Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 06, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Fiscal Year Focus | 2022 | |
Document Period End Date | Mar. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 000-38334 | |
Entity Registrant Name | Immersion Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3180138 | |
Entity Address, Address Line One | 2999 N.E. 191st Street, Suite 610 | |
Entity Address, City or Town | Aventura | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33180 | |
City Area Code | 408 | |
Local Phone Number | 467-1900 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 33,614,053 | |
Entity Central Index Key | 0001058811 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | IMMR | |
Security Exchange Name | NASDAQ | |
Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Series B Junior Participating Preferred Stock Purchase Rights | |
Trading Symbol | IMMR | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 62,958 | $ 51,490 |
Marketable Securities, Current | 83,532 | 86,431 |
Accounts and other receivables | 2,079 | 1,970 |
Prepaid expenses and other current assets | 11,788 | 13,432 |
Total current assets | 160,357 | 153,323 |
Property and equipment, net | 405 | 444 |
Long-term deposits | 4,917 | 9,658 |
Debt Securities, Available-for-sale, Noncurrent | 11,181 | 7,286 |
Other assets, net | 4,001 | 4,809 |
Total assets | 180,861 | 175,520 |
Current liabilities: | ||
Accounts payable | 53 | 2 |
Accrued compensation | 567 | 555 |
Contract with Customer, Liability, Current | 4,736 | 4,826 |
Other current liabilities | 15,955 | 11,247 |
Total current liabilities | 21,311 | 16,630 |
Long-term deferred revenue | 15,494 | 16,699 |
Other long-term liabilities | 706 | 896 |
Total liabilities | 37,511 | 34,225 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital | 324,476 | 323,296 |
Accumulated other comprehensive income | 653 | 412 |
Accumulated deficit | (95,604) | (100,680) |
Treasury stock | (86,175) | (81,733) |
Total stockholders’ equity | 143,350 | 141,295 |
Total liabilities and stockholders’ equity | $ 180,861 | $ 175,520 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Revenue | $ 7,308 | $ 7,159 |
Costs and expenses: | ||
Cost of revenues | 4 | 29 |
Sales and marketing | 486 | 1,106 |
Research and development | 509 | 1,307 |
General and administrative | 2,706 | 2,224 |
Total costs and expenses | 3,705 | 4,666 |
Operating income | 3,603 | 2,493 |
Interest and other income (loss), net | 2,034 | (316) |
Income before provision for income taxes | 5,637 | 2,177 |
Provision for income taxes | (561) | (141) |
Net income | $ 5,076 | $ 2,036 |
Basic net income (loss) per share (in dollars per share) | $ 0.15 | $ 0.07 |
Shares used in calculating basic net income (loss) per share (in shares) | 33,996 | 28,579 |
Diluted net income (loss) per share (in dollars per share) | $ 0.15 | $ 0.07 |
Shares used in calculating diluted net income (loss) per share (in shares) | 34,268 | 29,180 |
Other comprehensive income, net of tax | ||
Change in unrealized gains on available-for-sale securities | $ 241 | $ 0 |
Total other comprehensive income | 241 | 0 |
Total comprehensive income | 5,317 | 2,036 |
Royalty and license | ||
Revenues: | ||
Revenue | 7,230 | 7,068 |
Development, services, and other | ||
Revenues: | ||
Revenue | $ 78 | $ 91 |
CONSOLIDATED STATEMENTS OF STOC
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, 2020 | 39,161,214 | 12,143,433 | |||
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2020 | $ 63,981 | $ 258,756 | $ 122 | $ (113,164) | $ (81,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,036 | 2,036 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | 0 | ||||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 306,987 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 2,724 | $ 2,724 | |||
Release of restricted stock units and awards (in shares) | 227,055 | ||||
Stock Issued During Period Value Restricted Stock Units And Award Net Of Forfeitures | 0 | ||||
Issuance of stock for ESPP purchase (in shares) | 15,543 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 89 | $ 89 | |||
Stock issued during period (in shares) | 3,309,811 | ||||
Stock issued during period | 35,937 | $ 35,937 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 531 | $ 531 | |||
Ending balance (in shares) at Mar. 31, 2021 | 43,020,610 | 12,143,433 | |||
Ending balance at Mar. 31, 2021 | 105,298 | $ 298,037 | 122 | (111,128) | $ (81,733) |
Beginning balance (in shares) at Dec. 31, 2021 | 46,534,198 | 12,143,433 | |||
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2021 | 141,295 | $ 323,296 | 412 | (100,680) | $ (81,733) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,076 | 5,076 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent | $ 241 | 241 | |||
Stock repurchase (in shares) | 34,282 | 938,781 | |||
Treasury Stock, Value, Acquired, Cost Method | $ (4,442) | $ (4,442) | |||
Release of restricted stock units and awards (in shares) | 116,811 | ||||
Stock Issued During Period Value Restricted Stock Units And Award Net Of Forfeitures | 0 | ||||
Issuance of stock for ESPP purchase (in shares) | 7,725 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 34 | $ 34 | |||
Stock issued during period | 5 | 5 | |||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 1,141 | $ 1,141 | |||
Ending balance (in shares) at Mar. 31, 2022 | 46,658,734 | 13,082,214 | |||
Ending balance at Mar. 31, 2022 | $ 143,350 | $ 324,476 | $ 653 | $ (95,604) | $ (86,175) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows provided by (used in) operating activities: | ||
Net income | $ 5,076 | $ 2,036 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 206 | 192 |
Stock-based compensation | 1,141 | 531 |
Net gains on investment in marketable equity securities | (3,166) | 0 |
Net losses on derivative instruments | 2,795 | 0 |
Realized gains on investment in marketable debt securities | (368) | 0 |
Foreign currency remeasurement gains | 131 | 280 |
Other | (17) | 24 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | (109) | 184 |
Prepaid expenses and other current assets | 1,644 | 1,396 |
Long-term deposits | 4,611 | 0 |
Other assets | 757 | 843 |
Accounts payable | 52 | 305 |
Accrued compensation | 12 | (68) |
Other current liabilities | (77) | 280 |
Deferred revenue | (1,295) | (1,226) |
Other long-term liabilities | (355) | (367) |
Net cash provided by operating activities | 11,038 | 4,410 |
Cash flows provided by (used in) investing activities: | ||
Purchases of marketable securities | (36,778) | 0 |
Proceeds from sale or maturities of marketable securities and other investments | 39,899 | 0 |
Proceeds from sale of derivative instruments | 6,817 | 0 |
Payments for settlement of derivative instruments | (5,105) | 0 |
Purchases of property and equipment | 0 | (57) |
Net cash provided by (used in) investing activities | 4,833 | (57) |
Cash flows provided by (used in) financing activities: | ||
Proceed from issuance of common stock, net of issuance costs | 5 | 35,937 |
Proceeds from issuance of common stock under employee stock purchase plan | 34 | 89 |
Proceeds from stock options exercises | 0 | 2,723 |
Cash paid for purchases of treasury stock | (4,442) | 0 |
Net cash provided by (used in) financing activities | (4,403) | 38,749 |
Net increase in cash and cash equivalents | 11,468 | 43,102 |
Cash and cash equivalents: | ||
Beginning of year | 51,490 | 59,522 |
End of year | 62,958 | 102,624 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 17 | 13 |
Supplemental disclosure of non-cash operating, investing, and financing activities: | ||
Release of restricted stock units and awards under company stock plan | 612 | 2,367 |
Leased assets obtained in exchange for new operating lease liabilities | $ 120 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Description of Business Immersion Corporation (the "Company", "Immersion", "we" or "us") was incorporated in 1993 in California and reincorporated in Delaware in 1999. We focus 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. We have adopted a business model under which it provides advanced tactile software, related tools, technical assistance designed to help integrate our patented technology into our customers’ products or enhance the functionality of our patented technology to certain customers, and offers licenses to our patented technology to other customers. Impact of COVID-19 The outbreak of a novel strain of coronavirus ("COVID-19") caused governments and public health officials around the world to implementing stringent measures to help control the spread of the virus. In response to the COVID-19 pandemic, we implemented work-from-home and restricted travel policies in the first quarter of 2020, which remained in place during the first quarter of 2022. In April 2020, the Government of Canada announced the Canada Emergency Wage Subsidy (“CEWS”) for Canadian employers whose businesses were affected by the COVID-19 pandemic. The CEWS provides a subsidy of up to 75% of eligible employees’ employment insurable remuneration, subject to certain criteria. We applied for the CEWS to the extent we met the requirements to receive the subsidy. During the three months ended March 31, 2021, we recognized $0.1 million in government subsidies as a reduction to operating expenses in the Condensed Consolidated Statements of Income and Comprehensive Income . We did not recognize government subsidy during the three months ended March 31, 2022. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion and our wholly-owned subsidiaries. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("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 our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. 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. Use of Estimates The preparation of condensed consolidated financial statements and related disclosures requires management to make estimates and assumptions that affect the reported amounts of the condensed consolidated financial statements. Significant estimates include revenue recognition, fair value of financial instruments, useful lives of property and equipment, valuation of income taxes including uncertain tax provisions, stock-based compensation and long-term deposits for withholding taxes. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the full year. Segment Information We develop, license, and support a wide range of software and IP that more fully engage users’ sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial. We manage these application areas in one operating and reporting segment with only one set of management, development, and administrative personnel. Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one segment that is reported to management. Recently Adopted Accounting Pronouncements In November 2021, Financial Accounting Standard Board ("FASB") issued ASU 2021-10, Government Assistance (Topic 832) , which requires annual disclosures that increase the transparency of transactions involving government grants, including the types of transactions, the accounting for those transactions, and the effect of those transactions on an entity’s financial statements. This new standard became effective for annual periods beginning after December 15, 2021. We adopted this new guidance in the first quarter of 2022. This adoption did not have material impact on our condensed consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregated Revenue The following table presents the disaggregation of our revenue for the three months ended March 31, 2022 and 2021 (in thousands): For the Three Months Ended 2022 2021 Fixed fee license revenue $ 1,745 $ 1,275 Per-unit royalty revenue 5,485 5,793 Total royalty and license revenue 7,230 7,068 Development, services, and other revenue 78 91 Total revenues $ 7,308 $ 7,159 Per-unit Royalty Revenue We record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As we generally do not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows us to adequately review the reports and include the actual amounts in our quarterly results for such quarter, we accrue the related revenue based on estimates of our licensees’ underlying sales, subject to certain constraints on our ability to estimate such amounts. We develop such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a look back at historical royalty reporting for each of our customers, and industry information available for the licensed products. As a result of accruing per-unit royalty revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true up revenue to the actual amounts reported by our licensees. In the three months ended March 31, 2022, we recorded adjustments of $0.3 million to increase royalty revenue. We recorded adjustments of $0.5 million to decrease royalty revenue during the three months ended March 31, 2021. Contract Assets As of March 31, 2022, we had contract assets of $10.9 million included within Prepaid expenses and other current asset s, and $1.0 million included within Other assets, net on the Condensed Consolidated Balance Sheets . As of December 31, 2021, we had contract assets of $12.4 million included within Prepaid expenses and other current assets , and $1.7 million included within Other assets, net on the Condensed Consolidated Balance Sheets . Contract assets decreased by $2.3 million from January 1, 2022 to March 31, 2022, primarily due to actual royalties billed during the period. Contracted Revenue We recognize revenue from a fixed fee license agreement when we have satisfied our performance obligations, which typically occurs upon the transfer of rights to our technology upon the execution of the license agreement. However, in certain contracts, we grant a license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, we have concluded that there are two separate performance obligations: • Performance Obligation A: to transfer rights to our patent portfolio as it exists when the contract is executed. • Performance Obligation B: to transfer rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. If a fixed fee license agreement contains only Performance Obligation A, we recognize 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, we allocate the transaction price based on the standalone price for each of the two performance obligations. We use a number of factors primarily related to the attributes of our 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 is recognized in the period the license agreement is signed and the customer can benefit from rights provided in the contract. The portion allocable to Performance Obligation B is recognized on a straight-line basis over the contract term. For such contracts, a contract liability account is established and included within Deferred revenue on the Condensed Consolidated Balance Sheet s. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. |
INVESTMENTS AND FAIR VALUE MEAS
INVESTMENTS AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS AND FAIR VALUE MEASUREMENTS | INVESTMENTS AND FAIR VALUE MEASUREMENTS Marketable Securities We invest surplus funds in excess of operational requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns, maintaining a high degree of liquidity, and seeking to avoid the permanent impairment of principal. Our investments in marketable debt securities are classified and accounted for as available-for-sale. The marketable debt securities are classified either short-term or long-term based on each instrument’s underlying contractual maturity date. As of March 31, 2022 and December 31, 2021, we reported $11.2 million and $7.3 million of investments in debt securities as Marketable debt securities on our Condensed Consolidated Balance Sheets, respectively , as management intends to hold these investment for more than 12 months from the reporting date. We may sell certain marketable debt securities prior to their stated maturities for reasons including, but not limited to, managing liquidity, credit risk, duration and asset allocation. Our investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations. The marketable equity securities are measured at fair value with gains and losses recognized in Interest and other income (loss), net on our Condensed Consolidated Statements of Income and Comprehensive Income . We regularly review our investment portfolio to identify and evaluate investments that have indicators of possible impairment. Investments are considered impaired when a decline in fair value is judged to be other-than-temporary. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, we will record an impairment charge and establish a new cost basis in the investment. Marketable securities as of March 31, 2022 and December 31, 2021 consisted of following (in thousands): March 31, 2022 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 40,023 $ — $ (1,601) $ 38,422 Corporate bonds 10,651 530 — 11,181 Equity securities 43,039 3,038 (967) 45,110 $ 93,713 $ 3,568 $ (2,568) $ 94,713 December 31, 2021 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 50,000 $ — $ (338) $ 49,662 Corporate bonds 6,996 290 — 7,286 Equity securities 38,100 — (1,331) 36,769 $ 95,096 $ 290 $ (1,669) $ 93,717 As of March 31, 2022 and December 31, 2021, marketable securities are classified and reported on our Condensed Consolidated Balance Sheets as follows: March 31, 2022 Marketable Equity Securities Marketable Debt Securities Total Mutual funds $ 38,422 $ — $ 38,422 Equity securities 45,110 — 45,110 Corporate bonds — 11,181 11,181 $ 83,532 $ 11,181 $ 94,713 December 31, 2021 Marketable Equity Securities Marketable Debt Securities Total Mutual funds $ 49,662 $ — $ 49,662 Equity securities 36,769 — 36,769 Corporate bonds — 7,286 7,286 $ 86,431 $ 7,286 $ 93,717 The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of March 31, 2022 (in thousands) are as follows: March 31, 2022 Amortized Fair Less than 1 year $ — $ — 1 to 5 years 10,651 11,181 Total $ 10,651 $ 11,181 Derivative Financial Instruments We invest in derivatives that are not designated as hedging instruments and which consist of call and put options. When we sell call and put options, the premium received is reported as Other current liabilities on our Condensed Consolidated Balance Sheets . When we purchase put or call options, the premium paid is reported as Marketable securities on our Condensed Consolidated Balance Sheets . The carrying value of these options are adjusted to the fair value at the end of each reporting period until the options expire. Gains and losses recognized from the periodic adjustments to fair value are recognized as Interest and other income , on our Condensed Consolidated Statements of Income and Comprehensive Income . Our derivative instruments which consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in thousands). March 31, 2022 Cost Unrealized Losses Fair Value Derivative instruments $ 8,392 $ 2,558 $ 10,950 $ 8,392 $ 2,558 $ 10,950 December 31, 2021 Cost Unrealized Gains Fair Value Derivative instruments $ 6,370 $ (103) $ 6,267 $ 6,370 $ (103) $ 6,267 A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands): Three Months Ended 2022 2021 Net unrealized gains recognized on marketable equity securities $ 2,140 $ — Net realized gains recognized on marketable equity securities 1,026 — Net unrealized losses recognized on derivative instruments (2,661) — Net realized loss recognized on derivative instruments (134) — Net realized gains recognized on marketable debt securities 368 — Total net gains recognized in interest and other income (loss), net $ 739 $ — Fair Value Measurements Our financial instruments measured at fair value on a recurring basis consisted of money-market funds, mutual funds, equity securities, corporate debt securities and derivatives. Equity securities are classified within Level 1 of the fair value hierarchy as they are valued based on quoted market price in an active market. Corporate debt securities and derivative instruments are 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. Financial instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. We did not hold Level 3 financial instruments as of March 31, 2022 and December 31, 2021. Financial instruments measured at fair value on a recurring basis as of March 31, 2022 and December 2021 are classified based on the valuation technique in the table below (in thousands): March 31, 2022 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Mutual funds $ 38,422 $ — $ — $ 38,422 Equity securities 45,110 — — 45,110 Corporate bonds — 11,181 — 11,181 Total assets at fair value $ 83,532 $ 11,181 $ — $ 94,713 Liabilities Derivative instruments $ — $ 10,950 $ — $ 10,950 Total liabilities at fair value $ — $ 10,950 $ — $ 10,950 December 31, 2021 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Mutual funds $ 49,662 $ — $ — 49,662 Equity securities 36,769 — — 36,769 Corporate bonds — 7,286 — 7,286 Total assets at fair value $ 86,431 $ 7,286 $ — $ 93,717 Liabilities Derivative instruments $ — $ 6,267 $ — $ 6,267 Total liabilities at fair value $ — $ 6,267 $ — $ 6,267 |
BALANCE SHEET DETAILS
BALANCE SHEET DETAILS | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET DETAILS | BALANCE SHEETS DETAILS Accounts and Other Receivables Accounts and other receivables were as follows (in thousands): March 31 December 31 Trade accounts receivables $ 1,118 $ 1,235 Other receivables 961 735 Accounts and other receivables $ 2,079 $ 1,970 Allowance for credit losses as of March 31, 2022 and December 31, 2021 were not material. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were as follows (in thousands): March 31 December 31 Prepaid expenses $ 701 $ 798 Contract assets - current 10,906 12,448 Other current assets 181 186 Prepaid expenses and other current assets $ 11,788 $ 13,432 Other Assets, Net Other assets, net are as follows (in thousands): March 31 December 31 Contract assets - long-term $ 1,014 $ 1,746 Lease right-of-use assets 861 912 Deferred tax assets 2,116 2,115 Other assets 10 36 Total other assets, net $ 4,001 $ 4,809 Other Current Liabilities Other current liabilities are as follows (in thousands): March 31 December 31 Derivative instruments $ 10,950 $ 6,267 Lease liabilities - current 1,065 1,098 Other current liabilities 3,940 3,882 Total other current liabilities $ 15,955 $ 11,247 |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES From time to time, we receive claims from third parties asserting that our technologies, or those of our licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, we are involved in routine legal matters and contractual disputes incidental to our normal operations. In management’s opinion, unless we disclosed otherwise, the resolution of such matters will not have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. In the normal course of business, we provide indemnification of varying scope to customers, most commonly to licensees in connection with licensing arrangements that include our IP, although these provisions can cover additional matters. Historically, costs related to these guarantees have not been significant, and we are unable to estimate the maximum potential impact of these guarantees on its future results of operations. Samsung Electronics Co. v. Immersion Corporation and Immersion Software Ireland Limited On April 28, 2017, Immersion and Immersion Software Ireland Limited (collectively referred to as “Immersion” in this section) received a letter from Samsung Electronics Co. (“Samsung”) requesting that we 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 our 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. On July 16, 2020, the Korea Administrative Court issued its ruling in which it ruled that the withholding taxes and penalties which were imposed by the Korean tax authorities on Samsung should be cancelled with some litigation costs to be borne by the Korean tax authorities. On August 1, 2020, the Korean tax authorities filed an appeal with the Korea High Court. The first hearing in the Korea High Court occurred on November 11, 2020. A second hearing occurred on January 13, 2021. A third hearing occurred on March 21, 2021. The Korea High Court had indicated that a final decision was originally expected on May 28, 2021, but instead, decided to hold a fourth hearing on July 9, 2021. On October 1, 2021, the Korea High Court issued its ruling in which it ruled that withholding taxes and penalties totaling approximately KRW 6,186,218,586 (approximately $5.2 million) in national-level withholding tax and local withholding taxes imposed by the Korean tax authorities on Samsung for royalties paid to Immersion during the period of 2012 – 2014 be cancelled on the basis that the Korea tax authorities wrongfully engaged in a duplicative audit with respect to such time period. The Korea High Court also ruled that approximately KRW1,655,105,584 (approximately $1.4 million) of national-level withholding tax and local withholding taxes imposed by the Korean tax authorities on Samsung for royalties paid to Immersion during 2015 and 2016 be upheld in part on the basis that Immersion Software Ireland Limited did not have sufficient economic substance to be considered the beneficial owner of the royalties paid by Samsung to Immersion Software Ireland Limited. On or about October 22, 2021, the Korean tax authorities filed an appeal with the Korea Supreme Court with respect to certain portions of the Korea High Court decision and we filed an appeal with the Korea Supreme Court with respect to certain portions of the Korea High Court decision. On December 1, 2021, the Korean tax authorities submitted its brief to the Korea Supreme Court challenging the cancellation by the Korea High Court of a portion of the withholding tax imposed by the Korean tax authorities. On December 3, 2021, we submitted our own brief to the Korea Supreme Court providing arguments in support of our position that Immersion Software Ireland Limited has sufficient economic substance to be considered the beneficial owner of the royalties paid by Samsung to Immersion Software Ireland Limited. Such brief also provided arguments challenging the calculation of the imposed withholding tax upheld by the Korea High Court. On December 2021, the Korean tax authorities filed a rebuttal brief relating to our brief filed on December 3, 2021. On December 29, 2021, we filed our rebuttal brief relating to the Korean tax authorities’ brief filed on December 1, 2021. On February 24, 2022, the Korea Supreme Court issued a decision affirming the rulings of the Korea High Court. We believe that any impairment in the Long-term deposits associated with the rulings of the Korea High Court is appropriately reflected in the Condensed Consolidated Balance Sheets . On September 29, 2017, Samsung filed an arbitration demand with the International Chamber of Commerce against us demanding that we reimburse Samsung for the imposed tax and penalties that Samsung paid to the Korean tax authorities. Samsung is requesting that we pay Samsung the amount of KRW 7,841,324,165 (approximately $6.9 million) plus interest from and after May 2, 2017, plus the cost of the arbitration including legal fees. On March 27, 2019, we received the final award. The award ordered Immersion to pay Samsung KRW 7,841,324,165 (approximately $6.9 million as of March 31, 2019) which we paid on April 22, 2019 and recorded in Long-term deposits on our Condensed Consolidated Balance Sheets . The award also 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, which was paid in 2019. In the fourth quarter of 2021, we recorded an impairment charge of $1.4 million related to long-term deposits paid to Samsung. In March 2022, as a result of the Korea Supreme Court decision described above, we were reimbursed by Samsung in an amount equal to KRW6,088,855,388 (approximately $5 million) representing Korea national-level taxes, penalties and interest that were canceled by the Korea Supreme Court, which amount is net of $1.3 million of the impairment charge previously recorded in the fourth quarter of 2021. We expect to be reimbursed an additional KRW608,885,000 (approximately $0.5 million) representing local-level taxes, penalties and interest that were canceled by the Korea Supreme Court, which amount is net of $0.1 million of the impairment charge previously recorded in the fourth quarter of 2021. LGE Korean Withholding Tax Matter On October 16, 2017, we received a letter from LG Electronics Inc. (“LGE”) requesting that we reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following an investigation where the tax authority determined that LGE failed to withhold on LGE’s royalty payments to Immersion Software Ireland from 2012 to 2014. Pursuant to an agreement reached with LGE, on April 8, 2020, we provided a provisional deposit to LGE in the amount of KRW 5,916,845,454 (approximately $5.0 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korea courts. In the second quarter of 2020, we recorded this deposit in Long-term deposits on our Condensed Consolidated Balance Sheets . In the event that we do not ultimately prevail in our appeal in the Korean courts, the deposit included in Long-term deposits would be recorded as additional income tax expense on our Condensed Consolidated Statements of Income and Comprehensive Loss, in the period in which we do not ultimately prevail. On November 3, 2017, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes. 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 our 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. A second hearing occurred on December 19, 2019. A third hearing occurred on February 13, 2020. A fourth hearing occurred on June 9, 2020. A fifth hearing occurred on July 16, 2020. We anticipated a decision to be rendered on or about October 8, 2020, but the Korea Administrative Court scheduled and held a sixth hearing for November 12, 2020. A seventh hearing occurred on January 14, 2021. An eighth hearing occurred on April 8, 2021. A ninth hearing occurred on June 24, 2021. A tenth hearing occurred on September 13, 2021. An eleventh hearing occurred on November 15, 2021. A twelfth hearing occurred on December 23, 2021. The Court had indicated that it expected to render a decision on this matter by the end of February 2022. However, due to a reshuffling of judges, another hearing, which was originally scheduled for April 14, 2022 is currently scheduled for July 7, 2022, at which time we believe we will have a better indication as to when the Court will render a decision on this matter. Based on the developments in these cases, we regularly reassess the likelihood that we will prevail in the claims from the Korean tax authorities with respect to the LGE case. To the extent that we determine that it is more likely than not that we will prevail against the claims from the Korean tax authorities, then no additional tax expense is provided for in our Condensed Consolidated Statements of Income and Comprehensive Income . In the event that we determine that it is more likely than not that we will not prevail against the claims from the Korean tax authorities, or a portion thereof, then we would estimate the anticipated additional tax expense associated with that outcome and record it as additional income tax expense in our C ondensed Consolidated Statements of Income and Comprehensive Income in the period of the new determination. If the additional income tax expense was related to the periods assessed by Korean tax authorities and for which we recorded a Long-term deposits on our Condensed Consolidated Balance Sheets , then the additional income tax expense would be recorded as an impairment to the Long-term deposits . If the additional income tax expense was not related to the periods assessed by Korean tax authorities and for a which we recorded in Long-term deposits on our Condensed Consolidated Balance Sheets , then the additional income tax expense would be accrued as an Other current liabilities . In the event that we do not ultimately prevail in our appeal in the Korean courts with respect to this case, the applicable deposits included in Long-term deposits would be recorded as additional income tax expense on our Condensed Consolidated Statements of Income and Comprehensive Income , in the period in which we do not ultimately prevail. In the fourth quarter of 2021, we recorded an impairment charge of $0.8 million related to the long-term deposits paid to LGE. Immersion Software Ireland Limited v. Marquardt GMBH On August 3, 2021, we filed an arbitration demand with the American Arbitration Association (the “AAA”) against Marquardt GmbH (“Marquardt”), one of our licensees in the automotive market. The arbitration demand arises out of that certain Amended and Restated Patent License Agreement (the “Marquardt License”), effective as of January 1, 2018, between us as licensor and Marquardt, as licensee. Pursuant to the arbitration demand, we are demanding that Marquardt cure its breach of the Marquardt License and pay all royalties currently owed under the Marquardt License. The last royalty report we have received from Marquardt was for the third quarter of calendar year 2020 in which Marquardt reported approximately $0.5 million in royalties but did not pay such royalties. Further, since that date, we have not received any other royalty reports or royalty payments from Marquardt. The term of the Marquardt License expires by its terms on December 31, 2023. As a result of Marquardt’s breach of the Marquardt License, per unit royalties relating to past royalty periods, and applicable interest fees, are currently past due. Pursuant to the terms of the Marquardt License, we requested arbitration by a single arbitrator in Madison County, New York. On August 9, 2021, the AAA confirmed receipt of our arbitration demand dated August 3, 2021. On August 13, 2021, the AAA conducted an administrative conference call to discuss communications, mediation, tribunal appointment, place of arbitration, and other administrative topics. On September 15, 2021, Marquardt filed an answer to our arbitration demand with the AAA, in which Marquardt provided general denials of our claims and asserted a counterclaim for approximately $138,000 in royalties previously paid to us under the Marquardt License. On September 30, 2021, we filed an answer to Marquardt’s counterclaim in which we denied the allegations set forth in Marquardt’s counterclaim. A preliminary hearing occurred on December 6, 2021, during which the parties agreed to explore mediation and the arbitrator set forth a schedule relating to the arbitration. A mediation session occurred during the period of March 14-16, 2022. At the mediation, we entered into a binding settlement term sheet with Marquardt pursuant to which we agreed to cause our arbitration demand to be dismissed. In exchange, Marquardt agreed to the prepayment of certain royalties otherwise payable under the Marquardt License. Additionally on April 4, 2022, we entered into an amendment to the Marquardt License to reflect such payment and other related terms. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options and Awards Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock awards (“RSAs”), restricted stock units (“RSUs”), performance shares, market condition-based performance restricted stock units (“PSUs”), and other stock-based equity awards to employees, officers, directors, and consultants. On January 18, 2022, our stockholders approved the 2021 Equity Incentive Plan (the “2021 Plan"), which provides for a total number of shares reserved and available for grant and issuance equal to 3,525,119 shares plus up to an additional 855,351 shares that are subject to stock options or other awards granted under the 2011 Equity Incentive Plan. Under our equity incentive plans, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. Stock options generally vest over four years and expire seven A summary of our equity incentive program as of March 31, 2022 is as follows (in thousands): Common stock shares available for grant 2,080 Stock options outstanding 212 RSAs outstanding 114 RSUs outstanding 665 PSUs outstanding 641 Time-Based Stock Options The following summarizes activities for the time-based stock options for the three months ended March 31, 2022: Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2021 242 $ 8.04 4.44 $ — Granted — — Exercised — — Canceled or expired (30) 7.27 Outstanding as of March 31, 2022 212 $ 8.14 3.25 $ — Vested and expected to vest at March 31, 2022 212 $ 8.14 3.25 $ — Exercisable at March 31, 2022 148 $ 8.35 2.58 $ — The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the exercise price of our common stock for the options that were in-the-money. We did not grant stock options during the first quarter of 2022. Restricted Stock Units The following summarizes RSU activities for the three months ended March 31, 2022: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Aggregate Outstanding at December 31, 2021 224 $ 6.66 0.56 $ 1,280 Granted 600 4.78 Released (111) 6.80 Forfeited (48) 6.04 Outstanding at March 31, 2022 665 $ 4.97 1.32 $ 3,700 The aggregate intrinsic value is calculated as the market value as of the end of the reporting period. Restricted Stock Awards The following summarizes RSA activities for the three months ended March 31, 2022: Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period Outstanding at December 31, 2021 — $ — 0.00 Granted 114 4.78 Released — — Forfeited — — Outstanding at March 31, 2022 114 $ 4.78 0.12 Market Condition-Based Restricted Stock Units In the first quarter of 2022, we granted 600,000 shares of PSUs to members of our management team. Each PSU represents the right to one share of our common stock with vesting subject to: (a) the achievement of specified levels of the volume weighted average closing prices of our common stock during any one hundred (100) day-period between January 1, 2022 and January 1, 2027, subject to certification by the Compensation Committee (“Performance Milestones”); and (b) continued employment with us through the later of each achievement date or service vesting date, which occurs over a three (3) year period commencing on January 1, 2022. The following summarizes PSU activities for the three months ended March 31, 2022: Number of Market Condition-Based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period Outstanding at December 31, 2021 67 $ 6.20 1.49 Granted 600 3.63 Released (6) $ 6.20 Forfeited (20) $ 6.20 Outstanding at March 31, 2022 641 $ 3.80 1.49 The assumptions used to value market condition based restricted stock units granted during the first quarter of 2022 under our equity incentive program are as follows: Market condition based restricted stock units: Three Months Ended Expected life (in years) 1.2 Volatility 52% Interest rate 1.0% Dividend yield — Employee Stock Purchase Plan Under the 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 our 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-month 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 three months ended March 31, 2022, 7,725 shares were purchased under the ESPP. As of March 31, 2022, 198,123 shares were available for future purchase under the ESPP. Stock-based Compensation Expense Valuation and amortization methods Stock-based compensation is based on the estimated fair value of awards, net of estimated forfeitures, and recognized over the requisite service period. Estimated forfeitures are based on historical experience at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The stock-based compensation related to all of our stock-based awards and ESPP for the years ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended 2022 2021 Stock options $ (43) $ 15 RSUs, RSAs and PSUs 1,187 497 ESPP (3) 19 Total $ 1,141 $ 531 Sales and marketing $ 90 $ 224 Research and development 107 318 General and administrative 944 (11) Total $ 1,141 $ 531 As of March 31, 2022, there was $5.2 million of unrecognized compensation cost adjusted for estimated forfeitures related to non-vested stock options, RSUs, RSAs and PSUs granted to our employees and directors. This unrecognized compensation cost will be recognized over an estimated weighted-average period of approximately 1.7 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Agreement On February 14, 2022, we entered into a Common Stock Repurchase Agreement (the “Agreement”) with Invenomic Capital Management LP. (“Invenomic”). P ursuant to the Agreement, we purchased 904,499 shares of our common stock from Invenomic at $4.725 per share, or an aggregate purchase price of $4.3 million. The closing price of our common stock on February 14, 2022 was $4.80 per share. We adopted a Section 382 Tax Benefits Preservation Plan on November 17, 2021 to diminish the risk we could experience an “ownership change” as defined in Section 382 of the Internal Revenue Code of 1986, as amended, which could substantially limit or permanently eliminate our ability to utilize its net operating loss carryovers to reduce potential future income tax obligations. Under this plan, a person who acquires, without the approval of our Board of Directors, beneficial ownership of 4.99% or more of the outstanding common stock could be subject to significant dilution. Following the repurchase, Invenomic’s holdings dropped to below 4.99% of the outstanding common stock. Stock Repurchase Program On February 23, 2022, our Board of Directors approved a stock repurchase program of up to $30 million of our common stock for a period of up to twelve months. Any stock repurchases may be made through open market and privately negotiated transactions, at such times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. Additionally, the Board authorized the use of any derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions or other similar transactions or any combination of the foregoing transactions. The stock repurchase program was implemented as a method to return value to our stockholders. The timing, pricing and sizes of any repurchases will depend on a number of factors, including the market price of our common stock and general market and economic conditions. The stock repurchase program does not obligate us to repurchase any dollar amount or number of shares, and the program may be suspended or discontinued at any time. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Provision for income taxes the years ended March 31, 2022 and 2021 consisted of the following (in thousands): Three Months Ended 2022 2021 Income before provision for income taxes $ 5,637 $ 2,177 Provision for income taxes 561 141 Effective tax rate 10.0 % 6.5 % Provision for income taxes for the three months ended March 31, 2022 and 2021 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. We continue to maintain a full valuation allowance against all of our federal and state deferred tax assets in the United States as well as federal tax assets in Canada. As of March 31, 2022, we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $6.3 million and applicable interest of $0.1 million. The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $1.3 million. Our 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. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, stock awards and ESPP. The following is a reconciliation of the denominators used in computing basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended 2022 2021 Denominator: Weighted-average shares outstanding, basic 33,996 28,579 Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP 272 601 Weighted average shares outstanding, diluted 34,268 29,180 We include market condition-based performance restricted stock units in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met. For the three months ended March 31, 2022 and 2021, we had stock options, RSUs, PSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands): Three Months Ended 2022 2021 Stock options 239 14 Restricted stock units, restricted stock awards and market condition-based restricted stock units 55 — Total 294 14 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
LEASES | LEASES We lease our office space under lease arrangements with expiration dates on or before March 31, 2024. We recognize lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets . We combine lease and non-lease components for new and reassessed leases. We apply discount rates to operating leases using a portfolio approach. Below is a summary of our ROU assets and lease liabilities (in thousands): Balance Sheets Classification March 31, December 31, Assets Right-of-use assets Other assets $ 861 $ 912 Liabilities Operating lease liabilities - current Other current liabilities 1,065 1,098 Operating lease liabilities - long-term Other long-term liabilities 360 550 Total lease liabilities $ 1,425 $ 1,648 The table below provides supplemental information related to operating leases during the three months ended March 31, 2022 and 2021 (in thousands except for lease term): Three Months Ended 2022 2021 Cash paid within operating cash flow $ 355 $ 367 Weighted average lease terms (in years) 1.11 2.20 Weighted average discount rates 3.93 % N/A On January 31, 2022, we entered into an agreement to lease for a 1,390 square feet of office space in Aventura, Florida (“Aventura Lease”). We plan to use this facility for administrative functions. This lease commenced in the first quarter of 2022 and expires in the first quarter of 2024. We accounted for this lease as an operating lease in accordance with the provisions of ASC 842 Leases (“ASC 842”). In the first quarter of 2022, we recorded a lease liability of $0.1 million, which represents the present value of the lease payments using an estimated incremental borrowing rate of 3.93%. We also recognized right-to-use asset ("ROU") of $0.1 million which represents our right to use an underlying asset for the lease term. On March 12, 2020, we entered into a sublease agreement with Neato Robotics, Inc. (“Neato”) for the SJ Facility. This sublease commenced in June 2020 and ends on April 30, 2023 which is the lease termination date of the original SJ Facility lease. In accordance with provisions of ASC 842, we treated the sublease as a separate lease as we were not relieved of the primary obligation under the original lease. We continue to account for the original SJ Facility, as a lessee, in the same manner as prior to the commencement date of the sublease. We accounted for the sublease as a lessor of the lease. We classified the sublease as an operating lease as it did not meet the criteria of a Sale-Type or Direct Financing lease. At the commencement date of the sublease, we recognized initial direct costs of $0.3 million. These deferred costs will be amortized over the term of the sublease payments. As of March 31, 2022, unamortized balance of the deferred costs are not material. We recognize operating lease expense and lease payments from the sublease, on a straight-line basis, in our Condensed Consolidated Statements of Income and Comprehensive Income over the lease terms. During the three months ended March 31, 2022 and 2021, our net operating lease expenses are as follows (in thousands): Three Months Ended 2022 2021 Operating lease cost $ 210 $ 215 Sublease income (257) (257) Total lease cost $ (47) $ (42) Minimum future lease payments obligations as of March 31, 2022 are as follows (in thousands): For the Years Ending December 31, 2022 $ 914 2023 521 2024 40 Total $ 1,475 Future lease payments from our sublease agreement as of March 31, 2022 are as follows (in thousands): For the Years Ending December 31, 2022 $ 812 2023 351 Total $ 1,163 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue | The following table presents the disaggregation of our revenue for the three months ended March 31, 2022 and 2021 (in thousands): For the Three Months Ended 2022 2021 Fixed fee license revenue $ 1,745 $ 1,275 Per-unit royalty revenue 5,485 5,793 Total royalty and license revenue 7,230 7,068 Development, services, and other revenue 78 91 Total revenues $ 7,308 $ 7,159 |
INVESTMENTS AND FAIR VALUE ME_2
INVESTMENTS AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of short-term investments | Marketable securities as of March 31, 2022 and December 31, 2021 consisted of following (in thousands): March 31, 2022 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 40,023 $ — $ (1,601) $ 38,422 Corporate bonds 10,651 530 — 11,181 Equity securities 43,039 3,038 (967) 45,110 $ 93,713 $ 3,568 $ (2,568) $ 94,713 December 31, 2021 Cost or Amortized Cost Unrealized Gains Unrealized Losses Fair Value Mutual funds $ 50,000 $ — $ (338) $ 49,662 Corporate bonds 6,996 290 — 7,286 Equity securities 38,100 — (1,331) 36,769 $ 95,096 $ 290 $ (1,669) $ 93,717 |
Marketable Securities | As of March 31, 2022 and December 31, 2021, marketable securities are classified and reported on our Condensed Consolidated Balance Sheets as follows: March 31, 2022 Marketable Equity Securities Marketable Debt Securities Total Mutual funds $ 38,422 $ — $ 38,422 Equity securities 45,110 — 45,110 Corporate bonds — 11,181 11,181 $ 83,532 $ 11,181 $ 94,713 December 31, 2021 Marketable Equity Securities Marketable Debt Securities Total Mutual funds $ 49,662 $ — $ 49,662 Equity securities 36,769 — 36,769 Corporate bonds — 7,286 7,286 $ 86,431 $ 7,286 $ 93,717 |
Debt Securities, Available-for-sale | The amortized costs and fair value of our marketable debt securities, by contractual maturity, as of March 31, 2022 (in thousands) are as follows: March 31, 2022 Amortized Fair Less than 1 year $ — $ — 1 to 5 years 10,651 11,181 Total $ 10,651 $ 11,181 |
Derivatives Not Designated as Hedging Instruments | These derivative instruments are reported as Other current liabilities on our Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 2021 (in thousands). March 31, 2022 Cost Unrealized Losses Fair Value Derivative instruments $ 8,392 $ 2,558 $ 10,950 $ 8,392 $ 2,558 $ 10,950 December 31, 2021 Cost Unrealized Gains Fair Value Derivative instruments $ 6,370 $ (103) $ 6,267 $ 6,370 $ (103) $ 6,267 |
Realized and Unrealized Gains and Losses From Our Equity Securities and Derivative Instruments | A summary of realized and unrealized gains and losses from our equity securities and derivative instruments are as follows (in thousands): Three Months Ended 2022 2021 Net unrealized gains recognized on marketable equity securities $ 2,140 $ — Net realized gains recognized on marketable equity securities 1,026 — Net unrealized losses recognized on derivative instruments (2,661) — Net realized loss recognized on derivative instruments (134) — Net realized gains recognized on marketable debt securities 368 — Total net gains recognized in interest and other income (loss), net $ 739 $ — |
Schedule of financial instruments measured at fair value on recurring basis | Financial instruments measured at fair value on a recurring basis as of March 31, 2022 and December 2021 are classified based on the valuation technique in the table below (in thousands): March 31, 2022 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Mutual funds $ 38,422 $ — $ — $ 38,422 Equity securities 45,110 — — 45,110 Corporate bonds — 11,181 — 11,181 Total assets at fair value $ 83,532 $ 11,181 $ — $ 94,713 Liabilities Derivative instruments $ — $ 10,950 $ — $ 10,950 Total liabilities at fair value $ — $ 10,950 $ — $ 10,950 December 31, 2021 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Mutual funds $ 49,662 $ — $ — 49,662 Equity securities 36,769 — — 36,769 Corporate bonds — 7,286 — 7,286 Total assets at fair value $ 86,431 $ 7,286 $ — $ 93,717 Liabilities Derivative instruments $ — $ 6,267 $ — $ 6,267 Total liabilities at fair value $ — $ 6,267 $ — $ 6,267 |
BALANCE SHEET DETAILS (Tables)
BALANCE SHEET DETAILS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of accounts and other receivables | Accounts and other receivables were as follows (in thousands): March 31 December 31 Trade accounts receivables $ 1,118 $ 1,235 Other receivables 961 735 Accounts and other receivables $ 2,079 $ 1,970 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets were as follows (in thousands): March 31 December 31 Prepaid expenses $ 701 $ 798 Contract assets - current 10,906 12,448 Other current assets 181 186 Prepaid expenses and other current assets $ 11,788 $ 13,432 |
Schedule of other assets, net | Other assets, net are as follows (in thousands): March 31 December 31 Contract assets - long-term $ 1,014 $ 1,746 Lease right-of-use assets 861 912 Deferred tax assets 2,116 2,115 Other assets 10 36 Total other assets, net $ 4,001 $ 4,809 |
Schedule of other current assets | Other current liabilities are as follows (in thousands): March 31 December 31 Derivative instruments $ 10,950 $ 6,267 Lease liabilities - current 1,065 1,098 Other current liabilities 3,940 3,882 Total other current liabilities $ 15,955 $ 11,247 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Summary of equity incentive program | A summary of our equity incentive program as of March 31, 2022 is as follows (in thousands): Common stock shares available for grant 2,080 Stock options outstanding 212 RSAs outstanding 114 RSUs outstanding 665 PSUs outstanding 641 |
Summary of time-based stock options | The following summarizes activities for the time-based stock options for the three months ended March 31, 2022: Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2021 242 $ 8.04 4.44 $ — Granted — — Exercised — — Canceled or expired (30) 7.27 Outstanding as of March 31, 2022 212 $ 8.14 3.25 $ — Vested and expected to vest at March 31, 2022 212 $ 8.14 3.25 $ — Exercisable at March 31, 2022 148 $ 8.35 2.58 $ — |
Summary of restricted stock units activities | The following summarizes RSU activities for the three months ended March 31, 2022: Number of Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Aggregate Outstanding at December 31, 2021 224 $ 6.66 0.56 $ 1,280 Granted 600 4.78 Released (111) 6.80 Forfeited (48) 6.04 Outstanding at March 31, 2022 665 $ 4.97 1.32 $ 3,700 |
Summary of restricted stock awards activities | The following summarizes RSA activities for the three months ended March 31, 2022: Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period Outstanding at December 31, 2021 — $ — 0.00 Granted 114 4.78 Released — — Forfeited — — Outstanding at March 31, 2022 114 $ 4.78 0.12 |
Share-based Payment Arrangement, Outstanding Award, Activity, Excluding Option | The following summarizes PSU activities for the three months ended March 31, 2022: Number of Market Condition-Based Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Weighted Average Remaining Recognition Period Outstanding at December 31, 2021 67 $ 6.20 1.49 Granted 600 3.63 Released (6) $ 6.20 Forfeited (20) $ 6.20 Outstanding at March 31, 2022 641 $ 3.80 1.49 The assumptions used to value market condition based restricted stock units granted during the first quarter of 2022 under our equity incentive program are as follows: Market condition based restricted stock units: Three Months Ended Expected life (in years) 1.2 Volatility 52% Interest rate 1.0% Dividend yield — |
Summary of stock-based compensation expenses | The stock-based compensation related to all of our stock-based awards and ESPP for the years ended March 31, 2022 and 2021 is as follows (in thousands): Three Months Ended 2022 2021 Stock options $ (43) $ 15 RSUs, RSAs and PSUs 1,187 497 ESPP (3) 19 Total $ 1,141 $ 531 Sales and marketing $ 90 $ 224 Research and development 107 318 General and administrative 944 (11) Total $ 1,141 $ 531 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provisions | Provision for income taxes the years ended March 31, 2022 and 2021 consisted of the following (in thousands): Three Months Ended 2022 2021 Income before provision for income taxes $ 5,637 $ 2,177 Provision for income taxes 561 141 Effective tax rate 10.0 % 6.5 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation used in computing basic and diluted net income per share | Three Months Ended 2022 2021 Denominator: Weighted-average shares outstanding, basic 33,996 28,579 Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP 272 601 Weighted average shares outstanding, diluted 34,268 29,180 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | These outstanding securities consisted of the following (in thousands): Three Months Ended 2022 2021 Stock options 239 14 Restricted stock units, restricted stock awards and market condition-based restricted stock units 55 — Total 294 14 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of ROU assets and lease liabilities | Below is a summary of our ROU assets and lease liabilities (in thousands): Balance Sheets Classification March 31, December 31, Assets Right-of-use assets Other assets $ 861 $ 912 Liabilities Operating lease liabilities - current Other current liabilities 1,065 1,098 Operating lease liabilities - long-term Other long-term liabilities 360 550 Total lease liabilities $ 1,425 $ 1,648 |
Schedule of supplemental information related to operating leases and expenses | The table below provides supplemental information related to operating leases during the three months ended March 31, 2022 and 2021 (in thousands except for lease term): Three Months Ended 2022 2021 Cash paid within operating cash flow $ 355 $ 367 Weighted average lease terms (in years) 1.11 2.20 Weighted average discount rates 3.93 % N/A Three Months Ended 2022 2021 Operating lease cost $ 210 $ 215 Sublease income (257) (257) Total lease cost $ (47) $ (42) |
Schedule of minimum future lease payment obligations | Minimum future lease payments obligations as of March 31, 2022 are as follows (in thousands): For the Years Ending December 31, 2022 $ 914 2023 521 2024 40 Total $ 1,475 |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | Future lease payments from our sublease agreement as of March 31, 2022 are as follows (in thousands): For the Years Ending December 31, 2022 $ 812 2023 351 Total $ 1,163 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Product Information [Line Items] | |
Government Subsidy Recognized | $ 0.1 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 7,308 | $ 7,159 |
Royalty and license | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 7,230 | 7,068 |
Fixed fee license revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,745 | 1,275 |
Per-unit royalty revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,485 | 5,793 |
Development, services, and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 78 | $ 91 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Royalty revenue, adjustment | $ 300 | $ 500 | |
Contract assets - current | 10,906 | $ 12,448 | |
Contract assets - long-term | 1,014 | $ 1,746 | |
Increase (decrease) in contract with customer, asset | $ (2,300) |
REVENUE RECOGNITION - Performan
REVENUE RECOGNITION - Performance Obligation (Details) - Adjustment for Fixed Fee License Revenue $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 13 |
Revenue, remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 7.2 |
Revenue, remaining performance obligation, period | 3 years |
Performance Obligation B | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 20.2 |
Revenue, remaining performance obligation, period |
INVESTMENTS AND FAIR VALUE ME_3
INVESTMENTS AND FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | |||
Investments in debt securities | $ 11,181 | ||
Corporate Bond Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Investments in debt securities | $ 11,181 | $ 7,286 | |
Debt securities, available-for-sale, term | 1 year |
INVESTMENTS AND FAIR VALUE ME_4
INVESTMENTS AND FAIR VALUE MEASUREMENTS - AMORTIZED COST (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | $ 93,713 | $ 95,096 |
Unrealized Gains | 3,568 | 290 |
Unrealized Losses | (2,568) | (1,669) |
Fair Value | 94,713 | 93,717 |
Mutual Fund | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 40,023 | 50,000 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (1,601) | (338) |
Fair Value | 38,422 | 49,662 |
Equity Securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 43,039 | 38,100 |
Unrealized Gains | 3,038 | 0 |
Unrealized Losses | (967) | (1,331) |
Fair Value | 45,110 | 36,769 |
Corporate Bond Securities | ||
Debt and Equity Securities, FV-NI | ||
Cost or Amortized Cost | 10,651 | 6,996 |
Unrealized Gains | 530 | 290 |
Unrealized Losses | 0 | 0 |
Fair Value | $ 11,181 | $ 7,286 |
INVESTMENTS AND FAIR VALUE ME_5
INVESTMENTS AND FAIR VALUE MEASUREMENTS - MARKETABLE SECURITIES ON BS (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt and Equity Securities, FV-NI | ||
Corporate bonds | $ 11,181 | |
Other assets, net | 4,001 | $ 4,809 |
Total assets at fair value | 94,713 | 93,717 |
Mutual Fund | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 38,422 | 49,662 |
Equity Securities | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 45,110 | 36,769 |
Corporate Bond Securities | ||
Debt and Equity Securities, FV-NI | ||
Corporate bonds | 11,181 | 7,286 |
Marketable Securities | ||
Debt and Equity Securities, FV-NI | ||
Marketable equity securities | 83,532 | 86,431 |
Marketable Securities | Mutual Fund | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 38,422 | 49,662 |
Marketable Securities | Equity Securities | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 45,110 | 36,769 |
Marketable Securities | Corporate Bond Securities | ||
Debt and Equity Securities, FV-NI | ||
Corporate bonds | 0 | 0 |
Other Current Assets | ||
Debt and Equity Securities, FV-NI | ||
Other assets, net | 11,181 | 7,286 |
Other Current Assets | Mutual Fund | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 0 | 0 |
Other Current Assets | Equity Securities | ||
Debt and Equity Securities, FV-NI | ||
Equity securities and mutual funds | 0 | 0 |
Other Current Assets | Corporate Bond Securities | ||
Debt and Equity Securities, FV-NI | ||
Corporate bonds | $ 11,181 | $ 7,286 |
INVESTMENTS AND FAIR VALUE ME_6
INVESTMENTS AND FAIR VALUE MEASUREMENTS - AMORTIZED COST AND FAIR VALUE BY MATURITY (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Amortized Cost | |
Less than 1 year | $ 0 |
1 to 5 years | 10,651 |
Total | 10,651 |
Fair Value | |
Less than 1 year | 0 |
1 to 5 years | 11,181 |
Debt securities, fair value | $ 11,181 |
INVESTMENTS AND FAIR VALUE ME_7
INVESTMENTS AND FAIR VALUE MEASUREMENTS - DERIVATIVE INSTRUMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Cost | $ 8,392 | $ 6,370 |
Unrealized Gains | 2,558 | (103) |
Derivative instruments | 10,950 | 6,267 |
Total financial liability, cost | 8,392 | 6,370 |
Unrealized Gains | 2,558 | (103) |
Total liabilities at fair value | $ 10,950 | $ 6,267 |
INVESTMENTS AND FAIR VALUE ME_8
INVESTMENTS AND FAIR VALUE MEASUREMENTS - REALIZED AND UNREALIZED GAINS AND LOSSES EQUITY AND DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net unrealized gains recognized on marketable equity securities | $ 2,140 | $ 0 |
Net realized gains recognized on marketable equity securities | 1,026 | 0 |
Net unrealized losses recognized on derivative instruments | (2,661) | 0 |
Net realized loss recognized on derivative instruments | (134) | 0 |
Realized gains on investment in marketable debt securities | 368 | 0 |
Total net gains recognized in interest and other income (loss), net | $ 739 | $ 0 |
INVESTMENTS AND FAIR VALUE ME_9
INVESTMENTS AND FAIR VALUE MEASUREMENTS - FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON RECURRING BASIS (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | $ 11,181 | |
Total assets at fair value | 94,713 | $ 93,717 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 10,950 | 6,267 |
Total liabilities at fair value | 10,950 | 6,267 |
Mutual Fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 38,422 | 49,662 |
Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 45,110 | 36,769 |
Corporate Bond Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | 11,181 | 7,286 |
Fair value, measurements, recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets at fair value | 94,713 | 93,717 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 10,950 | 6,267 |
Total liabilities at fair value | 10,950 | 6,267 |
Fair value, measurements, recurring | Mutual Fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 38,422 | 49,662 |
Fair value, measurements, recurring | Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 45,110 | 36,769 |
Fair value, measurements, recurring | Corporate Bond Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | 11,181 | 7,286 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets at fair value | 83,532 | 86,431 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 1 | Mutual Fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 38,422 | 49,662 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 1 | Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 45,110 | 36,769 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 1 | Corporate Bond Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets at fair value | 11,181 | 7,286 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 10,950 | 6,267 |
Total liabilities at fair value | 10,950 | 6,267 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 2 | Mutual Fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 2 | Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 2 | Corporate Bond Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | 11,181 | 7,286 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total assets at fair value | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Derivative instruments | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 3 | Mutual Fund | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 3 | Equity Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Equity securities and mutual funds | 0 | 0 |
Fair value, measurements, recurring | Fair Value, Inputs, Level 3 | Corporate Bond Securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Corporate bonds | $ 0 | $ 0 |
BALANCE SHEET DETAILS - Account
BALANCE SHEET DETAILS - Accounts and Other Receivables (Detail) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade accounts receivables | $ 1,118 | $ 1,235 |
Other Receivables, Net, Current | 961 | 735 |
Accounts and other receivables | $ 2,079 | $ 1,970 |
BALANCE SHEET DETAILS - Prepaid
BALANCE SHEET DETAILS - Prepaid Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Prepaid expenses | $ 701 | $ 798 |
Contract assets - current | 10,906 | 12,448 |
Other current assets | 181 | 186 |
Prepaid expenses and other current assets | $ 11,788 | $ 13,432 |
BALANCE SHEET DETAILS - Other A
BALANCE SHEET DETAILS - Other Assets, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Assets, Net [Abstract] | ||
Contract assets - long-term | $ 1,014 | $ 1,746 |
Lease right-of-use assets | 861 | 912 |
Deferred tax assets | 2,116 | 2,115 |
Other assets | 10 | 36 |
Total other assets, net | $ 4,001 | $ 4,809 |
BALANCE SHEET DETAILS - Other C
BALANCE SHEET DETAILS - Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities, Current [Abstract] | ||
Derivative instruments | $ 10,950 | $ 6,267 |
Lease liabilities - current | 1,065 | 1,098 |
Other current liabilities | 3,940 | 3,882 |
Total other current liabilities | $ 15,955 | $ 11,247 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Oct. 01, 2021KRW (₩) | Oct. 01, 2021USD ($) | Sep. 15, 2021USD ($) | Apr. 08, 2020KRW (₩) | Apr. 08, 2020USD ($) | Mar. 27, 2019KRW (₩) | Mar. 27, 2019USD ($) | Mar. 31, 2022KRW (₩) | Mar. 31, 2022USD ($) | Mar. 31, 2022KRW (₩) | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Oct. 01, 2021USD ($) | Jun. 30, 2021USD ($) |
LGE | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Asset impairment charges | $ 800,000 | |||||||||||||
Long-term deposits | ₩ 5,916,845,454 | $ 5,000,000 | ||||||||||||
Marquardt | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Accrued Royalties | $ 500,000 | |||||||||||||
Loss Contingency, Damages Sought, Value | $ 138,000 | |||||||||||||
Samsung | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Asset impairment charges | $ 1,300,000 | 1,400,000 | ||||||||||||
Reimbursed penalties | ₩ 6,088,855,388 | $ 5,000,000 | ||||||||||||
Unrecognized tax benefits, income tax penalties accrued | $ 100,000 | |||||||||||||
Samsung | Pending Litigation | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Reimbursed penalties | ₩ 608,885,000 | $ 500,000 | ||||||||||||
Samsung | Withholding taxes on royalty payments | ||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||
Withholding Taxes and Penalties Cancelled | ₩ 6,186,218,586 | $ 5,200,000 | ||||||||||||
Withholding Taxes And Penalties, Upheld | ₩ 1,655,105,584 | $ 1,400,000 | ||||||||||||
Loss contingency, estimate of possible loss | ₩ 7,841,324,165 | $ 6,900,000 | ||||||||||||
Litigation settlement | $ 871,454 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) | Jan. 18, 2022shares | Mar. 31, 2022USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of available shares consumed for each restricted stock and restricted stock units issued | 1.75 | |
Shares purchased under the ESPP (in shares) | 7,725 | |
Unrecognized compensation cost | $ | $ 5,200,000 | |
Unrecognized compensation cost, recognized over an estimated weighted-average period | 1 year 8 months 12 days | |
2021 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 3,525,119 | |
Increase in number of common shares reserved for issuance (in shares) | 855,351 | |
Stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period | 4 years | |
Stock options | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award expiration period | 7 years | |
RSAs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period | 1 year | |
Granted (in shares) | 114,000 | |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based payment award vesting period | 3 years | |
Granted (in shares) | 600,000 | |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,000,000 | |
Percentage of fair market value on the purchase date | 85.00% | |
Maximum number of shares per employee (in shares) | 2,000 | |
Maximum value of shares per employee | $ | $ 25,000 | |
Shares available for purchase (in shares) | 198,123 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Equity Incentive Program (Details) - shares shares in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for grant (in shares) | 2,080 | |
Time-based stock options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Standard and market condition-based stock options outstanding (in shares) | 212 | 242 |
RSAs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 114 | 0 |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 665 | 224 |
Market Performance Based Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive shares outstanding (in shares) | 641 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Time-based Stock Options (Details) - Time-based stock options - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Number of Shares Underlying Stock Options | |||
Beginning outstanding balance (in shares) | 242 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | 0 | ||
Canceled or expired (in shares) | (30) | ||
Ending outstanding balance (in shares) | 212 | ||
Number of shares underlying stock options, vested and expected to vest (in shares) | 212 | ||
Number of shares underlying stock options, exercisable (in shares) | 148 | ||
Weighted Average Exercise Price Per Share | |||
Beginning outstanding balance (in dollars per share) | $ 8.04 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 0 | ||
Canceled or expired (in dollars per share) | 7.27 | ||
Ending outstanding balance (in dollars per share) | 8.14 | ||
Weighted average exercise price, vested and expected to vest (in dollars per share) | 8.14 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 8.35 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual life, outstanding | 3 years 3 months | 4 years 5 months 8 days | |
Weighted average remaining contractual life, vested and expected to vest | 3 years 3 months | ||
Weighted average remaining contractual life, exercisable | 2 years 6 months 29 days | ||
Aggregate intrinsic value, outstanding | $ 0 | $ 0 | |
Aggregate intrinsic value, vested and expected to vest | 0 | ||
Aggregate intrinsic value, exercisable | $ 0 |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Restricted Stock Units and Restricted Stock Awards (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
RSUs outstanding | |||
Number of Restricted Stock Units / Awards | |||
Beginning outstanding balance (in shares) | 224 | ||
Granted (in shares) | 600 | ||
Released (in shares) | (111) | ||
Forfeited (in shares) | (48) | ||
Ending outstanding balance (in shares) | 665 | ||
Weighted Average Grant Date Fair Value | |||
Beginning outstanding balance (in dollars per share) | $ 6.66 | ||
Granted (in dollars per share) | 4.78 | ||
Released (in dollars per share) | 6.80 | ||
Forfeited (in dollars per share) | 6.04 | ||
Ending outstanding balance (in dollars per share) | $ 4.97 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual life / recognition period, outstanding | 1 year 3 months 25 days | 6 months 21 days | |
Aggregate intrinsic value, outstanding | $ 3,700 | $ 1,280 | |
RSAs outstanding | |||
Number of Restricted Stock Units / Awards | |||
Beginning outstanding balance (in shares) | 0 | ||
Granted (in shares) | 114 | ||
Released (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Ending outstanding balance (in shares) | 114 | ||
Weighted Average Grant Date Fair Value | |||
Beginning outstanding balance (in dollars per share) | $ 0 | ||
Granted (in dollars per share) | 4.78 | ||
Released (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Ending outstanding balance (in dollars per share) | $ 4.78 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual life / recognition period, outstanding | 1 month 13 days | 0 years |
STOCK-BASED COMPENSATION - PSU
STOCK-BASED COMPENSATION - PSU Activity (Details) - Performance Shares - $ / shares shares in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Incentive shares outstanding (in shares) | 641 | 67 | |
Granted (in shares) | 600 | ||
Released (in shares) | (6) | ||
Forfeited (in shares) | (20) | ||
Ending outstanding balance (in shares) | 641 | ||
Weighted Average Grant Date Fair Value | |||
Beginning outstanding balance (in dollars per share) | $ 3.80 | $ 6.20 | |
Granted (in dollars per share) | 3.63 | ||
Released (in dollars per share) | 6.20 | ||
Forfeited (in dollars per share) | 6.20 | ||
Ending outstanding balance (in dollars per share) | $ 3.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Additional Disclosures [Abstract] | |||
Weighted average remaining contractual life / recognition period, outstanding | 1 year 5 months 26 days | 1 year 5 months 26 days |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | $ 1,141 | $ 531 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | 90 | 224 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | 107 | 318 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | 944 | (11) |
Stock options | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | (43) | 15 |
RSUs and RSAs | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | 1,187 | 497 |
Employee stock purchase plan | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Share-based compensation, total | $ (3) | $ 19 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Detail) - Market Performance Based Restricted Stock Units | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 1 year 2 months 12 days |
Volatility | 52.00% |
Interest rate | 1.00% |
Dividend yield | 0.00% |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Detail) - USD ($) | Feb. 14, 2022 | Mar. 31, 2022 | Feb. 23, 2022 |
Class of Stock [Line Items] | |||
Stock repurchase program, authorized amount | $ 30,000,000 | ||
Repurchase of stock (in shares) | 34,282 | ||
Treasury Stock, Retired, Cost Method, Amount | $ 200,000 | ||
Stock repurchase program, average cost (in dollars per share) | $ 4.89 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 29,800,000 | ||
Invenomic Capital Management LP | |||
Class of Stock [Line Items] | |||
Ownership interest | 4.99% | ||
Invenomic Capital Management LP | |||
Class of Stock [Line Items] | |||
Stock repurchase program, average cost (in dollars per share) | $ 4.725 | ||
Stock repurchased during period, value | $ 4,300,000 | ||
Closing price of common stock (price per share) | $ 4.80 | ||
Treasury stock, common (in shares) | 904,499 | ||
Treasury Stock | |||
Class of Stock [Line Items] | |||
Repurchase of stock (in shares) | 938,781 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income Tax Provisions (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income before provision for income taxes | $ 5,637 | $ 2,177 |
Provision for income taxes | $ 561 | $ 141 |
Effective tax rate | 10.00% | 6.50% |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) | Mar. 31, 2022USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 6,300,000 |
Unrecognized tax benefits, interest on income taxes accrued | 100,000 |
Total amount of unrecognized tax benefits | 1,300,000 |
Deferred tax assets, net | 2,100,000 |
Deferred tax liabilities, gross | 300,000 |
Deferred tax assets, valuation allowance | $ 27,300,000 |
NET INCOME PER SHARE - Reconcil
NET INCOME PER SHARE - Reconciliation used in Computing Basic and Diluted Net Income (Loss) per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Weighted-average common stock outstanding, basic (in shares) | 33,996 | 28,579 |
Stock options, RSU's, RSAs and ESPP (in shares) | 272 | 601 |
Shares used in computation of diluted net income (loss) per share (in shares) | 34,268 | 29,180 |
NET INCOME PER SHARE - Narrativ
NET INCOME PER SHARE - Narrative (Detail) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase shares of common stock (in shares) | 294 | 14 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase shares of common stock (in shares) | 239 | 14 |
RSUs and RSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase shares of common stock (in shares) | 55 | 0 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022USD ($) | Jan. 31, 2022USD ($)ft² | Dec. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating lease liabilities | $ 1,425 | $ 1,648 | |
Operating lease, borrowing rate | 3.93% | ||
Right-of-use assets | $ 861 | $ 912 | |
Sublease, initial direct costs | 300 | ||
Aventura Florida Facility | |||
Lessee, Lease, Description [Line Items] | |||
Area | ft² | 1,390 | ||
Operating lease liabilities | $ 100 | ||
Operating lease, borrowing rate | 3.93% | ||
Right-of-use assets | $ 100 |
LEASES - Summary of Right of Us
LEASES - Summary of Right of Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease, right-of-use asset | $ 861 | $ 912 |
Liabilities | ||
Operating lease liabilities - current | 1,065 | 1,098 |
Operating lease liabilities - long-term | 360 | 550 |
Total lease liabilities | $ 1,425 | $ 1,648 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets, net | Other assets, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Information Related To Operating Leases and Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 355 | $ 367 | |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 1 month 9 days | 2 years 2 months 12 days | |
Operating lease, borrowing rate | 3.93% | ||
Operating lease cost | $ 210 | 215 | |
Sublease income | (257) | (257) | |
Total lease cost | $ (47) | $ (42) |
LEASES - Schedule of Minimum Fu
LEASES - Schedule of Minimum Future Lease Payment Obligations (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2022 | $ 914 |
2022 | 521 |
2023 | 40 |
Total | $ 1,475 |
LEASES - Future Minimum Subleas
LEASES - Future Minimum Sublease Payments 840 (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 812 |
2023 | 351 |
Total | $ 1,163 |