0.2 | ) | |
(Provision) benefit for income taxes on discontinued operations | — | ||
Discontinued operations, net of tax | (0.2 | ) | |
Gain on sale, net of $13.1 million of tax | 20.4 | ||
Income from discontinued operations, net of tax | $ | 20.2 |
|
Useful Life | 2015 | 2014 | |||||||
Land | $ | — | $ | 877,485 | |||||
Buildings | 10 years | — | 2,298,367 | ||||||
Equipment | 3-5 years | 18,765,548 | 19,696,919 | ||||||
Leasehold improvements | Life of the lease | 3,659,559 | 3,652,395 | ||||||
Furniture and fixtures | 3 years | 789,067 | 886,985 | ||||||
Equipment under construction | 312,916 | 657,142 | |||||||
23,527,090 | 28,069,293 | ||||||||
Accumulated depreciation and amortization | (20,849,987 | ) | (23,479,872 | ) | |||||
Net property, plant and equipment | $ | 2,677,103 | $ | 4,589,421 |
|
2015 | 2014 | 2013 | |||||||||
KoBrite | $ | — | $ | (102,305 | ) | $ | (406,811 | ) | |||
Ask Ziggy | $ | (47,443 | ) | $ | (284,137 | ) | $ | (218,287 | ) | ||
Total | $ | (47,443 | ) | $ | (386,442 | ) | $ | (625,098 | ) |
2013 | |||
Current assets | $ | 7,769,000 | |
Noncurrent assets | 10,663,000 | ||
Current liabilities | 1,207,000 | ||
Revenues | 5,085,000 | ||
Margin loss | (2,501,000 | ) | |
Loss from operations | (6,114,000 | ) | |
Net loss | (5,526,000 | ) |
|
|
Fiscal Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Beginning Balance | $ | 976,451 | $ | 1,016,132 | |||
Change due to exchange rate fluctuations | (30,369 | ) | (39,681 | ) | |||
Ending Balance | $ | 946,082 | $ | 976,451 |
Years | |
Customer relationships | 7 |
Developed technology | 7 |
Trademark portfolio | 7 |
|
Fair Value Measurement at December 26, 2015 Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Money Markets and Cash Equivalents | $ | 19,767,889 | $ | 19,767,889 | $ | — | $ | — | |||||||
U.S. Government Securities | 46,464,663 | 16,381,152 | 30,083,511 | — | |||||||||||
Corporate Debt | 6,886,495 | — | 6,886,495 | — | |||||||||||
Certificates of Deposit | 7,591,733 | — | 7,591,733 | — | |||||||||||
GCS Holdings | 232,037 | 232,037 | — | — | |||||||||||
$ | 80,942,817 | $ | 36,381,078 | $ | 44,561,739 | $ | — |
Fair Value Measurement at December 27, 2014 Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Money Markets and Cash 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 | $ | — |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
U.S. government and agency backed securities | $ | 46,586,224 | $ | 57,897,914 | $ | — | $ | — | $ | (121,561 | ) | $ | (200,772 | ) | $ | 46,464,663 | $ | 57,697,142 | |||||||||||||
Corporate debt and certificates of deposits | 14,534,247 | 18,564,823 | — | — | (56,019 | ) | (38,830 | ) | 14,478,228 | 18,525,993 | |||||||||||||||||||||
Total | $ | 61,120,471 | $ | 76,462,737 | $ | — | $ | — | $ | (177,580 | ) | $ | (239,602 | ) | $ | 60,942,891 | $ | 76,223,135 |
Less than One year | One to Five years | Greater than Five years | Total | ||||||||||||
U.S. government and agency backed securities | $ | 17,460,832 | $ | 23,906,600 | $ | 5,097,231 | $ | 46,464,663 | |||||||
Corporate debt and certificates of deposits | 12,086,055 | 2,392,173 | — | 14,478,228 | |||||||||||
Total | $ | 29,546,887 | $ | 26,298,773 | $ | 5,097,231 | $ | 60,942,891 |
|
2015 | ||||||
Shares | Weighted Average Exercise Price | |||||
Balance, beginning of year | 130,500 | $ | 3.49 | |||
Options forfeited/canceled | (125,358 | ) | 3.50 | |||
Options exercised | (5,142 | ) | 3.16 | |||
Balance, end of year | — | $ | — |
Shares | Weighted Average Grant Fair Value | |||||
Balance, December 27, 2014 | 2,551,631 | $ | 3.75 | |||
Granted | 1,255,696 | 3.77 | ||||
Forfeited | (388,320 | ) | 3.64 | |||
Vested | (1,226,991 | ) | 3.68 | |||
Balance, December 26, 2015 | 2,192,016 | $ | 3.82 |
2015 | 2014 | 2013 | |||||||||
Cost of component revenues | $ | 729,715 | $ | 766,221 | $ | 414,842 | |||||
Research and development | 776,946 | 965,945 | 423,548 | ||||||||
Selling, general and administrative | 1,638,818 | 3,095,606 | 3,365,018 | ||||||||
Total | $ | 3,145,479 | $ | 4,827,772 | $ | 4,203,408 |
|
Percent of Gross Accounts Receivable | |||
Customer | 2015 | 2014 | |
Company A | * | 32 | |
Company B | 21 | 14 | |
Company C | * | 9 | |
Company D | 15 | * | |
Company E | * | 1 | |
Company F | * | 5 | |
Company G | * | 8 |
Sales as a Percent of Total Revenue | |||||
Fiscal Year | |||||
Customer | 2015 | 2014 | 2013 | ||
Military Customers in Total | 32 | 45 | 38 | ||
Company A | 18 | 26 | 13 | ||
Company C | 22 | 11 | * | ||
Company E | * | * | 18 | ||
Funded Research and Development Contracts | 12 | 4 | 7 |
|
Fiscal Year | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | (13,124,000 | ) | ||||
State | 50,000 | 50,000 | 12,000 | ||||||||
Foreign | — | — | (34,000 | ) | |||||||
Total current provision (benefit) | 50,000 | 50,000 | (13,146,000 | ) | |||||||
Deferred | |||||||||||
Federal | (5,356,000 | ) | (9,554,000 | ) | (3,616,000 | ) | |||||
State | (62,000 | ) | (1,709,000 | ) | 644,000 | ||||||
Foreign | 188,000 | 411,000 | (565,000 | ) | |||||||
Change in valuation allowance | 5,155,000 | 10,622,000 | 3,750,000 | ||||||||
Total deferred (benefit) provision | (75,000 | ) | (230,000 | ) | 213,000 | ||||||
Total (benefit) provision for income taxes | $ | (25,000 | ) | $ | (180,000 | ) | $ | (12,933,000 | ) |
Fiscal Year | |||||||||||
2015 | 2014 | 2013 | |||||||||
Tax provision at federal statutory rates | $ | (5,187,000 | ) | $ | (9,964,000 | ) | $ | (13,322,000 | ) | ||
State tax liability | 33,000 | 33,000 | 8,000 | ||||||||
Foreign deferred | 153,000 | 371,000 | (644,000 | ) | |||||||
Foreign withholding | (75,000 | ) | (196,000 | ) | 308,000 | ||||||
Outside basis in KTC and Kowon, net | (180,000 | ) | (394,000 | ) | (202,000 | ) | |||||
Nondeductible expenses | (402,000 | ) | (21,000 | ) | 306,000 | ||||||
Increase in net state operating loss carryforwards | (158,000 | ) | (177,000 | ) | (2,868,000 | ) | |||||
Utilization of net operating losses for U.K. research and development refund | 719,000 | 1,089,000 | — | ||||||||
Provision to tax return adjustments and state tax rate change | 264,000 | (516,000 | ) | (33,000 | ) | ||||||
Tax credits | (501,000 | ) | (610,000 | ) | (390,000 | ) | |||||
Non-deductible 162M compensation limitations | 40,000 | 196,000 | 558,000 | ||||||||
Non-deductible equity compensation | (34,000 | ) | (687,000 | ) | (418,000 | ) | |||||
Other, net | 148,000 | 74,000 | 14,000 | ||||||||
Change in valuation allowance | 5,155,000 | 10,622,000 | 3,750,000 | ||||||||
$ | (25,000 | ) | $ | (180,000 | ) | $ | (12,933,000 | ) |
Fiscal Year | |||||||
2015 | 2014 | ||||||
Deferred tax liability: | |||||||
Foreign withholding liability | $ | (1,207,000 | ) | $ | (1,282,000 | ) | |
Foreign unremitted earnings | (2,701,000 | ) | (2,882,000 | ) | |||
Deferred tax assets: | |||||||
Federal net operating loss carryforwards | 28,984,000 | 22,758,000 | |||||
State net operating loss carryforwards | 1,913,000 | 1,689,000 | |||||
Foreign net operating loss carryforwards | 2,430,000 | 2,612,000 | |||||
Equity awards | 2,249,000 | 2,508,000 | |||||
Tax credits | 6,768,000 | 6,267,000 | |||||
Equipment | 1,113,000 | 1,024,000 | |||||
Investments | 3,240,000 | 5,279,000 | |||||
Other | 3,667,000 | 3,253,000 | |||||
Net deferred tax assets | 46,456,000 | 41,226,000 | |||||
Valuation allowance | (47,663,000 | ) | (42,508,000 | ) | |||
$ | (1,207,000 | ) | $ | (1,282,000 | ) |
|
Fiscal Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Beginning Balance | $ | 716,000 | $ | 716,000 | |||
Additions | 598,000 | 798,000 | |||||
Claim and reversals | (796,000 | ) | (798,000 | ) | |||
Ending Balance | $ | 518,000 | $ | 716,000 |
|
|
Fiscal Year ending, | Amount | ||
2016 | $ | 1,097,000 | |
2017 | 800,000 | ||
2018 | 666,000 | ||
2019 | 639,000 | ||
2020 | 637,000 | ||
Thereafter | 1,492,000 | ||
Total minimum lease payments | $ | 5,331,000 |
|
|
Kopin | FDD | Total | |||||||||
2015 | |||||||||||
Revenues | $ | 28,538 | $ | 3,516 | $ | 32,054 | |||||
Net loss attributable to the controlling interest | (13,429 | ) | (1,264 | ) | (14,693 | ) | |||||
Total assets from continuing operations | 104,677 | 1,524 | 106,201 | ||||||||
Long-lived assets from continuing operations | 2,639 | 38 | 2,677 | ||||||||
Property and plant held for sale | 819 | — | 819 | ||||||||
2014 | |||||||||||
Revenues | $ | 28,333 | $ | 3,474 | $ | 31,807 | |||||
Net loss attributable to the controlling interest | (26,402 | ) | (1,810 | ) | (28,212 | ) | |||||
Total assets from continuing operations | 121,301 | 1,640 | 122,941 | ||||||||
Long-lived assets from continuing operations | 4,343 | 246 | 4,589 | ||||||||
2013 | |||||||||||
Revenues | $ | 19,883 | $ | 3,014 | $ | 22,898 | |||||
Net loss attributable to the controlling interest | (2,003 | ) | (2,707 | ) | (4,710 | ) | |||||
Total assets from continuing operations | 143,953 | 2,179 | 146,132 | ||||||||
Long-lived assets from continuing operations | 5,488 | 547 | 6,035 |
Fiscal Year | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Revenue | % of Total | Revenue | % of Total | Revenue | % of Total | |||||||||||||||
US | $ | 21,758,000 | 68 | % | $ | 19,695,000 | 62 | % | $ | 11,927,000 | 53 | % | ||||||||
Other Americas | 395,000 | 1 | % | 416,000 | 1 | % | 230,000 | 1 | % | |||||||||||
Total Americas | 22,153,000 | 69 | % | 20,111,000 | 63 | % | 12,157,000 | 54 | % | |||||||||||
Asia-Pacific | 7,160,000 | 22 | % | 8,245,000 | 26 | % | 8,292,000 | 36 | % | |||||||||||
Europe | 2,741,000 | 9 | % | 3,451,000 | 11 | % | 2,449,000 | 10 | % | |||||||||||
Total Revenues | $ | 32,054,000 | 100 | % | $ | 31,807,000 | 100 | % | $ | 22,898,000 | 100 | % |
Fiscal Years | |||||||
2015 | 2014 | ||||||
United States of America | $ | 2,613,000 | $ | 2,689,000 | |||
United Kingdom | 64,000 | 377,000 | |||||
Republic of Korea | — | 1,523,000 | |||||
$ | 2,677,000 | $ | 4,589,000 |
|
Three months ended March 28, 2015 (3) | Three months ended June 27, 2015 (4) | Three months ended September 26, 2015 | Three months ended December 26, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenue | $ | 8,585 | $ | 10,857 | $ | 8,001 | $ | 4,612 | |||||||
Gross profit (2) | $ | 1,845 | $ | 3,127 | $ | 1,762 | $ | (170 | ) | ||||||
Loss from operations | $ | (5,945 | ) | $ | (5,495 | ) | $ | (5,923 | ) | $ | (7,958 | ) | |||
Net (loss) gain attributable to the controlling interest | $ | (3,838 | ) | $ | 781 | $ | (4,675 | ) | $ | (6,961 | ) | ||||
Net (loss) gain per share from continuing operations (1): | |||||||||||||||
Basic | $ | (0.06 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.11 | ) | ||||
Diluted | $ | (0.06 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.11 | ) | ||||
Shares used in computing net loss per share from continuing operations: | |||||||||||||||
Basic | 63,084 | 63,066 | 63,068 | 63,608 | |||||||||||
Diluted | 63,084 | 65,030 | 63,068 | 63,608 |
(1) | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. |
(2) | Gross profit is defined as net product revenue less cost of product revenues. |
(3) | Includes $2.1 million impact on net gain attributable to the controlling interest relating to the gain on sale of an investment for the three month period ended March 28, 2015. |
(4) | Includes $5.5 million impact on net gain attributable to the controlling interest relating to the gain on sale of an investment for the three month period ended June 27, 2015. |
Three months ended March 29, 2014 | Three months ended June 28, 2014 | Three months ended September 27, 2014 | Three months ended December 28, 2013 (3) | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenue | $ | 4,695 | $ | 6,943 | $ | 9,532 | $ | 10,637 | |||||||
Gross profit (2) | $ | 2 | $ | 753 | $ | 3,861 | $ | 2,701 | |||||||
(Loss) income from continuing operations | $ | (9,614 | ) | $ | (7,269 | ) | $ | (5,520 | ) | $ | (6,073 | ) | |||
Net loss attributable to the controlling interest | $ | (9,134 | ) | $ | (8,806 | ) | $ | (4,469 | ) | $ | (5,302 | ) | |||
Net loss per share from continuing operations (1): | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.08 | ) | |||
Diluted | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.08 | ) | |||
Shares used in computing net loss per share from continuing operations: | |||||||||||||||
Basic | 62,530 | 62,644 | 62,647 | 62,734 | |||||||||||
Diluted | 62,530 | 62,644 | 62,647 | 62,734 |
(1) | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. |
(2) | Gross profit is defined as net component revenue less cost of component revenues. |
(3) | Includes $1.3 million impact in loss from operations and net loss attributable to the controlling interest attributable to the write off of an investment for the three month period ended June 28, 2014, as described in Note 4. |
|
Description | Balance at Beginning of Year | Additions Charged to Income | Deductions from Reserve | Balance at End of Year | |||||||||||
Reserve deducted from assets—allowance for doubtful accounts: | |||||||||||||||
2013 | $ | 311,000 | $ | 19,000 | $ | (128,000 | ) | $ | 202,000 | ||||||
2014 | 202,000 | 81,000 | (17,000 | ) | 266,000 | ||||||||||
2015 | 266,000 | — | (113,000 | ) | 153,000 |
|
2015 | 2014 | ||||||
Raw materials | $ | 844,475 | $ | 2,057,202 | |||
Work-in-process | 1,281,891 | 1,551,799 | |||||
Finished goods | 386,107 | 472,885 | |||||
$ | 2,512,473 | $ | 4,081,886 |
2015 | 2014 | ||||||
Beginning balance | $ | 311,187 | $ | 329,435 | |||
Additions | — | — | |||||
Charges | — | — | |||||
Exchange rate change | (12,724 | ) | (18,248 | ) | |||
Ending balance | $ | 298,463 | $ | 311,187 |
2015 | 2014 | 2013 | ||||||
Weighted-average common shares outstanding—basic | 63,465,797 | 62,638,675 | 62,347,852 | |||||
Stock options and nonvested restricted common stock | — | — | — | |||||
Weighted-average common shares outstanding—diluted | 63,465,797 | 62,638,675 | 62,347,852 |
2015 | 2014 | 2013 | ||||||
Nonvested restricted common stock | 2,192,016 | 2,551,631 | 3,024,148 | |||||
Stock options | — | 130,500 | 558,850 | |||||
Total | 2,192,016 | 2,682,131 | 3,582,998 |
Cumulative Translation Adjustment | Unrealized Holding Gain (Loss) on Marketable Securities | Acquisition of Minority Interest in KSL | Accumulated Other Comprehensive Income | ||||||||||||
Balance as of December 29, 2012 | $ | 3,542,104 | $ | 2,970,688 | $ | — | $ | 6,512,792 | |||||||
Changes during year | (1,017,403 | ) | (2,053,392 | ) | — | (3,070,795 | ) | ||||||||
Balance as of December 28, 2013 | 2,524,701 | 917,296 | — | 3,441,997 | |||||||||||
Changes during year | (990,626 | ) | 674,868 | — | (315,758 | ) | |||||||||
Balance as of December 27, 2014 | 1,534,075 | 1,592,164 | — | 3,126,239 | |||||||||||
Changes during year | (1,001,733 | ) | (1,386,415 | ) | 33,683 | (2,354,465 | ) | ||||||||
Balance as of December 26, 2015 | $ | 532,342 | $ | 205,749 | $ | 33,683 | $ | 771,774 |
|
2015 | 2014 | ||||||
Raw materials | $ | 844,475 | $ | 2,057,202 | |||
Work-in-process | 1,281,891 | 1,551,799 | |||||
Finished goods | 386,107 | 472,885 | |||||
$ | 2,512,473 | $ | 4,081,886 |
2015 | 2014 | ||||||
Beginning balance | $ | 311,187 | $ | 329,435 | |||
Additions | — | — | |||||
Charges | — | — | |||||
Exchange rate change | (12,724 | ) | (18,248 | ) | |||
Ending balance | $ | 298,463 | $ | 311,187 |
2015 | 2014 | 2013 | ||||||
Weighted-average common shares outstanding—basic | 63,465,797 | 62,638,675 | 62,347,852 | |||||
Stock options and nonvested restricted common stock | — | — | — | |||||
Weighted-average common shares outstanding—diluted | 63,465,797 | 62,638,675 | 62,347,852 |
2015 | 2014 | 2013 | ||||||
Nonvested restricted common stock | 2,192,016 | 2,551,631 | 3,024,148 | |||||
Stock options | — | 130,500 | 558,850 | |||||
Total | 2,192,016 | 2,682,131 | 3,582,998 |
Cumulative Translation Adjustment | Unrealized Holding Gain (Loss) on Marketable Securities | Acquisition of Minority Interest in KSL | Accumulated Other Comprehensive Income | ||||||||||||
Balance as of December 29, 2012 | $ | 3,542,104 | $ | 2,970,688 | $ | — | $ | 6,512,792 | |||||||
Changes during year | (1,017,403 | ) | (2,053,392 | ) | — | (3,070,795 | ) | ||||||||
Balance as of December 28, 2013 | 2,524,701 | 917,296 | — | 3,441,997 | |||||||||||
Changes during year | (990,626 | ) | 674,868 | — | (315,758 | ) | |||||||||
Balance as of December 27, 2014 | 1,534,075 | 1,592,164 | — | 3,126,239 | |||||||||||
Changes during year | (1,001,733 | ) | (1,386,415 | ) | 33,683 | (2,354,465 | ) | ||||||||
Balance as of December 26, 2015 | $ | 532,342 | $ | 205,749 | $ | 33,683 | $ | 771,774 |
|
December 28, 2013 | |||
Net product and research and development revenues | $ | 2.3 | |
(Loss) gain from discontinued operations before income taxes | (0.2 | ) | |
(Provision) benefit for income taxes on discontinued operations | — | ||
Discontinued operations, net of tax | (0.2 | ) | |
Gain on sale, net of $13.1 million of tax | 20.4 | ||
Income from discontinued operations, net of tax | $ | 20.2 |
|
Useful Life | 2015 | 2014 | |||||||
Land | $ | — | $ | 877,485 | |||||
Buildings | 10 years | — | 2,298,367 | ||||||
Equipment | 3-5 years | 18,765,548 | 19,696,919 | ||||||
Leasehold improvements | Life of the lease | 3,659,559 | 3,652,395 | ||||||
Furniture and fixtures | 3 years | 789,067 | 886,985 | ||||||
Equipment under construction | 312,916 | 657,142 | |||||||
23,527,090 | 28,069,293 | ||||||||
Accumulated depreciation and amortization | (20,849,987 | ) | (23,479,872 | ) | |||||
Net property, plant and equipment | $ | 2,677,103 | $ | 4,589,421 |
|
2015 | 2014 | 2013 | |||||||||
KoBrite | $ | — | $ | (102,305 | ) | $ | (406,811 | ) | |||
Ask Ziggy | $ | (47,443 | ) | $ | (284,137 | ) | $ | (218,287 | ) | ||
Total | $ | (47,443 | ) | $ | (386,442 | ) | $ | (625,098 | ) |
2013 | |||
Current assets | $ | 7,769,000 | |
Noncurrent assets | 10,663,000 | ||
Current liabilities | 1,207,000 | ||
Revenues | 5,085,000 | ||
Margin loss | (2,501,000 | ) | |
Loss from operations | (6,114,000 | ) | |
Net loss | (5,526,000 | ) |
|
Years | |
Customer relationships | 7 |
Developed technology | 7 |
Trademark portfolio | 7 |
Fiscal Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Beginning Balance | $ | 976,451 | $ | 1,016,132 | |||
Change due to exchange rate fluctuations | (30,369 | ) | (39,681 | ) | |||
Ending Balance | $ | 946,082 | $ | 976,451 |
|
Fair Value Measurement at December 26, 2015 Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Money Markets and Cash Equivalents | $ | 19,767,889 | $ | 19,767,889 | $ | — | $ | — | |||||||
U.S. Government Securities | 46,464,663 | 16,381,152 | 30,083,511 | — | |||||||||||
Corporate Debt | 6,886,495 | — | 6,886,495 | — | |||||||||||
Certificates of Deposit | 7,591,733 | — | 7,591,733 | — | |||||||||||
GCS Holdings | 232,037 | 232,037 | — | — | |||||||||||
$ | 80,942,817 | $ | 36,381,078 | $ | 44,561,739 | $ | — |
Fair Value Measurement at December 27, 2014 Using: | |||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Money Markets and Cash 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 | $ | — |
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
U.S. government and agency backed securities | $ | 46,586,224 | $ | 57,897,914 | $ | — | $ | — | $ | (121,561 | ) | $ | (200,772 | ) | $ | 46,464,663 | $ | 57,697,142 | |||||||||||||
Corporate debt and certificates of deposits | 14,534,247 | 18,564,823 | — | — | (56,019 | ) | (38,830 | ) | 14,478,228 | 18,525,993 | |||||||||||||||||||||
Total | $ | 61,120,471 | $ | 76,462,737 | $ | — | $ | — | $ | (177,580 | ) | $ | (239,602 | ) | $ | 60,942,891 | $ | 76,223,135 |
Less than One year | One to Five years | Greater than Five years | Total | ||||||||||||
U.S. government and agency backed securities | $ | 17,460,832 | $ | 23,906,600 | $ | 5,097,231 | $ | 46,464,663 | |||||||
Corporate debt and certificates of deposits | 12,086,055 | 2,392,173 | — | 14,478,228 | |||||||||||
Total | $ | 29,546,887 | $ | 26,298,773 | $ | 5,097,231 | $ | 60,942,891 |
|
2015 | ||||||
Shares | Weighted Average Exercise Price | |||||
Balance, beginning of year | 130,500 | $ | 3.49 | |||
Options forfeited/canceled | (125,358 | ) | 3.50 | |||
Options exercised | (5,142 | ) | 3.16 | |||
Balance, end of year | — | $ | — |
Shares | Weighted Average Grant Fair Value | |||||
Balance, December 27, 2014 | 2,551,631 | $ | 3.75 | |||
Granted | 1,255,696 | 3.77 | ||||
Forfeited | (388,320 | ) | 3.64 | |||
Vested | (1,226,991 | ) | 3.68 | |||
Balance, December 26, 2015 | 2,192,016 | $ | 3.82 |
2015 | 2014 | 2013 | |||||||||
Cost of component revenues | $ | 729,715 | $ | 766,221 | $ | 414,842 | |||||
Research and development | 776,946 | 965,945 | 423,548 | ||||||||
Selling, general and administrative | 1,638,818 | 3,095,606 | 3,365,018 | ||||||||
Total | $ | 3,145,479 | $ | 4,827,772 | $ | 4,203,408 |
|
Percent of Gross Accounts Receivable | |||
Customer | 2015 | 2014 | |
Company A | * | 32 | |
Company B | 21 | 14 | |
Company C | * | 9 | |
Company D | 15 | * | |
Company E | * | 1 | |
Company F | * | 5 | |
Company G | * | 8 |
Sales as a Percent of Total Revenue | |||||
Fiscal Year | |||||
Customer | 2015 | 2014 | 2013 | ||
Military Customers in Total | 32 | 45 | 38 | ||
Company A | 18 | 26 | 13 | ||
Company C | 22 | 11 | * | ||
Company E | * | * | 18 | ||
Funded Research and Development Contracts | 12 | 4 | 7 |
|
Fiscal Year | |||||||||||
2015 | 2014 | 2013 | |||||||||
Current | |||||||||||
Federal | $ | — | $ | — | $ | (13,124,000 | ) | ||||
State | 50,000 | 50,000 | 12,000 | ||||||||
Foreign | — | — | (34,000 | ) | |||||||
Total current provision (benefit) | 50,000 | 50,000 | (13,146,000 | ) | |||||||
Deferred | |||||||||||
Federal | (5,356,000 | ) | (9,554,000 | ) | (3,616,000 | ) | |||||
State | (62,000 | ) | (1,709,000 | ) | 644,000 | ||||||
Foreign | 188,000 | 411,000 | (565,000 | ) | |||||||
Change in valuation allowance | 5,155,000 | 10,622,000 | 3,750,000 | ||||||||
Total deferred (benefit) provision | (75,000 | ) | (230,000 | ) | 213,000 | ||||||
Total (benefit) provision for income taxes | $ | (25,000 | ) | $ | (180,000 | ) | $ | (12,933,000 | ) |
Fiscal Year | |||||||||||
2015 | 2014 | 2013 | |||||||||
Tax provision at federal statutory rates | $ | (5,187,000 | ) | $ | (9,964,000 | ) | $ | (13,322,000 | ) | ||
State tax liability | 33,000 | 33,000 | 8,000 | ||||||||
Foreign deferred | 153,000 | 371,000 | (644,000 | ) | |||||||
Foreign withholding | (75,000 | ) | (196,000 | ) | 308,000 | ||||||
Outside basis in KTC and Kowon, net | (180,000 | ) | (394,000 | ) | (202,000 | ) | |||||
Nondeductible expenses | (402,000 | ) | (21,000 | ) | 306,000 | ||||||
Increase in net state operating loss carryforwards | (158,000 | ) | (177,000 | ) | (2,868,000 | ) | |||||
Utilization of net operating losses for U.K. research and development refund | 719,000 | 1,089,000 | — | ||||||||
Provision to tax return adjustments and state tax rate change | 264,000 | (516,000 | ) | (33,000 | ) | ||||||
Tax credits | (501,000 | ) | (610,000 | ) | (390,000 | ) | |||||
Non-deductible 162M compensation limitations | 40,000 | 196,000 | 558,000 | ||||||||
Non-deductible equity compensation | (34,000 | ) | (687,000 | ) | (418,000 | ) | |||||
Other, net | 148,000 | 74,000 | 14,000 | ||||||||
Change in valuation allowance | 5,155,000 | 10,622,000 | 3,750,000 | ||||||||
$ | (25,000 | ) | $ | (180,000 | ) | $ | (12,933,000 | ) |
Fiscal Year | |||||||
2015 | 2014 | ||||||
Deferred tax liability: | |||||||
Foreign withholding liability | $ | (1,207,000 | ) | $ | (1,282,000 | ) | |
Foreign unremitted earnings | (2,701,000 | ) | (2,882,000 | ) | |||
Deferred tax assets: | |||||||
Federal net operating loss carryforwards | 28,984,000 | 22,758,000 | |||||
State net operating loss carryforwards | 1,913,000 | 1,689,000 | |||||
Foreign net operating loss carryforwards | 2,430,000 | 2,612,000 | |||||
Equity awards | 2,249,000 | 2,508,000 | |||||
Tax credits | 6,768,000 | 6,267,000 | |||||
Equipment | 1,113,000 | 1,024,000 | |||||
Investments | 3,240,000 | 5,279,000 | |||||
Other | 3,667,000 | 3,253,000 | |||||
Net deferred tax assets | 46,456,000 | 41,226,000 | |||||
Valuation allowance | (47,663,000 | ) | (42,508,000 | ) | |||
$ | (1,207,000 | ) | $ | (1,282,000 | ) |
|
Fiscal Year Ended | |||||||
December 26, 2015 | December 27, 2014 | ||||||
Beginning Balance | $ | 716,000 | $ | 716,000 | |||
Additions | 598,000 | 798,000 | |||||
Claim and reversals | (796,000 | ) | (798,000 | ) | |||
Ending Balance | $ | 518,000 | $ | 716,000 |
|
Fiscal Year ending, | Amount | ||
2016 | $ | 1,097,000 | |
2017 | 800,000 | ||
2018 | 666,000 | ||
2019 | 639,000 | ||
2020 | 637,000 | ||
Thereafter | 1,492,000 | ||
Total minimum lease payments | $ | 5,331,000 |
|
Kopin | FDD | Total | |||||||||
2015 | |||||||||||
Revenues | $ | 28,538 | $ | 3,516 | $ | 32,054 | |||||
Net loss attributable to the controlling interest | (13,429 | ) | (1,264 | ) | (14,693 | ) | |||||
Total assets from continuing operations | 104,677 | 1,524 | 106,201 | ||||||||
Long-lived assets from continuing operations | 2,639 | 38 | 2,677 | ||||||||
Property and plant held for sale | 819 | — | 819 | ||||||||
2014 | |||||||||||
Revenues | $ | 28,333 | $ | 3,474 | $ | 31,807 | |||||
Net loss attributable to the controlling interest | (26,402 | ) | (1,810 | ) | (28,212 | ) | |||||
Total assets from continuing operations | 121,301 | 1,640 | 122,941 | ||||||||
Long-lived assets from continuing operations | 4,343 | 246 | 4,589 | ||||||||
2013 | |||||||||||
Revenues | $ | 19,883 | $ | 3,014 | $ | 22,898 | |||||
Net loss attributable to the controlling interest | (2,003 | ) | (2,707 | ) | (4,710 | ) | |||||
Total assets from continuing operations | 143,953 | 2,179 | 146,132 | ||||||||
Long-lived assets from continuing operations | 5,488 | 547 | 6,035 |
Fiscal Year | ||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||
Revenue | % of Total | Revenue | % of Total | Revenue | % of Total | |||||||||||||||
US | $ | 21,758,000 | 68 | % | $ | 19,695,000 | 62 | % | $ | 11,927,000 | 53 | % | ||||||||
Other Americas | 395,000 | 1 | % | 416,000 | 1 | % | 230,000 | 1 | % | |||||||||||
Total Americas | 22,153,000 | 69 | % | 20,111,000 | 63 | % | 12,157,000 | 54 | % | |||||||||||
Asia-Pacific | 7,160,000 | 22 | % | 8,245,000 | 26 | % | 8,292,000 | 36 | % | |||||||||||
Europe | 2,741,000 | 9 | % | 3,451,000 | 11 | % | 2,449,000 | 10 | % | |||||||||||
Total Revenues | $ | 32,054,000 | 100 | % | $ | 31,807,000 | 100 | % | $ | 22,898,000 | 100 | % |
Fiscal Years | |||||||
2015 | 2014 | ||||||
United States of America | $ | 2,613,000 | $ | 2,689,000 | |||
United Kingdom | 64,000 | 377,000 | |||||
Republic of Korea | — | 1,523,000 | |||||
$ | 2,677,000 | $ | 4,589,000 |
|
Three months ended March 28, 2015 (3) | Three months ended June 27, 2015 (4) | Three months ended September 26, 2015 | Three months ended December 26, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenue | $ | 8,585 | $ | 10,857 | $ | 8,001 | $ | 4,612 | |||||||
Gross profit (2) | $ | 1,845 | $ | 3,127 | $ | 1,762 | $ | (170 | ) | ||||||
Loss from operations | $ | (5,945 | ) | $ | (5,495 | ) | $ | (5,923 | ) | $ | (7,958 | ) | |||
Net (loss) gain attributable to the controlling interest | $ | (3,838 | ) | $ | 781 | $ | (4,675 | ) | $ | (6,961 | ) | ||||
Net (loss) gain per share from continuing operations (1): | |||||||||||||||
Basic | $ | (0.06 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.11 | ) | ||||
Diluted | $ | (0.06 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.11 | ) | ||||
Shares used in computing net loss per share from continuing operations: | |||||||||||||||
Basic | 63,084 | 63,066 | 63,068 | 63,608 | |||||||||||
Diluted | 63,084 | 65,030 | 63,068 | 63,608 |
(1) | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. |
(2) | Gross profit is defined as net product revenue less cost of product revenues. |
(3) | Includes $2.1 million impact on net gain attributable to the controlling interest relating to the gain on sale of an investment for the three month period ended March 28, 2015. |
(4) | Includes $5.5 million impact on net gain attributable to the controlling interest relating to the gain on sale of an investment for the three month period ended June 27, 2015. |
Three months ended March 29, 2014 | Three months ended June 28, 2014 | Three months ended September 27, 2014 | Three months ended December 28, 2013 (3) | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Revenue | $ | 4,695 | $ | 6,943 | $ | 9,532 | $ | 10,637 | |||||||
Gross profit (2) | $ | 2 | $ | 753 | $ | 3,861 | $ | 2,701 | |||||||
(Loss) income from continuing operations | $ | (9,614 | ) | $ | (7,269 | ) | $ | (5,520 | ) | $ | (6,073 | ) | |||
Net loss attributable to the controlling interest | $ | (9,134 | ) | $ | (8,806 | ) | $ | (4,469 | ) | $ | (5,302 | ) | |||
Net loss per share from continuing operations (1): | |||||||||||||||
Basic | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.08 | ) | |||
Diluted | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.08 | ) | $ | (0.08 | ) | |||
Shares used in computing net loss per share from continuing operations: | |||||||||||||||
Basic | 62,530 | 62,644 | 62,647 | 62,734 | |||||||||||
Diluted | 62,530 | 62,644 | 62,647 | 62,734 |
(1) | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. |
(2) | Gross profit is defined as net component revenue less cost of component revenues. |
(3) | Includes $1.3 million impact in loss from operations and net loss attributable to the controlling interest attributable to the write off of an investment for the three month period ended June 28, 2014, as described in Note 4. |
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