Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 10, 2023 | Jun. 25, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 122,651,842 | ||
Entity Common Stock, Shares Outstanding | 94,548,269 | ||
Documents Incorporated By Reference | Portions of the definitive proxy statement relating to the registrant’s annual meeting of stockholders are incorporated by reference in response to Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K. | ||
Auditor Firm ID | 49 | ||
Auditor Name | RSM US LLP | ||
Auditor Location | Stamford, Connecticut |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 8,258,878 | $ 26,787,931 |
Marketable debt securities, at fair value | 4,388,778 | 2,507,535 |
Accounts receivable, net of allowance of $303,000 and $150,000 in 2022 and 2021, respectively | 6,537,891 | 12,113,070 |
Contract assets and unbilled receivables | 4,068,364 | 2,299,392 |
Inventory | 6,426,400 | 6,581,139 |
Prepaid taxes | 105,495 | 160,599 |
Prepaid expenses and other current assets | 1,074,867 | 1,758,079 |
Total current assets | 30,860,673 | 52,207,745 |
Property, plant and equipment, net | 1,831,641 | 1,888,963 |
Operating lease right-of-use assets | 3,168,520 | 3,828,066 |
Other assets | 170,132 | 170,932 |
Equity investments | 7,721,206 | 4,912,022 |
Total assets | 43,752,172 | 63,007,728 |
Current liabilities: | ||
Accounts payable | 5,438,980 | 5,483,970 |
Accrued payroll and expenses | 2,879,139 | 2,413,744 |
Accrued warranty | 1,966,000 | 517,000 |
Contract liabilities and billings in excess of revenue earned | 930,500 | 4,063,031 |
Operating lease liabilities | 786,928 | 701,204 |
Accrued post-retirement benefits | 790,000 | |
Other accrued liabilities | 1,182,346 | 1,202,635 |
Customer deposits | 2,638,103 | |
Deferred tax liabilities | 482,739 | 513,417 |
Total current liabilities | 14,456,632 | 17,533,104 |
Noncurrent contract liabilities and asset retirement obligations | 248,284 | 288,634 |
Operating lease liabilities, net of current portion | 2,576,883 | 3,108,236 |
Accrued post-retirement benefits, net of current portion | 1,110,000 | 1,150,000 |
Other long-term liabilities, net of current portion | 1,369,758 | 1,300,897 |
Total liabilities | 19,761,557 | 23,380,871 |
Commitments and contingencies (Note 11) | ||
Stockholders’ equity: | ||
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued | ||
Common stock, par value $.01 per share: authorized, 150,000,000 shares; issued 94,920,060 shares in 2022 and 92,146,761 shares in 2021; outstanding 92,883,524 in 2022 and 89,988,528 in 2021, respectively | 929,540 | 900,691 |
Additional paid-in capital | 360,567,631 | 356,931,157 |
Treasury stock (70,635 and 80,641 shares in 2022 and 2021, at cost) | (103,127) | (366,110) |
Accumulated other comprehensive income | 1,176,068 | 1,414,351 |
Accumulated deficit | (338,406,815) | (319,080,898) |
Total Kopin Corporation stockholders’ equity | 24,163,297 | 39,799,191 |
Noncontrolling interest | (172,682) | (172,334) |
Total stockholders’ equity | 23,990,615 | 39,626,857 |
Total liabilities and stockholders’ equity | $ 43,752,172 | $ 63,007,728 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 303,000 | $ 150,000 |
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 value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 94,920,060 | 92,146,761 |
Common stock, shares outstanding | 92,883,524 | 89,988,528 |
Treasury stock, shares | 70,635 | 80,641 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenues: | |||
Total revenues | $ 47,401,190 | $ 45,666,117 | $ 40,127,669 |
Expenses: | |||
Cost of product revenues | 32,558,748 | 25,052,383 | 21,398,381 |
Research and development-funded programs | 10,279,660 | 9,976,103 | 7,745,762 |
Research and development-internal | 8,387,898 | 6,312,148 | 3,924,241 |
Selling, general and administrative | 17,965,097 | 18,100,519 | 11,822,703 |
Total operating expenses | 69,191,403 | 59,441,153 | 44,891,087 |
Loss from operations | (21,790,213) | (13,775,036) | (4,763,418) |
Non-operating income (expense), net: | |||
Interest income | 76,877 | 31,142 | 132,642 |
Other income (expense), net | 154,357 | 265,509 | (35,463) |
Foreign currency transaction (losses) gains | (323,286) | 139,014 | 293,670 |
Gain (loss) on investments | 2,700,000 | (29,356) | |
Total non-operating income | 2,607,948 | 435,665 | 361,493 |
Loss before provision for income taxes and net loss of noncontrolling interest | (19,182,265) | (13,339,371) | (4,401,925) |
Tax provision | (144,000) | (129,000) | (129,000) |
Net loss | (19,326,265) | (13,468,371) | (4,530,925) |
Net loss attributable to the noncontrolling interest | 348 | 35,498 | 119,813 |
Net loss attributable to Kopin Corporation | $ (19,325,917) | $ (13,432,873) | $ (4,411,112) |
Net loss per share: | |||
Basic and diluted | $ (0.21) | $ (0.15) | $ (0.05) |
Weighted average number of common shares outstanding: | |||
Basic and diluted | 91,429,106 | 88,831,532 | 82,347,741 |
Net Product Revenues [Member] | |||
Revenues: | |||
Total revenues | $ 32,420,397 | $ 29,882,271 | $ 28,517,874 |
Research and Development Revenues [Member] | |||
Revenues: | |||
Total revenues | 14,357,222 | 14,668,471 | 10,122,677 |
License and Other Revenues [Member] | |||
Revenues: | |||
Total revenues | $ 623,571 | $ 1,115,375 | $ 1,487,118 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Statement [Abstract] | |||
Net loss | $ (19,326,265) | $ (13,468,371) | $ (4,530,925) |
Other comprehensive loss, net of tax: | |||
Foreign currency translation adjustments | (36,478) | (51,736) | (67,852) |
Unrealized holding loss on marketable securities | (201,283) | (17,113) | (183,870) |
Reclassifications of loss in net loss on marketable securities | (522) | (1,234) | (21,028) |
Total other comprehensive loss, net of tax | (238,283) | (70,083) | (272,750) |
Comprehensive loss | (19,564,548) | (13,538,454) | (4,803,675) |
Comprehensive loss attributable to the noncontrolling interest | 348 | 35,498 | 119,813 |
Comprehensive loss attributable to Kopin Corporation | $ (19,564,200) | $ (13,502,956) | $ (4,683,862) |
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. 28, 2019 | $ 870,496 | $ 344,456,537 | $ (17,238,669) | $ 1,757,184 | $ (301,236,913) | $ 28,608,635 | $ (17,023) | $ 28,591,612 |
Ending 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 |
Ending balance, shares at Dec. 26, 2020 | 88,007,535 | |||||||
Vesting of restricted stock | $ 15,770 | (15,770) | ||||||
Vesting of restricted stock, shares | 1,576,953 | |||||||
Stock-based compensation expense | 4,417,422 | 4,417,422 | 4,417,422 | |||||
Other comprehensive loss | (70,083) | (70,083) | (70,083) | |||||
Restricted stock for tax withholding obligations | $ (479) | (235,491) | (366,110) | (602,080) | (602,080) | |||
Restricted stock for tax withholding obligations, shares | (47,859) | |||||||
Sale of treasury stock, net of costs | 7,110,227 | 9,793,946 | 16,904,173 | 16,904,173 | ||||
Net loss | (13,432,873) | (13,432,873) | (35,498) | (13,468,371) | ||||
Issuance of common stock, net of costs | $ 5,325 | 4,141,876 | 4,147,201 | 4,147,201 | ||||
Issuance of common stock, net of costs, shares | 532,540 | |||||||
Ending balance, value at Dec. 25, 2021 | $ 900,691 | 356,931,157 | (366,110) | 1,414,351 | (319,080,898) | 39,799,191 | (172,334) | 39,626,857 |
Ending balance, shares at Dec. 25, 2021 | 90,069,169 | |||||||
Vesting of restricted stock | $ 6,809 | (6,809) | ||||||
Vesting of restricted stock, shares | 680,943 | |||||||
Stock-based compensation expense | 1,267,705 | 1,267,705 | 1,267,705 | |||||
Other comprehensive loss | (238,283) | (238,283) | (238,283) | |||||
Restricted stock for tax withholding obligations | (198,740) | (198,740) | (198,740) | |||||
Sale of treasury stock, net of costs | 461,723 | 461,723 | 461,723 | |||||
Net loss | (19,325,917) | (19,325,917) | (348) | (19,326,265) | ||||
Issuance of common stock, net of costs | $ 22,040 | 2,375,578 | 2,397,618 | 2,397,618 | ||||
Issuance of common stock, net of costs, shares | 2,204,047 | |||||||
Ending balance, value at Dec. 31, 2022 | $ 929,540 | $ 360,567,631 | $ (103,127) | $ 1,176,068 | $ (338,406,815) | $ 24,163,297 | $ (172,682) | $ 23,990,615 |
Ending balance, shares at Dec. 31, 2022 | 92,954,159 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Cash flows from operating activities: | |||
Net loss | $ (19,326,265) | $ (13,468,371) | $ (4,530,925) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 722,024 | 668,691 | 651,083 |
Accretion of premium or discount on marketable debt securities | 128 | 7,517 | 7,762 |
Stock-based compensation | 1,267,705 | 4,417,422 | 821,122 |
Net (gain) loss on investment transactions | (2,700,000) | (300,000) | 29,356 |
Income taxes | 143,345 | 128,279 | 116,536 |
Foreign currency losses (gains) | 449,443 | (186,942) | (289,471) |
Loss on sale of property and plant | 317,032 | 99,228 | |
Change in allowance for bad debt | 162,638 | (26,704) | (763,159) |
Write-off of excess inventory | 2,078,750 | 588,175 | 667,019 |
Change in warranty reserves | 2,329,000 | 9,552 | (1,172) |
Changes in assets and liabilities: | |||
Accounts receivable | 6,806,578 | (3,364,990) | (2,954,703) |
Contract assets and unbilled receivables | (1,835,518) | 1,379,436 | (2,600,671) |
Inventory | (2,010,749) | (2,728,404) | (1,332,139) |
Prepaid expenses, other current assets and other assets | 908,156 | (691,573) | (160,371) |
Accounts payable and accrued expenses | (3,859,768) | 143,379 | 5,227,011 |
Contract liabilities and billings in excess of revenue earned | (3,139,749) | 2,577,523 | 695,565 |
Net cash used in operating activities | (17,687,250) | (10,747,782) | (4,417,157) |
Cash flows from investing activities: | |||
Proceeds from sale of marketable debt securities | 2,000,024 | 1,100,000 | 12,148,117 |
Purchase of equity investments | (499,998) | ||
Other assets | 20,909 | (12,822) | 193,186 |
Capital expenditures | (832,712) | (1,033,503) | (542,862) |
Purchases of marketable debt securities | (4,000,042) | ||
Net cash (used in) provided by investing activities | (3,311,819) | 53,675 | 11,798,441 |
Cash flows from financing activities: | |||
Sale of treasury stock, net of costs | 461,723 | 16,904,173 | 3,829,462 |
Issuance of common stock, net of costs | 2,397,618 | 4,147,200 | |
Settlements of restricted stock for tax withholding obligations | (198,740) | (602,080) | (139,926) |
Net cash provided by financing activities | 2,660,601 | 20,449,293 | 3,689,536 |
Effect of exchange rate changes on cash | (190,585) | (80,124) | 12,802 |
Net (decrease) increase in cash and cash equivalents | (18,529,053) | 9,675,062 | 11,083,622 |
Cash and cash equivalents at beginning of year | 26,787,931 | 17,112,869 | 6,029,247 |
Cash and cash equivalents at end of year | 8,258,878 | 26,787,931 | 17,112,869 |
Supplemental disclosure of cash flow information: | |||
Construction in progress included in accrued expenses | $ 168,000 | $ 257,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 year ended December 31, 2022 includes 53 weeks and the fiscal years ended December 25, 2021 and December 26, 2020 includes 52 weeks, and are referred to as fiscal years 2022, 2021 and 2020, respectively, herein. Principles of Consolidation The consolidated financial statements include the accounts of the Kopin Corporation, its wholly owned subsidiaries and a majority owned 80 The Company has incurred net losses of $ 19.3 13.4 17.7 10.7 17 6,000,000 0.99 21.4 Revenue Recognition 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 expect 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 consolidated balance sheets. Amounts billed and due from our customers are classified as Accounts receivable on the consolidated 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 the 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 consolidated 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 License and other revenues on the Company’s consolidated statements of operations. 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 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 2022 2021 2020 Point in time 22 % 31 % 34 % Over time 78 % 69 % 66 % 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 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 19.3 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” in the consolidated balance sheets. The Company records the amortization of premiums 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 2022, 2021 and 2020. 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 31, 2022 and December 25, 2021: Schedule of Inventory 2022 2021 Raw materials $ 4,285,757 $ 5,044,334 Work-in-process 1,735,454 1,032,519 Finished goods 405,189 504,286 Total $ 6,426,400 $ 6,581,139 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 5 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 that 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. 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 Noncurrent contract liabilities and asset retirement obligations in its consolidated balance sheets. The Company currently had approximately less than $ 10,000 Asset Retirement Obligations The Company recorded asset retirement obligations (“ARO”) liabilities of $ 0.2 0.3 Schedule of Changes in Asset Retirement Obligations 2022 2021 Beginning balance $ 267,970 $ 271,340 Exchange rate change (25,876 ) (3,370 ) Ending balance $ 242,094 $ 267,970 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 Anti-dilutive Securities Excluded from Computation of Earnings Per Share 2022 2021 2020 Nonvested restricted common stock 1,965,901 2,077,592 3,051,874 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 creditworthiness, which bear lower levels of relative credit risk. The Company relies on rating agencies to ascertain the creditworthiness 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 recorded 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 to five years (the vesting period) 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 stock options granted in fiscal years 2022, 2021 or 2020. 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 Foreign Currency Translation Adjustment Unrealized holding loss on marketable securities Reclassifications of loss in net loss on marketable securities Accumulated Other Comprehensive Income 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 Changes during year (51,736 ) (17,113 ) (1,234 ) (70,083 ) Balance as of December 25, 2021 $ 1,110,770 $ 368,334 $ (64,753 ) $ 1,414,351 Changes during year (36,478 ) (201,283 ) (522 ) (238,283 ) Balance as of December 31, 2022 $ 1,074,292 $ 167,051 $ (65,275 ) $ 1,176,068 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 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 The Company accounts for leases under standard Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 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, 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 Right of Use (“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 does not expect the impact to be material 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. There was no material impact to the Company’s consolidated financial statements as a result of the adoption of ASU 2019-12. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 2. Property, Plant and Equipment Property, plant and equipment consisted of the following at December 31, 2022 and December 25, 2021: Schedule of Property Plant and Equipment Useful Life 2022 2021 Equipment 3 5 $ 13,965,126 $ 15,099,035 Leasehold improvements Life of the lease 3,600,557 3,571,694 Furniture and fixtures 3 174,622 101,777 Equipment under construction 550,219 233,237 Property, plant and equipment, gross 18,290,524 19,005,743 Accumulated depreciation and amortization (16,458,883 ) (17,116,780 ) Property, plant and equipment, net $ 1,831,641 $ 1,888,963 Depreciation expense for the fiscal years 2022, 2021 and 2020 was approximately $ 0.7 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
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 31, 2022 and December 25, 2021, the Company did not have any finance leases. Almost all of the Company’s 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. In the fourth quarter of 2022, the Company impaired its Operating lease right-of-use assets related to the subsequent event in note 15. Schedule of Lease Expense 2022 2021 Operating lease cost $ 985,967 1,131,998 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) At December 31, 2022, the Company’s future lease payments under non-cancellable leases were as follows: Schedule of Future Lease Payment Under Non-cancellable Lease 2023 976,329 2024 891,607 2025 637,625 2026 604,000 2027 604,000 Thereafter 201,333 Total future lease payments 3,914,894 Less imputed interest (551,083 ) Total $ 3,363,811 Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Information Related To Leases 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 993,633 1,157,060 Other information related to leases was as follows: 2022 2021 Weighted Average Discount Rate—Operating Leases 5.94 % 5.89 % Weighted Average Remaining Lease Term—Operating Leases (in years) 4.69 5.71 |
Contract Assets and Liabilities
Contract Assets and Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 $ Change % Change Contract assets and unbilled receivables $ 4,068,364 $ 2,299,392 $ 1,768,972 77 % Contract liabilities and billings in excess of revenue earned (930,500 ) (4,063,031 ) 3,132,531 (77 )% Noncurrent contract liabilities (6,190 ) (20,664 ) 14,474 (70 )% Net contract assets $ 3,131,674 $ (1,784,303 ) $ 4,915,977 (276 )% The $ 4.9 The Company recognized revenue of approximately $ 3.7 1.5 0.6 The Company did not recognize impairment losses on our contract assets during the years ended December 31, 2022, December 25, 2021, and December 26, 2020. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Financial Instruments | 5. 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 Total Level 1 Level 2 Level 3 Fair Value Measurement at December 31, 2022 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 8,258,878 $ 8,258,878 $ — $ — U.S. Government and agency backed securities 2,397,730 — 2,397,730 — Corporate debt 1,500,445 — 1,500,445 — Certificates of deposit 490,603 490,603 — — Equity Investments 7,721,206 213,016 — 7,508,190 Financial instruments, owned, at fair value $ 20,368,862 $ 8,962,497 $ 3,898,175 $ 7,508,190 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Total Level 1 Level 2 Level 3 Fair Value Measurement at December 25, 2021 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 26,787,931 $ 26,787,931 $ — $ — U.S. Government and agency backed securities 1,000,650 — 1,000,650 — Corporate debt 1,506,885 — 1,506,885 — Equity Investments 4,912,022 296,173 — 4,615,849 Financial instruments, owned, at fair value $ 34,207,488 $ 27,084,104 $ 2,507,535 $ 4,615,849 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 25, Unrealized Unrealized Purchases, December 31, Equity investments $ 4,615,849 $ 4,700,000 $ (2,307,657 ) $ 499,998 $ 7,508,190 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 has an equity interest in a company which it acquired through purchasing capital and contributing certain intellectual property totaling $ 3.9 , 2.0 0.3 0.1 0.3 10 1.6 3.9 In 2017 the Company had a warrant to acquire up to 15 2.0 0.1 2.5 0.8 5.2 4.7 0.5 2.8 5.2 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 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 31, 2022 and December 25, 2021: Schedule of Available-for-sale Marketable Debt Securities Amortized Cost Unrealized Gains/(Losses) Fair Value 2022 2021 2022 2021 2022 2021 U.S. Government and agency backed securities $ 2,500,006 $ 1,000,128 $ (102,276 ) $ 522 $ 2,397,730 $ 1,000,650 Corporate debt 2,000,012 1,500,000 (8,964 ) 6,885 1,991,048 1,506,885 Total $ 4,500,018 $ 2,500,128 $ (111,240 ) $ 7,407 $ 4,388,778 $ 2,507,535 The contractual maturity of the Company’s marketable debt securities is as follows at December 31, 2022: Schedule of Contractual Maturity Less than One to Total U.S. Government and agency backed securities $ — $ 2,397,730 $ 2,397,730 Corporate debt 1,500,445 490,603 1,991,048 Total $ 1,500,445 $ 2,888,333 $ 4,388,778 |
Stockholders_ Equity and Stock-
Stockholders’ Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders’ Equity and Stock-Based Compensation | 6. Stockholders’ Equity and Stock-Based Compensation Registered Sale of Equity Securities In the first quarter of fiscal year 2021, we sold 2.4 16 6.66 0.5 pursuant to the Company’s At-The-Market Equity Offering Sales Agreement dated as of February 8, 2019 (the “Previous ATM Agreement”) with Stifel, Nicolaus & Company, Incorporated, (“Stifel”) as agent. 0.1 0.8 6.74 0.1 The Previous ATM Agreement has since terminated pursuant to its terms as a result of the sale of all the shares subject to such agreement. On March 5, 2021, the Company entered into a new At-The-Market Equity Offering Sales Agreement (the “Current ATM Agreement”) with Stifel under which we may sell up to $ 50 0.6 4.8 8.06 0.1 In the second quarter of 2022, we sold 1.5 0.2 2.1 1.26 675,000 0.9 1.27 0.1 41.4 On January 27, 2023, the Company sold 17 6,000,000 0.99 22.9 1.5 0.01 Sale of Treasury Stock During the year ended December 31, 2022, the Company sold 126,389 0.2 10,000 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Restricted Stock Awards In 2020, the Company adopted the 2020 Equity Incentive Plan (“2020 Equity Plan”) which authorized the issuance of shares of common stock to employees, certain consultants and advisors who perform services for the Company, and non-employee members of the Board. The 2020 Equity Plan is 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 10,000,000 7.1 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) Schedule of Non-vested Restricted Stock Activity Shares Weighted Average Grant Fair Value Balance at December 26, 2020 3,051,874 $ 1.67 Granted 2,247,343 3.46 Forfeited (1,654,666 ) 2.03 Vested (1,566,959 ) 2.23 Balance at December 25, 2021 2,077,592 2.90 Granted 1,013,600 1.33 Forfeited (444,350 ) 2.45 Vested (680,941 ) 2.82 Balance at December 31, 2022 1,965,901 $ 2.22 On December 31, 2020 (fiscal year 2021), the Company amended the employment agreement with our former CEO, and as part of the amendment issued five tranches of 188,000 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 2022, 2021 and 2020 (no tax benefits were recognized): Schedule of Stock-based Compensation Expense 2022 2021 2020 Cost of product revenues $ 94,634 $ 211,362 $ 113,517 Research and development 435,842 576,193 204,599 Selling, general and administrative 737,229 3,629,867 503,006 Total $ 1,267,705 $ 4,417,422 $ 821,122 Unrecognized compensation expense for non-vested restricted common stock as of December 31, 2022 totaled $ 4.4 four years |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | 7. 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 31, 2022 December 25, 2021 Collins Aerospace 28 % 29 % DRS Network & Imaging Systems, LLC 37 % 35 % Sales to significant non-affiliated customers for fiscal years 2022, 2021 and 2020, as a percentage of total revenues, is as follows: Sales as a Percent of Total Revenue Fiscal Year 2022 2021 2020 Customer Defense Customers in Total 52 % 40 % 50 % DRS Network & Imaging Systems, LLC 40 % 31 % 35 % Collins Aerospace 28 % 30 % 27 % Funded Research and Development Contracts 30 % 32 % 25 % Note: 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. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. 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) 2022 2021 2020 Fiscal Year 2022 2021 2020 Current State $ — $ 1,000 $ — Foreign 144,000 128,000 129,000 Total current provision 144,000 129,000 129,000 Deferred Federal 1,073,000 (3,367,000 ) (1,075,000 ) State (1,561,000 ) (928,000 ) (321,000 ) Foreign 74,000 318,000 ) (19,000 ) Change in valuation allowance 414,000 3,977,000 1,415,000 Total deferred provision — — — Total provision for income taxes $ 144,000 $ 129,000 $ 129,000 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 26, 2020 $ 394,000 Gross increases—prior year tax positions — Unrecognized tax benefits at December 25, 2021 394,000 Gross increases—current year tax positions — Unrecognized tax benefits at December 31, 2022 $ 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 1.0 Net operating losses were not utilized in 2022, 2021 and 2020 to offset federal and state taxes. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The actual income tax provisions reported from operations are different from those which would have been computed by applying the federal statutory tax rate to loss before income tax provision. A reconciliation of income tax 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 2022 2021 2020 Fiscal Year 2022 2021 2020 Tax provision at federal statutory rates $ (4,029,000 ) $ (2,787,000 ) $ (925,000 ) State tax liability — — — Foreign deferred tax rate differential (8,000 ) (55,000 ) (38,000 ) Permanent items 5,262,000 (79,000 ) 238,000 Increase in net state operating loss carryforwards (987,000 ) (911,000 ) (233,000 ) Utilization of net operating losses for U.K. research and development refund (24,000 ) (134,000 ) (151,000 ) Provision to tax return adjustments and tax rate change (36,000 ) (69,000 ) (180,000 ) Tax credits (441,000 ) (261,000 ) 9,000 Equity compensation (188,000 ) 326,000 (121,000 ) Uncertain tax position for transfer pricing 143,000 128,000 129,000 Other, net 38,000 (6,000 ) (14,000 ) Change in valuation allowance 414,000 3,977,000 1,415,000 Total provision $ 144,000 $ 129,000 $ 129,000 Pretax foreign income from continuing operations was approximately $ 0.4 2.7 1.0 Schedule of Deferred Tax Assets and Liabilities 2022 2021 Fiscal Year 2022 2021 Deferred tax liability: Foreign withholding liability $ (483,000 ) $ (513,000 ) Deferred tax assets: Federal net operating loss carryforwards 46,618,000 49,609,000 State net operating loss carryforwards 7,381,000 6,393,000 Foreign net operating loss carryforwards 942,000 994,000 Equity awards 34,000 222,000 Tax credits 9,854,000 9,413,000 R&D expense amortization 1,900,000 — Property, plant and equipment 624,000 620,000 Unrealized losses on investments 1,406,000 2,834,000 Other 2,611,000 872,000 Net deferred tax assets 70,887,000 70,444,000 Valuation allowance (71,370,000 ) (70,957,000 ) Deferred tax assets, net $ (483,000 ) $ (513,000 ) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The valuation allowance was approximately $ 71.4 71.0 As of December 31, 2022, the Company has available for tax purposes NOLs of $ 160.3 expiring in 2022 through 2038 88.5 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 (2010 onward), Japan (2010 onward), Hong Kong (2012 onward) and the United Kingdom (2015 onward). The Company is not currently under examination in these jurisdictions. |
Accrued Warranty
Accrued Warranty | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Accrued Warranty | 9. 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 December 31, 2022 December 25, 2021 December 26, 2020 Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Beginning balance $ 517,000 $ 508,000 $ 509,000 Additions 2,329,000 791,000 435,000 Claim and reversals (880,000 ) (782,000 ) (436,000 ) Ending Balance $ 1,966,000 $ 517,000 $ 508,000 |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | 10. 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 2022, the plan allowed employees to defer an amount of their annual compensation up to a current maximum of $ 20,500 27,000 50 6 0.4 0.3 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | 11. Commitments As of December 31, 2022, the Company has no material additional commitments beyond those described in this Form 10-K. |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 12. 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. On August 3, 2022, the Court granted the Company’s Motion for Partial Summary Judgment by dismissing counts 3, 6, 7, punitive damages under count 2, and count 8 as it relates to patent applications, and denying the motion as it relates to counts 1, 4, and 5, and the remainder of counts 2 and 8. The Court also ordered discovery reopened for certain limited purposes. 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 31, 2022. 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. |
Segments and Disaggregation of
Segments and Disaggregation of Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segments and Disaggregation of Revenue | 13. Segments and Disaggregation of Revenue Total long-lived assets by country at December 31, 2022 and December 25, 2021 were: Schedule of Long-lived Assets by Country Total Long-lived Assets (in thousands) 2022 2021 U.S. $ 4,604 $ 5,381 United Kingdom 396 264 Japan — 72 Total $ 5,000 $ 5,717 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 31, 2022, December 25, 2021 and December 26, 2020: Schedule of Total Revenue by Geographical Area 2022 2021 2020 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total U.S. $ 38,604 82 % $ 32,461 71 % $ 33,031 82 % Other Americas 4 — % — — % 101 — % Total Americas 38,608 82 % 32,461 71 % 33,132 82 % Asia-Pacific 7,791 16 % 11,852 26 % 5,798 15 % Europe 1,002 2 % 1,353 3 % 1,198 3 % Total Revenues $ 47,401 100 % $ 45,666 100 % $ 40,128 100 % Total revenue by display application for the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020 was as follows: Schedule of Segment Reporting Information, by Segment (In thousands) 2022 2021 2020 Defense $ 24,780 $ 18,180 $ 20,231 Industrial 6,136 9,710 6,882 Consumer 1,497 1,871 852 R&D 14,357 14,669 10,123 License and royalties 624 1,115 1,487 Other 7 121 553 Total Revenues $ 47,401 $ 45,666 $ 40,128 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. 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 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 3.5 2.5 1.0 0.25 2.5 5.2 4.7 0.5 2.3 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 10,000 The Company has warrants to purchase shares of Preferred Stock of HMDmd. The fair value of the investment was determined to be $ 300,000 As of December 31, 2022, the Company’s Chairman, Dr. John C.C. Fan, has an individual ownership interest of 11.1 10.1 Two 37.5 34.4 During fiscal years 2022, 2021 and 2020, the Company had the following revenue with related parties: Schedule of Revenue with Related Parties 2022 2021 2020 RealWear, Inc. $ $ 3,762,638 $ 2,678,335 HMDmd, Inc. 473,294 656,805 — Revenue with related parties $ 1,665,282 $ 4,419,443 $ 2,678,335 At December 31, 2022 and December 25, 2021, the Company had the following receivables with related parties: December 31, 2022 December 25, 2021 RealWear, Inc. $ 171,518 $ 306,307 Solos Technology 2,248 8,422 HMDmd, Inc. 151,340 — Receivables with related parties $ 325,106 $ 314,729 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 15. Subsequent Events The Company conducted an evaluation and no subsequent events were identified except as described below. On January 5, 2023, the Company entered into a Technology License Agreement and an Asset Purchase Agreement (the “LST Agreements”) with Lightning Silicon Technology, Inc. (“LST”). Pursuant to the LST Agreements, the Company issued a license to LST for certain technology associated with our Organic Light Emitting Technology, transferred in-process development contracts with two customers and accounts receivables that the Company had previously determined were not collectible. The technology license agreement provides for Kopin to transfer certain patents to LST if LST achieves certain milestones, however upon transfer Kopin will receive a license to the technology. To the extent LST makes improvements to the technology licensed from Kopin, Kopin will receive a license for these improvements for certain markets. Kopin is not obligated to provide any additional funding support to LST. As consideration for the transaction, the Company received 18,000,000 20.0 On January 27, 2023, the Company sold 17 6,000,000 0.99 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 16. 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 26 2020 938,000 42,000 (805,000 ) 175,000 December 25, 2021 175,000 55,000 (80,000 ) 150,000 December 31, 2022 $ 150,000 $ 322,000 $ (169,000 ) $ 303,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year The Company’s fiscal year ends on the last Saturday in December. The fiscal year ended December 31, 2022 includes 53 weeks and the fiscal years ended December 25, 2021 and December 26, 2020 includes 52 weeks, and are referred to as fiscal years 2022, 2021 and 2020, respectively, herein. |
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 The Company has incurred net losses of $ 19.3 13.4 17.7 10.7 17 6,000,000 0.99 21.4 |
Revenue Recognition | Revenue Recognition 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 expect 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 consolidated balance sheets. Amounts billed and due from our customers are classified as Accounts receivable on the consolidated 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 the 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 consolidated 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 License and other revenues on the Company’s consolidated statements of operations. |
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 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 2022 2021 2020 Point in time 22 % 31 % 34 % Over time 78 % 69 % 66 % 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 31, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 19.3 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” in the consolidated balance sheets. The Company records the amortization of premiums 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 2022, 2021 and 2020. |
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 31, 2022 and December 25, 2021: Schedule of Inventory 2022 2021 Raw materials $ 4,285,757 $ 5,044,334 Work-in-process 1,735,454 1,032,519 Finished goods 405,189 504,286 Total $ 6,426,400 $ 6,581,139 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 5 |
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 that 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. |
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 Noncurrent contract liabilities and asset retirement obligations in its consolidated balance sheets. The Company currently had approximately less than $ 10,000 |
Asset Retirement Obligations | Asset Retirement Obligations The Company recorded asset retirement obligations (“ARO”) liabilities of $ 0.2 0.3 Schedule of Changes in Asset Retirement Obligations 2022 2021 Beginning balance $ 267,970 $ 271,340 Exchange rate change (25,876 ) (3,370 ) Ending balance $ 242,094 $ 267,970 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 Anti-dilutive Securities Excluded from Computation of Earnings Per Share 2022 2021 2020 Nonvested restricted common stock 1,965,901 2,077,592 3,051,874 |
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 creditworthiness, which bear lower levels of relative credit risk. The Company relies on rating agencies to ascertain the creditworthiness 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 recorded 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 to five years (the vesting period) 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 stock options granted in fiscal years 2022, 2021 or 2020. |
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 Foreign Currency Translation Adjustment Unrealized holding loss on marketable securities Reclassifications of loss in net loss on marketable securities Accumulated Other Comprehensive Income 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 Changes during year (51,736 ) (17,113 ) (1,234 ) (70,083 ) Balance as of December 25, 2021 $ 1,110,770 $ 368,334 $ (64,753 ) $ 1,414,351 Changes during year (36,478 ) (201,283 ) (522 ) (238,283 ) Balance as of December 31, 2022 $ 1,074,292 $ 167,051 $ (65,275 ) $ 1,176,068 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) |
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 The Company accounts for leases under standard Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) 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, 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 Right of Use (“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 does not expect the impact to be material 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. There was no material impact to the Company’s consolidated financial statements as a result of the adoption of ASU 2019-12. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
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 2022 2021 2020 Point in time 22 % 31 % 34 % Over time 78 % 69 % 66 % |
Schedule of Inventory | Inventory consists of the following at December 31, 2022 and December 25, 2021: Schedule of Inventory 2022 2021 Raw materials $ 4,285,757 $ 5,044,334 Work-in-process 1,735,454 1,032,519 Finished goods 405,189 504,286 Total $ 6,426,400 $ 6,581,139 |
Schedule of Changes in Asset Retirement Obligations | Schedule of Changes in Asset Retirement Obligations 2022 2021 Beginning balance $ 267,970 $ 271,340 Exchange rate change (25,876 ) (3,370 ) Ending balance $ 242,094 $ 267,970 |
Schedule of Anti-dilutive 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 Anti-dilutive Securities Excluded from Computation of Earnings Per Share 2022 2021 2020 Nonvested restricted common stock 1,965,901 2,077,592 3,051,874 |
Schedule of Accumulated Other Comprehensive Income | The components of accumulated other comprehensive income are as follows: Schedule of Accumulated Other Comprehensive Income Foreign Currency Translation Adjustment Unrealized holding loss on marketable securities Reclassifications of loss in net loss on marketable securities Accumulated Other Comprehensive Income 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 Changes during year (51,736 ) (17,113 ) (1,234 ) (70,083 ) Balance as of December 25, 2021 $ 1,110,770 $ 368,334 $ (64,753 ) $ 1,414,351 Changes during year (36,478 ) (201,283 ) (522 ) (238,283 ) Balance as of December 31, 2022 $ 1,074,292 $ 167,051 $ (65,275 ) $ 1,176,068 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | Property, plant and equipment consisted of the following at December 31, 2022 and December 25, 2021: Schedule of Property Plant and Equipment Useful Life 2022 2021 Equipment 3 5 $ 13,965,126 $ 15,099,035 Leasehold improvements Life of the lease 3,600,557 3,571,694 Furniture and fixtures 3 174,622 101,777 Equipment under construction 550,219 233,237 Property, plant and equipment, gross 18,290,524 19,005,743 Accumulated depreciation and amortization (16,458,883 ) (17,116,780 ) Property, plant and equipment, net $ 1,831,641 $ 1,888,963 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases | |
Schedule of Lease Expense | Schedule of Lease Expense 2022 2021 Operating lease cost $ 985,967 1,131,998 |
Schedule of Future Lease Payment Under Non-cancellable Lease | At December 31, 2022, the Company’s future lease payments under non-cancellable leases were as follows: Schedule of Future Lease Payment Under Non-cancellable Lease 2023 976,329 2024 891,607 2025 637,625 2026 604,000 2027 604,000 Thereafter 201,333 Total future lease payments 3,914,894 Less imputed interest (551,083 ) Total $ 3,363,811 |
Schedule of Supplemental Information Related To Leases | Supplemental cash flow information related to leases was as follows: Schedule of Supplemental Information Related To Leases 2022 2021 Cash paid for amounts included in the measurement of operating lease liabilities $ 993,633 1,157,060 Other information related to leases was as follows: 2022 2021 Weighted Average Discount Rate—Operating Leases 5.94 % 5.89 % Weighted Average Remaining Lease Term—Operating Leases (in years) 4.69 5.71 |
Contract Assets and Liabiliti_2
Contract Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 $ Change % Change Contract assets and unbilled receivables $ 4,068,364 $ 2,299,392 $ 1,768,972 77 % Contract liabilities and billings in excess of revenue earned (930,500 ) (4,063,031 ) 3,132,531 (77 )% Noncurrent contract liabilities (6,190 ) (20,664 ) 14,474 (70 )% Net contract assets $ 3,131,674 $ (1,784,303 ) $ 4,915,977 (276 )% |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 Total Level 1 Level 2 Level 3 Fair Value Measurement at December 31, 2022 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 8,258,878 $ 8,258,878 $ — $ — U.S. Government and agency backed securities 2,397,730 — 2,397,730 — Corporate debt 1,500,445 — 1,500,445 — Certificates of deposit 490,603 490,603 — — Equity Investments 7,721,206 213,016 — 7,508,190 Financial instruments, owned, at fair value $ 20,368,862 $ 8,962,497 $ 3,898,175 $ 7,508,190 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Total Level 1 Level 2 Level 3 Fair Value Measurement at December 25, 2021 Using: Total Level 1 Level 2 Level 3 Cash and cash equivalents $ 26,787,931 $ 26,787,931 $ — $ — U.S. Government and agency backed securities 1,000,650 — 1,000,650 — Corporate debt 1,506,885 — 1,506,885 — Equity Investments 4,912,022 296,173 — 4,615,849 Financial instruments, owned, at fair value $ 34,207,488 $ 27,084,104 $ 2,507,535 $ 4,615,849 |
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 25, Unrealized Unrealized Purchases, December 31, Equity investments $ 4,615,849 $ 4,700,000 $ (2,307,657 ) $ 499,998 $ 7,508,190 |
Schedule of Available-for-sale Marketable Debt Securities | Schedule of Available-for-sale Marketable Debt Securities Amortized Cost Unrealized Gains/(Losses) Fair Value 2022 2021 2022 2021 2022 2021 U.S. Government and agency backed securities $ 2,500,006 $ 1,000,128 $ (102,276 ) $ 522 $ 2,397,730 $ 1,000,650 Corporate debt 2,000,012 1,500,000 (8,964 ) 6,885 1,991,048 1,506,885 Total $ 4,500,018 $ 2,500,128 $ (111,240 ) $ 7,407 $ 4,388,778 $ 2,507,535 |
Schedule of Contractual Maturity | The contractual maturity of the Company’s marketable debt securities is as follows at December 31, 2022: Schedule of Contractual Maturity Less than One to Total U.S. Government and agency backed securities $ — $ 2,397,730 $ 2,397,730 Corporate debt 1,500,445 490,603 1,991,048 Total $ 1,500,445 $ 2,888,333 $ 4,388,778 |
Stockholders_ Equity and Stoc_2
Stockholders’ Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Non-vested Restricted Stock Activity | Schedule of Non-vested Restricted Stock Activity Shares Weighted Average Grant Fair Value Balance at December 26, 2020 3,051,874 $ 1.67 Granted 2,247,343 3.46 Forfeited (1,654,666 ) 2.03 Vested (1,566,959 ) 2.23 Balance at December 25, 2021 2,077,592 2.90 Granted 1,013,600 1.33 Forfeited (444,350 ) 2.45 Vested (680,941 ) 2.82 Balance at December 31, 2022 1,965,901 $ 2.22 |
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 2022, 2021 and 2020 (no tax benefits were recognized): Schedule of Stock-based Compensation Expense 2022 2021 2020 Cost of product revenues $ 94,634 $ 211,362 $ 113,517 Research and development 435,842 576,193 204,599 Selling, general and administrative 737,229 3,629,867 503,006 Total $ 1,267,705 $ 4,417,422 $ 821,122 |
Concentrations of Risk (Tables)
Concentrations of Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 31, 2022 December 25, 2021 Collins Aerospace 28 % 29 % DRS Network & Imaging Systems, LLC 37 % 35 % Sales to significant non-affiliated customers for fiscal years 2022, 2021 and 2020, as a percentage of total revenues, is as follows: Sales as a Percent of Total Revenue Fiscal Year 2022 2021 2020 Customer Defense Customers in Total 52 % 40 % 50 % DRS Network & Imaging Systems, LLC 40 % 31 % 35 % Collins Aerospace 28 % 30 % 27 % Funded Research and Development Contracts 30 % 32 % 25 % Note: The caption “Defense Customers in Total” excludes research and development contracts. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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) 2022 2021 2020 Fiscal Year 2022 2021 2020 Current State $ — $ 1,000 $ — Foreign 144,000 128,000 129,000 Total current provision 144,000 129,000 129,000 Deferred Federal 1,073,000 (3,367,000 ) (1,075,000 ) State (1,561,000 ) (928,000 ) (321,000 ) Foreign 74,000 318,000 ) (19,000 ) Change in valuation allowance 414,000 3,977,000 1,415,000 Total deferred provision — — — Total provision for income taxes $ 144,000 $ 129,000 $ 129,000 |
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 26, 2020 $ 394,000 Gross increases—prior year tax positions — Unrecognized tax benefits at December 25, 2021 394,000 Gross increases—current year tax positions — Unrecognized tax benefits at December 31, 2022 $ 394,000 |
Schedule of Effective Income Tax Rate Reconciliation | Schedule of Effective Income Tax Rate Reconciliation 2022 2021 2020 Fiscal Year 2022 2021 2020 Tax provision at federal statutory rates $ (4,029,000 ) $ (2,787,000 ) $ (925,000 ) State tax liability — — — Foreign deferred tax rate differential (8,000 ) (55,000 ) (38,000 ) Permanent items 5,262,000 (79,000 ) 238,000 Increase in net state operating loss carryforwards (987,000 ) (911,000 ) (233,000 ) Utilization of net operating losses for U.K. research and development refund (24,000 ) (134,000 ) (151,000 ) Provision to tax return adjustments and tax rate change (36,000 ) (69,000 ) (180,000 ) Tax credits (441,000 ) (261,000 ) 9,000 Equity compensation (188,000 ) 326,000 (121,000 ) Uncertain tax position for transfer pricing 143,000 128,000 129,000 Other, net 38,000 (6,000 ) (14,000 ) Change in valuation allowance 414,000 3,977,000 1,415,000 Total provision $ 144,000 $ 129,000 $ 129,000 |
Schedule of Deferred Tax Assets and Liabilities | Schedule of Deferred Tax Assets and Liabilities 2022 2021 Fiscal Year 2022 2021 Deferred tax liability: Foreign withholding liability $ (483,000 ) $ (513,000 ) Deferred tax assets: Federal net operating loss carryforwards 46,618,000 49,609,000 State net operating loss carryforwards 7,381,000 6,393,000 Foreign net operating loss carryforwards 942,000 994,000 Equity awards 34,000 222,000 Tax credits 9,854,000 9,413,000 R&D expense amortization 1,900,000 — Property, plant and equipment 624,000 620,000 Unrealized losses on investments 1,406,000 2,834,000 Other 2,611,000 872,000 Net deferred tax assets 70,887,000 70,444,000 Valuation allowance (71,370,000 ) (70,957,000 ) Deferred tax assets, net $ (483,000 ) $ (513,000 ) |
Accrued Warranty (Tables)
Accrued Warranty (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Accrued Warranty | Schedule of Accrued Warranty December 31, 2022 December 25, 2021 December 26, 2020 Fiscal Year Ended December 31, 2022 December 25, 2021 December 26, 2020 Beginning balance $ 517,000 $ 508,000 $ 509,000 Additions 2,329,000 791,000 435,000 Claim and reversals (880,000 ) (782,000 ) (436,000 ) Ending Balance $ 1,966,000 $ 517,000 $ 508,000 |
Segments and Disaggregation o_2
Segments and Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Long-lived Assets by Country | Total long-lived assets by country at December 31, 2022 and December 25, 2021 were: Schedule of Long-lived Assets by Country Total Long-lived Assets (in thousands) 2022 2021 U.S. $ 4,604 $ 5,381 United Kingdom 396 264 Japan — 72 Total $ 5,000 $ 5,717 |
Schedule of Total Revenue by Geographical Area | Total revenue by geographical area for the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020: Schedule of Total Revenue by Geographical Area 2022 2021 2020 (In thousands, except percentages) Revenue % of Total Revenue % of Total Revenue % of Total U.S. $ 38,604 82 % $ 32,461 71 % $ 33,031 82 % Other Americas 4 — % — — % 101 — % Total Americas 38,608 82 % 32,461 71 % 33,132 82 % Asia-Pacific 7,791 16 % 11,852 26 % 5,798 15 % Europe 1,002 2 % 1,353 3 % 1,198 3 % Total Revenues $ 47,401 100 % $ 45,666 100 % $ 40,128 100 % |
Schedule of Segment Reporting Information, by Segment | Total revenue by display application for the fiscal years ended December 31, 2022, December 25, 2021 and December 26, 2020 was as follows: Schedule of Segment Reporting Information, by Segment (In thousands) 2022 2021 2020 Defense $ 24,780 $ 18,180 $ 20,231 Industrial 6,136 9,710 6,882 Consumer 1,497 1,871 852 R&D 14,357 14,669 10,123 License and royalties 624 1,115 1,487 Other 7 121 553 Total Revenues $ 47,401 $ 45,666 $ 40,128 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Revenue with Related Parties | During fiscal years 2022, 2021 and 2020, the Company had the following revenue with related parties: Schedule of Revenue with Related Parties 2022 2021 2020 RealWear, Inc. $ $ 3,762,638 $ 2,678,335 HMDmd, Inc. 473,294 656,805 — Revenue with related parties $ 1,665,282 $ 4,419,443 $ 2,678,335 At December 31, 2022 and December 25, 2021, the Company had the following receivables with related parties: December 31, 2022 December 25, 2021 RealWear, Inc. $ 171,518 $ 306,307 Solos Technology 2,248 8,422 HMDmd, Inc. 151,340 — Receivables with related parties $ 325,106 $ 314,729 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 26 2020 938,000 42,000 (805,000 ) 175,000 December 25, 2021 175,000 55,000 (80,000 ) 150,000 December 31, 2022 $ 150,000 $ 322,000 $ (169,000 ) $ 303,000 |
Schedule of Satisfaction of Per
Schedule of Satisfaction of Performance Obligations (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Transferred at Point in Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage from products and services transferred customers | 22% | 31% | 34% |
Transferred over Time [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue percentage from products and services transferred customers | 78% | 69% | 66% |
Schedule of Inventory (Details)
Schedule of Inventory (Details) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Accounting Policies [Abstract] | ||
Raw materials | $ 4,285,757 | $ 5,044,334 |
Work-in-process | 1,735,454 | 1,032,519 |
Finished goods | 405,189 | 504,286 |
Total | $ 6,426,400 | $ 6,581,139 |
Schedule of Changes in Asset Re
Schedule of Changes in Asset Retirement Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Accounting Policies [Abstract] | ||
Beginning balance | $ 267,970 | $ 271,340 |
Exchange rate change | (25,876) | (3,370) |
Ending balance | $ 242,094 | $ 267,970 |
Schedule of Anti-dilutive Secur
Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Accounting Policies [Abstract] | |||
Nonvested restricted common stock | 1,965,901 | 2,077,592 | 3,051,874 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Beginning balance | $ 1,414,351 | $ 1,484,434 | $ 1,757,184 |
Changes during year | (238,283) | (70,083) | (272,750) |
Ending balance | 1,176,068 | 1,414,351 | 1,484,434 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Beginning balance | (64,753) | (63,519) | (42,491) |
Changes during year, reclassifications | (522) | (1,234) | (21,028) |
Ending balance | (65,275) | (64,753) | (63,519) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Beginning balance | 1,110,770 | 1,162,506 | 1,230,358 |
Changes during year, before reclassifications | (36,478) | (51,736) | (67,852) |
Ending balance | 1,074,292 | 1,110,770 | 1,162,506 |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-Sale, Parent [Member] | |||
Beginning balance | 368,334 | 385,447 | 569,317 |
Changes during year, before reclassifications | (201,283) | (17,113) | (183,870) |
Ending balance | $ 167,051 | $ 368,334 | $ 385,447 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jan. 27, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Net losses | $ 19,325,917 | $ 13,432,873 | $ 4,411,112 | |
Net cash outflows from operations | $ 17,687,250 | $ 10,747,782 | 4,417,157 | |
Sale of common stock | $ 17,000,000 | |||
Purchase of warrants | 6,000,000 | |||
Offering price per share | $ 0.99 | $ 0.01 | $ 0.01 | |
Net proceeds | $ 21,400,000 | $ 2,397,618 | $ 4,147,200 | |
Remaining performance obligation | 19,300,000 | |||
Asset retirement obligation | $ 242,094 | 267,970 | 271,340 | |
Gain in reversal of other-than-temporary impairment | $ 200,000 | |||
Minimum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment estimated lives | 3 years | |||
Vesting rights | the Company for periods ranging from one to five years (the vesting period) | |||
Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment estimated lives | 5 years | |||
Contract liabilities | $ 10,000 | $ 10,000 | ||
eMDT [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subsidary percentage | 80% |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 18,290,524 | $ 19,005,743 |
Accumulated depreciation and amortization | (16,458,883) | (17,116,780) |
Property, plant and equipment, net | $ 1,831,641 | 1,888,963 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful Life | 5 years | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 13,965,126 | 15,099,035 |
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 | $ 3,600,557 | 3,571,694 |
Useful Life, description | Life of the lease | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 174,622 | 101,777 |
Useful Life | 3 years | |
Asset under Construction [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 550,219 | $ 233,237 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 0.7 | $ 0.7 | $ 0.7 |
Schedule of Lease Expense (Deta
Schedule of Lease Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Leases | ||
Operating lease cost | $ 985,967 | $ 1,131,998 |
Schedule of Future Lease Paymen
Schedule of Future Lease Payment Under Non-cancellable Lease (Details) | Dec. 31, 2022 USD ($) |
Leases | |
2023 | $ 976,329 |
2024 | 891,607 |
2025 | 637,625 |
2026 | 604,000 |
2027 | 604,000 |
Thereafter | 201,333 |
Total future lease payments | 3,914,894 |
Less imputed interest | (551,083) |
Total | $ 3,363,811 |
Schedule of Supplemental Inform
Schedule of Supplemental Information Related To Leases (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Leases | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 993,633 | $ 1,157,060 |
Weighted Average Discount Rate - Operating Leases | 5.94% | 5.89% |
Weighted Average Remaining Lease Term-Operating Leases (in years) | 4 years 8 months 8 days | 5 years 8 months 15 days |
Schedule of Contract with Custo
Schedule of Contract with Customer, Asset and Liability (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Contract Assets And Liabilities | ||
Contract assets and unbilled receivables | $ 4,068,364 | $ 2,299,392 |
Change in contract assets and unbilled receivables | $ 1,768,972 | |
Percentage of change in contract assets-current | 77% | |
Contract liabilities and billings in excess of revenue earned | $ (930,500) | (4,063,031) |
Change Contract liabilities and billings in excess of revenue earned | $ 3,132,531 | |
Percentage Contract liabilities and billings in excess of revenue earned | (77.00%) | |
Contract liabilities-noncurrent | $ (6,190) | (20,664) |
Change in contract liabilities-noncurrent | $ 14,474 | |
Percentage of change in contract liabilities-noncurrent | (70.00%) | |
Net contract assets | $ 3,131,674 | $ (1,784,303) |
Change in Net contract assets | $ 4,915,977 | |
Percentage of change in Net contract assets | (276.00%) |
Contract Assets and Liabiliti_3
Contract Assets and Liabilities (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Contract Assets And Liabilities | |||
Change in Net contract assets | $ 4,915,977 | ||
Contract with customer, liability, revenue recognized | $ 3,700,000 | $ 1,500,000 | $ 600,000 |
Schedule of Fair Value Measurem
Schedule of Fair Value Measurements of Financial Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | $ 20,368,862 | $ 34,207,488 |
Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 8,962,497 | 27,084,104 |
Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 3,898,175 | 2,507,535 |
Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 7,508,190 | 4,615,849 |
Cash and Cash Equivalents [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 8,258,878 | 26,787,931 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 8,258,878 | 26,787,931 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
U.S. Government and Agency Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 2,397,730 | 1,000,650 |
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 2,397,730 | 1,000,650 |
U.S. Government and Agency Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 1,500,445 | 1,506,885 |
Corporate Debt [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Corporate Debt [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 1,500,445 | 1,506,885 |
Corporate Debt [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Certificates of Deposit [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 490,603 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 490,603 | |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Certificates of Deposit [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 7,721,206 | 4,912,022 |
Equity Investments [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | 213,016 | 296,173 |
Equity Investments [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | ||
Equity Investments [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments, owned, at fair value | $ 7,508,190 | $ 4,615,849 |
Schedule of Fair Value, Liabili
Schedule of Fair Value, Liabilities Measured On Recurring Basis (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Financial instrument fair value, beginning | $ 3,900,000 |
Financial instrument fair value, ending | 1,600,000 |
Equity Investments [Member] | |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | |
Financial instrument fair value, beginning | 4,615,849 |
Net unrealized gains | 4,700,000 |
Net unrealized losses | (2,307,657) |
Purchases, issuances and settlements | 499,998 |
Financial instrument fair value, ending | $ 7,508,190 |
Schedule of Available-for-sale
Schedule of Available-for-sale Marketable Debt Securities (Details) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | $ 4,500,018 | $ 2,500,128 |
Unrealized Gains/(Losses) | (111,240) | 7,407 |
Fair Value | 4,388,778 | 2,507,535 |
U.S. Government and Agency Backed Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 2,500,006 | 1,000,128 |
Unrealized Gains/(Losses) | (102,276) | 522 |
Fair Value | 2,397,730 | 1,000,650 |
Corporate Debt [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Amortized Cost | 2,000,012 | 1,500,000 |
Unrealized Gains/(Losses) | (8,964) | 6,885 |
Fair Value | $ 1,991,048 | $ 1,506,885 |
Schedule of Contractual Maturit
Schedule of Contractual Maturity (Details) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | $ 1,500,445 | |
One to Five years | 2,888,333 | |
Debt Securities, Available-for-sale | 4,388,778 | $ 2,507,535 |
US Government Agencies Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | ||
One to Five years | 2,397,730 | |
Debt Securities, Available-for-sale | 2,397,730 | |
Corporate Debt Securities [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Less than One year | 1,500,445 | |
One to Five years | 490,603 | |
Debt Securities, Available-for-sale | $ 1,991,048 |
Financial Instruments (Details
Financial Instruments (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Sep. 30, 2019 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 28, 2019 | Jun. 29, 2019 | Jun. 30, 2018 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Dec. 31, 2017 | May 31, 2019 | Dec. 30, 2017 | |
Additional equity investment | $ 500,000 | $ 499,998 | ||||||||||
Impairment charge | 2,000,000 | |||||||||||
Unrealized gain (loss) on securities | $ 800,000 | 300,000 | 100,000 | 300,000 | ||||||||
Equity Method Investments, Fair Value Disclosure | $ 1,600,000 | 3,900,000 | ||||||||||
Impairment of equity security | $ 5,200,000 | |||||||||||
Gain on investment | $ 4,700,000 | |||||||||||
Percentage owned of an equity investment | 2.80% | |||||||||||
Fair value of equity investment | $ 5,200,000 | |||||||||||
Estimated fair value | $ 20,368,862 | 34,207,488 | ||||||||||
Solos Inc [Member] | ||||||||||||
Gain on investment | 600,000 | |||||||||||
Payments of Financing Costs | $ 7,500,000 | |||||||||||
Ownership percentage by other owners | 80% | |||||||||||
Estimated fair value | $ 600,000 | |||||||||||
Impairment on investment | $ 400,000 | $ 400,000 | ||||||||||
Series A Warrant [Member] | ||||||||||||
Gain on investment | $ 2,000,000 | |||||||||||
Loss on warrant | $ 100,000 | |||||||||||
Series B [Member] | ||||||||||||
Shares value acquired | $ 2,500,000 | |||||||||||
Warrant [Member] | Maximum [Member] | ||||||||||||
Ownership percentage in equity investment warrant | 15% | |||||||||||
Equity Investment [Member] | ||||||||||||
Equity stake received, percenatge | 10% | |||||||||||
Solos Inc [Member] | ||||||||||||
Equity stake received, percenatge | 20% | |||||||||||
Intellectual Property [Member] | ||||||||||||
Additional equity investment | $ 3,900,000 |
Schedule of Non-vested Restrict
Schedule of Non-vested Restricted Stock Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Equity [Abstract] | ||
Number of shares, restricted stock outstanding beginning | 2,077,592 | 3,051,874 |
Weighted average grant date fair value, restricted stock outstanding beginning | $ 2.90 | $ 1.67 |
Number of shares, restricted stock granted | 1,013,600 | 2,247,343 |
Weighted average grant date fair value, restricted stock granted | $ 1.33 | $ 3.46 |
Number of shares, restricted stock forfeited | (444,350) | (1,654,666) |
Weighted average grant date fair value, restricted stock forfeited | $ 2.45 | $ 2.03 |
Number of shares, restricted stock vested | (680,941) | (1,566,959) |
Weighted average grant date fair value, restricted stock vested | $ 2.82 | $ 2.23 |
Number of shares, restricted stock outstanding ending | 1,965,901 | 2,077,592 |
Weighted average grant date fair value, restricted stock outstanding ending | $ 2.22 | $ 2.90 |
Schedule of Share-based Payment
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Expected volatility | 94.20% |
Interest rate | 0.20% |
Expected life (years) | 8 months 12 days |
Dividend yield |
Schedule of Stock-based Compens
Schedule of Stock-based Compensation Expense (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Total | $ 1,267,705 | $ 4,417,422 | $ 821,122 |
Cost Of Product Revenues [Member] | |||
Total | 94,634 | 211,362 | 113,517 |
Research And Development [Member] | |||
Total | 435,842 | 576,193 | 204,599 |
Selling General And Administrative [Member] | |||
Total | $ 737,229 | $ 3,629,867 | $ 503,006 |
Stockholders_ Equity and Stoc_3
Stockholders’ Equity and Stock-Based Compensation (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jan. 27, 2023 | Mar. 05, 2021 | Jan. 27, 2023 | Dec. 31, 2020 | Sep. 24, 2022 | Jun. 25, 2022 | Sep. 25, 2021 | Jun. 26, 2021 | Mar. 27, 2021 | Mar. 26, 2021 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Sep. 26, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Proceeds from sale of common stock | $ 17,000,000 | |||||||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | ||||||||||||
Number of shares, restricted stock granted | 1,013,600 | 2,247,343 | ||||||||||||
Stock-based compensation | $ 1,267,705 | $ 4,417,422 | $ 821,122 | |||||||||||
Unrecognized compensation expense | $ 4,400,000 | |||||||||||||
Weighted average period, unrecognized | 4 years | |||||||||||||
2020 Equity Incentive Plan [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares authorized to issue | 4,000,000 | |||||||||||||
Common Stock, Shares Authorized | 10,000,000 | |||||||||||||
Number of shares available for grant | 7,100,000 | |||||||||||||
Vesting period description | the Company for periods ranging from one to five years (the vesting period) | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of common stock sold, shares | 17,000,000 | |||||||||||||
Pre-funded warrants issued to purchase common stock | 6,000,000 | 6,000,000 | ||||||||||||
Offering price per share | $ 0.99 | $ 0.99 | ||||||||||||
Subsequent Event [Member] | Prefunded Warrants [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Underwriting discounts and offering expenses | $ 1,500,000 | |||||||||||||
Pre-funded warrants issued to purchase common stock | 6,000,000 | 6,000,000 | ||||||||||||
Offering price per share | $ 0.99 | $ 0.99 | ||||||||||||
roceeds from issuance of warrants | $ 22,900,000 | |||||||||||||
Exercise price of warrants | $ 0.01 | $ 0.01 | ||||||||||||
Employment Agreement [Member] | Dr. John Fan [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of shares, restricted stock granted | 188,000 | |||||||||||||
Stock-based compensation | $ 2,100,000 | |||||||||||||
At The Market Offering [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of common stock sold, shares | 126,389 | |||||||||||||
Underwriting discounts and offering expenses | $ 100,000 | $ 100,000 | $ 100,000 | $ 500,000 | ||||||||||
Proceeds from sale of common stock | $ 200,000 | |||||||||||||
Commissions paid | 10,000 | |||||||||||||
At The Market Offering [Member] | Common Stock [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of common stock sold, shares | 675,000 | 1,500,000 | 600,000 | 100,000 | 2,400,000 | |||||||||
Gross proceeds from registered sale equity securities | $ 900,000 | $ 2,100,000 | $ 4,800,000 | $ 800,000 | $ 16,000,000 | |||||||||
Share price | $ 1.27 | $ 1.26 | $ 6.74 | $ 6.66 | $ 8.06 | |||||||||
Underwriting discounts and offering expenses | $ 41,400,000 | |||||||||||||
At The Market Offering [Member] | Common Stock [Member] | Maximum [Member] | Stifel [Member] | March 5, 2021 At The Market Agreement [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Proceeds from sale of common stock | $ 50,000,000 | |||||||||||||
At The Market Offering [Member] | Treasury Stock [Member] | ||||||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||||||
Number of common stock sold, shares | 200,000 |
Schedules of Concentration of R
Schedules of Concentration of Risk, by Risk Factor (Details) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Accounts Receivable [Member] | Collins Aerospace [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 28% | 29% | |
Accounts Receivable [Member] | DRS Network and Imaging Systems LLC [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 37% | 35% | |
Revenue Benchmark [Member] | Collins Aerospace [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 28% | 30% | 27% |
Revenue Benchmark [Member] | DRS Network and Imaging Systems LLC [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 40% | 31% | 35% |
Revenue Benchmark [Member] | Defense Customers [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 52% | 40% | 50% |
Revenue Benchmark [Member] | Funded Research and Development Contracts [Member] | |||
Concentration Risk [Line Items] | |||
Concentrations of risk percentage | 30% | 32% | 25% |
Schedule of Components of Incom
Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
State | $ 1,000 | ||
Foreign | 144,000 | 128,000 | 129,000 |
Total current provision | 144,000 | 129,000 | 129,000 |
Federal | 1,073,000 | (3,367,000) | (1,075,000) |
State | (1,561,000) | (928,000) | (321,000) |
Foreign | 74,000 | 318,000 | (19,000) |
Change in valuation allowance | 414,000 | 3,977,000 | 1,415,000 |
Total deferred provision | |||
Total provision for income taxes | $ 144,000 | $ 129,000 | $ 129,000 |
Schedule of Unrecognized Tax Be
Schedule of Unrecognized Tax Benefit (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 25, 2021 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Beginning Balance | $ 394,000 | $ 394,000 |
Gross increases - current year tax positions | ||
Gross increases - current year tax positions | ||
Unrecognized Tax Benefits, Ending Balance | $ 394,000 | $ 394,000 |
Schedule of Effective Income Ta
Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at federal statutory rates | $ (4,029,000) | $ (2,787,000) | $ (925,000) |
State tax liability | |||
Foreign deferred tax rate differential | (8,000) | (55,000) | (38,000) |
Permanent items | 5,262,000 | (79,000) | 238,000 |
Increase in net state operating loss carryforwards | (987,000) | (911,000) | (233,000) |
Utilization of net operating losses for U.K. research and development refund | (24,000) | (134,000) | (151,000) |
Provision to tax return adjustments and tax rate change | (36,000) | (69,000) | (180,000) |
Tax credits | (441,000) | (261,000) | 9,000 |
Equity compensation | (188,000) | 326,000 | (121,000) |
Uncertain tax position for transfer pricing | 143,000 | 128,000 | 129,000 |
Other, net | 38,000 | (6,000) | (14,000) |
Change in valuation allowance | 414,000 | 3,977,000 | 1,415,000 |
Total provision for income taxes | $ 144,000 | $ 129,000 | $ 129,000 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 25, 2021 |
Income Tax Disclosure [Abstract] | ||
Foreign withholding liability | $ (483,000) | $ (513,000) |
Federal net operating loss carryforwards | 46,618,000 | 49,609,000 |
State net operating loss carryforwards | 7,381,000 | 6,393,000 |
Foreign net operating loss carryforwards | 942,000 | 994,000 |
Equity awards | 34,000 | 222,000 |
Tax credits | 9,854,000 | 9,413,000 |
R&D expense amortization | 1,900,000 | |
Property, plant and equipment | 624,000 | 620,000 |
Unrealized losses on investments | 1,406,000 | 2,834,000 |
Other | 2,611,000 | 872,000 |
Net deferred tax assets | 70,887,000 | 70,444,000 |
Valuation allowance | (71,370,000) | (70,957,000) |
Deferred tax assets, net | $ (483,000) | $ (513,000) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |||
Gross tax liability | $ 0.4 | $ 0.4 | |
Accrued interest and penalties related to unrecognized tax benefits | 1 | 1 | |
Pretax foreign income from continuing operations | 0.4 | 2.7 | $ 1 |
Valuation allowance | 71.4 | $ 71 | |
Net operating loss carryforwards | $ 160.3 | ||
Net operating loss carryforwards expiration period | expiring in 2022 through 2038 | ||
Net operating loss carryforwards without expiration | $ 88.5 |
Schedule of Accrued Warranty (D
Schedule of Accrued Warranty (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Guarantees and Product Warranties [Abstract] | |||
Beginning balance | $ 517,000 | $ 508,000 | $ 509,000 |
Additions | 2,329,000 | 791,000 | 435,000 |
Claim and reversals | (880,000) | (782,000) | (436,000) |
Ending Balance | $ 1,966,000 | $ 517,000 | $ 508,000 |
Accrued Warranty (Details Narra
Accrued Warranty (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 | |
Warrant [Member] | |
Extended product warranty description | 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. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Multiemployer Plan [Line Items] | |||
Employer matching percentage | 50% | ||
Maximum amount of employee contribution | 6% | ||
Amount charged to operations | $ 400,000 | $ 400,000 | $ 300,000 |
Under Age of Fifty [Member] | |||
Multiemployer Plan [Line Items] | |||
Maximum amount of annual compensation | 20,500 | ||
Over Age of Fifty [Member] | |||
Multiemployer Plan [Line Items] | |||
Maximum amount of annual compensation | $ 27,000 |
Schedule of Long-lived Assets b
Schedule of Long-lived Assets by Country (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 25, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 5,000 | $ 5,717 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 4,604 | 5,381 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 396 | 264 |
JAPAN | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 72 |
Schedule of Total Revenue by Ge
Schedule of Total Revenue by Geographical Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 47,401 | $ 45,666 | $ 40,128 |
Percentage of total revenue | 100% | 100% | 100% |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 38,604 | $ 32,461 | $ 33,031 |
Percentage of total revenue | 82% | 71% | 82% |
Other Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 4 | $ 101 | |
Percentage of total revenue | |||
Americas [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 38,608 | $ 32,461 | $ 33,132 |
Percentage of total revenue | 82% | 71% | 82% |
Asia Pacific [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 7,791 | $ 11,852 | $ 5,798 |
Percentage of total revenue | 16% | 26% | 15% |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 1,002 | $ 1,353 | $ 1,198 |
Percentage of total revenue | 2% | 3% | 3% |
Schedule of Segment Reporting I
Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Revenue from External Customer [Line Items] | |||
Total Revenues | $ 47,401 | $ 45,666 | $ 40,128 |
Defense [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 24,780 | 18,180 | 20,231 |
Industrial [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 6,136 | 9,710 | 6,882 |
Consumer [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 1,497 | 1,871 | 852 |
Research And Development [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 14,357 | 14,669 | 10,123 |
License And Royalties [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | 624 | 1,115 | 1,487 |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Total Revenues | $ 7 | $ 121 | $ 553 |
Schedule of Revenue with Relate
Schedule of Revenue with Related Parties (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Related Party Transaction [Line Items] | |||
Revenue with related parties | $ 1,665,282 | $ 4,419,443 | $ 2,678,335 |
Receivables with related parties | 325,106 | 314,729 | |
RealWear, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue with related parties | 1,191,988 | 3,762,638 | 2,678,335 |
Receivables with related parties | 171,518 | 306,307 | |
HMDmd, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue with related parties | 473,294 | 656,805 | |
Receivables with related parties | 151,340 | ||
Solos Technology [Member] | |||
Related Party Transaction [Line Items] | |||
Receivables with related parties | $ 2,248 | $ 8,422 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
May 31, 2019 | Jun. 25, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 28, 2019 | Jun. 29, 2019 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||||||||
License fees and royalties | $ 1,665,282 | $ 4,419,443 | $ 2,678,335 | |||||||
Other payments | 47,401,000 | 45,666,000 | 40,128,000 | |||||||
Additional equity investment | $ 500,000 | 499,998 | ||||||||
Impairment of equity security | $ 5,200,000 | |||||||||
Gain on investments | $ 2,700,000 | (29,356) | ||||||||
Percentage owned of an equity investment | 2.80% | |||||||||
Accounts receivable, related parties | $ 325,106 | 314,729 | ||||||||
License Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other payments | $ 3,500,000 | |||||||||
License Agreement [Member] | Initial Payment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other payments | 2,500,000 | |||||||||
RealWear, Inc. [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
License fees and royalties | $ 1,191,988 | 3,762,638 | 2,678,335 | |||||||
Additional equity investment | $ 500,000 | $ 2,500,000 | ||||||||
Impairment of equity security | $ 5,200,000 | |||||||||
Gain on investments | $ 4,700,000 | |||||||||
Percentage owned of an equity investment | 2.30% | |||||||||
Accounts receivable, related parties | $ 171,518 | 306,307 | ||||||||
RealWear, Inc. [Member] | Deferred Payment [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other payments | 1,000,000 | |||||||||
RealWear, Inc. [Member] | Quarterly Installments [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other payments | 250,000 | |||||||||
RealWear, Inc. [Member] | Supply Display Modules Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
License fees and royalties | 1,500,000 | |||||||||
RealWear, Inc. [Member] | License Agreement [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Other payments | $ 3,500,000 | |||||||||
Solos [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage owned of an equity investment | 20% | |||||||||
Shares owned of an equity security | 1,172,000 | |||||||||
Solos [Member] | Minimum [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Accounts receivable, related parties | 10,000 | 10,000 | ||||||||
Accounts payable, related parties | 10,000 | 10,000 | ||||||||
HMDmd, Inc. [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
License fees and royalties | 473,294 | 656,805 | ||||||||
Accounts receivable, related parties | $ 151,340 | |||||||||
Number of warrants to purchase preferred stock | 300,000 | |||||||||
Dr John Cc Fan [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of equity security owned by outside investors | 11.10% | |||||||||
Diluted percentage of equity security owned by outside investors | 10.10% | |||||||||
Dr John Cc Fans Family [Member] | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Percentage of equity security owned by outside investors | 37.50% | |||||||||
Diluted percentage of equity security owned by outside investors | 34.40% |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - $ / shares | Jan. 27, 2023 | Jan. 05, 2023 |
Subsequent Event [Line Items] | ||
Number of registered common stock sold | 17,000,000 | |
Pre-funded warrants issued to purchase common stock | 6,000,000 | |
Offering price per share | $ 0.99 | |
LST Agreement [Member] | Lightning Silicon Technology, Inc. [Member] | ||
Subsequent Event [Line Items] | ||
Issuance of shares | 18,000,000 | |
Ownership percentage | 20% |
Schedule of Valuation and Quali
Schedule of Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |||
Begining balance | $ 150,000 | $ 175,000 | $ 938,000 |
Additions charged to Income | 322,000 | 55,000 | 42,000 |
Deductions from reserve | (169,000) | (80,000) | (805,000) |
Ending balance | $ 303,000 | $ 150,000 | $ 175,000 |