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Income Taxes (Tables)

12 Months Ended

Dec. 29, 2018

Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]

Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block]

The following table sets forth the changes in Kopin's balance of unrecognized tax benefits for the year ended:

	Total
Unrecognized tax benefits at December 26, 2016	$	374,000
Gross increases—prior year tax positions	20,000
Unrecognized tax benefits at December 30, 2017	394,000
Gross increases—current year tax positions	—
Unrecognized tax benefits at December 29, 2018	$	394,000

Schedule of Components of Income Tax Expense (Benefit)

The (benefit) provision for income taxes from continuing operations consists of the following for the fiscal years indicated: 

	Fiscal Year
	2018				2017				2016
Current
State	$	5,000			$	5,000			$	33,000
Foreign	25,000				(568,000		)		1,656,000
Total current provision	30,000				(563,000		)		1,689,000
Deferred
Federal	(7,307,000		)		15,461,000				(8,718,000		)
State	(360,000		)		(493,000		)		(1,264,000		)
Foreign	300,000				(187,000		)		2,308,000
Change in valuation allowance	7,367,000				(17,181,000		)		9,115,000
Total (benefit) deferred provision	—				(2,400,000		)		1,441,000
Total provision (benefit) for income taxes	$	30,000			$	(2,963,000	)		$	3,130,000

Schedule of Effective Income Tax Rate Reconciliation

The actual income tax (benefit) provision reported from operations are different than those which would have been computed by applying the federal statutory tax rate to loss before income tax (benefit) provision. A reconciliation of income tax (benefit) provision from continuing operations as computed at the U.S. federal statutory income tax rate to the provision for income tax benefit is as follows:

	Fiscal Year
	2018				2017				2016
Tax provision at federal statutory rates	$	(7,515,000	)		$	(9,884,000	)		$	(6,965,000	)
State tax liability	5,000				5,000				22,000
Foreign deferred tax rate differential	(39,000		)		15,000				(678,000		)
Foreign withholding	301,000				(771,000		)		1,441,000
Outside basis in Kowon, net unremitted earnings	(468,000		)		(2,888,000		)		958,000
Permanent items	186,000				774,000				259,000
Increase in net state operating loss carryforwards	(406,000		)		(300,000		)		(502,000		)
Utilization of net operating losses for U.K. research and development refund	—				—				(142,000		)
Provision to tax return adjustments and tax rate change (1)	(76,000		)		24,833,000				(66,000		)
Tax credits	239,000				24,000				(762,000		)
Non-deductible 162M compensation limitations	13,000				199,000				—
Non-deductible equity compensation	290,000				1,901,000				(360,000		)
Uncertain tax position for transfer pricing	91,000				203,000				671,000
Other, net	45,000				107,000				139,000
Change in valuation allowance	7,364,000				(17,181,000		)		9,115,000
	$	30,000			$	(2,963,000	)		$	3,130,000

Schedule of Deferred Tax Assets and Liabilities

Deferred income taxes are provided to recognize the effect of temporary differences between tax and financial reporting. Deferred income tax assets and liabilities consist of the following: 

	Fiscal Year
	2018				2017
Deferred tax liability:
Foreign withholding liability	$	(538,000	)		$	(812,000	)
Foreign unremitted earnings	—				(468,000		)
Intangible assets	—				(259,000		)
Deferred tax assets:
Federal net operating loss carryforwards	41,755,000				34,555,000
State net operating loss carryforwards	3,114,000				2,708,000
Foreign net operating loss carryforwards	1,259,000				1,500,000
Equity awards	444,000				55,000
Tax credits	7,231,000				7,470,000
Property, plant and equipment	640,000				544,000
Unrealized losses on investments	1,848,000				1,792,000
Other	1,707,000				3,037,000
Net deferred tax assets	57,460,000				50,122,000
Valuation allowance	(58,006,000		)		(50,642,000		)
	$	(546,000	)		$	(520,000	)

X

- Definition

Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination.

+ References

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