Other Assets and Amounts Due To / Due From Affiliates

Other assets consist of the following as of December 29, 2012 and December 31, 2011:



	2012		2011
Marketable Equity Securities
AWSC	$	1,764,657	$	1,602,096
WIN	1,410,388		1,709,189
Non-Marketable Securities—Equity Method Investments
KoBrite	1,828,404		2,401,669
Non-Marketable Securities-Cost Based Investments	3,485,394		1,980,609
Other	119,039		252,524
	$	8,607,882	$	7,946,087

Marketable Equity Securities

As of December 29, 2012 and December 31, 2011 the Company had an investment in AWSC, with a fair market value of $1.8 million and $1.6 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 reflected in discontinued operations:



	2012		2011		2010
AWSC	$	8,192,000	$	11,800,000	$	14,466,000

As of December 29, 2012 the Company was owed $0.5 million from AWSC and $0.1 million from other related parties. As of December 31, 2011, the Company was owed $1.1 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 29, 2012 and December 31, 2011, the Company had an investment in WIN, with a fair market value of $1.4 million and $1.7 million, respectively. The adjusted cost basis of the WIN investment is $0. In the twelve month period ended December 29, 2012 the Company sold 500,000 shares of WIN and recorded a gain of $0.9 million.

AWSC and WIN are listed on the Gre Tai Securities Market 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 in unconsolidated affiliates recorded in the consolidated statement of operations are as follows:



	2012			2011			2010
KoBrite	$	(573,265	)	$	(296,451	)	$	(600,299	)
Ikanos	(106,322		)	—			—
Total	$	(679,587	)	$	(296,451	)	$	(600,299	)

The Company has an approximate 12% interest in KoBrite at December 29, 2012. The Company accounts for its interest using the equity method and at December 29, 2012 the carrying value of the investment was $1.8 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.

During the three month period ended March 31, 2012 the Company acquired a 25% interest in Ikanos, a private company, for $0.7 million. On July 10, 2012, the Company invested an additional $2.5 million, which increased the Company’s interest in Ikanos to 51%. For the six month period ended June 30, 2012 the Company recorded the results of operation of Ikanos on the equity method of accounting and commencing in the third quarter of 2012 the Company consolidated Ikanos.

Summarized financial information for KoBrite for the years ended September 30, 2012, 2011 and 2010 and Ikanos, operating results only, for the six month period January 1, 2012 through June 30, 2012 are as follows:



	2012			2011			2010
Current assets	$	9,581,000		$	12,468,000		$	8,952,000
Noncurrent assets	12,701,000			15,927,000			15,389,000
Current liabilities	1,215,000			5,397,000			9,052,000
Revenues	6,010,000			7,938,000			12,288,000
Margin loss	(2,732,000		)	(794,000		)	(1,316,000		)
Loss from operations	(4,938,000		)	(2,685,000		)	(3,292,000		)
Net loss	(5,308,000		)	(2,526,000		)	(3,091,000		)

Non-Marketable Securities—Cost Method Investments

During the twelve months ended December 29, 2012, the Company acquired a 5% interest in a private company for $1.0 million. Subsequent to year end the Company acquired an additional 10% for $900,000. If the private company achieves certain development milestones, the Company is obligated to acquire up to an additional 7.5% interest in the private company for approximately $1.0 million. In addition, for an eight month period after the achievement of all of the development milestones, the Company has the right to acquire an additional 10% interest in the private company for $2.0 million or the private company can require the Company to purchase an additional 25% interest for $2.0 million

In 2011, the Company invested approximately $2.0 million in a private company which makes display related products and in 2012 the Company invested an additional $0.5 million in the company.

The Company has a loan to a non-officer employee for approximately $140,000 at December 29, 2012, 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 as of December 29, 2012. 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 and 2010 the Company recorded $0.2 million and $0.8 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 monetize these assets.

Subsequent to year end the Company acquired the assets of Aurisound, a private company, for approximately $1.8 million and in connection with the acquisition the Company offered employment to Aurisound's founder. The employment offer, which was accepted, included the issuance of 400,000 share of the Company's common stock. 100,000 shares were immediately vested and 300,000 shares will vest upon the achievement of certain milestones.