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Stockholders' Equity and Stock-Based Compensation | 12 Months Ended
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Dec. 29, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stockholders' Equity and Stock-Based Compensation | Stockholders’ Equity and Stock-Based Compensation Sale of Unregistered Common Stock On April 20, 2017, the Company sold 7,589,000 shares of unregistered common stock to Goertek, Inc. for $24,664,250 ($3.25 per share). This represented approximately 10.1% of Kopin’s total outstanding shares of common stock as of the date of purchase. In addition, Kopin and Goertek have entered into agreements to jointly develop and commercialize a range of technologies and wearable products. Goertek is a leading innovative global technology company headquartered in Weifang, China that designs and manufactures a range of consumer electronics products for brand customers including wearables, virtual and augmented reality headsets, and audio products. The transaction was accounted for under ASC 505-30 "Treasury Stock", and the loss on the sale of the treasury stock of approximately $0.8 million was charged to retained earnings. At completion of the transaction, the U.S. government requested certain information regarding the transaction for the Committee on Foreign Investment. See Note 16. Related Party Transactions for additional discussion around agreements with Goertek. Restricted Stock Awards In 2010, the Company adopted a 2010 Equity Incentive Plan ("2010 Equity Plan") which authorized the issuance of shares of common stock to employees, non-employees, and the Board. The 2010 Equity Plan was a successor to the Company’s 2001 Equity Incentive Plan ("2001 Equity Plan") and has been subsequently amended to increase the number of authorized shares to 14,100,000 as of December 29, 2018. The number of shares authorized under the 2010 Equity Plan is the number of shares approved by the shareholders plus the number of shares of common stock which were available for grant under the 2001 Equity Plan, the number of shares of common stock which were the subject of awards outstanding under the 2001 Equity Plan and are forfeited, terminated, canceled or expire after the adoption of the 2010 Equity Plan and the number of shares of common stock delivered to the Company either in exercise of an 2001 Equity Plan award or in satisfaction of a tax withholding obligation. The term and vesting period for restricted stock awards granted under the 2010 Equity Plan are determined by the Board’s compensation committee. As of December 29, 2018, the Company has approximately 1.7 million shares of common stock authorized and available for issuance under the Company’s 2010 Equity Plan. The fair value of non-vested restricted common stock awards is generally the market value of the Company’s common stock on the date of grant. The non-vested restricted common stock awards require the employee to fulfill certain obligations, including remaining employed by the Company for one, two or four years (the vesting period) and in certain cases also require meeting either performance criteria or the Company’s stock achieving a certain price. For non-vested restricted common stock awards that solely require the recipient to remain employed with the Company, the stock compensation expense is amortized over the anticipated service period. For non-vested restricted common stock awards that require the achievement of performance criteria, the Company reviews the probability of achieving the performance goals on a periodic basis. If the Company determines that it is probable that the performance criteria will be achieved, the amount of compensation cost derived for the performance goal is amortized over the anticipated service period. If the performance criteria are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed.
| Shares |  | Weighted Average Grant Fair Value
Outstanding at December 26, 2015 | 2,192,016 |  |  | $ | 3.82 |
Granted | 1,663,000 |  |  | 2.40 |
Forfeited | (110,500 | ) |  | 3.21 |
Vested | (736,842 | ) |  | 3.17 |
Outstanding at December 31, 2016 | 3,007,674 |  |  | 3.21 |
Granted | 1,152,000 |  |  | 3.40 |
Forfeited | (465,150 | ) |  | 3.82 |
Vested | (1,065,250 | ) |  | 2.90 |
Balance at December 30, 2017 | 2,629,274 |  |  | 3.31 |
Granted | 1,549,000 |  |  | 2.25 |
Forfeited | (872,025 | ) |  | 3.78 |
Vested | (1,093,000 | ) |  | 3.05 |
Balance at December 29, 2018 | 2,213,249 |  |  | $ | 2.51 |
On December 31, 2017 (fiscal year beginning 2018), the Company amended the employment agreement with our CEO Dr. John Fan to expire on December 31, 2020 and as part of the amendment issued restricted stock grants. 640,000 shares of restricted stock which will vest upon the first 20 consecutive trading day period following the grant date during which the Company's common stock trades at a price equal to or greater than $5.25, 150,000 shares of restricted stock will vest at the end of the first 20 consecutive trading day period following the grant date during which the Company’s common stock trades at a price per share equal to or greater than $6.00, and 150,000 shares of restricted common stock will vest at the end of the first 20 consecutive trading day period following the grant date during which the Company’s common stock trades at a price per share equal to or greater than $7.00. All of the grants are subject to certain acceleration events and terminate on December 31, 2020.
| For the period ended December 29, 2018
Performance price target | $ | 5.25 |  |  | $ | 6.00 |  |  | $ | 7.00 |
Expected volatility | 48.3 | % |  | 48.3 | % |  | 48.3 | %
Interest rate | 1.97 | % |  | 1.97 | % |  | 1.97 | %
Expected life (years) | 2 |  |  | 2 |  |  | 2 |
Dividend yield | — | % |  | — | % |  | — | %
Stock-Based Compensation The following table summarizes stock-based compensation expense within each of the categories below as it relates to non-vested restricted common stock awards for the fiscal years 2018, 2017 and 2016 (no tax benefits were recognized):
| 2018 |  | 2017 |  | 2016
Cost of product revenues | $ | 418,605 |  |  | $ | 490,481 |  |  | $ | 561,791 |
Research and development | 725,112 |  |  | 799,485 |  |  | 527,081 |
Selling, general and administrative | 3,647,337 |  |  | 1,006,165 |  |  | 1,336,454 |
Total | $ | 4,791,054 |  |  | $ | 2,296,131 |  |  | $ | 2,425,326 |
Unrecognized compensation expense for non-vested restricted common stock as of December 29, 2018 totaled $3.4 million and is expected to be recognized over a weighted average period of approximately two years.

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 + Details
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