XML 50 R18.htm IDEA: XBRL DOCUMENT
v3.19.3

LEASES AND COMMITMENTS (Notes) | 9 Months Ended
--- | ---
Sep. 28, 2019
Commitments and Contingencies Disclosure [Abstract] |
Commitments Disclosure [Text Block] | Commitments The Company entered into an agreement in August 2017 to acquire an approximate 3.5% e quity interest in Kunming BOE Display Technology Co., Ltd. ("BOE"), which is located in China, for 35.0 million Chinese Yuan Renminbi (approximately $4.9 million). The purpose of the BOE equity offering is to raise funds to build an Organic Light Emitting Diode ("OLED") manufacturing facility. The Company is currently developing OLED products and its strategy is to use a fabless business model. Accordingly, the Company intends to use the BOE facility to manufacture its products. The Company's sole obligation under this agreement is to make this capital contribution. The Company previously has been unable to make the scheduled capital contribution due to Chinese laws, which had restrictions on direct foreign investment. Per the agreement, if Kopin is unable to make the scheduled capital contribution, it may be required to pay damages of 0.05% per day based on the unpaid portion of the capital contribution until the obligation is satisfied. The Company is currently assessing legal alternatives in connection with its investment obligation. The Company has accrued $0.6 million in penalties related to this agreement as of September 28, 2019. The Company and BOE are in discussions to determine alternatives, including a reduction in penalties, or to enable the Company to make the capital contribution.
LEASES | 11. LEASES AND COMMITMENTS Leases The Company enters into operating leases primarily for manufacturing, engineering, research, administration and sales facilities, and information technology ("IT") equipment. At September 28, 2019 and December 29, 2018, the Company did not have any finance leases. Approximately 100% of our future lease commitments, and related lease liability, relate to the Company's facility leases. Some of the Company's leases include options to extend or terminate the lease. The components of lease expense were as follows:
| Three Months Ended |  | Nine Months Ended
| September 28, 2019 |  | September 29, 2018 |  | September 28, 2019 |  | September 29, 2018
Operating lease cost | $ | 293,251 |  |  | $ | 359,574 |  |  | $ | 884,499 |  |  | $ | 1,078,714 |
At September 28, 2019, the Company's future lease payments under non-cancellable leases were as follows:
2019 (excluding the nine months ended September 28, 2019) |  | $ | 304,877 |
2020 |  | 1,262,048 |
2021 |  | 1,055,419 |
2022 |  | 653,234 |
2023 |  | 201,333 |
Thereafter |  | — |
Total future lease payments |  | 3,476,911 |
Less imputed interest |  | (318,414 | )
Total |  | $ | 3,158,497 |
The Company's lease liabilities recognized in the Company's condensed consolidated balance sheets at September 28, 2019 were as follows:
|  |  | September 28, 2019
Operating lease liabilities—current |  | $ | 1,081,252 |
Operating lease liabilities—noncurrent |  | 2,077,245 |
Total lease liabilities |  | $ | 3,158,497 |
Supplemental cash flow information related to leases was as follows:
|  | Nine months ended
|  | September 28, 2019
Cash paid for amounts included in the measurement of operating lease liabilities |  | $ | 887,374 |
Other information related to leases was as follows:
|  |  | September 28, 2019
Weighted Average Discount Rate—Operating Leases |  | 6.03 | %
Weighted Average Remaining Lease Term—Operating Leases (in years) |  | 3.0 |
Prior to December 30, 2018, the Company accounted for its leases in accordance with Topic 840, Leases. At December 29, 2018, the Company was committed under operating leases for buildings, office space and equipment, which expired at various dates. As previously disclosed in our 2018 Form 10-K/A and under previous lease guidance, future minimum lease payments under non-cancelable operating leases as of December 29, 2018 were as follows:
Fiscal year ending, |  | Amount
2019 |  | $ | 1,210,000 |
2020 |  | 1,112,000 |
2021 |  | 921,000 |
2022 |  | 616,000 |
2023 |  | 201,000 |
Thereafter |  | — |
Total |  | $ | 4,060,000 |

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 + Details
Name: | us-gaap_CommitmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
Name: | us-gaap_LeasesOfLesseeDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration