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OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
 6 Months Ended
Jun. 29, 2013
Other Assets and Related Party Transactions Disclosure [Abstract]  
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
OTHER ASSETS AND AMOUNTS DUE TO / FROM AFFILIATES
Marketable Equity Securities
As of June 29, 2013 and December 29, 2012, the Company had an investment in AWSC, with a fair market value of $1.2 million and $1.8 million, respectively, and an adjusted cost basis of $0.7 million and $0.7 million, respectively. One of the Company’s directors is a director of AWSC and several directors of the Company own amounts ranging from 1.0% to 0.5% of the outstanding stock of AWSC.
As of June 29, 2013 and December 29, 2012, the Company had an investment in WIN, with a fair market value of $1.3 million and $1.4 million, respectively, and an adjusted cost basis of $0.
AWSC and WIN are listed on the Gre Tai Securities Exchange in Taiwan. The Company determines the fair market value of these investments based on the quoted prices from this exchange.
Non-Marketable Securities—Equity Method Investments
The Company has an approximate 12% ownership interest in KoBrite at June 29, 2013. The Company accounts for its interest using the equity method and at June 29, 2013 the carrying value of the investment was $1.6 million. One of the Company’s directors, who is the chairman of KTC, is a member of the Board of Directors of Bright LED, principal investor 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 income statements for the three and six month periods ended June 30, 2012 include the results of both KoBrite for the three month periods ended December 31, 2011 and March 31, 2012 (KoBrite's results are recorded one quarter in arrears) and Ikanos for the three and six month periods ended June 30, 2012. Summarized income statements for the three and six month periods ended June 29, 2013 include KoBrite's results for the three month period ended December 29, 2012 and March 30, 2013.
 
Three Months Ended
 
Six Months Ended
 
June 29,
2013
 
June 30,
2012
 
June 29,
2013
 
June 30,
2012
Revenue
$
1,312,000

 
$
1,170,000

 
$
2,375,000

 
$
2,915,000

Gross margin
(528,000
)
 
(653,000
)
 
(1,093,000
)
 
(885,000
)
Loss from operations
(885,000
)
 
(1,505,000
)
 
(1,872,000
)
 
(2,283,000
)
Net loss
$
(713,000
)
 
$
(1,532,000
)
 
$
(1,557,000
)
 
$
(2,843,000
)

In 2012, the Company acquired a 5% interest in a private company for $1.0 million and in January of 2013 the Company acquired an additional 10% for $900,000. If the private company achieves certain development milestones, the Company is obligated to acquire an additional 7.5% interest in the private company for a total of $1.9 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 an additional $2.0 million or the private company can require the Company to purchase an additional 25% interest for an additional $2.0 million. As of June 29, 2013, the Company is accounting for its investment using the cost method.
During the first quarter of 2013, the Company acquired four patents for $1.8 million and hired the patents' inventor. Upon commencement of employment the Company issued to the employee 400,000 shares of the Company's common stock, of which 100,000 shares were immediately vested and 300,000 shares will vest upon the achievement of certain milestones.
During the six months ended June 29, 2013, the Company recorded an impairment of $2.5 million related to the write-off of a cost based investment.