Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - KOPIN CORP | d470821d8k.htm |
Exhibit 99.1
KOPIN CORPORATION
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On January 15, 2013 (the “Closing Date”), Kopin Corporation (the “Company”) completed the sale of its III-V product line, including all of the outstanding equity interest in KTC Wireless, LLC, a wholly-owned subsidiary of the Company that held the Company’s investment in Kopin Taiwan Corporation (“KTC”), to IQE KC, LLC (“IQE”) and IQE plc (“Parent”, and collectively with IQE, the “Buyer”) pursuant to a Purchase Agreement (the “Purchase Agreement”) entered into on January 10, 2013 for an aggregate purchase price of approximately $75 million, subject to certain adjustments, including working capital adjustments and escrow (the “Sale”). Of the total consideration, $55 million was paid to the Company as of the Closing Date and $5 million was placed in escrow pending a final determination of adjustments and working capital as of the Closing Date. The remaining $15 million will be paid to the Company on the third anniversary of the Closing Date.
The following unaudited pro forma condensed consolidated financial statements are presented to comply with Article 11 of Regulation S-X and follow prescribed SEC regulations. The unaudited condensed consolidated pro forma financial statements do not purport to present what the Company’s results would have been had the disposition actually occurred on the dates indicated or to project what the Company’s results of operations or financial position would have been for any future period. The prescribed regulations limit pro forma adjustments to those that are directly attributable to the disposition on a factually supported basis. Consequently, the Company was not permitted within the condensed consolidated pro forma financial statements to allocate to the disposed operations any indirect corporate overhead or costs, such as administrative corporate functions or any other costs that were shared with the retained business of the Company. As a result such costs are not reflected in the pro forma adjustments and are included in the retained business of the Company. Additionally, the unaudited condensed consolidated pro forma financial statements do not include costs associated with transferring the assets, liabilities or contracts resulting from the Sale. The pro forma adjustments are described in the notes to the unaudited condensed consolidated pro forma financial statements.
The unaudited condensed consolidated pro forma financial statements have been prepared for informational purposes and to assist in the analysis of Company’s sale of its III-V product line assets and its investment in KTC to the Buyer. This information should be read together with the historical consolidated financial statements and related notes of Kopin included in its Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended September 29, 2012.
The unaudited pro forma condensed consolidated statements of operations for the nine months ended September 29, 2012 and the years ended December 31, 2011, December 25, 2010 and December 26, 2009, assume the Sale occurred on the first day of the earliest fiscal period presented. The unaudited pro forma condensed consolidated balance sheet as of September 29, 2012, assumes the Sale occurred on September 29, 2012. The unaudited pro forma condensed consolidated financial statements are derived from the historical consolidated financial statements of Kopin and are based on assumptions that management believes are reasonable in the circumstances.
Kopin Corporation
Unaudited Pro Forma Condensed Consolidated Balance Sheets
At September 29, 2012
| Kopin | Pro Forma Adjustments |
Pro Forma Kopin |
||||||||||||||
| ASSETS | ||||||||||||||||
| Current assets: |
||||||||||||||||
| Cash and equivalents |
$ | 25,263,239 | $ | 55,000,000 | (A | ) | $ | 80,263,239 | ||||||||
| Restricted cash held in escrow cash held in escrow |
— | 5,000,000 | (A | ) | 5,000,000 | |||||||||||
| Marketable debt securities, at fair value |
69,273,996 | — | 69,273,996 | |||||||||||||
| Accounts receivable, net of allowance of $454,000 |
12,293,195 | (8,038,792 | ) | (B | ) | 4,254,403 | ||||||||||
| Accounts receivable from unconsolidated affiliates |
2,072,892 | (1,990,772 | ) | (B | ) | 82,120 | ||||||||||
| Unbilled receivables |
587,652 | (9,129 | ) | (B | ) | 578,523 | ||||||||||
| Inventory |
19,684,989 | (13,461,679 | ) | (B | ) | 6,223,310 | ||||||||||
| Prepaid taxes |
878,320 | (335,239 | ) | (B | ) | 543,081 | ||||||||||
| Prepaid expenses and other current assets |
1,052,351 | (45,211 | ) | (B | ) | 1,007,140 | ||||||||||
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| Total current assets |
131,106,634 | 36,119,178 | 167,225,812 | |||||||||||||
| Property, plant and equipment, net |
33,710,208 | (25,395,984 | ) | (B | ) | 8,314,224 | ||||||||||
| Deferred tax assets, net |
3,472,437 | (3,472,437 | ) | (B | ) | — | ||||||||||
| Goodwill |
1,140,787 | — | 1,140,787 | |||||||||||||
| Intangible assets, net |
1,829,151 | — | 1,829,151 | |||||||||||||
| Note receivable |
— | 14,800,000 | (F | ) | 14,800,000 | |||||||||||
| Other assets |
9,287,486 | (48,171 | ) | (B | ) | 9,239,315 | ||||||||||
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| Total assets |
$ | 180,546,703 | $ | 22,002,586 | $ | 202,549,289 | ||||||||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Current liabilities: |
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| Accounts payable |
$ | 9,503,243 | $ | (6,252,531 | ) | (B | ) | $ | 3,250,712 | |||||||
| Accrued payroll and expenses |
3,037,011 | (1,553,006 | ) | (B | ) | 1,484,005 | ||||||||||
| Accrued warranty |
1,015,000 | (150,000 | ) | (B | ) | 865,000 | ||||||||||
| Billings in excess of revenue earned |
2,214,889 | — | 2,214,889 | |||||||||||||
| Other accrued liabilities |
4,925,003 | (1,114,923 | ) | (B | ) | 3,810,080 | ||||||||||
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| Total current liabilities |
20,695,146 | (9,070,460 | ) | 11,624,686 | ||||||||||||
| Asset retirement obligations |
1,144,773 | (820,624 | ) | (C | ) | 324,149 | ||||||||||
| Commitments and contingencies |
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| Stockholders’ equity: |
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| Preferred stock, par value $.01 per share: authorized, 3,000 shares; none issued |
— | — | — | |||||||||||||
| Common stock, par value $.01 per share: authorized, 120,000,000 shares; issued 76,156,551 shares; outstanding 63,414,292 |
732,754 | — | 732,754 | |||||||||||||
| Additional paid-in capital |
318,515,179 | — | 318,515,179 | |||||||||||||
| Treasury stock (9,861,139 shares, at cost) |
(34,450,978 | ) | — | (34,450,978 | ) | |||||||||||
| Accumulated other comprehensive income |
6,380,602 | (1,389,363 | ) | (D | ) | 4,991,239 | ||||||||||
| Accumulated deficit |
(139,132,141 | ) | 35,839,331 | (D | ) | (103,292,810 | ) | |||||||||
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| Total Kopin Corporation stockholders’ equity |
152,045,416 | 34,449,968 | 186,495,384 | |||||||||||||
| Noncontrolling interest |
6,661,368 | (2,556,298 | ) | (D | ) | 4,105,070 | ||||||||||
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| Total stockholders’ equity |
158,706,784 | 31,893,670 | 190,600,454 | |||||||||||||
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| Total liabilities and stockholders’ equity |
$ | 180,546,703 | $ | 22,002,586 | $ | 202,549,289 | ||||||||||
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The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.
Kopin Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
Nine Months Ended September 29, 2012
| Kopin | Pro Forma Adjustments |
Pro Forma Kopin |
||||||||||||||
| Revenues: |
||||||||||||||||
| Net product revenues |
$ | 67,449,979 | $ | (43,648,821 | ) | (E | ) | $ | 23,801,158 | |||||||
| Research and development revenues |
2,585,900 | (319,682 | ) | (E | ) | 2,266,218 | ||||||||||
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| 70,035,879 | (43,968,503 | ) | 26,067,376 | |||||||||||||
| Expenses: |
||||||||||||||||
| Cost of product revenues |
49,714,995 | (32,745,296 | ) | (E | ) | 16,969,699 | ||||||||||
| Research and development |
16,519,193 | (5,849,328 | ) | (E | ) | 10,669,865 | ||||||||||
| Selling, general and administration |
15,591,101 | (2,571,369 | ) | (E | ) | 13,019,732 | ||||||||||
| Impairment of goodwill |
1,704,770 | — | 1,704,770 | |||||||||||||
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| 83,530,059 | (41,165,993 | ) | 42,364,066 | |||||||||||||
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| Loss from continuing operations |
(13,494,180 | ) | (2,802,510 | ) | (16,296,690 | ) | ||||||||||
| Other income and expense: |
||||||||||||||||
| Interest income |
829,028 | 21,208 | (E | ) | 850,236 | |||||||||||
| Other income net |
290,114 | (119,550 | ) | (E | ) | 170,564 | ||||||||||
| Foreign currency transaction (losses) gains |
(656,334 | ) | 231,009 | (E | ) | (425,325 | ) | |||||||||
| Gain on sale of investments |
856,170 | — | 856,170 | |||||||||||||
| Loss on investment in Ikanos |
(557,594 | ) | — | (557,594 | ) | |||||||||||
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| 761,384 | 132,667 | 894,051 | ||||||||||||||
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| Loss from continuing operations before provision for income taxes, equity losses in unconsolidated affiliates and loss attributable to noncontrolling interest |
(12,732,796 | ) | (2,669,843 | ) | (15,402,639 | ) | ||||||||||
| Tax provision |
(1,335,500 | ) | 1,312,700 | (G | ) | (22,800 | ) | |||||||||
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| Loss from continuing operations before equity losses in unconsolidated affiliates and loss of noncontrolling interest |
(14,068,296 | ) | (1,357,143 | ) | (E | ) | (15,425,439 | ) | ||||||||
| Equity losses from continuing operations in unconsolidated affiliates |
(592,480 | ) | — | (592,480 | ) | |||||||||||
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| Loss from continuing operations |
(14,660,776 | ) | (1,357,143 | ) | (16,017,919 | ) | ||||||||||
| Loss from continuing operations attributable to the noncontrolling interest |
160,300 | 336,387 | (E | ) | 496,687 | |||||||||||
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| Loss from continuing operations attributable to the controlling interest |
$ | (14,500,476 | ) | $ | (1,020,756 | ) | $ | (15,521,232 | ) | |||||||
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| Loss from continuing operations per share |
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| Basic |
$ | (0.23 | ) | $ | (0.24 | ) | ||||||||||
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| Diluted |
$ | (0.23 | ) | $ | (0.24 | ) | ||||||||||
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| Weighted average number of common shares |
||||||||||||||||
| Basic |
63,572,753 | 63,572,753 | ||||||||||||||
| Diluted |
63,572,753 | 63,572,753 | ||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.
Kopin Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
Twelve Months Ended December 31, 2011
| Kopin (As Restated) |
Pro Forma Adjustments |
Kopin Pro Forma |
||||||||||||||
| Revenues: |
||||||||||||||||
| Net product revenues |
$ | 125,464,687 | $ | (65,955,728 | ) | (E | ) | $ | 59,508,959 | |||||||
| Research and development revenues |
5,679,908 | (530,264 | ) | (E | ) | 5,149,644 | ||||||||||
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| 131,144,595 | (66,485,992 | ) | 64,658,603 | |||||||||||||
| Expenses: |
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| Cost of product revenues |
82,941,219 | (48,282,199 | ) | (E | ) | 34,659,020 | ||||||||||
| Research and development-funded programs |
3,741,602 | (400,527 | ) | (E | ) | 3,341,075 | ||||||||||
| Research and development-internal |
22,133,360 | (8,915,342 | ) | (E | ) | 13,218,018 | ||||||||||
| Selling, general and administrative |
18,928,996 | (2,937,600 | ) | (E | ) | 15,991,396 | ||||||||||
| Impairment of intangible assets and goodwill |
4,999,512 | — | 4,999,512 | |||||||||||||
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| 132,744,689 | (60,535,668 | ) | 72,209,021 | |||||||||||||
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| Loss from continuing operations |
(1,600,094 | ) | (5,950,324 | ) | (7,550,418 | ) | ||||||||||
| Other income and expense: |
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| Interest income |
1,305,240 | (13,649 | ) | (E | ) | 1,291,591 | ||||||||||
| Other income and expense, net |
93,125 | 49,823 | (E | ) | 142,948 | |||||||||||
| Foreign currency transaction gains (losses) |
12,403 | (2,731 | ) | (E | ) | 9,672 | ||||||||||
| Gain on sales of investments |
368,641 | — | 368,641 | |||||||||||||
| Other-than-temporary impairment of marketable debt securities |
(150,644 | ) | — | (150,644 | ) | |||||||||||
| Gain on sales of patents |
155,658 | — | 155,658 | |||||||||||||
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| 1,784,423 | 33,443 | 1,817,866 | ||||||||||||||
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| Income (loss) from continuing operations before benefit (provision) for income taxes, and equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
184,329 | (5,916,881 | ) | (5,732,552 | ) | |||||||||||
| Tax benefit (provision) |
3,796,691 | (4,051,242 | ) | (G | ) | (254,551 | ) | |||||||||
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| Income (loss) from continuing operations before equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
3,981,020 | (9,968,123 | ) | (5,987,103 | ) | |||||||||||
| Equity loss from continuing operations in unconsolidated affiliate |
(296,451 | ) | — | (296,451 | ) | |||||||||||
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| Income (loss) from continuing operations |
3,684,569 | (9,968,123 | ) | (6,283,554 | ) | |||||||||||
| (Income) loss from continuing operations attributable to the noncontrolling interest |
(605,206 | ) | 588,121 | (E | ) | (17,085 | ) | |||||||||
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| Income (loss) from continuing operations per share attributable to the controlling interest |
$ | 3,079,363 | $ | (9,380,002 | ) | $ | (6,300,639 | ) | ||||||||
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| Income (loss) per share |
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| Basic |
$ | 0.05 | $ | (0.10 | ) | |||||||||||
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| Diluted |
$ | 0.05 | $ | (0.10 | ) | |||||||||||
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| Weighted average number of common shares outstanding: |
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| Basic |
64,405,776 | 64,405,776 | ||||||||||||||
| Diluted |
65,234,212 | 65,234,212 | ||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.
Kopin Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
Twelve Months Ended December 25, 2010
| Kopin (As Restated) |
Pro Forma Adjustments |
Kopin Pro Forma |
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| Revenues: |
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| Net product revenues |
$ | 116,622,692 | $ | (61,653,222 | ) | (E | ) | $ | 54,969,470 | |||||||
| Research and development revenues |
3,763,074 | (590,912 | ) | (E | ) | 3,172,162 | ||||||||||
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| 120,385,766 | (62,244,134 | ) | 58,141,632 | |||||||||||||
| Expenses: |
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| Cost of product revenues |
81,340,602 | (45,743,571 | ) | (E | ) | 35,597,031 | ||||||||||
| Research and development-funded programs |
2,692,488 | (517,007 | ) | (E | ) | 2,175,481 | ||||||||||
| Research and development-internal |
17,041,440 | (6,069,410 | ) | (E | ) | 10,972,030 | ||||||||||
| Selling, general and administrative |
14,837,519 | (2,515,910 | ) | (E | ) | 12,321,609 | ||||||||||
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| 115,912,049 | (54,845,898 | ) | 61,066,151 | |||||||||||||
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| Income (loss) from continuing operations |
4,473,717 | (7,398,236 | ) | (2,924,519 | ) | |||||||||||
| Other income and expense: |
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| Interest income |
2,192,334 | (214,643 | ) | (E | ) | 1,977,691 | ||||||||||
| Other income and expense, net |
77,202 | (107,421 | ) | (E | ) | (30,219 | ) | |||||||||
| Foreign currency transaction (losses) gains |
(418,710 | ) | 114,583 | (E | ) | (304,127 | ) | |||||||||
| Gain on sales of investments |
2,597,505 | — | 2,597,505 | |||||||||||||
| Gain on sales of patents |
769,797 | — | 769,797 | |||||||||||||
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| 5,218,128 | (207,481 | ) | 5,010,647 | |||||||||||||
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| Income from continuing operations before provision for income taxes, equity loss in unconsolidated affiliates and (income) loss of noncontrolling interest |
9,691,845 | (7,605,717 | ) | 2,086,128 | ||||||||||||
| Tax provision |
(252,000 | ) | — | (252,000 | ) | |||||||||||
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| Income before equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
9,439,845 | (7,605,717 | ) | 1,834,128 | ||||||||||||
| Equity loss from continuing operations in unconsolidated affiliate |
(600,299 | ) | — | (600,299 | ) | |||||||||||
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| Income from continuing operations |
8,839,546 | (7,605,717 | ) | 1,233,829 | ||||||||||||
| (Income) loss from continuing operations attributable to the noncontrolling interest |
(10,225 | ) | 54,419 | (E | ) | 44,194 | ||||||||||
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| Income from continuing operations attributable to the controlling interest |
$ | 8,829,321 | $ | (7,551,298 | ) | $ | 1,278,023 | |||||||||
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| Income from continuing operations per share |
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| Basic |
$ | 0.14 | $ | 0.02 | ||||||||||||
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| Diluted |
$ | 0.13 | $ | 0.02 | ||||||||||||
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| Weighted average number of common shares outstanding: |
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| Basic |
66,019,847 | 66,019,847 | ||||||||||||||
| Diluted |
66,711,501 | 66,711,501 | ||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.
Kopin Corporation
Unaudited Pro Forma Condensed Consolidated Statements of Operations
Twelve Months Ended December 26, 2009
| Kopin | Pro Forma Adjustments |
Kopin Pro Forma |
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| Revenues |
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| Net product revenues |
$ | 108,118,271 | $ | (45,606,437 | ) | (E | ) | $ | 62,511,834 | |||||||
| Research and development revenues |
6,536,486 | (845,655 | ) | (E | ) | 5,690,831 | ||||||||||
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| 114,654,757 | (46,452,092 | ) | 68,202,665 | |||||||||||||
| Expenses: |
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| Cost of product revenues |
75,982,694 | (36,876,505 | ) | (E | ) | 39,106,189 | ||||||||||
| Research and development-funded programs |
3,586,372 | (526,775 | ) | (E | ) | 3,059,597 | ||||||||||
| Research and development-internal |
10,560,662 | (2,265,903 | ) | (E | ) | 8,294,759 | ||||||||||
| Selling, general and administrative |
14,136,482 | (1,192,259 | ) | (E | ) | 12,944,223 | ||||||||||
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| 104,266,210 | (40,861,442 | ) | 63,404,768 | |||||||||||||
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| Income from continuing operations |
10,388,547 | (5,590,650 | ) | 4,797,897 | ||||||||||||
| Other income and expense: |
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| Interest income |
2,180,678 | (2,573 | ) | (E | ) | 2,178,105 | ||||||||||
| Other income and expense, net |
728,686 | (389,533 | ) | (E | ) | 339,153 | ||||||||||
| Foreign currency transaction gains (losses) |
(1,005,184 | ) | 62,723 | (E | ) | (942,461 | ) | |||||||||
| Gain on loans to KTC |
1,187,937 | (1,187,937 | ) | (E | ) | — | ||||||||||
| Gain on remeasurement of investment in KTC |
599,328 | (599,328 | ) | (E | ) | — | ||||||||||
| Other-than-temporary impairment of marketable debt securities |
(926,630 | ) | — | (926,630 | ) | |||||||||||
| Gain on sales of patents |
6,323,934 | — | 6,323,934 | |||||||||||||
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| 9,088,749 | (2,116,648 | ) | 6,972,101 | |||||||||||||
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| Income from continuing operations before provision for income taxes, equity earnings (losses) in unconsolidated affiliates and loss of noncontrolling interest |
19,477,296 | (7,707,298 | ) | 11,769,998 | ||||||||||||
| Tax provision |
(690,200 | ) | — | (690,200 | ) | |||||||||||
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| Income from continuing operations before earnings (losses) in unconsolidated affiliates and loss of noncontrolling interest |
18,787,096 | (7,707,298 | ) | 11,079,798 | ||||||||||||
| Equity earnings (losses) from continuing operations in unconsolidated affiliates |
483,057 | (824,276 | ) | (E | ) | (341,219 | ) | |||||||||
|
|
|
|
|
|
|
|||||||||||
| Income from continuing operations |
19,270,153 | (8,531,574 | ) | 10,738,579 | ||||||||||||
| Loss from continuing operations attributable to the noncontrolling interest |
173,217 | 95,402 | (E | ) | 268,619 | |||||||||||
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|
|
|
|
|
|
|||||||||||
| Income from continuing operations attributable to the controlling interest |
$ | 19,443,370 | $ | (8,436,172 | ) | $ | 11,007,198 | |||||||||
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|
|
|
|
|
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| Income from continuing operations per share |
||||||||||||||||
| Basic |
$ | 0.29 | $ | 0.16 | ||||||||||||
|
|
|
|
|
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| Diluted |
$ | 0.29 | $ | 0.16 | ||||||||||||
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|
|
|
|
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| Weighted average number of common shares outstanding: |
||||||||||||||||
| Basic |
66,849,890 | 66,849,890 | ||||||||||||||
| Diluted |
67,457,751 | 67,457,751 | ||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma condensed consolidated financial statements.
Note 1 — Description of Transaction
On January 15, 2013, (the “Closing Date”) Kopin Corporation consummated the sale of all of its III-V product line assets and its investment in Kopin Taiwan Corporation (“KTC”) to IQE KC LLC, a wholly-owned subsidiary of IQE plc, and IQE plc, for a gross purchase price of $75 million which was subject to certain adjustments including working capital adjustments and an escrow. $55 million of the purchase price was paid as of the Closing Date, $15 million of the purchase price will be paid on the third anniversary of the Closing Date, and $5 million was placed in escrow pending a final determination of the working capital purchase price adjustments, which is expected to be completed within 90 days of the Closing Date.
Note 2 — Pro Forma Adjustments
Immaterial Restatement
During the second quarter of 2012, the Company identified an error in the calculation of intercompany profit elimination in inventory for prior periods. While the Company believes the correction of this error is not material to its previously issued historical consolidated financial statements, the Company has restated certain balances within the condensed consolidated balance sheet as of December 31, 2011 to correct this error.
| Fiscal year ended December 31, 2011 | ||||||||||||
| As
previously reported |
Adjustment | As restated |
||||||||||
| Expenses: |
||||||||||||
| Cost of product revenues |
82,110 | 831 | 82,941 | |||||||||
|
|
|
|
|
|
|
|||||||
| Loss from continuing operations |
(769 | ) | (831 | ) | (1,600 | ) | ||||||
| Income from continuing operations before benefit for income taxes, equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
1,015 | (831 | ) | 184 | ||||||||
| Tax benefit |
3,541 | 256 | 3,797 | |||||||||
|
|
|
|
|
|
|
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| Income from continuing operations before equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
4,556 | (575 | ) | 3,981 | ||||||||
| Equity loss from continuing operations in unconsolidated affiliate |
(296 | ) | — | (296 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Income (loss) from continuing operations |
4,260 | (575 | ) | 3,685 | ||||||||
| (Income) loss from continuing operations attributable to the noncontrolling interest |
(662 | ) | 57 | (605 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Income (loss) from continuing operations attributable to the controlling interest |
$ | 3,598 | $ | (518 | ) | $ | 3,080 | |||||
|
|
|
|
|
|
|
|||||||
| Income (loss) from continuing operations per share: |
||||||||||||
| Basic |
$ | 0.06 | $ | (0.01 | ) | $ | 0.05 | |||||
| Diluted |
$ | 0.06 | $ | (0.01 | ) | $ | 0.05 | |||||
| Weighted average number of common shares: |
||||||||||||
| Basic |
64,406 | 64,406 | ||||||||||
| Diluted |
65,234 | 65,234 | ||||||||||
| Fiscal year ended December 25, 2010 | ||||||||||||
| As previously reported |
Adjustment | As restated |
||||||||||
| Expenses: |
||||||||||||
| Cost of product revenues |
81,224 | 116 | 81,340 | |||||||||
|
|
|
|
|
|
|
|||||||
| Income (loss) from continuing operations |
4,591 | (116 | ) | 4,475 | ||||||||
| Income from continuing operations before provision for income taxes, equity loss in unconsolidated affiliate and (income) loss of noncontrolling interest |
9,809 | (116 | ) | 9,693 | ||||||||
|
|
|
|
|
|
|
|||||||
| (Income) loss from continuing operations attributable to the noncontrolling interest |
(22 | ) | 11 | (11 | ) | |||||||
|
|
|
|
|
|
|
|||||||
| Income (loss) from continuing operations attributable to the controlling interest |
$ | 8,935 | $ | (105 | ) | $ | 8,830 | |||||
|
|
|
|
|
|
|
|||||||
| Income from continuing operations per share: |
||||||||||||
| Basic |
$ | 0.14 | $ | — | $ | 0.14 | ||||||
| Diluted |
$ | 0.13 | $ | — | $ | 0.13 | ||||||
| Weighted average number of common shares: |
||||||||||||
| Basic |
66,020 | 66,020 | ||||||||||
| Diluted |
66,712 | 66,712 | ||||||||||
Pro Forma Adjustments: The pro forma adjustments made to the historical condensed consolidated financial statements of Kopin are described as follows:
| A. | Reflects proceeds of $55 million received in cash from the sale and $5 million held in escrow until the final determination of working capital. |
| B. | Reflects the adjustments to eliminate the assets and liabilities sold related to the III-V product line, and an additional $0.5 million accrued for professional fees related to the transaction. |
| C. | Represents liabilities that will not be retained by Kopin as a result of the sale. |
| D. | Represents the difference between the estimated cash to be received and the net asset value transfer to IQE KC, LLC on the sale as discussed above. |
| Estimated net proceeds |
$ | 74,800,000 | ||
| Net assets sold |
38,796,486 | |||
| Net change in consolidated net assets |
36,003,514 | |||
| Assets sold |
52,797,414 | |||
| Estimated Liabilities transferred to Buyer |
(14,000,928 | ) | ||
| Estimated Net assets sold |
38,796,486 | |||
| E. | Represents the revenue and expenses directly attributable to the III-V product line and KTC operations. The pro forma adjustments exclude the indirect and fixed costs allocated to the sold business. |
| F. | Represents the $15 million Note Receivable to be paid in three years by IQE, discounted based on the 3 year treasury rate (.37%) as of the Closing Date. |
| G. | Represents income taxes owed on earnings of KTC. |