KOPIN CORP, 10-Q filed on 8/6/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 27, 2015
Aug. 4, 2015
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 27, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Trading Symbol
KOPN 
 
Entity Registrant Name
KOPIN CORP 
 
Entity Central Index Key
0000771266 
 
Current Fiscal Year End Date
--12-26 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
66,546,101 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Jun. 27, 2015
Dec. 27, 2014
Current assets:
 
 
Cash and equivalents
$ 16,477,501 
$ 14,635,801 
Marketable debt securities, at fair value
71,843,061 
76,223,135 
Accounts receivable, net of allowance of $191,000 and $266,000 in 2015 and 2014, respectively
8,315,054 
3,758,832 
Costs in Excess of Billings, Current
142,460 
43,492 
Inventory
3,065,712 
4,081,886 
Prepaid taxes
155,010 
378,637 
Prepaid expenses and other current assets
698,319 
802,837 
Notes, Loans and Financing Receivable, Gross, Current
14,966,671 
0 
Total current assets
115,663,788 
99,924,620 
Property, plant and equipment, net
4,107,309 
4,589,421 
Goodwill
984,158 
976,451 
Intangible assets, net
308,380 
616,759 
Other assets
2,943,350 
1,900,828 
Accounts and Notes Receivable, Net
0 
14,933,335 
Total assets
124,006,985 
122,941,414 
Current liabilities:
 
 
Accounts payable
4,778,554 
5,503,734 
Accrued payroll and expenses
1,828,292 
1,985,691 
Accrued warranty
716,000 
716,000 
Billings in excess of revenue earned
3,522,416 
586,471 
Other accrued liabilities
3,111,810 
3,169,028 
Deferred Tax Liabilities, Net, Current
1,282,000 
1,282,000 
Total current liabilities
15,239,072 
13,242,924 
Asset retirement obligations
314,812 
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 78,473,358 shares in 2015 and 77,731,604 shares in 2014; outstanding 63,296,989 shares in 2015 and 63,077,715 shares in 2014
753,992 
751,832 
Additional paid-in capital
326,425,178 
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
3,528,254 
3,126,239 
Accumulated deficit
(178,972,274)
(175,915,255)
Total Kopin Corporation stockholders' equity
108,993,599 
109,846,959 
Noncontrolling interest
(540,498)
(459,656)
Total stockholders' equity
108,453,101 
109,387,303 
Total liabilities and stockholders' equity
$ 124,006,985 
$ 122,941,414 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jun. 27, 2015
Dec. 27, 2014
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance
$ 191,000 
$ 266,000 
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
78,473,358 
77,731,604 
Common stock, outstanding
63,296,989 
63,077,715 
Treasury stock, shares
12,102,258 
12,102,258 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 2014
Revenues:
 
 
 
 
Net component revenues
$ 9,486,723 
$ 4,906,663 
$ 16,615,093 
$ 9,134,422 
Research and development revenues
1,369,883 
2,036,624 
2,826,505 
2,503,634 
Total revenues
10,856,606 
6,943,287 
19,441,598 
11,638,056 
Expenses:
 
 
 
 
Cost of component revenues
6,359,780 
4,153,739 
11,643,513 
8,379,188 
Research and development
4,884,010 
5,137,033 
9,744,202 
10,223,317 
Selling, general and administration
5,108,229 
4,921,194 
9,494,442 
9,917,993 
Total expenses
16,352,019 
14,211,966 
30,882,157 
28,520,498 
(Loss) income from operations
(5,495,413)
(7,268,679)
(11,440,559)
(16,882,442)
Other income and expense:
 
 
 
 
Interest income
198,898 
193,305 
408,561 
431,477 
Other income net
25,758 
200,754 
45,269 
260,581 
Foreign Currency Transaction Gain (Loss), Realized
529,138 
(674,456)
349,549 
(492,706)
Gain (Loss) on Sale of Investments
5,460,399 
0 
7,602,820 
0 
Asset Impairment Charges
0 
(1,319,287)
0 
(1,319,287)
Total other income and expense
6,214,193 
(1,599,684)
8,406,199 
(1,119,935)
(Loss) income before provision for income taxes, equity losses in unconsolidated affiliates and net loss (income) attributable to noncontrolling interest
718,780 
(8,868,363)
(3,034,360)
(18,002,377)
Tax provision
(12,500)
(37,000)
(25,000)
106,000 
(Loss) income before equity loss in unconsolidated affiliates and net (loss) income of noncontrolling interest
706,280 
(8,905,363)
(3,059,360)
(17,896,377)
Equity losses in unconsolidated affiliates
0 
(122,553)
(47,443)
(224,858)
Net (loss) income
706,280 
(9,027,916)
(3,106,803)
(18,121,235)
Net loss (income) attributable to the noncontrolling interest
74,690 
221,973 
49,784 
180,876 
Net (loss) income attributable to the controlling interest
$ 780,970 
$ (8,805,943)
$ (3,057,019)
$ (17,940,359)
Net (loss) income per share
 
 
 
 
Earnings Per Share, Basic
$ 0.01 
$ (0.14)
$ (0.05)
$ (0.29)
Earnings Per Share, Diluted
$ 0.01 
$ (0.14)
$ (0.05)
$ (0.29)
Weighted average number of common shares
 
 
 
 
Basic
63,066,031 
62,643,506 
63,074,842 
62,586,854 
Diluted
63,300,781 
62,643,506 
63,074,842 
62,586,854 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net (loss) income
$ 706,280 
$ (9,027,916)
$ (3,106,803)
$ (18,121,235)
Foreign currency translation adjustments
(569,644)
947,386 
(555,222)
87,787 
Holding (loss) gain on marketable securities
500,602 
(33,852)
1,325,524 
149,589 
Reclassifications of gains in net (loss) income
(21,785)
10,131 
(399,345)
(3,952)
Other Comprehensive Income (Loss), Net of Tax
(90,827)
923,665 
370,957 
233,424 
Comprehensive (loss) income
615,453 
(8,104,251)
(2,735,846)
(17,887,811)
Comprehensive loss (income) attributable to the noncontrolling interest
(76,524)
143,489 
(18,726)
152,474 
Comprehensive (loss) income attributable to controlling interest
$ 538,929 
$ (7,960,762)
$ (2,754,572)
$ (17,735,337)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
Total
Common Stock
Additional Paid-in Capital
Parent [Member]
Treasury Stock
Accumulated Other Comprehensive Income
Accumulated Deficit
Stockholders' Equity, Total [Member]
Noncontrolling Interest
Beginning Balance at Dec. 27, 2014
$ 109,387,303 
$ 751,832 
$ 324,625,694 
 
$ (42,741,551)
$ 3,126,239 
$ (175,915,255)
$ 109,846,959 
$ (459,656)
Beginning Balance (in shares) at Dec. 27, 2014
 
75,183,207 
 
 
 
 
 
 
 
Stock-based compensation
1,898,855 
 
1,898,855 
 
 
 
 
1,898,855 
 
Adjustments to Additional Paid in Capital, Other
 
2,275 
(2,275)
 
 
 
 
 
 
Adjustments To Additional Paid In Capital Other Shares
 
227,500 
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax
370,957 
 
 
 
 
402,015 
 
402,015 
(31,058)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
5,142 
39,798 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
86,048 
398 
85,650 
 
 
0 
 
86,048 
0 
Shares Paid for Tax Withholding for Share Based Compensation
 
(51,258)
 
 
 
 
 
 
 
Payments Related to Tax Withholding for Share-based Compensation
(183,259)
(513)
(182,746)
(183,259)
 
 
 
 
 
Net loss
(3,106,803)
 
 
 
 
 
(3,057,019)
(3,057,019)
(49,784)
Ending Balance at Jun. 27, 2015
$ 108,453,101 
$ 753,992 
$ 326,425,178 
 
$ (42,741,551)
$ 3,528,254 
$ (178,972,274)
$ 108,993,599 
$ (540,498)
Ending Balance (in shares) at Jun. 27, 2015
 
75,399,247 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Cash flows from operating activities:
 
 
Net (loss) income
$ (3,106,803)
$ (18,121,235)
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
Depreciation and amortization
1,190,413 
1,779,594 
Accretion (amortization) of premium or discount on marketable debt securities
302,466 
36,841 
Stock-based compensation
2,022,043 
2,362,446 
Gain (Loss) on Sale of Investments
(7,602,820)
0 
Losses in unconsolidated affiliates
0 
102,305 
Asset Impairment Charges
0 
1,319,287 
Deferred income taxes
0 
(95,262)
Foreign Currency Transaction Gain (Loss), before Tax
(280,173)
507,792 
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property
0 
(250,000)
Change in allowance for bad debt
74,500 
14,679 
Other non-cash items
1,130,162 
314,335 
Changes in assets and liabilities:
 
 
Accounts receivable
(4,388,730)
(1,018,638)
Inventory
(110,325)
(518,105)
Prepaid expenses and other current assets
177,843 
(81,989)
Accounts payable and accrued expenses
(1,351,835)
865,328 
Billings in excess of revenue earned
3,085,945 
(258,189)
Net cash used in operating activities
(8,857,314)
(13,040,811)
Cash flows from investing activities:
 
 
Other assets
(8,486)
(36,455)
Capital expenditures
(651,814)
(978,037)
Proceeds from sale of marketable debt securities
12,000,622 
23,861,627 
Purchase of marketable debt securities
(7,777,277)
(13,106,060)
Proceeds from Sale and Maturity of Other Investments
7,330,203 
0 
Proceeds from Sale of Machinery and Equipment
0 
250,000 
Net cash provided by investing activities
10,893,248 
9,741,075 
Net cash used in financing activities
 
 
Treasury stock purchases
0 
(298,619)
Proceeds from exercise of stock options and warrants
86,048 
128,441 
Payments Related to Tax Withholding for Share-based Compensation
(183,259)
0 
Net cash used in financing activities
(97,211)
(170,178)
Effect of exchange rate changes on cash
(97,023)
18,575 
Net increase (decrease) in cash and equivalents
1,841,700 
(3,451,339)
Cash and equivalents:
 
 
Beginning of period
14,635,801 
16,756,666 
End of period
16,477,501 
13,305,327 
Supplemental disclosure of cash flow information:
 
 
Income taxes paid
50,000 
70,300 
Supplemental schedule of noncash investing activities:
 
 
Construction in progress included in accrued expenses
$ 228,000 
$ 156,000 
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 and six months ended June 27, 2015 and June 28, 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 June 27, 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 six months ended June 27, 2015, the change in the Company's accumulated other comprehensive income was the net of $0.6 million foreign currency translation adjustment, $1.3 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 six months ended June 27, 2015 and the year ended December 27, 2014.
Investments in available-for-sale marketable debt securities are as follows at June 27, 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
$
55,505,053


$
57,897,914


$
—


$
—


$
(39,473
)

$
(200,772
)

$
55,465,580


$
57,697,142

Corporate debt and certificates of deposit
16,413,099


18,564,823


—


—


(35,618
)

(38,830
)

16,377,481


18,525,993

Total
$
71,918,152

 
$
76,462,737

 
$
—

 
$
—

 
$
(75,091
)
 
$
(239,602
)
 
$
71,843,061

 
$
76,223,135


The contractual maturity of the Company’s marketable debt securities is as follows at June 27, 2015:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
24,030,172

 
$
23,865,571

 
$
7,569,837

 
$
55,465,580

Corporate debt and certificates of deposit
14,413,761

 
1,963,720

 
—

 
16,377,481

Total
$
38,443,933

 
$
25,829,291

 
$
7,569,837

 
$
71,843,061


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 and six months ended June 27, 2015 and June 28, 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 June 27, 2015 Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
16,477,501

 
$
16,477,501

 
$
—

 
$
—

U.S. Government Securities
55,465,580

 
17,501,563

 
37,964,017

 
—

Corporate Debt
6,421,028

 
—

 
6,421,028

 
—

Certificates of Deposit
9,956,453

 
—

 
9,956,453

 
—

Vuzix Corporation
2,426,404

 
2,426,404

 
—

 
—

GCS Holdings
289,006

 
289,006

 
—

 
—

 
$
91,035,972

 
$
36,694,474

 
$
54,341,498

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 27, 2014 Using:
 
Total
 
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 June 27, 2015 and December 27, 2014:
 
June 27,
2015
 
December 27,
2014
Raw materials
$
1,200,369

 
$
2,057,202

Work-in-process
1,445,584

 
1,551,799

Finished goods
419,759

 
472,885

 
$
3,065,712

 
$
4,081,886

NET (LOSS) INCOME PER SHARE
Net (loss) Income per share
NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period less any non-vested restricted shares. Diluted earnings per common share, if applicable, is calculated using weighted average shares outstanding and contingently issuable shares, less weighted average shares reacquired during the period. The net outstanding shares are adjusted for the dilutive effect of shares issuable upon the assumed conversion of the Company’s common stock equivalents, which consist of outstanding stock options and non-vested restricted stock units.
Weighted average common shares outstanding used to calculate earnings per share are as follows:
 
Three Months Ended
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
Weighted average common shares outstanding-basic
63,066,031

 
62,643,506

 
63,074,842

 
62,586,854

Stock options and non-vested restricted common stock
234,750

 
—

 
—

 
—

Weighted average common shares outstanding-diluted
63,300,781

 
62,643,506

 
63,074,842

 
62,586,854


The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period:
 
Three Months Ended
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
Non-vested restricted common stock
1,374,000

 
3,383,148

 
3,074,111

 
3,383,148

Stock options
—

 
399,600

 
—

 
399,600

Total
1,374,000

 
3,782,748

 
3,074,111

 
3,782,748


For the three and six month periods ended June 28, 2014, the warrants to purchase 200,000 shares of the Company's common stock for $3.49 per share were not included in weighted average common shares outstanding-diluted. These warrants were exercised during the six month period ended June 27, 2015.
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 restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for one, two or four years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards which solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards which require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. 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 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 each of the foregoing 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 June 27, 2015 and changes during the six month period then ended is as follows:
 
Six Months Ended June 27, 2015
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 27, 2014
130,500

 
$
3.49

Options forfeited/canceled
(125,358
)
 
3.50

Options exercised
(5,142
)
 
3.16

Balance, all exercisable, June 27, 2015
—

 
$
—


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

 
$
3.75

Granted
1,005,000

 
3.89

Forfeited
(255,020
)
 
3.68

Vested
(227,500
)
 
4.00

Balance, June 27, 2015
3,074,111

 
$
3.78


During the three month period ended June 27, 2015, the performance conditions for 50,000 awards granted in 2014 were determined and achieved. Stock-based compensation expense of approximately $222,000 has been recorded relating to this award during the three month period ended June 27, 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 grant fair value was $3.75. The Company has revised the amount within the period ended June 27, 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 six months ended June 27, 2015 and June 28, 2014 (no tax benefits were recognized):
 
Six Months Ended
 
June 27,
2015
 
June 28,
2014
Cost of component revenues
$
461,094

 
$
472,213

Research and development
503,523

 
637,528

Selling, general and administrative
1,057,426

 
1,252,705

Total
$
2,022,043

 
$
2,362,446


Unrecognized compensation expense for non-vested restricted common stock as of June 27, 2015 totaled $5.4 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 June 27, 2015, the Company had an investment in GCS Holdings with a fair market value of $0.3 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 $28.5 million, respectively. As of June 27, 2015, the Company’s investment in Vuzix had a fair market value of $2.4 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 six months ended June 27, 2015 are as follows:
Balance, December 27, 2014
$
716,000

Additions
362,000

Claim and reversals
(362,000
)
Balance, June 27, 2015
$
716,000

INCOME TAXES
INCOME TAXES
INCOME TAXES
The Company’s tax provision of approximately $12,500 and $25,000 for the three and six month period ended June 27, 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 provision of $37,000 and tax benefit of approximately $106,000 for the three and six month period ended June 28, 2014 represents a reduction in estimated foreign withholding taxes due on an international subsidiary.
As of June 27, 2015, the Company has available for tax purposes U.S. federal NOLs of approximately $70 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
 
June 27, 2015
 
June 28, 2014
 
Kopin
 
FDD
 
Total
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
10,177

 
$
679

 
$
10,856

 
$
6,007

 
$
936

 
$
6,943

Net income (loss) attributable to the controlling interest
853

 
(72
)
 
781

 
(8,479
)
 
(327
)
 
(8,806
)
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
Kopin
 
FDD
 
Total
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
17,764

 
$
1,678

 
$
19,442

 
$
9,909

 
$
1,729

 
$
11,638

Net loss attributable to the controlling interest
(2,519
)
 
(538
)
 
(3,057
)
 
(17,103
)
 
(838
)
 
(17,940
)
Total assets
122,604

 
1,403

 
124,007

 
129,160

 
1,932

 
131,091

Long-lived assets
3,972

 
135

 
4,107

 
4,930

 
381

 
5,312


The total assets of Kopin is net of $5.3 million and $5.0 million in intercompany loans to FDD as of June 27, 2015 and December 27, 2014, respectively.
During the three and six month periods ended June 27, 2015 and June 28, 2014, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
United States
77
%
 
52
%
 
75
%
 
47
%
Others
—
%
 
1
%
 
1
%
 
—
%
        Americas
77
%
 
53
%
 
76
%
 
47
%
Asia-Pacific
18
%
 
34
%
 
17
%
 
39
%
Europe
5
%
 
13
%
 
7
%
 
14
%
       Total Revenues
100
%
 
100
%
 
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 June 27, 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
$
55,505,053


$
57,897,914


$
—


$
—


$
(39,473
)

$
(200,772
)

$
55,465,580


$
57,697,142

Corporate debt and certificates of deposit
16,413,099


18,564,823


—


—


(35,618
)

(38,830
)

16,377,481


18,525,993

Total
$
71,918,152

 
$
76,462,737

 
$
—

 
$
—

 
$
(75,091
)
 
$
(239,602
)
 
$
71,843,061

 
$
76,223,135

Marketable Debt Securities 
The contractual maturity of the Company’s marketable debt securities is as follows at June 27, 2015:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
24,030,172

 
$
23,865,571

 
$
7,569,837

 
$
55,465,580

Corporate debt and certificates of deposit
14,413,761

 
1,963,720

 
—

 
16,377,481

Total
$
38,443,933

 
$
25,829,291

 
$
7,569,837

 
$
71,843,061

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 June 27, 2015 Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and Equivalents
$
16,477,501

 
$
16,477,501

 
$
—

 
$
—

U.S. Government Securities
55,465,580

 
17,501,563

 
37,964,017

 
—

Corporate Debt
6,421,028

 
—

 
6,421,028

 
—

Certificates of Deposit
9,956,453

 
—

 
9,956,453

 
—

Vuzix Corporation
2,426,404

 
2,426,404

 
—

 
—

GCS Holdings
289,006

 
289,006

 
—

 
—

 
$
91,035,972

 
$
36,694,474

 
$
54,341,498

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 27, 2014 Using:
 
Total
 
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 June 27, 2015 and December 27, 2014:
 
June 27,
2015
 
December 27,
2014
Raw materials
$
1,200,369

 
$
2,057,202

Work-in-process
1,445,584

 
1,551,799

Finished goods
419,759

 
472,885

 
$
3,065,712

 
$
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
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
Weighted average common shares outstanding-basic
63,066,031

 
62,643,506

 
63,074,842

 
62,586,854

Stock options and non-vested restricted common stock
234,750

 
—

 
—

 
—

Weighted average common shares outstanding-diluted
63,300,781

 
62,643,506

 
63,074,842

 
62,586,854

Weighted Average Common Shares Outstanding-Diluted 
The following were not included in weighted average common shares outstanding-diluted because they are anti-dilutive or performance or market conditions had not been met at the end of the period:
 
Three Months Ended
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
Non-vested restricted common stock
1,374,000

 
3,383,148

 
3,074,111

 
3,383,148

Stock options
—

 
399,600

 
—

 
399,600

Total
1,374,000

 
3,782,748

 
3,074,111

 
3,782,748

STOCK-BASED COMPENSATION (Tables)
Stock- Based Compensation 
A summary of stock option award activity under the equity plans as of June 27, 2015 and changes during the six month period then ended is as follows:
 
Six Months Ended June 27, 2015
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 27, 2014
130,500

 
$
3.49

Options forfeited/canceled
(125,358
)
 
3.50

Options exercised
(5,142
)
 
3.16

Balance, all exercisable, June 27, 2015
—

 
$
—

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

 
$
3.75

Granted
1,005,000

 
3.89

Forfeited
(255,020
)
 
3.68

Vested
(227,500
)
 
4.00

Balance, June 27, 2015
3,074,111

 
$
3.78

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 six months ended June 27, 2015 and June 28, 2014 (no tax benefits were recognized):
 
Six Months Ended
 
June 27,
2015
 
June 28,
2014
Cost of component revenues
$
461,094

 
$
472,213

Research and development
503,523

 
637,528

Selling, general and administrative
1,057,426

 
1,252,705

Total
$
2,022,043

 
$
2,362,446

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

Additions
362,000

Claim and reversals
(362,000
)
Balance, June 27, 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
 
June 27, 2015
 
June 28, 2014
 
Kopin
 
FDD
 
Total
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
10,177

 
$
679

 
$
10,856

 
$
6,007

 
$
936

 
$
6,943

Net income (loss) attributable to the controlling interest
853

 
(72
)
 
781

 
(8,479
)
 
(327
)
 
(8,806
)
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
Kopin
 
FDD
 
Total
 
Kopin
 
FDD
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
$
17,764

 
$
1,678

 
$
19,442

 
$
9,909

 
$
1,729

 
$
11,638

Net loss attributable to the controlling interest
(2,519
)
 
(538
)
 
(3,057
)
 
(17,103
)
 
(838
)
 
(17,940
)
Total assets
122,604

 
1,403

 
124,007

 
129,160

 
1,932

 
131,091

Long-lived assets
3,972

 
135

 
4,107

 
4,930

 
381

 
5,312

Percentage of Net Revenues by Geographies 
During the three and six month periods ended June 27, 2015 and June 28, 2014, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
Six Months Ended
 
June 27, 2015
 
June 28, 2014
 
June 27, 2015
 
June 28, 2014
United States
77
%
 
52
%
 
75
%
 
47
%
Others
—
%
 
1
%
 
1
%
 
—
%
        Americas
77
%
 
53
%
 
76
%
 
47
%
Asia-Pacific
18
%
 
34
%
 
17
%
 
39
%
Europe
5
%
 
13
%
 
7
%
 
14
%
       Total Revenues
100
%
 
100
%
 
100
%
 
100
%
BASIS OF PRESENTATION (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 27, 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
 
$ 370,957 
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% 
93.00% 
Intoware
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
Noncontrolling Interest, Ownership Percentage by Parent
58.00% 
58.00% 
eMDT
 
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
 
Noncontrolling Interest, Ownership Percentage by Parent
80.00% 
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
600,000 
600,000 
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
$ 1,300,000 
 
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) (USD $)
Jun. 27, 2015
Dec. 27, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
$ 71,918,152 
$ 76,462,737 
Unrealized Gains
0 
0 
Unrealized Losses
(75,091)
(239,602)
Fair Value
71,843,061 
76,223,135 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
38,443,933 
 
One to five years
25,829,291 
 
Greater than five years
7,569,837 
 
Available-for-sale Securities
71,843,061 
 
U.S. government and agency backed securities
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
55,505,053 
57,897,914 
Unrealized Gains
0 
0 
Unrealized Losses
(39,473)
(200,772)
Fair Value
55,465,580 
57,697,142 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
24,030,172 
 
One to five years
23,865,571 
 
Greater than five years
7,569,837 
 
Available-for-sale Securities
55,465,580 
 
Corporate debt and certificates of deposit
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Available-for-sale Debt Securities, Amortized Cost Basis
16,413,099 
18,564,823 
Unrealized Gains
0 
0 
Unrealized Losses
(35,618)
(38,830)
Fair Value
16,377,481 
18,525,993 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
Less than one year
14,413,761 
 
One to five years
1,963,720 
 
Greater than five years
0 
 
Available-for-sale Securities
$ 16,377,481 
 
FAIR VALUE MEASUREMENTS (Details) (USD $)
Jun. 27, 2015
Dec. 27, 2014
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
$ 91,035,972 
$ 92,540,061 
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
16,477,501 
14,635,802 
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
55,465,580 
57,697,142 
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
6,421,028 
5,970,983 
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
9,956,453 
12,555,010 
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
2,426,404 
1,500,777 
GCS [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
289,006 
180,347 
Level 1
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
36,694,474 
37,535,266 
Level 1 |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
16,477,501 
14,635,802 
Level 1 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
17,501,563 
21,218,340 
Level 1 |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
2,426,404 
1,500,777 
Level 1 |
GCS [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
289,006 
180,347 
Level 2
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
54,341,498 
55,004,795 
Level 2 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
37,964,017 
36,478,802 
Level 2 |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
6,421,028 
5,970,983 
Level 2 |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
9,956,453 
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 
INVENTORY (Details) (USD $)
Jun. 27, 2015
Dec. 27, 2014
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 1,200,369 
$ 2,057,202 
Work-in-process
1,445,584 
1,551,799 
Finished goods
419,759 
472,885 
Inventory
$ 3,065,712 
$ 4,081,886 
NET (LOSS) INCOME PER SHARE (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Issuance Of Warrants Shares
 
 
200,000 
 
Weighted average common shares outstanding - basic
63,066,031 
62,643,506 
63,074,842 
62,586,854 
Stock options and non-vested restricted common stock
234,750 
0 
0 
0 
Weighted average common shares outstanding - diluted
63,300,781 
62,643,506 
63,074,842 
62,586,854 
Antidilutive securities excluded from computation of earnings per share
1,374,000 
3,782,748 
3,074,111 
3,782,748 
Exercise Price Of Warrants
$ 3.49 
 
$ 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
 
 
3,074,111 
3,383,148 
Stock options
 
 
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
Antidilutive securities excluded from computation of earnings per share
 
 
0 
399,600 
STOCK-BASED COMPENSATION (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 27, 2015
Jun. 27, 2015
Jun. 28, 2014
Dec. 27, 2014
Class of Warrant or Right [Line Items]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period
 
50,000 
 
 
Stock-based compensation
$ 222,000 
$ 2,022,043 
$ 2,362,446 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period
 
150,000 
 
 
Error Corrections and Prior Period Adjustments, Description
 
 
 
4.41 
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
$ 5,400,000 
$ 5,400,000 
 
 
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 $)
6 Months Ended
Jun. 27, 2015
Shares
 
Beginning Balance
130,500 
Options forfeited/cancelled
(125,358)
Options exercised
(5,142)
Ending Balance
0 
Weighted Average Exercise Price
 
Beginning Balance
$ 3.49 
Options forfeited/cancelled
$ 3.50 
Options exercised
$ 3.16 
Ending Balance
$ 0.00 
STOCK-BASED COMPENSATION - Summary of Activity for Nonvested Restricted Common Stock Awards (Details) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
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
$ 5.4 
 
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
1,005,000 
 
Forfeited
(255,020)
 
Vested
(227,500)
 
Ending Balance
3,074,111 
 
Weighted Average Grant Fair Value
 
 
Beginning Balance
$ 3.75 
 
Granted
 
$ 3.89 
Forfeited
 
$ 3.68 
Vested
 
$ 4.00 
Ending Balance
 
$ 3.78 
STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 27, 2015
Jun. 28, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation
$ 222,000 
$ 2,022,043 
$ 2,362,446 
Cost of product revenues
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation
 
461,094 
472,213 
Research and development
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation
 
503,523 
637,528 
Selling, general and administrative
 
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
Stock-based compensation
 
$ 1,057,426 
$ 1,252,705 
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES (Details) (USD $)
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 27, 2015
Mar. 28, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 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
71,843,061 
 
 
71,843,061 
 
 
 
 
 
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
706,280 
 
(9,027,916)
(3,106,803)
(18,121,235)
28,500,000 
35,900,000 
 
 
Ko Brite (Member)
 
 
 
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
Carrying value of the investment
 
 
1,300,000 
 
1,300,000 
 
 
 
 
Company's ownership percentage
12.00% 
 
 
12.00% 
 
 
 
 
 
Vuzix [Member]
 
 
 
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
Available-for-sale Securities
2,400,000 
 
 
2,400,000 
 
1,500,000 
 
 
 
Available-for-sale Equity Securities, Amortized Cost Basis
300,000 
 
 
300,000 
 
0 
 
 
 
GCS Holdings [Member]
 
 
 
 
 
 
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
 
 
Available-for-sale Securities
300,000 
 
 
300,000 
 
200,000 
 
 
 
Available-for-sale Equity Securities, Amortized Cost Basis
$ 0 
 
 
$ 0 
 
$ 0 
 
 
 
ACCRUED WARRANTY (Details) (USD $)
6 Months Ended
Jun. 27, 2015
Product Warranties Disclosures [Abstract]
 
Product warranty term
12 months 
Movement in Standard Product Warranty Accrual [Roll Forward]
 
Beginning Balance
$ 716,000 
Additions
362,000 
Claim and reversals
(362,000)
Ending Balance
$ 716,000 
INCOME TAXES (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 2014
Income Taxes [Line Items]
 
 
 
 
State income and foreign tax expenses
$ (12,500)
$ (37,000)
$ (25,000)
$ 106,000 
Net operating loss carryforwards available for tax purposes
70,000,000 
 
70,000,000 
 
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 6 Months Ended
Jun. 27, 2015
Jun. 28, 2014
Jun. 27, 2015
Jun. 28, 2014
Dec. 27, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Revenues
$ 10,856,606 
$ 6,943,287 
$ 19,441,598 
$ 11,638,056 
 
Net Income (Loss) Attributable to Parent
780,970 
(8,805,943)
(3,057,019)
(17,940,359)
 
Assets
124,006,985 
 
124,006,985 
 
122,941,414 
Debt of Subsidiary, Not Assumed
5,300,000 
 
5,300,000 
 
5,000,000 
Percentage of total revenue
100.00% 
100.00% 
100.00% 
100.00% 
 
UNITED STATES
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Percentage of total revenue
77.00% 
52.00% 
75.00% 
47.00% 
 
All Others
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Percentage of total revenue
0.00% 
1.00% 
1.00% 
0.00% 
 
Americas
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Percentage of total revenue
77.00% 
53.00% 
76.00% 
47.00% 
 
Asia-Pacific
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Percentage of total revenue
18.00% 
34.00% 
17.00% 
39.00% 
 
Europe
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Percentage of total revenue
5.00% 
13.00% 
7.00% 
14.00% 
 
Segment, Continuing Operations [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Revenues
10,856 
6,943 
19,000 
11,638 
 
Net Income (Loss) Attributable to Parent
781 
(8,806)
(3,000)
(17,940)
 
Assets
124,007 
131,091 
124,007 
131,091 
 
Long-Lived Assets
4,107 
5,312 
4,107 
5,312 
 
Segment, Continuing Operations [Member] |
Kopin United States [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Revenues
10,177 
6,007 
18,000 
9,909 
 
Net Income (Loss) Attributable to Parent
853 
(8,479)
(3,000)
(17,103)
 
Assets
122,604 
129,160 
122,604 
129,160 
 
Long-Lived Assets
3,972 
4,930 
3,972 
4,930 
 
Segment, Continuing Operations [Member] |
Forth Dimension Displays Limited [Member]
 
 
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
 
 
Revenues
679 
936 
2,000 
1,729 
 
Net Income (Loss) Attributable to Parent
(72)
(327)
(1,000)
(838)
 
Assets
1,403 
1,932 
1,403 
1,932 
 
Long-Lived Assets
$ 135 
$ 381 
$ 135 
$ 381