Company Quick10K Filing
Kopin
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 82 $93
10-Q 2019-11-07 Quarter: 2019-09-28
10-Q 2019-08-08 Quarter: 2019-06-29
10-Q 2019-05-09 Quarter: 2019-03-30
10-K 2019-03-14 Annual: 2018-12-29
10-Q 2018-11-08 Quarter: 2018-09-29
10-Q 2018-08-09 Quarter: 2018-06-30
10-Q 2018-05-10 Quarter: 2018-03-31
10-K 2018-03-23 Annual: 2017-12-30
10-Q 2017-11-09 Quarter: 2017-09-30
10-Q 2017-08-10 Quarter: 2017-07-01
10-Q 2017-05-11 Quarter: 2017-04-01
10-K 2017-03-23 Annual: 2016-12-31
10-K 2017-03-23 Annual: 2016-09-24
10-Q 2016-08-03 Quarter: 2016-06-25
10-Q 2016-05-04 Quarter: 2016-03-26
10-K 2016-03-04 Annual: 2015-12-26
10-Q 2015-11-05 Quarter: 2015-09-26
10-Q 2015-08-06 Quarter: 2015-06-27
10-Q 2015-05-11 Quarter: 2015-03-28
10-K 2015-03-12 Annual: 2014-12-27
10-Q 2014-11-06 Quarter: 2014-09-27
10-Q 2014-08-07 Quarter: 2014-06-28
10-Q 2014-05-08 Quarter: 2014-03-29
10-K 2014-03-17 Annual: 2013-12-28
10-Q 2013-11-05 Quarter: 2013-09-28
10-Q 2013-08-08 Quarter: 2013-06-29
10-Q 2013-05-09 Quarter: 2013-03-30
10-K 2013-03-18 Annual: 2012-12-29
10-Q 2012-11-08 Quarter: 2012-09-29
10-Q 2012-08-09 Quarter: 2012-06-30
10-Q 2012-05-10 Quarter: 2012-03-31
10-K 2012-03-15 Annual: 2011-12-31
10-Q 2011-11-03 Quarter: 2011-09-24
10-Q 2011-08-04 Quarter: 2011-06-25
10-Q 2011-05-05 Quarter: 2011-03-26
10-K 2011-03-10 Annual: 2010-12-25
10-Q 2010-11-03 Quarter: 2010-09-25
10-Q 2010-08-03 Quarter: 2010-06-26
10-Q 2010-05-04 Quarter: 2010-03-27
10-K 2010-03-08 Annual: 2009-12-26
8-K 2019-11-22 Accountant, Exhibits
8-K 2019-11-07 Earnings, Exhibits
8-K 2019-10-09
8-K 2019-10-07 Regulation FD, Exhibits
8-K 2019-09-30 Enter Agreement
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-05-21 Shareholder Vote
8-K 2019-05-07 Earnings, Exhibits
8-K 2019-04-12 Amend Bylaw, Exhibits
8-K 2019-04-10 Other Events, Exhibits
8-K 2019-03-19 Other Events, Exhibits
8-K 2019-03-15 Enter Agreement, Exhibits
8-K 2019-03-15 Other Events, Exhibits
8-K 2019-03-14 Other Events, Exhibits
8-K 2019-03-12 Earnings, Exhibits
8-K 2019-02-08 Enter Agreement, Exhibits
8-K 2019-01-17 Officers, Regulation FD, Exhibits
8-K 2018-11-08 Earnings, Exhibits
8-K 2018-08-06 Earnings, Exhibits
8-K 2018-05-09 Shareholder Vote
8-K 2018-05-08 Earnings, Exhibits
8-K 2018-03-08 Earnings, Exhibits
8-K 2018-01-04 Officers
KOPN 2019-09-28
Part 1. Financial Information
Item 1. Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 kopn-2019928xexx311.htm
EX-31.2 kopn-2019928xexx312.htm
EX-32.1 kopn-2019928xexx321.htm
EX-32.2 kopn-2019928xexx322.htm

Kopin Earnings 2019-09-28

KOPN 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
PXLW 146 69 19 77 40 -4 0 129 52% 387.7 -6%
MRAM 121 37 19 42 20 -17 -15 115 46% -7.9 -45%
KOPN 93 58 16 28 1 -37 -35 81 5% -2.3 -63%
EMKR 87 127 36 88 20 -27 -20 67 22% -3.3 -21%
ATOM 86 20 1 0 0 -14 -14 67 81% -4.9 -70%
SQNS 77 63 0 0 0 0 77 0%
QUIK 70 40 20 12 6 -14 -14 42 53% -2.9 -36%
RESN 64 18 6 0 0 -28 -27 54 0% -2.0 -154%
SPCB 59 54 21 0 0 0 0 58 0%
IMI 58 45 17 25 18 -11 -8 56 72% -7.2 -24%

Document
false--12-28Q3201900007712663040002410000.010.01120000000120000000807353208858457774008815820536970.010.013000300000P1YP2Y45132564513256 0000771266 2018-12-30 2019-09-28 0000771266 2019-11-04 0000771266 2018-12-29 0000771266 2019-09-28 0000771266 us-gaap:ProductMember 2017-12-31 2018-09-29 0000771266 us-gaap:ServiceMember 2017-12-31 2018-09-29 0000771266 us-gaap:ProductMember 2018-12-30 2019-09-28 0000771266 us-gaap:ServiceMember 2018-07-01 2018-09-29 0000771266 2019-06-30 2019-09-28 0000771266 2018-07-01 2018-09-29 0000771266 2017-12-31 2018-09-29 0000771266 us-gaap:ServiceMember 2019-06-30 2019-09-28 0000771266 us-gaap:ProductMember 2018-07-01 2018-09-29 0000771266 us-gaap:ProductMember 2019-06-30 2019-09-28 0000771266 us-gaap:ServiceMember 2018-12-30 2019-09-28 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-29 0000771266 2019-03-31 2019-06-29 0000771266 us-gaap:CommonStockMember 2019-03-30 0000771266 us-gaap:CommonStockMember 2019-04-10 2019-04-10 0000771266 us-gaap:CommonStockMember 2018-12-29 0000771266 us-gaap:TreasuryStockMember 2019-03-30 0000771266 us-gaap:CommonStockMember 2019-03-31 2019-06-29 0000771266 us-gaap:RetainedEarningsMember 2019-06-30 2019-09-28 0000771266 us-gaap:NoncontrollingInterestMember 2019-03-31 2019-06-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-28 0000771266 us-gaap:ParentMember 2018-12-30 2019-03-30 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-30 2019-03-30 0000771266 us-gaap:TreasuryStockMember 2019-09-28 0000771266 2018-12-30 2019-03-30 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-06-30 2019-09-28 0000771266 2019-03-15 2019-03-15 0000771266 us-gaap:NoncontrollingInterestMember 2019-06-29 0000771266 us-gaap:NoncontrollingInterestMember 2018-12-29 0000771266 us-gaap:CommonStockMember 2018-12-30 2019-03-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-12-30 2019-03-30 0000771266 us-gaap:RetainedEarningsMember 2019-09-28 0000771266 us-gaap:CommonStockMember 2019-06-29 0000771266 us-gaap:ParentMember 2019-03-31 2019-06-29 0000771266 us-gaap:CommonStockMember 2019-09-28 0000771266 us-gaap:ParentMember 2019-06-30 2019-09-28 0000771266 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 2019-06-29 0000771266 us-gaap:ParentMember 2018-12-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-30 0000771266 2019-03-30 0000771266 us-gaap:NoncontrollingInterestMember 2018-12-30 2019-03-30 0000771266 us-gaap:RetainedEarningsMember 2019-03-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2019-09-28 0000771266 us-gaap:TreasuryStockMember 2018-12-29 0000771266 us-gaap:RetainedEarningsMember 2019-03-31 2019-06-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-03-31 2019-06-29 0000771266 us-gaap:ParentMember 2019-03-30 0000771266 us-gaap:ParentMember 2019-09-28 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-12-29 0000771266 us-gaap:ParentMember 2019-06-29 0000771266 us-gaap:NoncontrollingInterestMember 2019-06-30 2019-09-28 0000771266 us-gaap:RetainedEarningsMember 2018-12-29 0000771266 us-gaap:AdditionalPaidInCapitalMember 2019-03-30 0000771266 2019-06-29 0000771266 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 2019-09-28 0000771266 us-gaap:RetainedEarningsMember 2018-12-30 2019-03-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2019-06-29 0000771266 us-gaap:RetainedEarningsMember 2019-06-29 0000771266 us-gaap:NoncontrollingInterestMember 2019-03-30 0000771266 us-gaap:TreasuryStockMember 2019-06-29 0000771266 us-gaap:NoncontrollingInterestMember 2019-09-28 0000771266 us-gaap:ParentMember 2017-12-30 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-04-01 2018-06-30 0000771266 2018-06-30 0000771266 us-gaap:ParentMember 2017-12-31 2018-03-31 0000771266 us-gaap:CommonStockMember 2018-04-01 2018-06-30 0000771266 2018-04-01 2018-06-30 0000771266 us-gaap:ParentMember 2018-07-01 2018-09-29 0000771266 us-gaap:RetainedEarningsMember 2017-12-30 0000771266 us-gaap:ParentMember 2018-04-01 2018-06-30 0000771266 us-gaap:NoncontrollingInterestMember 2017-12-30 0000771266 us-gaap:TreasuryStockMember 2017-12-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-29 0000771266 2017-12-31 2018-03-31 0000771266 2018-09-29 0000771266 us-gaap:CommonStockMember 2018-06-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 2018-03-31 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 2018-03-31 0000771266 us-gaap:NoncontrollingInterestMember 2017-12-31 2018-03-31 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-07-01 2018-09-29 0000771266 us-gaap:RetainedEarningsMember 2018-06-30 0000771266 us-gaap:CommonStockMember 2017-12-31 2018-03-31 0000771266 us-gaap:RetainedEarningsMember 2018-04-01 2018-06-30 0000771266 us-gaap:NoncontrollingInterestMember 2018-03-31 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-04-01 2018-06-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-09-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-06-30 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0000771266 us-gaap:TreasuryStockMember 2018-03-31 0000771266 us-gaap:CommonStockMember 2018-09-29 0000771266 us-gaap:NoncontrollingInterestMember 2018-04-01 2018-06-30 0000771266 us-gaap:CommonStockMember 2018-03-31 0000771266 us-gaap:NoncontrollingInterestMember 2018-07-01 2018-09-29 0000771266 us-gaap:TreasuryStockMember 2018-06-30 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-30 0000771266 us-gaap:RetainedEarningsMember 2018-03-31 0000771266 us-gaap:AdditionalPaidInCapitalMember 2017-12-30 0000771266 us-gaap:ParentMember 2018-06-30 0000771266 us-gaap:ParentMember 2018-03-31 0000771266 us-gaap:RetainedEarningsMember 2018-09-29 0000771266 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000771266 us-gaap:CommonStockMember 2017-12-30 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-03-31 0000771266 2017-12-30 0000771266 us-gaap:NoncontrollingInterestMember 2018-06-30 0000771266 us-gaap:ParentMember 2018-09-29 0000771266 2018-03-31 0000771266 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-29 0000771266 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-29 0000771266 us-gaap:NoncontrollingInterestMember 2018-09-29 0000771266 us-gaap:TreasuryStockMember 2018-09-29 0000771266 us-gaap:RetainedEarningsMember 2017-12-31 2018-03-31 0000771266 2017-12-31 2018-12-29 0000771266 2018-12-30 0000771266 us-gaap:CorporateDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:CorporateDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member kopn:EquityInvestmentOneMember 2019-03-30 0000771266 us-gaap:FairValueInputsLevel3Member kopn:EquityInvestmentOneMember 2019-09-28 0000771266 us-gaap:SubsequentEventMember 2019-09-30 0000771266 us-gaap:FairValueInputsLevel3Member kopn:SolosInc.Member us-gaap:SubsequentEventMember 2019-09-30 0000771266 us-gaap:FairValueInputsLevel3Member kopn:RealWearInc.Member 2018-06-30 0000771266 us-gaap:FairValueInputsLevel3Member kopn:RealWearInc.Member 2019-05-31 0000771266 us-gaap:FairValueInputsLevel3Member kopn:RealWearInc.Member 2018-12-30 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member kopn:RealWearInc.Member 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member kopn:EquityInvestmentOneMember 2018-12-30 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:EquitySecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:EquitySecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:CashAndCashEquivalentsMember 2018-12-29 0000771266 us-gaap:CashAndCashEquivalentsMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:CashAndCashEquivalentsMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:EquitySecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:CorporateDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:EquitySecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:CashAndCashEquivalentsMember 2019-09-28 0000771266 us-gaap:EquitySecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:CashAndCashEquivalentsMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel2Member us-gaap:EquitySecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member 2018-12-29 0000771266 us-gaap:FairValueInputsLevel2Member 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:CorporateDebtSecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember 2018-12-29 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember 2018-12-30 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member us-gaap:EquitySecuritiesMember 2019-09-28 0000771266 us-gaap:FairValueInputsLevel3Member kopn:EquityInvestmentOneMember 2018-12-30 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2017-12-31 2018-09-29 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2019-06-30 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2018-12-30 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2018-07-01 2018-09-29 0000771266 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2017-12-31 2018-09-29 0000771266 us-gaap:ResearchAndDevelopmentExpenseMember 2017-12-31 2018-09-29 0000771266 us-gaap:CostOfSalesMember 2017-12-31 2018-09-29 0000771266 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-07-01 2018-09-29 0000771266 us-gaap:ResearchAndDevelopmentExpenseMember 2018-07-01 2018-09-29 0000771266 us-gaap:ResearchAndDevelopmentExpenseMember 2019-06-30 2019-09-28 0000771266 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-12-30 2019-09-28 0000771266 us-gaap:ResearchAndDevelopmentExpenseMember 2018-12-30 2019-09-28 0000771266 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2019-06-30 2019-09-28 0000771266 us-gaap:CostOfSalesMember 2019-06-30 2019-09-28 0000771266 us-gaap:CostOfSalesMember 2018-07-01 2018-09-29 0000771266 us-gaap:CostOfSalesMember 2018-12-30 2019-09-28 0000771266 2019-04-10 0000771266 2019-04-10 2019-04-10 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2017-01-01 2017-12-30 0000771266 us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2018-12-30 2019-09-28 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2017-01-01 2017-12-30 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2017-01-01 2017-12-30 0000771266 2019-03-15 0000771266 us-gaap:RestrictedStockMember 2019-09-28 0000771266 us-gaap:RestrictedStockMember 2018-12-30 2019-09-28 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2019-06-30 2019-09-28 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheThreeMember 2019-06-30 2019-09-28 0000771266 us-gaap:RestrictedStockMember us-gaap:ShareBasedCompensationAwardTrancheOneMember 2019-06-30 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2018-12-30 2019-09-28 0000771266 kopn:UnvestedRestrictedStockAwardsMember 2018-12-29 0000771266 us-gaap:ShareBasedCompensationAwardTrancheTwoMember 2018-12-30 2019-09-28 0000771266 us-gaap:ShareBasedCompensationAwardTrancheOneMember 2018-12-30 2019-09-28 0000771266 srt:MinimumMember 2018-12-30 2019-09-28 0000771266 srt:MaximumMember 2018-12-30 2019-09-28 0000771266 kopn:ExtendedWarrantiesMember 2019-09-28 0000771266 us-gaap:TransferredAtPointInTimeMember 2018-07-01 2018-09-29 0000771266 us-gaap:TransferredOverTimeMember 2017-12-31 2018-09-29 0000771266 us-gaap:TransferredAtPointInTimeMember 2019-06-30 2019-09-28 0000771266 us-gaap:TransferredAtPointInTimeMember 2018-12-30 2019-09-28 0000771266 us-gaap:TransferredOverTimeMember 2019-06-30 2019-09-28 0000771266 us-gaap:TransferredOverTimeMember 2018-12-30 2019-09-28 0000771266 us-gaap:TransferredAtPointInTimeMember 2017-12-31 2018-09-29 0000771266 us-gaap:TransferredOverTimeMember 2018-07-01 2018-09-29 0000771266 kopn:EquityInvestmentThreeMember 2019-09-28 0000771266 kopn:AllOtherCustomersMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:IndustrialCustomersMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:AllOtherCustomersMember 2017-12-31 2018-09-29 0000771266 kopn:LicenseandRoyaltiesMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:ResearchandDevelopmentMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember 2018-07-01 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember 2018-12-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember 2019-06-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember 2018-07-01 2018-09-29 0000771266 kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:ConsumerCustomersMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:MilitaryCustomersMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:AllOtherCustomersMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember 2019-06-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:ResearchandDevelopmentMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:IndustrialCustomersMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:LicenseandRoyaltiesMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:ResearchandDevelopmentMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:ConsumerCustomersMember 2018-07-01 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember 2018-07-01 2018-09-29 0000771266 kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:MilitaryCustomersMember 2018-12-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:LicenseandRoyaltiesMember 2019-06-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:ResearchandDevelopmentMember 2018-12-30 2019-09-28 0000771266 kopn:MilitaryCustomersMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:ConsumerCustomersMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:MilitaryCustomersMember 2018-07-01 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember 2017-12-31 2018-09-29 0000771266 kopn:IndustrialCustomersMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:ConsumerCustomersMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:LicenseandRoyaltiesMember 2017-12-31 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:MilitaryCustomersMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:MilitaryCustomersMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:MilitaryCustomersMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:AllOtherCustomersMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:MilitaryCustomersMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:IndustrialCustomersMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:AllOtherCustomersMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:MilitaryCustomersMember 2019-06-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember 2019-06-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember 2018-07-01 2018-09-29 0000771266 kopn:AllOtherCustomersMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 kopn:MilitaryCustomersMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:LicenseandRoyaltiesMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:MilitaryCustomersMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:LicenseandRoyaltiesMember 2018-12-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember 2019-06-30 2019-09-28 0000771266 kopn:ConsumerCustomersMember 2017-12-31 2018-09-29 0000771266 kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:MilitaryCustomersMember 2017-12-31 2018-09-29 0000771266 kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 kopn:ResearchandDevelopmentMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:IndustrialCustomersMember 2017-12-31 2018-09-29 0000771266 kopn:ConsumerCustomersMember 2018-12-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember 2018-07-01 2018-09-29 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2018-12-29 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember 2018-12-29 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember 2019-06-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember 2017-12-31 2018-09-29 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 us-gaap:IntersegmentEliminationMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember 2018-12-30 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 us-gaap:OperatingSegmentsMember kopn:KopinMember 2018-12-29 0000771266 us-gaap:OperatingSegmentsMember kopn:IndustrialMember 2019-09-28 0000771266 us-gaap:IntersegmentEliminationMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:OthersMember 2019-06-30 2019-09-28 0000771266 country:US kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 srt:EuropeMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 srt:EuropeMember 2018-07-01 2018-09-29 0000771266 srt:EuropeMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 srt:EuropeMember 2019-06-30 2019-09-28 0000771266 kopn:OthersMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:OthersMember 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember 2019-06-30 2019-09-28 0000771266 srt:EuropeMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:OthersMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember 2018-12-30 2019-09-28 0000771266 kopn:OthersMember 2017-12-31 2018-09-29 0000771266 kopn:OtherAmericasMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 srt:EuropeMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 srt:EuropeMember 2017-12-31 2018-09-29 0000771266 srt:AsiaPacificMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:OtherAmericasMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember 2018-07-01 2018-09-29 0000771266 kopn:OthersMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:OthersMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 country:US 2019-06-30 2019-09-28 0000771266 srt:AsiaPacificMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 country:US kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 srt:AsiaPacificMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 country:US kopn:KopinMember 2019-06-30 2019-09-28 0000771266 srt:AmericasMember 2017-12-31 2018-09-29 0000771266 srt:AmericasMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 country:US kopn:KopinMember 2017-12-31 2018-09-29 0000771266 country:US kopn:KopinMember 2018-07-01 2018-09-29 0000771266 srt:EuropeMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 kopn:OthersMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 srt:AmericasMember 2018-12-30 2019-09-28 0000771266 srt:AmericasMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 country:US kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 srt:EuropeMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 country:US 2017-12-31 2018-09-29 0000771266 kopn:OthersMember 2018-07-01 2018-09-29 0000771266 kopn:OthersMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 srt:AsiaPacificMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 srt:AmericasMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 country:US kopn:KopinMember 2018-12-30 2019-09-28 0000771266 srt:AsiaPacificMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 srt:AsiaPacificMember 2019-06-30 2019-09-28 0000771266 srt:EuropeMember 2018-12-30 2019-09-28 0000771266 srt:AsiaPacificMember kopn:KopinMember 2018-12-30 2019-09-28 0000771266 srt:AsiaPacificMember 2017-12-31 2018-09-29 0000771266 kopn:OtherAmericasMember 2017-12-31 2018-09-29 0000771266 country:US 2018-12-30 2019-09-28 0000771266 kopn:OtherAmericasMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 srt:AsiaPacificMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 country:US kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 srt:AmericasMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 country:US 2018-07-01 2018-09-29 0000771266 kopn:OtherAmericasMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 srt:AmericasMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 kopn:OthersMember kopn:KopinMember 2018-07-01 2018-09-29 0000771266 srt:EuropeMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 srt:AsiaPacificMember 2018-07-01 2018-09-29 0000771266 srt:AmericasMember 2018-07-01 2018-09-29 0000771266 srt:AmericasMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 srt:EuropeMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 srt:AmericasMember 2019-06-30 2019-09-28 0000771266 srt:AmericasMember kopn:IndustrialMember 2017-12-31 2018-09-29 0000771266 kopn:OtherAmericasMember kopn:KopinMember 2019-06-30 2019-09-28 0000771266 kopn:OthersMember kopn:IndustrialMember 2018-07-01 2018-09-29 0000771266 srt:AsiaPacificMember 2018-12-30 2019-09-28 0000771266 srt:AmericasMember kopn:KopinMember 2017-12-31 2018-09-29 0000771266 kopn:OtherAmericasMember kopn:IndustrialMember 2018-12-30 2019-09-28 0000771266 srt:AsiaPacificMember kopn:IndustrialMember 2019-06-30 2019-09-28 0000771266 country:JP us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000771266 us-gaap:PropertyPlantAndEquipmentMember 2018-12-29 0000771266 country:JP us-gaap:PropertyPlantAndEquipmentMember 2018-12-29 0000771266 country:CN us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000771266 country:CN us-gaap:PropertyPlantAndEquipmentMember 2018-12-29 0000771266 country:GB us-gaap:PropertyPlantAndEquipmentMember 2018-12-29 0000771266 country:US us-gaap:PropertyPlantAndEquipmentMember 2018-12-29 0000771266 us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000771266 country:GB us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000771266 country:US us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000771266 kopn:RealWearInc.Member 2018-07-01 2018-09-29 0000771266 kopn:RealWearInc.Member 2017-12-31 2018-09-29 0000771266 kopn:RealWearInc.Member 2019-06-30 2019-09-28 0000771266 kopn:GoertekMember 2018-12-30 2019-09-28 0000771266 kopn:GoertekMember 2019-06-30 2019-09-28 0000771266 kopn:GoertekMember 2017-12-31 2018-09-29 0000771266 kopn:GoertekMember 2018-07-01 2018-09-29 0000771266 kopn:RealWearInc.Member 2018-12-30 2019-09-28 0000771266 kopn:GoertekMember 2019-09-28 0000771266 kopn:RealWearInc.Member 2019-09-28 0000771266 kopn:GoertekMember 2018-12-29 0000771266 kopn:RealWearInc.Member 2018-12-29 iso4217:USD xbrli:shares iso4217:CNY iso4217:USD xbrli:shares xbrli:pure
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
 FORM 10-Q
 
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 28, 2019
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____             
Commission file number 0-19882
 
 
 KOPIN CORPORATION
(Exact name of registrant as specified in its charter)
 
 
Delaware
 
04-2833935
State or other jurisdiction of
incorporation or organization
 
(I.R.S. Employer
Identification No.)
 
 
 
 
 
125 North Drive,
Westborough
MA
 
01581-3335
(Address of principal executive offices)
 
(Zip Code)
Registrant’s telephone number, including area code: (508870-5959
 
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common Stock, par value $0.01
 
KOPN
 
Nasdaq Global Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to filing requirements for the past 90 days.    Yes  x   No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
 
¨
 
 
Accelerated Filer
 
x
Non-accelerated filer
 
¨
 
 
Smaller reporting company
 
 
 
 
 
 
Emerging growth company
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes      No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding as of November 4, 2019
 
Common Stock, par value $0.01
84,016,821
 


Table of Contents


Kopin Corporation
INDEX
 
 
 
 
 
 
Page
No.
 
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
 
 
 
Item 1.
Item 1A.
Item 2.
Item 6.
 


Table of Contents


Part 1. FINANCIAL INFORMATION
 
Item 1.
Condensed Consolidated Financial Statements (Unaudited)
KOPIN CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
September 28, 2019
 
December 29, 2018
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
8,757,699

 
$
14,326,347

Marketable debt securities, at fair value
17,258,504

 
22,918,016

Accounts receivable, net of allowance of $241,000 in 2019 and $304,000 in 2018
4,910,375

 
3,088,360

Contract assets and unbilled receivables
1,045,939

 
3,089,663

Inventory
3,442,490

 
4,797,238

Prepaid taxes
601,608

 
399,611

Prepaid expenses and other current assets
766,688

 
784,790

Total current assets
36,783,303

 
49,404,025

Plant and equipment, net
1,621,927

 
2,598,842

Operating lease right-of-use assets
3,073,651

 

Goodwill

 
331,344

Other assets
844,049

 
1,361,375

Equity investments
9,029,417

 
5,853,525

Total assets
$
51,352,347

 
$
59,549,111

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
3,018,906

 
$
3,921,880

Accrued payroll and expenses
2,536,640

 
3,038,005

Accrued warranty
645,000

 
571,000

Contract liabilities and billings in excess of revenue earned
1,430,828

 
388,933

Operating lease liabilities
1,081,252

 

Other accrued liabilities
2,961,609

 
1,901,547

Deferred tax liabilities
507,000

 
546,000

Total current liabilities
12,181,235

 
10,367,365

Asset retirement obligations
245,916

 
254,098

Operating lease liabilities, net of current portion
2,077,245

 

Other long-term obligations
1,031,523

 
1,214,827

Stockholders’ equity:
 
 
 
Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued

 

Common stock, par value $.01 per share: authorized, 120,000,000 shares; issued 88,584,577 shares in 2019 and 80,735,320 shares in 2018; outstanding 82,053,697 shares in 2019 and 74,008,815 shares in 2018
865,669

 
785,220

Additional paid-in capital
344,248,350

 
334,491,397

Treasury stock (4,513,256 shares in 2019 and 2018, at cost)
(17,238,669
)
 
(17,238,669
)
Accumulated other comprehensive income
1,883,090

 
1,554,587

Accumulated deficit
(293,947,437
)
 
(271,730,661
)
Total Kopin Corporation stockholders’ equity
35,811,003

 
47,861,874

Noncontrolling interest
5,425

 
(149,053
)
Total stockholders’ equity
35,816,428

 
47,712,821

Total liabilities and stockholders’ equity
$
51,352,347

 
$
59,549,111


See notes to unaudited condensed consolidated financial statements

3

Table of Contents



KOPIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three Months Ended
 
Nine Months Ended
 
September 28, 2019
 
September 29, 2018
 
September 28, 2019
 
September 29, 2018
Revenues:
 
 
 
 
 
 
 
Net product revenues
$
4,955,062

 
$
3,643,619

 
$
14,004,319

 
$
13,160,507

Research and development and other revenues
1,184,270

 
1,482,711

 
6,788,071

 
3,563,341

 
6,139,332

 
5,126,330

 
20,792,390

 
16,723,848

Expenses:
 
 
 
 
 
 
 
Cost of product revenues
4,689,944

 
3,659,800

 
15,809,535

 
11,219,741

Research and development
2,389,573

 
4,599,266

 
10,686,491

 
13,577,075

Selling, general and administration
5,130,019

 
7,166,137

 
16,788,493

 
21,011,050

Impairment of goodwill
331,344

 

 
331,344

 

 
12,540,880

 
15,425,203

 
43,615,863

 
45,807,866

Loss from operations
(6,401,548
)
 
(10,298,873
)
 
(22,823,473
)
 
(29,084,018
)
Other (expense) income:
 
 
 
 
 
 
 
Interest income
120,645

 
160,875

 
438,316

 
486,239

Other (expense) income
(109,614
)
 
241,466

 
(330,821
)
 
1,360,822

Foreign currency transaction losses
(88,847
)
 
(227,447
)
 
(36,320
)
 
(254,615
)
Gain on investments

 

 
768,000

 
2,849,816

 
(77,816
)
 
174,894

 
839,175

 
4,442,262

Loss before tax (provision) benefit and net (income) loss attributable to noncontrolling interest
(6,479,364
)
 
(10,123,979
)
 
(21,984,298
)
 
(24,641,756
)
Tax (provision) benefit
(26,000
)
 
316,000

 
(78,000
)
 
115,000

Net loss
(6,505,364
)
 
(9,807,979
)
 
(22,062,298
)
 
(24,526,756
)
Net (income) loss attributable to noncontrolling interest
(120,094
)
 
16,596

 
(154,478
)
 
(41,862
)
Net loss attributable to Kopin Corporation
$
(6,625,458
)
 
$
(9,791,383
)
 
$
(22,216,776
)
 
$
(24,568,618
)
Net loss per share
 
 
 
 
 
 
 
Basic and diluted
$
(0.08
)
 
$
(0.13
)
 
$
(0.28
)
 
$
(0.34
)
Weighted average number of common shares outstanding
 
 
 
 
 
 
 
Basic and diluted
82,053,698

 
73,135,253

 
79,657,677

 
73,102,979

See notes to unaudited condensed consolidated financial statements

4

Table of Contents


KOPIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 28, 2019
 
September 29, 2018
 
September 28, 2019
 
September 29, 2018
Net loss
$
(6,505,364
)
 
$
(9,807,979
)
 
$
(22,062,298
)
 
$
(24,526,756
)
Other comprehensive income (loss), net of tax:
 
 
 
 
 
 
 
 
Foreign currency translation adjustments
(21,163
)
 
68,891

 
(22,201
)
 
(266,807
)
 
Unrealized holding gains (losses) on marketable securities
39,967

 
(103,212
)
 
366,224

 
(313,348
)
 
Reclassification of holding (losses) gains in net loss
(8,086
)
 
27,620

 
(15,520
)
 
25,852

Other comprehensive income (loss), net of tax
10,718

 
(6,701
)
 
328,503

 
(554,303
)
Comprehensive loss
(6,494,646
)
 
(9,814,680
)
 
(21,733,795
)
 
(25,081,059
)
Comprehensive (income) loss attributable to the noncontrolling interest
(120,094
)
 
13,788

 
(154,478
)
 
(15,658
)
Comprehensive loss attributable to Kopin Corporation
$
(6,614,740
)
 
$
(9,800,892
)
 
$
(21,888,273
)
 
$
(25,096,717
)
See notes to unaudited condensed consolidated financial statements

5

Table of Contents




KOPIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited) 
 
Common Stock
 
Additional
Paid-in Capital
 
Treasury Stock
 
Accumulated
Other
Comprehensive Income
 
Accumulated Deficit
 
Total Kopin
Corporation
Stockholders’ Equity
 
Noncontrolling Interest
 
Total
Stockholders’ Equity
 
Shares
 
Amount
 
 
 
 
 
 
 
Balance, December 29, 2018
78,522,066

 
$
785,220

 
$
334,491,397

 
$
(17,238,669
)
 
$
1,554,587

 
$
(271,730,661
)
 
$
47,861,874

 
$
(149,053
)
 
$
47,712,821

Stock-based compensation

 

 
815,842

 

 

 

 
815,842

 

 
815,842

Vesting of restricted stock
10,000

 
100

 
(100
)
 

 

 

 

 

 

Repurchases of restricted stock to satisfy tax withholding obligations
(4,294
)
 
(43
)
 
(7,085
)
 

 

 

 
(7,128
)
 

 
(7,128
)
Other comprehensive income

 

 

 

 
97,317

 

 
97,317

 


97,317

Sale of registered stock
7,272,727

 
72,727

 
7,237,273

 

 

 

 
7,310,000

 

 
7,310,000

Net (loss) income

 

 

 

 

 
(11,330,927
)
 
(11,330,927
)
 
11,017

 
(11,319,910
)
Balance, March 30, 2019
85,800,499

 
858,004

 
342,537,327

 
(17,238,669
)
 
1,651,904

 
(283,061,588
)
 
44,746,978

 
(138,036
)
 
44,608,942

Stock-based compensation

 

 
538,474

 

 

 

 
538,474

 

 
538,474

Vesting of restricted stock
60,000

 
600

 
(600
)
 

 

 

 

 

 

Other comprehensive income

 

 

 

 
220,468

 

 
220,468

 

 
220,468

Sale of registered stock
706,454

 
7,065

 
721,466

 

 

 

 
728,531

 

 
728,531

Net (loss) income

 

 

 

 

 
(4,260,391
)
 
(4,260,391
)
 
23,367

 
(4,237,024
)
Balance, June 29, 2019
86,566,953

 
865,669

 
343,796,667

 
(17,238,669
)
 
1,872,372

 
(287,321,979
)
 
41,974,060

 
(114,669
)
 
41,859,391

Stock-based compensation

 

 
451,683

 

 

 

 
451,683

 

 
451,683

Other comprehensive income

 

 

 

 
10,718

 

 
10,718

 

 
10,718

Net (loss) income

 

 

 

 

 
(6,625,458
)
 
(6,625,458
)
 
120,094

 
(6,505,364
)
Balance, September 28, 2019
86,566,953

 
$
865,669

 
$
344,248,350

 
$
(17,238,669
)
 
$
1,883,090

 
$
(293,947,437
)
 
$
35,811,003

 
$
5,425

 
$
35,816,428


6

Table of Contents


 
Common Stock
 
Additional
Paid-in Capital
 
Treasury Stock
 
Accumulated
Other
Comprehensive Income
 
Accumulated Deficit
 
Total Kopin
Corporation
Stockholders’ Equity
 
Noncontrolling Interest
 
Total
Stockholders’ Equity
 
Shares
 
Amount
 
 
 
 
 
 
 
Balance, December 30, 2017
77,572,038

 
$
775,720

 
$
329,917,858

 
$
(17,238,669
)
 
$
3,564,779

 
$
(240,256,502
)
 
$
76,763,186

 
$
616,661

 
$
77,379,847

Stock-based compensation

 

 
1,399,415

 

 

 

 
1,399,415

 

 
1,399,415

Vesting of restricted stock
20,000

 
200

 
(200
)
 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 
(269,863
)
 

 
(269,863
)
 
3,759

 
(266,104
)
Adoption of accounting standards

 

 

 

 

 
3,059,382

 
3,059,382

 

 
3,059,382

Net (loss) income

 

 

 

 

 
(5,536,278
)
 
(5,536,278
)
 
64,174

 
(5,472,104
)
Balance, March 31, 2018
77,592,038

 
775,920

 
331,317,073

 
(17,238,669
)
 
3,294,916

 
(242,733,398
)
 
75,415,842

 
684,594

 
76,100,436

Stock-based compensation

 

 
1,288,374

 

 

 

 
1,288,374

 

 
1,288,374

Vesting of restricted stock
60,000

 
600

 
(600
)
 

 

 

 

 

 

Repurchases of restricted stock to satisfy tax withholding obligations
(3,530
)
 
(35
)
 
(11,368
)
 

 

 

 
(11,403
)
 

 
(11,403
)
Other comprehensive income (loss)

 

 

 

 
(248,725
)
 

 
(248,725
)
 
(32,772
)
 
(281,497
)
Net (loss) income

 

 

 

 

 
(9,240,957
)
 
(9,240,957
)
 
(5,716
)
 
(9,246,673
)
Balance, June 30, 2018
77,648,508

 
$
776,485

 
$
332,593,479

 
$
(17,238,669
)
 
$
3,046,191

 
$
(251,974,355
)
 
$
67,203,131

 
$
646,106

 
$
67,849,237

Stock-based compensation

 

 
1,190,830

 

 

 

 
1,190,830

 

 
1,190,830

Other comprehensive income (loss)

 

 

 

 
(9,510
)
 

 
(9,510
)
 
2,809

 
(6,701
)
Net (loss) income

 

 

 

 

 
(9,791,383
)
 
(9,791,383
)
 
(16,596
)
 
(9,807,979
)
Balance, September 29, 2018
77,648,508

 
776,485

 
333,784,309

 
(17,238,669
)
 
3,036,681

 
(261,765,738
)
 
58,593,068

 
632,319

 
59,225,387


See notes to unaudited condensed consolidated financial statements

7

Table of Contents


KOPIN CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Nine Months Ended
 
September 28, 2019
 
September 29, 2018
Cash flows used in operating activities:
 
 
 
Net loss
$
(22,062,298
)
 
$
(24,526,756
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
Depreciation and amortization
597,091

 
1,688,715

Stock-based compensation
1,805,999

 
3,878,619

Foreign currency losses
32,483

 
269,239

Change in allowance for bad debt
(56,997
)
 
(333,889
)
Gain on investments
(768,000
)
 
(2,849,816
)
Deferred income taxes
78,777

 
70,803

Loss on disposal of plant and equipment
487,284

 

Impairment of goodwill
331,344

 

Write-off of excess inventory
2,682,397

 

Other non-cash items
94,444

 
519,027

Changes in assets and liabilities, net of acquired assets and liabilities:
 
 
 
Accounts receivable
(1,786,687
)
 
1,504,218

Contract assets
2,043,724

 
1,619,875

Inventory
(1,338,233
)
 
(1,551,859
)
Prepaid expenses and other current assets
436,575

 
144,421

Accounts payable and accrued expenses
(427,603
)
 
(664,524
)
Contract liabilities and billings in excess of revenue earned
1,034,608

 
49,174

Net cash used in operating activities
(16,815,092
)
 
(20,182,753
)
Cash flows provided by investing activities:
 
 
 
Other assets
(106,524
)
 
(7,616
)
Capital expenditures
(113,009
)
 
(959,488
)
Proceeds from sale of marketable debt securities
5,954,139

 
21,858,785

Purchase of marketable debt securities

 
(4,910,630
)
Cash paid for equity investment
(2,500,000
)
 
(1,000,000
)
Net cash provided by investing activities
3,234,606

 
14,981,051

Cash flows provided by (used in) financing activities:
 
 
 
Sale of registered stock
8,038,531

 

Settlements of restricted stock for tax withholding obligations
(7,128
)
 
(11,403
)
Net cash provided by (used in) financing activities
8,031,403

 
(11,403
)
Effect of exchange rate changes on cash
(19,565
)
 
(268,074
)
Net decrease in cash and cash equivalents
(5,568,648
)
 
(5,481,179
)
Cash and cash equivalents:
 
 
 
Beginning of period
14,326,347

 
24,848,227

End of period
$
8,757,699

 
$
19,367,048

Supplemental disclosure of cash flow information:
 
 
 
Income taxes paid

 
1,300,000

See notes to unaudited condensed consolidated financial statements


8

Table of Contents



KOPIN CORPORATION
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.
BASIS OF PRESENTATION
The condensed consolidated financial statements of Kopin Corporation as of September 28, 2019 and for the three and nine month periods ended September 28, 2019 and September 29, 2018 are unaudited and include all adjustments that, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company's Annual Report on Form 10-K for the fiscal year ended December 29, 2018, as amended by Amendment No. 1 thereto on Form 10-K/A filed on November 7, 2019 (the “2018 Form 10-K/A”). The results of the Company's operations for any interim period are not necessarily indicative of the results of the Company's operations for any other interim period or for a full fiscal year. The Company reclassified certain prior period amounts herein to conform with the presentation of the aforementioned Amendment on Form 10-K/A. Specifically, the Company reclassified certain amounts from additional paid-in capital to accumulated deficit and/or noncontrolling interest as of December 29, 2018 and December 30, 2017, which impacts both the accompanying consolidated balance sheet as of December 29, 2018 and consolidated statements of stockholders’ equity as of December 29, 2018 and December 30, 2017. The reclassifications further impact the respective figures shown for these equity categories in the prior interim periods presented herein. As used in this report, the terms "we," "us," "our," "Kopin" and the "Company" mean Kopin Corporation and its subsidiaries, unless the context indicates another meaning.
Going Concern
The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company incurred net losses of $34.5 million and net cash outflows from operations of $28.1 million for the fiscal year ended 2018. The Company incurred a net loss of $22.1 million for the nine months ended September 28, 2019 and net cash outflows from operations of $16.8 million. In addition, the Company has experienced a significant decline in its cash and cash equivalents and marketable debt securities over the last several years, which was primarily a result of funding operating losses, of which a significant component relates to the Company’s investments in the research and development of Wearable products. The Company had $26.0 million of cash and cash equivalents and marketable debt securities at September 28, 2019. The Company's historical and current use of cash in operations combined with limited liquidity resources raise substantial doubt regarding the Company’s ability to continue as a going concern.
The Company’s products target the industrial wearable headset and military markets. Management believes the industrial wearable market is still developing and cannot predict how long the wearable market will take to develop or if the Company’s products will be accepted. Accordingly, the Company’s current strategy is to continue to invest in research and development, even during unprofitable periods, which has resulted in the Company continuing to incur net losses and negative cash flows from operations. As the Company continues to incur negative cash flows from operations, its financial condition will be materially adversely affected. As such, management is actively pursuing strategic alternatives including the reduction of operating expenses and raising additional capital, among other things. While there can be no assurance the Company will be able to successfully reduce operating expenses or raise additional capital, management believes it has sufficient cash for operations through the end of fiscal 2020, based on management’s historical success in managing cash flows and obtaining capital.
These condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

9

Table of Contents


2.
ACCOUNTING STANDARDS
Recently Adopted Accounting Standards
In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842), which requires lessees to recognize operating lease right-of-use assets and lease liability for most lease arrangements. Effective December 30, 2018, the Company adopted the requirements of the new lease standard using the modified retrospective approach, applying the new lease requirements at the beginning of fiscal year 2019. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allows us to carry forward the historical lease classification. The Company did not elect the practical expedient to use hindsight in determining the lease term and in assessing impairment of right-of-use assets. The standard resulted in the recognition of operating lease right-of-use assets of $3.7 million and operating lease liabilities of $3.8 million, of which $1.0 million was classified as current at the beginning of fiscal year 2019. The standard had no material impact on the Company's results of operations or cash flows and there was no cumulative impact on accumulated deficit as of December 30, 2018. In addition, new disclosures are provided to enable readers to assess the amount, timing and uncertainty of cash flows arising from leases.
Significant Accounting Policies Update
The Company's significant accounting policies are detailed in "Note 1: Summary of Significant Accounting Policies" of our 2018 Form 10-K/A. Effective December 30, 2018, the Company adopted the requirements of ASU 2016-02, Leases (Topic 842) using the modified retrospective approach as discussed below. The Company reclassified certain balance sheet accounts to conform to the Company's current period presentation. All amounts disclosed in this Form 10-Q reflect these changes.
Leases
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. On December 30, 2018, the discount rate used on existing leases at adoption was determined based on the remaining lease term using available data as of that date. For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term including any reasonably certain renewal periods.
Some of our leases include options to extend or terminate the lease. The Company includes these options in the recognition of the Company's ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option. In most cases, the Company has concluded that renewal and early termination options are not reasonably certain of being exercised by the Company (and thus not included in our ROU asset and lease liability) unless there is an economic, financial or business reason to do so. None of our leases include variable lease-related payments, such as escalation clauses based on the consumer price index ("CPI") rates or residual guarantees.
Accounting Standards Issued But Not Yet Adopted
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement (“ASU 2018-13”), which adds, amends and removes certain disclosure requirements related to fair value measurements. Among other changes, this standard requires certain additional disclosure surrounding Level 3 assets, including changes in unrealized gains or losses in other comprehensive income and certain inputs in those measurements. ASU 2018-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Certain amended or eliminated disclosures in this standard may be adopted early, while certain additional disclosure requirements in this standard can be adopted on its effective date. In addition, certain changes in the standard require retrospective adoption, while other changes must be adopted prospectively. The Company is currently evaluating ASU 2018-13 and its impact on our consolidated financial statements.


10

Table of Contents


3.
CASH AND CASH EQUIVALENTS AND MARKETABLE DEBT SECURITIES
The Company considers all highly liquid, short-term debt instruments with original maturities of three months or less to be cash equivalents.
Marketable debt securities consist primarily of commercial paper, medium-term corporate notes, and U.S. government and agency backed securities. The Company classifies these marketable debt securities as available-for-sale at fair value in “Marketable debt securities, at fair value.” The Company records the amortization of premium and accretion of discounts on marketable debt securities in the results of operations.
The Company uses the specific identification method as a basis for determining cost and calculating realized gains and losses with respect to marketable debt securities. The gross gains and losses realized related to sales and maturities of marketable debt securities were not material during the three and nine months ended September 28, 2019 and the fiscal year ended December 29, 2018.
Investments in available-for-sale marketable debt securities were as follows at September 28, 2019 and December 29, 2018:
 
Amortized Cost

Unrealized Losses

Fair Value
 
2019

2018

2019

2018

2019

2018
U.S. government and agency backed securities
$
9,305,150


$
13,064,418


$
(5,730
)

$
(253,495
)

$
9,299,420


$
12,810,923

Corporate debt
7,960,963

 
10,175,084

 
(1,879
)
 
(67,991
)
 
7,959,084

 
10,107,093

Total
$
17,266,113

 
$
23,239,502

 
$
(7,609
)
 
$
(321,486
)
 
$
17,258,504

 
$
22,918,016


The contractual maturity of the Company’s marketable debt securities was as follows at September 28, 2019:
 
Less than
One year
 
One to
Five years
 
Total
U.S. government and agency backed securities
$
298,320

 
$
9,001,100

 
$
9,299,420

Corporate debt
2,501,675

 
5,457,409

 
7,959,084

Total
$
2,799,995

 
$
14,458,509

 
$
17,258,504



11

Table of Contents


4.
FAIR VALUE MEASUREMENTS
Financial instruments are categorized as Level 1, Level 2 or Level 3 based upon the method by which their fair value is computed. An investment is categorized as Level 1 when its fair value is based on unadjusted quoted prices in active markets for identical assets that the Company has the ability to access at the measurement date. An investment is categorized as Level 2 if its fair market value is based on quoted market prices for similar assets in active markets, quoted prices for identical or similar assets in markets that are not active, based on observable inputs such as interest rates, yield curves, or derived from or corroborated by observable market data by correlation or other means. An investment is categorized as Level 3 if its fair value is based on assumptions developed by the Company about what a market participant would use in pricing the assets.
The following table details the fair value measurements of the Company’s financial assets:
 
 
 
Fair Value Measurement September 28, 2019 Using:
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash and Cash Equivalents
$
8,757,699

 
$
8,757,699

 
$

 
$

U.S. Government Securities
9,299,420