ZAGG (ZAGG) 10-Q 3 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
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	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		28,123,292

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 9,250	$ 13,002
Accounts receivable, net of allowances of $433 in 2016 and $568 in 2015	64,885	57,647
Inventories	68,856	45,912
Prepaid expenses and other current assets	1,988	3,142
Income tax receivable	14,329	1,158
Deferred income tax assets	28,223	10,840
Total current assets	187,531	131,701
Property and equipment, net of accumulated depreciation of $14,235 in 2016 and $10,539 in 2015	20,112	8,309
Goodwill	28,725
Intangible assets, net of accumulated amortization at $49,366 in 2016 and $41,803 in 2015	66,522	23,045
Deferred income tax assets	9,462	15,386
Other assets	2,337	1,100
Total assets	314,689	179,541
Current liabilities
Accounts payable	62,595	33,846
Accrued liabilities	16,258	5,068
Accrued wages and wage related expenses	3,349	2,244
Deferred revenue	97	17
Sales returns liability	30,164	7,849
Current portion of long-term debt, net of deferred loan costs of $65 in 2016	6,185
Revolving line of credit	50,006
Total current liabilities	168,654	49,024
Noncurrent portion of long-term debt, net of deferred loan costs of $173 in 2016	17,014
Other noncurrent liabilities	513
Total liabilities	186,181	49,024
Stockholders' equity
Common stock, $0.001 par value; 100,000 shares authorized; 33,817 and 33,219 shares issued in 2016 and 2015, respectively	34	33
Additional paid-in capital	91,273	88,983
Accumulated other comprehensive loss	(1,562)	(1,597)
Treasury stock, 5,679 common shares in 2016 and 2015, at cost	(35,194)	(35,194)
Retained earnings	73,957	78,292
Total stockholders' equity	128,508	130,517
Total liabilities and stockholders' equity	$ 314,689	$ 179,541

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Balance Sheets [Abstract]
Allowances for doubtful accounts	$ 433	$ 568
Accumulated depreciation on property and equipment	14,235	10,539
Accumulated amortization on Intangible assets	49,366	$ 41,803
Deferred loan costs, Current	65
Deferred loan costs, Non current	$ 173
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	33,817	33,219
Treasury stock	5,679	5,679

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Operations [Abstract]
Net sales	$ 99,833	$ 66,689	$ 162,266	$ 123,905
Cost of sales	68,960	41,732	107,664	75,991
Gross profit	30,873	24,957	54,602	47,914
Operating expenses:
Advertising and marketing	2,275	2,060	5,189	4,691
Selling, general and administrative	24,880	14,510	44,635	27,264
Transaction costs	305		2,322
Amortization of long-lived intangibles	4,765	2,134	7,511	4,268
Total operating expenses	32,225	18,704	59,657	36,223
Income (loss) from operations	(1,352)	6,253	(5,055)	11,691
Other income (expense):
Interest expense	(604)	(27)	(792)	(53)
Other income (expense)	9	(59)	(191)	21
Total other income (expense), net	(595)	(86)	(983)	(32)
Income (loss) before provision for income taxes	(1,947)	6,167	(6,038)	11,659
Income tax benefit (provision)	901	(2,476)	1,703	(4,767)
Net (loss) income	$ (1,046)	$ 3,691	$ (4,335)	$ 6,892
Earnings (loss) per share:
Basic earnings (loss) per share	$ (0.04)	$ 0.13	$ (0.16)	$ 0.23
Diluted earnings (loss) per share	$ (0.04)	$ 0.12	$ (0.16)	$ 0.23

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Other Comprehensive Income [Abstract]
Net (loss) income	$ (1,046)	$ 3,691	$ (4,335)	$ 6,892
Other comprehenseive (loss) income, net of tax:
Foreign currency translation (loss) gain	(284)	359	35	(493)
Total other comprehensive (loss) gain	(284)	359	35	(493)
Comprehensive (loss) income	$ (1,330)	$ 4,050	$ (4,300)	$ 6,399

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities
Net (loss) income	$ (4,335)	$ 6,892
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Stock-based compensation	2,291	1,810
Excess tax benefits related to share-based payments	(566)	(186)
Depreciation and amortization	14,568	6,049
Deferred income taxes	(43)	(407)
Amortization of deferred loan costs	81	33
Changes in operating assets and liabilities, net of acquisition
Accounts receivable, net	5,666	21,631
Inventories	1,104	4,025
Prepaid expenses and other current assets	1,859	475
Income tax receivable	(1,095)	(5,251)
Other assets	(210)	30
Accounts payable	(8,506)	(26,514)
Accrued liabilities	(202)	(1,251)
Accrued wages and wage related expenses	12	(547)
Deferred revenue	69	(6)
Sales returns liability	(7,274)	(2,663)
Net cash provided by operating activities	3,419	4,120
Cash flows from investing activities
Purchase of property and equipment	(4,700)	(1,893)
Purchase of mophie, net of cash acquired	(74,743)
Net cash used in investing activities	(79,443)	(1,893)
Cash flows from financing activities
Payment of debt issuance costs	(1,144)
Proceeds from revolving credit facility	142,477	2,218
Payments on revolving credit facility	(92,471)	(2,218)
Proceeds from term loan facility	25,000
Payments on term loan facility	(1,563)
Payment of withholdings on restricted stock units	(621)	(718)
Proceeds from exercise of warrants and options	54	206
Excess tax benefits related to share-based payments	566	186
Net cash provided by (used in) financing activities	72,298	(326)
Effect of foreign currency exchange rates on cash and cash equivalents	(26)	(211)
Net (decrease) increase in cash and cash equivalents	(3,752)	1,690
Cash and cash equivalents at beginning of the period	13,002	9,461
Cash and cash equivalents at end of the period	9,250	11,151
Supplemental disclosure of cash flow information
Cash paid during the period for interest	566	27
Cash paid during the period for taxes	834	10,339
Supplemental schedule of noncash investing and financing activities
Purchase of fixed assets financed through accounts payable and accrued liabilities	1,234	476
Foreclosed real estate property		1,099
Treasury stock finance accounts payable		$ 323

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 2016
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 (“we,” “us,” “our,” “ZAGG,” or the “Company”) are innovation leaders in mobile tech accessories for smartphones and tablets. For over 10 years, ZAGG has developed creative product solutions that enhance and protect mobile devices for consumers around the world. The Company has an award-winning product portfolio that includes screen protection, mobile keyboards, power management, cases, social tech, and personal audio sold under the ZAGG, InvisibleShield®, mophie®, and iFrogz® brands. 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 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. These consist of normal recurring adjustments and adjustments related to the acquisition disclosed in Note 2. 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 2015 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. On March 3, 2016 the Company acquired mophie inc. ("mophie") for gross up-front cash consideration of $100,000, subject to a preliminary working capital adjustment of $23,478. The results of operations of mophie are included in the Company's results of operations beginning on March 3, 2016. Based on the manner in which the Company manages, evaluates, and internally reports its operations, the Company determined that mophie will be reported as a separate reportable segment. See Notes 2 and 14 for additional details on the acquisition and the Company's segments. 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; mophie inc.; mophie LLC, mophie Technology Development Co., Ltd; mophie Netherlands Cooperatie U.A.; and mophie Limited. All intercompany transactions and balances have been eliminated in consolidation. Significant Accounting Policies The Company’s significant accounting policies are described in Note 1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. In addition to these policies, the Company has adopted a significant accounting policy relating to business combinations and accounting for goodwill as a result of the acquisition of mophie, as described below. Also, in connection with the acquisition of mophie, the Company changed its operating segments, as described in Note 14. Business Combinations Significant estimates in valuing certain intangible assets include but are not limited to: future expected cash flows related to each individual asset, market position of the tradenames, as well as assumptions about cash flow savings from the tradenames, determination of useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Goodwill However, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the two step analysis is performed, which incorporates a fair-value based approach. We determine the fair value of our reporting unit based on discounted cash flows and market approach analyses as considered necessary, and consider factors such as the economy, reduced expectations for future cash flows coupled with a decline in the market price of our stock and market capitalization for a sustained period as indicators for potential goodwill impairment. If the reporting unit’s carrying amount exceeds its estimated fair value, a second step must be performed to measure the amount of the goodwill impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill, determined in the same manner as the amount of goodwill recognized in a business combination, with the carrying amount of such goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. 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 in exchange for those goods or services. The ASU 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. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients”. The amendments and practical expedients presented in the ASU aim to simplify the transition to the new standard, to provide practical expedients for transition and sales taxes, and to clarify certain aspects of the standard. The Company is currently evaluating the impact these ASU will have on its 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 annual and interim periods beginning after December 15, 2016 for public business entities. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In February 2016, the FASB issued its new lease accounting standard, which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-11, which simplified accounting for share-based payments. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

Acquisition of Mophie Inc

Acquisition of Mophie Inc	6 Months Ended
	Jun. 30, 2016
Acquisition of Mophie Inc [Abstract]
ACQUISITION OF MOPHIE INC.	(2) ACQUISITION OF MOPHIE INC. On February 2, 2016, ZAGG and ZM Acquisition, Inc. (“Merger Sub”), a Delaware corporation and wholly-owned subsidiary of the Company, entered into an Agreement and Plan of Merger (the “Merger Agreement”) with mophie, a California corporation, the principal shareholders of mophie named therein (the “Principal Shareholders”), and Daniel Huang as representative of the mophie shareholders, warrant holders, and option holders, pursuant to which Merger Sub agreed to merge with and into mophie, with mophie continuing as the surviving corporation (the “Merger”). On March 3, 2016 (the “Acquisition Date”), the Company completed the Merger. The combination of ZAGG and mophie creates a diversified market leader in multiple mobile accessories categories. The Company purchased mophie for total gross up-front consideration of $100,000 in cash, subject to a working capital adjustment. The Merger Agreement includes an earn-out provision whereby additional consideration could be paid based on whether mophie’s 12-month Adjusted EBITDA (as defined in the Merger Agreement) from April 1, 2016 to March 31, 2017 (the “Earnout Period”) exceeds $20,000. For every dollar in Adjusted EBITDA generated during the Earnout Period that exceeds $20,000, the Company will pay additional consideration at a five times multiple (“Earnout Consideration”). Any Earnout Consideration will initially be paid by the issuance of up to $5,000 in shares of the Company’s common stock valued as of February 2, 2016 (the day prior to the public announcement of the definitive agreement on February 3, 2016). In addition to the Earnout Consideration, the Company will also remit cash to the Principal Shareholders once the following contingent items related to pre-acquisition operations have been resolved: ● Federal and state tax refunds expected to be due to the Company related to 2012 and 2013 tax years. ● Customs and duties refunds for pre-closing overpayments of customs and duties amounts to governmental agencies. ● Proceeds from the sale of real property located in Kalamazoo, Michigan. In addition, $2,000 of the cash consideration paid to the Principal Shareholders was placed in an escrow account to cover potential tax, legal, or other contingencies that could arise relating to pre-acquisition events for which ZAGG is indemnified. If charges exceed $2,000, ZAGG may recover these amounts through a $10,000 insurance policy related to representations and warranties. The following summarizes the components of the purchase consideration: Cash consideration $ 100,000 Preliminary working capital adjustment (23,478 ) Preliminary contingent payments 6,791 Preliminary fair value of earnout consideration 1,599 Total purchase price $ 84,912 The total purchase price of $84,912 has been preliminarily allocated to identifiable assets acquired and liabilities assumed based on their respective preliminary fair values. The total preliminary purchase price has been adjusted in the current period as a result of additional information related to the estimate of fair value of the assets acquired and liabilities assumed. This adjustment was recorded as an adjustment to goodwill during the second quarter. The excess of the purchase price over the fair value of tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. The allocation of goodwill to reportable segments has not yet been completed. The Company has performed preliminary analyses related to the calculation of the working capital adjustment and contingent payments, as these items relate to purchase accounting under U.S. GAAP. The working capital adjustment and the contingent payments are currently under review by the Company and the Principal Shareholders and the final determination of the working capital adjustment and contingent payments is still pending receipt of information in order to determine the appropriate amounts and these balances are yet to be agreed upon by the Company and the Principal Shareholders. The final determination and resolution of these items could result in a material adjustment to preliminary purchase price, including the preliminary allocation of purchase price to identifiable assets acquired and liabilities assumed, and could result in a material adjustment to the Company’s results of operations. The following table summarizes the preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed as of the Acquisition Date. The preliminary estimates of the fair value of identifiable assets acquired and liabilities assumed are based on estimates and assumptions and are subject to revisions, which may result in adjustments to the preliminary values presented below, when management’s estimates are finalized: Cash and cash equivalents $ 1,779 Trade receivables (gross contractual receivables of $12,824) 12,823 Inventories 27,313 Prepaid expenses and other assets 1,073 Income tax receivable 11,537 Deferred tax assets 11,416 Property and equipment 10,196 Land held for sale 325 Amortizable identifiable intangible assets 51,040 Goodwill 28,725 Accounts payable (37,359 ) Income tax payable (196 ) Accrued liabilities (3,653 ) Deferred revenue (10 ) Sales returns liability (29,584 ) Other noncurrent liabilities (513 ) Total $ 84,912 The following table summarizes the change in preliminary estimates that were recorded during the second quarter: March 31, Change in Preliminary Estimates June 30, Cash and cash equivalents $ 1,779 $ - $ 1,779 Trade receivables 13,483 (660 ) 12,823 Inventories 37,290 (9,977 ) 27,313 Prepaid expenses and other assets 1,073 - 1,073 Income tax receivable 11,548 (11 ) 11,537 Deferred tax assets 24,925 (13,509 ) 11,416 Property and equipment 10,196 - 10,196 Land held for sale 325 - 325 Amortizable identifiable intangible assets 45,463 5,577 51,040 Goodwill 14,092 14,633 28,725 Accounts payable (38,121 ) 762 (37,359 ) Income tax payable (196 ) - (196 ) Accrued liabilities (6,092 ) 2,439 (3,653 ) Deferred revenue (10 ) - (10 ) Sales returns liability (17,150 ) (12,434 ) (29,584 ) Other noncurrent liabilities (18,491 ) 17,978 (513 ) Total $ 80,114 $ 4,798 $ 84,912 Because the acquisition of mophie occurred in an interim period and in light of the magnitude of the transaction and existing uncertainties, the Company’s fair value estimates for the purchase price, assets acquired, and liabilities assumed are preliminary and may change during the allowable measurement period. The allowable measurement period continues to the date the Company obtains and analyzes all relevant information that existed as of the date of the acquisition necessary to determine the fair values of the assets acquired and liabilities assumed, but in no case is to exceed more than one year from the date of acquisition (March 3, 2017). The Company is analyzing information to verify assets acquired and liabilities assumed. As part of the acquisition of mophie, the Company incurred legal, accounting, and other due diligence fees that were expensed when incurred. Total fees incurred related to the acquisition of mophie for the three and six months ended June 30, 2016 were $305 and $2,322, respectively, which are included as a component of operating expenses on the condensed consolidated statement of operations. Identifiable Intangible Assets Classes of acquired intangible assets include tradenames, patents and technology, customer relationships, non-compete agreements, and backlog. The fair value of the identifiable intangible assets was determined using various valuation methods, including the income and market approaches. For assets valued under the income approach, the estimate of the present value of expected future cash flows for each identifiable asset was based on discount rates which incorporate a risk premium to take into account the risks inherent in those expected cash flows. The expected cash flows were estimated using available historical data adjusted based on the Company’s historical experience and the expectations of market participants. The market approach was utilized to determine appropriate royalty rates applied to the valuation of the trademarks and technology. The preliminary amounts assigned to each class of intangible asset and the related preliminary weighted average amortization periods are as follows: Intangible asset class Weighted-average amortization period Tradenames $ 19,648 10.0 years Patents and technology 19,960 7.4 years Customer relationships 8,648 5.0 years Non-compete agreements 2,384 5.0 years Backlog 400 0.3 years Total $ 51,040 Goodwill Goodwill represents the excess of the mophie purchase price over the fair value of the assets acquired and liabilities assumed. The Company believes that the primary factors supporting the amount of goodwill recognized are the significant growth opportunities and expected synergies of the combined entity. Results of Operations The results of operations of mophie are included in the Company’s results of operations beginning on March 3, 2016. For the three months ended June 30, 2016, mophie generated net sales of $32,023 and had a net loss of $9,613. For the period March 3, 2016 through June 30, 2016, mophie generated net sales of $39,659 and had a net loss of $13,727. Pro forma Results from Operations The following unaudited pro-forma results of operations for the three months ended June 30, 2015 and the six months ended June 30, 2016 and 2015 give pro forma effect as if the acquisition and borrowings used to finance the acquisition had occurred on January 1, 2015, after giving effect to certain adjustments including the amortization of intangible assets, interest expense, tax adjustments, specific transaction related expenses incurred prior to the execution date, and assumes the purchase price was allocated to the assets purchased and liabilities assumed based on their fair market values at the date of purchase. 3 Months Ended June 30, Net sales $ 125,155 Net income $ 2,181 Basic earnings per share $ 0.07 Diluted earnings per share $ 0.07 6 Months Ended June 30, June 30, Net sales $ 179,592 $ 234,935 Net loss $ (7,155 ) $ (1,112 ) Basic loss per share $ (0.25 ) $ (0.04 ) Diluted loss per share $ (0.25 ) $ (0.04 ) The unaudited pro forma information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have occurred had the transaction been consummated as of January 1, 2015. Furthermore, such unaudited pro forma information is not necessarily indicative of future operating results of the combined companies, due to changes in operating activities following the purchase, and should not be construed as representative of the operating results of the combined companies for any future dates or periods. For the three months ended June 30, 2015, pro forma net income includes pro forma amortization expense of $2,609. In addition, the Company included interest from the new credit facility and amortization of debt issuance costs for the three months ended June 30, 2015 of $538, respectively. Material non-recurring adjustments excluded from the pro forma financial information above consists of the $4,988 step up of mophie inventory to its fair value, which is expected to be recorded as an unfavorable adjustment to cost of goods sold during the six months following the acquisition date. For the six months ended June 30, 2016 and 2015, pro forma net loss includes projected amortization expense of $4,412 and $5,418, respectively. In addition, the Company included interest from the new credit facility and amortization of debt issuance costs for the six months ended June 30, 2016 and 2015 of $1,007 and $1,081, respectively. The unaudited pro forma results do not reflect events that either have occurred or may occur after the Merger, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. They also do not give effect to certain charges that the Company expects to incur in connection with the Merger, including, but not limited to, additional professional fees, employee integration, retention and severance costs, or product rationalization charges.

Debt and Letters of Credit

Debt and Letters of Credit	6 Months Ended
	Jun. 30, 2016
Debt and Letters of Credit [Abstract]
DEBT AND LETTERS OF CREDIT	(3) DEBT AND LETTERS OF CREDIT Concurrent with the close of the Merger on March 3, 2016, the Company entered into a Credit and Security Agreement with KeyBank National Association (“KeyBank”), acting as administrative agent and swing line lender; KeyBanc Capital Markets Inc., acting as joint lead arranger and sole book runner; Zions Bank (“Zions”), as joint lead arranger; and JP Morgan Chase, as a member of the bank syndicate (“Credit and Security Agreement”). The Credit and Security Agreement replaces the prior credit agreement with Wells Fargo, which was terminated upon signing the Credit and Security Agreement. The Credit and Security Agreement provides an $85,000 revolving credit commitment (“Line of Credit”). Borrowings and repayments under the Line of Credit may occur from time to time in the Company’s ordinary course of business through the maturity date of March 2, 2021, at which time any amounts outstanding are to be paid in full (60-month term). All borrowings under the Line of Credit are subject to a borrowing base limit, which is calculated from outstanding accounts receivable and inventory, and reported to the administrative agent monthly. Interest on the Line of Credit will accrue at the base rate plus 0.50% or LIBOR plus 1.50%. The Line of Credit is subject to an unused line fee calculated as 0.20% multiplied by the average unused amount of the Line of Credit. The Credit and Security Agreement also provides a $25,000 term loan commitment (“Term Loan”). Principal and interest payments on the Term Loan are to be made in consecutive monthly installments of $521 commencing on April 1, 2016 and continuing until the Term Loan is paid in full on March 2, 2020 (48-month term). Interest on the Term Loan will accrue at the base rate plus 1.0% or at a rate of LIBOR plus 2.0%. The Credit and Security Agreement also provides for letters of credit with a fronting fee of 0.125% (paid per annum) for all issued and outstanding letters of credit. The Credit and Security Agreement provides for a lockbox and cash collateral account that is maintained with KeyBank. The Credit and Security Agreement is collateralized by substantially all of the assets of the Company. The Credit and Security Agreement establishes two financial debt covenants that are measured on a quarterly basis starting with the quarter-ended June 30, 2016: ● Maximum Leverage Ratio ● Minimum Fixed Charge Coverage Ratio In connection with the establishment of the Credit and Security Agreement, the Company incurred and capitalized $1,144 of direct costs; $884 of the costs are related to the line of credit and as such are reflected as a component of other assets, and $260 was reflected as an offset to long-term debt in the condensed consolidated balance sheet. For the three and six months ended June 30, 2016, the Company amortized $60 and $81, respectively, of these loan costs, which are included as a component of interest expense in the condensed consolidated statements of operations. For the three and six months ended June 30, 2015, the Company amortized $17 and $33, respectively, of capitalized costs related to the Wells Fargo credit agreement, which are included as a component of interest expense in the condensed consolidated statements of operations. All costs capitalized associated with the Wells Fargo credit agreement were fully amortized at December 31, 2015. For the three and six months ended June 30, 2016, $14 and $22, respectively, in unused line fees were incurred and included as a component of interest expense in the condensed consolidated statements of operations. For the three and six months ended June 30, 2015, $9 and $18, respectively, in unused line fees were incurred and included as a component of interest expense in the condensed consolidated statements of operations. At June 30, 2016 and 2015, the weighted average interest rate on all outstanding borrowings under the revolving line of credit was 1.98% and 1.13%, respectively. At June 30, 2016, the effective interest rate on the Term Loan was 3.02%. Contractual future payments under the Credit and Security Agreement are as follows: Line of Credit Term Total Remaining 2016 $ — $ 3,125 $ 3,125 2017 — 6,250 6,250 2018 — 6,250 6,250 2019 — 6,250 6,250 2020 — 1,562 1,562 Thereafter 50,006 — 50,006 Total $ 50,006 $ 23,437 $ 73,443

Intangible Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
INTANGIBLE ASSETS	(4) INTANGIBLE ASSETS Amortizable intangibles as of June 30, 2016, and December 31, 2015, were as follows: As of June 30, 2016 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ 8,648 $ (32,012 ) $ 18,136 7.5 years Tradenames 12,921 19,648 (8,045 ) 24,524 9.8 years Patents and technology 6,003 19,960 (4,354 ) 21,609 8.5 years Non-compete agreements 4,100 2,384 (4,259 ) 2,225 4.9 years Other 324 400 (696 ) 28 2.0 years Total amortizable assets $ 64,848 $ 51,040 $ (49,366 ) $ 66,522 8.2 years As of December 31, 2015 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ — $ (29,150 ) $ 12,350 8.0 years Tradenames 12,921 — (6,253 ) 6,668 9.5 years Patents and technology 5,805 198 (2,381 ) 3,622 11.9 years Non-compete agreements 4,100 — (3,729 ) 371 4.8 years Other 324 — (290 ) 34 4.1 years Total amortizable assets $ 64,650 $ 198 $ (41,803 ) $ 23,045 8.4 years Customer relationships, tradenames, 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 amortizable intangible assets are amortized using the straight-line method over their estimated useful life. For the three and six months ended June 30, 2016, amortization expense was $4,795 and $7,562, respectively. Amortization expense is primarily recorded as a component of operating expense. However, amortization expense related to acquired technology for the three and six months ended June 30, 2016, of $30 and $52, respectively, is recorded as a component of cost of sales. For the three and six months ended June 30, 2015, amortization expense was $2,163 and $4,318, respectively. Amortization expense related to acquired technology for the three and six months ended June 30, 2015, of $29 and $50, respectively, was recorded as a component of cost of sales. Estimated future amortization expense is as follows: Remaining 2016 $ 8,393 2017 14,443 2018 11,573 2019 10,516 2020 7,609 Thereafter 13,988 Total $ 66,522

Inventories

Inventories	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
INVENTORIES	(5) INVENTORIES At June 30, 2016, and December 31, 2015, inventories consisted of the following: June 30, December 31, Finished goods $ 67,598 $ 44,764 Raw materials 1,258 1,148 Total inventories $ 68,856 $ 45,912 In addition, included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at June 30, 2016 and December 31, 2015 of $218 and $813, respectively.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	(6) STOCK-BASED COMPENSATION During the three and six months ended June 30, 2016, the Company granted 380 and 713 restricted stock units, respectively. During the three and six months ended June 30, 2015, the Company granted zero and 545 restricted stock units, respectively. The restricted stock units granted during the three and six months ended June 30, 2016, were estimated to have a weighted-average fair value per share of $5.40 and $7.33, respectively. The restricted stock units granted during the six months ended June 30, 2015, were estimated to have a weighted-average fair value per share of $6.51. The fair value of restricted stock units granted is based on the closing share price of the Company’s common stock on the date of grant. The restricted stock units vest annually on a straight-line basis over a nine-month (annual board of directors’ grant) to three-year vesting term, depending on the terms of the individual grant. As part of the 713 and 545 grants discussed above, during the first six months of 2016 and 2015, the Company granted 418 and 268 restricted stock units, respectively, to certain executives and employees of the Company where vesting is linked to specific performance criteria. The shares of restricted stock granted in 2016 only vest upon the Company’s achievement of specified thresholds of net sales, Adjusted EBITDA (as defined in the grant), or specific goals for the individual executive. The shares of restricted stock granted in 2015 only vested upon the achievement of specified thresholds of net sales, Adjusted EBITDA, and earnings per share. As of June 30, 2016 the Company believes it is probable that it will achieve the targets for 418 shares of restricted stock granted in the first six months of 2016. Of the 268 restricted stock units granted in 2015, 224 shares vested (including 7 shares granted in excess of the original grant due to the Company exceeding the operating thresholds) and 52 shares were forfeited. The Company recorded share-based compensation expense only for those restricted stock units that are expected to vest. The estimated fair value of restricted stock units 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 six months ended June 30, 2016, the Company recorded equity-based compensation expense related to restricted stock units of $957 and $2,291, respectively, which is included as a component of selling, general and administrative expense. During the three and six months ended June 30, 2015, the Company recorded equity-based compensation expense related to restricted stock units of $934 and $1,810, respectively, which is included as a component of selling, general and administrative expense. During the six months ended June 30, 2016 and 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 minimum statutory withholding amount of the employees’ tax liabilities for the fair value of the award on the vesting date. This resulted in the Company paying $621 and $718, respectively, which is reflected as a reduction of additional paid-in capital. During the three months ended June 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	6 Months Ended
	Jun. 30, 2016
Income Taxes [Abstract]
INCOME TAXES	(7) INCOME TAXES During the three and six months ended June 30, 2016, the Company’s effective tax rate was 46% and 28%, respectively. During the three and six months ended June 30, 2015, the Company’s effective tax rate was 40% and 41%, respectively. The change in the effective tax rate for three month period ended June 30, 2016 is primarily due to an increase in acquisition costs and other permanent items. The decrease in the effective tax rate for the six months ended June 30, 2016 compared to the six months ended June 30, 2015 was primarily due to (1) a decrease in the state rate used for deferred taxes caused by the acquisition of mophie and the resulting change in the mix of state apportionment factors, which resulted in a discrete item being recognized during Q1 2016, and (2) reduced losses from foreign jurisdictions that are taxed at a 0% rate. 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 Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
EARNINGS PER SHARE	(8) EARNINGS 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 reflect 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 six months ended June 30, 2016 and 2015: Three months ended June 30, June 30, Net (loss) income $ (1,046 ) $ 3,691 Weighted average shares outstanding: Basic 28,126 29,521 Dilutive effect of stock options, restricted stock units, and warrants — 233 Diluted 28,126 29,754 Earnings (loss) per share: Basic $ (0.04 ) $ 0.13 Diluted $ (0.04 ) $ 0.12 Six months ended June 30, June 30, Net (loss) income $ (4,335 ) $ 6,892 Weighted average shares outstanding: Basic 27,918 29,451 Dilutive effect of stock options, restricted stock units, and warrants — 265 Diluted 27,918 29,716 Earnings (loss) per share: Basic $ (0.16 ) $ 0.23 Diluted $ (0.16 ) $ 0.23 For the three months ended June 30, 2016 warrants and restricted stock units to purchase 895 shares of common stock were not considered in calculating diluted earnings per share as their effect would have been anti-dilutive. For the three months ended June 30, 2015, warrants and restricted stock units to purchase 100 shares of common stock were not considered in calculating diluted earnings per share because the warrant or stock option exercise prices or the total expected proceeds under the treasury stock method for the warrants, restricted stock units, or stock options was greater than the average market price of common shares during the period and, therefore, the effect would be anti-dilutive. Also excluded from the calculation of diluted earnings per share for the three months ended June 30, 2015 were 466 restricted stock units granted that were not yet vested as the performance conditions were not met (see further discussion in Note 6). For the six months ended June 30, 2016 warrants and restricted stock units to purchase 895 shares of common stock were not considered in calculating diluted earnings per share as their effect would have been anti-dilutive. For the six months ended June 30, 2015 warrants and restricted stock units to purchase 270 shares of common stock were not considered in calculating diluted earnings per share because the warrant or stock option exercise prices or the total expected proceeds under the treasury stock method for the warrants, restricted stock units, or stock options was greater than the average market price of common shares during the period and, therefore, the effect would be anti-dilutive. Also excluded from the calculation of diluted earnings per share for the six months ended June 30, 2015 were 466 restricted stock units granted that were not yet vested as the performance conditions were not met (see further discussion in Note 6).

Treasury Stock

Treasury Stock	6 Months Ended
	Jun. 30, 2016
Treasury Stock [Abstract]
TREASURY STOCK	(9) TREASURY STOCK During the fourth quarter of 2015, the Company’s board of directors authorized the repurchase of up to $20,000 of the Company’s outstanding common stock with no expiration date. The Company’s board of directors also authorized the Company to enter into a Rule 10b5-1 plan when appropriate. For the three and six months ended June 30, 2016, no purchases of treasury stock occurred. For the three and six months ended June 30, 2015 the Company purchased 42 shares of ZAGG Inc common stock for consideration of $323, which included commissions paid to brokers of $1. Stock purchased in the three and six months ended June 30, 2015 had a weighted average price per share of $7.68. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheets.

Note Receivable

Note Receivable	6 Months Ended
	Jun. 30, 2016
Note Receivable [Abstract]
NOTE RECEIVABLE	(10) 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 Teleportall, 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 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, which 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 previously collateralized by the foreclosed real property and included in other assets, and $298 of the Note 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 was $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 was recorded by the Company as a recovery of a previously established reserve in selling, general and administrative expense in the consolidated statement of operations, which is the same financial statement line item in which the Company previously recorded write-downs of the Note. As of December 31, 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 June 30, 2016 and December 31, 2015, the entire unpaid balance on the note receivable was fully reserved. The total unpaid principal balance, including accrued interest, late fees, attorney fees, and costs incurred in collection, totaled $5,047 and $4,836, respectively. The increase to the reserve during the six months ended June 30, 2016 consisted of accrued interest of $211.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	(11) FAIR VALUE MEASURES Fair Value of Financial Instruments At June 30, 2016, the Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, a line of credit, and a term loan. 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. The carrying value of the debt balances approximate fair value because the variable interest rates reflect current market rates and terms. 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 June 30, 2016, and December 31, 2015, the following assets were measured at fair value on a recurring basis using the level of inputs shown: Fair Value Measurements Using: June 30, Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 5 $ 5 — — Fair Value Measurements Using: December 31, Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 375 $ 375 — —

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 2016
Concentrations [Abstract]
CONCENTRATIONS	(12) 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 June 30, 2016. At June 30, 2016 the balance of accounts receivable from three separate customers exceeded 10%. At December 31, 2015, the balance of accounts receivable from two separate customers exceeded 10%: June 30, December 31, Customer A 12 % 29 % Customer B 37 % 31 % Customer C 12 % 5 % No other customer account balances were more than 10% of accounts receivable at June 30, 2016 or December 31, 2015. 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 each of the three months ended June 30, 2016 and 2015, two customers individually accounted for over 10% of the quarterly revenues in each respective quarter: Three months ended Three months ended Customer A 9 % 23 % Customer B 27 % 14 % Customer C 12 % 5 % No other customers accounted for more than 10% of sales for the three months ended June 30, 2016 and 2015. If the Company loses one or more of the Company’s significant customers, it would have a material adverse effect on the Company’s financial condition and results of operations. For each of the six months ended June 30, 2016 and 2015, three customers individually accounted for over 10% of the quarterly revenues in each respective period: Six months ended June 30, Six months ended June 30, Customer A 10 % 21 % Customer B 24 % 11 % Customer C 11 % 12 % No other customers accounted for more than 10% of sales for the six months ended June 30, 2016 and 2015. If the Company loses one or more of the Company’s 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 June 30, 2016 and 2015, was approximately: Three months ended June 30, Three months ended June 30, United States 90 % 91 % Europe 6 % 8 % Other 4 % 1 % The percentage of sales by geographic region for the six months ended June 30, 2016 and 2015, was approximately: Six months ended June 30, Six months ended June 30, United States 89 % 92 % Europe 7 % 7 % Other 4 % 1 %

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	(13) COMMITMENTS AND CONTINGENCIES Operating leases The Company leases office and warehouse space, office equipment, and mall cart locations under operating leases that expire through 2023. Future minimum rental payments required under the operating leases at June 30, 2016 are as follows: Remaining 2016 $ 1,279 2017 2,173 2018 1,663 2019 1,452 2020 1,483 Thereafter 4,027 Total $ 12,077 For the three months ended June 30, 2016 and 2015, rent expense was $939 and $398, respectively, and is included in selling, general and administrative expense in the condensed consolidated statements of operations. For the six months ended June 30, 2016 and 2015, rent expense was $1,657 and $792, respectively, and is included in selling, general and administrative expense in the condensed consolidated statements of operations. 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 Peter Kravitz v. ZAGG Inc., U.S. Bankruptcy Court, District of Delaware, Adv. Pro. No. 15-51558(BLS). Patent/Trademark Litigation Inter Partes Review of Patent No. 8,567,596 B1 in the United States Patent and Trademark Office, Patent Trial and Appeal Board (“PTAB”), Case IPR2014-01262. Derivative Lawsuits Albert Pikk v. Robert G. Pedersen II, et al., U.S. District Court, District of Utah, Case No. 2:12-cv-01188 Rosenberg v. Robert G. Pedersen II, et al., U.S. District Court, District of Utah, Case No. 2:12-cv-01216 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 an 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 shareholder lawsuits. The Company responded to these requests and is cooperating with the staff although there has been no resolution to date. 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 records a liability when a particular contingency is probable and estimable. Other than those discussed above, the Company has not accrued for any loss at June 30, 2016 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.

Segment Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
SEGMENT REPORTING	(14) SEGMENT REPORTING The Company designs, produces, and distributes professional and premium creative product solutions in domestic and international markets. The Company’s operations are conducted in two reporting business segments: ZAGG and mophie. The Company defines its segments as those operations whose results its chief operating decision maker (“CODM”) regularly reviews to analyse performance and allocate resources. The results of operations of mophie are included in the Company’s results of operations beginning on March 3, 2016. The ZAGG segment designs and distributes screen protection, keyboards for tablet computers and other mobile devices, earbuds, headphones, Bluetooth speakers, mobile power, cables, and cases under the ZAGG, InvisibleShield, and iFrogz brands. Domestic operations are headquartered in Midvale, Utah, while international operations are directed from Shannon, Ireland. The mophie segment designs and distributes power cases, mobile power, and cables under the mophie brand. Domestic operations are headquartered in Tustin, California. The worldwide operations of mophie are directed from the Tustin office. The Company measures the results of its segments using, among other measures, each segment's net sales, gross profit, and operating income (loss). Net sales by segment are as follows: Three months ended June 30, Three months ended June 30, ZAGG segment $ 67,810 $ 66,689 mophie segment 32,023 — Net sales $ 99,833 $ 66,689 Six months ended June 30, Six months ended June 30, ZAGG segment $ 122,607 $ 123,905 mophie segment 39,659 — Net sales $ 162,266 $ 123,905 Gross profit by segment is as follows: Three months ended June 30, Three months ended June 30, ZAGG segment $ 26,645 $ 24,957 mophie segment 4,228 — Gross profit $ 30,873 $ 24,957 Six months ended June 30, Six months ended June 30, ZAGG segment $ 49,465 $ 47,914 mophie segment 5,137 — Gross profit $ 54,602 $ 47,914 Income (loss) from operations by segment is as follows: Three months ended June 30, Three months ended June 30, ZAGG segment $ 8,288 $ 6,253 mophie segment (9,640 ) — Income (loss) from operations $ (1,352 ) $ 6,253 Six months ended June 30, Six months ended June 30, ZAGG segment $ 8,701 $ 11,691 mophie segment (13,756 ) — Income (loss) from operations $ (5,055 ) $ 11,691 Total assets by segment are as follows: June 30, 2016 December 31, 2015 ZAGG segment $ 135,506 $ 179,541 mophie segment 179,183 — Total assets $ 314,689 $ 179,541

Nature of Operations and Basi21

Nature of Operations and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2016
Nature of Operations and Basis of Presentation [Abstract]
Business Combinations	Business Combinations Significant estimates in valuing certain intangible assets include but are not limited to: future expected cash flows related to each individual asset, market position of the tradenames, as well as assumptions about cash flow savings from the tradenames, determination of useful lives, and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates.
Goodwill	Goodwill However, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the two step analysis is performed, which incorporates a fair-value based approach. We determine the fair value of our reporting unit based on discounted cash flows and market approach analyses as considered necessary, and consider factors such as the economy, reduced expectations for future cash flows coupled with a decline in the market price of our stock and market capitalization for a sustained period as indicators for potential goodwill impairment. If the reporting unit’s carrying amount exceeds its estimated fair value, a second step must be performed to measure the amount of the goodwill impairment loss, if any. The second step compares the implied fair value of the reporting unit’s goodwill, determined in the same manner as the amount of goodwill recognized in a business combination, with the carrying amount of such goodwill. If the carrying amount of the reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess.
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 in exchange for those goods or services. The ASU 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. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606) – Narrow-Scope Improvements and Practical Expedients”. The amendments and practical expedients presented in the ASU aim to simplify the transition to the new standard, to provide practical expedients for transition and sales taxes, and to clarify certain aspects of the standard. The Company is currently evaluating the impact these ASU will have on its 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 annual and interim periods beginning after December 15, 2016 for public business entities. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In February 2016, the FASB issued its new lease accounting standard, which requires lessees to recognize most leases, including operating leases, on-balance sheet via a right of use asset and lease liability. Lessees are allowed to account for short-term leases (i.e., leases with a term of 12 months or less) off-balance sheet, consistent with current operating lease accounting. A number of other significant changes to lease accounting have been effected through the issuance of this standard. The new standard is effective for public companies for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In April 2016, the FASB issued ASU No. 2016-11, which simplified accounting for share-based payments. The ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those years for public business entities. Early adoption is permitted in any interim or annual period provided that the entire ASU is adopted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

Acquisition of Mophie Inc (Tabl

Acquisition of Mophie Inc (Tables)	6 Months Ended
	Jun. 30, 2016
Acquisition of Mophie Inc [Abstract]
Schedule of purchase consideration	Cash consideration $ 100,000 Preliminary working capital adjustment (23,478 ) Preliminary contingent payments 6,791 Preliminary fair value of earnout consideration 1,599 Total purchase price $ 84,912
Schedule of the preliminary estimates of the fair values of the identifiable assets acquired and liabilities assumed	Cash and cash equivalents $ 1,779 Trade receivables (gross contractual receivables of $12,824) 12,823 Inventories 27,313 Prepaid expenses and other assets 1,073 Income tax receivable 11,537 Deferred tax assets 11,416 Property and equipment 10,196 Land held for sale 325 Amortizable identifiable intangible assets 51,040 Goodwill 28,725 Accounts payable (37,359 ) Income tax payable (196 ) Accrued liabilities (3,653 ) Deferred revenue (10 ) Sales returns liability (29,584 ) Other noncurrent liabilities (513 ) Total $ 84,912 March 31, Change in Preliminary Estimates June 30, Cash and cash equivalents $ 1,779 $ - $ 1,779 Trade receivables 13,483 (660 ) 12,823 Inventories 37,290 (9,977 ) 27,313 Prepaid expenses and other assets 1,073 - 1,073 Income tax receivable 11,548 (11 ) 11,537 Deferred tax assets 24,925 (13,509 ) 11,416 Property and equipment 10,196 - 10,196 Land held for sale 325 - 325 Amortizable identifiable intangible assets 45,463 5,577 51,040 Goodwill 14,092 14,633 28,725 Accounts payable (38,121 ) 762 (37,359 ) Income tax payable (196 ) - (196 ) Accrued liabilities (6,092 ) 2,439 (3,653 ) Deferred revenue (10 ) - (10 ) Sales returns liability (17,150 ) (12,434 ) (29,584 ) Other noncurrent liabilities (18,491 ) 17,978 (513 ) Total $ 80,114 $ 4,798 $ 84,912
Schedule of identifiable intangible assets	Intangible asset class Weighted-average amortization period Tradenames $ 19,648 10.0 years Patents and technology 19,960 7.4 years Customer relationships 8,648 5.0 years Non-compete agreements 2,384 5.0 years Backlog 400 0.3 years Total $ 51,040
Schedule of pro forma results from operations	3 Months Ended June 30, Net sales $ 125,155 Net income $ 2,181 Basic earnings per share $ 0.07 Diluted earnings per share $ 0.07 6 Months Ended June 30, June 30, Net sales $ 179,592 $ 234,935 Net loss $ (7,155 ) $ (1,112 ) Basic loss per share $ (0.25 ) $ (0.04 ) Diluted loss per share $ (0.25 ) $ (0.04 )

Debt and Letters of Credit (Tab

Debt and Letters of Credit (Tables)	6 Months Ended
	Jun. 30, 2016
Debt and Letters of Credit [Abstract]
Scedule of Contractual future payments of credit and security agreement	Line of Credit Term Total Remaining 2016 $ — $ 3,125 $ 3,125 2017 — 6,250 6,250 2018 — 6,250 6,250 2019 — 6,250 6,250 2020 — 1,562 1,562 Thereafter 50,006 — 50,006 Total $ 50,006 $ 23,437 $ 73,443

Intangible Assets (Tables)

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Intangible Assets [Abstract]
Schedule of definite-lived intangibles	As of June 30, 2016 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ 8,648 $ (32,012 ) $ 18,136 7.5 years Tradenames 12,921 19,648 (8,045 ) 24,524 9.8 years Patents and technology 6,003 19,960 (4,354 ) 21,609 8.5 years Non-compete agreements 4,100 2,384 (4,259 ) 2,225 4.9 years Other 324 400 (696 ) 28 2.0 years Total amortizable assets $ 64,848 $ 51,040 $ (49,366 ) $ 66,522 8.2 years As of December 31, 2015 Gross Carrying Amount Acquisitions Accumulated Amortization Net Carrying Amount Weighted Average Amortization Period Customer relationships $ 41,500 $ — $ (29,150 ) $ 12,350 8.0 years Tradenames 12,921 — (6,253 ) 6,668 9.5 years Patents and technology 5,805 198 (2,381 ) 3,622 11.9 years Non-compete agreements 4,100 — (3,729 ) 371 4.8 years Other 324 — (290 ) 34 4.1 years Total amortizable assets $ 64,650 $ 198 $ (41,803 ) $ 23,045 8.4 years
Schedule of estimated future amortization expense	Remaining 2016 $ 8,393 2017 14,443 2018 11,573 2019 10,516 2020 7,609 Thereafter 13,988 Total $ 66,522

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
Schedule of inventories	June 30, December 31, Finished goods $ 67,598 $ 44,764 Raw materials 1,258 1,148 Total inventories $ 68,856 $ 45,912

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings 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 June 30, June 30, Net (loss) income $ (1,046 ) $ 3,691 Weighted average shares outstanding: Basic 28,126 29,521 Dilutive effect of stock options, restricted stock units, and warrants — 233 Diluted 28,126 29,754 Earnings (loss) per share: Basic $ (0.04 ) $ 0.13 Diluted $ (0.04 ) $ 0.12 Six months ended June 30, June 30, Net (loss) income $ (4,335 ) $ 6,892 Weighted average shares outstanding: Basic 27,918 29,451 Dilutive effect of stock options, restricted stock units, and warrants — 265 Diluted 27,918 29,716 Earnings (loss) per share: Basic $ (0.16 ) $ 0.23 Diluted $ (0.16 ) $ 0.23

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements [Abstract]
Schedule of assets and liabilities measured at fair value on recurring basis	Fair Value Measurements Using: June 30, Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 5 $ 5 — — Fair Value Measurements Using: December 31, Level 1 Level 2 Level 3 Money market funds included in cash equivalents $ 375 $ 375 — —

Concentrations (Tables)

Concentrations (Tables)	6 Months Ended
	Jun. 30, 2016
Concentrations [Abstract]
Schedules of concentration of accounts receivable and sales	June 30, December 31, Customer A 12 % 29 % Customer B 37 % 31 % Customer C 12 % 5 % Three months ended Three months ended Customer A 9 % 23 % Customer B 27 % 14 % Customer C 12 % 5 % Six months ended June 30, Six months ended June 30, Customer A 10 % 21 % Customer B 24 % 11 % Customer C 11 % 12 %
Schedule of percentage of sales by geographic region	Three months ended June 30, Three months ended June 30, United States 90 % 91 % Europe 6 % 8 % Other 4 % 1 % Six months ended June 30, Six months ended June 30, United States 89 % 92 % Europe 7 % 7 % Other 4 % 1 %

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies [Abstract]
Schedule of future minimum rental payments required under the operating leases	Remaining 2016 $ 1,279 2017 2,173 2018 1,663 2019 1,452 2020 1,483 Thereafter 4,027 Total $ 12,077

Segment Reporting (Tables)

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of segment reporting information	Three months ended June 30, Three months ended June 30, ZAGG segment $ 67,810 $ 66,689 mophie segment 32,023 — Net sales $ 99,833 $ 66,689 Six months ended June 30, Six months ended June 30, ZAGG segment $ 122,607 $ 123,905 mophie segment 39,659 — Net sales $ 162,266 $ 123,905 Three months ended June 30, Three months ended June 30, ZAGG segment $ 26,645 $ 24,957 mophie segment 4,228 — Gross profit $ 30,873 $ 24,957 Six months ended June 30, Six months ended June 30, ZAGG segment $ 49,465 $ 47,914 mophie segment 5,137 — Gross profit $ 54,602 $ 47,914 Three months ended June 30, Three months ended June 30, ZAGG segment $ 8,288 $ 6,253 mophie segment (9,640 ) — Income (loss) from operations $ (1,352 ) $ 6,253 Six months ended June 30, Six months ended June 30, ZAGG segment $ 8,701 $ 11,691 mophie segment (13,756 ) — Income (loss) from operations $ (5,055 ) $ 11,691 June 30, 2016 December 31, 2015 ZAGG segment $ 135,506 $ 179,541 mophie segment 179,183 — Total assets $ 314,689 $ 179,541

Nature of Operations and Basi31

Nature of Operations and Basis of Presentation (Details) - USD ($) $ in Thousands	Mar. 03, 2016	Feb. 29, 2016	Jun. 30, 2016
Nature of Operations and Basis of Presentation [Abstract]
Cash consideration on acquired	$ 100,000
Lease term		P12M
Working capital adjustment			$ 23,478

Acquisition of Mophie Inc (Deta

Acquisition of Mophie Inc (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Acquisition of Mophie Inc [Abstract]
Cash consideration	$ 100,000
Preliminary working capital adjustment	(23,478)
Preliminary contingent payments	6,791
Preliminary fair value of earnout consideration	1,599
Total purchase price	$ 84,912

Acquisition of Mophie Inc (De33

Acquisition of Mophie Inc (Details 1) - Mophie Inc [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2016
Business Acquisition [Line Items]
Cash and cash equivalents	$ 1,779	$ 1,779
Trade receivables (gross contractual receivables of $12,824)	12,823	13,483
Inventories	27,313	37,290
Prepaid expenses and other assets	1,073	1,073
Income tax receivable	11,537	11,548
Deferred tax assets	11,416	24,925
Property and equipment	10,196	10,196
Land held for sale	325	325
Amortizable identifiable intangible assets	51,040	45,463
Goodwill	28,725	14,092
Accounts payable	(37,359)	(38,121)
Income tax payable	(196)	(196)
Accrued liabilities	(3,653)	(6,092)
Deferred revenue	(10)	(10)
Sales returns liability	(29,584)	(17,150)
Other noncurrent liabilities	(513)	(18,491)
Total	84,912	$ 80,114
Change in Preliminary Estimates [Member]
Business Acquisition [Line Items]
Cash and cash equivalents
Trade receivables (gross contractual receivables of $12,824)	(660)
Inventories	(9,977)
Prepaid expenses and other assets
Income tax receivable	(11)
Deferred tax assets	(13,509)
Property and equipment
Land held for sale
Amortizable identifiable intangible assets	5,577
Goodwill	14,633
Accounts payable	762
Income tax payable
Accrued liabilities	2,439
Deferred revenue
Sales returns liability	(12,434)
Other noncurrent liabilities	17,978
Total	$ 4,798

Acquisition of Mophie Inc (De34

Acquisition of Mophie Inc (Details 2) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Business Acquisition [Line Items]
Intangible asset class	$ 51,040
Tradenames [Member]
Business Acquisition [Line Items]
Intangible asset class	$ 19,648
Weighted-average amortization period	10 years
Patents and technology [Member]
Business Acquisition [Line Items]
Intangible asset class	$ 19,960
Weighted-average amortization period	7 years 4 months 24 days
Customer relationships [Member]
Business Acquisition [Line Items]
Intangible asset class	$ 8,648
Weighted-average amortization period	5 years
Non-compete agreements [Member]
Business Acquisition [Line Items]
Intangible asset class	$ 2,384
Weighted-average amortization period	5 years
Backlog [Member]
Business Acquisition [Line Items]
Intangible asset class	$ 400
Weighted-average amortization period	3 months 18 days

Acquisition of Mophie Inc (De35

Acquisition of Mophie Inc (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Acquisition of Mophie Inc [Abstract]
Net sales	$ 125,155	$ 179,592	$ 234,935
Net income (loss)	$ 2,181	$ (7,155)	$ (1,112)
Basic earnings (loss) per share	$ 0.07	$ (0.25)	$ (0.04)
Diluted earnings (loss) per share	$ 0.07	$ (0.25)	$ (0.04)

Acquisition of Mophie Inc (De36

Acquisition of Mophie Inc (Details Textual) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Feb. 02, 2016
Aquisition of Mophie (Textual)
Cash consideration				$ 100,000
Issuance of common stock value						$ 5,000
Paid to principal shareholders in escrow account	$ 2,000		$ 2,000	2,000
Recover amount				10,000
Purchase price				84,912
Acquisition related costs	305			2,322
Net loss	(1,046)	3,691		$ (4,335)	6,892
Mophie Inc [Member]
Aquisition of Mophie (Textual)
Acquisition date				Mar. 3, 2016
Cash consideration				$ 100,000
Earn out consideration				20,000
Contractual receivable amount	12,824		12,824	12,824
Acquisition related costs	305			2,322
Net sales	32,023		39,659
Net loss	$ 9,613		$ 13,727
Pro forma net income amortization expense		2,609		4,412	5,418
Business acquisition pro forma information				4,988
Amortization of debt issuance cost		$ 538		$ 1,007	$ 1,081

Debt and Letters of Credit (Det

Debt and Letters of Credit (Details) $ in Thousands	Jun. 30, 2016USD ($)
Short-term Debt [Line Items]
Remaining 2,016	$ 3,125
2,017	6,250
2,018	6,250
2,019	6,250
2,020	1,562
Thereafter	50,006
Total	73,443
Line of Credit [Member]
Short-term Debt [Line Items]
Remaining 2,016
2,017
2,018
2,019
2,020
Thereafter	50,006
Total	50,006
Term Loan [Member]
Short-term Debt [Line Items]
Remaining 2,016	3,125
2,017	6,250
2,018	6,250
2,019	6,250
2,020	1,562
Thereafter
Total	$ 23,437

Debt and Letters of Credit (D38

Debt and Letters of Credit (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Line Of Credit Facility [Line Items]
Unused line fees	$ 14	$ 9	$ 22	$ 18
Weighted average interest rate on all outstanding borrowings	1.98%	1.13%	1.98%	1.13%
Effective interest rate	3.02%		3.02%
Incurred and capitalization direct cost			$ 1,144
Line of Credit [Member]
Line Of Credit Facility [Line Items]
Line of credit maturity date			Mar. 2, 2021
Line of credit interest rate, description			Interest on the Line of Credit will accrue at the base rate plus 0.50% or LIBOR plus 1.50%.
Line of credit fee Percentage			0.20%
Revolving credit commitment			$ 85,000
Term Loan [Member]
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 25,000		$ 25,000
Line of credit maturity date			Mar. 2, 2020
Line of credit interest rate, description			Interest on the Term Loan will accrue at the base rate plus 1.0% or at a rate of LIBOR plus 2.0%.
Line of credit facility principal Payment			$ 521
Credit and Security Agreement [Member]
Line Of Credit Facility [Line Items]
Incurred and capitalization direct cost			1,144
Cost related to line of credit			884
Cost related to long-term debt			260
Amortization of capitalization costs	60		$ 81
Line of credit fee Percentage			0.125%
Wells Fargo Bank [Member]
Line Of Credit Facility [Line Items]
Amortization of capitalization costs	$ 17			$ 33

Intangible Assets (Details )

Intangible Assets (Details ) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 64,848	$ 64,650
Acquisitions	51,040	198
Accumulated Amortization	(49,366)	(41,803)
Net Carrying Amount	$ 66,522	$ 23,045
Weighted Average Amortization Period	8 years 2 months 12 days	8 years 4 months 24 days
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 41,500	$ 41,500
Acquisitions	8,648
Accumulated Amortization	(32,012)	(29,150)
Net Carrying Amount	$ 18,136	$ 12,350
Weighted Average Amortization Period	7 years 6 months	8 years
Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,921	$ 12,921
Acquisitions	19,648
Accumulated Amortization	(8,045)	(6,253)
Net Carrying Amount	$ 24,524	$ 6,668
Weighted Average Amortization Period	9 years 9 months 18 days	9 years 6 months
Patents and technology [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 6,003	$ 5,805
Acquisitions	19,960	198
Accumulated Amortization	(4,354)	(2,381)
Net Carrying Amount	$ 21,609	$ 3,622
Weighted Average Amortization Period	8 years 6 months	11 years 10 months 24 days
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,100	$ 4,100
Acquisitions	2,384
Accumulated Amortization	(4,259)	(3,729)
Net Carrying Amount	$ 2,225	$ 371
Weighted Average Amortization Period	4 years 10 months 24 days	4 years 9 months 18 days
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 324	$ 324
Acquisitions	400
Accumulated Amortization	(696)	(290)
Net Carrying Amount	$ 28	$ 34
Weighted Average Amortization Period	2 years	4 years 1 month 6 days

Intangible Assets (Details 1)

Intangible Assets (Details 1) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets [Abstract]
Remaining 2,016	$ 8,393
2,017	14,443
2,018	11,573
2,019	10,516
2,020	7,609
Thereafter	13,988
Total	$ 66,522	$ 23,045

Intangible Assets (Details Text

Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 4,765	$ 2,134	$ 7,511	$ 4,268
Acquired technology [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expenses	$ 30	$ 29	$ 52	$ 50

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventories [Abstract]
Finished goods	$ 67,598	$ 44,764
Raw materials	1,258	1,148
Total inventories	$ 68,856	$ 45,912

Inventories (Details Textual)

Inventories (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventories (Textual)
Inventory deposits with third-party manufacturers	$ 218	$ 813

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Payment of withholdings on restricted stock units			$ 621	$ 718
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock granted	380	0	713	545
Weighted average fair value of restricted stock per share	$ 5.40		$ 7.33	$ 6.51
Number of restricted stock acheived			418
Number of restricted shares vested	15		224
Shares granted in excess of original grant			7
Number of restricted shares forfeited			52
Payment of withholdings on restricted stock units			$ 621	$ 718
Incremental expense		$ 117
Maximum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restricted stock vested			3 years
Minimum [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of restricted stock vested			9 months
Selling, general and administrative expenses [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity-based compensation expense	$ 957	$ 934	$ 2,291	$ 1,810
Executives and employees [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock granted			418	268

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Taxes (Textual)
Effective tax rate	46.00%	40.00%	28.00%	41.00%
Foreign jurisdictions tax rate			0.00%
Federal statutory rate			35.00%

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net (loss) income	$ (1,046)	$ 3,691	$ (4,335)	$ 6,892
Weighted average shares outstanding:
Basic	28,126	29,521	27,918	29,451
Dilutive effect of stock options, restricted stock units, and warrants		233		265
Diluted	28,126	29,754	27,918	29,716
Earnings (loss) per share:
Basic	$ (0.04)	$ 0.13	$ (0.16)	$ 0.23
Diluted	$ (0.04)	$ 0.12	$ (0.16)	$ 0.23

Earnings Per Share (Details Tex

Earnings Per Share (Details Textual) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Warrants, Restricted Stock Units, or Stock Options [Member]
Earnings per share (Textual)
Shares of common stock were not considered in calculating diluted earnings per share	895	100	895	270
Restricted Stock Units [Member]
Earnings per share (Textual)
Shares of common stock were not considered in calculating diluted earnings per share		466		466

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Treasury stock (Textual)
Number of repurchase of shares authorized by board of directors					$ 20,000
Repurchase of common stock for shares consideration		42		42
Repurchase of common stock for cash consideration		$ 323		$ 323
Repurchase of common stock commissions paid to brokers		$ 1		$ 1
Repurchase of common stock weighted average price per share		$ 7.68		$ 7.68

Note Receivable (Details Textua

Note Receivable (Details Textual) - USD ($) $ in Thousands	Oct. 02, 2015	May 21, 2015	Mar. 23, 2011	Jun. 30, 2016	Jul. 13, 2015	Jun. 29, 2015	Jan. 31, 2012	Dec. 31, 2009
Note receivable (Textual)
Advance payments for ZAGGbox in aggregate amount					$ 50	$ 50
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
Litigation settlement amount	$ 1,396	$ 4,735
Litigation settlement interest rate		12.00%
ZAGG products [Member]
Note receivable (Textual)
Advance payments for ZAGGbox in aggregate amount			$ 3,900		$ 638
Original principal amount			$ 4,126
Teleportall, LLC ('Teleportall') | Promissory note (the 'Note') [Member]
Note receivable (Textual)
Fixed rate			4.00%
Original principal amount			$ 4,126
Description of reference rate			LIBOR
Percentage of the net profits of selling product			50.00%
Teleportall, LLC ('Teleportall') | ZAGG products [Member]
Note receivable (Textual)
Initial purchase order price for ZAGGbox units								$ 3,500
Advance payments for ZAGGbox in aggregate amount								$ 3,900
Zagg Inc [Member]
Note receivable (Textual)
Advance payments for ZAGGbox in aggregate amount						298
Real estate property other assets						801
Asset held for sale						$ 1,099

Note Receivable (Details Text50

Note Receivable (Details Textual 1) - USD ($) shares in Thousands, $ in Thousands	Jul. 13, 2015	Dec. 31, 2011	Jun. 30, 2016	Dec. 31, 2015	Jun. 29, 2015	May 31, 2012	Jan. 31, 2012	Mar. 23, 2011
Note receivable (Textual)
Number of shares issued in the process of foreclosure		45
Value of shares issued in the process of foreclosure		$ 496
Foreclosed on real estate property valued					$ 1,099		$ 250
Foreclosed on stock and warrants						$ 516
Note receivable carrying amount			$ 50
Notes receivable net	$ 50				50
Reduced balance	$ 0
Unpaid fee			5,047	$ 4,836
Accrued interest			493
Reduced amount of reserve			639
Increase in accured interest			211
Zagg Inc [Member]
Note receivable (Textual)
Number of shares issued in the process of foreclosure	80
Value of shares issued in the process of foreclosure	$ 688
Notes receivable net					$ 298
Reduced balance	0
ZAGG products [Member]
Note receivable (Textual)
Notes receivable net	$ 638							$ 3,900
ZAGG products [Member] | Minimum [Member]
Note receivable (Textual)
Estimated value of the underlying collateral security			135
ZAGG products [Member] | Maximum [Member]
Note receivable (Textual)
Estimated value of the underlying collateral security			$ 270

Fair Value Measurements (Detail

Fair Value Measurements (Details) - Fair value measurements recurring basis [Member] - Money market funds [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Estimate of Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	$ 5	$ 375
Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	5	375
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) - Customer Concentration Risk [Member]	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage			10.00%		10.00%
Accounts Receivable [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk percentage			12.00%		29.00%
Accounts Receivable [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk percentage			37.00%		31.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk percentage			12.00%		5.00%
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%	10.00%	10.00%
Sales Revenue, Net [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk percentage	9.00%	23.00%	10.00%	21.00%
Sales Revenue, Net [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk percentage	27.00%	14.00%	24.00%	11.00%
Sales Revenue, Net [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	5.00%	11.00%	12.00%

Concentrations (Details 1)

Concentrations (Details 1) - Sales revenue [Member]	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
United States [Member]
Concentration Risk [Line Items]
Percentage of sales	90.00%	91.00%	89.00%	92.00%
Europe [Member]
Concentration Risk [Line Items]
Percentage of sales	6.00%	8.00%	7.00%	7.00%
Other [Member]
Concentration Risk [Line Items]
Percentage of sales	4.00%	1.00%	4.00%	1.00%

Concentrations (Details Textual

Concentrations (Details Textual) - Customer Concentration Risk [Member] - Customer	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounts Receivable [Member]
Concentrations (Textual)
Percentage of sales			10.00%		10.00%
Number of customer			3		2
Accounts revenues in percentage of all customers			No other customer account balances were more than 10% of accounts receivable.		No other customer account balances were more than 10% of accounts receivable.
Sales Revenue, Net [Member]
Concentrations (Textual)
Percentage of sales	10.00%	10.00%	10.00%	10.00%
Number of customer	2	2	3	3
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.

Commitments and Contingencies55

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2016USD ($)
Commitments and Contingencies [Abstract]
Remaining 2,016	$ 1,279
2,017	2,173
2,018	1,663
2,019	1,452
2,020	1,483
Thereafter	4,027
Total	$ 12,077

Commitments and Contingencies56

Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	Oct. 02, 2015	May 21, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Commitments and contingencies (Textual)
Rent expense			$ 939	$ 398	$ 1,657	$ 792
Litigation settlement amount	$ 1,396	$ 4,735
Litigation settlement interest rate		12.00%
Complaint against the company					Peter Kravitz v. ZAGG Inc., U.S. Bankruptcy Court, District of Delaware, Adv. Pro. No. 15-51558(BLS). On October 29, 2015, Kravitz, as Liquidating Trustee (the "Trustee") of the RSH Liquidating Trust (formally known as RadioShack) filed a complaint against the Company, alleging, among other things, that the Company received preference payments for product the Company sold and delivered to RadioShack in the amount of $1,834 pursuant to Section 547 of the Bankruptcy Code.
Unamortization acquisition costs					$ 2,095

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 99,833	$ 66,689	$ 162,266	$ 123,905
Gross profit	30,873	24,957	54,602	47,914
Income (loss) from operations	(1,352)	6,253	(5,055)	11,691
Total assets	314,689		314,689		$ 179,541
ZAGG segment [Member]
Segment Reporting Information [Line Items]
Net sales	67,810	66,689	122,607	123,905
Gross profit	26,645	24,957	49,465	47,914
Income (loss) from operations	8,288	6,253	8,701	11,691
Total assets	135,506		135,506		179,541
mophie segment [Member]
Segment Reporting Information [Line Items]
Net sales	32,023		39,659
Gross profit	4,228		5,137
Income (loss) from operations	(9,640)		(13,756)
Total assets	$ 179,183		$ 179,183

Segment Reporting (Details Text

Segment Reporting (Details Textual)	6 Months Ended
	Jun. 30, 2016Segment
Segment Reporting (Textual)
Number of operating segments	2