Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 08, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Year Focus | 2023 | |
Document Period End Date | Sep. 30, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-38334 | |
Entity Registrant Name | Immersion Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3180138 | |
Entity Address, Address Line One | 2999 N.E. 191st Street | |
Entity Address, Address Line Two | Suite 610 | |
Entity Address, City or Town | Aventura | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33180 | |
City Area Code | 408 | |
Local Phone Number | 467-1900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 31,839,986 | |
Entity Central Index Key | 0001058811 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | IMMR | |
Security Exchange Name | NASDAQ | |
Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series B Junior Participating Preferred Stock Purchase Rights | |
Trading Symbol | IMMR | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 28,701 | $ 48,820 |
Investments - current | 121,997 | 100,918 |
Accounts and other receivables | 2,558 | 1,235 |
Prepaid expenses and other current assets | 7,589 | 9,347 |
Total current assets | 160,845 | 160,320 |
Property and equipment, net | 231 | 293 |
Investments - noncurrent | 29,855 | 17,040 |
Long-term deposits | 6,230 | 4,324 |
Deferred tax assets | 7,217 | 7,217 |
Other assets | 303 | 916 |
Total assets | 204,681 | 190,110 |
Current liabilities: | ||
Accounts payable | 44 | 86 |
Accrued compensation | 616 | 2,029 |
Deferred revenue - current | 4,731 | 4,766 |
Other current liabilities | 20,424 | 12,465 |
Total current liabilities | 25,815 | 19,346 |
Deferred revenue - noncurrent | 9,088 | 12,629 |
Other long-term liabilities | 345 | 435 |
Total liabilities | 35,248 | 32,410 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 322,747 | 322,714 |
Accumulated other comprehensive income | 1,195 | 202 |
Accumulated deficit | (52,030) | (70,016) |
Treasury stock | (102,479) | (95,200) |
Total stockholders’ equity | 169,433 | 157,700 |
Total liabilities and stockholders’ equity | $ 204,681 | $ 190,110 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 9,482 | $ 14,006 | $ 23,539 | $ 29,297 |
Operating expenses: | ||||
Sales and marketing | 367 | 282 | 861 | 990 |
Research and development | 30 | 254 | 259 | 1,118 |
General and administrative | 2,566 | 2,540 | 9,528 | 8,550 |
Total operating expenses | 2,963 | 3,076 | 10,648 | 10,658 |
Operating income | 6,519 | 10,930 | 12,891 | 18,639 |
Interest and other income (loss), net | (2,554) | (2,348) | 10,731 | (6,413) |
Income before provision for income taxes | 3,965 | 8,582 | 23,622 | 12,226 |
Provision for income taxes | (1,285) | (877) | (5,636) | (1,264) |
Net income | $ 2,680 | $ 7,705 | $ 17,986 | $ 10,962 |
Basic net income per share (in dollars per share) | $ 0.08 | $ 0.23 | $ 0.56 | $ 0.33 |
Shares used in calculating basic net income per share (in shares) | 32,523 | 33,201 | 32,254 | 33,601 |
Diluted net income per share (in dollars per share) | $ 0.08 | $ 0.23 | $ 0.55 | $ 0.32 |
Shares used in calculating diluted net income per share (in shares) | 32,750 | 33,682 | 32,586 | 34,035 |
Other comprehensive income, net of tax | ||||
Deferred gains on available-for-sale marketable debt securities | $ 320 | $ 156 | $ 776 | $ (1,025) |
Realized losses on available-for-sale marketable debt securities reclassified to net income | 0 | 188 | 217 | 556 |
Total other comprehensive income | 320 | 344 | 993 | (469) |
Total comprehensive income | 3,000 | 8,049 | 18,979 | 10,493 |
Royalty and license | ||||
Revenues: | ||||
Total revenues | 9,474 | 13,931 | 23,401 | 29,079 |
Development, services, and other | ||||
Revenues: | ||||
Total revenues | $ 8 | $ 75 | $ 138 | $ 218 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2021 | 46,534,198 | 12,143,433 | |||
Beginning balance at Dec. 31, 2021 | $ 141,295 | $ 323,296 | $ 412 | $ (100,680) | $ (81,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 10,962 | 10,962 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (469) | (469) | |||
Stock repurchases (in shares) | 2,174,793 | ||||
Stock repurchases | (11,281) | $ (11,281) | |||
Release of restricted stock units and awards, net of shares withheld (in shares) | 344,944 | 28,317 | |||
Release of restricted stock units and awards, net of shares withheld | (154) | $ (154) | |||
Issuance of stock for ESPP purchase (in shares) | 11,416 | ||||
Issuance of stock for ESPP purchase | 51 | $ 51 | |||
Shares issued to an employee in lieu of cash compensation (in shares) | 16,517 | ||||
Shares issued to an employee in lieu of cash compensation | 84 | $ 84 | |||
Shares issued in connection with public offering, net of issuance costs | 5 | 5 | |||
Stock-based compensation | 2,661 | $ 2,661 | |||
Ending balance (in shares) at Sep. 30, 2022 | 46,907,075 | 14,346,543 | |||
Ending balance at Sep. 30, 2022 | 143,154 | $ 326,097 | (57) | (89,718) | $ (93,168) |
Beginning balance (in shares) at Jun. 30, 2022 | 46,851,509 | 13,378,528 | |||
Beginning balance at Jun. 30, 2022 | 139,737 | $ 325,351 | (401) | (97,423) | $ (87,790) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 7,705 | 7,705 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 344 | 344 | |||
Stock repurchases (in shares) | 954,247 | ||||
Stock repurchases | (5,304) | $ (5,304) | |||
Release of restricted stock units and awards, net of shares withheld (in shares) | 51,875 | 13,768 | |||
Release of restricted stock units and awards, net of shares withheld | (74) | $ (74) | |||
Issuance of stock for ESPP purchase (in shares) | 3,691 | ||||
Issuance of stock for ESPP purchase | 16 | $ 16 | |||
Stock-based compensation | 730 | $ 730 | |||
Ending balance (in shares) at Sep. 30, 2022 | 46,907,075 | 14,346,543 | |||
Ending balance at Sep. 30, 2022 | 143,154 | $ 326,097 | (57) | (89,718) | $ (93,168) |
Beginning balance (in shares) at Dec. 31, 2022 | 46,974,598 | 14,727,582 | |||
Beginning balance at Dec. 31, 2022 | 157,700 | $ 322,714 | 202 | (70,016) | $ (95,200) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 17,986 | 17,986 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 993 | 993 | |||
Stock repurchases (in shares) | 898,757 | ||||
Stock repurchases | (6,180) | $ (6,180) | |||
Release of restricted stock units and awards, net of shares withheld (in shares) | 508,344 | 140,701 | |||
Release of restricted stock units and awards, net of shares withheld | (1,099) | $ (1,099) | |||
Proceeds from stock options exercises (in shares) | 21,222 | ||||
Proceeds from stock options exercises | 160 | $ 160 | |||
Issuance of stock for ESPP purchase (in shares) | 1,298 | ||||
Issuance of stock for ESPP purchase | 6 | $ 6 | |||
Shares issued to an employee in lieu of cash compensation (in shares) | 72,803 | ||||
Shares issued to an employee in lieu of cash compensation | 538 | $ 538 | |||
Dividend declared | (3,197) | (3,197) | |||
Stock-based compensation | 2,526 | $ 2,526 | |||
Ending balance (in shares) at Sep. 30, 2023 | 47,578,265 | 15,767,040 | |||
Ending balance at Sep. 30, 2023 | 169,433 | $ 322,747 | 1,195 | (52,030) | $ (102,479) |
Beginning balance (in shares) at Jun. 30, 2023 | 47,519,064 | 15,260,452 | |||
Beginning balance at Jun. 30, 2023 | 170,036 | $ 322,870 | 875 | (54,710) | $ (98,999) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,680 | 2,680 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 320 | 320 | |||
Stock repurchases (in shares) | 485,061 | ||||
Stock repurchases | (3,328) | $ (3,328) | |||
Release of restricted stock units and awards, net of shares withheld (in shares) | 51,875 | 21,527 | |||
Release of restricted stock units and awards, net of shares withheld | (152) | $ (152) | |||
Proceeds from stock options exercises (in shares) | 0 | ||||
Proceeds from stock options exercises | 0 | $ 0 | |||
Shares issued to an employee in lieu of cash compensation (in shares) | 7,326 | ||||
Shares issued to an employee in lieu of cash compensation | 48 | $ 48 | |||
Dividend declared | (991) | (991) | |||
Stock-based compensation | 820 | $ 820 | |||
Ending balance (in shares) at Sep. 30, 2023 | 47,578,265 | 15,767,040 | |||
Ending balance at Sep. 30, 2023 | $ 169,433 | $ 322,747 | $ 1,195 | $ (52,030) | $ (102,479) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 17,986 | $ 10,962 |
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: | ||
Depreciation of property and equipment | 56 | 95 |
Reduction in carrying value of right of use assets | 277 | 524 |
Stock-based compensation | 2,526 | 2,661 |
Net (gains) losses on investment in marketable securities | (4,330) | 13,288 |
Net loss on derivative instruments | (341) | (3,393) |
Foreign currency remeasurement gains | 68 | 161 |
Shares issued to an employee in lieu of cash compensation | 538 | 84 |
Other noncash | (86) | (29) |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (1,323) | (1,373) |
Prepaid expenses and other current assets | 1,024 | 5,702 |
Long-term deposits | (1,967) | 1,114 |
Other assets | 337 | 5,084 |
Accounts payable | (44) | 16 |
Accrued compensation | (1,413) | 715 |
Other current liabilities | 3,080 | 527 |
Deferred revenue | (3,576) | (2,954) |
Other long-term liabilities | (33) | (950) |
Net cash and cash equivalents provided by operating activities | 12,779 | 32,234 |
Cash flows provided by (used in) investing activities: | ||
Purchases of marketable securities and other investments | (158,347) | (131,100) |
Proceeds from sale or maturities of marketable securities and other investments | 130,602 | 95,225 |
Proceeds from sale of derivative instruments | 17,888 | 11,170 |
Payments for settlement of derivative instruments | (9,508) | (10,844) |
Purchases of property and equipment | (1) | (29) |
Net cash and cash equivalents used in investing activities | (19,366) | (35,578) |
Cash flows provided by (used in) financing activities: | ||
Dividend payments to stockholders | (6,419) | 0 |
Payment for purchases of treasury stock | (6,180) | (11,281) |
Proceeds from issuance of common stock under employee stock purchase plan | 6 | 51 |
Proceeds from stock options exercises | 160 | 0 |
Shares withheld to cover payroll taxes | (1,099) | (154) |
Other financing activities | 0 | 5 |
Net cash and cash equivalents used in financing activities | (13,532) | (11,379) |
Net decrease in cash and cash equivalents | (20,119) | (14,723) |
Cash and cash equivalents: | ||
Beginning of period | 48,820 | 51,490 |
End of period | 28,701 | 36,767 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 883 | 662 |
Supplemental disclosure of non-cash investing, and financing activities: | ||
Dividends declared but not yet paid | 991 | 0 |
Leased assets obtained in exchange for new operating lease liabilities | $ 0 | $ 120 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | 1. SIGNIFICANT ACCOUNTING POLICIES Description of Business Immersion Corporation (the “Company”, “Immersion”, “we” or “us”) was incorporated in 1993 1999 Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion and our wholly-owned subsidiaries. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( “ ” Use of Estimates The preparation of condensed consolidated financial statements and related disclosures requires management to make estimates and assumptions that affect the reported amounts of the condensed consolidated financial statements. Significant estimates include revenue recognition, fair value of financial instruments, valuation of income taxes including uncertain tax provisions, stock-based compensation and long-term deposits for withholding taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The results of operations for the nine months ended September 30, 2023 Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Segment Information We develop, license, and support a wide range of intellectual property (“IP”) that more fully engage users’ sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial. We manage these application areas in one one Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one Recent Account Pronouncements We do not expect recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2023 |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | 2. REVENUE RECOGNITION Disaggregated Revenue The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2023 , and 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fixed fee $ 1,191 $ 7,662 $ 3,594 $ 10,653 Per-unit royalty revenue 8,283 6,269 19,807 18,426 Total royalty and license revenue 9,474 13,931 23,401 29,079 Development, services, and other revenue 8 75 138 218 Total revenues $ 9,482 $ 14,006 $ 23,539 $ 29,297 Per-unit Royalty Revenue We record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. When we do not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows us to adequately review the reports and include the actual amounts in our quarterly results for such quarter, we accrue the related revenue based on estimates of our licensees’ underlying sales, subject to certain constraints on our ability to estimate such amounts. We develop such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a look back at historical royalty reporting for each of our customers, and industry information available for the licensed products. As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by our licensees. In the three months ended September 30, 2023 million to increase royalty revenue. We recorded adjustments of $0.2 million to decrease royalty revenue during the three months ended September 30, 2022 Contract Assets As of September 30, 2023 , we had contract assets of $6.3 million included within Prepaid expenses and other current asset s, and $0.2 million included within Other assets on the Condensed Consolidated Balance Sheets . As of December 31 2022 Prepaid expenses and other current assets , and $0.5 million included within Other assets on the Condensed Consolidated Balance Sheets . Contract assets decreased by $1.7 million from January 1 2023 30 2023 Deferred Revenue We recognize revenue from a fixed fee license agreement when we have satisfied our performance obligations, which typically occurs upon the transfer of rights to our technology upon the execution of the license agreement. However, in certain contracts, we grant a license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, we have concluded that there are two separate performance obligations: • Performance Obligation A: Transfer of rights to our patent portfolio as it exists when the contract is executed; and • Performance Obligation B: Transfer of rights to our 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. If a fixed fee license agreement contains only Performance Obligation A, we recognize the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, we allocate the transaction price based on the standalone price for each of the two Deferred revenue on the Condensed Consolidated Balance Sheet s. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. Based on contracts signed and payments received as of September 30, 2023 one three three As of December 31, 2022, total deferred revenue was $17.4 September 30, 2023 |
INVESTMENTS AND FAIR VALUE MEAS
INVESTMENTS AND FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | 3 INVESTMENTS AND FAIR VALUE MEASUREMENTS Marketable Securities We invest surplus funds in excess of operational requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns, maintaining a high degree of liquidity, and seeking to avoid the permanent impairment of principal. We regularly review our investment portfolio to identify and evaluate investments that have indicators of possible impairment. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, we will record an impairment charge and establish a new cost basis for the investment. Marketable securities as of September 30, 2023 December 31, 2022 September 30, 2023 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Marketable equity securities Mutual funds $ 13,009 $ — $ (1,381 ) $ 11,628 Equity securities 69,253 3,087 (7,437 ) 64,903 Total marketable equity securities 82,262 3,087 (8,818 ) 76,531 Marketable debt securities U.S. treasury securities 58,237 808 (87 ) 58,958 Corporate bonds 16,123 273 (33 ) 16,363 Total marketable debt securities 74,360 1,081 (120 ) 75,321 $ 156,622 $ 4,168 $ (8,938 ) $ 151,852 December 31, 2022 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Marketable equity securities Mutual funds $ 26,352 $ — $ (3,143 ) $ 23,209 Equity securities 53,273 2,776 (5,836 ) 50,213 Total marketable equity securities 79,625 2,776 (8,979 ) 73,422 Marketable debt securities U.S. treasury securities 25,640 182 (24 ) 25,798 Corporate bonds 13,496 48 (106 ) 13,438 Total marketable debt securities 39,136 230 (130 ) 39,236 $ 118,761 $ 3,006 $ (9,109 ) $ 112,658 The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of September 30, 2023 (in thousands) are as follows: September 30, 2023 Amortized Cost Fair Value Less than 1 $ 44,691 $ 45,466 1 5 29,669 29,855 Total $ 74,360 $ 75,321 Derivative Financial Instruments Our derivative instruments consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Cost Unrealized Losses Fair Value Derivative instruments $ 9,306 $ 2,383 $ 11,689 $ 9,306 $ 2,383 $ 11,689 December 31, 2022 Cost Unrealized Losses Fair Value Derivative instruments $ 2,987 $ 662 $ 3,649 $ 2,987 $ 662 $ 3,649 A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net unrealized gains (losses) recognized on marketable equity securities $ (287 ) $ (9,278 ) $ 472 $ (14,062 ) Net realized gains (losses) recognized on marketable equity securities (2,588 ) (555 ) 3,643 218 Net unrealized gains (losses) recognized on derivative instruments (1,631 ) 3,907 (1,825 ) (696 ) Net realized gains recognized on derivative instruments (72 ) 2,214 2,165 4,089 Net realized gains recognized on marketable debt securities — 188 217 556 Total net gains (losses) recognized in interest and other income (loss), net $ (4,578 ) $ (3,524 ) $ 4,672 $ (9,895 ) Fair Value Measurements Our financial instruments measured at fair value on a recurring basis consisted of money-market funds, mutual funds, equity securities, corporate debt securities and derivatives. Equity securities are classified within Level 1 2 Financial instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 3 September 30, 2023 , and December 31, 2022 . Financial instruments measured at fair value on a recurring basis as of September 30, 2023 December 31, 2022 are classified based on the valuation technique in the table below (in thousands): September 30, 2023 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 Total Assets: U.S. treasury securities $ 58,958 $ — $ — $ 58,958 Mutual funds 11,628 — — 11,628 Equity securities 64,903 — — 64,903 Corporate bonds — 16,363 — 16,363 Total assets at fair value $ 135,489 $ 16,363 $ — $ 151,852 Liabilities Derivative instruments $ — $ 11,689 $ — $ 11,689 Total liabilities at fair value $ — $ 11,689 $ — $ 11,689 December 31, 2022 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 Total Assets: Certificate of deposit $ — $ 5,300 $ — $ 5,300 U.S. treasury securities 25,798 — — 25,798 Mutual funds 23,209 — — 23,209 Equity securities 50,213 — — 50,213 Corporate bonds — 13,438 — 13,438 Total assets at fair value $ 99,220 $ 18,738 $ — $ 117,958 Liabilities Derivative instruments $ — $ 3,649 $ — $ 3,649 Total liabilities at fair value $ — $ 3,649 $ — $ 3,649 |
BALANCE SHEET DETAILS
BALANCE SHEET DETAILS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET DETAILS | 4. BALANCE SHEETS DETAILS Cash and Cash Equivalents Cash and cash equivalents were as follows (in thousands): September 30, 2023 December 31, 2022 Cash $ 5,818 $ 9,630 Money market funds 22,883 13,586 Certificates of deposit (1) — 25,604 Cash and cash equivalents $ 28,701 $ 48,820 (1) Represents certificates of deposit with initial maturity days of 90 Investments - Current Investments - current were as follows (in thousands): September 30, 2023 December 31, 2022 Certificates of deposit (2) $ — $ 5,300 Marketable securities 76,531 73,422 U.S. treasury securities 45,466 22,196 Short-term investments $ 121,997 $ 100,918 (2) Represents investments with initial maturity days between 91 one Accounts and Other Receivables Accounts and other receivables were as follows (in thousands): September 30, 2023 December 31, 2022 Trade accounts receivables, net $ 1,960 $ 1,003 Other receivables 598 232 Accounts and other receivables $ 2,558 $ 1,235 Allowance for credit losses as of September 30, 2023 December 31, 2022 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were as follows (in thousands): September 30, 2023 December 31, 2022 Prepaid expenses $ 1,238 $ 1,576 Contract assets - current 6,303 7,671 Other current assets 48 100 Prepaid expenses and other current assets $ 7,589 $ 9,347 Investments - noncurrent Investments- noncurrent were as follows (in thousands): September 30, 2023 December 31, 2022 U.S. treasury securities $ 13,492 $ 3,602 Marketable debt securities 16,363 13,438 Investments- noncurrent $ 29,855 $ 17,040 Other Assets Other assets were as follows (in thousands): September 30, 2023 December 31, 2022 Contract assets - long-term 220 545 Lease right-of-use assets 83 360 Other assets — 11 Total other assets $ 303 $ 916 Other Current Liabilities Other current liabilities were as follows (in thousands): September 30, 2023 December 31, 2022 Derivative instruments $ 11,689 $ 3,649 Lease liabilities - current 88 486 Income taxes payable 6,963 2,700 Dividends payable 991 4,212 Other current liabilities 693 1,418 Total other current liabilities $ 20,424 $ 12,465 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | 5 CONTINGENCIES From time to time, we receive claims from third parties asserting that our technologies, or those of our licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, we are involved in routine legal matters and contractual disputes incidental to our normal operations. In management’s opinion, unless we disclosed otherwise, the resolution of such matters will not have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. In the normal course of business, we provide indemnification of varying scope to customers, most commonly to licensees in connection with licensing arrangements that include our IP, although these provisions can cover additional matters. Historically, costs related to these guarantees have not been significant, and we are unable to estimate the maximum potential impact of these guarantees on our future results of operations. LGE Korean Withholding Tax Matter On October 16, 2017, we received a letter from LG Electronics Inc. (“LGE”) requesting that we reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following an investigation where the tax authority determined that LGE failed to withhold on LGE’s royalty payments to Immersion Software Ireland, a subsidiary of the Company, from 2012 to 2014 . Pursuant to an agreement reached with LGE, on April 8, 2020, we provided a provisional deposit to LGE in the amount of KRW 5,916,845,454 (approximately $ 5.0 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korean courts. In the second quarter of 2020 , we recorded this deposit in Long-term deposits on our Condensed Consolidated Balance Sheets . In the fourth quarter of 2021 , we recorded an impairment charge of $0.8 On November 3, 2017, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes related to the 2012 2014 2019 2022 The appellate case is in progress at the Seoul High Court and the first hearing has been scheduled for November 30, 2023. On April 25, 2023, we received notice from LGE requesting us to reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following a recent tax audit of LGE for the years 2018 2022 3,024,877,044 2.3 2023 Long-term deposits Condensed Consolidated Balance Sheets On June 29, 2023, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes related to the 2018 2022 On August 7, 2023, the Assessment Authority submitted its answer against the tax appeal. On September 8, 2023, the Appellant submitted its rebuttal brief in response thereto. 0.3 2018 2022 Long-term deposit 2023 Based on th e developments in these cases, we regularly reassess the likelihood that we will prevail in the claims from the Korean tax authorities with respect to the LGE case. To the extent that we determine that it is more likely than not that we will prevail against the claims from the Korean tax authorities, then no additional tax expense is provided for in our Condensed Consolidated Statements of Income and Comprehensive Income . In the event that we determine that it is more likely than not that we will not prevail against the claims from the Korean tax authorities, or a portion thereof, then we would estimate the anticipated additional tax expense associated with that outcome and record it as additional income tax expense in our Condensed Consolidated Statements of Income and Comprehensive Income in the period of the new determination. If the additional income tax expense was related to the periods assessed by Korean tax authorities and for which we recorded a Long-term deposits on our Condensed Consolidated Balance Sheets , then the additional income tax expense would be recorded as an impairment to the Long-term deposits . If the additional income tax expense was not related to the periods assessed by Korean tax authorities and for which we recorded in Long-term deposits on our Condensed Consolidated Balance Sheets , then the additional income tax expense would be accrued as an Other current liabilities . In the event that we do not ultimately prevail in our appeal in the Korean courts with respect to this case, the applicable deposits included in Long-term deposits Condensed Consolidated Statements of Income and Comprehensive Income Immersion Corporation vs. Meta Platforms, Inc., f/k/a Facebook, Inc. On May 26, 2022, we filed a complaint against Meta Platforms, Inc. (formerly known as Facebook, Inc.) (“Meta”) in the United States District Court for the Western District of Texas. The complaint alleges that Meta’s augmented and virtual reality (“AR/VR”) systems, including the Meta Quest 2 six The complaint against Meta asserts infringement of the following patents: • U.S. Patent No. 8,469,806 • U.S. Patent No. 8,896,524 • U.S. Patent No. 9,727,217 • U.S. Patent No. 10,248,298 • U.S. Patent No. 10,269,222 • U.S. Patent No. 10,664,143 Meta responded to the Company’s complaint on August 1, 2022. On September 12, 2022, Meta filed a motion to transfer the lawsuit to the Northern District of California or, in the alternative, to the Austin Division of the Western District of Texas. The Court denied Meta’s motion on May 30, 2023, and held the claim construction hearing on the same day. The Court adopted certain claim constructions during the hearing, and issued a formal claim construction order consistent with those constructions on July 7, 2023. On August 2, 2023, Meta filed a mandamus petition asking the Federal Circuit to reverse the district court’s order on Meta’s transfer motion. Immersion responded on August 11, 2023, and Meta filed its reply brief on August 14, 2023. Meta’s petition remains pending. Fact discovery closed on October 6, 2023. In addition, Meta filed inter partes 2023 00942 2023 00943 2023 00944 8,469,806 8,896,524 10,269,222 2023 00942 2023 0094 2023 00944 2023 00945 2023 00946 2023 00947 10,664,143 9,727,217 10,248,298 2023 00945 2023 00946 2023 00947 Immersion Corporation vs. Xiaomi Group On or about March 3, 2023, we initiated patent infringement lawsuits against several companies of the Xiaomi-Group (the “Xiaomi-Group”) Tribunal judiciaire de Paris The complaints allege that the Xiaomi-Group’s devices, including the Xiaomi 12 The complaints against the Xiaomi-Group assert infringement of the following patents: • EP 2 463 752 1 Haptisches Feedback-System mit gespeicherten Effekten • EP 2 463 752 1 Système de rendu haptique avec stockage d’effets • IN 304 396 Haptic Feedback System With Stored Effects” On June 19, 2023, Xiaomi filed an initial response to the Company’s lawsuit in India. On July 7, 2023, the Indian litigation was listed before the Learned Joint Registrar (“JR”), Mr. Siddharth Mathur. On July 11, 2023, in the German proceeding Xiaomi filed its nullity action in the German Federal Patent Court, which was served on Immersion on July 27, 2023. Immersion has until October 27, 2023 to respond. In the German infringement proceeding, Xiaomi’s statement of defense is due on October 25, 2023. Xiaomi has until December 21, 2023 to reply to Immersion’s writ of summons in the French proceeding. The Court will hear Immersion’s application for a preliminary injunction on January 4, 2024 in the Indian proceeding. Immersion Corporation vs. Valve Corporation On May 15, 2023, we filed a complaint against Valve Corporation (“ Valve seven The complaint against Valve asserts infringement of the following patents: • 7,336,260 • 8,749,507 • 9,430,042 • 9,116,546 • 10,627,907 • 10,665,067 • 11,175,738 Valve responded to the Complaint on July 24, 2023 with a motion to dismiss. Valve re-noted its motion, which changed the Company’s response deadline from August 14, 2023 to August 21, 2023. The Company timely filed its response and Valve filed its reply on August 25, 2023. The motion remains pending, and although the parties have agreed to a case schedule, the Court has not yet entered such case schedule. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | 6. STOCK-BASED COMPENSATION Stock Options and Awards Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance shares, market condition-based performance restricted stock units (“PSUs”), and other stock-based equity awards to employees, officers, directors, and consultants. On January 18, 2022, our stockholders approved the 2021 2021 2011 2021 2021 Under our equity incentive plans, stock options may be granted at prices not less than the fair market value on the date of grant for such stock options. Stock options generally vest over four seven one three A summary of our equity incentive program as of September 30, 2023 is as follows (in thousands): Common stock shares available for grant 5,028 Stock options outstanding 102 RSUs outstanding 728 RSAs outstanding 75 PSUs outstanding 400 Time-Based Stock Options The following summarizes time-based stock options activities for the nine months ended September 30, 2023 Number of Shares Underlying Stock Options (in thousands) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 140 $ 7.57 4.03 $ — Granted — — Exercised (21 ) 7.57 Canceled or expired (17 ) 7.57 Outstanding as of September 30, 2023 102 $ 7.57 0.12 $ — Vested and expected to vest at September 30, 2023 102 $ 7.57 0.12 $ — Exercisable at September 30, 2023 102 $ 7.57 0.12 $ — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the exercise price of our common stock for the options that were in-the-money. We did not grant stock options in the nine months ended September 30, 2023 Restricted Stock Units The following summarizes RSU activities for the nine months ended September 30, 2023 Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 887 $ 5.85 1.31 $ 6,226 Granted 77 7.60 Released (184 ) 5.19 Forfeited (52 ) 6.91 Outstanding at September 30, 2023 728 $ 6.12 0.98 $ 4,812 The aggregate intrinsic value is calculated as the market value as of the end of the reporting period. Restricted Stock Awards The following summarizes RSA activities for the nine months ended September 30, 2023 Number of Restricted Stock Awards (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Outstanding at December 31, 2022 119 $ 5.47 0.39 Granted 75 8.31 Released (119 ) 5.47 Forfeited — — Outstanding at September 30, 2023 75 $ 8.31 0.50 Market Condition-Based Performance Stock Units The following summarizes PSU activities for the nine months ended September 30, 2023 Number of Market Condition-Based Performance Stock Units (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Outstanding at December 31, 2022 615 $ 3.69 1.12 Granted — — Released (206 ) 3.70 Forfeited (9 ) 6.20 Outstanding at September 30, 2023 400 $ 3.63 0.75 Employee Stock Purchase Plan Under our 1999 shares in a six shares of common stock have been reserved for issuance under the ESPP. During the nine months ended September 30, 2023 , no shares were purchased under the ESPP. Effective February 1, 2023, our ESPP was discontinued and 193,134 shares expired following the ESPP termination. Stock-based Compensation Expense Valuation and amortization methods Stock-based compensation is based on the estimated fair value of awards, net of estimated forfeitures, and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation related to all of our stock-based awards and ESPP for the three and nine months ended September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options $ 10 $ 53 $ (31 ) $ 67 RSUs, RSAs and PSUs 810 678 2,557 2,593 ESPP — (1 ) — 1 Total $ 820 $ 730 $ 2,526 $ 2,661 Sales and marketing $ 113 $ 19 $ 110 $ 20 Research and development 1 18 (72 ) 96 General and administrative 706 693 2,488 2,545 Total $ 820 $ 730 $ 2,526 $ 2,661 As of September 30, 2023 , |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 7 STOCKHOLDERS’ EQUITY Stock Repurchase Program On February 23, 2022, our Board of Directors ( the “ Board” twelve (the “February 2022 Stock Repurchase Program”). one 10 5 1 10 5 1 1934 Additionally, the Board authorized the use of derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions or other similar transactions or any combination of the foregoing transactions. The stock repurchase program was implemented as a method to return value to our stockholders. The timing, pricing and sizes of any repurchases depended on a number of factors, including the market price of our common stock and general market and economic conditions. The stock repurchase program did not obligate us to repurchase any dollar amount or number of shares, and the program could be suspended or discontinued at any time. In the year ended December 31, 2022, we repurchased 1,637,566 shares of our common stock for $8.9 million at an average purchase price of $5.46 per share. The February 2022 Stock Repurchase Program was terminated on December 29, 2022. On December 29, 2022, the Board approved a stock repurchase program of up to $50.0 million of our common stock for a period of up to twelve one 10 5 1 10 5 1 1934 On August 8, 2023, the Board approved an amendment to extend the expiration date of the December 2022 Stock Repurchase Program that was set to expire on December 29, 2023 to December 29, 2024. We repurchased 898,757 shares of our common stock for $6.2 million at average purchase price of $6.8602 per share during the nine months ended September 30, 2023 Dividends Payment On November 14, 2022, our Board declared a quarterly dividend in the amount of $0.03 per share, which was paid on January 30, 2023, to stockholders of record on January 15, 2023. In addition, on December 29, 2022, the Board declared a special dividend in the amount of $0.10 per share, which was paid on January 30, 2023 to stockholders of record on January 15, 2023. On February 21, 2023, the Board declared a second quarterly dividend, in the amount of $0.03 per share, which was paid on April 28, 2023 to stockholders of record on April 13, 2023. On May 10, 2023, the Board declared a third quarterly dividend in the amount of $0.03 per share which was paid on July 28, 2023, to shareholders of record on July 13, 2023. On August 11, 2023 October 27 , 2023 to shareholders of record on October 16 , 2023 . On November 13 $0.045 per share January 25, 2024 January 14, 2024. Future dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews our capital allocation strategy from time-to-time. In the first nine months of 2023 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 8 INCOME TAXES Provision for income taxes the three and nine September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income before provision for income taxes $ 3,965 $ 8,582 $ 23,622 $ 12,226 Provision for income taxes (1,285 ) (877 ) (5,636 ) ( 1,264 ) Effective tax rate 32.4 % 10.2 % 23.9 % 10.3 % Provision for income taxes for the three and nine months ended September 30, 2023 income taxes for the three months ended September 30, 2022 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. Provision for income taxes for the nine months ended September 30, 2022 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. As of September 30, 2023 740 Income Taxes twelve As of September 30, 2023 2005 We maintain a valuation allowance against certain of our deferred tax assets, including certain federal, all state, and certain foreign deferred tax assets because of uncertainties regarding the realization of the asset balance due to historical losses, the variability of operating results, and uncertainty regarding near term projected results. If we determine the deferred tax assets are realizable based on our assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 9. NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, stock awards and ESPP. The following is a reconciliation of the denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Denominator: Weighted-average shares outstanding, basic 32,523 33,201 32,254 33,601 Shares related to outstanding options, unvested RSUs, RSAs, and PSUs 227 481 332 434 Weighted average shares outstanding, diluted 32,750 33,682 32,586 34,035 We include PSUs in the calculation of diluted earnings per share if the applicable performance condition has been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met. For the three and nine months ended September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 110 145 128 197 RSUs, RSAs and PSUs 64 15 20 27 Total 174 160 148 224 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
LEASES | 10 LEASES We lease our office space under lease arrangements with expiration dates on or before March 31, 2024. We recognize lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets Below is a summary of our right-of-use assets and lease liabilities (in thousands): Balance Sheets Classification September 30, 2023 December 31, 2022 Assets Right-of-use assets Other assets $ 83 $ 360 Liabilities Operating lease liabilities - current Other current liabilities 88 486 Operating lease liabilities - long-term Other long-term liabilities — 56 Total lease liabilities $ 88 $ 542 The table below provides supplemental information related to operating leases during the nine months ended September 30, 2023 2022 Nine Months Ended September 30, 2023 2022 Cash paid within operating cash flow $ 105 $ 982 Weighted average lease terms (in years) 0.45 0.88 Weighted average discount rates N/A 3.93 % On June 6, 2022, we entered into a sublease agreement with Innovobot Fund LLP for our facility located in Montreal Canada (the “ ” On November 12, 2014, we entered into an amendment to the lease of approximately 42,000 square feet office space in San Jose, California facilities (the “SJ Facility” 2020 for the SJ Facility. This sublease commenced in June 2020 and ended on April 30, 2023, which is the lease termination date of the San Jose Facility. Both SJ Facility lease and related sublease expired in April 2023. In accordance with provisions of ASC 842 We recognize operating lease expense and lease payments from the sublease, on a straight-line basis, in our Condensed Consolidated Statements of Income and Comprehensive Income September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 97 $ 138 $ 314 $ 343 Variable lease payments 1 98 170 329 Sublease income (49 ) (306 ) (489 ) (837 ) Total lease cost $ 49 $ (70 ) $ (5 ) $ (165 ) Minimum future lease payments obligations as of September 30, 2023 For the Years Ending December 31, 2023 $ 50 2024 39 Total lease payments 89 Less: Interest (1 ) Total lease liability $ 88 Future cash receipts from our sublease agreements as of September 30, 2023 For the Years Ending December 31, 2023 50 2024 33 Total $ 83 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | 11. Subsequent Event On November 10, 2023, we filed an additional complaint against Meta in the United States District Court for the Western District of Texas, alleging that Meta’s AR/VR systems, including the Meta Quest 3, infringe five of our patents that cover various uses of haptic effects in connection with such AR/VR systems. We are seeking to enjoin Meta from further infringement and to recover a reasonable royalty for such infringement. The complaint against Meta asserts infringement of the following patents: U.S. Patent No. 8,469,806: “System and method for providing complex haptic stimulation during input of control gestures, and relating to control of virtual equipment” U.S. Patent No. 9,727,217: “Haptically enhanced interactivity with interactive content” U.S. Patent No. 10,248,298: “Haptically enhanced interactivity with interactive content” U.S. Patent No. 10,269,222: “System with wearable device and haptic output device” U.S. Patent No. 10,664,143: “Haptically enhanced interactivity with interactive content” |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion and our wholly-owned subsidiaries. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ( “ ” |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements and related disclosures requires management to make estimates and assumptions that affect the reported amounts of the condensed consolidated financial statements. Significant estimates include revenue recognition, fair value of financial instruments, valuation of income taxes including uncertain tax provisions, stock-based compensation and long-term deposits for withholding taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The results of operations for the nine months ended September 30, 2023 |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. |
Segment Information | Segment Information We develop, license, and support a wide range of intellectual property (“IP”) that more fully engage users’ sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial. We manage these application areas in one one Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one |
Recently Adopted Pronouncements | Recent Account Pronouncements We do not expect recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2023 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue | The following table presents the disaggregation of our revenue for the three and nine months ended September 30, 2023 , and 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Fixed fee $ 1,191 $ 7,662 $ 3,594 $ 10,653 Per-unit royalty revenue 8,283 6,269 19,807 18,426 Total royalty and license revenue 9,474 13,931 23,401 29,079 Development, services, and other revenue 8 75 138 218 Total revenues $ 9,482 $ 14,006 $ 23,539 $ 29,297 |
INVESTMENTS AND FAIR VALUE ME_2
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | |
Schedule of short-term investments | Marketable securities as of September 30, 2023 December 31, 2022 September 30, 2023 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Marketable equity securities Mutual funds $ 13,009 $ — $ (1,381 ) $ 11,628 Equity securities 69,253 3,087 (7,437 ) 64,903 Total marketable equity securities 82,262 3,087 (8,818 ) 76,531 Marketable debt securities U.S. treasury securities 58,237 808 (87 ) 58,958 Corporate bonds 16,123 273 (33 ) 16,363 Total marketable debt securities 74,360 1,081 (120 ) 75,321 $ 156,622 $ 4,168 $ (8,938 ) $ 151,852 December 31, 2022 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Marketable equity securities Mutual funds $ 26,352 $ — $ (3,143 ) $ 23,209 Equity securities 53,273 2,776 (5,836 ) 50,213 Total marketable equity securities 79,625 2,776 (8,979 ) 73,422 Marketable debt securities U.S. treasury securities 25,640 182 (24 ) 25,798 Corporate bonds 13,496 48 (106 ) 13,438 Total marketable debt securities 39,136 230 (130 ) 39,236 $ 118,761 $ 3,006 $ (9,109 ) $ 112,658 |
Debt Securities, Available-for-sale | The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of September 30, 2023 (in thousands) are as follows: September 30, 2023 Amortized Cost Fair Value Less than 1 $ 44,691 $ 45,466 1 5 29,669 29,855 Total $ 74,360 $ 75,321 |
Derivatives Not Designated as Hedging Instruments | Our derivative instruments consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022 (in thousands): September 30, 2023 Cost Unrealized Losses Fair Value Derivative instruments $ 9,306 $ 2,383 $ 11,689 $ 9,306 $ 2,383 $ 11,689 December 31, 2022 Cost Unrealized Losses Fair Value Derivative instruments $ 2,987 $ 662 $ 3,649 $ 2,987 $ 662 $ 3,649 |
Realized and Unrealized Gains and Losses From Our Equity Securities and Derivative Instruments | A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net unrealized gains (losses) recognized on marketable equity securities $ (287 ) $ (9,278 ) $ 472 $ (14,062 ) Net realized gains (losses) recognized on marketable equity securities (2,588 ) (555 ) 3,643 218 Net unrealized gains (losses) recognized on derivative instruments (1,631 ) 3,907 (1,825 ) (696 ) Net realized gains recognized on derivative instruments (72 ) 2,214 2,165 4,089 Net realized gains recognized on marketable debt securities — 188 217 556 Total net gains (losses) recognized in interest and other income (loss), net $ (4,578 ) $ (3,524 ) $ 4,672 $ (9,895 ) |
Schedule of financial instruments measured at fair value on recurring basis | Financial instruments measured at fair value on a recurring basis as of September 30, 2023 December 31, 2022 are classified based on the valuation technique in the table below (in thousands): September 30, 2023 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 Total Assets: U.S. treasury securities $ 58,958 $ — $ — $ 58,958 Mutual funds 11,628 — — 11,628 Equity securities 64,903 — — 64,903 Corporate bonds — 16,363 — 16,363 Total assets at fair value $ 135,489 $ 16,363 $ — $ 151,852 Liabilities Derivative instruments $ — $ 11,689 $ — $ 11,689 Total liabilities at fair value $ — $ 11,689 $ — $ 11,689 December 31, 2022 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 Total Assets: Certificate of deposit $ — $ 5,300 $ — $ 5,300 U.S. treasury securities 25,798 — — 25,798 Mutual funds 23,209 — — 23,209 Equity securities 50,213 — — 50,213 Corporate bonds — 13,438 — 13,438 Total assets at fair value $ 99,220 $ 18,738 $ — $ 117,958 Liabilities Derivative instruments $ — $ 3,649 $ — $ 3,649 Total liabilities at fair value $ — $ 3,649 $ — $ 3,649 |
BALANCE SHEET DETAILS (Tables)
BALANCE SHEET DETAILS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents were as follows (in thousands): September 30, 2023 December 31, 2022 Cash $ 5,818 $ 9,630 Money market funds 22,883 13,586 Certificates of deposit (1) — 25,604 Cash and cash equivalents $ 28,701 $ 48,820 (1) Represents certificates of deposit with initial maturity days of 90 |
Schedule of current investments | Investments - current were as follows (in thousands): September 30, 2023 December 31, 2022 Certificates of deposit (2) $ — $ 5,300 Marketable securities 76,531 73,422 U.S. treasury securities 45,466 22,196 Short-term investments $ 121,997 $ 100,918 (2) Represents investments with initial maturity days between 91 one |
Schedule of accounts and other receivables | Accounts and other receivables were as follows (in thousands): September 30, 2023 December 31, 2022 Trade accounts receivables, net $ 1,960 $ 1,003 Other receivables 598 232 Accounts and other receivables $ 2,558 $ 1,235 |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets were as follows (in thousands): September 30, 2023 December 31, 2022 Prepaid expenses $ 1,238 $ 1,576 Contract assets - current 6,303 7,671 Other current assets 48 100 Prepaid expenses and other current assets $ 7,589 $ 9,347 |
Schedule of noncurrent investments | Investments- noncurrent were as follows (in thousands): September 30, 2023 December 31, 2022 U.S. treasury securities $ 13,492 $ 3,602 Marketable debt securities 16,363 13,438 Investments- noncurrent $ 29,855 $ 17,040 |
Schedule of other assets, net | Other assets were as follows (in thousands): September 30, 2023 December 31, 2022 Contract assets - long-term 220 545 Lease right-of-use assets 83 360 Other assets — 11 Total other assets $ 303 $ 916 |
Schedule of other current liabilities | Other current liabilities were as follows (in thousands): September 30, 2023 December 31, 2022 Derivative instruments $ 11,689 $ 3,649 Lease liabilities - current 88 486 Income taxes payable 6,963 2,700 Dividends payable 991 4,212 Other current liabilities 693 1,418 Total other current liabilities $ 20,424 $ 12,465 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of equity incentive program | A summary of our equity incentive program as of September 30, 2023 is as follows (in thousands): Common stock shares available for grant 5,028 Stock options outstanding 102 RSUs outstanding 728 RSAs outstanding 75 PSUs outstanding 400 |
Summary of time-based stock options | The following summarizes time-based stock options activities for the nine months ended September 30, 2023 Number of Shares Underlying Stock Options (in thousands) Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 140 $ 7.57 4.03 $ — Granted — — Exercised (21 ) 7.57 Canceled or expired (17 ) 7.57 Outstanding as of September 30, 2023 102 $ 7.57 0.12 $ — Vested and expected to vest at September 30, 2023 102 $ 7.57 0.12 $ — Exercisable at September 30, 2023 102 $ 7.57 0.12 $ — |
Summary of restricted stock units activities | The following summarizes RSU activities for the nine months ended September 30, 2023 Number of Restricted Stock Units (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2022 887 $ 5.85 1.31 $ 6,226 Granted 77 7.60 Released (184 ) 5.19 Forfeited (52 ) 6.91 Outstanding at September 30, 2023 728 $ 6.12 0.98 $ 4,812 |
Summary of restricted stock awards activities | The following summarizes RSA activities for the nine months ended September 30, 2023 Number of Restricted Stock Awards (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Outstanding at December 31, 2022 119 $ 5.47 0.39 Granted 75 8.31 Released (119 ) 5.47 Forfeited — — Outstanding at September 30, 2023 75 $ 8.31 0.50 |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | The following summarizes PSU activities for the nine months ended September 30, 2023 Number of Market Condition-Based Performance Stock Units (in thousands) Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period (Years) Outstanding at December 31, 2022 615 $ 3.69 1.12 Granted — — Released (206 ) 3.70 Forfeited (9 ) 6.20 Outstanding at September 30, 2023 400 $ 3.63 0.75 |
Summary of stock-based compensation expenses | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options $ 10 $ 53 $ (31 ) $ 67 RSUs, RSAs and PSUs 810 678 2,557 2,593 ESPP — (1 ) — 1 Total $ 820 $ 730 $ 2,526 $ 2,661 Sales and marketing $ 113 $ 19 $ 110 $ 20 Research and development 1 18 (72 ) 96 General and administrative 706 693 2,488 2,545 Total $ 820 $ 730 $ 2,526 $ 2,661 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provisions | Provision for income taxes the three and nine September 30, 2023 2022 Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Income before provision for income taxes $ 3,965 $ 8,582 $ 23,622 $ 12,226 Provision for income taxes (1,285 ) (877 ) (5,636 ) ( 1,264 ) Effective tax rate 32.4 % 10.2 % 23.9 % 10.3 % |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation used in computing basic and diluted net income per share | The following is a reconciliation of the denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Denominator: Weighted-average shares outstanding, basic 32,523 33,201 32,254 33,601 Shares related to outstanding options, unvested RSUs, RSAs, and PSUs 227 481 332 434 Weighted average shares outstanding, diluted 32,750 33,682 32,586 34,035 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 110 145 128 197 RSUs, RSAs and PSUs 64 15 20 27 Total 174 160 148 224 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Summary of ROU assets and lease liabilities | Below is a summary of our right-of-use assets and lease liabilities (in thousands): Balance Sheets Classification September 30, 2023 December 31, 2022 Assets Right-of-use assets Other assets $ 83 $ 360 Liabilities Operating lease liabilities - current Other current liabilities 88 486 Operating lease liabilities - long-term Other long-term liabilities — 56 Total lease liabilities $ 88 $ 542 |
Schedule of Supplemental Information to Operating Lease Expense | The table below provides supplemental information related to operating leases during the nine months ended September 30, 2023 2022 Nine Months Ended September 30, 2023 2022 Cash paid within operating cash flow $ 105 $ 982 Weighted average lease terms (in years) 0.45 0.88 Weighted average discount rates N/A 3.93 % |
Schedule of supplemental information related to operating leases and expenses | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Operating lease cost $ 97 $ 138 $ 314 $ 343 Variable lease payments 1 98 170 329 Sublease income (49 ) (306 ) (489 ) (837 ) Total lease cost $ 49 $ (70 ) $ (5 ) $ (165 ) |
Schedule of minimum future lease payment obligations | Minimum future lease payments obligations as of September 30, 2023 For the Years Ending December 31, 2023 $ 50 2024 39 Total lease payments 89 Less: Interest (1 ) Total lease liability $ 88 |
Schedule of future cash receipts from our sublease agreements | Future cash receipts from our sublease agreements as of September 30, 2023 For the Years Ending December 31, 2023 50 2024 33 Total $ 83 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 9,482 | $ 14,006 | $ 23,539 | $ 29,297 |
Total royalty and license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 9,474 | 13,931 | 23,401 | 29,079 |
Fixed fee license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 1,191 | 7,662 | 3,594 | 10,653 |
Per-unit royalty revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 8,283 | 6,269 | 19,807 | 18,426 |
Development, services, and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 8 | $ 75 | $ 138 | $ 218 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Royalty revenue, adjustment | $ 500 | $ (200) | ||
Contract assets - current | 6,303 | $ 6,303 | $ 7,671 | |
Contract assets - long-term | $ 220 | 220 | $ 545 | |
Increase (decrease) in contract with customer, asset | $ 1,700 |
REVENUE RECOGNITION - Performan
REVENUE RECOGNITION - Performance Obligation (Details) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 USD ($) Number | Dec. 31, 2022 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue, revenue recognized | $ 3.6 | |
Deferred revenue | $ 17.4 | |
Number of performance obligations | Number | 2 | |
Performance Obligation B | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 13.8 | |
Performance Obligation B | One to three years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | 8.1 | |
Performance Obligation B | More than three years | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 5.7 |
INVESTMENTS AND FAIR VALUE ME_3
INVESTMENTS AND FAIR VALUE MEASUREMENTS - AMORTIZED COST (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | $ 156,622 | $ 118,761 |
Unrealized Gains | 4,168 | 3,006 |
Unrealized Losses | (8,938) | (9,109) |
Fair Value | 151,852 | 112,658 |
Marketable Equity Securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 82,262 | 79,625 |
Unrealized Gains | 3,087 | 2,776 |
Unrealized Losses | (8,818) | (8,979) |
Fair Value | 76,531 | 73,422 |
Marketable Equity Securities | Mutual funds | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 13,009 | 26,352 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1,381) | (3,143) |
Fair Value | 11,628 | 23,209 |
Marketable Equity Securities | Equity securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 69,253 | 53,273 |
Unrealized Gains | 3,087 | 2,776 |
Unrealized Losses | (7,437) | (5,836) |
Fair Value | 64,903 | 50,213 |
Marketable Debt Securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 74,360 | 39,136 |
Unrealized Gains | 1,081 | 230 |
Unrealized Losses | (120) | (130) |
Fair Value | 75,321 | 39,236 |
Marketable Debt Securities | U.S. treasury securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 58,237 | 25,640 |
Unrealized Gains | 808 | 182 |
Unrealized Losses | (87) | (24) |
Fair Value | 58,958 | 25,798 |
Marketable Debt Securities | Corporate bonds | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 16,123 | 13,496 |
Unrealized Gains | 273 | 48 |
Unrealized Losses | (33) | (106) |
Fair Value | $ 16,363 | $ 13,438 |
INVESTMENTS AND FAIR VALUE ME_4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - AMORTIZED COST AND FAIR VALUE BY MATURITY (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized Cost | |
Less than 1 year | $ 44,691 |
1 to 5 years | 29,669 |
Total | 74,360 |
Fair Value | |
Less than 1 year | 45,466 |
1 to 5 years | 29,855 |
Debt securities, fair value | $ 75,321 |
INVESTMENTS AND FAIR VALUE ME_5
INVESTMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE INSTRUMENT (Details) - Call and put options - Other Current Liabilities - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | ||
Cost | $ 9,306 | $ 2,987 |
Unrealized Losses | 2,383 | 662 |
Derivative instruments | 11,689 | 3,649 |
Total financial liability, cost | 9,306 | 2,987 |
Unrealized Losses | 2,383 | 662 |
Total liabilities at fair value | $ 11,689 | $ 3,649 |
INVESTMENTS AND FAIR VALUE ME_6
INVESTMENTS AND FAIR VALUE MEASUREMENTS - REALIZED AND UNREALIZED GAINS AND LOSSES EQUITY AND DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | ||||
Net unrealized gains (losses) recognized on marketable equity securities | $ (287) | $ (9,278) | $ 472 | $ (14,062) |
Net realized gains (losses) recognized on marketable equity securities | (2,588) | (555) | 3,643 | 218 |
Net unrealized gains (losses) recognized on derivative instruments | (1,631) | 3,907 | (1,825) | (696) |
Net realized gains recognized on derivative instruments | (72) | 2,214 | 2,165 | 4,089 |
Net realized gains recognized on marketable debt securities | 0 | 188 | 217 | 556 |
Total net gains (losses) recognized in interest and other income (loss), net | $ (4,578) | $ (3,524) | $ 4,672 | $ (9,895) |
INVESTMENTS AND FAIR VALUE ME_7
INVESTMENTS AND FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Certificates of deposit | $ 5,300 | |
U.S. treasury securities | $ 58,958 | 25,798 |
Mutual funds | 11,628 | 23,209 |
Equity securities | 64,903 | 50,213 |
Corporate bonds | 16,363 | 13,438 |
Total assets at fair value | 151,852 | 117,958 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 11,689 | 3,649 |
Total liabilities at fair value | 11,689 | 3,649 |
Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Certificates of deposit | 0 | |
U.S. treasury securities | 58,958 | 25,798 |
Mutual funds | 11,628 | 23,209 |
Equity securities | 64,903 | 50,213 |
Corporate bonds | 0 | 0 |
Total assets at fair value | 135,489 | 99,220 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Certificates of deposit | 5,300 | |
U.S. treasury securities | 0 | 0 |
Mutual funds | 0 | 0 |
Equity securities | 0 | 0 |
Corporate bonds | 16,363 | 13,438 |
Total assets at fair value | 16,363 | 18,738 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 11,689 | 3,649 |
Total liabilities at fair value | 11,689 | 3,649 |
Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Certificates of deposit | 0 | |
U.S. treasury securities | 0 | 0 |
Mutual funds | 0 | 0 |
Equity securities | 0 | 0 |
Corporate bonds | 0 | 0 |
Total assets at fair value | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 0 | 0 |
Total liabilities at fair value | $ 0 | $ 0 |
BALANCE SHEET DETAILS - Cash an
BALANCE SHEET DETAILS - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Cash and Cash Equivalents, at Carrying Value [Abstract] | |||
Cash | $ 5,818 | $ 9,630 | |
Money market funds | 22,883 | 13,586 | |
Certificates of deposit | [1] | 0 | 25,604 |
Cash and cash equivalents | $ 28,701 | $ 48,820 | |
[1] Represents certificates of deposit with initial maturity days of 90 |
BALANCE SHEET DETAILS - Current
BALANCE SHEET DETAILS - Current Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Certificates of deposit | [1] | $ 0 | $ 5,300 |
Marketable securities | 76,531 | 73,422 | |
U.S. treasury securities | 45,466 | 22,196 | |
Short-term investments | $ 121,997 | $ 100,918 | |
[1]Represents investments with initial maturity days between 91 one |
BALANCE SHEET DETAILS - Account
BALANCE SHEET DETAILS - Accounts and Other Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Trade accounts receivables, net | $ 1,960 | $ 1,003 |
Other receivables | 598 | 232 |
Accounts and other receivables | $ 2,558 | $ 1,235 |
BALANCE SHEET DETAILS - Prepaid
BALANCE SHEET DETAILS - Prepaid Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 1,238 | $ 1,576 |
Contract assets - current | 6,303 | 7,671 |
Other current assets | 48 | 100 |
Prepaid expenses and other current assets | $ 7,589 | $ 9,347 |
BALANCE SHEET DETAILS - Noncurr
BALANCE SHEET DETAILS - Noncurrent Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
U.S. treasury securities | $ 13,492 | $ 3,602 |
Marketable debt securities | 16,363 | 13,438 |
Investments- noncurrent | $ 29,855 | $ 17,040 |
BALANCE SHEET DETAILS - Other A
BALANCE SHEET DETAILS - Other Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Assets, Net [Abstract] | ||
Contract assets - long-term | $ 220 | $ 545 |
Lease right-of-use assets | 83 | 360 |
Other assets | 0 | 11 |
Total other assets | $ 303 | $ 916 |
BALANCE SHEET DETAILS - Other C
BALANCE SHEET DETAILS - Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities, Current [Abstract] | ||
Derivative instruments | $ 11,689 | $ 3,649 |
Lease liabilities - current | 88 | 486 |
Income taxes payable | 6,963 | 2,700 |
Dividends payable | 991 | 4,212 |
Other current liabilities | 693 | 1,418 |
Total other current liabilities | $ 20,424 | $ 12,465 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - LGE $ in Millions | 3 Months Ended | |||||
Jun. 02, 2023 KRW (₩) | Jun. 02, 2023 USD ($) | Apr. 08, 2020 KRW (₩) | Apr. 08, 2020 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2023 USD ($) | |
Loss Contingencies [Line Items] | ||||||
Impairment of long-term deposits | $ 0.8 | |||||
Long-term deposits | ₩ 5,916,845,454 | $ 5 | ||||
Loss contingency, accrued withholding taxes, interest and penalties | $ 0.3 | |||||
Withholding taxes on royalty payments | Pending Litigation | ||||||
Loss Contingencies [Line Items] | ||||||
Long-term deposits | ₩ 3,024,877,044 | $ 2.3 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Thousands | 9 Months Ended | ||
Jan. 18, 2022 shares | Sep. 30, 2023 USD ($) shares | Mar. 30, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of available shares consumed for each restricted stock and restricted stock units issued | 1.75 | ||
Unrecognized compensation cost | $ | $ 3,300 | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period | 1 year 7 months 6 days | ||
2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 3,525,119 | ||
Increase in number of common shares reserved for issuance (in shares) | 855,351 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period | 4 years | ||
Stock options | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period | 7 years | ||
RSAs outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period | 1 year | ||
RSUs outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period | 3 years | ||
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 1,000,000 | ||
Stock-based payment award expiration period | 6 months | ||
Percentage of fair market value on the purchase date | 85% | ||
Maximum number of shares per employee (in shares) | 2,000 | ||
Maximum value of shares per employee | $ | $ 25,000 | ||
Shares available for purchase (in shares) | 193,134 | ||
Employee stock purchase plan | 2021 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 4,621,488 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Equity Incentive Program (Details)1 - shares shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for grant (in shares) | 5,028 | |
Time-based stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Standard and market condition-based stock options outstanding (in shares) | 102 | 140 |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 728 | 887 |
RSAs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 75 | 119 |
Market Performance Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 400 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Time-based Stock Options (Details) - Time-based stock options $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Shares Underlying Stock Options | ||
Beginning outstanding balance (in shares) | shares | 140 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (21) | |
Canceled or expired (in shares) | shares | (17) | |
Ending outstanding balance (in shares) | shares | 102 | 140 |
Number of shares underlying stock options, vested and expected to vest (in shares) | shares | 102 | |
Number of shares underlying stock options, exercisable (in shares) | shares | 102 | |
Weighted Average Exercise Price Per Share | ||
Beginning outstanding balance (in dollars per share) | $ / shares | $ 7.57 | |
Granted (in dollars per share) | $ / shares | 0 | |
Exercised (in dollars per share) | $ / shares | 7.57 | |
Canceled or expired (in dollars per share) | $ / shares | 7.57 | |
Ending outstanding balance (in dollars per share) | $ / shares | 7.57 | $ 7.57 |
Weighted average exercise price, vested and expected to vest (in dollars per share) | $ / shares | 7.57 | |
Weighted average exercise price, exercisable (in dollars per share) | $ / shares | $ 7.57 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual life, outstanding | 1 month 13 days | 4 years 10 days |
Weighted average remaining contractual life, vested and expected to vest | 1 month 13 days | |
Weighted average remaining contractual life, exercisable | 1 month 13 days | |
Aggregate intrinsic value, outstanding | $ | $ 0 | $ 0 |
Aggregate intrinsic value, vested and expected to vest | $ | 0 | |
Aggregate intrinsic value, exercisable | $ | $ 0 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Restricted Stock Units and Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
RSUs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 887 | |
Granted (in shares) | 77 | |
Released (in shares) | (184) | |
Forfeited (in shares) | (52) | |
Ending outstanding balance (in shares) | 728 | 887 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 5.85 | |
Granted (in dollars per share) | 7.6 | |
Released (in dollars per share) | 5.19 | |
Forfeited (in dollars per share) | 6.91 | |
Ending outstanding balance (in dollars per share) | $ 6.12 | $ 5.85 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual life / recognition period, outstanding | 11 months 23 days | 1 year 3 months 21 days |
Aggregate intrinsic value, outstanding | $ 4,812 | $ 6,226 |
RSAs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 119 | |
Granted (in shares) | 75 | |
Released (in shares) | (119) | |
Forfeited (in shares) | 0 | |
Ending outstanding balance (in shares) | 75 | 119 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 5.47 | |
Granted (in dollars per share) | 8.31 | |
Released (in dollars per share) | 5.47 | |
Forfeited (in dollars per share) | 0 | |
Ending outstanding balance (in dollars per share) | $ 8.31 | $ 5.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual life / recognition period, outstanding | 6 months | 4 months 20 days |
STOCK-BASED COMPENSATION - PSU
STOCK-BASED COMPENSATION - PSU Activity (Details) - Performance Shares - $ / shares shares in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Beginning outstanding balance (in shares) | 615 | |
Granted (in shares) | 0 | |
Released (in shares) | (206) | |
Forfeited (in shares) | (9) | |
Ending outstanding balance (in shares) | 400 | 615 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 3.69 | |
Granted (in dollars per share) | 0 | |
Released (in dollars per share) | 3.7 | |
Forfeited (in dollars per share) | 6.2 | |
Ending outstanding balance (in dollars per share) | $ 3.63 | $ 3.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | ||
Weighted average remaining contractual life / recognition period, outstanding | 9 months | 1 year 1 month 13 days |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 820 | $ 730 | $ 2,526 | $ 2,661 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 113 | 19 | 110 | 20 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 1 | 18 | (72) | 96 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 706 | 693 | 2,488 | 2,545 |
Stock options | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 10 | 53 | (31) | 67 |
RSUs, RSAs and PSUs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 810 | 678 | 2,557 | 2,593 |
Employee stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 0 | $ (1) | $ 0 | $ 1 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Detail) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Nov. 13, 2023 | Aug. 11, 2023 | Aug. 08, 2023 | May 10, 2023 | Feb. 21, 2023 | Dec. 29, 2022 | Nov. 14, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | Feb. 23, 2022 | |
Class of Stock [Line Items] | ||||||||||
Dividends paid (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.03 | ||||||
Special dividends paid (in dollards per share) | $ 0.1 | |||||||||
Dividends paid | $ 6.4 | |||||||||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends paid (in dollars per share) | $ 0.045 | |||||||||
Stock Repurchase Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program, authorized amount | $ 50 | $ 30 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 43.8 | |||||||||
Common Stock | December 2022 Stock Repurchase Program | ||||||||||
Class of Stock [Line Items] | ||||||||||
Repurchased shares, average purchase price (in dollars per share) | $ 6.8602 | $ 5.46 | ||||||||
Repurchase of stock (in shares) | 898,757 | 1,637,566 | ||||||||
Repurchased shares, value | $ 6.2 | $ 8.9 | ||||||||
Common Stock | December 2022 Stock Repurchase Program | Minimum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program expiration date | Dec. 29, 2023 | |||||||||
Common Stock | December 2022 Stock Repurchase Program | Maximum | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock repurchase program expiration date | Dec. 29, 2024 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Provisions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 3,965 | $ 8,582 | $ 23,622 | $ 12,226 |
Provision for income taxes | $ (1,285) | $ (877) | $ (5,636) | $ (1,264) |
Effective tax rate | 32.40% | 10.20% | 23.90% | 10.30% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) $ in Millions | Sep. 30, 2023 USD ($) |
Income Tax Contingency [Line Items] | |
Unrecognized tax benefits | $ 7.3 |
Unrecognized tax benefits, interest on income taxes accrued | 0.1 |
Total amount of unrecognized tax benefits | 3.5 |
Deferred Tax Assets, Net | 7 |
Deferred Tax Liabilities, Gross | $ 0.1 |
NET INCOME (LOSS) PER SHARE - R
NET INCOME (LOSS) PER SHARE - Reconciliation used in Computing Basic and Diluted Net Income (Loss) per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Weighted-average shares outstanding, basic | 32,523 | 33,201 | 32,254 | 33,601 |
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs | 227 | 481 | 332 | 434 |
Weighted average shares outstanding, diluted | 32,750 | 33,682 | 32,586 | 34,035 |
NET INCOME (LOSS) PER SHARE - O
NET INCOME (LOSS) PER SHARE - Outstanding Securities (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 174 | 160 | 148 | 224 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 110 | 145 | 128 | 197 |
RSUs, RSAs and PSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 64 | 15 | 20 | 27 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - ft² | Sep. 30, 2023 | Nov. 12, 2014 |
Lessee, Lease, Description [Line Items] | ||
Initial term of lease | 12 months | |
SJ Facility | ||
Lessee, Lease, Description [Line Items] | ||
Area (in square feet) | 42,000 |
LEASES - Summary of Right of Us
LEASES - Summary of Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Right-of-use assets | $ 83 | $ 360 |
Liabilities | ||
Operating lease liabilities - current | 88 | 486 |
Operating lease liabilities - long-term | 0 | 56 |
Total lease liabilities | $ 88 | $ 542 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Information Related To Operating Leases and Expenses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Cash paid within operating cash flow | $ 105 | $ 982 |
Weighted average lease terms (in years) | 5 months 12 days | 10 months 17 days |
Weighted average discount rates | 3.93% |
LEASES - Schedule of Net Operat
LEASES - Schedule of Net Operating Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 97 | $ 138 | $ 314 | $ 343 |
Variable lease payments | 1 | 98 | 170 | 329 |
Sublease income | (49) | (306) | (489) | (837) |
Total lease cost | $ 49 | $ (70) | $ (5) | $ (165) |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payment Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 50 | |
2024 | 39 | |
Total lease payments | 89 | |
Less: Interest | (1) | |
Total lease liability | $ 88 | $ 542 |
LEASES - Future Minimum Subleas
LEASES - Future Minimum Sublease Payments 840 (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 | $ 50 |
2024 | 33 |
Total | $ 83 |
SUBSEQUENT EVENT - Narrative (D
SUBSEQUENT EVENT - Narrative (Details) - Subsequent Event - Meta Platforms, Inc. (formerly known as Facebook, Inc.) (“Meta”) - Patent infringement - Pending Litigation | Nov. 11, 2023 Number |
Subsequent Event [Line Items] | |
Loss Contingency, Lawsuit filing date | November 10, 2023 |
Loss Contingency, Name of defendant | Meta |
Number of patents allegedly infringed | 5 |