Other Assets and Note Receivable

Other assets consist of the following as of December 28, 2013 and December 29, 2012:



	2013		2012
Marketable Equity Securities
AWSC	$	—	$	1,764,657
WIN	—		1,410,388
Vuzix Corporation	1,433,102		—
Non-Marketable Securities—Equity Method Investments
KoBrite	1,421,592		1,828,404
Non-Marketable Securities-Cost Based Investments	—		3,485,394
Other	169,764		119,039
	$	3,024,458	$	8,607,882

Marketable Equity Securities

As of December 28, 2013, the Company had an investment in Vuzix with a fair market value of $1.4 million and an adjusted cost basis of $0. In 2013, the Company sold its investments in Advanced Wireless Semiconductor Company (AWSC) and WIN Semiconductor Corp. (WIN) for $1.2 million and $1.4 million, respectively, and recorded a gain on the sale of the investments of $1.9 million. As of December 29, 2012, the Company had an investment in WIN, with a fair market value of $1.4 million and an adjusted cost basis of $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. As of December 29, 2012, the Company had an investment in AWSC, with a fair market value of $1.8 million and an adjusted cost basis of $0.7 million.

The table below shows amounts sold by the Company (revenues) from AWSC which are reflected in discontinued operations:



	2013		2012		2011
AWSC	$	—	$	8,192,000	$	11,800,000

As of December 29, 2012 the Company was owed $0.5 million from AWSC and $0.1 million from other related parties.

Non-Marketable Securities—Equity Method Investments

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



	2013			2012			2011
KoBrite	$	(406,811	)	$	(573,265	)	$	(296,451	)
Ikanos	—			(106,322		)	—
Ask Ziggy	$	(218,287	)	$	—		$	—
Total	$	(625,098	)	$	(679,587	)	$	(296,451	)

The Company has an approximate 12% interest in KoBrite at December 28, 2013. The Company accounts for its interest using the equity method and at December 28, 2013 the carrying value of the investment was $1.4 million. KoBrite’s results are recorded one quarter in arrears. One of the Company’s Directors, who is the chairman of IQE Taiwan, is a member of the Board of Directors of Bright LED, one of the other principal investors of KoBrite.

During the three months 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.

In 2012, the Company acquired a 5% interest in a private company Ask Ziggy (AZ), for $1.0 million. In January and August of 2013, the Company acquired an additional 10% and 5.8% for $900,000 and $700,000, respectively. During the third quarter of 2013, AZ repurchased shares of its common stock from an unrelated third party stockholder and as a result the Company now owns approximately 23.0% of AZ. At December 28, 2013, the Company determined that the AZ investment of $2.5 million was impaired and wrote the investment down to $0. The Company has also entered into an agreement to purchase an additional 2.0% of AZ for $200,000 if certain milestones are achieved.

Summarized financial information for 2011 includes KoBrite for the year ended September 30, 2011. (Kobrite's results are recorded one quarter in arrears). Summarized financial information for 2012 includes Kobrite for the period ended September 30, 2012 and Ikanos, operating results only, for the six month period January 1, 2012 through June 30, 2012. Summarized financial information for 2013 includes Kobrite for the year ended September 30, 2013 and AZ for the five month period August 1, 2013 through December 28, 2013, and are as follows:



	2013			2012			2011
Current assets	$	7,769,000		$	9,581,000		$	12,468,000
Noncurrent assets	10,663,000			12,701,000			15,927,000
Current liabilities	1,207,000			1,215,000			5,397,000
Revenues	5,085,000			6,010,000			7,938,000
Margin loss	(2,501,000		)	(2,732,000		)	(794,000		)
Loss from operations	(6,114,000		)	(4,938,000		)	(2,685,000		)
Net loss	(5,526,000		)	(5,308,000		)	(2,526,000		)

The Company has a loan to a non-officer employee for approximately $140,000 at December 28, 2013, which is currently due.

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 twelve months ended December 28, 2013, the Company recorded impairment charges of $2.5 million related to the write-off of a cost based investment.

The Company has a $14.9 million receivable as a result of the sale of its III-V product line and investment in KTC which is due January 16, 2016. The receivable is collateralized by certain assets of the Buyer of III-V product line. The Buyer has outstanding debt and the repayment of the receivable is subject to the Buyer remaining within its debt compliance obligations at the time of repayment.