ZAGG (ZAGG) 10-Q 4 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ZAGG Inc
Entity Central Index Key	1,296,205
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,663,686

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 14,957	$ 9,461
Accounts receivable, net of allowances of $888 in 2015 and $1,910 in 2014	53,071	75,729
Inventories	45,352	48,378
Prepaid expenses and other current assets	3,162	2,681
Deferred income tax assets	10,774	10,774
Total current assets	127,316	147,023
Property and equipment, net of accumulated depreciation at $9,737 in 2015 and $7,659 in 2014	6,987	7,300
Intangible assets, net of accumulated amortization at $39,720 in 2015 and $33,242 in 2014	24,930	31,408
Deferred income tax assets	$ 15,203	14,290
Note receivable		801
Other assets	$ 1,502	457
Total assets	175,938	201,279
Current liabilities
Accounts payable	37,681	49,379
Income taxes payable	76	6,464
Accrued liabilities	5,280	6,910
Accrued wages and wage related expenses	2,176	2,600
Deferred revenue	21	179
Sales returns liability	5,176	8,674
Total current liabilities	50,410	74,206
Total liabilities	50,410	74,206
Stockholders' equity
Common stock, $0.001 par value; 100,000 shares authorized; 33,117 and 32,686 shares issued in 2015 and 2014, respectively	33	33
Additional paid-in capital	87,549	85,154
Accumulated other comprehensive loss	$ (1,232)	(895)
Note receivable collateralized by stock		(348)
Treasury stock, 5,535 and 3,569 common shares in 2015 and 2014 respectively, at cost	$ (34,158)	(19,576)
Retained earnings	73,336	62,705
Total stockholders' equity	125,528	127,073
Total liabilities and stockholders' equity	$ 175,938	$ 201,279

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Balance Sheets [Abstract]
Allowances for doubtful accounts	$ 888	$ 1,910
Accumulated depreciation on property and equipment	9,737	7,659
Accumulated amortization on Intangible assets	$ 39,720	$ 33,242
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	33,117	32,686
Treasury stock	5,535	3,569

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Operations [Abstract]
Net sales	$ 66,774	$ 60,013	$ 190,679	$ 159,170
Cost of sales	41,903	50,849	117,894	115,441
Gross profit	24,871	9,164	72,785	43,729
Operating expenses:
Advertising and marketing	2,759	1,377	7,450	4,763
Selling, general and administrative	13,750	11,971	41,014	34,776
Amortization of definite-lived intangibles	2,134	2,427	6,403	7,282
Total operating expenses	18,643	15,775	54,867	46,821
Income (loss) from operations	6,228	(6,611)	17,918	(3,092)
Other income (expense):
Interest expense	(26)	(40)	(79)	(124)
Other income and (expense)	(76)	90	(53)	204
Total other income (expense)	(102)	50	(132)	80
Income (loss) before provision for income taxes	6,126	(6,561)	17,786	(3,012)
Income tax (provision) benefit	(2,387)	2,242	(7,155)	473
Net income (loss)	$ 3,739	$ (4,319)	$ 10,631	$ (2,539)
Earnings (loss) per share:
Basic earnings (loss) per share	$ 0.13	$ (0.14)	$ 0.36	$ (0.08)
Diluted earnings (loss) per share	$ 0.13	$ (0.14)	$ 0.36	$ (0.08)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 3,739	$ (4,319)	$ 10,631	$ (2,539)
Other comprehensive income (loss), net of tax:
Foreign currency translation gain (loss)	156	(628)	(337)	(750)
Total other comprehensive income (loss)	156	(628)	(337)	(750)
Comprehensive income (loss)	$ 3,895	$ (4,947)	$ 10,294	$ (3,289)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income (loss)	$ 10,631	$ (2,539)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	2,708	1,644
Excess tax benefits related to share-based payments	(199)	(8)
Depreciation and amortization	9,551	$ 9,169
Reversal of reserve on note receivable	(639)
Deferred income taxes	(913)	$ (549)
Amortization of deferred loan costs	49	48
Changes in operating assets and liabilities
Accounts receivable, net	22,476	(8,725)
Inventories	2,730	9,079
Prepaid expenses and other current assets	(563)	(986)
Other assets	60	120
Accounts payable	(11,919)	16,996
Income taxes payable	(6,189)	(12,518)
Accrued liabilities	(1,431)	2,633
Accrued wages and wage related expenses	(424)	896
Deferred revenue	(158)	(116)
Sales return liability	(3,494)	(458)
Net cash provided by operating activities	22,276	14,686
Cash flows from investing activities
Purchase of property and equipment	(3,009)	(3,122)
Net cash used in investing activities	(3,009)	(3,122)
Cash flows from financing activities
Proceeds from revolving credit facility	9,871	15,660
Payments on revolving credit facility	(9,871)	(32,390)
Purchase of treasury stock	(13,331)	$ (2,488)
Payment of withholdings on restricted stock units	(718)
Proceeds from exercise of warrants and options	206	$ 199
Excess tax benefits related to share-based payments	199	8
Net cash used in financing activities	(13,644)	(19,011)
Effect of foreign currency exchange rates on cash and cash equivalents	(127)	(480)
Net increase (decrease) in cash and cash equivalents	5,496	(7,927)
Cash and cash equivalents at beginning of the period	9,461	15,031
Cash and cash equivalents at end of the period	14,957	7,104
Supplemental disclosure of cash flow information
Cash paid during the period for interest	37	94
Cash paid during the period for taxes	14,171	$ 12,554
Supplemental schedule of noncash investing and financing activities
Foreclosure on real property	1,099
Foreclosure on common stock	688
Purchase of fixed assets financed through accounts payable	763
Purchase of treasury stock financed through accounts payable	$ 563

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Nature of Operations and Basis of Presentation [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	(1) NATURE OF OPERATIONS AND BASIS OF PRESENTATION ZAGG Inc and its subsidiaries (“ZAGG” or the “Company”) design, produce, and distribute professional and premium creative product solutions such as InvisibleShield ® ® The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position, the results of operations, and cash flows of the Company for the periods presented. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2014 Annual Report on Form 10-K. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The condensed consolidated financial statements include the accounts of ZAGG Inc and its wholly owned subsidiaries ZAGG International Distribution Limited (“ZAGG International”); Patriot Corporation; ZAGG Intellectual Property Holding Co, Inc. (“ZAGG IP”); ZAGG Retail, Inc.; and iFrogz, Inc. All intercompany transactions and balances have been eliminated in consolidation. Significant Accounting Policies There have been no significant changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled to in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB voted to approve a one year deferral of the effective date of this ASU. This deferral was issued by the FASB in ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date”. As a result of ASU No. 2015-14 the Company expects that it will apply the new revenue standard to annual and interim reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The ASU states that a reporting entity should apply existing guidance in Topic 718, “Compensation – Stock Compensation” , In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used with existing auditing standards. The ASU applies to all entities for the first annual period ending after December 15, 2016, and interim periods thereafter. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis”, to improve targeted areas of the consolidation guidance and reduce the number of consolidation models. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This ASU is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This ASU provides guidance to entities that measure inventory using a method other than last-in, first-out (LIFO) or the retail inventory method. For entities using first-in, first-out (FIFO) or average cost, the measurement principle for their inventory changes from the lower of cost or market to lower of cost and net realizable value. Current U.S. GAAP requires, at each financial statement date, that entities measure inventory at the lower of cost or market. The measurement of market is commonly the current replacement cost. However, entities also need to consider net realizable value and net realizable value less an approximately normal profit margin in their measurement. For entities using a method other than LIFO or the retail inventory method, the ASU replaces market with net realizable value. This ASU requires prospective adoption for inventory measurement for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In August 2015 the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU adds SEC paragraphs to Subtopic 835-30 pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit (LOC) arrangements. Specifically, the ASU states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the LOC arrangement, regardless of whether there are outstanding borrowings under that LOC arrangement. This ASU is effective on adoption of ASU 2015-03 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
INVENTORIES	(2) INVENTORIES At September 30, 2015, and December 31, 2014, inventories consisted of the following: September 30, 2015 December 31, Finished goods $ 44,978 $ 48,145 Raw materials 374 233 Total inventory $ 45,352 $ 48,378 In addition, included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at September 30, 2015 and December 31, 2014 of $1,402 and $1,425, respectively.

Intangible Assets

Intangible Assets	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
INTANGIBLE ASSETS	(3) INTANGIBLE ASSETS Definite-lived intangibles as of September 30, 2015, and December 31, 2014, were as follows: As of September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ (27,822 ) $ 13,678 8.0 years Non-compete agreements 4,100 (3,534 ) 566 4.8 years Other Trademarks 3,500 (2,507 ) 993 9.7 years iFrogz Trademark 7,038 (2,015 ) 5,023 10.0 years EarPollution Trademark 2,383 (1,329 ) 1,054 8.0 years Other 600 (583 ) 17 5.0 years Acquired technology 709 (343 ) 366 7.0 years Internet address 124 (87 ) 37 10.0 years Patents 4,696 (1,500 ) 3,196 12.5-14.0 years Total amortizable assets $ 64,650 $ (39,720 ) $ 24,930 8.4 years As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ (23,839 ) $ 17,661 8.0 years Non-compete agreements 4,100 (2,949 ) 1,151 4.8 years Other Trademarks 3,500 (2,216 ) 1,284 9.7 years iFrogz Trademark 7,038 (1,152 ) 5,886 10.0 years EarPollution Trademark 2,383 (1,026 ) 1,357 8.0 years Other 600 (554 ) 46 5.0 years Acquired technology 709 (267 ) 442 7.0 years Internet address 124 (78 ) 46 10.0 years Patents 4,696 (1,161 ) 3,535 12.5-14.0 years Total amortizable assets $ 64,650 $ (33,242 ) $ 31,408 8.4 years Customer relationships, trademarks, and other intangibles are amortized on an accelerated basis consistent with their expected future cash flows over their estimated useful life, which results in accelerated amortization. The remaining definite-lived intangible assets are amortized using the straight line method over their estimated useful life. For the three and nine months ended September 30, 2015, amortization expense was $2,160 and $6,478, respectively. Amortization expense was primarily recorded as a component of operating expense. However, amortization expense related to acquired technology for the three and nine months ended September 30, 2015, of $26 and $75, respectively, was recorded as a component of cost of sales. For the three and nine months ended September 30, 2014, amortization expense was $2,447 and $7,347, respectively. Amortization expense related to acquired technology for the three and nine months ended September 30, 2014, of $20 and $65, respectively, was recorded as a component of cost of sales. Estimated future amortization expense is as follows: Remaining 2015 $ 2,082 2016 7,125 2017 5,649 2018 4,626 2019 2,290 Thereafter 3,158 Total estimated amortization expense $ 24,930

Debt and Letters of Credit

Debt and Letters of Credit	9 Months Ended
	Sep. 30, 2015
Debt and Letters of Credit [Abstract]
DEBT AND LETTERS OF CREDIT	(4) DEBT AND LETTERS OF CREDIT On December 23, 2014, the Company and Wells Fargo Bank, National Association (“Wells Fargo”), entered into the Third Amendment to Credit Agreement (“Third Amendment”), which modified the original Credit Agreement (the “Credit Agreement”) entered into between the Company and Wells Fargo on December 7, 2012 and all subsequent amendments to the Credit Agreement (First Amendment to the Credit Agreement entered into on December 20, 2013 and Second Amendment to the Credit Agreement entered into on November 4, 2014). The Third Amendment provided a $25,000 line of credit and extended the maturity date from December 1, 2015 to December 1, 2016. The line of credit available under the Credit Agreement includes a letter of credit sub-feature that allows the Company to issue standby commercial letters of credit against the line of credit, not to exceed at any time an aggregate of $5,000. During the three and nine months ending September 30, 2015 and 2014, the Company did not issue any standby commercial letters of credit. On August 24, 2015, the Company and Wells Fargo, entered into the Fourth Amendment to Credit Agreement (“Fourth Amendment”), which modified the original Credit Agreement entered into between the Company and Wells Fargo on December 7, 2012 and all subsequent amendments to the Credit Agreement. The Fourth Amendment modified a debt covenant to allow the Company to purchase up to $15.0 million of ZAGG Inc common stock during each calendar year, including the 2015 calendar year, rather than during consecutive twelve month periods, as was documented in the Credit Agreement prior to the Fourth Amendment. Any outstanding principal balance under the line of credit bears interest at a fluctuating rate per annum determined to be the sum of the (1) LIBOR margin established under the Credit Agreement (with the initial LIBOR margin being set at 1.25%) and (2) Daily Three Month LIBOR (as defined in the Credit Agreement) in effect from time to time. Each change in the rate of interest will become effective on each business day on which a change in daily three month LIBOR is announced by Wells Fargo. In addition, the Company pays Wells Fargo a quarterly fee based on the average unused amount of the line of credit depending on the Company’s leverage ratio (as this term is defined in the Credit Agreement). For the three and nine months ended September 30, 2015, $10 and $28, respectively, in unused line fees were incurred and are included as a component of interest expense in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2014, $23 and $67, respectively, in unused line fees were incurred and are included as a component of interest expense in the condensed consolidated statements of operations. The Company originally incurred and capitalized $238 of direct costs related to the establishment of the Credit Agreement. The Company amortizes deferred loan costs under the straight-line method. The carrying value of deferred loan costs at September 30, 2015 and December 31, 2014, was $11 and $60, respectively, and is included as a component of noncurrent other assets in the condensed consolidated balance sheets. For the three and nine months ended September 30, 2015, the Company amortized $16 and $49, respectively, of the deferred loan costs, which are included as a component of interest expense in the condensed consolidated statements of operations. For the three and nine months ended September 30, 2014, the Company amortized $17 and $49, respectively, of these loan costs, which are included as a component of interest expense in the condensed consolidated statements of operations. The Company is also subject to a number of financial and non-financial debt covenants under the Credit Agreement. At September 30, 2015, the Company was in compliance with all covenants associated with the Credit Agreement. Payment in full under the Credit Agreement is due on December 1, 2016. At September 30, 2015 and 2014, the balance outstanding on the line of credit was zero.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	(5) STOCK-BASED COMPENSATION Common Stock Options For the three and nine months ended September 30, 2015 and 2014, the Company granted no stock option awards. The Company recorded share-based compensation expense only for those options that are expected to vest. The estimated fair value of the stock options is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. During the three and nine months ended September 30, 2015, the Company recorded stock-based compensation expense related to stock options of $0 as all stock option awards that have been granted are vested. During the three and nine months ended September 30, 2014, the Company recorded stock-based compensation expense related to stock options of $0 and $28, respectively, which is included as a component of selling, general, and administrative expense. Restricted Stock During the three and nine months ended September 30, 2015, the Company granted 24 and 569 shares of restricted stock, respectively. During the three and nine months ended September 30, 2014, the Company granted 36 and 507 shares of restricted stock, respectively. The shares of restricted stock granted during the three and nine months ended September 30, 2015, were estimated to have a weighted-average fair value per share of $8.24 and $6.58, respectively. The shares of restricted stock granted during the three and nine months ended September 30, 2014, were estimated to have a weighted-average fair value per share of $5.75 and $4.68, respectively. The fair value of the shares of restricted stock granted is based on the closing share price of the Company’s common stock on the date of grant. The shares of restricted stock vest annually over a 12-month to three-year vesting term, depending on the terms of the individual grant. As part of the 569 and 507 shares of restricted stock granted as discussed above, during the first nine months of 2015 and 2014, the Company granted 289 and 113 shares of restricted stock, respectively, to certain executives of the Company. These shares of restricted stock granted in 2015 and 2014 only vest upon the Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, and earnings per share for fiscal year 2015 and 2014, respectively. If the Company achieves the target amount of net sales, Adjusted EBTIDA, and earnings per share for the applicable performance period, all of the shares of restricted stock granted will vest under the terms of the respective grants. If the Company achieves less than 100% of the targets for the applicable performance period, but above a predetermined floor, the number of shares of restricted stock vested will decrease proportionately. However, if the Company’s performance for the applicable performance period is below the predetermined floor, all of the shares of restricted stock granted will be forfeited. If the Company achieves more than 100% of the target for the applicable performance period, the number of shares of restricted stock vested will increase proportionately up to, but will not exceed, 115% of the target 289 and 113 shares of restricted stock granted for 2015 and 2014, respectively. As of September 30, 2015, the Company believes it is probable that it will achieve 100% of the targets for the shares of restricted stock granted in the first nine months of 2015. Of the 113 shares of restricted stock granted in 2014, 81 shares vested and 32 shares were forfeited. As part of the 569 shares of restricted stock granted during the first nine months of 2015, the Company granted 213 shares of restricted stock to its chief executive officer. These restricted stock units only vest upon the following performance conditions being met for the year 2015: (1) the Company’s achievement of a gross profit margin equal to or in excess of 31.9%, (2) the Company’s achievement of certain cost savings initiatives within cost of sales specified by the compensation committee of the board of directors, and (3) the chief executive officer’s continued employment. As of September 30, 2015, the Company believes it is probable that the performance conditions will be met and that the restricted stock units granted will vest. The Company recorded stock-based compensation expense only for those shares of restricted stock that are expected to vest. The estimated fair value of the restricted stock is recognized on a straight-line basis over the requisite service period of the award, which is generally the vesting term of the award. During the three and nine months ended September 30, 2015, the Company recorded stock-based compensation expense related to restricted stock of $898 and $2,708, respectively, which is included as a component of selling, general, and administrative expense. During the three and nine months ended September 30, 2014, the Company recorded stock-based compensation expense related to restricted stock of $506 and $1,644, respectively, which is included as a component of selling, general, and administrative expense. During the nine months ended September 30, 2015, certain ZAGG employees elected to receive a net amount of shares upon the vesting of a restricted stock unit grant in exchange for the Company paying the employees’ tax liabilities for the fair value of the award on the vesting date. This resulted in the Company paying $718, which is reflected as a reduction of additional paid-in capital. During the nine months ended September 30, 2014, a ZAGG employee elected to receive a net amount of shares upon the vesting of restricted stock unit grants in exchange for the Company incurring the tax liability for the fair value of the award on the vesting date. This resulted in the Company recording $33 in compensation expense, with the offset being originally recorded to accrued wages and wage related expenses rather than to additional paid-in capital. During the nine months ended September 30, 2015, the Company incurred incremental expense related to the departure of its former chief financial officer. Expenses incurred during the period include separation pay of $117 related to the acceleration of vesting on 15 restricted stock units that were previously scheduled to vest during the first quarter of 2016.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax [Abstract]
INCOME TAXES	(6) INCOME TAXES During the three and nine months ended September 30, 2015, the Company’s effective tax rate was 39% and 40%, respectively. During the three and nine months ended September 30, 2014, the Company’s effective tax rate was 34% and 16%, respectively. The increase in the effective tax rate is attributable to return-to-provision true-ups and the adjustment to deferred taxes for a change in our state effective rate in the prior year, and the increased impact of a loss in a foreign tax jurisdiction due to lower net income/(loss) during the three and nine months ended September 30,2014. The Company’s effective tax rate will generally differ from the U.S. Federal Statutory rate of 35%, due to foreign and state taxes, permanent items, and the Company’s global tax strategy.

Earnings Per (Loss) Share

Earnings Per (Loss) Share	9 Months Ended
	Sep. 30, 2015
Earnings (Loss) Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	(7) EARNINGS (LOSS) PER SHARE Basic earnings per common share excludes dilution and is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share reflects the potential dilution that could occur if stock options and restricted stock, or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method. The following is a reconciliation of the numerator and denominator used to calculate basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2015 and 2014: Three months ended September 30, 2015 September 30, 2014 Net income (loss) $ 3,739 $ (4,319 ) Weighted average shares outstanding: Basic 28,734 30,312 Dilutive effect of warrants, restricted stock and stock options 196 0 Diluted 28,930 30,312 Earnings (loss) per share: Basic $ 0.13 $ (0.14 ) Dilutive $ 0.13 $ (0.14 ) Nine months ended September 30, 2015 September 30, 2014 Net income (loss) $ 10,631 $ (2,539 ) Weighted average shares outstanding: Basic 29,209 30,379 Dilutive effect of warrants, restricted stock and stock options 242 0 Diluted 29,451 30,379 Earnings (loss) per share: Basic $ 0.36 $ (0.08 ) Dilutive $ 0.36 $ (0.08 ) For the three months ended September 30, 2015, warrants, restricted stock, and stock options to purchase 443 shares of common stock For the nine months ended September 30, 2015, warrants, restricted stock, and stock options to purchase 328 shares of common stock, As the Company was in a net loss position for three and nine months ended September 30, 2014, all warrants, restricted stock, and stock options . For the three and nine months ended September 30, 2014, the number of antidilutive equity awards totaled 870 and 836, respectively.

Treasury Stock

Treasury Stock	9 Months Ended
	Sep. 30, 2015
Treasury Stock [Abstract]
TREASURY STOCK	(8) TREASURY STOCK In fiscal year 2015 and 2014, the Company’s board of directors authorized the repurchase of up to $15,000 and $10,000, respectively, of the Company’s outstanding common stock. The Company’s board of directors also authorized the Company to enter into a Rule 10b5-1 plan when appropriate. For the three and nine months ended September 30, 2015 the Company purchased 1,844 and 1,886, respectively, shares of ZAGG Inc common stock for consideration of $13,570 and $13,894, respectively, which included commissions paid to brokers of $55 and $56, respectively. Stock purchased in the three and nine months ended September 30, 2015 had a weighted average price per share of $7.32 and $7.33, respectively. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheets. In addition, during the third quarter of 2015, the Company foreclosed on 80 shares of ZAGG Inc common stock linked to the full recourse note receivable described in Note 9. The Company foreclosed on these shares at a price per share of $8.59 and a total value of $688. These shares are currently being held by the Company as treasury stock. For the three and nine months ended September 30, 2014 the Company purchased zero and 556 shares, respectively, of ZAGG Inc common stock. Cash consideration paid for the purchase of ZAGG Inc common stock for the nine months ended September 30, 2014 was $2,488. Cash consideration for the nine months ended September 30, 2014 included commissions paid to brokers of $16. Stock purchased during the nine months ended September 30, 2014 had a weighted average price per share of $4.45. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheets.

Note Receivable

Note Receivable	9 Months Ended
	Sep. 30, 2015
Note Receivable [Abstract]
NOTE RECEIVABLE	(9) NOTE RECEIVABLE In June 2008, Lorence Harmer became a member of the Company’s board of directors and in December 2009, was appointed as the chairman of the audit committee. Mr. Harmer introduced the Company to a consumer electronics product, which became known as the ZAGGbox. The Company subsequently entered into negotiations with Teleportall, LLC (“Teleportall”), the owner of the technology used in the ZAGGbox, regarding production and distribution of the ZAGGbox. In 2009 and 2010 the Company entered into various agreements with Teleportal, including agreements appointing the Company as the exclusive distributor for the ZAGGbox in North America, issued purchase orders for ZAGGbox units in the aggregate amount of $3,500 and advanced to Teleportall a total of $3,900 against the total purchase price for the units ordered by the Company. Additionally, in May 2010, the Company entered into an agreement with Harmer Holdings, LLC (“Holdings”), an affiliate of Mr. Harmer, under which Holdings agreed to repurchase unsold ZAGGboxes under certain circumstances. In late 2010 the Company determined that the ZAGGbox product would not be ready to market and sell during the 2010 Christmas season and the Company commenced discussions to restructure its agreements with Teleportall. As a result of the foregoing, the Company entered into an agreement with Teleportall, Mr. Harmer and several entities owned or controlled by Mr. Harmer (the “Harmer Agreement”), dated March 23, 2011, but subject to further negotiations and ratification through April 5, 2011. Pursuant to the Harmer Agreement, the parties agreed to terminate the prior agreements and convey all ZAGG rights in the ZAGGbox to Teleportall on the following terms: ● Mr. Harmer, Teleportall, and certain of their affiliates delivered a promissory note (the “Note”) dated March 23, 2011, to the Company in the original principal amount of $4,126 which accrued interest at the rate of LIBOR plus 4% per annum (adjusted quarterly) payable as follows: (i) interest only payments (a) on September 23, 2011, and (b) thereafter on or before the last day of each calendar quarter, (ii) 50% of the net profits of each ZAGGbox sale by Teleportall and its affiliates, and (iii) the unpaid balance of principal and interest due in full on March 23, 2013. The Note was secured by certain real property, interests in entities that own real property and restricted and free-trading securities. ● In exchange for a license fee to the Company, Teleportall and the Company entered into a License Agreement on under which the Company licensed to Teleportall the use of certain ZAGG names and trademarks to sell and distribute the ZAGGbox product. ● In exchange for commissions to be paid by the Company, Teleportall and ZAGG entered into a non-exclusive, two year Commission Agreement on March 23, 2011, under which Teleportall could make introductions of many ZAGG products in all countries where ZAGG did not then have exclusive dealing agreements in respect of the marketing, distribution or sale of its products. No revenue has been recognized from Teleportall. The Note was originally accounted for under the cost recovery method and was originally included in the consolidated balance sheet at $3,900 which was the value of the ZAGGbox inventory advances. The original face value of the Note of $4,126 was for reimbursement of the inventory advances and other costs associated with the ZAGGbox and approximated fair value at March 23, 2011, as the variable interest rate on the Note approximated market rates. On September 20, 2011, and prior to the due date of the first interest-only payment due on the Note, Mr. Harmer and two of his affiliates, Holdings and Teleportall, filed a lawsuit in Utah state court (the “Court”) against the Company, Robert G. Pedersen, II (ZAGG’s former CEO), Brandon T. O’Brien (ZAGG’s former CFO) and KPMG LLP (ZAGG’s independent registered public accounting firm). KPMG LLP and Messrs. Pedersen and O’Brien were subsequently dismissed from the lawsuit. In their lawsuit, the plaintiffs allege that the defendants defamed Mr. Harmer, breached the Harmer Agreement and interfered with other rights of the plaintiffs. Mr. Harmer failed to make the required interest-only payment to the Company due on September 23, 2011. Thereafter, the Company filed counterclaims against Mr. Harmer, Holdings and Teleportall to collect the balance due under the Note. Also, ZAGG commenced foreclosure on the collateral securing the Note, which consisted of real property, interests in entities that own real property, and restricted and free-trading securities, which included shares of ZAGG Inc common stock. On May 21, 2015, the Court issued a final judgment whereby all claims brought by Harmer were disposed of in favor of ZAGG and dismissed with prejudice. In addition, the Court granted summary judgment in favor of ZAGG on all counterclaims against Harmer, Holdings and Teleportall and ZAGG was awarded judgment in the amount of $4,735 with interest at 12% per annum until paid in full and reasonable attorney fees. Following the final judgment the Company began the foreclosure process on all remaining collateral securing the Note. On June 29, 2015, the Company foreclosed on certain real property securing the Note. The certain real property was valued by an independent appraiser and determined to have a current fair value of $1,099. In conjunction with the foreclosure, the Company reclassified $801 of the Note receivable previously collateralized by the foreclosed real property and included in other assets, and $298 of the Note receivable collateralized by ZAGG Inc stock, as a $1,099 asset held for sale and presented it as a component of other assets in the condensed consolidated balance sheets. After this reclassification, the remaining balance of the Note receivable is $50. On July 13, 2015, the Company foreclosed on 80 shares of ZAGG Inc common stock that were determined by the Company to have a fair value of $688 on the date of foreclosure. At the time of the foreclosure, the Note receivable balance totaled $50 and was reduced to $0. The $638 excess in value of the common stock over the book value of the Note receivable was recorded by the Company as a recovery of a previously established reserve in selling, general and administrative expense in the condensed consolidated financial statements, which is the same financial statement line item in which the Company previously recorded write-downs of the Note receivable. As of September 30, 2015, management determined that the estimated fair value of the remaining underlying collateral was between $135 and $270, consisting of real property investments. Since the Note became collateral dependent in October 2011, management has (1) foreclosed on and sold 45 shares of ZAGG Inc common stock for $496 (December 2011); (2) foreclosed on real property valued at $250 (January 2012); (3) foreclosed on stock and warrants in a private company of $516 (May 2012); (4) foreclosed on real property valued at $1,099 as discussed above; and (5) foreclosed on 80 shares of ZAGG Inc common stock for $688. These foreclosures were recorded as a reduction to the Note in the period in which the foreclosure occurred. Management continues to actively pursue the foreclosure of all remaining collateral and execution on other assets of Harmer, Holdings and Teleportall. At September 30, 2015, the total unpaid principal balance, including accrued interest, late fees and costs incurred in collection, totaled $4,742.

Fair Value Measures

Fair Value Measures	9 Months Ended
	Sep. 30, 2015
Fair Value Measures [Abstract]
FAIR VALUE MEASURES	(10) FAIR VALUE MEASURES Fair Value of Financial Instruments At September 30, 2015 and December 31, 2014, the Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, and a note receivable. The carrying amounts of cash and cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturities of these financial instruments. Fair Value Measurements The Company measures at fair value certain financial and non-financial assets by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets or liabilities; Level 2 — Significant other observable inputs (e.g., quoted prices for similar items in active markets, quoted prices for identical or similar items in markets that are not active, inputs other than quoted prices that are observable such as interest rate and yield curves, and market-corroborated inputs); and Level 3 — Unobservable inputs in which there is little or no market data, which require the reporting unit to develop its own assumptions. At September 30, 2015, and December 31, 2014, the following assets and liabilities were measured at fair value on a recurring basis using the level of inputs shown: Fair Value Measurements Using: September 30, Level 1 Inputs Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 375 $ 375 — — Fair Value Measurements Using: December 31, Level 1 Inputs Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 374 $ 374 — —

Concentrations

Concentrations	9 Months Ended
	Sep. 30, 2015
Concentrations [Abstract]
CONCENTRATIONS	(11) CONCENTRATIONS Concentration of credit risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and accounts receivable. The Company places its cash with high credit quality financial institutions. The Company maintains its cash in bank deposit accounts, which, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts through September At September 30, 2015, three customers had accounts receivable balances of approximately 25%, 23%, and 12%. No other customer account balances were more than 10% of accounts receivable. At December 31, 2014, two customers had accounts receivable balances of approximately 48% and 14%. No other customer account balances were more than 10% of accounts receivable. If one or more of the Company’s significant customers were to become insolvent or were otherwise unable to pay for the products provided, it would have a material adverse effect on the Company’s financial condition and results of operations. Concentration of supplier The Company’s logistics partners arrange for production of its raw materials related to the InvisibleShield film products primarily from one source. Management is aware of similar raw materials that would be available from other sources if required and has current plans to immediately engage such resources if necessary. A change in supplier, however, could cause a delay in manufacturing and a possible loss of sales, which could adversely affect operating results. Concentration of sales For the three months ended September 30, 2015, three customers individually accounted for over 10% of the revenues at 18%, 17%, and 12%, respectively. No other customers accounted for more than 10% of sales. For the three months ended September 30, 2014, two customers individually accounted for over 10% of the revenues at 32% and 14%, respectively. No other customers accounted for more than 10% of sales. If the Company loses one or more of its significant customers, it would have a material adverse effect on the Company’s financial condition and results of operations. The percentage of sales by geographic region for the three months ended September 30, 2015 and 2014, was approximately: Three months ended September 30, 2015 Three months ended September 30, United States 89 % 91 % Europe 9 % 6 % Other 2 % 3 % For the nine months ended September 30, 2015, three customers individually accounted for over 10% of the revenues at 20%, 13%, and 12%, respectively. No other customers accounted for more than 10% of sales. For the nine months ended September 30, 2014, two customers individually accounted for over 10% of the revenues at 28% and 15%, respectively. No other customers accounted for more than 10% of sales. If the Company loses one or more of its significant customers, it would have a material adverse effect on the Company’s financial condition and results of operations. The percentage of sales by geographic region for the nine months ended September 30, 2015 and 2014, was approximately: Nine months ended September 30, Nine months ended September 30, United States 91 % 89 % Europe 8 % 8 % Other 1 % 3 %

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	(12) COMMITMENTS AND CONTINGENCIES Operating leases The Company leases office and warehouse space, office equipment, and mall cart locations under operating leases that expire through 2018. Future minimum rental payments required under the operating leases at September 30, 2015 are as follows: Remaining 2015 $ 282 2016 538 2017 161 2018 6 Total $ 987 On December 5, 2014, the Company entered into a lease agreement for new office space in an under construction building located at 7200 South Bingham Junction Boulevard in Murray, Utah. The Company is expecting to rent the fourth and fifth floors of the building, which will become the new corporate office location. It is expected that the Company will begin constructing leasehold improvements during the fourth quarter of 2015 and move into the office space when the leasehold construction is complete. The initial lease term is for 90 months and straight line monthly rent is expected to be approximately $110, though the final rent will be determined based on the final rentable square feet. The lease term and monthly payments will not commence until the Company occupies the office space. For the three months ended September 30, 2015 and 2014, rent expense was $391 and $275, respectively, net of sublease income of $0 and $334, respectively. For the nine months ended September 30, 2015 and 2014, rent expense was $1,182 and $1,243, respectively, net of sublease income of $0 and $682, respectively. Commercial Litigation Lorence A. Harmer, et al v ZAGG Inc et al, Third Judicial District Court, Salt Lake County, State of Utah, Civil No. 110917687 Patent/Trademark Litigation ZAGG Intellectual Property Holding Co. Inc. v. NLU Products et al, U.S. District Court, District of Utah, 2:11-cv-00517 ZAGG v. TrekStor, Regional Court, Dusseldorf, Germany. ZAGG Intellectual Property Holding Co v. Tech21 et al., U.S. District Court, District of Utah, 2:14-cv-00113-BCW ZAGG Intellectual Property Holding Co v. Superior Communications, Inc., U.S. District Court, District of Utah 2:14-cv-00121-TS Class Action Lawsuits James H. Apple, et al. v. ZAGG Inc, et al., U.S. District Court, District of Utah, 2:12-cv-00852; Ryan Draayer, et al. v. Zagg Inc, et al., U.S. District Court, District of Utah, 2:12-cv-00859 . Arthur Morganstern v. Robert G. Pedersen II et al., Third Judicial District Court, Salt Lake County, State of Utah, Civil No. 120908452 Albert Pikk v. Robert G. Pedersen II et al., U.S. District Court, District of Utah, Case No. 2:12-cv-1188 Rosenberg v. Robert G. Pedersen II et al., U.S. District Court, District of Utah, Case No. 2:12-cv-1216 Pikk Rosenberg In re ZAGG Inc. Shareholder Derivative Litigation SEC Investigation In the fourth quarter of 2012, the Company received requests to provide documentation and information to the staff of the SEC in connection with a non-public investigation being conducted by the SEC’s Salt Lake City office. The Company believes the investigation includes a review of the facts and circumstances surrounding some of the same issues raised by the plaintiffs in the above lawsuits; specifically, whether the Company failed to disclose Mr. Pedersen’s margin account sales or the alleged existence of a plan to have Mr. Hales succeed Mr. Pedersen as the Company’s CEO. The Company responded to these requests and is cooperating fully with the staff. The Company has chosen to disclose this non-public investigation due to the highly public nature of the lawsuits described above, which the Company intends to defend vigorously. Other Litigation The Company is not a party to any other material litigation or claims at this time. While the Company currently believes that the amount of any ultimate potential loss for known matters would not be material to the Company’s financial condition, the outcome of these actions is inherently difficult to predict. In the event of an adverse outcome, the ultimate potential loss could have a material adverse effect on the Company’s financial condition or results of operations in a particular period. The Company establishes reserves when a particular contingency is probable and estimable. Other than those discussed above, the Company has not accrued for any loss at September 30, 2015 in the condensed consolidated financial statements as the Company does not consider a loss to be probable or estimable. The Company faces contingencies that are reasonably possible to occur; however, the reasonably possible exposure to losses cannot currently be estimated.

Nature of Operations and Basi19

Nature of Operations and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Nature of Operations and Basis of Presentation [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This ASU includes a five-step process by which entities will recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which an entity expects to be entitled to in exchange for those goods or services. The standard also will require enhanced disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015, the FASB voted to approve a one year deferral of the effective date of this ASU. This deferral was issued by the FASB in ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date”. As a result of ASU No. 2015-14 the Company expects that it will apply the new revenue standard to annual and interim reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The ASU states that a reporting entity should apply existing guidance in Topic 718, “Compensation – Stock Compensation” , In August 2014, the FASB issued ASU No. 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU describes how an entity should assess its ability to meet obligations and sets disclosure requirements for how this information should be disclosed in the financial statements. The standard provides accounting guidance that will be used with existing auditing standards. The ASU applies to all entities for the first annual period ending after December 15, 2016, and interim periods thereafter. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Amendments to the Consolidation Analysis”, to improve targeted areas of the consolidation guidance and reduce the number of consolidation models. The new consolidation standard changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (VIE), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This ASU is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, “Interest – Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” This ASU requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The ASU is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. This ASU is not expected to have a significant impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory.” This ASU provides guidance to entities that measure inventory using a method other than last-in, first-out (LIFO) or the retail inventory method. For entities using first-in, first-out (FIFO) or average cost, the measurement principle for their inventory changes from the lower of cost or market to lower of cost and net realizable value. Current U.S. GAAP requires, at each financial statement date, that entities measure inventory at the lower of cost or market. The measurement of market is commonly the current replacement cost. However, entities also need to consider net realizable value and net realizable value less an approximately normal profit margin in their measurement. For entities using a method other than LIFO or the retail inventory method, the ASU replaces market with net realizable value. This ASU requires prospective adoption for inventory measurement for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In August 2015 the FASB issued ASU No. 2015-15, “Interest – Imputation of Interest (Subtopic 835-30) – Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” This ASU adds SEC paragraphs to Subtopic 835-30 pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force (EITF) meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit (LOC) arrangements. Specifically, the ASU states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing deferred debt issuance costs ratably over the term of the LOC arrangement, regardless of whether there are outstanding borrowings under that LOC arrangement. This ASU is effective on adoption of ASU 2015-03 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventories [Abstract]
Summary of inventories	September 30, 2015 December 31, Finished goods $ 44,978 $ 48,145 Raw materials 374 233 Total inventory $ 45,352 $ 48,378

Intangible Assets (Tables)

Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Intangible Assets [Abstract]
Schedule of definite-lived intangibles	As of September 30, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ (27,822 ) $ 13,678 8.0 years Non-compete agreements 4,100 (3,534 ) 566 4.8 years Other Trademarks 3,500 (2,507 ) 993 9.7 years iFrogz Trademark 7,038 (2,015 ) 5,023 10.0 years EarPollution Trademark 2,383 (1,329 ) 1,054 8.0 years Other 600 (583 ) 17 5.0 years Acquired technology 709 (343 ) 366 7.0 years Internet address 124 (87 ) 37 10.0 years Patents 4,696 (1,500 ) 3,196 12.5-14.0 years Total amortizable assets $ 64,650 $ (39,720 ) $ 24,930 8.4 years As of December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ (23,839 ) $ 17,661 8.0 years Non-compete agreements 4,100 (2,949 ) 1,151 4.8 years Other Trademarks 3,500 (2,216 ) 1,284 9.7 years iFrogz Trademark 7,038 (1,152 ) 5,886 10.0 years EarPollution Trademark 2,383 (1,026 ) 1,357 8.0 years Other 600 (554 ) 46 5.0 years Acquired technology 709 (267 ) 442 7.0 years Internet address 124 (78 ) 46 10.0 years Patents 4,696 (1,161 ) 3,535 12.5-14.0 years Total amortizable assets $ 64,650 $ (33,242 ) $ 31,408 8.4 years
Schedule of estimated future amortization expense	Remaining 2015 $ 2,082 2016 7,125 2017 5,649 2018 4,626 2019 2,290 Thereafter 3,158 Total estimated amortization expense $ 24,930

Earnings Per (Loss) Share (Tabl

Earnings Per (Loss) Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings (Loss) Per Share [Abstract]
Schedule of reconciliation of numerator and denominator used to calculate basic earnings per share and diluted earnings per share	Three months ended September 30, 2015 September 30, 2014 Net income (loss) $ 3,739 $ (4,319 ) Weighted average shares outstanding: Basic 28,734 30,312 Dilutive effect of warrants, restricted stock and stock options 196 0 Diluted 28,930 30,312 Earnings (loss) per share: Basic $ 0.13 $ (0.14 ) Dilutive $ 0.13 $ (0.14 ) Nine months ended September 30, 2015 September 30, 2014 Net income (loss) $ 10,631 $ (2,539 ) Weighted average shares outstanding: Basic 29,209 30,379 Dilutive effect of warrants, restricted stock and stock options 242 0 Diluted 29,451 30,379 Earnings (loss) per share: Basic $ 0.36 $ (0.08 ) Dilutive $ 0.36 $ (0.08 )

Fair Value Measures (Tables)

Fair Value Measures (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measures [Abstract]
Schedule of assets and liabilities measured at fair value on recurring basis	Fair Value Measurements Using: September 30, Level 1 Inputs Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 375 $ 375 — — Fair Value Measurements Using: December 31, Level 1 Inputs Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 374 $ 374 — —

Concentrations (Tables)

Concentrations (Tables)	9 Months Ended
	Sep. 30, 2015
Concentrations [Abstract]
Schedule of percentage of sales by geographic region	Three months ended September 30, 2015 Three months ended September 30, United States 89 % 91 % Europe 9 % 6 % Other 2 % 3 % Nine months ended September 30, Nine months ended September 30, United States 91 % 89 % Europe 8 % 8 % Other 1 % 3 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Schedule of future minimum rental payments	Remaining 2015 $ 282 2016 538 2017 161 2018 6 Total $ 987

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Finished goods	$ 44,978	$ 48,145
Raw materials	374	233
Total inventory	$ 45,352	$ 48,378

Inventories (Detail Textuals)

Inventories (Detail Textuals) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventories [Abstract]
Inventory deposits with third-party manufacturers	$ 1,402	$ 1,425

Intangible Assets (Details)

Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 64,650	$ 64,650
Accumulated Amortization	(39,720)	(33,242)
Total	$ 24,930	$ 31,408
Weighted Average Amortization Period	8 years 4 months 24 days	8 years 4 months 24 days
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 41,500	$ 41,500
Accumulated Amortization	(27,822)	(23,839)
Total	$ 13,678	$ 17,661
Weighted Average Amortization Period	8 years	8 years
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,100	$ 4,100
Accumulated Amortization	(3,534)	(2,949)
Total	$ 566	$ 1,151
Weighted Average Amortization Period	4 years 9 months 18 days	4 years 9 months 18 days
Other Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 3,500	$ 3,500
Accumulated Amortization	(2,507)	(2,216)
Total	$ 993	$ 1,284
Weighted Average Amortization Period	9 years 8 months 12 days	9 years 8 months 12 days
iFrogz Trademark [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 7,038	$ 7,038
Accumulated Amortization	(2,015)	(1,152)
Total	$ 5,023	$ 5,886
Weighted Average Amortization Period	10 years	10 years
EarPollution Trademark [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,383	$ 2,383
Accumulated Amortization	(1,329)	(1,026)
Total	$ 1,054	$ 1,357
Weighted Average Amortization Period	8 years	8 years
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 600	$ 600
Accumulated Amortization	(583)	(554)
Total	$ 17	$ 46
Weighted Average Amortization Period	5 years	5 years
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 709	$ 709
Accumulated Amortization	(343)	(267)
Total	$ 366	$ 442
Weighted Average Amortization Period	7 years	7 years
Internet address [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 124	$ 124
Accumulated Amortization	(87)	(78)
Total	$ 37	$ 46
Weighted Average Amortization Period	10 years	10 years
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,696	$ 4,696
Accumulated Amortization	(1,500)	(1,161)
Total	$ 3,196	$ 3,535
Patents [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	12 years 6 months	12 years 6 months
Patents [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Weighted Average Amortization Period	14 years	10 years

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Intangible Assets [Abstract]
Remaining 2,015	$ 2,082
2,016	7,125
2,017	5,649
2,018	4,626
2,019	2,290
Thereafter	3,158
Total	$ 24,930	$ 31,408

Intangible Assets (Detail Textu

Intangible Assets (Detail Textuals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 2,134	$ 2,427	$ 6,403	$ 7,282
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 26	$ 20	$ 75	$ 65

Debt and Letters of Credit (Det

Debt and Letters of Credit (Details) - USD ($) $ in Thousands	Dec. 23, 2014	Aug. 24, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Debt And Letters Of Credit (Textual)
Line of credit facility, outstanding balance			$ 0		$ 0		$ 0
Line of credit maturity date					Dec. 1, 2016
Payment of debt issuance costs					$ 238
Amortization of deferred loan costs			16	$ 17	49	$ 49
Wells Fargo Bank [Member]
Debt And Letters Of Credit (Textual)
Purchase of common stock shares		$ 15,000
Wells Fargo Bank [Member] | Interest Expense [Member]
Debt And Letters Of Credit (Textual)
Unused line fees			10	$ 23	28	$ 67
Wells Fargo Bank [Member] | Other Noncurrent Assets [Member]
Debt And Letters Of Credit (Textual)
Deferred loan costs			$ 11		$ 11		$ 60
Term Loan Facility [Member] | Wells Fargo Bank [Member]
Debt And Letters Of Credit (Textual)
Line of credit facility, maximum borrowing capacity	$ 25,000
Maturity date	December 1, 2015 to December 1, 2016.
Standby commercial letters of credit [Member] | Wells Fargo Bank [Member]
Debt And Letters Of Credit (Textual)
Line of credit facility, maximum borrowing capacity	$ 5,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Detail Textuals) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment of withholdings on restricted stock units			$ 718
Percentage of target on restricted stock granted			100.00%
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock granted	24	36	569	507
Weighted average fair value of restricted stock per share	$ 8.24	$ 5.75	$ 6.58	$ 4.68
Payment of withholdings on restricted stock units			$ 718	$ 33
Restricted stock [Member] | Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock granted			289	113
Number of restricted shares vested				81
Number of restricted shares forfeited				32
Share-based Compensation restricted stock description			If the Company achieves less than 100% of the targets for the applicable performance period, but above a predetermined floor, the number of shares of restricted stock vested will decrease proportionately. However, if the Company's performance for the applicable performance period is below the predetermined floor, all of the shares of restricted stock granted will be forfeited. If the Company achieves more than 100% of the target for the applicable performance period, the number of shares of restricted stock vested will increase proportionately up to, but will not exceed, 115% of the target.
Restricted stock [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock granted			213
Share-based Compensation restricted stock description			(1) the Company's achievement of a gross profit margin equal to or in excess of 31.9%, (2) the Company's achievement of certain cost savings initiatives within cost of sales specified by the compensation committee of the board of directors, and (3) the chief executive officer's continued employment.
Restricted stock [Member] | Former Chief Financial Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted shares vested			15
Equity based compensation expense			$ 117
Restricted stock [Member] | Selling, general and administrative expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 898	$ 506	$ 2,708	$ 1,644
Restricted stock [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restricted stock vested			12 months
Restricted stock [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restricted stock vested			3 years
Common stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based compensation expense	$ 0	$ 0	$ 0	$ 28

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes (Textual)
Effective tax rate	39.00%	34.00%	40.00%	16.00%
Federal statutory rate			35.00%

Earnings Per (Loss) Share (Deta

Earnings Per (Loss) Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Earnings (Loss) Per Share [Abstract]
Net income (loss)	$ 3,739	$ (4,319)	$ 10,631	$ (2,539)
Weighted average shares outstanding:
Basic	28,734	30,312	29,209	30,379
Dilutive effect of warrants, restricted stock and stock options	196	0	242	0
Diluted	28,930	30,312	29,451	30,379
Earnings (loss) per share:
Basic	$ 0.13	$ (0.14)	$ 0.36	$ (0.08)
Diluted	$ 0.13	$ (0.14)	$ 0.36	$ (0.08)

Earnings Per (Loss) Share (De35

Earnings Per (Loss) Share (Detail Textual) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Restricted Stock Warrants and Stock Options
Earnings Per Share (Textual)
Restricted stock, warrants and stock options and restricted stock units granted not considered in calculation of diluted earnings per share	443		328
Restricted Stock Units Granted [Member]
Earnings Per Share (Textual)
Restricted stock, warrants and stock options and restricted stock units granted not considered in calculation of diluted earnings per share	452	870	452	836

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Treasury Stock (Textual)
Number of repurchase of shares authorized by board of directors	$ 15,000	$ 10,000	$ 15,000	$ 10,000
Number of common stock repurchased under plan	1,844	0	1,886	556
Cash consideration paid for repurchase of common stock	$ 13,570		$ 13,331	$ 2,488
Commissions paid to brokers	$ 55		$ 56	$ 16
Weighted average price per share of stock repurchase	$ 7.32		$ 7.33	$ 4.45
Foreclose shares of common stock			80
Total value of foreclose shares of common stock			$ 688
Foreclose price per share			$ 8.59

Note Receivable (Detail Textual

Note Receivable (Detail Textuals) - USD ($) $ in Thousands	1 Months Ended	9 Months Ended
	Mar. 23, 2011	Sep. 30, 2015	Jun. 29, 2015	May. 21, 2015	Jan. 31, 2012	Oct. 31, 2011	Dec. 31, 2009
Accounts, Notes, Loans and Financing Receivable [Line Items]
Advance payments for ZAGGbox in aggregate amount			$ 50
Fixed rate		0.75%
Description of first term or condition to terminate agreement		Mr. Harmer, Teleportall, and certain of their affiliates delivered a promissory note (the “Note”) dated March 23, 2011, to the Company in the original principal amount of $4,126 which accrued interest at the rate of LIBOR plus 4% per annum (adjusted quarterly) payable as follows: (i) interest only payments (a) on September 23, 2011, and (b) thereafter on or before the last day of each calendar quarter, (ii) 50% of the net profits of each ZAGGbox sale by Teleportall and its affiliates, and (iii) the unpaid balance of principal and interest due in full on March 23, 2013. The Note was secured by certain real property, interests in entities that own real property and restricted and free-trading securities.
Foreclosed on real estate property valued			1,099		$ 250	$ 1,099
Amount of interest				$ 4,735
Interest receivable, percentage				12.00%
ZAGG products [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Advance payments for ZAGGbox in aggregate amount	$ 3,900
Original principal amount	4,126
Teleportall, LLC ('Teleportall') [Member] | Promissory note (the 'Note') [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Original principal amount	$ 4,126
Fixed rate	4.00%
Description of reference rate	LIBOR
Percentage of the net profits of selling product	50.00%
Teleportall, LLC ('Teleportall') [Member] | ZAGG products [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Initial purchase order price for ZAGGbox units							$ 3,500
Advance payments for ZAGGbox in aggregate amount							$ 3,900
ZAGG Inc [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Advance payments for ZAGGbox in aggregate amount			298
Real estate property other assets			801
Asset held for sale			$ 1,099

Note Receivable (Detail Textu38

Note Receivable (Detail Textuals 1) - USD ($) $ in Thousands	Jul. 13, 2015	Oct. 31, 2011	Dec. 31, 2011	Sep. 30, 2015	Jun. 29, 2015	May. 31, 2012	Jan. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated fair value of real property		$ 1,099
Number of shares issued in the process of foreclosure		45
Value of shares issued in the process of foreclosure	$ 688		$ 496
Foreclosed on real estate property valued		$ 1,099			$ 1,099		$ 250
Foreclosed on stock and warrants						$ 516
Note receivable carrying amount				$ 50
Note receivable offset to equity				50
Total unpaid principal balance, including accrued interest, late fees and costs				4,742
ZAGG Inc [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of shares issued in the process of foreclosure		80
Value of shares issued in the process of foreclosure		$ 688
Note receivable carrying amount					$ 298
ZAGG Inc [Member] | Harmer agreement [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Number of shares issued in the process of foreclosure	80
ZAGG Inc [Member] | Minimum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated value of the underlying collateral security				135
Note receivable recorded value	$ 0
ZAGG Inc [Member] | Maximum [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Estimated value of the underlying collateral security				$ 270
Note receivable recorded value	$ 638

Fair Value Measures (Details)

Fair Value Measures (Details) - Fair value measurements recurring basis [Member] - Money market funds [Member] - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Estimate of Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	$ 375	$ 374
Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	$ 375	$ 374
Level 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents
Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents

Concentrations (Details)

Concentrations (Details) - Sales revenue [Member]	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
UNITED STATES
Concentration Risk [Line Items]
Percentage of sales	89.00%	91.00%	91.00%	89.00%
Europe
Concentration Risk [Line Items]
Percentage of sales	9.00%	6.00%	8.00%	8.00%
Other
Concentration Risk [Line Items]
Percentage of sales	2.00%	3.00%	1.00%	3.00%

Concentrations (Detail Textual)

Concentrations (Detail Textual) - Concentration of credit risk [Member] - Accounts receivable [Member] - Customer	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Concentration risk (Textual)
Number of customers	3	2
Minimum account balance of accounts receivable in percentages for all other customers	No other customer account balances were more that 10% of accounts receivable.	No other customers' accounts receivable balances exceeded 10% of accounts receivable
Customer 1 [Member]
Concentration risk (Textual)
Balance of accounts receivable due from two customers	25.00%	48.00%
Customer 2 [Member]
Concentration risk (Textual)
Balance of accounts receivable due from two customers	23.00%	14.00%
Customer 3 [Member]
Concentration risk (Textual)
Balance of accounts receivable due from two customers	12.00%

Concentrations (Detail Textual

Concentrations (Detail Textual 1) - Sales revenue [Member] - Concentration of sales [Member] - Customer	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Concentration risk (Textual)
Percentage of sales	10.00%	10.00%	10.00%	10.00%
Number of customer	3	2	3	2
Accounts revenues in percentage of all customers	No other customers accounted for more than 10% of sales.	No other customers accounted for more than 10% of sales.	No other customers accounted for more than 10% of sales.	No other customers accounted for more than 10% of sales.
Customer 1 [Member]
Concentration risk (Textual)
Percentage of sales	18.00%	32.00%	20.00%	28.00%
Customer 2 [Member]
Concentration risk (Textual)
Percentage of sales	17.00%	14.00%	13.00%	15.00%
Customer 3 [Member]
Concentration risk (Textual)
Percentage of sales	12.00%		12.00%

Commitments and Contingencies43

Commitments and Contingencies (Details) $ in Thousands	Sep. 30, 2015USD ($)
Commitments and Contingencies [Abstract]
Remaining 2,015	$ 282
2,016	538
2,017	161
2,018	6
Total	$ 987

Commitments and Contingencies44

Commitments and Contingencies (Detail Textual) - USD ($) $ in Thousands	Oct. 02, 2015	Dec. 05, 2014	May. 21, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Commitments [Line Items]
Rent expense		$ 110		$ 391	$ 275	$ 1,182	$ 1,243
Initial lease term		The initial lease term is for 90 months.
Litigation settlement amount	$ 1,396		$ 4,735
Interest rate			12.00%
Sublease Income [Member]
Other Commitments [Line Items]
Rent expense				$ 0	$ 334	$ 0	$ 682