[x]
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
94-3180138
|
(State or other jurisdiction of incorporation or organization)
|
|
(IRS Employer Identification No.)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
Common Stock, $0.001 par value
|
IMMR
|
NASDAQ Global Market
|
Large accelerated filer [ ]
|
|
|
|
Accelerated filer [x]
|
Non-accelerated filer [ ]
|
|
Smaller reporting company [ ]
|
||
|
|
|
|
Emerging Growth Company [ ]
|
Page
|
||
Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
||
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
|
||
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
|
||
Item 15.
|
||
•
|
difficulties in persuading existing licensees who compensate us for including our software in certain of their touch-enabled products to also license and compensate us for our patents that cover other touch-enabled products of theirs that do not include our software;
|
•
|
difficulties in achieving and maintaining consumer and market demand or acceptance for our products;
|
•
|
any litigation we are or may be involved in may be unsuccessful or may result in one or more of our patents becoming limited in scope, declared unenforceable or invalidated.
|
|
December 31,
|
||||||||||||||||||||||
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018
|
|
2019
|
||||||||||||
Immersion Corporation
|
$
|
100
|
|
|
$
|
123
|
|
|
$
|
112
|
|
|
$
|
75
|
|
|
$
|
95
|
|
|
$
|
78
|
|
NASDAQ Composite
|
100
|
|
|
107
|
|
|
116
|
|
|
151
|
|
|
147
|
|
|
200
|
|
||||||
RDG Technology Composite
|
100
|
|
|
103
|
|
|
118
|
|
|
162
|
|
|
162
|
|
|
239
|
|
CONSOLIDATED BALANCE SHEET DATA:
|
|||||||||||||||||||
|
As of December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Cash, cash equivalents, and short-term investments
|
$
|
89,497
|
|
|
$
|
124,918
|
|
|
$
|
46,538
|
|
|
$
|
89,772
|
|
|
$
|
64,931
|
|
Working capital
|
95,137
|
|
|
120,480
|
|
|
28,980
|
|
|
73,008
|
|
|
53,749
|
|
|||||
Total assets
|
124,848
|
|
|
145,995
|
|
|
51,975
|
|
|
103,767
|
|
|
105,415
|
|
|||||
Total stockholders’ equity
|
83,757
|
|
|
99,660
|
|
|
9,657
|
|
|
55,340
|
|
|
86,615
|
|
•
|
Performance Obligation A - Transfer rights to our patent portfolio as it exists when the contract is executed;
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Revenues:
|
|
|
|
|
|
|||
Fixed fee license revenue
|
35.1
|
%
|
|
75.3
|
%
|
|
36.0
|
%
|
Per-unit royalty revenue
|
64.0
|
|
|
24.3
|
|
|
61.4
|
|
Total royalty and license revenue
|
99.1
|
|
|
99.6
|
|
|
97.4
|
|
Development, services, and other
|
0.9
|
|
|
0.4
|
|
|
2.6
|
|
Total revenues
|
100.0
|
|
|
100.0
|
|
|
100.0
|
|
Costs and expenses:
|
|
|
|
|
|
|||
Cost of revenues
|
0.5
|
|
|
0.2
|
|
|
0.6
|
|
Sales and marketing
|
17.9
|
|
|
5.5
|
|
|
38.6
|
|
Research and development
|
21.8
|
|
|
8.8
|
|
|
33.6
|
|
General and administrative
|
119.4
|
|
|
37.7
|
|
|
152.4
|
|
Restructuring costs
|
—
|
|
|
—
|
|
|
4.6
|
|
Total costs and expenses
|
159.6
|
|
|
52.2
|
|
|
229.8
|
|
Operating income (loss)
|
(59.6
|
)
|
|
47.8
|
|
|
(129.8
|
)
|
Interest and other income
|
5.0
|
|
|
1.7
|
|
|
1.0
|
|
Other expense
|
0.2
|
|
|
(0.2
|
)
|
|
0.9
|
|
Income (loss) before provision for income taxes
|
(54.4
|
)
|
|
49.3
|
|
|
(127.9
|
)
|
Provision for income taxes
|
(1.3
|
)
|
|
(0.4
|
)
|
|
(1.4
|
)
|
Net income (loss)
|
(55.7
|
)%
|
|
48.9
|
%
|
|
(129.3
|
)%
|
|
|
|
Change
|
|
|
|
Change
|
|
|
||||||||||||||||
|
2019
|
|
Amount
|
|
%
|
|
2018
|
|
Amount
|
|
%
|
|
2017
|
||||||||||||
Fixed fee license revenue
|
$
|
12,627
|
|
|
$
|
(70,946
|
)
|
|
(85
|
)%
|
|
$
|
83,573
|
|
|
$
|
70,998
|
|
|
565
|
%
|
|
$
|
12,575
|
|
Per-Unit royalty revenue
|
23,016
|
|
|
(3,968
|
)
|
|
(15
|
)%
|
|
26,984
|
|
|
5,470
|
|
|
25
|
%
|
|
21,514
|
|
|||||
Total royalty and license revenue
|
35,643
|
|
|
(74,914
|
)
|
|
(68
|
)%
|
|
110,557
|
|
|
76,468
|
|
|
224
|
%
|
|
34,089
|
|
|||||
Development, services, and other
|
310
|
|
|
(112
|
)
|
|
(27
|
)%
|
|
422
|
|
|
(502
|
)
|
|
(54
|
)%
|
|
924
|
|
|||||
Total revenues
|
$
|
35,953
|
|
|
$
|
(75,026
|
)
|
|
(68
|
)%
|
|
$
|
110,979
|
|
|
$
|
75,966
|
|
|
217
|
%
|
|
$
|
35,013
|
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2017
|
||||||||||||
Sales and marketing
|
$
|
6,426
|
|
|
$
|
308
|
|
|
5
|
%
|
|
$
|
6,118
|
|
|
$
|
(7,398
|
)
|
|
(55
|
)%
|
|
$
|
13,516
|
|
Research and development
|
7,840
|
|
|
(1,887
|
)
|
|
(19
|
)%
|
|
9,727
|
|
|
(2,032
|
)
|
|
(17
|
)%
|
|
11,759
|
|
|||||
General and administrative
|
42,968
|
|
|
1,153
|
|
|
3
|
%
|
|
41,815
|
|
|
(11,528
|
)
|
|
(22
|
)%
|
|
53,343
|
|
|||||
Restructuring Costs
|
—
|
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
(1,620
|
)
|
|
100
|
%
|
|
1,620
|
|
|
2019
|
|
$ Change
|
|
% Change
|
|
2018
|
|
$ Change
|
|
% Change
|
|
2017
|
||||||||||||
Interest and other income
|
$
|
1,787
|
|
|
$
|
(45
|
)
|
|
(2
|
)%
|
|
$
|
1,832
|
|
|
$
|
1,495
|
|
|
444
|
%
|
|
$
|
337
|
|
Other income (expense)
|
$
|
91
|
|
|
$
|
289
|
|
|
(146
|
)%
|
|
$
|
(198
|
)
|
|
$
|
(472
|
)
|
|
(172
|
)%
|
|
$
|
274
|
|
|
|
|
Change
|
|
|
|
Change
|
|
|
||||||||||||||||
|
2019
|
|
Amount
|
|
%
|
|
2018
|
|
Amount
|
|
%
|
|
2017
|
||||||||||||
Provision for income taxes
|
$
|
(471
|
)
|
|
$
|
(79
|
)
|
|
(20
|
)%
|
|
$
|
(392
|
)
|
|
$
|
88
|
|
|
(18
|
)%
|
|
$
|
(480
|
)
|
Income (loss) before provision for income taxes
|
(19,573
|
)
|
|
|
|
|
|
54,735
|
|
|
|
|
|
|
(44,811
|
)
|
|||||||||
Effective tax rate
|
(2.4
|
)%
|
|
|
|
|
|
0.7
|
%
|
|
|
|
|
|
(1.1
|
)%
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net cash (used in) provided by operating activities
|
$
|
(34,099
|
)
|
|
$
|
69,924
|
|
|
$
|
(43,829
|
)
|
Net cash provided by investing activities
|
$
|
10,920
|
|
|
$
|
8,237
|
|
|
$
|
11,068
|
|
Net cash (used in) provided by financing activities
|
$
|
(1,331
|
)
|
|
$
|
8,205
|
|
|
$
|
518
|
|
Contractual Obligations
|
Total
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
Operating Leases
|
$
|
4,079
|
|
|
$
|
1,230
|
|
|
$
|
2,825
|
|
|
$
|
24
|
|
|
$
|
—
|
|
|
Page
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
ASSETS
|
|||||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
86,478
|
|
|
$
|
110,988
|
|
Short-term investments
|
3,019
|
|
|
13,930
|
|
||
Accounts and other receivables
|
3,385
|
|
|
1,051
|
|
||
Prepaid expenses and other current assets
|
14,078
|
|
|
9,856
|
|
||
Total current assets
|
106,960
|
|
|
135,825
|
|
||
Property and equipment, net
|
1,226
|
|
|
2,343
|
|
||
Other assets, net
|
16,662
|
|
|
7,827
|
|
||
Total assets
|
$
|
124,848
|
|
|
$
|
145,995
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||
Current liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
809
|
|
|
$
|
3,612
|
|
Accrued compensation
|
2,844
|
|
|
3,948
|
|
||
Other current liabilities
|
3,478
|
|
|
3,194
|
|
||
Deferred revenue
|
4,692
|
|
|
4,591
|
|
||
Total current liabilities
|
11,823
|
|
|
15,345
|
|
||
Long-term deferred revenue
|
25,952
|
|
|
30,203
|
|
||
Other long-term liabilities
|
3,316
|
|
|
787
|
|
||
Total liabilities
|
41,091
|
|
|
46,335
|
|
||
Commitments and contingencies (Note12)
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Common stock and additional paid-in capital – $0.001 par value; 100,000,000 shares authorized; 38,624,784 and 37,652,498 shares issued, respectively; 31,414,328 and 30,829,351 shares outstanding, respectively
|
253,289
|
|
|
246,415
|
|
||
Accumulated other comprehensive income
|
124
|
|
|
116
|
|
||
Accumulated deficit
|
(118,565
|
)
|
|
(98,521
|
)
|
||
Treasury stock at cost: 7,210,456 and 6,823,147 shares, respectively
|
(51,091
|
)
|
|
(48,350
|
)
|
||
Total stockholders’ equity
|
83,757
|
|
|
99,660
|
|
||
Total liabilities and stockholders’ equity
|
$
|
124,848
|
|
|
$
|
145,995
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenues:
|
|
|
|
|
|
||||||
Royalty and license
|
$
|
35,643
|
|
|
$
|
110,557
|
|
|
$
|
34,089
|
|
Development, services, and other
|
310
|
|
|
422
|
|
|
924
|
|
|||
Total revenues
|
35,953
|
|
|
110,979
|
|
|
35,013
|
|
|||
Costs and expenses:
|
|
|
|
|
|
||||||
Cost of revenues
|
170
|
|
|
218
|
|
|
197
|
|
|||
Sales and marketing
|
6,426
|
|
|
6,118
|
|
|
13,516
|
|
|||
Research and development
|
7,840
|
|
|
9,727
|
|
|
11,759
|
|
|||
General and administrative
|
42,968
|
|
|
41,815
|
|
|
53,343
|
|
|||
Restructuring costs
|
—
|
|
|
—
|
|
|
1,620
|
|
|||
Total costs and expenses
|
57,404
|
|
|
57,878
|
|
|
80,435
|
|
|||
Operating income (loss)
|
(21,451
|
)
|
|
53,101
|
|
|
(45,422
|
)
|
|||
Interest and other income
|
1,787
|
|
|
1,832
|
|
|
337
|
|
|||
Other income (expense), net
|
91
|
|
|
(198
|
)
|
|
274
|
|
|||
Income (loss) before provision for income taxes
|
(19,573
|
)
|
|
54,735
|
|
|
(44,811
|
)
|
|||
Provision for income taxes
|
(471
|
)
|
|
(392
|
)
|
|
(480
|
)
|
|||
Net income (loss)
|
$
|
(20,044
|
)
|
|
$
|
54,343
|
|
|
$
|
(45,291
|
)
|
Basic net income (loss) per share
|
$
|
(0.64
|
)
|
|
$
|
1.78
|
|
|
$
|
(1.55
|
)
|
Shares used in calculating basic net income (loss) per share
|
31,529
|
|
|
30,459
|
|
|
29,179
|
|
|||
Diluted net income (loss) per share:
|
$
|
(0.64
|
)
|
|
$
|
1.73
|
|
|
$
|
(1.55
|
)
|
Shares used in calculating diluted net income (loss) per share
|
31,529
|
|
|
31,407
|
|
|
29,179
|
|
|||
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Change in unrealized gains (losses) on short-term investments
|
$
|
8
|
|
|
$
|
17
|
|
|
$
|
(16
|
)
|
Total other comprehensive income (loss)
|
8
|
|
|
17
|
|
|
(16
|
)
|
|||
Total comprehensive income (loss)
|
$
|
(20,036
|
)
|
|
$
|
54,360
|
|
|
$
|
(45,307
|
)
|
|
Common Stock and
Additional Paid-In Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Accumulated
Deficit
|
|
Treasury Stock
|
|
Total
Stockholders’
Equity
|
||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||
Balances at January 1, 2017
|
35,555,562
|
|
|
$
|
221,098
|
|
|
$
|
115
|
|
|
$
|
(119,329
|
)
|
|
6,638,003
|
|
|
$
|
(46,544
|
)
|
|
$
|
55,340
|
|
Net loss
|
|
|
|
|
|
|
(45,291
|
)
|
|
|
|
|
|
(45,291
|
)
|
||||||||||
Unrealized loss on available-for-sale securities, net of taxes
|
|
|
|
|
(16
|
)
|
|
|
|
|
|
|
|
(16
|
)
|
||||||||||
Stock repurchase
|
|
|
|
|
|
|
|
|
48,687
|
|
|
(328
|
)
|
|
(328
|
)
|
|||||||||
Exercise of stock options
|
70,608
|
|
|
518
|
|
|
|
|
|
|
|
|
|
|
518
|
|
|||||||||
Release of restricted stock units and awards
|
275,598
|
|
|
2,661
|
|
|
|
|
|
|
|
|
|
|
2,661
|
|
|||||||||
Issuance of stock for ESPP purchase
|
48,750
|
|
|
328
|
|
|
|
|
|
|
|
|
|
|
328
|
|
|||||||||
Stock based compensation
|
|
|
3,441
|
|
|
|
|
|
|
|
|
|
|
3,441
|
|
||||||||||
Effect of change in accounting policy (1)
|
|
|
|
|
|
|
(6,996
|
)
|
|
|
|
|
|
(6,996
|
)
|
||||||||||
Balances at December 31, 2017
|
35,950,518
|
|
|
$
|
228,046
|
|
|
$
|
99
|
|
|
$
|
(171,616
|
)
|
|
6,686,690
|
|
|
$
|
(46,872
|
)
|
|
$
|
9,657
|
|
Net income
|
|
|
|
|
|
|
54,343
|
|
|
|
|
|
|
54,343
|
|
||||||||||
Unrealized gain (loss) on available-for-sale securities, net of taxes
|
|
|
|
|
17
|
|
|
|
|
|
|
|
|
17
|
|
||||||||||
Issuance of stock for ESPP purchase
|
26,689
|
|
|
218
|
|
|
|
|
|
|
|
|
|
|
218
|
|
|||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
1,452,306
|
|
|
9,465
|
|
|
|
|
|
|
136,457
|
|
|
(1,478
|
)
|
|
7,987
|
|
|||||||
Release of restricted stock units and awards, including related stock compensation
|
222,985
|
|
|
2,806
|
|
|
|
|
|
|
|
|
|
|
2,806
|
|
|||||||||
Stock based compensation for stock options
|
|
|
5,880
|
|
|
|
|
|
|
|
|
|
|
5,880
|
|
||||||||||
Effect of change in accounting policy (2)
|
|
|
|
|
|
|
18,752
|
|
|
|
|
|
|
18,752
|
|
||||||||||
Balances at December 31, 2018
|
37,652,498
|
|
|
$
|
246,415
|
|
|
$
|
116
|
|
|
$
|
(98,521
|
)
|
|
6,823,147
|
|
|
$
|
(48,350
|
)
|
|
$
|
99,660
|
|
Net loss
|
|
|
|
|
|
|
(20,044
|
)
|
|
|
|
|
|
(20,044
|
)
|
||||||||||
Unrealized gain (loss) on available-for-sale securities, net of taxes
|
|
|
|
|
8
|
|
|
|
|
|
|
|
|
8
|
|
||||||||||
Stock repurchase
|
|
|
|
|
|
|
|
|
387,309
|
|
|
(2,741
|
)
|
|
(2,741
|
)
|
|||||||||
Issuance of stock for ESPP purchase
|
21,741
|
|
|
165
|
|
|
|
|
|
|
|
|
|
|
165
|
|
|||||||||
Exercise of stock options, net of shares withheld for employee taxes
|
173,993
|
|
|
1,245
|
|
|
|
|
|
|
|
|
|
|
1,245
|
|
|||||||||
Release of restricted stock units and awards, including related stock compensation
|
776,552
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Stock based compensation
|
|
|
5,464
|
|
|
|
|
|
|
|
|
|
|
5,464
|
|
||||||||||
Balances at December 31, 2019
|
38,624,784
|
|
|
$
|
253,289
|
|
|
$
|
124
|
|
|
$
|
(118,565
|
)
|
|
7,210,456
|
|
|
$
|
(51,091
|
)
|
|
$
|
83,757
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(20,044
|
)
|
|
$
|
54,343
|
|
|
$
|
(45,291
|
)
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
2,197
|
|
|
855
|
|
|
968
|
|
|||
Stock-based compensation
|
5,464
|
|
|
8,686
|
|
|
6,102
|
|
|||
Impairment of right-of-use lease asset
|
939
|
|
|
—
|
|
|
—
|
|
|||
Foreign currency translation loss
|
102
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
431
|
|
|
109
|
|
|
(32
|
)
|
|||
Other
|
(3
|
)
|
|
26
|
|
|
1
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
||||||
Accounts and other receivables
|
(2,334
|
)
|
|
(245
|
)
|
|
576
|
|
|||
Prepaid expenses and other current assets
|
(4,374
|
)
|
|
(4,015
|
)
|
|
141
|
|
|||
Other assets
|
(11,379
|
)
|
|
(7,188
|
)
|
|
(197
|
)
|
|||
Accounts payable
|
(2,815
|
)
|
|
(3,035
|
)
|
|
696
|
|
|||
Accrued compensation
|
(1,104
|
)
|
|
(185
|
)
|
|
(620
|
)
|
|||
Other current liabilities
|
(728
|
)
|
|
(702
|
)
|
|
(491
|
)
|
|||
Deferred revenue
|
(4,150
|
)
|
|
21,406
|
|
|
(5,575
|
)
|
|||
Other long-term liabilities
|
3,699
|
|
|
(131
|
)
|
|
(107
|
)
|
|||
Net cash (used in) provided by operating activities
|
(34,099
|
)
|
|
69,924
|
|
|
(43,829
|
)
|
|||
Cash flows provided by (used in) investing activities:
|
|
|
|
|
|
||||||
Purchases of short-term investments
|
(8,930
|
)
|
|
(17,693
|
)
|
|
(23,807
|
)
|
|||
Proceeds from maturities of short-term investments
|
20,000
|
|
|
26,004
|
|
|
35,000
|
|
|||
Purchases of property and equipment
|
(150
|
)
|
|
(74
|
)
|
|
(125
|
)
|
|||
Net cash provided by investing activities
|
10,920
|
|
|
8,237
|
|
|
11,068
|
|
|||
Cash flows provided by (used in) financing activities:
|
|
|
|
|
|
||||||
Proceeds from issuance of common stock under employee stock purchase plan
|
165
|
|
|
218
|
|
|
328
|
|
|||
Proceeds from stock options exercise
|
1,245
|
|
|
7,987
|
|
|
518
|
|
|||
Cash paid for purchases of treasury stock
|
(2,741
|
)
|
|
—
|
|
|
(328
|
)
|
|||
Net cash (used in) provided by financing activities
|
(1,331
|
)
|
|
8,205
|
|
|
518
|
|
|||
Net (decrease) increase in cash and cash equivalents
|
(24,510
|
)
|
|
86,366
|
|
|
(32,243
|
)
|
|||
Cash and cash equivalents:
|
|
|
|
|
|
||||||
Beginning of year
|
110,988
|
|
|
24,622
|
|
|
56,865
|
|
|||
End of year
|
$
|
86,478
|
|
|
$
|
110,988
|
|
|
$
|
24,622
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
||||||
Cash paid for taxes
|
$
|
160
|
|
|
$
|
151
|
|
|
$
|
191
|
|
Supplemental disclosure of non-cash operating, investing, and financing activities:
|
|
|
|
|
|
||||||
Cashless option exercise under company stock plan
|
$
|
—
|
|
|
$
|
1,478
|
|
|
$
|
—
|
|
Release of Restricted Stock Units and Awards under company stock plan
|
$
|
7,190
|
|
|
$
|
2,806
|
|
|
$
|
2,661
|
|
Computer equipment and purchased software
|
3 years
|
Machinery and equipment
|
3-5 years
|
Furniture and fixtures
|
5 years
|
•
|
Performance Obligation A: transfer of rights to the Company's patent portfolio as it exists when the contract is executed;
|
•
|
Performance Obligation B: transfer of rights to the Company's patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract.
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Advertising expense
|
$
|
173
|
|
|
$
|
67
|
|
|
$
|
221
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017 (1)
|
||||||
Fixed fee license revenue
|
$
|
12,627
|
|
|
$
|
83,573
|
|
|
$
|
12,575
|
|
Per-Unit royalty revenue
|
23,016
|
|
|
26,984
|
|
|
21,514
|
|
|||
Total royalty and license revenue
|
35,643
|
|
|
110,557
|
|
|
34,089
|
|
|||
Development, services, and other
|
310
|
|
|
422
|
|
|
924
|
|
|||
Total revenues
|
$
|
35,953
|
|
|
$
|
110,979
|
|
|
$
|
35,013
|
|
|
December 31, 2019
|
|
Total
|
||||||||||||
|
Fair value measurements using
|
|
|||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
|||||||||
Money market funds
|
$
|
63,351
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
63,351
|
|
U.S. Treasury securities
|
—
|
|
|
3,019
|
|
|
—
|
|
|
3,019
|
|
||||
Total assets at fair value (1)
|
$
|
63,351
|
|
|
$
|
3,019
|
|
|
$
|
—
|
|
|
$
|
66,370
|
|
|
December 31, 2018
|
|
Total
|
||||||||||||
|
Fair value measurements using
|
|
|||||||||||||
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
|
Significant
Other
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
|||||||||
Money market funds
|
$
|
81,425
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
81,425
|
|
U.S. Treasury securities
|
—
|
|
|
13,930
|
|
|
—
|
|
|
13,930
|
|
||||
Total assets at fair value (1)
|
$
|
81,425
|
|
|
$
|
13,930
|
|
|
$
|
—
|
|
|
$
|
95,355
|
|
|
December 31, 2019
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Holding
Gains
|
|
Gross
Unrealized
Holding
Losses
|
|
Fair Value
|
||||||||
U.S. Treasury securities
|
$
|
3,018
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
3,019
|
|
Total
|
$
|
3,018
|
|
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
3,019
|
|
|
December 31, 2018
|
||||||||||||||
|
Amortized
Cost
|
|
Gross
Unrealized
Holding
Gains
|
|
Gross
Unrealized
Holding
Losses
|
|
Fair Value
|
||||||||
U.S. Treasury securities
|
$
|
13,936
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
13,930
|
|
Total
|
$
|
13,936
|
|
|
$
|
—
|
|
|
$
|
(6
|
)
|
|
$
|
13,930
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Cash
|
$
|
23,127
|
|
|
$
|
29,563
|
|
Money market funds
|
63,351
|
|
|
81,425
|
|
||
Cash and cash equivalents
|
$
|
86,478
|
|
|
$
|
110,988
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Trade accounts receivable
|
$
|
2,972
|
|
|
$
|
645
|
|
Receivables from vendors and other
|
413
|
|
|
406
|
|
||
Accounts and other receivables
|
$
|
3,385
|
|
|
$
|
1,051
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Computer equipment and purchased software
|
$
|
3,011
|
|
|
$
|
3,167
|
|
Machinery and equipment
|
699
|
|
|
821
|
|
||
Furniture and fixtures
|
1,115
|
|
|
1,113
|
|
||
Leasehold improvements (1)
|
3,897
|
|
|
3,897
|
|
||
Total
|
8,722
|
|
|
8,998
|
|
||
Less accumulated depreciation and amortization (1)
|
(7,496
|
)
|
|
(6,655
|
)
|
||
Property and equipment, net
|
$
|
1,226
|
|
|
$
|
2,343
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Contract assets - Long-term
|
$
|
6,928
|
|
|
$
|
7,231
|
|
Lease right-of-use assets
|
2,202
|
|
|
—
|
|
||
Deferred tax assets
|
470
|
|
|
295
|
|
||
Other assets and deposit
|
7,062
|
|
|
301
|
|
||
Total other assets, net
|
$
|
16,662
|
|
|
$
|
7,827
|
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Accrued legal
|
$
|
1,077
|
|
|
$
|
1,827
|
|
Lease liabilities - current
|
1,150
|
|
|
—
|
|
||
Income taxes payable
|
46
|
|
|
204
|
|
||
Other current liabilities
|
1,205
|
|
|
1,163
|
|
||
Total other current liabilities
|
$
|
3,478
|
|
|
$
|
3,194
|
|
|
December 31, 2019
|
|
Common stock shares available for grant
|
4,214
|
|
Standard and market condition-based stock options outstanding
|
967
|
|
RSAs outstanding
|
91
|
|
RSUs outstanding
|
945
|
|
|
Number of Shares
Underlying Stock Options (in thousands) |
|
Weighted Average
Exercise Price Per Share |
|
Weighted Average
Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding at December 31, 2018
|
1,862
|
|
|
$
|
9.44
|
|
|
2.85
|
|
$
|
751
|
|
Granted
|
783
|
|
|
$
|
8.25
|
|
|
|
|
|
||
Exercised
|
(174
|
)
|
|
$
|
7.15
|
|
|
|
|
|
||
Canceled or expired
|
(1,504
|
)
|
|
$
|
9.65
|
|
|
|
|
|
||
Outstanding as of December 31, 2019
|
967
|
|
|
$
|
8.55
|
|
|
5.63
|
|
$
|
16
|
|
Vested and expected to vest at December 31, 2019
|
967
|
|
|
$
|
8.55
|
|
|
5.63
|
|
$
|
16
|
|
Exercisable at December 31, 2019
|
161
|
|
|
$
|
9.80
|
|
|
2.12
|
|
$
|
0.4
|
|
|
Number of Restricted Stock Units
(in thousands) |
|
Weighted Average Grant Date Fair Value
|
|
Weighted Average
Remaining Contractual Life (Years) |
|
Aggregate
Intrinsic Value |
|||||
Outstanding at December 31, 2018
|
1,091
|
|
|
$
|
10.97
|
|
|
0.67
|
|
$
|
9,773
|
|
Granted
|
892
|
|
|
$
|
8.54
|
|
|
|
|
|
||
Released
|
(714
|
)
|
|
$
|
11.30
|
|
|
|
|
|
||
Forfeited
|
(324
|
)
|
|
$
|
9.85
|
|
|
|
|
|
||
Outstanding at December 31, 2019
|
945
|
|
|
$
|
8.81
|
|
|
1.25
|
|
$
|
7,020
|
|
|
Number of Restricted Stock Awards
(in thousands) |
|
Weighted Average Grant Date Fair Value
|
|
Weighted Average Remaining Recognition Period
(Years) |
|||
Outstanding at December 31, 2018
|
55
|
|
|
$
|
13.02
|
|
|
0.46
|
Granted
|
114
|
|
|
$
|
7.60
|
|
|
|
Released
|
(62
|
)
|
|
$
|
12.63
|
|
|
|
Forfeited
|
(16
|
)
|
|
$
|
7.27
|
|
|
|
Outstanding at December 31, 2019
|
91
|
|
|
$
|
7.45
|
|
|
0.45
|
|
For the Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Stock options
|
$
|
701
|
|
|
$
|
1,222
|
|
|
$
|
3,735
|
|
RSUs and RSAs
|
4,692
|
|
|
7,372
|
|
|
2,234
|
|
|||
Employee stock purchase plan
|
71
|
|
|
92
|
|
|
$
|
133
|
|
||
Total
|
$
|
5,464
|
|
|
$
|
8,686
|
|
|
$
|
6,102
|
|
|
|
|
|
|
|
||||||
Sales and marketing
|
$
|
947
|
|
|
$
|
946
|
|
|
$
|
1,025
|
|
Research and development
|
1,304
|
|
|
1,948
|
|
|
981
|
|
|||
General and administrative
|
3,213
|
|
|
5,792
|
|
|
4,096
|
|
|||
Total
|
$
|
5,464
|
|
|
$
|
8,686
|
|
|
$
|
6,102
|
|
Time-based stock options:
|
|
|
|
|
|
|||
|
For the Year Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Expected life (in years)
|
4.4
|
|
|
4.4
|
|
|
4.6
|
|
Volatility
|
53
|
%
|
|
55
|
%
|
|
52
|
%
|
Interest rate
|
2.0
|
%
|
|
3.0
|
%
|
|
2.0
|
%
|
Dividend yield
|
—
|
|
|
—
|
|
|
—
|
|
|
Year Ended December 31, 2019
|
||||||||||
|
Unrealized
Gains
and Losses on
Available-for Sale
Securities
|
|
Foreign
Currency
Items
|
|
Total
|
||||||
Beginning balance
|
$
|
(6
|
)
|
|
$
|
122
|
|
|
$
|
116
|
|
Amounts reclassified from accumulated other comprehensive income (loss)
|
8
|
|
|
—
|
|
|
8
|
|
|||
Ending balance
|
$
|
2
|
|
|
$
|
122
|
|
|
$
|
124
|
|
|
Year Ended December 31, 2018
|
||||||||||
|
Unrealized
Gains
and Losses on
Available-for Sale
Securities
|
|
Foreign
Currency
Items
|
|
Total
|
||||||
Beginning balance
|
$
|
(23
|
)
|
|
$
|
122
|
|
|
$
|
99
|
|
Amounts reclassified from accumulated other comprehensive income
|
17
|
|
|
—
|
|
|
17
|
|
|||
Ending balance
|
$
|
(6
|
)
|
|
$
|
122
|
|
|
$
|
116
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Income (loss) before provisions for income taxes
|
$
|
(19,573
|
)
|
|
$
|
54,735
|
|
|
$
|
(44,811
|
)
|
Provision for income taxes
|
(471
|
)
|
|
(392
|
)
|
|
(480
|
)
|
|||
Effective tax rate
|
(2.4
|
)%
|
|
0.7
|
%
|
|
(1.1
|
)%
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
||||||
U.S. federal
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
State and local
|
(3
|
)
|
|
(3
|
)
|
|
(5
|
)
|
|||
Foreign
|
(190
|
)
|
|
(331
|
)
|
|
(448
|
)
|
|||
Total current
|
$
|
(193
|
)
|
|
$
|
(334
|
)
|
|
$
|
(453
|
)
|
Deferred:
|
|
|
|
|
|
||||||
U.S. federal
|
—
|
|
|
—
|
|
|
—
|
|
|||
State and local
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign
|
(278
|
)
|
|
(58
|
)
|
|
(27
|
)
|
|||
Total deferred
|
(278
|
)
|
|
(58
|
)
|
|
(27
|
)
|
|||
Total provision for income taxes
|
$
|
(471
|
)
|
|
$
|
(392
|
)
|
|
$
|
(480
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
4,936
|
|
|
$
|
4,968
|
|
State income taxes
|
1
|
|
|
1
|
|
||
Deferred revenue
|
6,291
|
|
|
2,347
|
|
||
Research and development and other credits
|
8,282
|
|
|
9,590
|
|
||
Reserves and accruals recognized in different periods
|
1,128
|
|
|
3,734
|
|
||
Capitalized R&D expenses
|
3,447
|
|
|
3,415
|
|
||
Depreciation and amortization
|
3,636
|
|
|
472
|
|
||
Lease liability
|
806
|
|
|
—
|
|
||
Deferred rent
|
—
|
|
|
160
|
|
||
Other
|
—
|
|
|
6
|
|
||
Total deferred tax assets
|
28,527
|
|
|
24,693
|
|
||
Valuation allowance
|
(28,057
|
)
|
|
(24,398
|
)
|
||
Net deferred tax assets
|
470
|
|
|
295
|
|
||
Right of use lease assets
|
(466
|
)
|
|
—
|
|
||
Foreign credits
|
(23
|
)
|
|
(29
|
)
|
||
Other
|
(40
|
)
|
|
(17
|
)
|
||
Net deferred tax liabilities
|
(529
|
)
|
|
(46
|
)
|
||
Net deferred taxes
|
$
|
(59
|
)
|
|
$
|
249
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Federal statutory tax rate
|
21.0
|
%
|
|
21.0
|
%
|
|
35.0
|
%
|
Foreign withholding
|
(0.3
|
)%
|
|
0.1
|
%
|
|
(0.2
|
)%
|
Stock compensation expense
|
(11.3
|
)%
|
|
(1.0
|
)%
|
|
(2.0
|
)%
|
Foreign rate differential
|
(2.6
|
)%
|
|
(1.5
|
)%
|
|
(17.0
|
)%
|
Prior year true-up items
|
0.2
|
%
|
|
—
|
%
|
|
(0.1
|
)%
|
Tax reserves
|
(2.1
|
)%
|
|
(1.3
|
)%
|
|
(0.1
|
)%
|
Loss on expiration of capital loss carryover
|
—
|
%
|
|
1.1
|
%
|
|
—
|
%
|
Credits
|
0.1
|
%
|
|
(0.1
|
)%
|
|
0.4
|
%
|
Other
|
(1.6
|
)%
|
|
0.9
|
%
|
|
—
|
%
|
FTC conversion true up
|
(5.9
|
)%
|
|
—
|
%
|
|
—
|
%
|
2017 Tax Act impact
|
—
|
%
|
|
1.1
|
%
|
|
(28.7
|
)%
|
Valuation allowance
|
0.1
|
%
|
|
(19.6
|
)%
|
|
11.6
|
%
|
Effective tax rate
|
(2.4
|
)%
|
|
0.7
|
%
|
|
(1.1
|
)%
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
$
|
4,611
|
|
|
$
|
4,672
|
|
|
$
|
6,232
|
|
Gross increases for tax positions of prior years
|
394
|
|
|
—
|
|
|
—
|
|
|||
Gross decreases for federal tax rate change for tax positions of prior years
|
—
|
|
|
—
|
|
|
(1,670
|
)
|
|||
Gross increases for tax positions of current year
|
34
|
|
|
45
|
|
|
110
|
|
|||
Lapse of statute of limitations
|
(213
|
)
|
|
(106
|
)
|
|
—
|
|
|||
Balance at end of year
|
$
|
4,826
|
|
|
$
|
4,611
|
|
|
$
|
4,672
|
|
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(20,044
|
)
|
|
$
|
54,343
|
|
|
$
|
(45,291
|
)
|
Denominator:
|
|
|
|
|
|
||||||
Weighted-average common stock outstanding, basic
|
31,529
|
|
|
30,459
|
|
|
29,179
|
|
|||
Dilutive potential common shares:
|
|
|
|
|
|
||||||
Stock options, RSU's, RSAs and ESPP
|
—
|
|
|
948
|
|
|
—
|
|
|||
Shares used in computation of diluted net income (loss) per share
|
31,529
|
|
|
31,407
|
|
|
29,179
|
|
|||
Basic net income (loss) per share
|
$
|
(0.64
|
)
|
|
$
|
1.78
|
|
|
$
|
(1.55
|
)
|
Diluted net income (loss) per share
|
$
|
(0.64
|
)
|
|
$
|
1.73
|
|
|
$
|
(1.55
|
)
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Company contribution to 401 (k) plan
|
$
|
125
|
|
|
$
|
141
|
|
|
$
|
259
|
|
|
Balance Sheets Classification
|
|
December 31, 2019
|
|
January 1, 2019
|
||||
Assets
|
|
|
|
|
|
||||
Operating lease assets
|
Other assets
|
|
$
|
2,202
|
|
|
$
|
4,048
|
|
Liabilities
|
|
|
|
|
|
||||
Operating lease liabilities - current
|
Other current liabilities
|
|
1,150
|
|
|
1,157
|
|
||
Operating lease liabilities - long-term
|
Other long-term liabilities
|
|
2,664
|
|
|
3,693
|
|
||
Total lease liabilities
|
|
|
$
|
3,814
|
|
|
$
|
4,850
|
|
Cash paid within operating cash flow
|
$
|
1,178
|
|
Weighted average lease terms (in years)
|
3.35
|
|
|
Year ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Operating lease costs
|
$
|
1,120
|
|
|
$
|
1,181
|
|
|
$
|
1,307
|
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Mobile, Wearables, and Consumer
|
63
|
%
|
|
81
|
%
|
|
48
|
%
|
Gaming Devices
|
16
|
%
|
|
5
|
%
|
|
31
|
%
|
Automotive
|
21
|
%
|
|
13
|
%
|
|
15
|
%
|
Medical
|
—
|
%
|
|
1
|
%
|
|
6
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Asia
|
65
|
%
|
|
12
|
%
|
|
63
|
%
|
North America
|
28
|
%
|
|
77
|
%
|
|
22
|
%
|
Europe
|
7
|
%
|
|
11
|
%
|
|
15
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Korea
|
45
|
%
|
|
*
|
|
|
18
|
%
|
United States of America
|
28
|
%
|
|
77
|
%
|
|
22
|
%
|
Japan
|
17
|
%
|
|
*
|
|
|
39
|
%
|
Other countries with less than 10% in a year
|
10
|
%
|
|
23
|
%
|
|
21
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||
United States of America
|
85
|
%
|
|
91
|
%
|
Canada
|
15
|
%
|
|
8
|
%
|
Rest of World
|
—
|
%
|
|
1
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
Years Ended December 31,
|
|||||||
|
2019
|
|
2018
|
|
2017
|
|||
Samsung Electronics
|
27
|
%
|
|
—
|
%
|
|
—
|
%
|
Apple Inc.
|
*
|
|
|
69
|
%
|
|
—
|
%
|
Customer A
|
*
|
|
|
—
|
%
|
|
20
|
%
|
Customer B
|
*
|
|
|
*
|
|
|
18
|
%
|
Customer C
|
*
|
|
|
*
|
|
|
11
|
%
|
Total
|
27
|
%
|
|
69
|
%
|
|
49
|
%
|
|
Q1 2019
|
|
Q2 2019
|
|
Q3 2019
|
|
Q4 2019
|
|
2019 (1)
|
||||||||||
Revenues
|
$
|
5,122
|
|
|
$
|
8,743
|
|
|
$
|
10,624
|
|
|
$
|
11,464
|
|
|
$
|
35,953
|
|
Gross profit
|
$
|
5,107
|
|
|
$
|
8,703
|
|
|
$
|
10,562
|
|
|
$
|
11,411
|
|
|
$
|
35,783
|
|
Operating income (loss)
|
$
|
(11,499
|
)
|
|
$
|
(9,155
|
)
|
|
$
|
(1,275
|
)
|
|
$
|
478
|
|
|
$
|
(21,451
|
)
|
Income (loss) before provision for taxes
|
$
|
(10,901
|
)
|
|
$
|
(8,623
|
)
|
|
$
|
(1,299
|
)
|
|
$
|
1,250
|
|
|
$
|
(19,573
|
)
|
Benefit (provision) for income taxes
|
$
|
(115
|
)
|
|
$
|
3
|
|
|
$
|
(88
|
)
|
|
$
|
(271
|
)
|
|
$
|
(471
|
)
|
Net income (loss)
|
$
|
(11,016
|
)
|
|
$
|
(8,620
|
)
|
|
$
|
(1,387
|
)
|
|
$
|
979
|
|
|
$
|
(20,044
|
)
|
Basic net income (loss) per share
|
$
|
(0.35
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.64
|
)
|
Shares used in calculating basic net income (loss) per share
|
31,089
|
|
|
31,578
|
|
|
31,711
|
|
|
31,731
|
|
|
31,529
|
|
|||||
Diluted net income (loss) per share
|
$
|
(0.35
|
)
|
|
$
|
(0.27
|
)
|
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.64
|
)
|
Shares used in calculating diluted net income (loss) per share
|
31,089
|
|
|
31,578
|
|
|
31,711
|
|
|
31,904
|
|
|
31,529
|
|
|
Q1 2018
|
|
Q2 2018
|
|
Q3 2018
|
|
Q4 2018
|
|
2018 (1)
|
||||||||||
Revenues
|
$
|
85,416
|
|
|
$
|
6,144
|
|
|
$
|
8,552
|
|
|
$
|
10,867
|
|
|
$
|
110,979
|
|
Gross profit
|
$
|
85,381
|
|
|
$
|
6,050
|
|
|
$
|
8,491
|
|
|
$
|
10,839
|
|
|
$
|
110,761
|
|
Operating income (loss)
|
$
|
70,105
|
|
|
$
|
(8,295
|
)
|
|
$
|
(5,163
|
)
|
|
$
|
(3,546
|
)
|
|
$
|
53,101
|
|
Income (loss) before provision for taxes
|
$
|
70,336
|
|
|
$
|
(7,920
|
)
|
|
$
|
(4,618
|
)
|
|
$
|
(3,063
|
)
|
|
$
|
54,735
|
|
Benefit (provision) for income taxes
|
$
|
(453
|
)
|
|
$
|
162
|
|
|
$
|
(22
|
)
|
|
$
|
(79
|
)
|
|
$
|
(392
|
)
|
Net income (loss)
|
$
|
69,883
|
|
|
$
|
(7,758
|
)
|
|
$
|
(4,640
|
)
|
|
$
|
(3,142
|
)
|
|
$
|
54,343
|
|
Basic net income (loss) per share
|
$
|
2.35
|
|
|
$
|
(0.25
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
1.78
|
|
Shares used in calculating basic net income (loss) per share
|
29,700
|
|
|
30,527
|
|
|
30,780
|
|
|
30,814
|
|
|
30,459
|
|
|||||
Diluted net income (loss) per share
|
$
|
2.29
|
|
|
$
|
(0.25
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
(0.10
|
)
|
|
$
|
1.73
|
|
Shares used in calculating diluted net income (loss) per share
|
30,566
|
|
|
30,527
|
|
|
30,780
|
|
|
30,814
|
|
|
31,407
|
|
1
|
Financial Statements
|
|
Page
|
2
|
Financial Statement Schedules
|
3
|
Exhibits:
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
|
|
8-K
|
|
000-27969
|
|
3.1
|
|
November 4,
2016
|
|
|
||
|
|
8-K
|
|
000-27969
|
|
3.1
|
|
June 7,
2017
|
|
|
||
|
|
8-K
|
|
000-27969
|
|
3.1
|
|
July 29,
2003
|
|
|
||
|
|
8-K
|
|
000-27969
|
|
3.1
|
|
December 27,
2017
|
|
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
*
|
|
S-1/A
|
|
333-86361
|
|
10.21
|
|
October 5,
1999
|
|
|
||
#
|
|
S-3
|
|
333-108607
|
|
10.3
|
|
September 8,
2003
|
|
|
||
#
|
|
S-3/A
|
|
333-108607
|
|
10.4
|
|
February 13,
2004
|
|
|
||
*
|
|
S-3/A
|
|
333-108607
|
|
10.11
|
|
March 25,
2004
|
|
|
||
*
|
|
8-K
|
|
000-27969
|
|
99.1
|
|
June 12,
2007
|
|
|
||
*
|
|
8-K
|
|
000-27969
|
|
99.4
|
|
June 12,
2007
|
|
|
||
*
|
|
8-K
|
|
000-27969
|
|
99.5
|
|
June 12,
2007
|
|
|
||
*
|
|
|
|
|
|
|
|
|
|
X
|
||
*
|
|
8-K
|
|
001-38334
|
|
10.1
|
|
June 18,
2019
|
|
|
||
*
|
|
S-8
|
|
333-233353
|
|
4.4
|
|
August 19,
2019
|
|
|
||
*
|
|
10-Q
|
|
000-27969
|
|
10.3
|
|
August 5,
2011
|
|
|
||
*
|
|
S-8
|
|
333-233353
|
|
4.6
|
|
August 19,
2019
|
|
|
||
|
|
10-Q
|
|
000-27969
|
|
10.2
|
|
November 7,
2011
|
|
|
||
|
|
8-K
|
|
000-27969
|
|
10.1
|
|
November 14,
2014
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
#
|
|
10-Q/A
|
|
01-38334
|
|
10.2
|
|
July 31,
2018
|
|
|
||
*
|
|
8-K
|
|
01-38334
|
|
10.1
|
|
January 7,
2019
|
|
|
||
|
|
10-Q
|
|
001-38334
|
|
10.1
|
|
August 14,
2019
|
|
|
||
*
|
|
10-Q
|
|
001-38334
|
|
10.4
|
|
August 14,
2019
|
|
|
||
*
|
|
10-Q
|
|
001-38334
|
|
10.5
|
|
August 14,
2019
|
|
|
||
*
|
|
10-Q
|
|
001-38334
|
|
10.1
|
|
November 7,
2019
|
|
|
||
*
|
|
|
|
|
|
|
|
|
|
X
|
||
*
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
|
|
|
|
|
|
|
|
|
|
X
|
||
+
|
|
|
|
|
|
|
|
|
|
X
|
||
+
|
|
|
|
|
|
|
|
|
|
X
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed
Herewith
|
||||||
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|
|||||
101.INS
|
|
XBRL Report Instance Document
|
|
|
|
|
|
|
|
|
|
X
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
|
|
|
|
X
|
101.CAL
|
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.LAB
|
|
XBRL Taxonomy Label Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
101.PRE
|
|
XBRL Presentation Linkbase Document
|
|
|
|
|
|
|
|
|
|
X
|
#
|
Confidential treatment has been granted for portions of this exhibit by the SEC.
|
*
|
Constitutes a management contract or compensatory plan.
|
+
|
This certification is deemed not filed for purposes of section 18 of the Exchange Act, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act, as amended, or the Exchange Act, as amended.
|
|
|
|
|
|
IMMERSION CORPORATION
|
|
|
||
|
|
|
|
|
By
|
|
/S/ AARON AKERMAN
|
|
|
|
|
Aaron Akerman
|
|
|
|
|
Chief Financial Officer
|
|
|
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ RAMZI HAIDAMUS
|
|
Chief Executive Officer and Director (Principal Executive Officer)
|
|
March 6, 2020
|
Ramzi Haidamus
|
|
|
|
|
|
|
|
|
|
/S/ AARON AKERMAN
|
|
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)
|
|
March 6, 2020
|
Aaron Akerman
|
|
|
|
|
|
|
|
|
|
/S/ SHARON HOLT
|
|
Chairman of the Board and Director
|
|
March 6, 2020
|
Sharon Holt
|
|
|
|
|
|
|
|
|
|
/S/ SUMIT AGARWAL
|
|
Director
|
|
March 6, 2020
|
Sumit Agarwal
|
|
|
|
|
|
|
|
|
|
/S/ MATTHEW FREY
|
|
Director
|
|
March 6, 2020
|
Matthew Frey
|
|
|
|
|
|
|
|
|
|
/S/ SIDNEY GANIS
|
|
Director
|
|
March 6, 2020
|
Sidney Ganis
|
|
|
|
|
|
|
|
|
|
/S/WILLIAM C. MARTIN
|
|
Director
|
|
March 6, 2020
|
William C. Martin
|
|
|
|
|
|
|
|
|
|
/S/JONATHAN VISBAL
|
|
Director
|
|
March 6, 2020
|
Jonathan Visbal
|
|
|
|
|
•
|
100,000,000 shares are designated as Common Stock; and
|
•
|
5,000,000 shares are designated as preferred stock, $0.001 par value per share (“Preferred Stock”).
|
•
|
Prior to such time the Board of Directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;
|
•
|
Upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
•
|
At or subsequent to such time the business combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.
|
•
|
Pursuant to our previous Amended and Restated Certificate of Incorporation, our Board of Directors was divided into three classes — Class I, II, and III directors. Beginning in 2018, each director nominated for election is elected for a one-year term of office. The Board of Directors will become declassified as of the date of the 2020 annual meeting of stockholders.
|
•
|
Subject to the rights of holders of any class or series of Preferred Stock, if any, to elect additional directors under specified circumstances, until the 2020 annual meeting of stockholders, any director may be removed at any time, but only for cause, upon the affirmative vote of the holders of a majority of the combined voting power of the then outstanding stock of the Company entitled to vote for the election of directors. Subject to the rights of holders of any class or series of Preferred Stock, if any, to elect additional directors under specified circumstances, from and after the 2020 annual meeting of stockholders, directors may be removed at any time with or without cause upon the affirmative vote of the holders of a majority of the combined voting power of the then outstanding stock of the Company entitled to vote for the election of directors.
|
•
|
The Board has the exclusive right to set the authorized number of directors and to fill vacancies on the Board. Our Certificate of Incorporation requires that any action required or permitted to be taken by stockholders of Immersion must be effected at a duly called annual or special meeting of the stockholders and may not be effected by a consent in writing. In addition, special meetings of the stockholders of Immersion may be called only by the Board or the holders of not less than ten percent of the shares entitled to vote at such a meeting. Advance notice is required for stockholder proposals or director nominations by stockholders.
|
•
|
In addition, pursuant to our Certificate of Incorporation, the Board has authority to issue shares of Preferred Stock and to fix the rights, preferences, privileges and restrictions, including voting rights, of these shares without any further vote or action by the stockholders. The rights of the holders of the Common Stock will be subject to, and may be adversely affected by, the rights of the holders of any Preferred Stock that may be issued in the future. The issuance of Preferred Stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more difficult for a third party to acquire a majority of the outstanding voting stock of the Company, thereby delaying, deferring or preventing a change in control of the company. Furthermore, such Preferred Stock may have other rights, including economic rights, senior to the Common Stock, and as a result, the issuance of such Preferred Stock could have a material adverse effect on the market price of the Common Stock.
|
A.
|
[***]% of your target bonus will be based on Corporate performance as follows.
|
Revenue (Weighted [***]%)
|
Threshold
|
|
Target
|
|
Maximum
|
|
Revenue
|
$25,943,903
|
$29,186,891
|
$32,429,879
|
$35,672,867
|
$38,915,855
|
|
% of target achievement
|
80%
|
90%
|
100%
|
110%
|
120%
|
|
Payout (as % of target)
|
50%
|
75%
|
100%
|
150%
|
200%
|
|
|
|
|
|
|
|
|
NGNI (Weighted [***]%)
|
Threshold
|
|
Target
|
|
|
Maximum
|
NGNI
|
$(4,910,400)
|
$(4,501,200)
|
$(4,092,000)
|
$(3,682,800)
|
$(3,273,600)
|
$0
|
% of target achievement
|
80%
|
90%
|
100%
|
110%
|
120%
|
|
Payout (as % of target)
|
50%
|
75%
|
100%
|
100%
|
100%
|
200%
|
B.
|
[***]% of your target bonus will be based on Litigation MBO’s and Personal MBO’s as follows.
|
1.
|
(90%) Successful management of current Samsung litigation matters in the best long-term interests of company/shareholders as measured by:
|
a.
|
World-class execution of all litigation related matters
|
b.
|
World-class management of any settlement discussions
|
c.
|
Operation of Business with best business strategies while in litigation
|
2.
|
(10%) Successful management of current Motorola litigation matter in the best long-term interests of company/shareholders as measured by:
|
a.
|
World-class execution of all litigation related matters
|
b.
|
World-class management of any settlement discussions
|
c.
|
Operation of Business with best business strategies while in litigation
|
•
|
Goals and Objectives will be agreed upon between the Plan Participant and the CEO.
|
•
|
Evaluation of the achievement of such goals and objectives shall be made by the Company’s Compensation Committee with input from the CEO
|
|
|
|
Name
|
|
Jurisdiction of Incorporation
|
3285118 N.S. Inc.
|
|
Nova Scotia, Canada
|
Immersion Canada Corporation
|
|
Nova Scotia, Canada
|
Immersion Medical, Inc.
|
|
Maryland, USA
|
Immersion International, LLC
|
|
Delaware, USA
|
Haptify, Inc.
|
|
Delaware, USA
|
Immersion Software Ireland Limited
|
|
Ireland
|
Immersion Technology International Limited
|
|
Ireland
|
Immersion Japan, K.K.
|
|
Japan
|
Immersion Limited
|
|
Hong Kong
|
Immersion (Shanghai) Science & Technology Co., Ltd.
|
|
Shanghai, China
|
/s/ RAMZI HAIDAMUS
|
|
Ramzi Haidamus
|
|
Chief Executive Officer
|
|
/s/ AARON AKERMAN
|
|
Aaron Akerman
|
|
Chief Financial Officer
|
|
/s/ RAMZI HAIDAMUS
|
|
Ramzi Haidamus
|
|
Chief Executive Officer
|
|
AARON AKERMAN
|
|
Aaron Akerman
|
|
Chief Financial Officer
|
|