KOPIN CORP, 10-Q filed on 5/8/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 29, 2014
May 2, 2014
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 29, 2014 
 
Document Fiscal Year Focus
2014 
 
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
 
65,966,655 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
Mar. 29, 2014
Dec. 28, 2013
Current assets:
 
 
Cash and equivalents
$ 14,811,610 
$ 16,756,666 
Marketable debt securities, at fair value
91,334,212 
95,972,535 
Accounts receivable, net of allowance of $187,000 and $202,000 in 2014 and 2013, respectively
2,367,728 
2,388,461 
Inventory
2,361,018 
3,078,055 
Prepaid taxes
273,587 
233,642 
Prepaid expenses and other current assets
563,570 
1,178,643 
Total current assets
111,711,725 
119,608,002 
Property, plant and equipment, net
5,350,375 
6,034,963 
Goodwill
1,022,399 
1,016,132 
Intangible assets, net
1,342,337 
1,581,502 
Other assets
2,783,726 
3,024,458 
Accounts and Notes Receivable, Net
14,883,334 
14,866,666 
Total assets
137,093,896 
146,131,723 
Current liabilities:
 
 
Accounts payable
4,147,886 
3,868,865 
Accrued payroll and expenses
1,384,419 
1,436,391 
Accrued warranty
716,000 
716,000 
Billings in excess of revenue earned
665,172 
547,681 
Other accrued liabilities
2,545,953 
3,157,394 
Deferred Tax Liabilities, Net, Current
1,390,761 
1,512,771 
Total current liabilities
10,850,191 
11,239,102 
Asset retirement obligations
332,502 
329,435 
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 77,976,881 shares in 2014 and 77,567,631 shares in 2013; outstanding 62,525,475 shares in 2014 and 62,560,946 shares in 2013
746,278 
745,935 
Additional paid-in capital
321,941,313 
320,511,458 
Treasury stock (12,102,258 and 12,032,537 shares in 2014 and 2013, respectively, at cost)
(42,741,551)
(42,442,932)
Accumulated other comprehensive income
2,801,837 
3,441,997 
Accumulated deficit
(156,837,627)
(147,703,211)
Total Kopin Corporation stockholders' equity
125,910,250 
134,553,247 
Noncontrolling interest
953 
9,939 
Total stockholders' equity
125,911,203 
134,563,186 
Total liabilities and stockholders' equity
$ 137,093,896 
$ 146,131,723 
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Mar. 29, 2014
Dec. 28, 2013
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance
$ 187,000 
$ 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
77,976,881 
77,567,631 
Common stock, outstanding
62,525,475 
62,560,946 
Treasury stock, shares
12,102,258 
12,032,537 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Revenues:
 
 
Net product revenues
$ 4,227,760 
$ 5,568,023 
Research and development revenues
467,010 
751,061 
Total revenues
4,694,770 
6,319,084 
Expenses:
 
 
Cost of product revenues
4,225,449 
5,964,409 
Research and development
5,086,284 
4,247,556 
Selling, general and administration
4,996,802 
5,749,113 
Total expenses
14,308,535 
15,961,078 
(Loss) income from operations
(9,613,765)
(9,641,994)
Other income and expense:
 
 
Interest income
238,172 
310,437 
Other income net
59,828 
(177,168)
Foreign currency transaction (losses) gains
181,751 
220,708 
Remeasurement Gain (Loss) On Previously Held Equity Interest In Acquiree
0 
(2,485,393)
Total other income and expense
479,751 
(2,131,416)
(Loss) income before provision for income taxes, equity losses in unconsolidated affiliates and net loss (income) attributable to noncontrolling interest
(9,134,014)
(11,773,410)
Tax provision
143,000 
13,040,000 
(Loss) income before equity loss in unconsolidated affiliates and net (loss) income of noncontrolling interest
(8,991,014)
1,266,590 
Equity losses in unconsolidated affiliates
(102,305)
(99,088)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest
(9,093,319)
1,167,502 
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest
0 
20,196,888 
Net (loss) income
(9,093,319)
21,364,390 
Net loss (income) attributable to the noncontrolling interest
(41,097)
269,419 
Net (loss) income attributable to the controlling interest
$ (9,134,416)
$ 21,633,809 
Net (loss) income per share
 
 
Income (Loss) from Continuing Operations, Per Basic Share
$ (0.15)
$ 0.02 
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share
$ 0.00 
$ 0.32 
Basic
$ (0.15)
$ 0.34 
Income (Loss) from Continuing Operations, Per Diluted Share
$ (0.15)
$ 0.02 
Income (Loss) from Discontinued Operations, Net of Tax, Per Diluted Share
$ 0.00 
$ 0.32 
Diluted
$ (0.15)
$ 0.34 
Weighted average number of common shares
 
 
Basic
62,530,202 
63,935,508 
Diluted
62,530,202 
63,935,508 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Statement of Other Comprehensive Income [Abstract]
 
 
Net (loss) income
$ (9,093,319)
$ 21,364,390 
Foreign currency translation adjustments
(859,599)
(611,719)
Holding (loss) gain on marketable securities
183,441 
201,192 
Reclassifications of gains in net (loss) income
(14,085)
(3,282)
Other Comprehensive Income (Loss), Net of Tax
(690,243)
(413,809)
Comprehensive (loss) income
(9,783,562)
20,950,581 
Comprehensive loss (income) attributable to the noncontrolling interest
8,986 
317,179 
Comprehensive (loss) income attributable to controlling interest
$ (9,774,576)
$ 21,267,760 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
Total
Common Stock
Additional Paid-in Capital
Treasury Stock
Accumulated Other Comprehensive Income
Accumulated Deficit
Total Kopin Corporation Stockholders' Equity
Noncontrolling Interest
Beginning Balance at Dec. 28, 2013
$ 134,563,186 
$ 745,935 
$ 320,511,458 
$ (42,442,932)
$ 3,441,997 
$ (147,703,211)
$ 134,553,247 
$ 9,939 
Beginning Balance (in shares) at Dec. 28, 2013
 
74,593,483 
 
 
 
 
 
 
Stock-based compensation
1,301,757 
 
1,301,757 
 
 
 
1,301,757 
 
Net unrealized holding gain on marketable securities
(690,243)
 
 
 
(640,160)
 
(640,160)
(50,083)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period
34,250 
 
 
 
 
 
 
 
Stock Issued During Period, Value, Stock Options Exercised
343 
 
 
 
 
 
 
 
Adjustments to Additional Paid in Capital, Other
128,098 
 
 
 
 
 
 
 
Proceeds from Sales of Business, Affiliate and Productive Assets
 
 
 
 
0 
 
 
0 
Proceeds from Stock Options Exercised
128,441 
 
 
 
 
 
 
 
Stockholders' Equity Attributable to Noncontrolling Interest
953 
 
 
 
 
 
 
 
Treasury Stock, Value, Acquired, Cost Method
298,619 
 
 
298,619 
 
 
298,619 
 
Net loss
(9,093,319)
 
 
 
 
(9,134,416)
(9,134,416)
41,097 
Ending Balance at Mar. 29, 2014
$ 125,911,203 
$ 746,278 
$ 321,941,313 
$ (42,741,551)
$ 2,801,837 
$ (156,837,627)
$ 125,910,250 
$ 953 
Ending Balance (in shares) at Mar. 29, 2014
 
74,627,733 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Cash flows from operating activities:
 
 
Net (loss) income
$ (9,093,319)
$ 21,364,390 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
 
 
Depreciation and amortization
932,974 
1,095,202 
Amortization of premium or discount on marketable debt securities
17,300 
(29,025)
Stock-based compensation
1,126,957 
1,505,832 
Loss in unconsolidated affiliate
102,305 
99,088 
Remeasurement Gain (Loss) On Previously Held Equity Interest In Acquiree
0 
2,485,393 
Gain from sale of III-V product line
0 
(33,452,176)
Deferred income taxes
(122,359)
40,700 
Foreign currency gains
(157,642)
(201,532)
Change in allowance for bad debt
14,679 
(18,508)
Other non-cash items
233,078 
189,224 
Changes in assets and liabilities:
 
 
Accounts receivable
122,945 
3,595,929 
Inventory
487,156 
1,100,241 
Prepaid expenses and other current assets
578,444 
288,901 
Accounts payable and accrued expenses
(504,810)
(1,177,857)
Billings in excess of revenue earned
117,491 
(155,476)
Net cash used in operating activities
(6,144,801)
(3,269,674)
Cash flows from investing activities:
 
 
Proceeds from sale of marketable debt securities
13,267,391 
6,604,744 
Purchase of marketable debt securities
(8,444,398)
(39,720,697)
Proceeds from sale of III-V product line
0 
55,000,000 
Purchases of cost based investments
0 
(2,750,278)
Other assets
(14,127)
0 
Capital expenditures
(444,372)
(307,930)
Net cash provided by investing activities
4,364,494 
18,825,839 
Net cash used in financing activities
 
 
Treasury stock purchases
(298,619)
0 
Purchase of noncontrolling interest in Kowon
0 
(3,662,400)
Proceeds from Stock Options Exercised
128,441 
 
Settlement of restricted stock for tax withholding obligations
0 
(11,449)
Net cash used in financing activities
(170,178)
(3,673,849)
Effect of exchange rate changes on cash
5,429 
(165,767)
Net (decrease) increase in cash and equivalents
(1,945,056)
11,716,549 
Cash and equivalents:
 
 
Beginning of period
16,756,666 
 
End of period
14,811,610 
38,851,936 
Supplemental disclosure of cash flow information:
 
 
Income taxes paid
57,100 
113,700 
Supplemental schedule of noncash investing activities:
 
 
Construction in progress included in accrued expenses
232,000 
0 
Non-cash proceeds from sale of III-V product line
$ 0 
$ 14,800,000 
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, Ikanos Consulting Ltd. (Ikanos) a majority owned (58%) subsidiary located in the United Kingdom and eMDT America Inc. (eMDT), a majority owned (51%) subsidiary located in California (collectively, the “Company”). Ownership interests of Kowon, Ikanos 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 29, 2014 and March 30, 2013 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 28, 2013.
During the first quarter of 2013, the Company paid approximately $3.7 million to acquire an additional 15% ownership in its Kowon subsidiary from the minority shareholders, as part of the Company's plan to close Kowon. As of March 29, 2014 and December 28, 2013, the sale of the facility does not meet the criteria for assets held for sale based on the anticipated time to sell the facility.
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 29, 2014, the change in the Company's accumulated other comprehensive income was the net of $(0.9) million foreign currency translation adjustment and $0.2 million unrealized holding gains on marketable securities.
DISCONTINUED OPERATIONS
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Discontinued Operations
On January 16, 2013 (the Closing Date), the Company sold its III-V product line, including all of the outstanding equity interest in KTC Wireless, LLC, a wholly owned subsidiary of the Company, to IQE KC, LLC and IQE plc pursuant to a Purchase Agreement (the Purchase Agreement) entered into on January 10, 2013, for a net purchase price of $70.2 million and the gain on the sale, net of tax, was $20.4 million. Under the terms of the Purchase Agreement, $55 million was paid to the Company in January 2013, $0.2 million was paid in April 2013 and the remaining $15.0 million will be paid to the Company on the third anniversary of the Closing Date. The Company has recorded the $15.0 million receivable at the discounted value of $14.8 million, at the date of disposition. The Company is accreting this balance over the three year period.
The operating results of the III-V product line prior to the sale are reported within income from discontinued operations, net of tax, in the consolidated statement of operations.
The following table summarizes the results from discontinued operations (in millions) for the three months ended March 30, 2013:
 
March 30, 2013
Net product and research and development revenues
$
2.3

Loss from discontinued operations before income taxes
(0.2
)
Provision 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

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 29, 2014 and the year ended December 28, 2013.
Investments in available-for-sale marketable debt securities are as follows at March 29, 2014 and December 28, 2013:
 
Amortized Cost

Unrealized Gains

Unrealized Losses

Fair Value
 
2014

2013

2014

2013

2014

2013

2014

2013
U.S. government and agency backed securities
$
73,883,903


$
68,970,505


$
—


$
—


$
(383,800
)

$
(686,113
)

$
73,500,103


$
68,284,392

Corporate debt and certificates of deposit
17,883,490


27,767,513


—


—


(49,381
)

(79,370
)

17,834,109


27,688,143

Total
$
91,767,393

 
$
96,738,018

 
$
—

 
$
—

 
$
(433,181
)
 
$
(765,483
)
 
$
91,334,212

 
$
95,972,535


The contractual maturity of the Company’s marketable debt securities is as follows at March 29, 2014:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
19,652,512

 
$
43,598,521

 
$
10,249,070

 
$
73,500,103

Corporate debt and certificates of deposit
14,382,597

 
2,467,762

 
983,750

 
17,834,109

Total
$
34,035,109

 
$
46,066,283

 
$
11,232,820

 
$
91,334,212


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 loss. The Company did not record an OTTI for the three months ended March 29, 2014 and March 30, 2013.
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 29, 2014 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
14,811,610

 
$
14,811,610

 
$
—

 
$
—

U.S. Government Securities
73,500,103

 
25,013,792

 
48,486,311

 
—

Corporate Debt
4,709,186

 
—

 
4,709,186

 
—

Certificates of Deposit
13,124,923

 
—

 
13,124,923

 
—

Vuzix Corporation
1,293,773

 
1,293,773

 
—

 
—

 
$
107,439,595

 
$
41,119,175

 
$
66,320,420

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 28, 2013 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
16,756,666

 
$
16,756,666

 
$
—

 
$
—

U.S. Government Securities
68,284,392

 
16,542,003

 
51,742,389

 
—

Corporate Debt
12,984,331

 
—

 
12,984,331

 
—

Certificates of Deposit
14,703,812

 
—

 
14,703,812

 
—

Vuzix Corporation
1,433,102

 
1,433,102

 
—

 
—

 
$
114,162,303

 
$
34,731,771

 
$
79,430,532

 
$
—


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 determines the fair market values of these corporate debt instruments 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 29, 2014 and December 28, 2013:
 
March 29,
2014
 
December 28,
2013
Raw materials
$
1,330,043

 
$
1,441,569

Work-in-process
811,110

 
1,003,540

Finished goods
219,865

 
632,946

 
$
2,361,018

 
$
3,078,055

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 29, 2014
 
March 30, 2013
Weighted average common shares outstanding-basic
62,530,202

 
63,935,508

Stock options and non-vested restricted common stock
—

 
—

Weighted average common shares outstanding-diluted
62,530,202

 
63,935,508


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 29, 2014
 
March 30, 2013
Non-vested restricted common stock
3,349,148

 
2,411,048

Stock options
524,600

 
981,505

Total
3,873,748

 
3,392,553


Not included in weighted average common shares outstanding-diluted are the warrants to purchase 200,000 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 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.
During the quarter ended March 29, 2014, the 2010 Equity Plan has been amended to increase the number of authorized shares by 1.9 million.
A summary of award activity under the stock option plans as of March 29, 2014 and changes during the three month period is as follows (all options were vested as of March 29, 2014):
 
Three months ended March 29, 2014
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 28, 2013
558,850

 
$
5.09

Options forfeited/canceled
—

 
—

Options exercised
(34,250
)
 
3.75

Balance, all exercisable, March 29, 2014
524,600

 
$
5.18


The following table summarizes information about stock options outstanding and exercisable at March 29, 2014:
 
Options Outstanding and Exercisable
Range of Exercise Prices
Number
Outstanding
and
Exercisable
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Weighted
Average
Exercise
Price
$ 3.15—$ 3.50
130,000

 
1.00
 
$
3.49

$ 3.75—$ 5.00
294,600

 
1.00
 
4.29

$10.00
100,000

 
1.00
 
10.00


524,600

 
1.00
 
$
5.18

Aggregate intrinsic value on March 29, 2014
$
32,950

 

 


The Company has issued warrants to purchase 200,000 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 29, 2014 and changes during the three month period is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 28, 2013
2,974,148

 
$
4.25

Granted
375,000

 
4.44

Forfeited
—

 
—

Vested
—

 
—

Balance, March 29, 2014
3,349,148

 
$
4.27


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 period ended March 29, 2014.
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 29, 2014 and March 30, 2013 (no tax benefits were recognized):
 
Three Months Ended
 
March 29,
2014
 
March 30,
2013
Cost of component revenues
$
230,333

 
$
54,103

Research and development
332,463

 
52,615

Selling, general and administrative
564,161

 
1,399,114

Total
$
1,126,957

 
$
1,505,832


Unrecognized compensation expense for non-vested restricted common stock as of March 29, 2014 totaled $6.9 million and is expected to be recognized over a weighted average period of 2 years.
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND NOTE RECEIVABLE
The Company has an approximate 12% ownership interest in KoBrite at March 29, 2014. The Company accounts for its interest using the equity method and at March 29, 2014 the carrying value of the investment was $1.3 million. One of the Company’s directors is a member of the Board of Directors of Bright LED, principal investor of KoBrite.
Summarized income statements for KoBrite for the three month periods ended March 29, 2014 and March 30, 2013 are as follows. KoBrite's results are recorded one quarter in arrears and therefore KoBrite's results included in the three month periods ended March 29, 2014 and March 30, 2013 are for the three month periods ended December 28, 2013 and December 29, 2012, respectively.
 
Three Months Ended
 
March 29,
2014
 
March 30,
2013
Revenue
$
877,000

 
$
1,063,000

Gross margin
(519,000
)
 
(565,000
)
Loss from operations
(1,001,000
)
 
(987,000
)
Net loss
(872,000
)
 
(844,000
)

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 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.
ACQUISITION OF eMDT
Schedule of Business Acquisitions, by Acquisition [Table Text Block] 
ACQUISITION OF eMDT 
ACQUISITION OF eMDT
In April 2013, the Company acquired 51% of the outstanding stock of eMDT, a private company, for $400,000. The assets, liabilities and results of operations of eMDT have been consolidated within the Company's financial statements since April 17, 2013. The Company has an option to acquire an additional 25% of the Company for $200,000. In connection with the acquisition, the Company has preliminarily allocated excess purchase price in the amount of approximately $400,000 to goodwill. 
The unaudited pro forma financial results for the three month period ended March 30, 2013 combine the unaudited historical results of the Company along with the unaudited historical results of eMDT. The results include the effects of unaudited pro forma adjustments as if eMDT were acquired on December 30, 2012 (the first day of the Company's fiscal year 2013). There were no material nonrecurring pro forma adjustments in the calculation of revenue or earnings. The pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisition. These results are presented for informational purposes only and are not necessarily indicative of future operations.
 
March 30, 2013
Revenues
$
6,524,000

Net income
$
21,451,000

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 29, 2014 are as follows:
Balance, December 28, 2013
$
716,000

Additions
143,000

Claim and reversals
(143,000
)
Balance, March 29, 2014
$
716,000

INCOME TAXES
INCOME TAXES
INCOME TAXES
The Company’s tax benefit of approximately $143,000 for the three months ended March 29, 2014 represents a reduction in estimated foreign withholding taxes due on an international subsidiary. The Company's tax benefit of approximately $13.0 million for the three months ended March 30, 2013, represents an intraperiod tax allocation related to the Company's discontinued operations.
For the three months ended March 30, 2013, discontinued operations reflects the gain on the sale of the III-V product line and investment in KTC. The Company has federal net operating loss carryforwards which may be used to offset the gain on the sale of the III-V product line and investment in KTC. The federal tax benefit from the utilization of the net operating losses is shown in the Company's tax provision in the condensed consolidated statement of operations.

In accordance with U.S. GAAP, intraperiod tax allocation provisions require allocation of a tax expense to the gain on discontinued operations based upon the Company's statutory tax rate. The Company has net operating loss (NOL) carryforwards available to offset the tax expense. The benefit of these NOLs is reflected in the tax benefit from continuing operations. Accordingly, the Company recorded a tax expense in discontinued operations and a benefit in continuing operations of approximately $13.0 million in 2013.
As of March 29, 2014, the Company has available for tax purposes U.S. federal NOLs of $51.0 million expiring through 2033. 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 $10.1 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 2002. 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, Ikanos and eMDT. The following table presents the Company’s reportable segment results (in thousands):
 
Three Months Ended March 29, 2014
 
Kopin
 
FDD
 
Total
2014
 
 
 
 
 
Revenues
$
3,902

 
$
793

 
$
4,695

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

 
2,014

 
137,094

Long-lived assets from continuing operations
4,927

 
423

 
5,350

 
Three Months Ended March 30, 2013
 
Kopin
 
FDD
 
Total
2013
 
 
 
 
 
Revenues
$
5,523

 
$
796

 
$
6,319

Net income (loss) attributable to the controlling interest
22,231

 
(597
)
 
21,634

Total assets from continuing operations
176,764

 
3,829

 
180,593

Long-lived assets from continuing operations
6,352

 
597

 
6,949





The Company recast the prior year balances to reflect the change in its reporting segments which occurred at December 28, 2013.
During the three month periods ended March 29, 2014 and March 30, 2013, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
March 29, 2014
 
March 30, 2013
US
37
%
 
63
%
Others
—
%
 
—
%
        Americas
37
%
 
63
%
Asia-Pacific
47
%
 
27
%
Europe
16
%
 
10
%
       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.
DISCONTINUED OPERATIONS Results from Discontinued Operations (Tables)
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]
The following table summarizes the results from discontinued operations (in millions) for the three months ended March 30, 2013:
 
March 30, 2013
Net product and research and development revenues
$
2.3

Loss from discontinued operations before income taxes
(0.2
)
Provision 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

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 29, 2014 and December 28, 2013:
 
Amortized Cost

Unrealized Gains

Unrealized Losses

Fair Value
 
2014

2013

2014

2013

2014

2013

2014

2013
U.S. government and agency backed securities
$
73,883,903


$
68,970,505


$
—


$
—


$
(383,800
)

$
(686,113
)

$
73,500,103


$
68,284,392

Corporate debt and certificates of deposit
17,883,490


27,767,513


—


—


(49,381
)

(79,370
)

17,834,109


27,688,143

Total
$
91,767,393

 
$
96,738,018

 
$
—

 
$
—

 
$
(433,181
)
 
$
(765,483
)
 
$
91,334,212

 
$
95,972,535

Marketable Debt Securities 
The contractual maturity of the Company’s marketable debt securities is as follows at March 29, 2014:
 
Less than
One year
 
One to
Five years
 
Greater than
Five years
 
Total
U.S. government and agency backed securities
$
19,652,512

 
$
43,598,521

 
$
10,249,070

 
$
73,500,103

Corporate debt and certificates of deposit
14,382,597

 
2,467,762

 
983,750

 
17,834,109

Total
$
34,035,109

 
$
46,066,283

 
$
11,232,820

 
$
91,334,212

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 29, 2014 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
14,811,610

 
$
14,811,610

 
$
—

 
$
—

U.S. Government Securities
73,500,103

 
25,013,792

 
48,486,311

 
—

Corporate Debt
4,709,186

 
—

 
4,709,186

 
—

Certificates of Deposit
13,124,923

 
—

 
13,124,923

 
—

Vuzix Corporation
1,293,773

 
1,293,773

 
—

 
—

 
$
107,439,595

 
$
41,119,175

 
$
66,320,420

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement December 28, 2013 Using:
 
 
 
Level 1
 
Level 2
 
Level 3
Money Markets, Cash and Equivalents
$
16,756,666

 
$
16,756,666

 
$
—

 
$
—

U.S. Government Securities
68,284,392

 
16,542,003

 
51,742,389

 
—

Corporate Debt
12,984,331

 
—

 
12,984,331

 
—

Certificates of Deposit
14,703,812

 
—

 
14,703,812

 
—

Vuzix Corporation
1,433,102

 
1,433,102

 
—

 
—

 
$
114,162,303

 
$
34,731,771

 
$
79,430,532

 
$
—


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 29, 2014 and December 28, 2013:
 
March 29,
2014
 
December 28,
2013
Raw materials
$
1,330,043

 
$
1,441,569

Work-in-process
811,110

 
1,003,540

Finished goods
219,865

 
632,946

 
$
2,361,018

 
$
3,078,055

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 29, 2014
 
March 30, 2013
Weighted average common shares outstanding-basic
62,530,202

 
63,935,508

Stock options and non-vested restricted common stock
—

 
—

Weighted average common shares outstanding-diluted
62,530,202

 
63,935,508

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 29, 2014
 
March 30, 2013
Non-vested restricted common stock
3,349,148

 
2,411,048

Stock options
524,600

 
981,505

Total
3,873,748

 
3,392,553

STOCK-BASED COMPENSATION (Tables)
Stock- Based Compensation 
A summary of award activity under the stock option plans as of March 29, 2014 and changes during the three month period is as follows (all options were vested as of March 29, 2014):
 
Three months ended March 29, 2014
 
Shares
 
Weighted
Average
Exercise
Price
Balance, December 28, 2013
558,850

 
$
5.09

Options forfeited/canceled
—

 
—

Options exercised
(34,250
)
 
3.75

Balance, all exercisable, March 29, 2014
524,600

 
$
5.18

Stock Options Outstanding and Exercisable 
The following table summarizes information about stock options outstanding and exercisable at March 29, 2014:
 
Options Outstanding and Exercisable
Range of Exercise Prices
Number
Outstanding
and
Exercisable
 
Weighted
Average
Remaining
Contractual
Life (Years)
 
Weighted
Average
Exercise
Price
$ 3.15—$ 3.50
130,000

 
1.00
 
$
3.49

$ 3.75—$ 5.00
294,600

 
1.00
 
4.29

$10.00
100,000

 
1.00
 
10.00


524,600

 
1.00
 
$
5.18

Aggregate intrinsic value on March 29, 2014
$
32,950

 

 

NonVested Restricted Common Stock 
A summary of the activity for non-vested restricted common stock awards as of March 29, 2014 and changes during the three month period is presented below:
 
Shares
 
Weighted
Average
Grant
Fair
Value
Balance, December 28, 2013
2,974,148

 
$
4.25

Granted
375,000

 
4.44

Forfeited
—

 
—

Vested
—

 
—

Balance, March 29, 2014
3,349,148

 
$
4.27

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 29, 2014 and March 30, 2013 (no tax benefits were recognized):
 
Three Months Ended
 
March 29,
2014
 
March 30,
2013
Cost of component revenues
$
230,333

 
$
54,103

Research and development
332,463

 
52,615

Selling, general and administrative
564,161

 
1,399,114

Total
$
1,126,957

 
$
1,505,832

OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES (Tables)
Summary of Financial Information for KoBrite
Summarized income statements for KoBrite for the three month periods ended March 29, 2014 and March 30, 2013 are as follows. KoBrite's results are recorded one quarter in arrears and therefore KoBrite's results included in the three month periods ended March 29, 2014 and March 30, 2013 are for the three month periods ended December 28, 2013 and December 29, 2012, respectively.
 
Three Months Ended
 
March 29,
2014
 
March 30,
2013
Revenue
$
877,000

 
$
1,063,000

Gross margin
(519,000
)
 
(565,000
)
Loss from operations
(1,001,000
)
 
(987,000
)
Net loss
(872,000
)
 
(844,000
)
ACQUISITION OF eMDT (Tables)
Business Acquisition, Pro Forma Information
The pro forma financial results presented below do not include any anticipated synergies or other expected benefits of the acquisition. These results are presented for informational purposes only and are not necessarily indicative of future operations.
 
March 30, 2013
Revenues
$
6,524,000

Net income
$
21,451,000

ACCRUED WARRANTY (Tables)
Accrued Warranty
Changes in the accrued warranty for the three months ended March 29, 2014 are as follows:
Balance, December 28, 2013
$
716,000

Additions
143,000

Claim and reversals
(143,000
)
Balance, March 29, 2014
$
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 29, 2014
 
Kopin
 
FDD
 
Total
2014
 
 
 
 
 
Revenues
$
3,902

 
$
793

 
$
4,695

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

 
2,014

 
137,094

Long-lived assets from continuing operations
4,927

 
423

 
5,350

 
Three Months Ended March 30, 2013
 
Kopin
 
FDD
 
Total
2013
 
 
 
 
 
Revenues
$
5,523

 
$
796

 
$
6,319

Net income (loss) attributable to the controlling interest
22,231

 
(597
)
 
21,634

Total assets from continuing operations
176,764

 
3,829

 
180,593

Long-lived assets from continuing operations
6,352

 
597

 
6,949

Percentage of Net Revenues by Geographies 
During the three month periods ended March 29, 2014 and March 30, 2013, the Company derived its sales from the following geographies (as a percentage of net revenues):
 
Three Months Ended
 
March 29, 2014
 
March 30, 2013
US
37
%
 
63
%
Others
—
%
 
—
%
        Americas
37
%
 
63
%
Asia-Pacific
47
%
 
27
%
Europe
16
%
 
10
%
       Total Revenues
100
%
 
100
%
BASIS OF PRESENTATION (Details) (USD $)
3 Months Ended
Mar. 29, 2014
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
$ (690,243)
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Purchase of Interest by Parent
3,700,000 
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Changes, Additional Interest Issued to Parent
0.15 
Kowon Technology Corporation Limited [Member]
 
Organization, Consolidation and Presentation of Financial Statements Disclosure [Line Items]
 
Noncontrolling Interest, Ownership Percentage by Parent
93.00% 
Ikanos
 
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
51.00% 
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
(900,000)
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
$ 200,000 
DISCONTINUED OPERATIONS (Details) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Dec. 28, 2013
Jan. 16, 2013
Jan. 31, 2013
III-V product line including all outstanding equity interest in KTC Wireless, LLC
Mar. 29, 2014
III-V product line including all outstanding equity interest in KTC Wireless, LLC
Mar. 30, 2013
III-V product line including all outstanding equity interest in KTC Wireless, LLC
Jan. 16, 2013
III-V product line including all outstanding equity interest in KTC Wireless, LLC
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
Business Acquisition, Cost of Acquired Entity, Purchase Price
$ 70,200,000 
 
 
 
 
 
 
$ 15,000,000 
Proceeds received from divestiture
 
 
 
 
55,000,000 
200,000 
 
 
Accounts and Notes Receivable, Net
14,883,334 
 
14,866,666 
14,800,000 
 
 
 
 
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
 
 
 
 
 
 
 
 
Net sales and other operating revenues
 
 
 
 
 
 
2,300,000 
 
Income from operations before income taxes
 
 
 
 
 
 
(200,000)
 
Provision for income taxes on operations
 
 
 
 
 
 
0 
 
Income from operations, net of tax
 
 
 
 
 
 
(200,000)
 
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax
20,400,000 
 
 
 
 
 
20,400,000 
 
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest
$ 0 
$ 20,196,888 
 
 
 
 
$ 20,200,000 
 
CASH AND EQUIVALENTS AND MARKETABLE SECURITIES (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Dec. 28, 2013
Mar. 30, 2013
Debt securities
Mar. 29, 2014
U.S. government and agency backed securities
Dec. 28, 2013
U.S. government and agency backed securities
Mar. 29, 2014
Corporate debt and certificates of deposit
Dec. 28, 2013
Corporate debt and certificates of deposit
Schedule of Available-for-sale Securities [Line Items]
 
 
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
 
 
$ 0 
 
 
 
 
Amortized Cost
91,767,393 
96,738,018 
 
73,883,903 
68,970,505 
17,883,490 
27,767,513 
Unrealized Gains
0 
0 
 
0 
0 
0 
0 
Unrealized Losses
(433,181)
(765,483)
 
(383,800)
(686,113)
(49,381)
(79,370)
Fair Value
91,334,212 
95,972,535 
 
73,500,103 
68,284,392 
17,834,109 
27,688,143 
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity [Abstract]
 
 
 
 
 
 
 
Less than one year
34,035,109 
 
 
19,652,512 
 
14,382,597 
 
One to five years
46,066,283 
 
 
43,598,521 
 
2,467,762 
 
Greater than five years
$ 11,232,820 
 
 
$ 10,249,070 
 
$ 983,750 
 
FAIR VALUE MEASUREMENTS (Details) (USD $)
Mar. 29, 2014
Dec. 28, 2013
Level 1
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
$ 41,119,175 
$ 34,731,771 
Level 1 |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
14,811,610 
16,756,666 
Level 1 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
25,013,792 
16,542,003 
Level 1 |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
   
   
Level 1 |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
   
   
Level 1 |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
1,293,773 
1,433,102 
Level 2
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
66,320,420 
79,430,532 
Level 2 |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
   
   
Level 2 |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
48,486,311 
51,742,389 
Level 2 |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
4,709,186 
12,984,331 
Level 2 |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
13,124,923 
14,703,812 
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 
Estimate of Fair Value
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
107,439,595 
114,162,303 
Estimate of Fair Value |
Money Markets, Cash and Equivalents
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
14,811,610 
16,756,666 
Estimate of Fair Value |
U.S. Government Securities
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
73,500,103 
68,284,392 
Estimate of Fair Value |
Corporate Debt
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
4,709,186 
12,984,331 
Estimate of Fair Value |
Certificates of Deposit
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
13,124,923 
14,703,812 
Estimate of Fair Value |
Vuzix [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Financial Instruments, Owned, at Fair Value
$ 1,293,773 
$ 1,433,102 
INVENTORY (Details) (USD $)
Mar. 29, 2014
Dec. 28, 2013
Inventory Disclosure [Abstract]
 
 
Raw materials
$ 1,330,043 
$ 1,441,569 
Work-in-process
811,110 
1,003,540 
Finished goods
219,865 
632,946 
Inventory
$ 2,361,018 
$ 3,078,055 
NET (LOSS) INCOME PER SHARE (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Earnings Per Share [Abstract]
 
 
Weighted average common shares outstanding - basic
62,530,202 
63,935,508 
Stock options and non-vested restricted common stock
0 
0 
Weighted average common shares outstanding - diluted
62,530,202 
63,935,508 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Issuance Of Warrants Shares
200,000 
 
Antidilutive securities excluded from computation of earnings per share
3,873,748 
3,392,553 
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
3,349,148 
2,411,048 
Stock options
 
 
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
Antidilutive securities excluded from computation of earnings per share
524,600 
981,505 
STOCK-BASED COMPENSATION (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Mar. 29, 2014
Class of Warrant or Right [Line Items]
 
Warrant issued to purchase company's stock
200,000 
Warrant issued to purchase company's stock, exercise price
$ 3.49 
Period 1
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
1 year 
Period 2
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
2 years 
Period 3
 
Class of Warrant or Right [Line Items]
 
Nonvested common stock awards employment obligations (in years)
4 years 
Restricted stock
 
Class of Warrant or Right [Line Items]
 
Unrecognized compensation cost related to nonvested stock awards
$ 6.9 
Unrecognized compensation cost related to nonvested stock awards, period of recognition (in years)
2 years 
STOCK-BASED COMPENSATION - Summay of Award Activity under the Stock Option Plans and Changes (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Shares
 
Beginning Balance
558,850 
Options forfeited/cancelled
0 
Options exercised
(34,250)
Ending Balance
524,600 
Weighted Average Exercise Price
 
Beginning Balance
$ 5.09 
Options forfeited/cancelled
$ 0.00 
Options exercised
$ 3.75 
Ending Balance
$ 5.18 
Equity Incentive Plan 2010 [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized
1.9 
STOCK-BASED COMPENSATION - Stock Options Outstanding and Exercisable (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Dec. 28, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
Number Outstanding and Exercisable
524,600 
558,850 
Weighted Average Remaining Contractual Life (Years)
1 year 
 
Weighted Average Exercise Price
$ 5.18 
$ 5.09 
Aggregate intrinsic value on September 29, 2012
$ 32,950 
 
Range 1
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
Range of Exercise Prices, Lower Limit
$ 0.01 
 
Range of Exercise Prices, Upper Limit
$ 3.50 
 
Number Outstanding and Exercisable
130,000 
 
Weighted Average Remaining Contractual Life (Years)
1 year 
 
Weighted Average Exercise Price
$ 3.49 
 
Range 2
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
Range of Exercise Prices, Lower Limit
$ 3.75 
 
Range of Exercise Prices, Upper Limit
$ 5.00 
 
Number Outstanding and Exercisable
294,600 
 
Weighted Average Remaining Contractual Life (Years)
1 year 
 
Weighted Average Exercise Price
$ 4.29 
 
Range 3
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
Range of Exercise Prices, Lower Limit
$ 5.00 
 
Range of Exercise Prices, Upper Limit
$ 5.29 
 
Range 4
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
 
 
Range of Exercise Prices, Lower Limit
$ 10.00 
 
Range of Exercise Prices, Upper Limit
$ 0.00 
 
Number Outstanding and Exercisable
100,000 
 
Weighted Average Remaining Contractual Life (Years)
1 year 
 
Weighted Average Exercise Price
$ 10.00 
 
STOCK-BASED COMPENSATION - Summary of Activity for Nonvested Restricted Common Stock Awards (Details) (Non-vested restricted common stock, USD $)
3 Months Ended
Mar. 29, 2014
Non-vested restricted common stock
 
Shares
 
Beginning Balance
2,974,148 
Granted
375,000 
Forfeited
0 
Vested
0 
Ending Balance
3,349,148 
Weighted Average Grant Fair Value
 
Beginning Balance
$ 4.25 
Granted
$ 4.44 
Forfeited
$ 0.00 
Vested
$ 0.00 
Ending Balance
$ 4.27 
STOCK-BASED COMPENSATION - Expense Related to Employee Stock Options and Nonvested Restricted Common Stock Awards (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
$ 1,126,957 
$ 1,505,832 
Cost of product revenues
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
230,333 
54,103 
Research and development
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
332,463 
52,615 
Selling, general and administrative
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Stock-based compensation
$ 564,161 
$ 1,399,114 
STOCK-BASED COMPENSATION Issuance on non-vested restricted stock to employees and officers (Details)
3 Months Ended
Mar. 29, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures
50,000 
Period One [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
1 year 
Period Two [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
2 years 
Period Three [Member]
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
4 years 
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Jan. 16, 2013
Summarized Income Statements
 
 
 
Revenues
$ 4,694,770 
$ 6,319,084 
 
(Loss) income from operations
(9,613,765)
(9,641,994)
 
Net loss
(9,093,319)
21,364,390 
 
Accounts and Notes Receivable, Net
 
 
14,900,000 
Ko Brite
 
 
 
Schedule of Equity Method Investments [Line Items]
 
 
 
Company's ownership percentage
12.00% 
 
 
Carrying value of the investment
1,300,000 
 
 
Summarized Income Statements
 
 
 
Revenues
877,000 
 
 
Business Acquisition, Pro Forma Revenue
 
1,063,000 
 
Gross margin
(519,000)
(565,000)
 
(Loss) income from operations
(1,001,000)
(987,000)
 
Net loss
$ (872,000)
$ (844,000)
 
ACQUISITION OF eMDT (Details) (USD $)
3 Months Ended 3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Mar. 30, 2013
Ikanos [Member]
Mar. 29, 2014
eMDT
Mar. 14, 2013
Ownership Increases in Subsidiaries, Affiliates
Business Acquisition Two
Mar. 14, 2013
Noncontrolling Interest
Business Acquisition Two
Business Acquisition [Line Items]
 
 
 
 
 
 
Cumulative Percentage of Voting Interests Acquired
 
 
 
51.00% 
 
 
Business Combination, Consideration Transferred
 
 
 
$ 400,000 
 
 
Equity Method Investment, Ownership Percentage
 
 
 
 
25.00% 
 
Payments to Acquire Investments
0 
2,750,278 
 
 
 
200,000 
Business Acquisition, Purchase Price Allocation, Goodwill Amount
400,000 
 
 
 
 
 
Business Acquisition, Pro Forma Information [Abstract]
 
 
 
 
 
 
Revenues
 
 
6,524,000 
 
 
 
Net (loss) income
 
 
$ 21,451,000 
 
 
 
ACCRUED WARRANTY (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Product Warranties Disclosures [Abstract]
 
Product warranty term
12 months 
Movement in Standard Product Warranty Accrual [Roll Forward]
 
Beginning Balance
$ 716,000 
Additions
143,000 
Claim and reversals
(143,000)
Ending Balance
$ 716,000 
INCOME TAXES (Details) (USD $)
3 Months Ended
Mar. 29, 2014
Mar. 30, 2013
Income Taxes [Line Items]
 
 
State income and foreign tax expenses
$ (143,000)
$ (13,040,000)
Notes, Loans and Financing Receivable, Gross, Noncurrent
70,200,000 
 
Income Taxes Paid, Net
0 
 
Net operating loss carryforwards available for tax purposes
51,000,000 
 
Net operating loss carryforwards, expiration date
expiring through 2033 
 
Unrecorded benefits from stock award
$ 10,100,000 
 
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. 29, 2014
Mar. 30, 2013
Dec. 28, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenues
$ 4,694,770 
$ 6,319,084 
 
Percentage of total revenue
100.00% 
100.00% 
 
Net Income (Loss) Attributable to Parent
(9,134,416)
21,633,809 
 
Assets
137,093,896 
 
146,131,723 
US
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Percentage of total revenue
37.00% 
63.00% 
 
All Others
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Percentage of total revenue
0.00% 
0.00% 
 
Americas
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Percentage of total revenue
37.00% 
63.00% 
 
Asia-Pacific
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Percentage of total revenue
47.00% 
27.00% 
 
Europe
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Percentage of total revenue
16.00% 
10.00% 
 
Kopin United States [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenues
3,902,000 
5,523,000 
 
Forth Dimension Displays Limited [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Revenues
793,000 
796,000 
 
Segment, Continuing Operations [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net Income (Loss) Attributable to Parent
(9,134,000)
21,634,000 
 
Assets
137,094,000 
180,593,000 
 
Long-Lived Assets
5,350,000 
6,949,000 
 
Segment, Continuing Operations [Member] |
Kopin United States [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net Income (Loss) Attributable to Parent
(8,624,000)
22,231,000 
 
Assets
135,080,000 
176,764,000 
 
Long-Lived Assets
4,927,000 
6,352,000 
 
Segment, Continuing Operations [Member] |
Forth Dimension Displays Limited [Member]
 
 
 
Revenues from External Customers and Long-Lived Assets [Line Items]
 
 
 
Net Income (Loss) Attributable to Parent
(510,000)
(597,000)
 
Assets
2,014,000 
3,829,000 
 
Long-Lived Assets
$ 423,000 
$ 597,000