XML 30 R8.htm IDEA: XBRL DOCUMENT
v2.4.0.6

BASIS OF PRESENTATION | 9 Months Ended
--- | ---
Sep. 29, 2012
Organization, Consolidation, Presentation of Financial Statements and Error Corrections [Abstract] |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements include the accounts of Kopin Corporation, its wholly-owned subsidiaries, Kowon Technology Co., Ltd. (Kowon), a majority owned (78%) subsidiary located in Korea, Kopin Taiwan Corporation (KTC), a majority owned (90%) subsidiary located in Taiwan and Ikanos Consulting Ltd. (Ikanos) a (51%) owned subsidiary located in the United Kingdom (collectively the “Company”). Ownership interests of Kowon, KTC and Ikanos not attributable to the Company are referred to as noncontrolling interests. All intercompany transactions and balances have been eliminated. The condensed consolidated financial statements for the three and nine months ended September 29, 2012 and September 24, 2011 are unaudited and include all adjustments which, in the opinion of management, are necessary to present fairly the results of operations for the periods then ended. These condensed consolidated financial statements should be read in conjunction with the Company’s financial statements and notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. 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. Immaterial Restatement During the second quarter of 2012, the Company identified an error in the calculation of intercompany profit elimination in inventory for prior periods. While the Company believes the correction of this error is not material to its previously issued historical consolidated financial statements, the Company has restated certain balances within the condensed consolidated balance sheet as of December 31, 2011 to correct this error. The condensed consolidated statements of operations and comprehensive loss for the three and nine months ended September 24, 2011 and condensed consolidated statements of cash flows for the nine months ended September 24, 2011 were also corrected for this error. The effects of this restatement on the consolidated statements of operations for the three and nine months ended September 24, 2011 are as follows (in thousands):
| Three months ended September 24, 2011 |  | Nine months ended September 24, 2011
| As previously reported |  | Adjustment |  | As restated |  | As previously reported |  | Adjustment |  | As restated
Revenues: |  |  |  |  |  |  |  |  |  |  |
Net product revenues | $ | 28,512 |  |  | $ | — |  |  | $ | 28,512 |  |  | $ | 91,031 |  |  | $ | — |  |  | $ | 91,031 |
Research and development revenues | 1,054 |  |  | — |  |  | 1,054 |  |  | 4,901 |  |  | — |  |  | 4,901 |
Total revenues | 29,566 |  |  | — |  |  | 29,566 |  |  | 95,932 |  |  | — |  |  | 95,932 |
Expenses: |  |  |  |  |  |  |  |  |  |  |
Cost of product revenues | 19,046 |  |  | 707 |  |  | 19,753 |  |  | 60,107 |  |  | 707 |  |  | 60,814 |
Research and development | 6,381 |  |  | — |  |  | 6,381 |  |  | 19,905 |  |  | — |  |  | 19,905 |
Selling, general and administrative | 4,352 |  |  | — |  |  | 4,352 |  |  | 13,495 |  |  | — |  |  | 13,495 |
| 29,779 |  |  | 707 |  |  | 30,486 |  |  | 93,507 |  |  | 707 |  |  | 94,214 |
(Loss) income from operations | (213 | ) |  | (707 | ) |  | (920 | ) |  | 2,425 |  |  | (707 | ) |  | 1,718 |
Other income and expense: |  |  |  |  |  |  |  |  |  |  |
Interest income | 358 |  |  | — |  |  | 358 |  |  | 987 |  |  | — |  |  | 987 |
Other income net | 190 |  |  | — |  |  | 190 |  |  | 190 |  |  | — |  |  | 190 |
Foreign currency gains | 1,013 |  |  | — |  |  | 1,013 |  |  | 375 |  |  | — |  |  | 375 |
Gain of sale of investments | — |  |  | — |  |  | — |  |  | 369 |  |  | — |  |  | 369 |
Impairment of marketable debt securities | (151 | ) |  | — |  |  | (151 | ) |  | (151 | ) |  | — |  |  | (151 | )
Gain on sale of patents | — |  |  | — |  |  | — |  |  | 156 |  |  | — |  |  | 156 |
| 1,410 |  |  | — |  |  | 1,410 |  |  | 1,926 |  |  | — |  |  | 1,926 |
Income (loss) before provision for income taxes, equity losses in unconsolidated affiliates and net income (loss) of noncontrolling interest | 1,197 |  |  | (707 | ) |  | 490 |  |  | 4,351 |  |  | (707 | ) |  | 3,644 |
Tax provision | (98 | ) |  | — |  |  | (98 | ) |  | (293 | ) |  | — |  |  | (293 | )
Income (loss) before equity losses in unconsolidated affiliates and net income (loss) of noncontrolling interest | 1,099 |  |  | (707 | ) |  | 392 |  |  | 4,058 |  |  | (707 | ) |  | 3,351 |
Equity losses in unconsolidated affiliates | (50 | ) |  | — |  |  | (50 | ) |  | (204 | ) |  | — |  |  | (204 | )
Net income (loss) | 1,049 |  |  | (707 | ) |  | 342 |  |  | 3,854 |  |  | (707 | ) |  | 3,147 |
Net (income) loss attributable to the noncontrolling interest | (254 | ) |  | 69 |  |  | (185 | ) |  | (188 | ) |  | 69 |  |  | (119 | )
Net income (loss) attributable to the controlling interest | $ | 795 |  |  | $ | (638 | ) |  | $ | 157 |  |  | $ | 3,666 |  |  | $ | (638 | ) |  | $ | 3,028 |
Net income per share: |  |  |  |  |  |  |  |  |  |  |
Basic | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | 0.00 |  |  | $ | 0.06 |  |  | $ | (0.01 | ) |  | $ | 0.05 |
Diluted | $ | 0.01 |  |  | $ | (0.01 | ) |  | $ | 0.00 |  |  | $ | 0.06 |  |  | $ | (0.01 | ) |  | $ | 0.05 |
Weighted average number of common shares: |  |  |  |  |  |  |  |  |  |  |
Basic | 64,292 |  |  |  |  | 64,292 |  |  | 64,519 |  |  |  |  | 64,519 |
Diluted | 65,441 |  |  |  |  | 65,441 |  |  | 65,624 |  |  |  |  | 65,624 |
This error resulted in a decrease to net income of ($0.7) million and changes in inventory of $0.7 million within the condensed consolidated statements of cash flows for the nine months ended September 24, 2011. This error did not result in any changes to net cash flows from operating, investing or financing activities. This error resulted in a ($0.7) million increase in comprehensive loss for the three and nine months ended September 24, 2011. The effects of this restatement on the consolidated balance sheet as of December 31, 2011 are as follows (in thousands):
| December 31, 2011 as previously reported |  |  |  | December 31, 2011 as restated
|  | Adjustment |
ASSETS |  |  |  |  |
Current assets: |  |  |  |  |
Cash and equivalents | $ | 43,095 |  |  | $ | — |  |  | $ | 43,095 |
Marketable debt securities, at fair value | 62,323 |  |  | — |  |  | 62,323 |
Accounts receivable, net of allowance of $513,000 in 2011 | 16,511 |  |  | — |  |  | 16,511 |
Accounts receivable from unconsolidated affiliates | 1,341 |  |  | — |  |  | 1,341 |
Unbilled receivable | 36 |  |  | — |  |  | 36 |
Inventory | 21,416 |  |  | (947 | ) |  | 20,469 |
Prepaid taxes | 412 |  |  | 256 |  |  | 668 |
Prepaid expenses and other current assets | 1,294 |  |  | — |  |  | 1,294 |
Total current assets | 146,428 |  |  | (691 | ) |  | 145,737 |
Property, plant & equipment, net | 32,369 |  |  | — |  |  | 32,369 |
Deferred tax assets | 4,202 |  |  | — |  |  | 4,202 |
Goodwill | 1,665 |  |  | — |  |  | 1,665 |
Intangible assets | 1,954 |  |  | — |  |  | 1,954 |
Other assets | 7,946 |  |  | — |  |  | 7,946 |
Total assets | $ | 194,564 |  |  | $ | (691 | ) |  | $ | 193,873 |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
Current Liabilities: |  |  |  |  |
Accounts payable | $ | 12,385 |  |  | $ | — |  |  | $ | 12,385 |
Accrued payroll and expenses | 4,183 |  |  | — |  |  | 4,183 |
Accrued warranty | 1,318 |  |  | — |  |  | 1,318 |
Billings in excess of revenue earned | 2,467 |  |  | — |  |  | 2,467 |
Other accrued liabilities | 2,127 |  |  | — |  |  | 2,127 |
Total current liabilities | 22,480 |  |  | — |  |  | 22,480 |
Asset Retirement obligations | 1,296 |  |  | — |  |  | 1,296 |
Commitments and contingencies |  |  |  |  |  |
Stockholders’ equity: |  |  |  |  |
Preferred stock |  |  |  |  | — |
Common stock | 732 |  |  | — |  |  | 732 |
Additional paid-in capital | 315,710 |  |  | — |  |  | 315,710 |
Treasury stock | (30,995 | ) |  | — |  |  | (30,995 | )
Accumulated other comprehensive income | 4,146 |  |  | — |  |  | 4,146 |
Accumulated deficit | (124,008 | ) |  | (623 | ) |  | (124,631 | )
Total Kopin Corporation stockholders’ equity | 165,585 |  |  | (623 | ) |  | 164,962 |
Non controlling interest | 5,203 |  |  | (68 | ) |  | 5,135 |
Total stockholder’ equity | 170,788 |  |  | (691 | ) |  | 170,097 |
Total liabilities and stockholders’ equity | $ | 194,564 |  |  | $ | (691 | ) |  | $ | 193,873 |

X
- Details
Name: | kopn_OrganizationConsolidationPresentationOfFinancialStatementsAndErrorCorrectionsAbstract
Namespace Prefix: | kopn_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). + References No definition available. + Details
Name: | us-gaap_BasisOfAccounting
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration