Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | IMMERSION CORP | |
Entity Central Index Key | 0001058811 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 31,795,744 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 86,585 | $ 110,988 |
Short-term investments | 9,026 | 13,930 |
Accounts and other receivables | 1,865 | 1,051 |
Prepaid expenses and other current assets | 11,988 | 9,856 |
Total current assets | 109,464 | 135,825 |
Property and equipment, net | 1,768 | 2,343 |
Other assets, net | 16,510 | 7,827 |
Total assets | 127,742 | 145,995 |
Current liabilities: | ||
Accounts payable | 2,176 | 3,612 |
Accrued compensation | 2,381 | 3,948 |
Other current liabilities | 4,202 | 3,194 |
Deferred revenue | 4,666 | 4,591 |
Total current liabilities | 13,425 | 15,345 |
Long-term deferred revenue | 26,816 | 30,203 |
Other long-term liabilities | 3,072 | 787 |
Total liabilities | 43,313 | 46,335 |
Contingencies (Note 12) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital — $0.001 par value; 100,000,000 shares authorized; 38,618,922 and 37,652,498 shares issued, respectively; 31,795,775 and 30,829,351 shares outstanding, respectively | 252,191 | 246,415 |
Accumulated other comprehensive income | 132 | 116 |
Accumulated deficit | (119,544) | (98,521) |
Treasury stock at cost: 6,823,147 and 6,823,147 shares, respectively | (48,350) | (48,350) |
Total stockholders’ equity | 84,429 | 99,660 |
Total liabilities and stockholders’ equity | $ 127,742 | $ 145,995 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 38,618,922 | 37,652,498 |
Common stock, shares outstanding (in shares) | 31,795,775 | 30,829,351 |
Treasury stock, shares (in shares) | 6,823,147 | 6,823,147 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues: | ||||
Revenue | $ 10,624 | $ 8,552 | $ 24,489 | $ 100,112 |
Costs and expenses: | ||||
Cost of revenues | 62 | 61 | 117 | 190 |
Sales and marketing | 1,688 | 1,664 | 4,876 | 4,454 |
Research and development | 1,933 | 2,110 | 6,066 | 7,152 |
General and administrative | 8,216 | 9,880 | 35,359 | 31,669 |
Total costs and expenses | 11,899 | 13,715 | 46,418 | 43,465 |
Operating income (loss) | (1,275) | (5,163) | (21,929) | 56,647 |
Interest and other income (loss) | (24) | 545 | 1,106 | 1,151 |
Income (loss) before provision for income taxes | (1,299) | (4,618) | (20,823) | 57,798 |
Provision for income taxes | (88) | (22) | (200) | (313) |
Net income (loss) | $ (1,387) | $ (4,640) | $ (21,023) | $ 57,485 |
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ (0.15) | $ (0.67) | $ 1.89 |
Shares used in calculating basic net income (loss) per share (in shares) | 31,711 | 30,780 | 31,461 | 30,340 |
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ (0.15) | $ (0.67) | $ 1.83 |
Shares used in calculating diluted net income (loss) per share (in shares) | 31,711 | 30,780 | 31,461 | 31,334 |
Other comprehensive income | ||||
Change in unrealized gains (loss) on short-term investments | $ (6) | $ (2) | $ 16 | $ 8 |
Total other comprehensive income | (6) | (2) | 16 | 8 |
Total comprehensive income (loss) | (1,393) | (4,642) | (21,007) | 57,493 |
Royalty and license | ||||
Revenues: | ||||
Revenue | 10,549 | 8,462 | 24,264 | 99,789 |
Development, services, and other | ||||
Revenues: | ||||
Revenue | $ 75 | $ 90 | $ 225 | $ 323 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2017 | 35,950,518 | 6,686,690 | |||
Beginning balance at Dec. 31, 2017 | $ 9,657 | $ 228,046 | $ 99 | $ (171,616) | $ (46,872) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 57,485 | 57,485 | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 8 | 8 | |||
Issuance of common stock for employee stock purchase (in shares) | 26,689 | ||||
Issuance of common stock for employee stock purchase | 218 | $ 218 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 1,326,718 | 39,695 | |||
Exercise of stock options, net of shares withheld for employee taxes | 8,011 | $ 8,580 | $ (569) | ||
Release of restricted stock units and awards (in shares) | 222,985 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock based compensation | 6,266 | $ 6,266 | |||
Ending balance (in shares) at Sep. 30, 2018 | 37,526,910 | 6,726,385 | |||
Ending balance at Sep. 30, 2018 | 100,397 | $ 243,110 | 107 | (95,379) | $ (47,441) |
Beginning balance (in shares) at Jun. 30, 2018 | 37,488,535 | 6,726,385 | |||
Beginning balance at Jun. 30, 2018 | 101,957 | $ 240,445 | 109 | (91,156) | $ (47,441) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (4,640) | (4,640) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (2) | (2) | |||
Issuance of common stock for employee stock purchase (in shares) | 12,855 | ||||
Issuance of common stock for employee stock purchase | 120 | $ 120 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 4,687 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 31 | $ 31 | |||
Release of restricted stock units and awards (in shares) | 20,833 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock based compensation | 2,514 | $ 2,514 | |||
Ending balance (in shares) at Sep. 30, 2018 | 37,526,910 | 6,726,385 | |||
Ending balance at Sep. 30, 2018 | 100,397 | $ 243,110 | 107 | (95,379) | $ (47,441) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Effect of change in accounting policy | 417 | ||||
Beginning balance (in shares) at Dec. 31, 2018 | 37,652,498 | 6,823,147 | |||
Beginning balance at Dec. 31, 2018 | 99,660 | $ 246,415 | 116 | (98,521) | $ (48,350) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (21,023) | (21,023) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 16 | 16 | |||
Issuance of common stock for employee stock purchase (in shares) | 21,741 | ||||
Issuance of common stock for employee stock purchase | 165 | $ 165 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 173,131 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 1,240 | $ 1,240 | |||
Release of restricted stock units and awards (in shares) | 771,552 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock based compensation | 4,371 | $ 4,371 | |||
Ending balance (in shares) at Sep. 30, 2019 | 38,618,922 | 6,823,147 | |||
Ending balance at Sep. 30, 2019 | 84,429 | $ 252,191 | 132 | (119,544) | $ (48,350) |
Beginning balance (in shares) at Jun. 30, 2019 | 38,488,327 | 6,823,147 | |||
Beginning balance at Jun. 30, 2019 | 83,710 | $ 250,079 | 138 | (118,157) | $ (48,350) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (1,387) | ||||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (6) | (6) | |||
Issuance of common stock for employee stock purchase (in shares) | 8,262 | ||||
Issuance of common stock for employee stock purchase | 56 | $ 56 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 111,333 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 869 | $ 869 | |||
Release of restricted stock units and awards (in shares) | 11,000 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock based compensation | 1,187 | $ 1,187 | |||
Ending balance (in shares) at Sep. 30, 2019 | 38,618,922 | 6,823,147 | |||
Ending balance at Sep. 30, 2019 | $ 84,429 | $ 252,191 | $ 132 | $ (119,544) | $ (48,350) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows provided by (used in) operating activities: | ||
Net income (loss) | $ (21,023) | $ 57,485 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 588 | 647 |
Stock-based compensation | 4,371 | 6,266 |
Foreign currency translation loss | 361 | 0 |
Deferred income taxes | 105 | 67 |
Other | 1 | 26 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (814) | (454) |
Prepaid expenses and other current assets | (2,239) | (1,870) |
Other assets | (9,849) | (3,910) |
Accounts payable | (1,440) | (5,889) |
Accrued compensation | (1,567) | (1,560) |
Other current liabilities | (15) | 1,807 |
Deferred revenue | (3,312) | 22,713 |
Other long-term liabilities | 3,967 | 211 |
Net cash provided by (used in) operating activities | (30,866) | 75,539 |
Cash flows provided by investing activities: | ||
Purchases of short-term investments | (8,930) | (17,693) |
Proceeds from maturities of short-term investments | 14,000 | 22,000 |
Purchases of property and equipment | (12) | (63) |
Net cash provided by investing activities | 5,058 | 4,244 |
Cash flows provided by financing activities: | ||
Proceeds from issuance of common stock under employee stock purchase plan | 165 | 218 |
Proceeds from stock options exercises | 1,240 | 8,010 |
Net cash provided by financing activities | 1,405 | 8,228 |
Net increase (decrease) in cash and cash equivalents | (24,403) | 88,011 |
Cash and cash equivalents: | ||
Beginning of period | 110,988 | 24,622 |
End of period | 86,585 | 112,633 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 104 | 139 |
Supplemental disclosure of non-cash operating, investing, and financing activities: | ||
Release of restricted stock units and awards under company stock plan | $ 7,148 | $ 2,806 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Description of Business Immersion Corporation (the "Company") was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. The Company has adopted a business model under which it provides advanced tactile software, related tools, technical assistance designed to help integrate its patented technology into its customers’ products or enhance the functionality of its patented technology to certain customers, and offers licenses to the Company's patented technology to other customers. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. 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 ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with U.S. GAAP and should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. Segment Information The Company develops, licenses, and supports software and a wide-range of IP that more fully engage users’ sense of touch as they engage with products and experience the digital world around them. The Company currently focuses on the following target application areas: mobility, automotive, gaming, medical and wearables. The Company’s chief operating decision maker ("CODM") is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of the Company using information about its financial results as one operating and reporting segment. Revenue Recognition The Company adopted the Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)" ("ASC 606"), effective January 1, 2018 using the modified retrospective transition method where the cumulative effect of the initial application is recognized as an adjustment to the opening balance of the accumulated deficit at January 1, 2018, the date of adoption. Refer to Note 2 Revenue Recognition of the Notes to Condensed Consolidated Financial Statements for the Company's revenue recognition accounting policy. Leases The Company leases all of its office space pursuant to lease arrangements, each of which have expiration dates on or before February 29, 2024. On January 1, 2019 (the "Adoption Date"), the Company adopted the Accounting Standards Codification Section ASC 842 Leases ("ASC 842"), using the alternative modified transition method to apply the standard and measure leases existed at, or entered into, after the Adoption Date. The Company's operating leases accounted for as right-of-use ("ROU") assets and lease liability obligations in the Company's Condensed Consolidated Balance Sheets under Other assets, Other current liabilities and Other long-term liabilities, respectively. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liability obligations represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The Company has lease agreements that combine lease and non-lease components, and the Company elects to account for such components as a single lease component. As the Company's leases typically do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease payments made and exclude lease incentives and direct costs. Lease expense is recognized on a straight-line basis over the lease term. The Company elects to not present leases with an initial term of 12 months or less on its Condensed Consolidated Balance Sheet. See Note 11 Leases of the Notes to Condensed Consolidated Financial Statements for further information on ASC 842 adoption. Recently Adopted Accounting Pronouncements In July 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-09 "Codification Improvement" ("ASU 2018-09"). This ASU amends a wide variety of Topics in the Codification issued by FASB with technical corrections, clarifications, and other minor improvements, and should eliminate the need for periodic agenda requests for narrow and incremental items. Many of the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 for public entities. The Company adopted this ASU as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting" ("ASU 2018-07"). This ASU expands the scope of Topic 718 to include share-based payment transaction for acquiring goods and services from nonemployees and supersedes subtopic 505-50. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted but no earlier than adoption of Topic 606. The Company adopted this ASU as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company adopted this ASU as of January 1, 2019. The amount of stranded tax effects that was reclassified from accumulated other comprehensive loss was not material to the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases: Topic 842 ("ASU 2016-02") in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior U.S. GAAP. Subsequently, the FASB issued numerous amendments to the initial guidance including ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, "ASC 842"). ASC 842 requires that a lessee should recognize a liability to make lease payments ("lease liabilities") and a right-to-use ("ROU") asset representing its right-to-use the underlying asset for the lease term on the balance sheet. ASC 842 also requires additional disclosures related to key information about leasing arrangements, including, but not limited to, amounts, timing, and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2019 (the "Adoption Date"), using the alternative modified transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of accumulated deficit to be recognized on the Adoption Date, with prior periods not restated. The Company elected certain practical expedients, including 1) not to reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases, 2) not to use hindsight to determine lease terms, 3) to not separate non-lease components within our lease portfolio, and 4) not to present leases with an initial term of 12 months or less on its Condensed Consolidated Balance Sheets. The adoption of ASC 842 resulted in the recognition of ROU assets of $4.0 million and lease liabilities for operating leases of $4.9 million . There was no cumulative effect adjustment recognized on the beginning accumulated deficits as a result of the adoption. The comparative period presented in this Form 10-Q reflects the former lease U.S. GAAP accounting guidance. See Note 11 Leases of Notes to Condensed Consolidated Financial Statements for further information. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected based on historical events, current conditions and forecast information. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on its Condensed Consolidated Financial Statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue Recognition Accounting Policy The Company's revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue. Fixed fee license revenue The Company is required to recognize revenue from a fixed fee license agreement when it has satisfied its performance obligations, which typically occurs upon the transfer of rights to the Company's technology upon the execution of the license agreement. However, in certain contracts, the Company grants a license to its 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, the Company has concluded that it has two separate performance obligations: • Performance Obligation A: to transfer rights to the Company's patent portfolio as it exists when the contract is executed; • Performance Obligation B: to transfer rights to the Company's patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. If a fixed fee license agreement contains only Performance Obligation A, the Company will recognize most or all of the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, the Company will allocate the transaction price based on the standalone price for each of the two performance obligations. The Company uses a number of factors primarily related to the attributes of its patent portfolio to estimate standalone prices related to Performance Obligation A and B. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A will be recognized in the quarter the license agreement is signed and the customer can benefit from rights provided in the contract, and the portion allocable to Performance Obligation B will be recognized on a straight-line basis over the contract term. For such contracts, a contract liability account will be established and included within deferred revenue on the Condensed Consolidated Balance Sheets. 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. Some of the Company's license agreements contain fixed fees related to past infringements. Such fixed fees are recognized as revenue or recorded as a deduction to the Company's operating expense in the quarter the license agreement is signed. Payments for fixed fee license contracts typically are due in full within 30 - 45 days from execution of the contract. From time to time, the Company enters into a fixed fee license contract with payments due in a number of installments payable throughout the contract term. In such cases, the Company will determine if a significant financing component exists and if it does, the Company will recognize more or less revenue and corresponding interest expense or income, as appropriate. Per-unit Royalty revenue ASC 606 requires an entity to record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As the Company generally does not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows the Company to adequately review the reports and include the actual amounts in its quarterly results for such quarter, the Company accrues the related revenue based on estimates of its licensees’ underlying sales, subject to certain constraints on its ability to estimate such amounts. The Company develops such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a lookback at historical royalty reporting for each of its 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 its licensees. The Company recorded adjustments to decrease royalty revenue by $143,000 during the three months ended September 30, 2019 . This adjustment represents the difference between the actual per-unit royalty revenue for the three months ended June 30, 2019 as reported by the Company's licensees during the three months ended September 30, 2019 and the estimated per-unit royalty revenue for the three months ended June 30, 2019 that the Company reported during the three months ended June 30, 2019. During the three months ended June 30 and March 31, 2019, the Company recorded adjustments to increase royalty revenue by $234,000 and $149,000 , respectively, based on actual sales that occurred in the previous quarters. During the three months ended September 30 and June 30, 2018, the Company recorded adjustments to decrease royalty revenue by $333,000 and $326,000 , respectively, based on actual sales that occurred in the previous quarters. The Company had no true-ups for the three months ended March 31, 2018. Certain of the Company's per-unit royalty agreements contains minimum royalty provision which sets forth minimum amounts to be received by the Company during the contract term. Under ASC 606, minimum royalties are considered a fixed transaction price to which the Company will have an unconditional right once all other performance obligations, if any, are satisfied. The Company recognizes all minimum royalties as revenue at the inception of the license agreement or in the period in which all remaining revenue recognition criteria have been met. The Company accounts for the unbilled minimum royalties as contract assets on a contract basis on its Condensed Consolidated Balance Sheets, and the balance of such contract assets will be reduced by the actual royalties to be reported by the licensee during the contract term until fully utilized, after which point any excess per-unit royalties reported will be recognized as revenue. 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. Payments of per-unit royalties typically are due within 30 to 60 days from the end of the calendar quarter in which the underlying sales took place. Development, services, and other revenue As the performance obligation related to the Company's development, service and other revenue is satisfied over a period of time, the Company recognizes such revenue evenly over the period of performance obligation, which is generally consistent with the contractual term. Disaggregated Revenue The following table presents the disaggregation of the Company's revenue for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Fixed fee license revenue $ 4,115 $ 4,317 $ 10,109 $ 81,955 Per-Unit royalty revenue 6,434 4,145 14,155 17,834 Total royalty and license revenue 10,549 8,462 24,264 99,789 Development, services, and other revenue 75 90 225 323 Total revenues $ 10,624 $ 8,552 $ 24,489 $ 100,112 The Company had contract assets of $11.2 million and $9.0 million included within prepaid expenses and other current assets as of September 30, 2019 and December 31, 2018, respectively. The Company had contract assets of $6.0 million and $7.2 million included within other non-current assets of the Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018, respectively. During the nine months ended September 30, 2019, contract assets decreased by $1.1 million primarily due to actual royalties billed during the nine months ended September 30, 2019 , that reduced the minimum royalties recognized in contract assets. The contract assets as of September 30, 2019 also included the Company's estimate of per-unit royalty related to the underlying sales that occurred in the three months ended September 30, 2019 . Contracted Revenue Based on contracts signed and payments received as of September 30, 2019 , the Company expects to recognize $31.1 million in revenue related to Performance Obligation B under the Company's fixed fee license agreements, which is satisfied over time, including $12.4 million over one to three years and $18.7 million over more than three years. Revenue related to Performance Obligation B was $34.5 million as of December 31, 2018 . During the nine months ended September 30, 2019 and 2018, the Company recognized $3.4 million and $5.7 million in fixed fee license revenue related to Performance Obligation B under the Company's fixed fee license agreements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, Cash Equivalents and Short-term Investments The Company's financial instruments measured at fair value on a recurring basis are cash equivalents and short-term investments. The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value. Financial instruments are valued based on quoted market prices in active markets include mostly money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. Instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include U.S. treasury securities. 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 of the fair value hierarchy. As of September 30, 2019 and December 31, 2018 , the Company did not hold any Level 3 instruments. Financial instruments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are classified based on the valuation technique in the table below (in thousands): September 30, 2019 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Money market accounts $ 63,226 $ — $ — $ 63,226 U.S. Treasury securities — 9,026 — 9,026 Total assets at fair value (1) $ 63,226 $ 9,026 $ — $ 72,252 (1) The above table excludes $23.4 million of cash held in banks. December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Significant Total Assets: Money market accounts $ 81,425 $ — $ — $ 81,425 U.S. Treasury securities — 13,930 — 13,930 Total assets at fair value (2) $ 81,425 $ 13,930 $ — $ 95,355 (2) The above table excludes $29.6 million of cash held in banks. The contractual maturities of the Company’s available-for-sale securities on September 30, 2019 and December 31, 2018 were all due within one year. There were no transfers of instruments between Level 1 and 2 during the three and nine months ended September 30, 2019 and the year ended December 31, 2018 . Money market accounts are classified as cash equivalents and U.S. Treasury securities (classified as available-for-sale securities), with maturity dates less than one year, are within short-term investments on the Company’s Condensed Consolidated Balance Sheets. Short-term Investments Short-term investments as of September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 Amortized Gross Gross Fair U.S. Treasury securities $ 9,016 $ 10 $ — $ 9,026 Total $ 9,016 $ 10 $ — $ 9,026 December 31, 2018 Amortized Gross Gross Fair U.S. Treasury securities $ 13,936 $ — $ (6 ) $ 13,930 Total $ 13,936 $ — $ (6 ) $ 13,930 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
ACCOUNTS AND OTHER RECEIVABLES | ACCOUNTS AND OTHER RECEIVABLES Accounts and other receivables consisted of the following (in thousands): September 30, December 31, Trade accounts receivable $ 1,485 $ 645 Other receivables 380 406 Accounts and other receivables $ 1,865 $ 1,051 There was no estimated allowance for doubtful accounts as of September 30, 2019 and December 31, 2018 . |
OTHER ASSETS, NET
OTHER ASSETS, NET | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS, NET | OTHER ASSETS, NET Other assets consisted of the following (in thousands): September 30, December 31, Contract assets - long-term $ 6,033 $ 7,231 Lease assets 3,371 — Deferred tax assets 295 295 Other assets 6,811 301 Total other assets, net $ 16,510 $ 7,827 The Company adopted ASC 842 on January 1, 2019 and recognized $4.0 million ROU assets on its Condensed Consolidated Balance Sheets. See Note 1 Significant Accounting Policies and Note 11 Leases of the Notes to the Condensed Consolidated Financial Statements for more detail on ASC 842 adoption. In March 2019, as part of a then-pending litigation matter with Samsung Electronics Co, the Company recorded a $6.9 million deposit included in Other assets, net along with related accounts payable which was paid in April 2019. See Note 12 Contingencies of Notes to Condensed Consolidated Financial Statements for further disclosure. |
OTHER CURRENT LIABILITIES
OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
OTHER CURRENT LIABILITIES | OTHER CURRENT LIABILITIES Other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued legal $ 1,453 $ 1,827 Lease liabilities - current 1,161 — Income taxes payable 228 204 Other current liabilities 1,360 1,163 Total other current liabilities $ 4,202 $ 3,194 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options and Awards The Company’s 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. The Company may grant time-based options, market condition-based options, stock appreciation rights, restricted stock ("RSA"), restricted stock units (“RSUs”), performance shares, performance units, and other stock-based to employees, officers, directors, and consultants. Under this program, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. These stock options generally vest over four years and expire from seven to ten years from the grant date. In addition to time-based vesting, market condition-based options are subject to a market condition whereby the closing price of the Company common stock must exceed a certain level for a number of trading days within a specified time frame or the options will be canceled before the expiration of the options. RSAs generally vest over one year . RSUs generally vest over three years . Awards granted other than a stock option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued. On June 14, 2019, the Company's stockholders approved an increase to the number of common stock shares reserved for issuance by 2,595,751 shares. A summary of the Company's equity incentive program is as follows (in thousands): September 30, Common stock shares available for grant 3,172 Standard and market condition-based stock options outstanding 2,011 RSAs outstanding 91 RSUs outstanding 949 Time-Based Stock Options The following summarizes activities for the time-based stock options for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2018 1,862 $ 9.44 2.85 $ 751 Granted 783 $ 8.25 Exercised (173 ) $ 7.16 Canceled or expired (733 ) $ 9.78 Outstanding as of September 30, 2019 1,739 $ 8.98 3.35 $ 128 Vested and expected to vest at September, 2019 1,739 $ 8.98 3.35 $ 128 Exercisable at September 30, 2019 927 $ 9.57 0.52 $ 10 Aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the exercise price of the Company’s common stock for the options that were in-the-money. Market Condition-Based Stock Options In 2014, the Company began to grant market condition-based stock options. These stock options will vest if the closing price of the Company stock exceeds a certain level for a number of trading days within a specified time frame or the stock options will be canceled before the expiration of the stock options. As of September 30, 2019 and December 31, 2018 , the Company had 272,081 market condition-based stock options outstanding. There were no market condition-based stock options granted, exercised or canceled during the nine months ended September 30, 2019 . Restricted Stock Units The following summarizes RSU activities for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Aggregate Outstanding at December 31, 2018 1,091 $ 10.97 0.67 $ 9,773 Granted 864 $ 8.57 Released (709 ) $ 11.32 Forfeited (297 ) $ 9.84 Outstanding at September 30, 2019 949 $ 8.88 1.47 $ 7,259 Restricted Stock Awards The following summarizes RSA activities for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period Outstanding at December 31, 2018 55 $ 13.02 0.46 Granted 114 $ 7.06 Released (62 ) $ 12.63 Forfeited (16 ) $ 7.27 Outstanding at September 30, 2019 91 $ 7.45 0.70 Employee Stock Purchase Plan Under the Company's 1999 Employee Stock Purchase Plan ("ESPP"), eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of the Company’s common stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six months offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1.0 million shares of common stock has been reserved for issuance under the ESPP. During the nine months ended September 30, 2019 , 21,741 shares were purchased under the ESPP. As of September 30, 2019 , 253,437 shares were available for future purchase under the ESPP. Stock-based Compensation Expense The following table summarizes stock-based compensation expenses recognized for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Stock options $ 200 $ 286 $ 516 $ 960 RSUs and RSAs 971 2,206 3,798 5,234 Employee stock purchase plan 16 22 57 72 Total $ 1,187 $ 2,514 $ 4,371 $ 6,266 Sales and marketing $ 207 $ 377 $ 700 $ 675 Research and development 234 561 1,054 1,382 General and administrative 746 1,576 2,617 4,209 Total $ 1,187 $ 2,514 $ 4,371 $ 6,266 As of September 30, 2019 , there was $9.3 million of unrecognized compensation cost, adjusted for estimated forfeitures, related to non-vested stock options, RSAs and RSUs. This unrecognized compensation cost will be recognized over an estimated weighted-average period of approximately 2.78 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Accumulated Other Comprehensive Income Changes in accumulated other comprehensive income for the three and nine months ended September 30, 2019 are as follows (in thousands): Unrealized Gains & Losses on Available for Sale Securities Foreign Currency Items Total Balance as of June 30, 2019 $ 16 $ 122 $ 138 Amounts reclassified from accumulated other comprehensive income (6 ) — (6 ) Net current period other comprehensive income (6 ) — (6 ) Balance as of September 30, 2019 $ 10 $ 122 $ 132 Unrealized Gains & Losses on Available for Sale Securities Foreign Currency Items Total Balance as of December 31, 2018 $ (6 ) $ 122 $ 116 Amounts reclassified from accumulated other comprehensive income 16 — 16 Net current period other comprehensive income 16 — 16 Balance as of September 30, 2019 $ 10 $ 122 $ 132 Stock Repurchase Program On November 1, 2007, the Company announced its Board of Directors (the "Board") authorized the repurchase of up to $50.0 million of the Company’s common stock (the “Stock Repurchase Program”). In addition, on October 22, 2014, the Board authorized another $30.0 million under the Stock Repurchase Program. The Company may repurchase its common stock for cash in the open market in accordance with applicable securities laws. The timing and amount of any stock repurchase will depend on share price, corporate and regulatory requirements, economic and market conditions, and other factors. The stock repurchase authorization has no expiration date, does not require the Company to repurchase a specific number of shares, and may be modified, suspended, or discontinued at any time. There were no stock repurchases during the three and nine months ended September 30, 2019 and 2018 . As of September 30, 2019 , the Stock Repurchase Program remains available with approximately $33.4 million of the Company's common stock that may yet be purchased under this program. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions consisted of the following (in thousands, except for effective tax rate percentage): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Income (loss) before provision for income taxes $ (1,299 ) $ (4,618 ) $ (20,823 ) $ 57,798 Provision for income taxes $ (88 ) $ (22 ) $ (200 ) $ (313 ) Effective tax rate (6.8 )% (0.5 )% (1.0 )% 0.5 % The provision for income tax for the three and nine months ended September 30, 2019 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. For the three and nine months ended September 30, 2019, the Company used a year-to-date approach to calculate the effective tax rate. The Company continues to carry a full valuation allowance on its federal and state deferred tax assets. As a result, no benefit for losses generated from the Company's U.S. territory was included in the calculation of the year-to-date effective tax rate, which was the main reason for the difference between the statutory tax rate and actual effective tax rate. The provision for income tax for the three and nine months ended September 30, 2018 resulted primarily from estimated foreign taxes included in the calculation of the annual effective tax rate. On July 27, 2015, a U.S. Tax Court opinion (Altera Corporation et. al v. Commissioner) concerning the treatment of stock-based compensation expense in an intercompany cost sharing arrangement was issued. In its opinion, the U.S. Tax Court accepted Altera's position of excluding stock-based compensation from its intercompany cost sharing arrangement. On February 19, 2016, the IRS appealed the ruling to the U.S. Court of Appeals for the Ninth Circuit (the "Ninth Circuit"). On July 24, 2018, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court that had found certain Treasury regulations related to stock-based compensation to be invalid. On August 7, 2018, the Ninth Circuit withdrew its July 24, 2018 opinion to allow a reconstituted panel to confer on the decision. This reconstituted panel reconsidered the validity of the cost sharing regulations at issue. The regulations at issue require related entities to share the cost of employee stock compensation in order for their cost-sharing arrangements to be classified as “qualified cost-sharing arrangements” and to avoid potential IRS adjustment. On June 7, 2019, the reconstituted panel of the Ninth Circuit upheld the 2018 decision of the Ninth Circuit, concluding stock-based compensation must be included in intercompany cost sharing agreements for the agreements to be classified as “qualified cost-sharing arrangements”. On July 22, 2019, Altera filed a petition for an en banc rehearing with the Ninth Circuit. In the case of a denial of a Ninth Circuit en banc rehearing or a decision against Altera following an en banc rehearing, Altera can appeal to the United States Supreme Court for review. Although the Company believes stock-based compensation is not required to be included in its pool of shared costs under its intercompany cost sharing arrangement, the Company has concluded that it is not more likely than not that Altera will prevail with their appeal of the Ninth Court’s ruling. As such, the Company has made corresponding provisions. The Company will continue to monitor ongoing developments and potential impacts to its consolidated financial statements. The Company concluded that it is has not met the threshold requirements of the Base Erosion and Anti-Abuse Tax (the “BEAT”). Although the measurement period has closed, further technical guidance related to the Tax Act, including final regulations on a broad range of topics, is expected to be issued. In accordance with ASC 740, Income Taxes ("ASC 740"), the Company will recognize any effects of the guidance in the period that such guidance is issued. As of September 30, 2019 , the Company had unrecognized tax benefits under ASC 740 Income Taxes of approximately $5.1 million and applicable interest of $23,000 . The total amount of unrecognized tax benefits that would affect the Company’s effective tax rate, if recognized, is $97,000 . The Company’s policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect to have any significant changes to unrecognized tax benefits during the next twelve months. As of September 30, 2019 , the Company had net deferred income tax assets of $295,000 consisting primarily of foreign net operating loss carryforwards, and deferred income tax liabilities of $30,000 . Because the Company had net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state, and foreign taxing authorities may examine the Company’s tax returns for all years from 2000 through the current period. The Company maintains a valuation allowance of $24.5 million against certain of its deferred tax assets, including all federal, state, and certain foreign deferred tax assets as a result 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. In the event that the Company determines the deferred tax assets are realizable based on its assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made. The valuation allowance does not impact the Company’s ability to utilize the underlying net operating loss carryforwards. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | 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, RSUs, RSAs and ESPP. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator: Net income (loss) $ (1,387 ) $ (4,640 ) $ (21,023 ) $ 57,485 Denominator: Weighted-average common stock outstanding, basic 31,711 30,780 31,461 30,340 Dilutive effect of potential common shares: Stock options, RSUs, RSA and ESPP — — — 994 Total shares, diluted 31,711 30,780 31,461 31,334 Basic net income (loss) per share $ (0.04 ) $ (0.15 ) $ (0.67 ) $ 1.89 Diluted net income (loss) per share $ (0.04 ) $ (0.15 ) $ (0.67 ) $ 1.83 The Company includes the underlying market condition-based stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met. For the nine months ended September 30, 2018 , standard stock options to purchase approximately 262,000 shares of common stock, with exercise prices greater than the average fair market value of the Company’s stock of $12.04 per share, were not included in the calculation because the effect would have been anti-dilutive. As of September 30, 2019 and 2018 , the Company had stock options, RSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the three and nine months ended September 30, 2019 and the three months ended September 30, 2018 , since their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands): September 30 2019 2018 Standard and market condition-based stock options outstanding 2,011 2,323 RSUs outstanding 949 1,091 RSAs outstanding 91 63 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases all of its office space pursuant to lease arrangements, each of which have expiration dates on or before February 29, 2024. On January 1, 2019 (the "Adoption Date"), the Company adopted ASC 842 Leases, using the alternative modified transition method to apply the standard and measure leases existed at, or entered into after the Adoption Date. Upon adoption of ASC 842, the Company recognized operating lease liabilities of $4.9 million , which represents the present value of the remaining lease payments of existing leases as of the Adoption Date using an estimated incremental borrowing rate of 3.25% . The Company did not enter into any new leases in the nine months ended September 30, 2019 . The Company also recognized ROU assets of $4.0 million which represent the Company's right-to-use an underlying asset for the lease term. In conjunction with the adoption of ASC 842, the Company elected the following practical expedients: (i) combining lease and non-lease components, (ii) leases with an initial term of 12 months or less are not recorded in the Condensed Consolidated Balance Sheets, and the associated lease payments are recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) on a straight-line basis over the lease term, and (iii) applying discount rates to operating leases using a portfolio approach. There was no cumulative-effect adjustment recognized on the beginning accumulated deficit as a result of the adoption. The comparative periods presented in this Form 10-Q reflect the former lease accounting guidance. Below is a summary of our ROU assets and lease liabilities as of the Adoption Date and September 30, 2019 , respectively (in thousands): Balance Sheets Classification September 30, 2019 January 1, 2019 Assets Operating lease assets Other assets $ 3,371 $ 4,048 Liabilities Operating lease liabilities - current Other current liabilities 1,161 1,157 Operating lease liabilities - long-term Other long-term liabilities 2,921 3,693 Total lease liabilities $ 4,082 $ 4,850 The table below provides supplemental information related to operating leases during the nine months ended as of September 30, 2019 (in thousands except for lease term): Cash paid within operating cash flow $ 878 Weighted average lease terms (in years) 3.60 Operating lease ROU assets and liabilities commencing after the Adoption Date are recognized at commencement date based on the present value of lease payments over the lease term. Under ASC 842, all operating lease expenses are recognized on a straight-line basis over the lease term. During the three and nine months ended September 30, 2019 , and 2018, the Company's operating lease expenses are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Operating lease costs $ 301 $ 285 $ 855 $ 891 As of December 31, 2018, the Company had $764,000 in deferred rent which represented unamortized lease incentives on its outstanding leases and was recorded as a reduction to the ROU assets recognized at the Adoption Date. Minimum future lease payment obligations as of September 30, 2019 are as follows (in thousands): For the Years Ending December 31, 2019 Remaining $ 304 2020 1,211 2021 1,195 2022 1,170 2023 454 Thereafter 24 Total $ 4,358 |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES From time to time, the Company receives claims from third parties asserting that the Company’s technologies, or those of its licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, the Company is involved in routine legal matters and contractual disputes incidental to its normal operations. In management’s opinion, the resolution of such matters will not have a material adverse effect on the Company’s consolidated financial condition, results of operations, or liquidity. In the normal course of business, the Company provides 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 the Company is unable to estimate the maximum potential impact of these guarantees on its future results of operations. As discussed in Part II, Item 1 (Legal Proceedings), on April 28, 2017, the Company and Immersion Software Ireland Limited (collectively, “Immersion”) received a letter from Samsung Electronics Co. (“Samsung”) requesting that the Company reimburse Samsung with respect to withholding tax and penalties imposed on Samsung by the Korean tax authorities following an investigation where the tax authority determined that Samsung failed to withhold taxes on Samsung’s royalty payments to Immersion Software Ireland from 2012 to 2016. On July 12, 2017, on behalf of Samsung, Immersion filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes and penalties. On October 18, 2018, the Korea Tax Tribunal held a hearing and on November 19, 2018, the Korea Tax Tribunal issued its ruling in which it decided not to accept the Company's arguments with respect to the Korean tax authorities’ assessment of withholding tax and penalties imposed on Samsung. On behalf of Samsung, we filed an appeal with the Korea Administrative Court on February 15, 2019. The first hearing occurred on June 27, 2019. A second hearing occurred on August 29, 2019. A third hearing occurred on October 31, 2019. A fourth hearing is scheduled for December 19, 2019. On September 29, 2017, Samsung filed an arbitration demand with the International Chamber of Commerce against Immersion demanding that the Company reimburse Samsung for the imposed tax and penalties that Samsung paid to the Korean tax authorities. On March 27, 2019, the Company received the final award. The award ordered Immersion to pay Samsung KRW 7,841,324,165 which Immersion paid on April 22, 2019, denied Samsung’s claim for interest from and after May 2, 2017, and ordered Immersion to pay Samsung’s cost of the arbitration in the amount of approximately $871,454 . The Company believes that there are valid defenses to all of the claims from the Korean tax authorities. The Company intends to vigorously defend against the claims from the Korean tax authorities. The Company expects to be reimbursed by Samsung to the extent the Company ultimately prevails in the appeal in the Korea courts. At March 31, 2019, $6.9 million was recorded as a deposit included in Other assets on the Company's Condensed Consolidated Balance Sheets. In the event that the Company does not ultimately prevail in its appeal in the Korean courts, the deposit included in Other assets would be recorded as additional income tax expense on the Company's Condensed Consolidated Statement of Operations and Comprehensive Income (Loss), in the period in which the Company does not ultimately prevail. On October 16, 2017, the Company received a letter from LG Electronics Inc. (“LGE”) requesting that the Company 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 from 2012 to 2014. On November 3, 2017, on behalf of LGE, the Company filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes. The Korea Tax Tribunal hearing took place on March 5, 2019. On March 19, 2019, the Korea Tax Tribunal issued its ruling in which it decided not to accept Immersion’s arguments with respect to the Korean tax authorities’ assessment of withholding tax and penalties imposed on LGE. On behalf of LGE, we filed an appeal with the Korea Administrative Court on June 10, 2019. The first hearing occurred on October 15, 2019. The Company believes that there are valid defenses to the claims raised by the Korean tax authorities and that LGE’s claims are without merit. The Company intends to vigorously defend itself against these claims. In the event that the Company does not ultimately prevail in its appeal in the Korean courts, any payments to LGE with respect to withholding tax imposed on LGE by the Korean tax authorities as described in the previous paragraph would be recorded as additional income tax expense on the Company's Condensed Consolidated Statement of Operations and Comprehensive Income (Loss), in the period in which the Company does not ultimately prevail. On July 31, 2019, the Company entered into a settlement and license agreement with Motorola Mobility LLC and Motorola Mobility Holdings LLC (collectively, “Motorola”). Pursuant to that agreement, on August 12, 2019, the parties filed a joint motion to dismiss the case with prejudice. On August 13, 2019, the Court granted the motion and ordered that all claims and counterclaims in Civil Action No. 1:17-cv-01081-RGA be dismissed with prejudice, and that each party shall bear its own costs, expenses, and attorneys’ fees. The parties also terminated the related IPR proceedings. See Legal Proceedings in Part II, Item 1 of this Quarterly Report for more information related to this settlement and license agreement and the related IPR proceedings. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 23, 2019, the Board authorized the abandonment of the leased facility at 50 Rio Robles in San Jose California. The Company has begun offering the facility along with all in place leasehold improvements and furniture and fixtures for sublease and intends to relocate as soon as is practicable. At September 30, 2019, the Company has $2.4 million recorded as a right-of-use asset for this lease and net book values of the leasehold improvements and furniture and fixtures of $1.1 million and less than $0.1 million , respectively. The liability recorded associated with this lease is $3.0 million at September 30, 2019. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Immersion Corporation (the "Company") was incorporated in 1993 in California and reincorporated in Delaware in 1999. The Company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. The Company has adopted a business model under which it provides advanced tactile software, related tools, technical assistance designed to help integrate its patented technology into its customers’ products or enhance the functionality of its patented technology to certain customers, and offers licenses to the Company's patented technology to other customers. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. 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 ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with U.S. GAAP and should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included. |
Segment Information | Segment Information The Company develops, licenses, and supports software and a wide-range of IP that more fully engage users’ sense of touch as they engage with products and experience the digital world around them. The Company currently focuses on the following target application areas: mobility, automotive, gaming, medical and wearables. The Company’s chief operating decision maker ("CODM") is the Chief Executive Officer. The CODM allocates resources to and assesses the performance of the Company using information about its financial results as one operating and reporting segment. |
Leases | Leases The Company leases all of its office space pursuant to lease arrangements, each of which have expiration dates on or before February 29, 2024. On January 1, 2019 (the "Adoption Date"), the Company adopted the Accounting Standards Codification Section ASC 842 Leases ("ASC 842"), using the alternative modified transition method to apply the standard and measure leases existed at, or entered into, after the Adoption Date. The Company's operating leases accounted for as right-of-use ("ROU") assets and lease liability obligations in the Company's Condensed Consolidated Balance Sheets under Other assets, Other current liabilities and Other long-term liabilities, respectively. ROU assets represent the Company's right to use an underlying asset for the lease term, and lease liability obligations represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement date based on the present value of lease payments over the lease term. The Company has lease agreements that combine lease and non-lease components, and the Company elects to account for such components as a single lease component. As the Company's leases typically do not provide an implicit rate, the Company estimates its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. ROU assets also include any lease payments made and exclude lease incentives and direct costs. Lease expense is recognized on a straight-line basis over the lease term. The Company elects to not present leases with an initial term of 12 months or less on its Condensed Consolidated Balance Sheet. See Note 11 Leases of the Notes to Condensed Consolidated Financial Statements for further information on ASC 842 adoption. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In July 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-09 "Codification Improvement" ("ASU 2018-09"). This ASU amends a wide variety of Topics in the Codification issued by FASB with technical corrections, clarifications, and other minor improvements, and should eliminate the need for periodic agenda requests for narrow and incremental items. Many of the amendments in this ASU are effective for annual reporting periods beginning after December 15, 2018 for public entities. The Company adopted this ASU as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In June 2018, the FASB issued ASU 2018-07 "Compensation - Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting" ("ASU 2018-07"). This ASU expands the scope of Topic 718 to include share-based payment transaction for acquiring goods and services from nonemployees and supersedes subtopic 505-50. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted but no earlier than adoption of Topic 606. The Company adopted this ASU as of January 1, 2019. The adoption of this ASU did not have a material impact on the Company's condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02 "Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"). The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The guidance is effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years, and early adoption is permitted. The Company adopted this ASU as of January 1, 2019. The amount of stranded tax effects that was reclassified from accumulated other comprehensive loss was not material to the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases: Topic 842 ("ASU 2016-02") in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under prior U.S. GAAP. Subsequently, the FASB issued numerous amendments to the initial guidance including ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, "ASC 842"). ASC 842 requires that a lessee should recognize a liability to make lease payments ("lease liabilities") and a right-to-use ("ROU") asset representing its right-to-use the underlying asset for the lease term on the balance sheet. ASC 842 also requires additional disclosures related to key information about leasing arrangements, including, but not limited to, amounts, timing, and uncertainty of cash flows arising from leases. The Company adopted ASC 842 on January 1, 2019 (the "Adoption Date"), using the alternative modified transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of accumulated deficit to be recognized on the Adoption Date, with prior periods not restated. The Company elected certain practical expedients, including 1) not to reassess prior conclusions related to the identification, classification and accounting for initial direct costs for leases, 2) not to use hindsight to determine lease terms, 3) to not separate non-lease components within our lease portfolio, and 4) not to present leases with an initial term of 12 months or less on its Condensed Consolidated Balance Sheets. The adoption of ASC 842 resulted in the recognition of ROU assets of $4.0 million and lease liabilities for operating leases of $4.9 million . There was no cumulative effect adjustment recognized on the beginning accumulated deficits as a result of the adoption. The comparative period presented in this Form 10-Q reflects the former lease U.S. GAAP accounting guidance. See Note 11 Leases of Notes to Condensed Consolidated Financial Statements for further information. Recent Accounting Guidance Not Yet Adopted In June 2016, the FASB issued Accounting Standards Update No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). This guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected based on historical events, current conditions and forecast information. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. The Company is currently evaluating the impact of ASU 2016-13 on its Condensed Consolidated Financial Statements. |
Revenue Recognition Accounting Policy | Revenue Recognition Accounting Policy The Company's revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue. Fixed fee license revenue The Company is required to recognize revenue from a fixed fee license agreement when it has satisfied its performance obligations, which typically occurs upon the transfer of rights to the Company's technology upon the execution of the license agreement. However, in certain contracts, the Company grants a license to its 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, the Company has concluded that it has two separate performance obligations: • Performance Obligation A: to transfer rights to the Company's patent portfolio as it exists when the contract is executed; • Performance Obligation B: to transfer rights to the Company's patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. If a fixed fee license agreement contains only Performance Obligation A, the Company will recognize most or all of the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, the Company will allocate the transaction price based on the standalone price for each of the two performance obligations. The Company uses a number of factors primarily related to the attributes of its patent portfolio to estimate standalone prices related to Performance Obligation A and B. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A will be recognized in the quarter the license agreement is signed and the customer can benefit from rights provided in the contract, and the portion allocable to Performance Obligation B will be recognized on a straight-line basis over the contract term. For such contracts, a contract liability account will be established and included within deferred revenue on the Condensed Consolidated Balance Sheets. 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. Some of the Company's license agreements contain fixed fees related to past infringements. Such fixed fees are recognized as revenue or recorded as a deduction to the Company's operating expense in the quarter the license agreement is signed. Payments for fixed fee license contracts typically are due in full within 30 - 45 days from execution of the contract. From time to time, the Company enters into a fixed fee license contract with payments due in a number of installments payable throughout the contract term. In such cases, the Company will determine if a significant financing component exists and if it does, the Company will recognize more or less revenue and corresponding interest expense or income, as appropriate. Per-unit Royalty revenue ASC 606 requires an entity to record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As the Company generally does not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows the Company to adequately review the reports and include the actual amounts in its quarterly results for such quarter, the Company accrues the related revenue based on estimates of its licensees’ underlying sales, subject to certain constraints on its ability to estimate such amounts. The Company develops such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a lookback at historical royalty reporting for each of its 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 its licensees. The Company recorded adjustments to decrease royalty revenue by $143,000 during the three months ended September 30, 2019 . This adjustment represents the difference between the actual per-unit royalty revenue for the three months ended June 30, 2019 as reported by the Company's licensees during the three months ended September 30, 2019 and the estimated per-unit royalty revenue for the three months ended June 30, 2019 that the Company reported during the three months ended June 30, 2019. During the three months ended June 30 and March 31, 2019, the Company recorded adjustments to increase royalty revenue by $234,000 and $149,000 , respectively, based on actual sales that occurred in the previous quarters. During the three months ended September 30 and June 30, 2018, the Company recorded adjustments to decrease royalty revenue by $333,000 and $326,000 , respectively, based on actual sales that occurred in the previous quarters. The Company had no true-ups for the three months ended March 31, 2018. Certain of the Company's per-unit royalty agreements contains minimum royalty provision which sets forth minimum amounts to be received by the Company during the contract term. Under ASC 606, minimum royalties are considered a fixed transaction price to which the Company will have an unconditional right once all other performance obligations, if any, are satisfied. The Company recognizes all minimum royalties as revenue at the inception of the license agreement or in the period in which all remaining revenue recognition criteria have been met. The Company accounts for the unbilled minimum royalties as contract assets on a contract basis on its Condensed Consolidated Balance Sheets, and the balance of such contract assets will be reduced by the actual royalties to be reported by the licensee during the contract term until fully utilized, after which point any excess per-unit royalties reported will be recognized as revenue. 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. Payments of per-unit royalties typically are due within 30 to 60 days from the end of the calendar quarter in which the underlying sales took place. Development, services, and other revenue As the performance obligation related to the Company's development, service and other revenue is satisfied over a period of time, the Company recognizes such revenue evenly over the period of performance obligation, which is generally consistent with the contractual term. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue | The following table presents the disaggregation of the Company's revenue for the three and nine months ended September 30, 2019 and 2018 (in thousands). Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Fixed fee license revenue $ 4,115 $ 4,317 $ 10,109 $ 81,955 Per-Unit royalty revenue 6,434 4,145 14,155 17,834 Total royalty and license revenue 10,549 8,462 24,264 99,789 Development, services, and other revenue 75 90 225 323 Total revenues $ 10,624 $ 8,552 $ 24,489 $ 100,112 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on recurring basis | December 31, 2018 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Significant Total Assets: Money market accounts $ 81,425 $ — $ — $ 81,425 U.S. Treasury securities — 13,930 — 13,930 Total assets at fair value (2) $ 81,425 $ 13,930 $ — $ 95,355 (2) The above table excludes $29.6 million of cash held in banks. Financial instruments measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are classified based on the valuation technique in the table below (in thousands): September 30, 2019 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Money market accounts $ 63,226 $ — $ — $ 63,226 U.S. Treasury securities — 9,026 — 9,026 Total assets at fair value (1) $ 63,226 $ 9,026 $ — $ 72,252 (1) The above table excludes $23.4 million of cash held in banks. |
Schedule of short-term investments | Short-term investments as of September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 Amortized Gross Gross Fair U.S. Treasury securities $ 9,016 $ 10 $ — $ 9,026 Total $ 9,016 $ 10 $ — $ 9,026 December 31, 2018 Amortized Gross Gross Fair U.S. Treasury securities $ 13,936 $ — $ (6 ) $ 13,930 Total $ 13,936 $ — $ (6 ) $ 13,930 |
ACCOUNTS AND OTHER RECEIVABLES
ACCOUNTS AND OTHER RECEIVABLES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Schedule of accounts and other receivables | Accounts and other receivables consisted of the following (in thousands): September 30, December 31, Trade accounts receivable $ 1,485 $ 645 Other receivables 380 406 Accounts and other receivables $ 1,865 $ 1,051 |
OTHER ASSETS, NET (Tables)
OTHER ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of other assets | Other assets consisted of the following (in thousands): September 30, December 31, Contract assets - long-term $ 6,033 $ 7,231 Lease assets 3,371 — Deferred tax assets 295 295 Other assets 6,811 301 Total other assets, net $ 16,510 $ 7,827 |
OTHER CURRENT LIABILITIES (Tabl
OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Liabilities, Current [Abstract] | |
Components of other current liabilities | Other current liabilities consisted of the following (in thousands): September 30, December 31, Accrued legal $ 1,453 $ 1,827 Lease liabilities - current 1,161 — Income taxes payable 228 204 Other current liabilities 1,360 1,163 Total other current liabilities $ 4,202 $ 3,194 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of equity incentive program | A summary of the Company's equity incentive program is as follows (in thousands): September 30, Common stock shares available for grant 3,172 Standard and market condition-based stock options outstanding 2,011 RSAs outstanding 91 RSUs outstanding 949 |
Summary of time-based stock options | The following summarizes activities for the time-based stock options for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2018 1,862 $ 9.44 2.85 $ 751 Granted 783 $ 8.25 Exercised (173 ) $ 7.16 Canceled or expired (733 ) $ 9.78 Outstanding as of September 30, 2019 1,739 $ 8.98 3.35 $ 128 Vested and expected to vest at September, 2019 1,739 $ 8.98 3.35 $ 128 Exercisable at September 30, 2019 927 $ 9.57 0.52 $ 10 |
Summary of restricted stock units activities | The following summarizes RSU activities for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Aggregate Outstanding at December 31, 2018 1,091 $ 10.97 0.67 $ 9,773 Granted 864 $ 8.57 Released (709 ) $ 11.32 Forfeited (297 ) $ 9.84 Outstanding at September 30, 2019 949 $ 8.88 1.47 $ 7,259 |
Summary of restricted stock awards activities | The following summarizes RSA activities for the nine months ended September 30, 2019 (in thousands except for weighted average exercise per share and weighted average remaining contractual life data): Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period Outstanding at December 31, 2018 55 $ 13.02 0.46 Granted 114 $ 7.06 Released (62 ) $ 12.63 Forfeited (16 ) $ 7.27 Outstanding at September 30, 2019 91 $ 7.45 0.70 |
Summary of stock-based compensation expenses | The following table summarizes stock-based compensation expenses recognized for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Stock options $ 200 $ 286 $ 516 $ 960 RSUs and RSAs 971 2,206 3,798 5,234 Employee stock purchase plan 16 22 57 72 Total $ 1,187 $ 2,514 $ 4,371 $ 6,266 Sales and marketing $ 207 $ 377 $ 700 $ 675 Research and development 234 561 1,054 1,382 General and administrative 746 1,576 2,617 4,209 Total $ 1,187 $ 2,514 $ 4,371 $ 6,266 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Changes in accumulated other comprehensive income | Changes in accumulated other comprehensive income for the three and nine months ended September 30, 2019 are as follows (in thousands): Unrealized Gains & Losses on Available for Sale Securities Foreign Currency Items Total Balance as of June 30, 2019 $ 16 $ 122 $ 138 Amounts reclassified from accumulated other comprehensive income (6 ) — (6 ) Net current period other comprehensive income (6 ) — (6 ) Balance as of September 30, 2019 $ 10 $ 122 $ 132 Unrealized Gains & Losses on Available for Sale Securities Foreign Currency Items Total Balance as of December 31, 2018 $ (6 ) $ 122 $ 116 Amounts reclassified from accumulated other comprehensive income 16 — 16 Net current period other comprehensive income 16 — 16 Balance as of September 30, 2019 $ 10 $ 122 $ 132 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provisions | Income tax provisions consisted of the following (in thousands, except for effective tax rate percentage): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Income (loss) before provision for income taxes $ (1,299 ) $ (4,618 ) $ (20,823 ) $ 57,798 Provision for income taxes $ (88 ) $ (22 ) $ (200 ) $ (313 ) Effective tax rate (6.8 )% (0.5 )% (1.0 )% 0.5 % |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share | The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Numerator: Net income (loss) $ (1,387 ) $ (4,640 ) $ (21,023 ) $ 57,485 Denominator: Weighted-average common stock outstanding, basic 31,711 30,780 31,461 30,340 Dilutive effect of potential common shares: Stock options, RSUs, RSA and ESPP — — — 994 Total shares, diluted 31,711 30,780 31,461 31,334 Basic net income (loss) per share $ (0.04 ) $ (0.15 ) $ (0.67 ) $ 1.89 Diluted net income (loss) per share $ (0.04 ) $ (0.15 ) $ (0.67 ) $ 1.83 |
Schedule of outstanding securities that were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive | These outstanding securities consisted of the following (in thousands): September 30 2019 2018 Standard and market condition-based stock options outstanding 2,011 2,323 RSUs outstanding 949 1,091 RSAs outstanding 91 63 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of ROU assets and lease liabilities | Below is a summary of our ROU assets and lease liabilities as of the Adoption Date and September 30, 2019 , respectively (in thousands): Balance Sheets Classification September 30, 2019 January 1, 2019 Assets Operating lease assets Other assets $ 3,371 $ 4,048 Liabilities Operating lease liabilities - current Other current liabilities 1,161 1,157 Operating lease liabilities - long-term Other long-term liabilities 2,921 3,693 Total lease liabilities $ 4,082 $ 4,850 |
Schedule of supplemental information related to operating leases and expenses | During the three and nine months ended September 30, 2019 , and 2018, the Company's operating lease expenses are as follows: Three Months Ended Nine Months Ended 2019 2018 2019 2018 Operating lease costs $ 301 $ 285 $ 855 $ 891 The table below provides supplemental information related to operating leases during the nine months ended as of September 30, 2019 (in thousands except for lease term): Cash paid within operating cash flow $ 878 Weighted average lease terms (in years) 3.60 |
Schedule of minimum future lease payment obligations | Minimum future lease payment obligations as of September 30, 2019 are as follows (in thousands): For the Years Ending December 31, 2019 Remaining $ 304 2020 1,211 2021 1,195 2022 1,170 2023 454 Thereafter 24 Total $ 4,358 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)Segment | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |||
Number of reporting segments | Segment | 1 | ||
Number of operating segments | Segment | 1 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | $ 3,371 | $ 4,048 | $ 0 |
Operating lease liabilities | $ 4,082 | 4,850 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Right-of-use assets | 4,000 | ||
Operating lease liabilities | $ 4,900 |
REVENUE RECOGNITION - NARRATIVE
REVENUE RECOGNITION - NARRATIVE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Increase (decrease) in royalty revenue recognized true-ups | $ (143) | $ 234 | $ 149 | $ (333) | $ (326) | ||
Fixed fee license revenue recognized | $ 3,400 | $ 5,700 | |||||
Fixed fee license revenue | Minimum | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue, payment terms | 30 days | ||||||
Fixed fee license revenue | Maximum | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue, payment terms | 45 days | ||||||
Per-Unit royalty revenue | Minimum | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue, payment terms | 30 days | ||||||
Per-Unit royalty revenue | Maximum | |||||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||||
Revenue, payment terms | 60 days |
REVENUE RECOGNITION - DISAGGREG
REVENUE RECOGNITION - DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 10,624 | $ 8,552 | $ 24,489 | $ 100,112 | |
Contract with customer, asset, current | 11,200 | 11,200 | $ 9,000 | ||
Contract assets - long-term | 6,033 | 6,033 | $ 7,231 | ||
Decrease in contract with customer, asset | 1,100 | ||||
Fixed fee license revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,115 | 4,317 | 10,109 | 81,955 | |
Per-Unit royalty revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,434 | 4,145 | 14,155 | 17,834 | |
Total royalty and license revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 10,549 | 8,462 | 24,264 | 99,789 | |
Development, services, and other revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 75 | $ 90 | $ 225 | $ 323 |
REVENUE RECOGNITION - CONTRACTE
REVENUE RECOGNITION - CONTRACTED REVENUE (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 31.1 | $ 34.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 12.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 18.7 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, period |
FAIR VALUE MEASUREMENTS - SCHED
FAIR VALUE MEASUREMENTS - SCHEDULE OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | $ 9,026 | $ 13,930 |
Cash held in banks | 23,400 | 29,600 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,026 | 13,930 |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 72,252 | 95,355 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,026 | 13,930 |
Fair value, measurements, recurring | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 63,226 | 81,425 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 63,226 | 81,425 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 63,226 | 81,425 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 9,026 | 13,930 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 9,026 | 13,930 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Period for contractual maturities of the Company's available-for-sale securities | 1 year | 1 year |
FAIR VALUE MEASUREMENTS - SCH_2
FAIR VALUE MEASUREMENTS - SCHEDULE OF SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 9,016 | $ 13,936 |
Gross Unrealized Holding Gains | 10 | 0 |
Gross Unrealized Holding Losses | 0 | (6) |
Fair Value | 9,026 | 13,930 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,016 | 13,936 |
Gross Unrealized Holding Gains | 10 | 0 |
Gross Unrealized Holding Losses | 0 | (6) |
Fair Value | $ 9,026 | $ 13,930 |
ACCOUNTS AND OTHER RECEIVABLE_2
ACCOUNTS AND OTHER RECEIVABLES (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,485,000 | $ 645,000 |
Other receivables | 380,000 | 406,000 |
Accounts and other receivables | 1,865,000 | 1,051,000 |
Allowance for doubtful accounts | $ 0 | $ 0 |
OTHER ASSETS, NET (Details)
OTHER ASSETS, NET (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Assets [Line Items] | ||||
Contract assets - long-term | $ 6,033 | $ 7,231 | ||
Lease assets | 3,371 | $ 4,048 | 0 | |
Deferred tax assets | 295 | 295 | ||
Other assets | 6,811 | 301 | ||
Total other assets, net | $ 16,510 | $ 7,827 | ||
ASU 2016-02 | ||||
Other Assets [Line Items] | ||||
Lease assets | $ 4,000 | |||
Other assets, net | ||||
Other Assets [Line Items] | ||||
Deposit asset | $ 6,900 |
OTHER CURRENT LIABILITIES (Deta
OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Other Liabilities, Current [Abstract] | |||
Accrued legal | $ 1,453 | $ 1,827 | |
Lease liabilities - current | 1,161 | $ 1,157 | 0 |
Income taxes payable | 228 | 204 | |
Other current liabilities | 1,360 | 1,163 | |
Total other current liabilities | $ 4,202 | $ 3,194 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) | Jun. 14, 2019shares | Sep. 30, 2019USD ($)shares | Dec. 31, 2018shares |
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 | $ | $ 9,300,000 | ||
Unrecognized compensation cost, recognized over an estimated weighted-average period | 2 years 9 months 11 days | ||
Stock options outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award vesting period | 4 years | ||
Increase in number of common shares reserved for issuance (in shares) | 2,595,751 | ||
Stock options outstanding (in shares) | 2,011,000 | ||
Stock options outstanding | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period | 7 years | ||
Stock options outstanding | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based payment award expiration period | 10 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 | ||
Market condition based stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding (in shares) | 272,081 | 272,081 | |
Employee stock purchase plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of fair market value on the purchase date | 85.00% | ||
Maximum number of shares per employee (in shares) | 2,000 | ||
Employee stock purchase plan offering period | 6 months | ||
Maximum value of shares per employee | $ | $ 25,000 | ||
Common stock reserved for issuance (in shares) | 1,000,000 | ||
Purchases under ESPP (in shares) | 21,741 | ||
Shares available for purchase (in shares) | 253,437 |
STOCK-BASED COMPENSATION - SUMM
STOCK-BASED COMPENSATION - SUMMARY OF EQUITY INCENTIVE PROGRAM (Details) - shares shares in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for grant (in shares) | 3,172 | |
Standard and market condition-based stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Standard and market condition-based stock options outstanding (in shares) | 2,011 | |
RSAs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 91 | 55 |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 949 | 1,091 |
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, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | |
Number of Shares Underlying Stock Options | ||
Beginning outstanding balance (in shares) | shares | 1,862 | |
Granted (in shares) | shares | 783 | |
Exercised (in shares) | shares | (173) | |
Canceled or expired (in shares) | shares | (733) | |
Ending outstanding balance (in shares) | shares | 1,739 | 1,862 |
Number of shares underlying stock options, Vested and expected to vest (in shares) | shares | 1,739 | |
Number of shares underlying stock options, Exercisable (in shares) | shares | 927 | |
Weighted Average Exercise Price Per Share | ||
Beginning outstanding balance (in dollars per share) | $ / shares | $ 9.44 | |
Granted (in dollars per share) | $ / shares | 8.25 | |
Exercised (in dollars per share) | $ / shares | 7.16 | |
Canceled or expired (in dollars per share) | $ / shares | 9.78 | |
Ending outstanding balance (in dollars per share) | $ / shares | 8.98 | $ 9.44 |
Weighted average exercise price, Vested and expected to vest (in dollars per share) | $ / shares | 8.98 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ / shares | $ 9.57 | |
Weighted average remaining contractual life, Outstanding | 3 years 4 months 6 days | 2 years 10 months 6 days |
Weighted average remaining contractual life, Vested and expected to vest | 3 years 4 months 6 days | |
Weighted average remaining contractual life, Exercisable | 6 months 7 days | |
Aggregate intrinsic value, Outstanding | $ | $ 128 | $ 751 |
Aggregate intrinsic value, Vested and expected to vest | $ | 128 | |
Aggregate intrinsic value, Exercisable | $ | $ 10 |
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, 2019 | Dec. 31, 2018 | |
RSUs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 1,091 | |
Granted (in shares) | 864 | |
Released (in shares) | (709) | |
Forfeited (in shares) | (297) | |
Ending outstanding balance (in shares) | 949 | 1,091 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 10.97 | |
Granted (in dollars per share) | 8.57 | |
Released (in dollars per share) | 11.32 | |
Forfeited (in dollars per share) | 9.84 | |
Ending outstanding balance (in dollars per share) | $ 8.88 | $ 10.97 |
Weighted average remaining contractual life / recognition period, Outstanding | 1 year 5 months 19 days | 8 months 1 day |
Aggregate intrinsic value, Outstanding | $ 7,259 | $ 9,773 |
RSAs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 55 | |
Granted (in shares) | 114 | |
Released (in shares) | (62) | |
Forfeited (in shares) | (16) | |
Ending outstanding balance (in shares) | 91 | 55 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 13.02 | |
Granted (in dollars per share) | 7.06 | |
Released (in dollars per share) | 12.63 | |
Forfeited (in dollars per share) | 7.27 | |
Ending outstanding balance (in dollars per share) | $ 7.45 | $ 13.02 |
Weighted average remaining contractual life / recognition period, Outstanding | 8 months 12 days | 5 months 16 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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 1,187 | $ 2,514 | $ 4,371 | $ 6,266 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 207 | 377 | 700 | 675 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 234 | 561 | 1,054 | 1,382 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 746 | 1,576 | 2,617 | 4,209 |
Standard and market condition-based stock options outstanding | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 200 | 286 | 516 | 960 |
RSUs and RSAs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 971 | 2,206 | 3,798 | 5,234 |
Employee stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 16 | $ 22 | $ 57 | $ 72 |
STOCKHOLDERS' EQUITY - CHANGES
STOCKHOLDERS' EQUITY - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Beginning balance | $ 138 | $ 116 |
Amounts reclassified from accumulated other comprehensive income | (6) | 16 |
Net current period other comprehensive income | (6) | 16 |
Ending balance | 132 | 132 |
Unrealized Gains & Losses on Available for Sale Securities | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Beginning balance | 16 | (6) |
Amounts reclassified from accumulated other comprehensive income | (6) | 16 |
Net current period other comprehensive income | (6) | 16 |
Ending balance | 10 | 10 |
Foreign Currency Items | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | ||
Beginning balance | 122 | 122 |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 |
Net current period other comprehensive income | 0 | 0 |
Ending balance | $ 122 | $ 122 |
STOCKHOLDERS' EQUITY - NARRATIV
STOCKHOLDERS' EQUITY - NARRATIVE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Oct. 22, 2014 | Nov. 01, 2007 | |
Equity [Abstract] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Stock repurchase program, additional authorized amount | $ 30,000,000 | |||||
Repurchased shares (in shares) | 0 | 0 | 0 | 0 | ||
Repurchased shares, value | $ 0 | $ 0 | $ 0 | $ 0 | ||
Stock repurchase program, remaining available repurchase amount | $ 33,400,000 | $ 33,400,000 |
INCOME TAXES - SCHEDULE OF INCO
INCOME TAXES - SCHEDULE OF INCOME TAX PROVISIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income (loss) before provision for income taxes | $ (1,299) | $ (4,618) | $ (20,823) | $ 57,798 |
Provision for income taxes | $ (88) | $ (22) | $ (200) | $ (313) |
Effective tax rate | (6.80%) | (0.50%) | (1.00%) | 0.50% |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 5,100 |
Unrecognized tax benefits, interest | 23 |
Unrecognized tax benefits that would affect the Company's effective tax rate | 97 |
Deferred income tax assets | 295 |
Deferred income tax liabilities | 30 |
Valuation allowance of deferred tax assets | $ 24,500 |
NET INCOME (LOSS) PER SHARE - R
NET INCOME (LOSS) PER SHARE - RECONCILIATION OF NUMERATORS AND DENOMINATORS USED IN COMPUTING BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income (loss) | $ (1,387) | $ (4,640) | $ (21,023) | $ 57,485 |
Denominator: | ||||
Weighted-average common stock outstanding, basic (in shares) | 31,711 | 30,780 | 31,461 | 30,340 |
Dilutive effect of potential common shares, Stock options, restricted stock units, restricted stock awards and employee stock purchase plan (in shares) | 0 | 0 | 0 | 994 |
Dilutive effect of potential common shares, Total shares, diluted (in shares) | 31,711 | 30,780 | 31,461 | 31,334 |
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ (0.15) | $ (0.67) | $ 1.89 |
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ (0.15) | $ (0.67) | $ 1.83 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - SCHEDULE OF OUTSTANDING SECURITIES (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Average fair value price per share of common stock (in dollars per share) | $ 12.04 | |||
Standard and market condition-based stock options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 2,011 | 2,323 | 2,011 | 262 |
RSUs outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 949 | 1,091 | 949 | |
RSAs outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Options to purchase shares of common stock (in shares) | 91 | 63 | 91 |
LEASES - NARRATIVE (Details)
LEASES - NARRATIVE (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | $ 4,082 | $ 4,850 | |
Operating lease, borrowing rate | 3.25% | ||
Right-of-use assets | $ 3,371 | $ 4,048 | $ 0 |
Deferred rent | $ 764 | ||
ASU 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | 4,900 | ||
Right-of-use assets | $ 4,000 |
LEASES - SUMMARY OF RIGHT OF US
LEASES - SUMMARY OF RIGHT OF USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Assets | |||
Operating lease assets | $ 3,371 | $ 4,048 | $ 0 |
Liabilities | |||
Operating lease liabilities - current | 1,161 | 1,157 | $ 0 |
Operating lease liabilities - long-term | 2,921 | 3,693 | |
Total lease liabilities | $ 4,082 | $ 4,850 |
LEASES - SCHEDULE OF SUPPLEMENT
LEASES - SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES AND EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Leases [Abstract] | ||||
Cash paid within operating cash flow | $ 878 | |||
Weighted average lease terms (in years) | 3 years 7 months 6 days | 3 years 7 months 6 days | ||
Operating lease costs | $ 301 | $ 285 | $ 855 | $ 891 |
LEASES - SCHEDULE OF MINIMUM FU
LEASES - SCHEDULE OF MINIMUM FUTURE LEASE PAYMENT OBLIGATIONS (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2019 Remaining | $ 304 |
2020 | 1,211 |
2021 | 1,195 |
2022 | 1,170 |
2023 | 454 |
Thereafter | 24 |
Total | $ 4,358 |
CONTINGENCIES - NARRATIVE (Deta
CONTINGENCIES - NARRATIVE (Details) | Mar. 27, 2019USD ($) | Mar. 27, 2019KRW (₩) | Mar. 31, 2019USD ($) |
Other assets | |||
Loss Contingencies [Line Items] | |||
Deposit asset | $ 6,900,000 | ||
Samsung vs. Immersion | Withholding taxes on royalty payments | |||
Loss Contingencies [Line Items] | |||
Litigation, amount awarded to other party | ₩ | ₩ 7,841,324,165 | ||
Litigation, arbitration costs | $ 871,454 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 3,371 | $ 4,048 | $ 0 |
Net book values | 1,768 | $ 2,343 | |
Operating lease liabilities | 4,082 | $ 4,850 | |
50 Rio Robles in San Jose, California | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | 2,400 | ||
Operating lease liabilities | 3,000 | ||
50 Rio Robles in San Jose, California | Leasehold improvements | |||
Lessee, Lease, Description [Line Items] | |||
Net book values | 1,100 | ||
50 Rio Robles in San Jose, California | Furniture and fixtures | |||
Lessee, Lease, Description [Line Items] | |||
Net book values | $ 100 |
Uncategorized Items - immr-2019
Label | Element | Value | [1] |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,752,000 | |
Retained Earnings [Member] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 18,752,000 | |
[1] | Effect of adoption of ASC 606 effective January 1, 2018. See Note 2. Revenue Recognition for additional information. |