Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Mar. 01, 2021 | Jun. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 26, 2020 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current Fiscal Year End Date | --12-26 | ||
Entity File Number | 0-19882 | ||
Entity Registrant Name | KOPIN CORPORATION | ||
Entity Central Index Key | 0000771266 | ||
Entity Tax Identification Number | 04-2833935 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 125 North Drive | ||
Entity Address, City or Town | Westborough | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01581-3335 | ||
City Area Code | (508) | ||
Local Phone Number | 870-5959 | ||
Title of 12(b) Security | Common Stock, par value $0.01 | ||
Trading Symbol | KOPN | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 97,431,868 | ||
Entity Common Stock, Shares Outstanding | 91,284,909 | ||
ICFR Auditor Attestation Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 17,112,869 | $ 6,029,247 |
Marketable debt securities, at fair value | 3,635,681 | 15,752,997 |
Accounts receivable, net of allowance of $175,000 and $938,000 in 2020 and 2019, respectively | 9,260,865 | 6,023,250 |
Contract assets and unbilled receivables | 3,521,753 | 921,082 |
Inventory | 4,455,756 | 3,768,696 |
Prepaid taxes | 205,568 | 104,442 |
Prepaid expenses and other current assets | 1,263,688 | 1,164,927 |
Total current assets | 39,456,180 | 33,764,641 |
Property, plant and equipment, net | 1,626,930 | 1,473,341 |
Operating lease right-of-use assets | 1,780,039 | 2,753,963 |
Other assets | 162,473 | 517,411 |
Equity investments | 4,523,525 | 4,537,159 |
Total assets | 47,549,147 | 43,046,515 |
Current liabilities: | ||
Accounts payable | 5,606,910 | 3,998,234 |
Accrued payroll and expenses | 1,977,851 | 2,203,773 |
Accrued warranty | 508,000 | 509,000 |
Contract liabilities and billings in excess of revenue earned | 1,493,847 | 796,794 |
Operating lease liabilities | 982,375 | 1,041,695 |
Other accrued liabilities | 1,809,495 | 2,202,217 |
Customer deposits | 3,950,031 | 33,000 |
Deferred tax liabilities | 554,000 | 525,000 |
Total current liabilities | 16,882,509 | 11,309,713 |
Noncurrent contract liabilities and asset retirement obligations | 276,409 | 268,440 |
Operating lease liabilities, net of current portion | 821,306 | 1,791,590 |
Other long-term liabilities | 1,270,328 | 1,085,160 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued | ||
Common stock, par value $.01 per share: authorized, 120,000,000 shares; issued 91,059,407 shares in 2020 and 88,912,796 shares in 2019; outstanding 85,443,378 in 2020 and 82,536,416 in 2019, respectively | 880,075 | 870,496 |
Additional paid-in capital | 341,512,893 | 344,456,537 |
Treasury stock (2,564,155 and 4,513,256 shares in 2020 and 2019, at cost) | (9,793,946) | (17,238,669) |
Accumulated other comprehensive income | 1,484,434 | 1,757,184 |
Accumulated deficit | (305,648,025) | (301,236,913) |
Total Kopin Corporation stockholders’ equity | 28,435,431 | 28,608,635 |
Noncontrolling interest | (136,836) | (17,023) |
Total stockholders’ equity | 28,298,595 | 28,591,612 |
Total liabilities and stockholders’ equity | $ 47,549,147 | $ 43,046,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 175,000 | $ 938,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | |
Common Stock, Shares Authorized | 120,000,000 | |
Common Stock, Shares, Issued | 91,059,407 | 88,912,796 |
Common Stock, Shares, Outstanding | 85,443,378 | 82,536,416 |
Treasury stock, shares | 2,564,155 | 4,513,256 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenues: | |||
Total revenue | $ 40,127,669 | $ 29,518,809 | $ 24,465,005 |
Expenses: | |||
Cost of product revenues | 21,398,381 | 20,901,538 | 15,831,441 |
Research and development-funded programs | 7,745,762 | 4,216,161 | 4,892,066 |
Research and development-internal | 3,924,241 | 9,132,969 | 12,553,237 |
Selling, general and administrative | 11,822,703 | 21,316,459 | 27,210,849 |
Impairment of goodwill | 331,344 | 1,417,470 | |
Impairment of assets | 2,526,669 | ||
Total operating expenses | 44,891,087 | 55,898,471 | 64,431,732 |
Loss from operations | (4,763,418) | (26,379,662) | (39,966,727) |
Non-operating income (expense), net: | |||
Interest income | 132,642 | 543,759 | 640,059 |
Other (expense) income, net | (35,463) | 225,617 | 855,106 |
Foreign currency transaction gains | 293,670 | 202,517 | 1,169,254 |
(Loss) gain on investments | (29,356) | (3,858,453) | 2,849,816 |
Total non-operating income (expense) | 361,493 | (2,886,560) | 5,514,235 |
Loss before provision for income taxes and net loss (income) of noncontrolling interest | (4,401,925) | (29,266,222) | (34,452,492) |
Tax provision | (129,000) | (108,000) | (30,000) |
Net loss | (4,530,925) | (29,374,222) | (34,482,492) |
Net loss (income) attributable to the noncontrolling interest | 119,813 | (132,030) | (51,050) |
Net loss attributable to Kopin Corporation | $ (4,411,112) | $ (29,506,252) | $ (34,533,542) |
Net loss per share: | |||
Basic and diluted | $ (0.05) | $ (0.37) | $ (0.47) |
Weighted average number of common shares outstanding: | |||
Basic and diluted | 82,347,741 | 80,282,126 | 73,156,545 |
Net Product Revenues [Member] | |||
Revenues: | |||
Total revenue | $ 28,517,874 | $ 20,283,888 | $ 19,211,115 |
Research and Development and Other Revenues [Member] | |||
Revenues: | |||
Total revenue | $ 11,609,795 | $ 9,234,921 | $ 5,253,890 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||
Net loss | $ (4,530,925) | $ (29,374,222) | $ (34,482,492) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | (67,852) | (206,580) | (1,912,427) |
Unrealized holding gain (loss) on marketable securities | (183,870) | 446,533 | (264,949) |
Reclassifications of (loss) gain in net loss on marketable securities | (21,028) | (37,356) | 49,525 |
Other comprehensive income (loss), net of tax | (272,750) | 202,597 | (2,127,851) |
Comprehensive loss | (4,803,675) | (29,171,625) | (36,610,343) |
Comprehensive (income) loss attributable to the noncontrolling interest | 119,813 | (132,030) | 66,609 |
Comprehensive loss attributable to Kopin Corporation | $ (4,683,862) | $ (29,303,655) | $ (36,543,734) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total Kopin Corporation Stockholders Equity [Member] | Noncontrolling Interest [Member] | Total |
Beginning balance, value at Dec. 30, 2017 | $ 775,720 | $ 329,917,858 | $ (17,238,669) | $ 3,564,779 | $ (240,256,502) | $ 76,763,186 | $ 616,661 | $ 77,379,847 |
Balance, shares at Dec. 30, 2017 | 77,572,038 | |||||||
Vesting of restricted stock | $ 10,930 | (10,930) | ||||||
Vesting of restricted stock, shares | 1,093,000 | |||||||
Stock-based compensation expense | 4,791,054 | 4,791,054 | 4,791,054 | |||||
Other comprehensive loss | (2,010,192) | (2,010,192) | (117,659) | (2,127,851) | ||||
Restricted stock for tax withholding obligations | $ (1,430) | (206,585) | (208,015) | (208,015) | ||||
Restricted stock for tax withholding obligations, shares | (142,972) | |||||||
Distribution to noncontrolling interest holder | (699,105) | (699,105) | ||||||
Adoption of accounting standard | 3,059,383 | 3,059,383 | 3,059,383 | |||||
Net loss | (34,533,542) | (34,533,542) | 51,050 | (34,482,492) | ||||
Ending balance, value at Dec. 29, 2018 | $ 785,220 | 334,491,397 | (17,238,669) | 1,554,587 | (271,730,661) | 47,861,874 | (149,053) | 47,712,821 |
Balance, shares at Dec. 29, 2018 | 78,522,066 | |||||||
Vesting of restricted stock | $ 6,345 | (6,345) | ||||||
Vesting of restricted stock, shares | 634,511 | |||||||
Stock-based compensation expense | 2,057,400 | 2,057,400 | 2,057,400 | |||||
Other comprehensive loss | 202,597 | 202,597 | 202,597 | |||||
Restricted stock for tax withholding obligations | $ (861) | (44,652) | (45,513) | (45,513) | ||||
Restricted stock for tax withholding obligations, shares | (86,086) | |||||||
Sale of registered stock, net of costs | $ 79,792 | 7,958,737 | 8,038,529 | 8,038,529 | ||||
Sale of registered stock, shares | 7,979,181 | |||||||
Net loss | (29,506,252) | (29,506,252) | 132,030 | (29,374,222) | ||||
Ending balance, value at Dec. 28, 2019 | $ 870,496 | 344,456,537 | (17,238,669) | 1,757,184 | (301,236,913) | 28,608,635 | (17,023) | 28,591,612 |
Balance, shares at Dec. 28, 2019 | 87,049,672 | |||||||
Vesting of restricted stock | $ 10,387 | (10,387) | ||||||
Vesting of restricted stock, shares | 1,038,655 | |||||||
Stock-based compensation expense | 821,122 | 821,122 | 821,122 | |||||
Other comprehensive loss | (272,750) | (272,750) | (272,750) | |||||
Restricted stock for tax withholding obligations | $ (808) | (139,118) | (139,926) | (139,926) | ||||
Restricted stock for tax withholding obligations, shares | (80,792) | |||||||
Sale of treasury stock, net of costs | (3,615,261) | 7,444,723 | 3,829,462 | 3,829,462 | ||||
Net loss | (4,411,112) | (4,411,112) | (119,813) | (4,530,925) | ||||
Ending balance, value at Dec. 26, 2020 | $ 880,075 | $ 341,512,893 | $ (9,793,946) | $ 1,484,434 | $ (305,648,025) | $ 28,435,431 | $ (136,836) | $ 28,298,595 |
Balance, shares at Dec. 26, 2020 | 88,007,535 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Cash flows from operating activities: | |||
Net loss | $ (4,530,925) | $ (29,374,222) | $ (34,482,492) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 651,083 | 792,221 | 1,958,680 |
Accretion of premium or discount on marketable debt securities | 7,762 | 21,838 | 15,948 |
Stock-based compensation | 821,122 | 2,057,400 | 4,791,054 |
Net loss (gain) on investment transactions | 29,356 | 3,858,453 | (2,849,816) |
Income taxes | 116,536 | 105,036 | 4,185 |
Foreign currency (gains) losses | (289,471) | (220,015) | (1,096,487) |
Loss on sale of property and plant | 508,833 | 51,159 | |
Impairment of assets | 2,526,669 | ||
Impairment of goodwill | 331,344 | 1,417,470 | |
Change in allowance for bad debt | (763,159) | 633,131 | (155,000) |
Write-off of excess inventory | 667,019 | 1,834,300 | 832,615 |
Change in warranty reserves | (1,172) | (62,107) | (79,633) |
Changes in assets and liabilities: | |||
Accounts receivable | (2,954,703) | (3,944,859) | 853,163 |
Contract assets and unbilled receivables | (2,600,671) | 2,168,581 | 865,474 |
Inventory | (1,332,139) | (792,165) | (1,656,196) |
Prepaid expenses, other current assets and other assets | (160,371) | 821,340 | 113,015 |
Accounts payable and accrued expenses | 5,227,011 | (163,084) | (1,208,848) |
Billings in excess of revenue earned | 695,565 | 397,121 | (4,742) |
Net cash used in operating activities | (4,417,157) | (21,026,854) | (28,103,782) |
Cash flows from investing activities: | |||
Proceeds from sale of marketable debt securities | 12,148,117 | 7,454,139 | 26,646,078 |
Purchase of marketable debt securities | (5,697,329) | ||
Equity investments purchase | (2,500,000) | (1,000,000) | |
Other assets | 193,186 | (41,031) | (8,373) |
Capital expenditures | (542,862) | (170,186) | (1,183,131) |
Net cash provided by investing activities | 11,798,441 | 4,742,922 | 18,757,245 |
Cash flows from financing activities: | |||
Sale of treasury stock, net of costs | 3,829,462 | ||
Sale of registered stock, net of costs | 8,038,529 | ||
Settlements of restricted stock for tax withholding obligations | (139,926) | (45,513) | (208,015) |
Distribution to noncontrolling interest holder | (699,105) | ||
Net cash provided by (used in) financing activities | 3,689,536 | 7,993,016 | (907,120) |
Effect of exchange rate changes on cash | 12,802 | (6,184) | (268,223) |
Net increase (decrease) in cash and cash equivalents | 11,083,622 | (8,297,100) | (10,521,880) |
Cash and cash equivalents at beginning of year | 6,029,247 | 14,326,347 | 24,848,227 |
Cash and cash equivalents at end of year | 17,112,869 | 6,029,247 | 14,326,347 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid | 1,374,000 | ||
Construction in progress included in accrued expenses | $ 257,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. As used in these notes, the terms “we,” “us,” “our,” “Kopin” and the “Company” mean Kopin Corporation and its subsidiaries, unless the context indicates another meaning. Fiscal Year The Company’s fiscal year ends on the last Saturday in December. The fiscal years ended December 26, 2020, December 28, 2019, and December 29, 2018 includes 52 weeks and are referred to as fiscal years 2020, 2019 and 2018, respectively, herein. Because our fiscal year ends on the last Saturday of December every seven years we have a fiscal year with 53 weeks. Principles of Consolidation The consolidated financial statements include the accounts of the Kopin Corporation, its wholly owned subsidiaries and a majority owned 80% Revenue Recognition The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Substantially all of our product revenues are either derived from the sales of components or subassemblies for use in defense applications or industrial headset systems. We also have development contracts for the design, manufacture and or modification of products for the U.S. government or prime contractors for the U.S. government and for customers that expects to sell into the industrial or consumer markets. The Company’s contracts with the U.S. government are typically subject to the Federal Acquisition Regulations (“FAR”) and are priced based on estimated or actual costs of producing goods. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer. Our fixed-price contracts with the U.S. government or other customers may result in revenue recognized in excess of amounts currently billed. We disclose the excess of revenues over amounts actually billed as Contract assets and unbilled receivables on the balance sheet. Amounts billed and due from our customers are classified as Accounts receivable on the balance sheets. In some instances, the U.S. government retains a small portion of the contract price until completion of the contract. The portion of the payments retained until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For contracts with the U.S. government and some commercial customers, we typically receive interim payments either as work progresses or by achieving certain milestones or based on a schedule in the contract. We recognize a liability for these advance payments in excess of revenue recognized and present it as Contract liabilities and billings in excess of revenue earned on the balance sheets. The advanced payment typically is not considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract. For industrial and consumer purchase orders, we typically receive payments within 30 to 60 days of shipments of the product, although for some purchase orders, we may require an advanced payment prior to shipment of the product. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) To determine the proper revenue recognition method for contracts with the same customer, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our development contracts and contracts with the U.S government, the customer contracts with us to provide a significant service of integrating a set of components into a single unit. Hence, the entire contract is accounted for as one performance obligation. Less frequently, however, we may promise to provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. In cases where we sell standard products, the observable standalone sales are used to determine the standalone selling price. The Company recognizes revenue from a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For certain contracts with the U.S. government, the Company recognizes revenue over time as we perform because of continuous transfer of control to the customer and the lack of an alternative use for the product. The continuous transfer of control to the customer is supported by liability clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. For contracts with commercial customers, while the contract may have a similar liability clause, our products historically have an alternative use and thus, revenue is recognized at a point in time. In situations where control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost approach to measure the extent of progress towards completion of the performance obligation for our contracts because we believe it best depicts the transfer of assets to the customer. Under the cost-to-cost measure approach, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Accounting for design, development and production contracts requires judgment relative to assessing risks, estimating contract revenues and costs, and making assumptions for schedule and technical issues. Due to the size and nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion is complicated and subject to many variables. Contract costs include material, labor and subcontracting costs, as well as an allocation of indirect costs. We have to make assumptions regarding the number of labor hours required to complete a task, the complexity of the work to be performed, the availability and cost of materials, and performance by our subcontractors. For contract change orders, claims or similar items, we apply judgment in estimating the amounts and assessing the potential for realization. These amounts are only included in contract value when they can be reliably estimated and realization is considered probable. If our estimate of total contract costs or our determination of whether the customer agrees that a milestone is achieved is incorrect, our revenue could be overstated or understated and the profits or loss reported could be subject to adjustment. For our commercial customers, the Company’s revenue is recognized when obligations under the terms of a contract with our customer is satisfied and the Company transfers control of the products or services, which is generally upon delivery to the customer. Revenue is recorded as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Provisions for product returns and allowances are reductions in the transaction price and are recorded in the same period as the related revenues. We analyze historical returns, current economic trends and changes in customer demand when evaluating the adequacy of sales returns and other allowances. Certain product sales are made to distributors under agreements allowing for a limited right of return on unsold products. Sales to distributors are primarily made for sales to the distributors’ customers and not for stocking of inventory. Sales, value add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The rights and benefits to the Company’s intellectual property are conveyed to certain customers through technology license agreements. These agreements may include other performance obligations including the sale of product to the customer. When the license is distinct from other obligations in the agreement, the Company treats the license and other performance obligations as separate performance obligations. Accordingly, the license is recognized at a point in time or over time based on the standalone selling price. The sale of materials is recognized at a point in time, which occurs with the transfer of control of the Company’s products or services. In certain instances, the Company is entitled to sales-based royalties under license agreements. These sales-based royalties are recognized when they are earned. Revenues from sales-based royalties under license agreements are shown under Research and development and other revenues on the Company’s Consolidated Statements of Operations. In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of operations for the fiscal year 2018 was as follows: Schedule of Restated Consolidated Statement of Operations Statement of Operations As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Net product revenues $ 19,211,115 $ 19,726,901 $ (515,786 ) Research and development and other revenues 5,253,890 5,600,066 (346,176 ) Cost of product revenues 15,831,441 16,809,343 (977,902 ) Net loss attributable to Kopin Corporation $ (34,533,542 ) $ (34,649,482 ) $ 115,940 See Note 15. Segments and Disaggregation of Revenue for additional information regarding the disaggregation of the Company’s revenue by major source. Contract Assets Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized from customer arrangements, including licensing, exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current. The Company classifies the noncurrent portion of contract assets under other assets in its condensed consolidated balance sheets. Contract Liabilities Contract liabilities consist of advance payments and billings in excess of revenue recognized for the contract. Performance Obligations The Company’s revenue recognition related to performance obligations that were satisfied at a point in time and over time were as follows: Schedule of Satisfaction of Performance Obligations Fiscal year ended 2020 2019 2018 Point in time 34 % 64 % 60 % Over time 66 % 36 % 40 % The value of remaining performance obligations represents the transaction price of orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity (“IDIQ”)). As of December 26, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 25.5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Research and Development Costs Research and development expenses are incurred in support of internal display product development programs or programs funded by agencies or prime contractors of the U.S. government and commercial partners. Research and development costs include staffing, purchases of materials and laboratory supplies, circuit design costs, fabrication and packaging of experimental display products, and overhead, and are expensed immediately. Cash and Cash Equivalents 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 Marketable debt securities consist primarily of commercial paper, medium-term corporate notes, and U.S. government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale at fair value in “Marketable debt securities, at fair value”. The Company records the amortization of premium and accretion of discounts on marketable debt securities in the results of operations. The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the fiscal years ended 2020, 2019 and 2018. Fair Value of Financial Instruments Financial instruments consist of marketable debt securities, accounts receivable and certain current liabilities. These assets (excluding marketable securities which are recorded at fair value) and liabilities are carried at cost, which approximates fair value. Inventory Inventories are stated at standard cost adjusted to approximate the lower of cost (first-in, first-out method) or net realizable value. The Company adjusts inventory carrying value for the estimated difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required. Inventory write-downs are inherently difficult to assess and dependent on market conditions. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis. Inventory consists of the following at December 26, 2020 and December 28, 2019: Schedule of Inventory 2020 2019 Raw materials $ 3,609,710 $ 2,630,156 Work-in-process 565,986 711,475 Finished goods 280,060 427,065 Total $ 4,455,756 $ 3,768,696 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, generally 3 10 Recognition and Measurement of Financial Assets and Liabilities We periodically make equity investments in private companies, accounted for as an equity investment, whose values are difficult to determine. The Company uses the measurement alternative for equity investments without readily determinable fair values which is often referred to as cost method investments. When assessing investments in private companies for impairment, we consider such factors as, among other things, the share price from the investee’s latest financing round, the performance of the investee in relation to its own operating targets and its business plan, the investee’s revenue and cost trends, the liquidity and cash position, including its cash burn rate and market acceptance of the investee’s products and services. Because these are private companies which we do not control we may not be able to obtain all of the information we would want in order to make a complete assessment of the investment on a timely basis. Accordingly, our estimates may be revised if other information becomes available at a later date. Product Warranty The Company generally sells products with a limited warranty of product quality and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated and accrues for estimated incurred but unidentified issues based on historical activity. Accrued warranty costs and warranty claims are not material in the periods presented. Extended Warranties The Company recognizes revenue from an extended warranty on the straight-line method over the life of the extended warranty, which is typically 12 to 18 months beyond the standard 12 month warranty. The Company classifies the current portion of extended warranties under contract liabilities and billings in excess of revenue earned and the noncurrent portion of extended warranties under contract liabilities, noncurrent in its consolidated balance sheets. The Company currently has approximately less than $ 10,000 Asset Retirement Obligations The Company recorded asset retirement obligations (“ARO”) liabilities of $ 0.3 Schedule of Changes in Asset Retirement Obligations 2020 2019 Beginning balance $ 261,883 $ 254,098 Exchange rate change 9,457 7,785 Ending balance $ 271,340 $ 261,883 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Income Taxes The consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides valuation allowances if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The 2017 Act imposes a U.S. tax on global intangible low taxed income (“GILTI”) that is earned by certain foreign affiliates owned by a U.S. shareholder. The Company has made a policy election to treat future taxes related to GILTI as a current period expense in the reporting period in which the tax is incurred. Foreign Currency Assets and liabilities of non-U.S. operations where the functional currency is other than the U.S. dollar are translated from the functional currency into U.S. dollars at year end exchange rates, and revenues and expenses are translated at average rates prevailing during the year. Resulting translation adjustments are accumulated as part of accumulated other comprehensive income. Transaction gains or losses are recognized in income or loss in the period in which they occur. Net Loss Per Share Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period less any unvested restricted shares. Diluted net loss per share is calculated using weighted-average shares outstanding and contingently issuable shares, less weighted-average shares reacquired during the period. The net outstanding shares are adjusted for the dilutive effect of shares issuable upon the assumed conversion of the Company’s common stock equivalents, which consist of outstanding stock options and unvested restricted stock. The following were not included in weighted-average common shares outstanding-diluted because they are anti-dilutive: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 2020 2019 2018 Nonvested restricted common stock 3,051,874 1,863,124 2,213,249 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk other than marketable securities consist principally of trade accounts receivable. Trade receivables are primarily derived from sales to manufacturers of consumer electronic devices and wireless components or defense applications. The Company sells its products to customers worldwide and generally does not require collateral. The Company maintains a reserve for potential credit losses. The Company primarily invests its excess cash in government backed and corporate debt securities that management believes to be of high credit worthiness, which bear lower levels of relative credit risk. The Company relies on rating agencies to ascertain the credit worthiness of its marketable securities and, where applicable, guarantees made by the Federal Deposit Insurance Company. Other-than-Temporary Impairments 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. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company further estimates the amount of OTTI resulting from a decline in the creditworthiness of the issuer (credit-related OTTI) and the amount of non credit-related OTTI. Non credit-related OTTI can be caused by such factors as market illiquidity. Credit-related OTTI is recognized in earnings while non credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The Company record a gain of approximately $ 0.2 Stock-Based Compensation The fair value of nonvested restricted common stock awards is generally the quoted price of the Company’s equity shares on the date of grant. The nonvested restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for periods ranging from one five The value of restricted stock grants that vest based on market conditions is computed on the date of grant using the Monte Carlo model. The fair value of stock option awards is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. There were no Comprehensive Loss Comprehensive loss is the total of net (loss) income and all other non-owner changes in equity including such items as unrealized holding (losses) gains on marketable equity and debt securities classified as available-for-sale and foreign currency translation adjustments. The components of accumulated other comprehensive income are as follows: Schedule of Accumulated Other Comprehensive Income Cumulative Translation Adjustment Unrealized holding (loss) gain on marketable securities Reclassifications of gain (loss) of marketable securities in net loss Accumulated Other Comprehensive Income Balance as of December 30, 2017 $ 3,231,706 $ 387,733 $ (54,660 ) $ 3,564,779 Changes during year (1,794,768 ) (264,949 ) 49,525 (2,010,192 ) Balance as of December 29, 2018 1,436,938 122,784 (5,135 ) 1,554,587 Changes during year (206,580 ) 446,533 (37,356 ) 202,597 Balance as of December 28, 2019 1,230,358 569,317 (42,491 ) 1,757,184 Changes during year (67,852 ) (183,870 ) (21,028 ) (272,750 ) Balance as of December 26, 2020 $ 1,162,506 $ 385,447 $ (63,519 ) $ 1,484,434 Goodwill We account for goodwill in accordance with ASC Topic 350. Under ASC Topic 350, goodwill is considered to have an indefinite life, and is carried at cost. Goodwill is not amortized, but is subject to an annual impairment test, as well as between annual tests when events or circumstances indicate that the carrying value may not be recoverable. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company’s policy is to perform impairment tests of goodwill at its reporting unit level when applicable. The goodwill valuations that are utilized to test these assets for impairment depend on a number of significant estimates and assumptions, including macroeconomic conditions, overall growth rates, competitive activities, cost containment, Company business plans and the discount rate applied to cash flows. As of December 26, 2020 and December 28, 2019, the ending balance of goodwill was zero Impairment of Long-Lived Assets The Company periodically reviews the carrying value of its long-lived assets to determine if facts and circumstances suggest that they may be impaired or that the amortization or depreciation period may need to be changed. The carrying value of a long-lived asset is considered impaired when the anticipated identifiable undiscounted cash flows from such asset are less than its carrying value. For assets that are to be held and used, impairment is measured based upon the amount by which the carrying amount of the asset exceeds its fair value. Leases Effective December 30, 2018 (the first day of fiscal year 2019), the Company adopted the requirements of the new lease standard Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 3.7 3.8 1.0 The Company determines if an arrangement is a lease or contains an embedded lease at inception. For lease arrangements with both lease and non-lease components (e.g., common-area maintenance costs), the Company accounts for the non-lease components separately. All of the Company’s leases are operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. The operating lease right-of-use assets also includes any initial direct costs and any lease payments made at or before the commencement date and is reduced for any unrestricted incentives received at or before the commencement date. For the majority of the Company’s leases, the discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate at the lease commencement date, as the implicit rate is not readily determinable. The discount rate represents a risk-adjusted rate on a secured basis and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods. Some of the Company’s leases include options to extend or terminate the lease. The Company includes these options in the recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in our ROU asset and lease liability) unless there is an economic, financial or business reason to do so. None of our leases include variable lease-related payments, such as escalation clauses based on the consumer price index (“CPI”) rates or residual guarantees. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that year. Following the release of ASU 2019-10 in November 2019, the new effective date, as long as the Company remains a smaller reporting company, would be annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact, if any, the adoption of ASU 2016-13 may have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 provide for simplified accounting to several income tax situations and removal of certain accounting exceptions. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those periods. The Company does not expect the impact of the adoption of ASU 2019-12 to be material to its consolidated financial statements. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2. Property, Plant and Equipment Property, plant and equipment consisted of the following at December 26, 2020 and December 28, 2019: Schedule of Property Plant and Equipment Useful Life 2020 2019 Equipment 3 5 $ 15,031,726 $ 16,344,040 Leasehold improvements Life of the lease 3,574,103 3,577,809 Furniture and fixtures 3 101,777 101,777 Equipment under construction 374,010 — 19,081,616 20,023,626 Accumulated depreciation and amortization (17,454,686 ) (18,550,285 ) Property, plant and equipment, net $ 1,626,930 $ 1,473,341 Depreciation expense for the fiscal years 2020, 2019 and 2018 was approximately $ 0.7 0.8 1.0 During the fiscal year 2018, the Company recorded asset impairment charges of $ 2.5 |
Leases
Leases | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
Leases | 3. Leases The Company enters into operating leases primarily for manufacturing, engineering, research, administration and sales facilities, and information technology (“IT”) equipment. At December 26, 2020 and December 28, 2019, the Company did not have any finance leases. Almost all of our future lease commitments, and related lease liability, relate to the Company’s facility leases. Some of the Company’s leases include options to extend or terminate the lease. Schedule of Lease Expense 2020 Operating lease cost $ 1,155,967 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) At December 26, 2020, the Company’s future lease payments under non-cancellable leases were as follows: Schedule of Future Lease Payment Under Non-cancellable Lease 2020 2021 1,065,879 2022 657,084 2023 201,333 Total future lease payments 1,924,296 Less imputed interest (115,546 ) Total 1,808,750 Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Information Related To Leases 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,196,386 Other information related to leases was as follows: 2020 Weighted Average Discount Rate—Operating Leases 6.15 % Weighted Average Remaining Lease Term—Operating Leases (in years) 2.22 Supplemental Information for Comparative Periods Prior to December 30, 2018, the Company accounted for its leases in accordance with Topic 840, Leases Amounts incurred under operating leases are recorded as rent expense on a straight-line basis. Total rent expense in the fiscal year ended 2018 was approximately $ 1.4 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 12 Months Ended |
Dec. 26, 2020 | |
Contract Assets And Liabilities | |
Contract Assets and Liabilities | 4. Contract Assets and Liabilities Net contract assets (liabilities) consisted of the following: Schedule of Contract With Customer, Asset And Liability December 26, 2020 December 28, 2019 $ Change % Change Contract assets and unbilled receivables $ 3,521,753 $ 921,082 $ 2,600,671 282 % Contract liabilities and billings in excess of revenue earned (1,493,847 ) (796,794 ) (696,053 ) 87 % Contract liabilities, noncurrent (5,069 ) (6,557 ) 1,488 (23 )% Net contract assets $ 2,022,837 $ 117,731 $ 1,905,106 1618 % The $ 1.9 The Company recognized revenue of approximately $ 0.6 0.8 The Company did not recognize impairment losses on our contract assets during the years ended December 26, 2020 and December 28, 2019. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 26, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | 5. Business Combinations In March 2017, we purchased 100% of the outstanding stock of NVIS, a producer of virtual reality systems for 3D applications. As part of the purchase, we paid $ 1.8 million in contingent consideration through March 28, 2020. There are no remaining contingent payment obligations related to the NVIS purchase as of December 26, 2020. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | 6. Goodwill and Intangibles A rollforward of the Company’s goodwill is as follows: Schedule of Goodwill Total Balance, December 29, 2018 $ 331,344 Impairment of goodwill (331,344 ) Balance, December 28, 2019 $ — In 2019, the Company performed a qualitative impairment analysis of goodwill for e-MDT operating unit and determined that the discounted cash flows were not in excess of the carrying value. As a result of the analysis, the Company recorded impairment of goodwill of $ 0.3 1.4 The Company recognized $ 0.9 2.5 2.5 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 26, 2020 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 7. Financial Instruments Fair Value Measurements Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. An investment is categorized as Level 3 if its fair value is based on assumptions developed by the Company about what a market participant would use in pricing the assets. The following table details the fair value measurements of the Company’s financial assets: Schedule of Fair Value Measurements of Financial Assets Fair Value Measurement at December 26, 2020 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 17,112,869 $ 17,112,869 $ — $ — U.S. government and agency backed securities 1,023,120 — 1,023,120 — Corporate debt 2,612,561 — 2,612,561 — Equity Investments 4,523,525 293,891 — 4,229,634 $ 25,272,075 $ 17,406,760 $ 3,635,681 $ 4,229,634 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Fair Value Measurement at December 28, 2019 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 6,029,247 $ 6,029,247 $ — $ — U.S. government and agency backed securities 8,296,870 — 8,296,870 — Corporate debt 7,456,127 — 7,456,127 — Equity Investments 4,537,159 386,711 — 4,150,448 $ 26,319,403 $ 6,415,958 $ 15,752,997 $ 4,150,448 The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value because of their short-term nature. If accrued liabilities were carried at fair value, these would be classified as Level 2 in the fair value hierarchy. Changes in Level 3 investments are as follows: Schedule of Fair Value, Liabilities Measured On Recurring Basis December 28, 2019 Net unrealized gains Impairment Charge Transfers in and or out of Level 3 December 26, 2020 Equity Investments $ 4,150,448 $ 259,186 $ (180,000 ) $ — $ 4,229,634 Equity Investments Equity investments rarely traded or not quoted will generally have less (or no) pricing observability and a higher degree of judgment utilized in measuring fair value. Initial measurement of equity investments occurs when an observable price for the equity investment is available. The Company adopted the measurement alternative for equity investments without readily determinable fair values (often referred to as cost method investments) on a prospective basis. As a result, these investments will be revalued upon occurrence of an observable price change for similar investments and for impairments. The Company has limited, if any, control over their governance, financial reporting and operations. The Company relies on the financial reporting provided by these investments in order to evaluate them for possible impairment. As a result, we face certain operating, financial and other risks relating to these investments, including risks related to the financial strength of the investments. The Company acquired an equity interest in a company in the first quarter of 2018. The Company made $ 1.9 0.3 0.1 11% 3.8 In 2017 the Company had a warrant to acquire up to 15% of the next round of equity offered by a customer as part of the licensing of technology to the customer. The Company used the pricing and terms of the qualified financing round by the customer in determining the value of its Series A warrant and recorded a gain of $ 2.0 million. The Company acquired an equity interest in the customer by exercising the Series A warrant into Series A shares in the second quarter of 2018 and recorded a loss of less than $ 0.1 million. In addition, the Company acquired shares of the customer’s Series B shares valued at $ 2.5 million based on the fair value of the Series B at the closing in May 2019. During the second quarter of 2019, the Company recognized a $ 0.8 million gain based on an observable price change for the Series A shares by using the customer’s Series B capital structure, pricing of the shares being offered and the liquidation preference of Series B. In the fourth quarter of 2019, the Company reviewed the financial condition and other factors of the customer and, as a result, the Company recorded an impairment charge of $ 5.2 million to reduce its investment in the customer to zero as of December 28, 2019. As of December 26, 2020, the Company owned an approximate 3% interest in this investment. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) On September 30, 2019 the Company entered into an Asset Purchase Agreement (the “Solos Purchase Agreement”) pursuant to which the Company sold and licensed certain assets of our Solos TM TM 20.0% 7.5 80.0% 0.6 0.6 0.4 Marketable Debt Securities The corporate debt consists of floating rate notes with a maturity that is over multiple years but has interest rates that 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 that 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. Investments in available-for-sale marketable debt securities are as follows at December 26, 2020 and December 28, 2019: Schedule of Available-for-sale Marketable Debt Securities Amortized Cost Unrealized Gains/(Losses) Fair Value 2020 2019 2020 2019 2020 2019 U.S. government and agency backed securities $ 1,003,941 $ 8,304,229 $ 19,179 $ (7,359 ) $ 1,023,120 $ 8,296,870 Corporate debt 2,603,704 7,459,298 8,857 (3,171 ) 2,612,561 7,456,127 Total $ 3,607,645 $ 15,763,527 $ 28,036 $ (10,530 ) $ 3,635,681 $ 15,752,997 The contractual maturity of the Company’s marketable debt securities is as follows at December 26, 2020: Schedule of Contractual Maturity Less than One to Total U.S. government and agency backed securities $ — $ 1,023,120 $ 1,023,120 Corporate debt 1,102,171 1,510,390 2,612,561 Total $ 1,102,171 $ 2,533,510 $ 3,635,681 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | 8. Stockholders’ Equity and Stock-Based Compensation Sale of Treasury Stock: During the three months and year ended December 26, 2020, the Company sold 1,949,101 3.8 120 . Registered Sale of Equity Securities On March 15, 2019, the Company sold 7.3 8.0 1.10 0.7 8.9 0.7 0.8 1.10 0.1 0.8 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Restricted Stock Awards In 2020, the Company adopted a 2020 Equity Incentive Plan (“2020 Equity Plan”) which authorized the issuance of shares of common stock to employees, non-employees, and the Board. The 2020 Equity Plan was a successor to the Company’s 2010 Equity Incentive Plan (“2010 Equity Plan”). The number of shares authorized under the 2020 Equity Plan was 4,000,000 shares of Company Stock. In addition, shares of the Company Stock underlying any outstanding award granted under the 2010 Equity Plan that expires, or is terminated, surrendered or forfeited for any reason without issuance of such shares shall be available for the award of new Grants under this Plan. As of December 26, 2020, the Company has approximately 2.4 million shares of common stock authorized and available for issuance under the Company’s 2020 Equity Plan. 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 periods ranging from one to five years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards that solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards that require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. Schedule of Non-vested Restricted Stock Activity Shares Weighted Average Grant Fair Value Outstanding at December 30, 2017 2,629,274 $ 3.31 Granted 1,549,000 2.25 Forfeited (872,025 ) 3.78 Vested (1,093,000 ) 3.05 Outstanding at December 29, 2018 2,213,249 2.51 Granted 645,000 0.57 Forfeited (355,625 ) 2.95 Vested (639,500 ) 2.98 Balance at December 28, 2019 1,863,124 1.60 Granted 2,381,000 1.42 Forfeited (153,595 ) 1.71 Vested (1,038,655 ) 0.96 Balance at December 26, 2020 3,051,874 $ 1.67 On December 31, 2020 (fiscal year beginning 2021), the Company amended the employment agreement with our CEO Dr. John Fan to expire on December 24, 2022 and as part of the amendment issued five tranches of 188,000 20 2.1 Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions Expected volatility 94.2 % Interest rate 0.2 % Expected life (years) 0.7 Dividend yield — % NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 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 fiscal years 2020, 2019 and 2018 (no tax benefits were recognized): Schedule of Stock-based Compensation Expense 2020 2019 2018 Cost of product revenues $ 113,517 $ 102,629 $ 418,605 Research and development 204,599 295,872 725,112 Selling, general and administrative 503,006 1,658,899 3,647,337 Total $ 821,122 $ 2,057,400 $ 4,791,054 Unrecognized compensation expense for non-vested restricted common stock as of December 26, 2020 totaled $ 2.0 four |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 26, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 9. Concentrations of Risk Ongoing credit evaluations of customers’ financial condition are performed and collateral, such as letters of credit, are generally not required. Customer’s accounts receivable balance as a percentage of total accounts receivable was as follows: Schedules of Concentration of Risk, by Risk Factor Percent of Gross Accounts Receivable Customer December 26, 2020 December 28, 2019 Collins Aerospace 45 % 23 % DRS Network & Imaging Systems, LLC 15 % 22 % Scott Safety * 12 % RealWear, Inc. * 10 % Note: The symbol “*” indicates that accounts receivables from that customer were less than 10% of the Company’s total accounts receivable. Sales to significant non-affiliated customers for fiscal years 2020, 2019 and 2018, as a percentage of total revenues, is as follows: Sales as a Percent of Total Revenue Fiscal Year Customer 2020 2019 2018 Defense Customers in Total 50 % 30 % 36 % General Dynamics * * 11 % DRS Network & Imaging Systems, LLC 35 % 17 % * Collins Aerospace 27 % * 20 % RealWear, Inc. * 20 % * Funded Research and Development Contracts 25 % 17 % 20 % Note: The symbol “*” indicates that sales to that customer were less than 10% of the Company’s total revenues. The caption “Defense Customers in Total” excludes research and development contracts. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The provision for income taxes from continuing operations consists of the following for the fiscal years indicated: Schedule of Components of Income Tax Expense (Benefit) Fiscal Year 2020 2019 2018 Current State $ — $ 4,000 $ 5,000 Foreign 129,000 104,000 25,000 Total current provision 129,000 108,000 30,000 Deferred Federal (1,075,000 ) (5,165,000 ) (7,307,000 ) State (321,000 ) (2,341,000 ) (360,000 ) Foreign (19,000 ) (56,000 ) 300,000 Change in valuation allowance 1,415,000 7,562,000 7,367,000 Total (benefit) deferred provision — — — Total provision for income taxes $ 129,000 $ 108,000 $ 30,000 The following table sets forth the changes in the Company’s balance of unrecognized tax benefits for the year ended: Schedule of Unrecognized Tax Benefit Total Unrecognized tax benefits at December 29, 2018 $ 394,000 Gross increases—prior year tax positions — Gross increases—current year tax positions - Unrecognized tax benefits at December 28, 2019 394,000 Unrecognized tax benefits at December 28, 2019 394,000 Gross increases—current year tax positions — Unrecognized tax benefits at December 26, 2020 $ 394,000 U.S. GAAP requires applying a ‘more likely than not’ threshold to the recognition and derecognition of uncertain tax positions either taken or expected to be taken by the Company’s income tax returns. The total amount of our gross tax liability for tax positions that may not be sustained under a ‘more likely than not’ threshold amounts to $ 0.4 0.9 0.8 Net operating losses were not utilized in 2020, 2019 and 2018 to offset federal and state taxes. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The actual income tax provision reported from operations are different than those which would have been computed by applying the federal statutory tax rate to loss before income tax provision. A reconciliation of income tax (benefit) provision from continuing operations as computed at the U.S. federal statutory income tax rate to the provision for income tax benefit is as follows: Schedule of Effective Income Tax Rate Reconciliation Fiscal Year 2020 2019 2018 Tax provision at federal statutory rates $ (925,000 ) $ (6,196,000 ) $ (7,515,000 ) State tax liability — 4,000 5,000 Foreign deferred tax rate differential (38,000 ) (64,000 ) (39,000 ) Foreign withholding — — 301,000 Outside basis in Kowon, net unremitted earnings — — (468,000 ) Permanent items 238,000 1,964,000 186,000 Increase in net state operating loss carryforwards (233,000 ) (1,985,000 ) (406,000 ) Utilization of net operating losses for U.K. research and development refund (151,000 ) (148,000 ) — Provision to tax return adjustments and tax rate change (180,000 ) 803,000 (76,000 ) Tax credits 9,000 (1,931,000 ) 239,000 Non-deductible 162M compensation limitations — — 13,000 Equity compensation (121,000 ) 16,000 290,000 Uncertain tax position for transfer pricing 129,000 105,000 91,000 Other, net (14,000 ) (22,000 ) 45,000 Change in valuation allowance 1,415,000 7,562,000 7,364,000 Total provision $ 129,000 $ 108,000 $ 30,000 Pretax foreign income from continuing operations was approximately $ 1 1.3 0.7 Schedule of Deferred Tax Assets and Liabilities Fiscal Year 2020 2019 Deferred tax liability: Foreign withholding liability $ (554,000 ) $ (525,000 ) Deferred tax assets: Federal net operating loss carryforwards 46,311,000 44,820,000 State net operating loss carryforwards 5,454,000 5,097,000 Foreign net operating loss carryforwards 1,319,000 1,293,000 Equity awards 549,000 428,000 Tax credits 9,153,000 9,161,000 Property, plant and equipment 577,000 524,000 Unrealized losses on investments 2,860,000 2,641,000 Other 757,000 1,603,000 Net deferred tax assets 66,426,000 65,042,000 Valuation allowance (66,980,000 ) (65,566,000 ) $ (554,000 ) $ (524,000 ) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The valuation allowance was approximately $ 67.0 65.6 Deferred tax assets and liabilities— As of December 26, 2020, the Company has available for tax purposes NOLs of $ 160.3 2038 60.1 The 2017 Tax Act imposes a mandatory transition tax on accumulated foreign earnings and eliminates U.S. taxes on foreign subsidiary distribution. As a result, earnings in foreign jurisdictions are available for distribution to the U.S. without incremental U.S. income taxes. Under the provisions of Section 382, certain substantial changes in Kopin’s ownership may limit in the future the amount of net operating loss carryforwards that could be used annually to offset future taxable income and income tax liability. 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 three to five 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. International jurisdictions have statutes of limitations generally ranging from three to twenty years after filing of the respective return. Years still open to examination by tax authorities in major jurisdictions include Korea (2009 onward), Japan (2009 onward), Hong Kong (2011 onward) and United Kingdom (2014 onward). The Company is not currently under examination in these jurisdictions. |
Accrued Warranty
Accrued Warranty | 12 Months Ended |
Dec. 26, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Accrued Warranty | 11. Accrued Warranty The Company warrants its products against defect for 12 months, however, for certain products a customer may purchase an extended warranty. Schedule of Accrued Warranty Fiscal Year Ended December 26, 2020 December 28, 2019 December 29, 2018 Beginning balance $ 509,000 $ 571,000 $ 649,000 Additions 435,000 471,000 159,000 Claim and reversals (436,000 ) (533,000 ) (237,000 ) Ending Balance $ 508,000 $ 509,000 $ 571,000 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 26, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 12. Employee Benefit Plan The Company has an employee benefit plan pursuant to Section 401(k) of the Internal Revenue Code of 1986, as amended. In 2020, the plan allowed employees to defer an amount of their annual compensation up to a current maximum of $ 19,500 26,000 50 6 0.3 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Commitments
Commitments | 12 Months Ended |
Dec. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 13. Commitments The Company entered into an agreement in August 2017 to acquire an approximate 3.5 35.0 5.0 |
Litigation
Litigation | 12 Months Ended |
Dec. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 14. Litigation The Company may engage in legal proceedings arising in the ordinary course of business. Claims, suits, investigations and proceedings are inherently uncertain and it is not possible to predict the ultimate outcome of such matters and our business, financial condition, results of operations or cash flows could be affected in any particular period. BlueRadios, Inc. v. Kopin Corporation, Civil Action No. 16-02052-JLK (D. Col.): On August 12, 2016, BlueRadios, Inc. (“BlueRadios”) filed a complaint in the U.S. District Court for the District of Colorado, alleging that the Company breached a contract between it and BlueRadios concerning an alleged joint venture between the Company and BlueRadios to design, develop and commercialize micro-display products with embedded wireless technology referred to as “Golden-i” breached the covenant of good faith and fair dealing associated with that contract, breached its fiduciary duty to BlueRadios, and misappropriated trade secrets owned by BlueRadios in violation of Colorado law (C.R.S. § 7-74-104(4)) and the Defend Trade Secrets Act (18 U.S.C. § 1836(b)(1)). BlueRadios further alleges that the Company was unjustly enriched by its alleged misconduct, BlueRadios is entitled to an accounting to determine the amount of profits obtained by the Company as a result of its alleged misconduct, and the inventorship on at least ten patents or patent applications owned by the Company need to be corrected to list BlueRadios’ employees as inventors and thereby list BlueRadios as co-assignees of the patents. BlueRadios seeks monetary, declaratory, and injunctive relief, including for alleged non-payment of engineering retainer fees. On October 11, 2016, the Company filed its Answer and Affirmative Defenses. The parties completed expert depositions on November 15, 2019. On December 2, 2019, the Company filed a Motion for Partial Summary Judgment requesting the Court dismiss counts 2-7 in their entirety and counts 1 and 8 in part. BlueRadios also filed a Motion for Partial Summary Judgment alleging it is the co-owner of U.S. Patent No. 8,909,296. Responses to the Motions for Partial Summary Judgment were filed on January 15, 2020, and replies were filed on February 19, 2020. On September 25, 2020, the Court denied BlueRadios’ Motion for Partial Summary Judgment. A trial date has not yet been set by the Court. The Company has not concluded a loss from this matter is probable; therefore, we have not recorded an accrual for litigation or claims related to this matter for the period ended December 26, 2020. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times when it is both probable that a loss has been incurred and the amount of the loss is reasonably estimable. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Segments and Disaggregation of
Segments and Disaggregation of Revenue | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Segments and Disaggregation of Revenue | 15. Segments and Disaggregation of Revenue Total long-lived assets by country at December 26, 2020 and December 28, 2019 were: Schedule of Long-lived Assets by Geographic Areas Total Long-lived Assets (in thousands) 2020 2019 U.S. $ 3,028 $ 3,647 United Kingdom 329 442 China 11 37 Japan 39 101 Total $ 3,407 $ 4,227 We disaggregate our revenue from contracts with customers by geographic location and by display application, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Total revenue by geographical area for the fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018: Schedule of Segment Information by Revenue Type 2020 2019 2018 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total U.S. $ 33,031 82 % $ 14,946 51 % 14,436 59 % Other Americas 101 — 134 — % 123 1 % Total Americas 33,132 82 % 15,080 51 % 14,559 60 % Asia-Pacific 5,798 15 % 11,768 40 % 6,916 28 % Europe 1,198 3 % 2,628 9 % 2,948 12 % Other — — % 42 — % 42 — % Total Revenues $ 40,128 100 % $ 29,519 100 % 24,465 100 % Total revenue by display application for the fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 was as follows: Schedule of Segment Reporting Information, by Segment (In thousands) 2020 2019 2018 Defense $ 20,231 $ 8,729 $ 8,724 Industrial 6,882 9,717 6,066 Consumer 852 1,777 4,146 R&D 10,123 4,983 5,254 Other 553 61 275 License and royalties 1,487 4,252 — Total Revenues $ 40,128 $ 29,519 $ 24,465 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Selected Quarterly Financial In
Selected Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (Unaudited) | 16. Selected Quarterly Financial Information (Unaudited) The following tables present Kopin’s quarterly operating results for the fiscal years ended December 26, 2020 and December 28, 2019. The information for each of these quarters is unaudited and has been prepared on the same basis as the audited consolidated financial statements. In the opinion of management, all necessary adjustments, consisting only of normal recurring adjustments, have been included to present fairly the unaudited consolidated quarterly results when read in conjunction with Kopin’s audited consolidated financial statements and related notes. These operating results are not necessarily indicative of the results of any future period. Quarterly Periods During Fiscal Year Ended December 26, 2020: Schedule of Quarterly Financial Information (in thousands, except per share data) Three months Three months Three months Three months Total revenue $ 7,878 $ 8,815 $ 9,513 $ 13,922 Gross profit (2) 271 1,891 1,662 3,295 (Loss) income from operations (3,541 ) (1,095 ) (1,108 ) 981 Net (loss) income attributable to the controlling interest (3,596 ) (1,122 ) (957 ) 1,263 Net (loss) income per share (1) Basic $ (0.04 ) $ (0.01 ) $ (0.01 ) $ 0.02 Diluted $ (0.04 ) $ (0.01 ) $ (0.01 ) $ 0.02 Weighted average number of common shares outstanding: Basic 82,536 82,569 82,596 81,689 Diluted 82,536 82,569 82,596 82,196 (1) Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. (2) Gross profit is defined as net product revenues less cost of product revenues. Quarterly Periods During Fiscal Year Ended December 28, 2019: (in thousands, except per share data) Three months 2019 Three months 2019 (3) Three months Three months Total revenue $ 5,543 $ 9,110 $ 6,139 $ 8,727 Gross profit (2) (1,263 ) (808 ) 265 1,188 Loss from operations (11,584 ) (4,838 ) (6,402 ) (3,556 ) Net loss attributable to the controlling interest (11,331 ) (4,260 ) (6,625 ) (7,290 ) Net loss per share (1) Basic and diluted $ (0.15 ) $ (0.05 ) $ (0.08 ) $ (0.09 ) Weighted average number of common shares outstanding: Basic and diluted 74,969 81,950 82,054 82,155 (1) Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. (2) Gross profit is defined as net product revenues less cost of product revenues. (3) Includes $ 3.5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 26, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions The Company may from time to time enter into agreements with shareholders, affiliates and other companies engaged in certain aspects of the display, electronics, optical and software industries as part of our business strategy. In addition, the wearable computing product market is relatively new and there may be other technologies the Company needs to purchase from affiliates in order to enhance its product offering. The Company and Goertek have entered into agreements to jointly develop and commercialize a range of technologies and wearable products. These include: a mutually exclusive supply and manufacturing arrangement for a certain display product for twenty four months after mass production begins; an agreement that provides the Company with the right of first refusal to invest in certain manufacturing capacity for certain products with Goertek; an agreement whereby Goertek will provide system level original equipment manufacturing services for the Company’s wearable products; an arrangement whereby the Company will supply display modules for Goertek’s virtual reality and augmented reality products; and other agreements related to promotion around certain products as well as providing designs relating to head mounted displays. The Company and RealWear, Inc. (“RealWear”) have entered into agreements where the Company has agreed to supply display modules to RealWear, and license certain intellectual property to RealWear. In conjunction with these agreements the Company received an equity interest in RealWear, one-time $ 1.5 3.5 2.5 1.0 0.25 2.5 2.8% 5.2 On September 30, 2019, the Company entered into an Asset Purchase Agreement (the “Solos Purchase Agreement”) with Solos Technology Limited (“Solos Technology”). Pursuant to the Solos Purchase Agreement, the Company sold and licensed to Solos Technology certain assets of our Solos TM TM 1,172,000 20.0% 10,000 283,000 10,000 As of December 26, 2020, the Company’s CEO and Chairman, Dr. John C.C. Fan, has an individual ownership interest of 15.7% 13.6% 37.5% 32.5% During fiscal years 2020, 2019 and 2018, the Company had the following transactions with related parties: Schedule of Transactions with Related Parties 2020 2019 2018 Revenue Purchases Revenue Purchases Revenue Purchases Goertek $ — $ — $ — $ 747,154 — 646,135 RealWear, Inc. 2,678,335 — 5,778,672 — 1,220,838 — $ 2,678,335 $ — $ 5,778,672 $ 747,154 1,220,838 646,135 At December 26, 2020 and December 28, 2019, the Company had the following receivables and payables with related parties: December 26, 2020 December 28, 2019 Receivables Payables Receivables Payables RealWear, Inc. 817,388 — 646,848 — |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events In Q1 2021, we sold 2.4 16 6.66 0.5 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 26, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 19. Valuation and Qualifying Accounts The following table sets forth activity in Kopin’s allowance for doubtful accounts: Schedule of Valuation and Qualifying Accounts Fiscal year ended: Balance at Additions Deductions Balance at December 29, 2018 $ 149,000 $ 268,000 $ (113,000 ) $ 304,000 December 28 2019 304,000 951,000 (317,000 ) 938,000 December 26, 2020 $ 938,000 $ 42,000 $ (805,000 ) $ 175,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the last Saturday in December. The fiscal years ended December 26, 2020, December 28, 2019, and December 29, 2018 includes 52 weeks and are referred to as fiscal years 2020, 2019 and 2018, respectively, herein. Because our fiscal year ends on the last Saturday of December every seven years we have a fiscal year with 53 weeks. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Kopin Corporation, its wholly owned subsidiaries and a majority owned 80% |
Revenue Recognition | Revenue Recognition The Company adopted ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) Substantially all of our product revenues are either derived from the sales of components or subassemblies for use in defense applications or industrial headset systems. We also have development contracts for the design, manufacture and or modification of products for the U.S. government or prime contractors for the U.S. government and for customers that expects to sell into the industrial or consumer markets. The Company’s contracts with the U.S. government are typically subject to the Federal Acquisition Regulations (“FAR”) and are priced based on estimated or actual costs of producing goods. The FAR provides guidance on the types of costs that are allowable in establishing prices for goods provided under U.S. government contracts. The pricing for non-U.S. government contracts is based on the specific negotiations with each customer. Our fixed-price contracts with the U.S. government or other customers may result in revenue recognized in excess of amounts currently billed. We disclose the excess of revenues over amounts actually billed as Contract assets and unbilled receivables on the balance sheet. Amounts billed and due from our customers are classified as Accounts receivable on the balance sheets. In some instances, the U.S. government retains a small portion of the contract price until completion of the contract. The portion of the payments retained until final contract settlement is not considered a significant financing component because the intent is to protect the customer. For contracts with the U.S. government and some commercial customers, we typically receive interim payments either as work progresses or by achieving certain milestones or based on a schedule in the contract. We recognize a liability for these advance payments in excess of revenue recognized and present it as Contract liabilities and billings in excess of revenue earned on the balance sheets. The advanced payment typically is not considered a significant financing component because it is used to meet working capital demands that can be higher in the early stages of a contract and to protect us from the other party failing to adequately complete some or all of its obligations under the contract. For industrial and consumer purchase orders, we typically receive payments within 30 to 60 days of shipments of the product, although for some purchase orders, we may require an advanced payment prior to shipment of the product. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) To determine the proper revenue recognition method for contracts with the same customer, we evaluate whether two or more contracts should be combined and accounted for as one single contract and whether the combined or single contract should be accounted for as more than one performance obligation. For most of our development contracts and contracts with the U.S government, the customer contracts with us to provide a significant service of integrating a set of components into a single unit. Hence, the entire contract is accounted for as one performance obligation. Less frequently, however, we may promise to provide distinct goods or services within a contract in which case we separate the contract into more than one performance obligation. If a contract is separated into more than one performance obligation, we allocate the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. In cases where we sell standard products, the observable standalone sales are used to determine the standalone selling price. The Company recognizes revenue from a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. For certain contracts with the U.S. government, the Company recognizes revenue over time as we perform because of continuous transfer of control to the customer and the lack of an alternative use for the product. The continuous transfer of control to the customer is supported by liability clauses in the contract that allow the U.S. government to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work in process. For contracts with commercial customers, while the contract may have a similar liability clause, our products historically have an alternative use and thus, revenue is recognized at a point in time. In situations where control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost approach to measure the extent of progress towards completion of the performance obligation for our contracts because we believe it best depicts the transfer of assets to the customer. Under the cost-to-cost measure approach, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recorded proportionally as costs are incurred. Accounting for design, development and production contracts requires judgment relative to assessing risks, estimating contract revenues and costs, and making assumptions for schedule and technical issues. Due to the size and nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion is complicated and subject to many variables. Contract costs include material, labor and subcontracting costs, as well as an allocation of indirect costs. We have to make assumptions regarding the number of labor hours required to complete a task, the complexity of the work to be performed, the availability and cost of materials, and performance by our subcontractors. For contract change orders, claims or similar items, we apply judgment in estimating the amounts and assessing the potential for realization. These amounts are only included in contract value when they can be reliably estimated and realization is considered probable. If our estimate of total contract costs or our determination of whether the customer agrees that a milestone is achieved is incorrect, our revenue could be overstated or understated and the profits or loss reported could be subject to adjustment. For our commercial customers, the Company’s revenue is recognized when obligations under the terms of a contract with our customer is satisfied and the Company transfers control of the products or services, which is generally upon delivery to the customer. Revenue is recorded as the amount of consideration we expect to receive in exchange for transferring goods or providing services. Provisions for product returns and allowances are reductions in the transaction price and are recorded in the same period as the related revenues. We analyze historical returns, current economic trends and changes in customer demand when evaluating the adequacy of sales returns and other allowances. Certain product sales are made to distributors under agreements allowing for a limited right of return on unsold products. Sales to distributors are primarily made for sales to the distributors’ customers and not for stocking of inventory. Sales, value add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The rights and benefits to the Company’s intellectual property are conveyed to certain customers through technology license agreements. These agreements may include other performance obligations including the sale of product to the customer. When the license is distinct from other obligations in the agreement, the Company treats the license and other performance obligations as separate performance obligations. Accordingly, the license is recognized at a point in time or over time based on the standalone selling price. The sale of materials is recognized at a point in time, which occurs with the transfer of control of the Company’s products or services. In certain instances, the Company is entitled to sales-based royalties under license agreements. These sales-based royalties are recognized when they are earned. Revenues from sales-based royalties under license agreements are shown under Research and development and other revenues on the Company’s Consolidated Statements of Operations. In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of operations for the fiscal year 2018 was as follows: Schedule of Restated Consolidated Statement of Operations Statement of Operations As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Net product revenues $ 19,211,115 $ 19,726,901 $ (515,786 ) Research and development and other revenues 5,253,890 5,600,066 (346,176 ) Cost of product revenues 15,831,441 16,809,343 (977,902 ) Net loss attributable to Kopin Corporation $ (34,533,542 ) $ (34,649,482 ) $ 115,940 See Note 15. Segments and Disaggregation of Revenue for additional information regarding the disaggregation of the Company’s revenue by major source. |
Contract Assets | Contract Assets Contract assets include unbilled amounts typically resulting from sales under contracts when the cost-to-cost method of revenue recognition is utilized and revenue recognized from customer arrangements, including licensing, exceeds the amount billed to the customer, and right to payment is not just subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are generally classified as current. The Company classifies the noncurrent portion of contract assets under other assets in its condensed consolidated balance sheets. |
Contract Liabilities | Contract Liabilities Contract liabilities consist of advance payments and billings in excess of revenue recognized for the contract. |
Performance Obligations | Performance Obligations The Company’s revenue recognition related to performance obligations that were satisfied at a point in time and over time were as follows: Schedule of Satisfaction of Performance Obligations Fiscal year ended 2020 2019 2018 Point in time 34 % 64 % 60 % Over time 66 % 36 % 40 % The value of remaining performance obligations represents the transaction price of orders for which work has not been performed and excludes unexercised contract options and potential orders under ordering-type contracts (e.g., indefinite-delivery, indefinite-quantity (“IDIQ”)). As of December 26, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 25.5 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Research and Development Costs | Research and Development Costs Research and development expenses are incurred in support of internal display product development programs or programs funded by agencies or prime contractors of the U.S. government and commercial partners. Research and development costs include staffing, purchases of materials and laboratory supplies, circuit design costs, fabrication and packaging of experimental display products, and overhead, and are expensed immediately. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 | Marketable Debt Securities Marketable debt securities consist primarily of commercial paper, medium-term corporate notes, and U.S. government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale at fair value in “Marketable debt securities, at fair value”. The Company records the amortization of premium and accretion of discounts on marketable debt securities in the results of operations. The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the fiscal years ended 2020, 2019 and 2018. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Financial instruments consist of marketable debt securities, accounts receivable and certain current liabilities. These assets (excluding marketable securities which are recorded at fair value) and liabilities are carried at cost, which approximates fair value. |
Inventory | Inventory Inventories are stated at standard cost adjusted to approximate the lower of cost (first-in, first-out method) or net realizable value. The Company adjusts inventory carrying value for the estimated difference between the cost of inventory and the estimated net realizable value based upon assumptions about future demand and market conditions. The Company fully reserves for inventories and non-cancellable purchase orders for inventory deemed obsolete. The Company performs periodic reviews of inventory items to identify excess inventories on hand by comparing on-hand balances to anticipated usage using recent historical activity as well as anticipated or forecasted demand. If estimates of customer demand diminish further or market conditions become less favorable than those projected by the Company, additional inventory adjustments may be required. Inventory write-downs are inherently difficult to assess and dependent on market conditions. At the point of a loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established basis. Inventory consists of the following at December 26, 2020 and December 28, 2019: Schedule of Inventory 2020 2019 Raw materials $ 3,609,710 $ 2,630,156 Work-in-process 565,986 711,475 Finished goods 280,060 427,065 Total $ 4,455,756 $ 3,768,696 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation and amortization are provided using the straight-line method over the estimated useful lives of the assets, generally 3 10 |
Recognition and Measurement of Financial Assets and Liabilities | Recognition and Measurement of Financial Assets and Liabilities We periodically make equity investments in private companies, accounted for as an equity investment, whose values are difficult to determine. The Company uses the measurement alternative for equity investments without readily determinable fair values which is often referred to as cost method investments. When assessing investments in private companies for impairment, we consider such factors as, among other things, the share price from the investee’s latest financing round, the performance of the investee in relation to its own operating targets and its business plan, the investee’s revenue and cost trends, the liquidity and cash position, including its cash burn rate and market acceptance of the investee’s products and services. Because these are private companies which we do not control we may not be able to obtain all of the information we would want in order to make a complete assessment of the investment on a timely basis. Accordingly, our estimates may be revised if other information becomes available at a later date. |
Product Warranty | Product Warranty The Company generally sells products with a limited warranty of product quality and a limited indemnification of customers against intellectual property infringement claims related to the Company’s products. The Company accrues for known warranty and indemnification issues if a loss is probable and can be reasonably estimated and accrues for estimated incurred but unidentified issues based on historical activity. Accrued warranty costs and warranty claims are not material in the periods presented. |
Extended Warranties | Extended Warranties The Company recognizes revenue from an extended warranty on the straight-line method over the life of the extended warranty, which is typically 12 to 18 months beyond the standard 12 month warranty. The Company classifies the current portion of extended warranties under contract liabilities and billings in excess of revenue earned and the noncurrent portion of extended warranties under contract liabilities, noncurrent in its consolidated balance sheets. The Company currently has approximately less than $ 10,000 |
Asset Retirement Obligations | Asset Retirement Obligations The Company recorded asset retirement obligations (“ARO”) liabilities of $ 0.3 Schedule of Changes in Asset Retirement Obligations 2020 2019 Beginning balance $ 261,883 $ 254,098 Exchange rate change 9,457 7,785 Ending balance $ 271,340 $ 261,883 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Income Taxes | Income Taxes The consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company provides valuation allowances if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The 2017 Act imposes a U.S. tax on global intangible low taxed income (“GILTI”) that is earned by certain foreign affiliates owned by a U.S. shareholder. The Company has made a policy election to treat future taxes related to GILTI as a current period expense in the reporting period in which the tax is incurred. |
Foreign Currency | Foreign Currency Assets and liabilities of non-U.S. operations where the functional currency is other than the U.S. dollar are translated from the functional currency into U.S. dollars at year end exchange rates, and revenues and expenses are translated at average rates prevailing during the year. Resulting translation adjustments are accumulated as part of accumulated other comprehensive income. Transaction gains or losses are recognized in income or loss in the period in which they occur. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed using the weighted-average number of shares of common stock outstanding during the period less any unvested restricted shares. Diluted net loss per share is calculated using weighted-average shares outstanding and contingently issuable shares, less weighted-average shares reacquired during the period. The net outstanding shares are adjusted for the dilutive effect of shares issuable upon the assumed conversion of the Company’s common stock equivalents, which consist of outstanding stock options and unvested restricted stock. The following were not included in weighted-average common shares outstanding-diluted because they are anti-dilutive: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 2020 2019 2018 Nonvested restricted common stock 3,051,874 1,863,124 2,213,249 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk other than marketable securities consist principally of trade accounts receivable. Trade receivables are primarily derived from sales to manufacturers of consumer electronic devices and wireless components or defense applications. The Company sells its products to customers worldwide and generally does not require collateral. The Company maintains a reserve for potential credit losses. The Company primarily invests its excess cash in government backed and corporate debt securities that management believes to be of high credit worthiness, which bear lower levels of relative credit risk. The Company relies on rating agencies to ascertain the credit worthiness of its marketable securities and, where applicable, guarantees made by the Federal Deposit Insurance Company. |
Other-than-Temporary Impairments | Other-than-Temporary Impairments 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. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company further estimates the amount of OTTI resulting from a decline in the creditworthiness of the issuer (credit-related OTTI) and the amount of non credit-related OTTI. Non credit-related OTTI can be caused by such factors as market illiquidity. Credit-related OTTI is recognized in earnings while non credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (loss). The Company record a gain of approximately $ 0.2 |
Stock-Based Compensation | Stock-Based Compensation The fair value of nonvested restricted common stock awards is generally the quoted price of the Company’s equity shares on the date of grant. The nonvested restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for periods ranging from one five The value of restricted stock grants that vest based on market conditions is computed on the date of grant using the Monte Carlo model. The fair value of stock option awards is estimated on the date of grant using the Black-Scholes-Merton option-pricing model. There were no |
Comprehensive Loss | Comprehensive Loss Comprehensive loss is the total of net (loss) income and all other non-owner changes in equity including such items as unrealized holding (losses) gains on marketable equity and debt securities classified as available-for-sale and foreign currency translation adjustments. The components of accumulated other comprehensive income are as follows: Schedule of Accumulated Other Comprehensive Income Cumulative Translation Adjustment Unrealized holding (loss) gain on marketable securities Reclassifications of gain (loss) of marketable securities in net loss Accumulated Other Comprehensive Income Balance as of December 30, 2017 $ 3,231,706 $ 387,733 $ (54,660 ) $ 3,564,779 Changes during year (1,794,768 ) (264,949 ) 49,525 (2,010,192 ) Balance as of December 29, 2018 1,436,938 122,784 (5,135 ) 1,554,587 Changes during year (206,580 ) 446,533 (37,356 ) 202,597 Balance as of December 28, 2019 1,230,358 569,317 (42,491 ) 1,757,184 Changes during year (67,852 ) (183,870 ) (21,028 ) (272,750 ) Balance as of December 26, 2020 $ 1,162,506 $ 385,447 $ (63,519 ) $ 1,484,434 |
Goodwill | Goodwill We account for goodwill in accordance with ASC Topic 350. Under ASC Topic 350, goodwill is considered to have an indefinite life, and is carried at cost. Goodwill is not amortized, but is subject to an annual impairment test, as well as between annual tests when events or circumstances indicate that the carrying value may not be recoverable. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company’s policy is to perform impairment tests of goodwill at its reporting unit level when applicable. The goodwill valuations that are utilized to test these assets for impairment depend on a number of significant estimates and assumptions, including macroeconomic conditions, overall growth rates, competitive activities, cost containment, Company business plans and the discount rate applied to cash flows. As of December 26, 2020 and December 28, 2019, the ending balance of goodwill was zero |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company periodically reviews the carrying value of its long-lived assets to determine if facts and circumstances suggest that they may be impaired or that the amortization or depreciation period may need to be changed. The carrying value of a long-lived asset is considered impaired when the anticipated identifiable undiscounted cash flows from such asset are less than its carrying value. For assets that are to be held and used, impairment is measured based upon the amount by which the carrying amount of the asset exceeds its fair value. |
Leases | Leases Effective December 30, 2018 (the first day of fiscal year 2019), the Company adopted the requirements of the new lease standard Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 3.7 3.8 1.0 The Company determines if an arrangement is a lease or contains an embedded lease at inception. For lease arrangements with both lease and non-lease components (e.g., common-area maintenance costs), the Company accounts for the non-lease components separately. All of the Company’s leases are operating leases. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future lease payments over the lease term at the commencement date. The operating lease right-of-use assets also includes any initial direct costs and any lease payments made at or before the commencement date and is reduced for any unrestricted incentives received at or before the commencement date. For the majority of the Company’s leases, the discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate at the lease commencement date, as the implicit rate is not readily determinable. The discount rate represents a risk-adjusted rate on a secured basis and is the rate at which the Company would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods. Some of the Company’s leases include options to extend or terminate the lease. The Company includes these options in the recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in our ROU asset and lease liability) unless there is an economic, financial or business reason to do so. None of our leases include variable lease-related payments, such as escalation clauses based on the consumer price index (“CPI”) rates or residual guarantees. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in ASU 2016-13 will provide more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU is effective for annual reporting periods beginning after December 15, 2019, including interim periods within that year. Following the release of ASU 2019-10 in November 2019, the new effective date, as long as the Company remains a smaller reporting company, would be annual reporting periods beginning after December 15, 2022. The Company is currently evaluating the impact, if any, the adoption of ASU 2016-13 may have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The amendments in ASU 2019-12 provide for simplified accounting to several income tax situations and removal of certain accounting exceptions. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim periods within those periods. The Company does not expect the impact of the adoption of ASU 2019-12 to be material to its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Restated Consolidated Statement of Operations | In accordance with the new revenue standard requirements, the impact of adoption on the Company’s consolidated statement of operations for the fiscal year 2018 was as follows: Schedule of Restated Consolidated Statement of Operations Statement of Operations As Reported Balances Without Adoption of Topic 606 Effect of Change Higher/(Lower) Net product revenues $ 19,211,115 $ 19,726,901 $ (515,786 ) Research and development and other revenues 5,253,890 5,600,066 (346,176 ) Cost of product revenues 15,831,441 16,809,343 (977,902 ) Net loss attributable to Kopin Corporation $ (34,533,542 ) $ (34,649,482 ) $ 115,940 |
Schedule of Satisfaction of Performance Obligations | The Company’s revenue recognition related to performance obligations that were satisfied at a point in time and over time were as follows: Schedule of Satisfaction of Performance Obligations Fiscal year ended 2020 2019 2018 Point in time 34 % 64 % 60 % Over time 66 % 36 % 40 % |
Schedule of Inventory | Inventory consists of the following at December 26, 2020 and December 28, 2019: Schedule of Inventory 2020 2019 Raw materials $ 3,609,710 $ 2,630,156 Work-in-process 565,986 711,475 Finished goods 280,060 427,065 Total $ 4,455,756 $ 3,768,696 |
Schedule of Changes in Asset Retirement Obligations | The Company recorded asset retirement obligations (“ARO”) liabilities of $ 0.3 Schedule of Changes in Asset Retirement Obligations 2020 2019 Beginning balance $ 261,883 $ 254,098 Exchange rate change 9,457 7,785 Ending balance $ 271,340 $ 261,883 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following were not included in weighted-average common shares outstanding-diluted because they are anti-dilutive: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share 2020 2019 2018 Nonvested restricted common stock 3,051,874 1,863,124 2,213,249 |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income are as follows: Schedule of Accumulated Other Comprehensive Income Cumulative Translation Adjustment Unrealized holding (loss) gain on marketable securities Reclassifications of gain (loss) of marketable securities in net loss Accumulated Other Comprehensive Income Balance as of December 30, 2017 $ 3,231,706 $ 387,733 $ (54,660 ) $ 3,564,779 Changes during year (1,794,768 ) (264,949 ) 49,525 (2,010,192 ) Balance as of December 29, 2018 1,436,938 122,784 (5,135 ) 1,554,587 Changes during year (206,580 ) 446,533 (37,356 ) 202,597 Balance as of December 28, 2019 1,230,358 569,317 (42,491 ) 1,757,184 Changes during year (67,852 ) (183,870 ) (21,028 ) (272,750 ) Balance as of December 26, 2020 $ 1,162,506 $ 385,447 $ (63,519 ) $ 1,484,434 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | Property, plant and equipment consisted of the following at December 26, 2020 and December 28, 2019: Schedule of Property Plant and Equipment Useful Life 2020 2019 Equipment 3 5 $ 15,031,726 $ 16,344,040 Leasehold improvements Life of the lease 3,574,103 3,577,809 Furniture and fixtures 3 101,777 101,777 Equipment under construction 374,010 — 19,081,616 20,023,626 Accumulated depreciation and amortization (17,454,686 ) (18,550,285 ) Property, plant and equipment, net $ 1,626,930 $ 1,473,341 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
Schedule of Lease Expense | Schedule of Lease Expense 2020 Operating lease cost $ 1,155,967 |
Schedule of Future Lease Payment Under Non-cancellable Lease | At December 26, 2020, the Company’s future lease payments under non-cancellable leases were as follows: Schedule of Future Lease Payment Under Non-cancellable Lease 2020 2021 1,065,879 2022 657,084 2023 201,333 Total future lease payments 1,924,296 Less imputed interest (115,546 ) Total 1,808,750 |
Schedule of Supplemental Information Related To Leases | Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Information Related To Leases 2020 Cash paid for amounts included in the measurement of operating lease liabilities $ 1,196,386 Other information related to leases was as follows: 2020 Weighted Average Discount Rate—Operating Leases 6.15 % Weighted Average Remaining Lease Term—Operating Leases (in years) 2.22 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Contract Assets And Liabilities | |
Schedule of Contract With Customer, Asset And Liability | Net contract assets (liabilities) consisted of the following: Schedule of Contract With Customer, Asset And Liability December 26, 2020 December 28, 2019 $ Change % Change Contract assets and unbilled receivables $ 3,521,753 $ 921,082 $ 2,600,671 282 % Contract liabilities and billings in excess of revenue earned (1,493,847 ) (796,794 ) (696,053 ) 87 % Contract liabilities, noncurrent (5,069 ) (6,557 ) 1,488 (23 )% Net contract assets $ 2,022,837 $ 117,731 $ 1,905,106 1618 % |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | A rollforward of the Company’s goodwill is as follows: Schedule of Goodwill Total Balance, December 29, 2018 $ 331,344 Impairment of goodwill (331,344 ) Balance, December 28, 2019 $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Investments, All Other Investments [Abstract] | |
Schedule of Fair Value Measurements of Financial Assets | The following table details the fair value measurements of the Company’s financial assets: Schedule of Fair Value Measurements of Financial Assets Fair Value Measurement at December 26, 2020 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 17,112,869 $ 17,112,869 $ — $ — U.S. government and agency backed securities 1,023,120 — 1,023,120 — Corporate debt 2,612,561 — 2,612,561 — Equity Investments 4,523,525 293,891 — 4,229,634 $ 25,272,075 $ 17,406,760 $ 3,635,681 $ 4,229,634 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Fair Value Measurement at December 28, 2019 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 6,029,247 $ 6,029,247 $ — $ — U.S. government and agency backed securities 8,296,870 — 8,296,870 — Corporate debt 7,456,127 — 7,456,127 — Equity Investments 4,537,159 386,711 — 4,150,448 $ 26,319,403 $ 6,415,958 $ 15,752,997 $ 4,150,448 |
Schedule of Fair Value, Liabilities Measured On Recurring Basis | Changes in Level 3 investments are as follows: Schedule of Fair Value, Liabilities Measured On Recurring Basis December 28, 2019 Net unrealized gains Impairment Charge Transfers in and or out of Level 3 December 26, 2020 Equity Investments $ 4,150,448 $ 259,186 $ (180,000 ) $ — $ 4,229,634 |
Schedule of Available-for-sale Marketable Debt Securities | Schedule of Available-for-sale Marketable Debt Securities Amortized Cost Unrealized Gains/(Losses) Fair Value 2020 2019 2020 2019 2020 2019 U.S. government and agency backed securities $ 1,003,941 $ 8,304,229 $ 19,179 $ (7,359 ) $ 1,023,120 $ 8,296,870 Corporate debt 2,603,704 7,459,298 8,857 (3,171 ) 2,612,561 7,456,127 Total $ 3,607,645 $ 15,763,527 $ 28,036 $ (10,530 ) $ 3,635,681 $ 15,752,997 |
Schedule of Contractual Maturity | The contractual maturity of the Company’s marketable debt securities is as follows at December 26, 2020: Schedule of Contractual Maturity Less than One to Total U.S. government and agency backed securities $ — $ 1,023,120 $ 1,023,120 Corporate debt 1,102,171 1,510,390 2,612,561 Total $ 1,102,171 $ 2,533,510 $ 3,635,681 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Schedule of Non-vested Restricted Stock Activity | Schedule of Non-vested Restricted Stock Activity Shares Weighted Average Grant Fair Value Outstanding at December 30, 2017 2,629,274 $ 3.31 Granted 1,549,000 2.25 Forfeited (872,025 ) 3.78 Vested (1,093,000 ) 3.05 Outstanding at December 29, 2018 2,213,249 2.51 Granted 645,000 0.57 Forfeited (355,625 ) 2.95 Vested (639,500 ) 2.98 Balance at December 28, 2019 1,863,124 1.60 Granted 2,381,000 1.42 Forfeited (153,595 ) 1.71 Vested (1,038,655 ) 0.96 Balance at December 26, 2020 3,051,874 $ 1.67 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions Expected volatility 94.2 % Interest rate 0.2 % Expected life (years) 0.7 Dividend yield — % |
Schedule of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock awards for the fiscal years 2020, 2019 and 2018 (no tax benefits were recognized): Schedule of Stock-based Compensation Expense 2020 2019 2018 Cost of product revenues $ 113,517 $ 102,629 $ 418,605 Research and development 204,599 295,872 725,112 Selling, general and administrative 503,006 1,658,899 3,647,337 Total $ 821,122 $ 2,057,400 $ 4,791,054 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Ongoing credit evaluations of customers’ financial condition are performed and collateral, such as letters of credit, are generally not required. Customer’s accounts receivable balance as a percentage of total accounts receivable was as follows: Schedules of Concentration of Risk, by Risk Factor Percent of Gross Accounts Receivable Customer December 26, 2020 December 28, 2019 Collins Aerospace 45 % 23 % DRS Network & Imaging Systems, LLC 15 % 22 % Scott Safety * 12 % RealWear, Inc. * 10 % Note: The symbol “*” indicates that accounts receivables from that customer were less than 10% of the Company’s total accounts receivable. Sales to significant non-affiliated customers for fiscal years 2020, 2019 and 2018, as a percentage of total revenues, is as follows: Sales as a Percent of Total Revenue Fiscal Year Customer 2020 2019 2018 Defense Customers in Total 50 % 30 % 36 % General Dynamics * * 11 % DRS Network & Imaging Systems, LLC 35 % 17 % * Collins Aerospace 27 % * 20 % RealWear, Inc. * 20 % * Funded Research and Development Contracts 25 % 17 % 20 % Note: The symbol “*” indicates that sales to that customer were less than 10% of the Company’s total revenues. The caption “Defense Customers in Total” excludes research and development contracts. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes from continuing operations consists of the following for the fiscal years indicated: Schedule of Components of Income Tax Expense (Benefit) Fiscal Year 2020 2019 2018 Current State $ — $ 4,000 $ 5,000 Foreign 129,000 104,000 25,000 Total current provision 129,000 108,000 30,000 Deferred Federal (1,075,000 ) (5,165,000 ) (7,307,000 ) State (321,000 ) (2,341,000 ) (360,000 ) Foreign (19,000 ) (56,000 ) 300,000 Change in valuation allowance 1,415,000 7,562,000 7,367,000 Total (benefit) deferred provision — — — Total provision for income taxes $ 129,000 $ 108,000 $ 30,000 |
Schedule of Unrecognized Tax Benefit | The following table sets forth the changes in the Company’s balance of unrecognized tax benefits for the year ended: Schedule of Unrecognized Tax Benefit Total Unrecognized tax benefits at December 29, 2018 $ 394,000 Gross increases—prior year tax positions — Gross increases—current year tax positions - Unrecognized tax benefits at December 28, 2019 394,000 Unrecognized tax benefits at December 28, 2019 394,000 Gross increases—current year tax positions — Unrecognized tax benefits at December 26, 2020 $ 394,000 |
Schedule of Effective Income Tax Rate Reconciliation | The actual income tax provision reported from operations are different than those which would have been computed by applying the federal statutory tax rate to loss before income tax provision. A reconciliation of income tax (benefit) provision from continuing operations as computed at the U.S. federal statutory income tax rate to the provision for income tax benefit is as follows: Schedule of Effective Income Tax Rate Reconciliation Fiscal Year 2020 2019 2018 Tax provision at federal statutory rates $ (925,000 ) $ (6,196,000 ) $ (7,515,000 ) State tax liability — 4,000 5,000 Foreign deferred tax rate differential (38,000 ) (64,000 ) (39,000 ) Foreign withholding — — 301,000 Outside basis in Kowon, net unremitted earnings — — (468,000 ) Permanent items 238,000 1,964,000 186,000 Increase in net state operating loss carryforwards (233,000 ) (1,985,000 ) (406,000 ) Utilization of net operating losses for U.K. research and development refund (151,000 ) (148,000 ) — Provision to tax return adjustments and tax rate change (180,000 ) 803,000 (76,000 ) Tax credits 9,000 (1,931,000 ) 239,000 Non-deductible 162M compensation limitations — — 13,000 Equity compensation (121,000 ) 16,000 290,000 Uncertain tax position for transfer pricing 129,000 105,000 91,000 Other, net (14,000 ) (22,000 ) 45,000 Change in valuation allowance 1,415,000 7,562,000 7,364,000 Total provision $ 129,000 $ 108,000 $ 30,000 |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities Fiscal Year 2020 2019 Deferred tax liability: Foreign withholding liability $ (554,000 ) $ (525,000 ) Deferred tax assets: Federal net operating loss carryforwards 46,311,000 44,820,000 State net operating loss carryforwards 5,454,000 5,097,000 Foreign net operating loss carryforwards 1,319,000 1,293,000 Equity awards 549,000 428,000 Tax credits 9,153,000 9,161,000 Property, plant and equipment 577,000 524,000 Unrealized losses on investments 2,860,000 2,641,000 Other 757,000 1,603,000 Net deferred tax assets 66,426,000 65,042,000 Valuation allowance (66,980,000 ) (65,566,000 ) $ (554,000 ) $ (524,000 ) |
Accrued Warranty (Tables)
Accrued Warranty (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Accrued Warranty | Schedule of Accrued Warranty Fiscal Year Ended December 26, 2020 December 28, 2019 December 29, 2018 Beginning balance $ 509,000 $ 571,000 $ 649,000 Additions 435,000 471,000 159,000 Claim and reversals (436,000 ) (533,000 ) (237,000 ) Ending Balance $ 508,000 $ 509,000 $ 571,000 |
Segments and Disaggregation o_2
Segments and Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Geographic Areas | Total long-lived assets by country at December 26, 2020 and December 28, 2019 were: Schedule of Long-lived Assets by Geographic Areas Total Long-lived Assets (in thousands) 2020 2019 U.S. $ 3,028 $ 3,647 United Kingdom 329 442 China 11 37 Japan 39 101 Total $ 3,407 $ 4,227 |
Schedule of Segment Information by Revenue Type | Total revenue by geographical area for the fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018: Schedule of Segment Information by Revenue Type 2020 2019 2018 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total U.S. $ 33,031 82 % $ 14,946 51 % 14,436 59 % Other Americas 101 — 134 — % 123 1 % Total Americas 33,132 82 % 15,080 51 % 14,559 60 % Asia-Pacific 5,798 15 % 11,768 40 % 6,916 28 % Europe 1,198 3 % 2,628 9 % 2,948 12 % Other — — % 42 — % 42 — % Total Revenues $ 40,128 100 % $ 29,519 100 % 24,465 100 % |
Schedule of Segment Reporting Information, by Segment | Total revenue by display application for the fiscal years ended December 26, 2020, December 28, 2019 and December 29, 2018 was as follows: Schedule of Segment Reporting Information, by Segment (In thousands) 2020 2019 2018 Defense $ 20,231 $ 8,729 $ 8,724 Industrial 6,882 9,717 6,066 Consumer 852 1,777 4,146 R&D 10,123 4,983 5,254 Other 553 61 275 License and royalties 1,487 4,252 — Total Revenues $ 40,128 $ 29,519 $ 24,465 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly Periods During Fiscal Year Ended December 26, 2020: Schedule of Quarterly Financial Information (in thousands, except per share data) Three months Three months Three months Three months Total revenue $ 7,878 $ 8,815 $ 9,513 $ 13,922 Gross profit (2) 271 1,891 1,662 3,295 (Loss) income from operations (3,541 ) (1,095 ) (1,108 ) 981 Net (loss) income attributable to the controlling interest (3,596 ) (1,122 ) (957 ) 1,263 Net (loss) income per share (1) Basic $ (0.04 ) $ (0.01 ) $ (0.01 ) $ 0.02 Diluted $ (0.04 ) $ (0.01 ) $ (0.01 ) $ 0.02 Weighted average number of common shares outstanding: Basic 82,536 82,569 82,596 81,689 Diluted 82,536 82,569 82,596 82,196 (1) Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. (2) Gross profit is defined as net product revenues less cost of product revenues. Quarterly Periods During Fiscal Year Ended December 28, 2019: (in thousands, except per share data) Three months 2019 Three months 2019 (3) Three months Three months Total revenue $ 5,543 $ 9,110 $ 6,139 $ 8,727 Gross profit (2) (1,263 ) (808 ) 265 1,188 Loss from operations (11,584 ) (4,838 ) (6,402 ) (3,556 ) Net loss attributable to the controlling interest (11,331 ) (4,260 ) (6,625 ) (7,290 ) Net loss per share (1) Basic and diluted $ (0.15 ) $ (0.05 ) $ (0.08 ) $ (0.09 ) Weighted average number of common shares outstanding: Basic and diluted 74,969 81,950 82,054 82,155 (1) Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. (2) Gross profit is defined as net product revenues less cost of product revenues. (3) Includes $ 3.5 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Transactions with Related Parties | During fiscal years 2020, 2019 and 2018, the Company had the following transactions with related parties: Schedule of Transactions with Related Parties 2020 2019 2018 Revenue Purchases Revenue Purchases Revenue Purchases Goertek $ — $ — $ — $ 747,154 — 646,135 RealWear, Inc. 2,678,335 — 5,778,672 — 1,220,838 — $ 2,678,335 $ — $ 5,778,672 $ 747,154 1,220,838 646,135 At December 26, 2020 and December 28, 2019, the Company had the following receivables and payables with related parties: December 26, 2020 December 28, 2019 Receivables Payables Receivables Payables RealWear, Inc. 817,388 — 646,848 — |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts | The following table sets forth activity in Kopin’s allowance for doubtful accounts: Schedule of Valuation and Qualifying Accounts Fiscal year ended: Balance at Additions Deductions Balance at December 29, 2018 $ 149,000 $ 268,000 $ (113,000 ) $ 304,000 December 28 2019 304,000 951,000 (317,000 ) 938,000 December 26, 2020 $ 938,000 $ 42,000 $ (805,000 ) $ 175,000 |
Schedule of Restated Consolidat
Schedule of Restated Consolidated Statement of Operations (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Product Information [Line Items] | ||||||||||||
Revenues | $ 40,127,669 | $ 29,518,809 | $ 24,465,005 | |||||||||
Cost of product revenues | 21,398,381 | 20,901,538 | 15,831,441 | |||||||||
Net loss attributable to Kopin Corporation | $ 1,263,000 | $ (957,000) | $ (1,122,000) | $ (3,596,000) | $ (7,290,000) | $ (6,625,000) | $ (4,260,000) | $ (11,331,000) | (4,411,112) | (29,506,252) | (34,533,542) | |
Balances Without Adoption of Topic 606 [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Cost of product revenues | 16,809,343 | |||||||||||
Net loss attributable to Kopin Corporation | (34,649,482) | |||||||||||
Effect of Change Higher/(Lower) [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Cost of product revenues | (977,902) | |||||||||||
Net loss attributable to Kopin Corporation | 115,940 | |||||||||||
Net Product Revenues [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | 28,517,874 | 20,283,888 | 19,211,115 | |||||||||
Net Product Revenues [Member] | Balances Without Adoption of Topic 606 [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | 19,726,901 | |||||||||||
Net Product Revenues [Member] | Effect of Change Higher/(Lower) [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | (515,786) | |||||||||||
Research and Development and Other Revenues [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | $ 11,609,795 | $ 9,234,921 | 5,253,890 | |||||||||
Research and Development and Other Revenues [Member] | Balances Without Adoption of Topic 606 [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | 5,600,066 | |||||||||||
Research and Development and Other Revenues [Member] | Effect of Change Higher/(Lower) [Member] | ||||||||||||
Product Information [Line Items] | ||||||||||||
Revenues | $ (346,176) | |||||||||||
[1] | Includes $ 3.5 |
Schedule of Satisfaction of Per
Schedule of Satisfaction of Performance Obligations (Details) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage from products and services transferred customers | 34.00% | 64.00% | 60.00% |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage from products and services transferred customers | 66.00% | 36.00% | 40.00% |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Accounting Policies [Abstract] | ||
Raw materials | $ 3,609,710 | $ 2,630,156 |
Work-in-process | 565,986 | 711,475 |
Finished goods | 280,060 | 427,065 |
Total | $ 4,455,756 | $ 3,768,696 |
Schedule of Changes in Asset Re
Schedule of Changes in Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 261,883 | $ 254,098 |
Exchange rate change | 9,457 | 7,785 |
Ending balance | $ 271,340 | $ 261,883 |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accounting Policies [Abstract] | |||
Nonvested restricted common stock | 3,051,874 | 1,863,124 | 2,213,249 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Beginning balance | $ 1,757,184 | $ 1,554,587 | $ 3,564,779 |
Changes during year | (272,750) | 202,597 | (2,010,192) |
Ending balance | 1,484,434 | 1,757,184 | 1,554,587 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Beginning balance | (42,491) | (5,135) | (54,660) |
Changes during year, reclassifications | (21,028) | (37,356) | 49,525 |
Ending balance | (63,519) | (42,491) | (5,135) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Beginning balance | 1,230,358 | 1,436,938 | 3,231,706 |
Changes during year, before reclassifications | (67,852) | (206,580) | (1,794,768) |
Ending balance | 1,162,506 | 1,230,358 | 1,436,938 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Beginning balance | 569,317 | 122,784 | 387,733 |
Changes during year, before reclassifications | (183,870) | 446,533 | (264,949) |
Ending balance | $ 385,447 | $ 569,317 | $ 122,784 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Remaining performance obligations | $ 25,500,000 | |||
Contract liabilities | 1,493,847 | $ 796,794 | ||
Gain in reversal of other-than-temporary impairment | $ 200,000 | |||
Stock options granted | 0 | 0 | 0 | |
Goodwill | $ 0 | $ 0 | $ 331,344 | |
Operating Lease Right-of-use Assets | 1,780,039 | 2,753,963 | $ 3,700,000 | |
Operating Lease Liabilities | 3,800,000 | |||
Lease liability current | $ 982,375 | $ 1,041,695 | $ 1,000,000 | |
Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment estimated lives | 3 years | |||
Vesting period | 1 year | |||
Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment estimated lives | 10 years | |||
Contract liabilities | $ 10,000 | |||
Vesting period | 5 years | |||
eMDT [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subsidary percentage | 80.00% |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19,081,616 | $ 20,023,626 |
Accumulated depreciation and amortization | (17,454,686) | (18,550,285) |
Property, plant and equipment, net | $ 1,626,930 | 1,473,341 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 10 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 15,031,726 | 16,344,040 |
Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 3,574,103 | 3,577,809 |
Useful Life, description | Life of the lease | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Property, plant and equipment, gross | $ 101,777 | 101,777 |
Asset under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 374,010 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 700,000 | $ 800,000 | $ 1,000,000 |
Asset impairment charges | $ 2,526,669 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) | 12 Months Ended |
Dec. 26, 2020USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 1,155,967 |
Schedule of Future Lease Paymen
Schedule of Future Lease Payment Under Non-cancellable Lease (Details) | Dec. 26, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 1,065,879 |
2022 | 657,084 |
2023 | 201,333 |
Total future lease payments | 1,924,296 |
Less imputed interest | (115,546) |
Total | $ 1,808,750 |
Schedule of Supplemental Inform
Schedule of Supplemental Information Related To Leases (Details) | 12 Months Ended |
Dec. 26, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 1,196,386 |
Weighted Average Discount Rate - Operating Leases | 6.15% |
Weighted Average Remaining Lease Term-Operating Leases (in years) | 2 years 2 months 19 days |
Leases (Details Narrative)
Leases (Details Narrative) $ in Millions | 9 Months Ended |
Sep. 28, 2019USD ($) | |
Leases [Abstract] | |
Rent expense | $ 1.4 |
Schedule of Contract With Custo
Schedule of Contract With Customer, Asset And Liability (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Contract Assets And Liabilities | ||
Contract assets and unbilled receivables | $ 3,521,753 | $ 921,082 |
Change in contract assets and unbilled receivables | $ 2,600,671 | |
Percentage of change in contract assets-current | 282.00% | |
Contract liabilities and billings in excess of revenue earned | $ (1,493,847) | (796,794) |
Change Contract liabilities and billings in excess of revenue earned | $ (696,053) | |
Percentage Contract liabilities and billings in excess of revenue earned | 87.00% | |
Contract liabilities-noncurrent | $ (5,069) | (6,557) |
Change in contract liabilities-noncurrent | $ 1,488 | |
Percentage of change in contract liabilities-noncurrent | (23.00%) | |
Net contract assets | $ 2,022,837 | $ 117,731 |
Change in Net contract assets | $ 1,905,106 | |
Percentage of change in Net contract assets | 1618.00% |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Contract Assets And Liabilities | ||
Increase in contract assets | $ 1.9 | |
Contract with customer, liability, revenue recognized | $ 0.6 | $ 0.8 |
Business Combinations (Details
Business Combinations (Details Narrative) - USD ($) $ in Millions | Mar. 28, 2020 | Dec. 26, 2020 | Mar. 31, 2017 |
Business Combinations [Abstract] | |||
Equity Method Investment, Ownership Percentage | 11.00% | 100.00% | |
Business Combination, Consideration Transferred | $ 1.8 |
Schedule of Goodwill (Details)
Schedule of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Balance, December 29, 2018 | $ 0 | $ 331,344 | |
Impairment of goodwill | (331,344) | $ (1,417,470) | |
Balance, December 28, 2019 | $ 0 | $ 0 | $ 331,344 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Line Items] | |||
Impairment of goodwill | $ 331,344 | $ 1,417,470 | |
Amortization of intangible assets | $ 900,000 | ||
Carrying value of intangible assets | 2,500,000 | ||
Accumulated amortization | $ 2,500,000 | ||
NVIS and Kopin Software Ltd [Member] | |||
Goodwill [Line Items] | |||
Impairment of goodwill | $ 1,400,000 |
Schedule of Fair Value Measurem
Schedule of Fair Value Measurements of Financial Assets (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | $ 25,272,075 | $ 26,319,403 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 17,406,760 | 6,415,958 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 3,635,681 | 15,752,997 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 4,229,634 | 4,150,448 |
Cash and Cash Equivalents [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 17,112,869 | 6,029,247 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 17,112,869 | 6,029,247 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
U.S. Government and Agency Backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 1,023,120 | 8,296,870 |
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 1,023,120 | 8,296,870 |
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 2,612,561 | 7,456,127 |
Corporate Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 2,612,561 | 7,456,127 |
Corporate Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 4,523,525 | 4,537,159 |
Equity Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | 293,891 | 386,711 |
Equity Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Financial instruments, owned, at fair value | $ 4,229,634 | $ 4,150,448 |
Schedule of Fair Value, Liabili
Schedule of Fair Value, Liabilities Measured On Recurring Basis (Details) - Equity Investments [Member] | 12 Months Ended |
Dec. 26, 2020USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Financial instrument fair value, beginnning | $ 4,150,448 |
Net unrealized losses | 259,186 |
Impairment Charge | (180,000) |
Transfers in and or out of Level 3 | |
Financial instrument fair value, ending | $ 4,229,634 |
Schedule of Available-for-sale
Schedule of Available-for-sale Marketable Debt Securities (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Amortized Cost | $ 3,607,645 | $ 15,763,527 |
Unrealized Gains/(Losses) | 28,036 | (10,530) |
Fair Value | 3,635,681 | 15,752,997 |
U.S. Government and Agency Backed Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Amortized Cost | 1,003,941 | 8,304,229 |
Unrealized Gains/(Losses) | 19,179 | (7,359) |
Fair Value | 1,023,120 | 8,296,870 |
Corporate Debt [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Amortized Cost | 2,603,704 | 7,459,298 |
Unrealized Gains/(Losses) | 8,857 | (3,171) |
Fair Value | $ 2,612,561 | $ 7,456,127 |
Schedule of Contractual Maturit
Schedule of Contractual Maturity (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Less than One year | $ 1,102,171 | |
One to Five years | 2,533,510 | |
Debt Securities, Available-for-sale | 3,635,681 | $ 15,752,997 |
US Government Agencies Debt Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Less than One year | ||
One to Five years | 1,023,120 | |
Debt Securities, Available-for-sale | 1,023,120 | |
Corporate Debt Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Less than One year | 1,102,171 | |
One to Five years | 1,510,390 | |
Debt Securities, Available-for-sale | $ 2,612,561 |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) | Sep. 30, 2019 | Jun. 27, 2020 | Dec. 28, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | May 31, 2019 | Mar. 31, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Payments to acquire equity method investments | $ 2,500,000 | $ 1,900,000 | $ 2,500,000 | $ 1,000,000 | ||||||||
Unrealized gain (loss) on securities | $ 800,000 | $ 300,000 | 100,000 | |||||||||
Ownership percentage interest | 11.00% | 100.00% | ||||||||||
Equity method investments, fair value disclosure | $ 3,800,000 | |||||||||||
Impairment of equity security | $ 5,200,000 | |||||||||||
Estimated fair value | $ 26,319,403 | 25,272,075 | $ 26,319,403 | |||||||||
Solos Inc [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Ownership percentage interest | 20.00% | |||||||||||
Gain on fair value of warrant | $ 600,000 | |||||||||||
Payments of equity financing cost | $ 7,500,000 | |||||||||||
Ownership percentage by other owners | 80.00% | |||||||||||
Estimated fair value | $ 600,000 | |||||||||||
Impairment on investment | $ 400,000 | |||||||||||
Series A Warrant [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Gain on fair value of warrant | $ 2,000,000 | |||||||||||
Loss on warrant | $ 100,000 | |||||||||||
Series B [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Equity Securities, FV-NI | $ 2,500,000 | |||||||||||
Warrant [Member] | Maximum [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Ownership percentage in equity investment warrant | 15.00% |
Schedule of Non-vested Restrict
Schedule of Non-vested Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Equity [Abstract] | |||
Number of Shares, Restricted stock Outstanding Beginning | 1,863,124 | 2,213,249 | 2,629,274 |
Weighted Average Grant Date Fair Value, Restricted stock Outstanding Beginning | $ 1.60 | $ 2.51 | $ 3.31 |
Number of Shares, Restricted stock Granted | 2,381,000 | 645,000 | 1,549,000 |
Weighted Average Grant Date Fair Value, Restricted stock Granted | $ 1.42 | $ 0.57 | $ 2.25 |
Number of Shares, Restricted stock Forfeited | (153,595) | (355,625) | (872,025) |
Weighted Average Grant Date Fair Value, Restricted stock Forfeited | $ 1.71 | $ 2.95 | $ 3.78 |
Number of Shares, Restricted stock Vested | (1,038,655) | (639,500) | (1,093,000) |
Weighted Average Grant Date Fair Value, Restricted stock Vested | $ 0.96 | $ 2.98 | $ 3.05 |
Number of Shares, Restricted stock Outstanding Ending | 3,051,874 | 1,863,124 | 2,213,249 |
Weighted Average Grant Date Fair Value, Restricted stock Outstanding Ending | $ 1.67 | $ 1.60 | $ 2.51 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Expected volatility | 94.20% |
Interest rate | 0.20% |
Expected life (years) | 8 months 12 days |
Dividend yield | 0.00% |
Schedule of Stock-based Compens
Schedule of Stock-based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Payment Arrangement, Expense | $ 821,122 | $ 2,057,400 | $ 4,791,054 |
Cost of Product Revenues [Member] | |||
Share-based Payment Arrangement, Expense | 113,517 | 102,629 | 418,605 |
Research and Development [Member] | |||
Share-based Payment Arrangement, Expense | 204,599 | 295,872 | 725,112 |
Selling, General and Administrative [Member] | |||
Share-based Payment Arrangement, Expense | $ 503,006 | $ 1,658,899 | $ 3,647,337 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation (Details Narrative) - USD ($) | Apr. 10, 2019 | Mar. 15, 2019 | Dec. 26, 2020 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of Stock, Number of Shares Issued in Transaction | 700,000 | 7,300,000 | ||||
Proceeds from sale of treasury stock | $ 3,829,462 | |||||
Gross proceeds from registered sale equity securities | $ 800,000 | $ 8,000,000 | ||||
Shares Issued, Price Per Share | $ 1.10 | $ 1.10 | ||||
Underwriting discounts and offering expenses from sale of equity | $ 100,000 | $ 700,000 | ||||
Percentage of common stock outstanding | 0.80% | 8.90% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,381,000 | 645,000 | 1,549,000 | |||
Compensation expense | $ 821,122 | $ 2,057,400 | $ 4,791,054 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 2,000,000 | $ 2,000,000 | ||||
Unrecognized compensation expense period for recognition | 4 years | |||||
Employment Agreement [Member] | Dr. John Fan [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 188,000 | |||||
Award vesting period | 20 days | |||||
Compensation expense | $ 2,100,000 | |||||
Two Thousand Twenty Equity Incentive Plan Member | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 4,000,000 | 4,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,400,000 | 2,400,000 | ||||
At The Market Offering Member | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Sale of Stock, Number of Shares Issued in Transaction | 1,949,101 | |||||
Proceeds from sale of treasury stock | $ 3,800,000 | |||||
Commissions paid | $ 120,000 |
Schedules of Concentration of R
Schedules of Concentration of Risk, by Risk Factor (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Accounts Receivable [Member] | Collins Aerospace Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 45.00% | 23.00% | |
Accounts Receivable [Member] | DRS Network and Imaging Systems LLC Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 15.00% | 22.00% | |
Accounts Receivable [Member] | Scott Safety Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 12.00% | ||
Accounts Receivable [Member] | RealWear, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 10.00% | ||
Revenue Benchmark [Member] | Collins Aerospace Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 27.00% | 20.00% | |
Revenue Benchmark [Member] | DRS Network and Imaging Systems LLC Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 35.00% | 17.00% | |
Revenue Benchmark [Member] | RealWear, Inc. [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 20.00% | ||
Revenue Benchmark [Member] | Defense Customers Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 50.00% | 30.00% | 36.00% |
Revenue Benchmark [Member] | General Dynamics Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 11.00% | ||
Revenue Benchmark [Member] | Funded Research and Development Contracts Member | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 25.00% | 17.00% | 20.00% |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
State | $ 4,000 | $ 5,000 | |
Foreign | 129,000 | 104,000 | 25,000 |
Total current provision | 129,000 | 108,000 | 30,000 |
Federal | (1,075,000) | (5,165,000) | (7,307,000) |
State | (321,000) | (2,341,000) | (360,000) |
Foreign | (19,000) | (56,000) | 300,000 |
Change in valuation allowance | 1,415,000 | 7,562,000 | 7,367,000 |
Total (benefit) deferred provision | |||
Total provision for income taxes | $ 129,000 | $ 108,000 | $ 30,000 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefit (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | ||
Beginning balance | $ 394,000 | $ 394,000 |
Gross increases - prior year tax positions | ||
Gross increases - current year tax positions | ||
Ending balance | $ 394,000 | $ 394,000 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at federal statutory rates | $ (925,000) | $ (6,196,000) | $ (7,515,000) |
State tax liability | 4,000 | 5,000 | |
Foreign deferred tax rate differential | (38,000) | (64,000) | (39,000) |
Foreign withholding | 301,000 | ||
Outside basis in Kowon, net unremitted earnings | (468,000) | ||
Permanent items | 238,000 | 1,964,000 | 186,000 |
Increase in net state operating loss carryforwards | (233,000) | (1,985,000) | (406,000) |
Utilization of net operating losses for U.K. research and development refund | (151,000) | (148,000) | |
Provision to tax return adjustments and tax rate change (1) | (180,000) | 803,000 | (76,000) |
Tax credits | 9,000 | (1,931,000) | 239,000 |
Non-deductible 162M compensation limitations | 13,000 | ||
Non-deductible equity compensation | (121,000) | 16,000 | 290,000 |
Uncertain tax position for transfer pricing | 129,000 | 105,000 | 91,000 |
Other, net | (14,000) | (22,000) | 45,000 |
Change in valuation allowance | 1,415,000 | 7,562,000 | 7,364,000 |
Total provision | $ 129,000 | $ 108,000 | $ 30,000 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 26, 2020 | Dec. 28, 2019 |
Income Tax Disclosure [Abstract] | ||
Foreign withholding liability | $ (554,000) | $ (525,000) |
Federal net operating loss carryforwards | 46,311,000 | 44,820,000 |
State net operating loss carryforwards | 5,454,000 | 5,097,000 |
Foreign net operating loss carryforwards | 1,319,000 | 1,293,000 |
Equity awards | 549,000 | 428,000 |
Tax credits | 9,153,000 | 9,161,000 |
Property, plant and equipment | 577,000 | 524,000 |
Unrealized losses on investments | 2,860,000 | 2,641,000 |
Other | 757,000 | 1,603,000 |
Net deferred tax assets | 66,426,000 | 65,042,000 |
Valuation allowance | (66,980,000) | (65,566,000) |
Deferred tax assets net | $ (554,000) | $ (524,000) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Income tax threshold amount | $ 400,000 | $ 400,000 | |
Accrued interest and penalties related to unrecognized tax benefits | 900,000 | 800,000 | |
Pretax foreign income (loss) from continuing operations | 1,000,000 | 1,300,000 | $ 700,000 |
Valuation allowance | 66,980,000 | $ 65,566,000 | |
Net operating losses | 160,300,000 | ||
Net operating losses no expiration | $ 60,100,000 | ||
Minimum [Member] | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||
Net operating loss expiration year | 2038 |
Schedule of Accrued Warranty (D
Schedule of Accrued Warranty (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Guarantees and Product Warranties [Abstract] | |||
Balance, December 28, 2019 | $ 509,000 | $ 571,000 | $ 649,000 |
Additions | 435,000 | 471,000 | 159,000 |
Claims | (436,000) | (533,000) | (237,000) |
Balance, September 26, 2020 | $ 508,000 | $ 509,000 | $ 571,000 |
Accrued Warranty (Details Narra
Accrued Warranty (Details Narrative) | 12 Months Ended |
Dec. 26, 2020 | |
Warranty [Member] | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Product warranty term | The Company warrants its products against defect for 12 months, however, for certain products a customer may purchase an extended warranty. |
Employee Benefit Plan (Details
Employee Benefit Plan (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Multiemployer Plan [Line Items] | |||
Employer matching percentage | 50.00% | ||
Maximum amount of employee contribution | 6.00% | ||
Amount charged to operations | $ 300,000 | $ 300,000 | $ 300,000 |
Under Age of Fifty Member | |||
Multiemployer Plan [Line Items] | |||
Maximum amount of annual compensation | 19,500 | ||
Over Age of Fifty Member | |||
Multiemployer Plan [Line Items] | |||
Maximum amount of annual compensation | $ 26,000 |
Commitments (Details Narrative)
Commitments (Details Narrative) - Kunming BOE Display Technology Co Ltd Member ¥ in Millions, $ in Millions | Aug. 31, 2017USD ($) | Aug. 31, 2017CNY (¥) |
Entity Listings [Line Items] | ||
Percentage of equity interest acquirable | 3.50% | 3.50% |
Cash, commitment to purchase equity investment | $ | $ 5 | |
RMB Member | ||
Entity Listings [Line Items] | ||
Cash, commitment to purchase equity investment | ¥ | ¥ 35 |
Schedule of Long-lived Assets b
Schedule of Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | $ 3,407 | $ 4,227 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | 3,028 | 3,647 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | 329 | 442 |
CHINA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | 11 | 37 |
JAPAN | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Long-lived Assets | $ 39 | $ 101 |
Schedule of Segment Information
Schedule of Segment Information by Revenue Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 13,922 | $ 9,513 | $ 8,815 | $ 7,878 | $ 8,727 | $ 6,139 | $ 9,110 | $ 5,543 | $ 40,128 | $ 29,519 | $ 24,465 | |
Percentage of total revenue | 100.00% | 100.00% | 100.00% | |||||||||
UNITED STATES | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 33,031 | $ 14,946 | $ 14,436 | |||||||||
Percentage of total revenue | 82.00% | 51.00% | 59.00% | |||||||||
Other Americas [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 101 | $ 134 | $ 123 | |||||||||
Percentage of total revenue | 0.00% | 0.00% | 1.00% | |||||||||
Americas [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 33,132 | $ 15,080 | $ 14,559 | |||||||||
Percentage of total revenue | 82.00% | 51.00% | 60.00% | |||||||||
Asia Pacific [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 5,798 | $ 11,768 | $ 6,916 | |||||||||
Percentage of total revenue | 15.00% | 40.00% | 28.00% | |||||||||
Europe [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 1,198 | $ 2,628 | $ 2,948 | |||||||||
Percentage of total revenue | 3.00% | 9.00% | 12.00% | |||||||||
Other [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Total Revenues | $ 42 | $ 42 | ||||||||||
Percentage of total revenue | 0.00% | 0.00% | 0.00% | |||||||||
[1] | Includes $ 3.5 |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | $ 13,922 | $ 9,513 | $ 8,815 | $ 7,878 | $ 8,727 | $ 6,139 | $ 9,110 | $ 5,543 | $ 40,128 | $ 29,519 | $ 24,465 | |
Defense [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | 20,231 | 8,729 | 8,724 | |||||||||
Industrial [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | 6,882 | 9,717 | 6,066 | |||||||||
Consumer [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | 852 | 1,777 | 4,146 | |||||||||
Research and Development [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | 10,123 | 4,983 | 5,254 | |||||||||
Other [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | 553 | 61 | 275 | |||||||||
License and Royalties Member | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Total Revenues | $ 1,487 | $ 4,252 | ||||||||||
[1] | Includes $ 3.5 |
Schedule of Quarterly Financial
Schedule of Quarterly Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Revenue | $ 13,922,000 | $ 9,513,000 | $ 8,815,000 | $ 7,878,000 | $ 8,727,000 | $ 6,139,000 | $ 9,110,000 | $ 5,543,000 | $ 40,128,000 | $ 29,519,000 | $ 24,465,000 | |||||||||
Gross profit | 3,295,000 | [2] | 1,662,000 | [2] | 1,891,000 | [2] | 271,000 | [2] | 1,188,000 | [3] | 265,000 | [3] | (808,000) | [3] | (1,263,000) | [3] | ||||
(Loss) income from operations | 981,000 | (1,108,000) | (1,095,000) | (3,541,000) | (3,556,000) | (6,402,000) | (4,838,000) | (11,584,000) | ||||||||||||
Net (loss) income attributable to the controlling interest | $ 1,263,000 | $ (957,000) | $ (1,122,000) | $ (3,596,000) | $ (7,290,000) | $ (6,625,000) | $ (4,260,000) | $ (11,331,000) | $ (4,411,112) | $ (29,506,252) | $ (34,533,542) | |||||||||
Net (loss) income per share basic | [4] | $ 0.02 | $ (0.01) | $ (0.01) | $ (0.04) | |||||||||||||||
Net (loss) income per share diluted | [4] | $ 0.02 | $ (0.01) | $ (0.01) | $ (0.04) | |||||||||||||||
Weighted average number of common shares outstanding basic | 81,689 | 82,596 | 82,569 | 82,536 | ||||||||||||||||
Weighted average number of common shares outstanding diluted | 82,196 | 82,596 | 82,569 | 82,536 | ||||||||||||||||
Net loss per share basic and diluted | $ (0.09) | [5] | $ (0.08) | [5] | $ (0.05) | [5] | $ (0.15) | [5] | $ (0.05) | $ (0.37) | $ (0.47) | |||||||||
Weighted average number of common shares outstanding basic and diluted | 82,155 | 82,054 | 81,950 | 74,969 | 82,347,741 | 80,282,126 | 73,156,545 | |||||||||||||
[1] | Includes $ 3.5 | |||||||||||||||||||
[2] | Gross profit is defined as net product revenues less cost of product revenues. | |||||||||||||||||||
[3] | Gross profit is defined as net product revenues less cost of product revenues. | |||||||||||||||||||
[4] | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. | |||||||||||||||||||
[5] | Net loss per share is computed independently for each of the quarters presented; accordingly, the sum of the quarterly net income per share may not equal the total computed for the year. |
Schedule of Quarterly Financi_2
Schedule of Quarterly Financial Information (Details) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | ||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||||
Revenue | $ 13,922 | $ 9,513 | $ 8,815 | $ 7,878 | $ 8,727 | $ 6,139 | $ 9,110 | [1] | $ 5,543 | $ 40,128 | $ 29,519 | $ 24,465 |
Revenue from Licensing Member | ||||||||||||
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Line Items] | ||||||||||||
Revenue | $ 3,500 | |||||||||||
[1] | Includes $ 3.5 |
Schedule of Transactions with R
Schedule of Transactions with Related Parties (Details) - USD ($) | 12 Months Ended | |||
Dec. 26, 2020 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 2,678,335 | $ 5,778,672 | $ 1,220,838 | |
Related party transaction, purchases from related party | 747,154 | 646,135 | ||
Goertek [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | ||||
Related party transaction, purchases from related party | 747,154 | 646,135 | ||
RealWear, Inc. [Member] | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 2,678,335 | 5,778,672 | 1,220,838 | |
Related party transaction, purchases from related party | ||||
Accounts receivable, related parties | 817,388 | 817,388 | 646,848 | |
Accounts payable, related parties |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||
May 31, 2019 | Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | [1] | Mar. 30, 2019 | Mar. 31, 2018 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | |||||||||||||||
Revenue from related parties | $ 2,678,335 | $ 5,778,672 | $ 1,220,838 | ||||||||||||
Revenues | $ 13,922,000 | $ 9,513,000 | $ 8,815,000 | $ 7,878,000 | $ 8,727,000 | $ 6,139,000 | $ 9,110,000 | $ 5,543,000 | 40,128,000 | 29,519,000 | 24,465,000 | ||||
Payments to acquire equity method investments | $ 2,500,000 | $ 1,900,000 | 2,500,000 | 1,000,000 | |||||||||||
Impairment of equity security | $ 5,200,000 | ||||||||||||||
License Agreement Member | Initial Payment Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenues | $ 2,500,000 | ||||||||||||||
RealWear, Inc. [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenue from related parties | 2,678,335 | $ 5,778,672 | $ 1,220,838 | ||||||||||||
Percentage owned of an equity investment | 2.80% | 2.80% | |||||||||||||
Accounts receivable, related parties | 817,388 | $ 646,848 | 817,388 | $ 646,848 | |||||||||||
Accounts payable, related parties | |||||||||||||||
RealWear, Inc. [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Impairment of equity security | 5,200,000 | ||||||||||||||
RealWear, Inc. [Member] | Deferred Payment Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenues | 1,000,000 | ||||||||||||||
RealWear, Inc. [Member] | Quarterly Installments Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenues | 250,000 | ||||||||||||||
RealWear, Inc. [Member] | Supply Display Modules Agreement Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenue from related parties | 1,500,000 | ||||||||||||||
RealWear, Inc. [Member] | License Agreement Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Revenues | $ 3,500,000 | ||||||||||||||
Solos Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage owned of an equity investment | 20.00% | ||||||||||||||
Shares owned of an equity security | 1,172,000 | ||||||||||||||
Accounts receivable, related parties | $ 10,000 | 283,000 | $ 10,000 | 283,000 | |||||||||||
Accounts payable, related parties | $ 10,000 | $ 10,000 | |||||||||||||
Dr John Cc Fan Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of equity security owned by outside investors | 15.70% | 15.70% | |||||||||||||
Diluted percentage of equity security owned by outside investors | 13.60% | 13.60% | |||||||||||||
Dr John Cc Fans Family Member | |||||||||||||||
Related Party Transaction [Line Items] | |||||||||||||||
Percentage of equity security owned by outside investors | 37.50% | 37.50% | |||||||||||||
Diluted percentage of equity security owned by outside investors | 32.50% | 32.50% | |||||||||||||
[1] | Includes $ 3.5 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) $ / shares in Units, shares in Millions | Apr. 10, 2019 | Mar. 15, 2019 | Mar. 27, 2021 |
Multiemployer Plan [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 0.7 | 7.3 | |
Forecast [Member] | |||
Multiemployer Plan [Line Items] | |||
Sale of Stock, Number of Shares Issued in Transaction | 2.4 | ||
Sale of Stock, Consideration Received on Transaction | $ 16,000,000 | ||
Share Price | $ 6.66 | ||
Broker expenses. | $ 500,000 |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Begining balance | $ 938,000 | $ 304,000 | $ 149,000 |
Additions charged to Income | 42,000 | 951,000 | 268,000 |
Deductions from reserve | 805,000 | (317,000) | (113,000) |
Ending balance | 175,000 | 938,000 | 304,000 |
Deductions from reserve | $ (805,000) | $ 317,000 | $ 113,000 |