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Other Assets and Amounts Due To / Due From Affiliates
 12 Months Ended
Dec. 31, 2011
Other Assets and Amounts Due To / Due From Affiliates

3.    Other Assets and Amounts Due To / Due From Affiliates

Other assets consist of the following as of December 31, 2011 and December 25, 2010:

 

     2011      2010  

Marketable Equity Securities

      

AWSC.

    $ 1,602,096       $ 4,001,937   

WIN

      1,709,189         —     

Non-Marketable Securities—Equity Method Investments

      

KoBrite

      2,401,669         2,698,120   

Non-Marketable Securities-Cost Based Investments

      1,980,609         —     

Other

      252,525         157,618   
  

 

 

     

 

 

  
   $ 7,946,087       $ 6,857,675   
  

 

 

     

 

 

  

Marketable Equity Securities

As of December 31, 2011 and December 25, 2010 the Company had an investment in AWSC, with a fair market value of $1.6 million and $4.0 million, respectively and an adjusted cost basis of $0.7 million and $0.7 million, respectively. During the second quarter of 2011 the Company sold 300,000 shares of AWSC and recorded a gain of $0.4 million.

The table below shows amounts sold by the Company (revenues) from AWSC:

 

     2011      2010      2009  

AWSC

    $ 11,800,000       $ 14,466,000       $ 8,641,000   
  

 

 

     

 

 

     

 

 

  

As of December 31, 2011 the Company was owed $1.1 million from AWSC and $0.2 million from other related parties. As of December 25, 2010, the Company was owed $2.6 million from AWSC.

 

One of the Company’s Directors is a director of AWSC and several directors and officers of Kopin own amounts ranging from 0.1% to 0.5% of the outstanding stock of AWSC.

As of December 31, 2011 the Company had an investment in WIN, with a fair market value of $1.7 million and an adjusted cost basis of $0. In 2011 WIN completed an initial public offering on a Taiwanese stock market. The investment is now classified as an available-for-sale marketable equity security and its fair market value is determined by reference to quoted market prices. The Company had previously written the investment off. As a result of the reclassification as an available for sale marketable security the Company recorded an unrealized gain of $1.7 million in accumulated other comprehensive income.

AWSC and WIN are listed on the Gre Tai stock exchange in Taiwan. The Company determines the fair market value of these investments based on the quoted prices from this exchange.

During the year ended December 25, 2010 the Company sold its investment in Micrel, Inc. for $2.2 million and recorded a gain of $0.7 million and sold shares of AWSC for $1.7 million and recorded a gain of $1.6 million. In addition, in 2010 the Company received and recorded a gain of $0.3 million representing an amount escrowed from the sale of the Company’s Kenet investment in 2008.

Non-Marketable Securities—Equity Method Investments

Equity (losses) gains in unconsolidated affiliates recorded in the consolidated statement of operations are as follows:

 

     2011     2010     2009  

KoBrite

    $ (296,451 )    $ (600,299 )    $ (341,219 ) 

KTC

      —          —          824,276   
  

 

 

    

 

 

    

 

 

  

Total

    $ (296,451 )    $ (600,299 )    $ 483,057   
  

 

 

    

 

 

    

 

 

  

The Company has an approximate 12% interest in KoBrite at December 31, 2011. The Company accounts for its interest using the equity method and at December 31, 2011 the carrying value of the investment was $2.4 million. KoBrite’s results are recorded one quarter in arrears. One of the Company’s Directors, who is the chairman of KTC, is a member of the Board of Directors of Bright LED, one of the other principal investors of KoBrite.

In the year ended December 27, 2008 the Company recorded equity losses of approximately $0.8 million and a loan loss reserve of approximately $1.2 million in connection with $2.0 million it loaned KTC in fiscal 2008. Subsequent to the close of the July 2009 acquisition of additional equity interest in KTC (described in Note 4) the loan was repaid and in 2009 the Company recorded a gain on the loan repayment of approximately $1.2 million and equity in earnings of unconsolidated affiliates of approximately $0.8 million.

Summarized financial information for KTC from the period January 1, 2010 to July 31, 2010 and the year ended December 31, 2009 and for KoBrite for the years ended September 30, 2011, 2010 and 2009 are as follows:

 

     2011     2010     2009  

Current assets

    $ 12,468,000      $ 8,952,000      $ 19,378,000   

Non current assets

      15,927,000        15,389,000        18,782,000   

Current liabilities

      5,397,000        9,052,000        12,487,000   

Revenues

      7,938,000        12,288,000        13,573,000   

Margin loss

      (794,000 )      (1,316,000 )      (389,000 ) 

Loss from operations

      (2,685,000 )      (3,292,000 )      (2,793,000 ) 

Net loss

    $ (2,526,000 )    $ (3,091,000 )    $ (2,410,000 ) 

 

Non-Marketable Securities—Cost Method Investments

In the fourth quarter of 2011 the Company invested approximately $2.0 million in a private company which makes display related products.

The Company has a loan to a non-officer employee for approximately $140,000 at December 31, 2011, which is currently due.

The Company has entered into agreements to sell certain patents which it is not using and that had a carrying value of $0. The total consideration the Company receives for the sale of the patents is a percentage of any sublicense fees, after expenses, the buyer received. In 2011, 2010 and 2009 the Company recorded $0.2 million, $0.8 million and $6.3 million of income, respectively, which represented the Company’s share of sublicense fees income. The Company does not expect to receive any material additional amounts from the sales of these patents. There is no additional consideration to be received for the patents sold. The Company continues to evaluate the patents in its portfolio for opportunities to moneterize these assets.