ZAGG (ZAGG) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 01, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ZAGG Inc
Entity Central Index Key	1,296,205
Trading Symbol	zagg
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		27,961,276

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 4,303	$ 11,604
Accounts receivable, net of allowances of $455 in 2017 and $824 in 2016	60,181	83,835
Inventories	75,701	72,769
Prepaid expenses and other current assets	3,266	3,414
Income tax receivable	3,672	2,814
Total current assets	147,123	174,436
Property and equipment, net of accumulated depreciation of $19,793 in 2017 and $18,371 in 2016	16,740	17,755
Goodwill	12,272	12,272
Intangible assets, net of accumulated amortization of $57,514 in 2017 and $55,298 in 2016	48,368	53,362
Deferred income tax assets	50,603	50,363
Other assets	1,476	2,541
Total assets	276,582	310,729
Current liabilities:
Accounts payable	51,810	85,022
Accrued liabilities	22,876	22,216
Sales returns liability	25,672	28,373
Accrued wages and wage related expenses	6,457	6,169
Deferred revenue	226	273
Line of credit	40,631	31,307
Current portion of long-term debt, net of deferred loan costs of $65 in 2017 and 2016	10,484	10,484
Total current liabilities	158,156	183,844
Noncurrent portion of long-term debt, net of deferred loan costs of $125 in 2017 and $141 in 2016	8,076	9,623
Total liabilities	166,232	193,467
Stockholders' equity:
Common stock, $0.001 par value; 100,000 shares authorized; 34,044 and 33,840 shares issued in 2017 and 2016, respectively	34	34
Additional paid-in capital	93,212	92,782
Accumulated other comprehensive loss	(1,826)	(2,114)
Treasury stock, 6,065 and 5,831 common shares in 2017 and 2016 respectively, at cost	(37,637)	(36,145)
Retained earnings	56,567	62,705
Total stockholders' equity	110,350	117,262
Total liabilities and stockholders' equity	$ 276,582	$ 310,729

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Balance Sheets [Abstract]
Allowances for doubtful accounts	$ 455	$ 824
Accumulated depreciation on property and equipment	19,793	18,371
Accumulated amortization on intangible assets	57,514	55,298
Deferred loan costs, current	65	65
Deferred loan costs, noncurrent	$ 125	$ 141
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	34,044	33,840
Treasury stock, common shares	6,065	5,831

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Operations [Abstract]
Net sales	$ 92,946	$ 62,432
Cost of sales	64,340	38,703
Gross profit	28,606	23,729
Operating expenses:
Advertising and marketing	3,006	2,914
Selling, general and administrative	27,054	19,755
Transaction costs	215	2,017
Impairment of intangible asset	1,959
Amortization of long-lived intangibles	3,021	2,746
Total operating expenses	35,255	27,432
Loss from operations	(6,649)	(3,703)
Other expense:
Interest expense	(490)	(188)
Other expense	(20)	(200)
Total other expense	(510)	(388)
Loss before provision for income taxes	(7,159)	(4,091)
Income tax benefit	1,021	801
Net loss	$ (6,138)	$ (3,290)
Loss per share:
Basic loss per share	$ (0.22)	$ (0.12)
Diluted loss per share	$ (0.22)	$ (0.12)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (6,138)	$ (3,290)
Other comprehensive income, net of tax:
Foreign currency translation gain	288	320
Total other comprehensive income	288	320
Comprehensive loss	$ (5,850)	$ (2,970)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities
Net loss	$ (6,138)	$ (3,290)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	670	1,336
Excess tax benefits related to share-based payments		(570)
Depreciation and amortization	5,781	5,430
Deferred income taxes	(238)	(960)
Amortization of deferred loan costs	60	20
Impairment of intangible assets	1,959
Changes in operating assets and liabilities, net of acquisition:
Accounts receivable, net	23,732	18,097
Inventories	(2,828)	(1,550)
Prepaid expenses and other current assets	153	1,589
Other assets	1,022	(16)
Income taxes receivable	(858)	1,200
Accounts payable	(33,279)	(19,156)
Accrued liabilities	1,318	(1,705)
Accrued wages and wage related expenses	(300)	(184)
Deferred revenue	(47)	8
Sales returns liability	(2,710)	(4,235)
Net cash used in operating activities	(11,703)	(3,986)
Cash flows from investing activities
Purchase of property and equipment (net of amounts acquired)	(1,820)	(2,826)
Purchase of mophie, net of cash acquired		(74,743)
Net cash used in investing activities	(1,820)	(77,569)
Cash flows from financing activities
Payment of debt issuance costs		(1,022)
Proceeds from revolving credit facility	122,557	66,547
Payments on revolving credit facility	(113,233)	(16,003)
Proceeds from term loan facility		25,000
Payments on term loan facility	(1,563)
Purchase of treasury stock	(1,492)
Payment of withholdings on restricted stock units	(240)	(621)
Proceeds from exercise of warrants and options		54
Excess tax benefits related to share-based payments		570
Net cash provided by financing activities	6,029	74,525
Effect of foreign currency exchange rates on cash equivalents	193	190
Net decrease in cash and cash equivalents	(7,301)	(6,840)
Cash and cash equivalents at beginning of the period	11,604	13,002
Cash and cash equivalents at end of the period	4,303	6,162
Supplemental disclosure of cash flow information
Cash paid during the period for interest	417	17
Cash paid (refunded) during the period for taxes, net	76	(1,090)
Supplemental schedule of noncash investing and financing activities
Purchase of fixed assets financed through accounts payable	676	1,480
Debt issuance costs financed through accounts payable		$ 106

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2017
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, power cases, power management, personal audio, mobile keyboards, and cases 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 (consisting only of normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the financial position, the results of operations, and cash flows of the Company for the periods presented. The Company suggests that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s 2016 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"). 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 3 and 13 for additional details on the acquisition and the Company's reportable 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 Coöperatie 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, 2016. Recent Accounting Pronouncements (amounts in thousands) 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. The ASU may be adopted utilizing one of two methods. The first method is to adopt the ASU by recording the effect of the guidance in the ASU retrospectively to each prior period presented in the period of adoption. The second method is to adopt the ASU by recording the effect of the guidance in the ASU retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. 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 currently anticipates adopting the standard using the modified retrospective approach with the cumulative effect of adoption recorded at the date of initial application. The Company is currently evaluating the impact the 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 has concluded that this ASU did not have a material impact on our financial position or results of operations. 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 amendments in the ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. During the year ended December 31, 2016, the Company adopted the ASU using the retrospective approach resulting in recording deferred tax assets as non-current for current and prior periods presented. This adoption does not impact our results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, 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 requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities 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, including whether to elect the practical expedients outlined in the new standard. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” 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 new standard contains several amendments that simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. The Company has adopted ASU 2016-09 as of the beginning of the quarter ended March 31, 2017. For the quarter ended March 31, 2017, the Company applied the amendment relating to the recognition of excess tax benefits and deficiencies on a prospective basis and, accordingly, has recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as discrete items resulting in the recognition of income tax expense of $171. The Company has not recorded a cumulative-effect adjustment to retained earnings as of the beginning of the year because all tax benefits had previously been recognized when the tax deductions related to stock compensation were utilized to reduce taxes payable. The Company has elected to apply the amendment related to the presentation of cash flows for excess tax benefits on a prospective basis and no prior periods have been adjusted. The Company’s financial position or results of operations were not impacted by amendments related to the statutory tax withholding requirement and, accordingly, no adjustment has been recorded. The Company will continue to classify cash remitted to the tax authorities as a financing activity as now required by the amendments in the ASU. The ASU permits a policy election to either record forfeitures as they occur or estimate forfeitures consistent with historical U.S. GAAP. The Company has elected to record forfeitures as they occur, which did not have a material impact on our financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which addresses eight classification issues related to the statement of cash flows: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon bonds; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The ASU is effective for public business entities for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendments in the ASU should be applied using a retrospective transition method to each period presented. If it is impracticable for the amendments to be applied retrospectively for some of the issues, the amendments for those issues may be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including the method of adoption. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires companies to include cash and cash equivalents that have restrictions on withdrawal or use in total cash and cash equivalents on the statement of cash flows. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company performs an annual goodwill impairment assessment and will elect to early adopt this standard in the current year when the assessment is performed.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
INVENTORIES	(2) INVENTORIES At March 31, 2017, and December 31, 2016, inventories consisted of the following: March 31, 2017 December 31, 2016 Finished goods $ 75,417 $ 72,490 Raw materials 284 279 Total inventories $ 75,701 $ 72,769 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers at March 31, 2017 and December 31, 2016 of $625 and $437, respectively.

Acquisition of Mophie Inc.

Acquisition of Mophie Inc.	3 Months Ended
	Mar. 31, 2017
Acquisition of Mophie Inc. [Abstract]
ACQUISITION OF MOPHIE INC.	(3) 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. 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 period March 3, 2016, through March 31, 2016, mophie generated net sales of $7,636 and had a net loss before tax of $4,116. Pro forma Results from Operations The following unaudited pro-forma results of operations for the three months ended March 31, 2016 give pro forma effect as if the acquisition had occurred at the beginning of the periods presented, 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 values at the date of purchase. 3 Months Ended March 31, Net sales $ 79,759 Net loss $ (6,395 ) Basic net loss per share $ (.23 ) Diluted net loss per share $ (.23 ) 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 for the dates indicated. 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 March 31, 2016, pro forma net loss includes projected amortization expense of $2,392. In addition, the Company included interest from the new credit facility and amortization of debt issuance costs for the three months ended March 31, 2016 of $493. Material non-recurring adjustments excluded from the pro forma financial information above consists of the $6,937 step up of mophie inventory to its fair value, which was recorded as an unfavorable adjustment to cost of goods sold during the six months following the acquisition date. 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.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets [Abstract]
GOODWILL AND INTANGIBLE ASSETS	(4) GOODWILL AND INTANGIBLE ASSETS Goodwill There were no additions to nor impairment of goodwill for the quarter-ended March 31, 2017. The balance of goodwill as of March 31, 2017 was $12,272. Long-lived Intangible Assets The following table summarizes the changes in gross long-lived intangible assets: Gross balance at December 31, 2016 $ 108,659 Impairment loss on patent (2,777 ) Gross balance at March 31, 2017 $ 105,882 On April 11, 2017, the Company received a final court order stating that the claims of one of its patents were either unpatentable or cancelled. Accordingly, management determined that the patent’s carrying value was not recoverable through future cash flows and was impaired as of March 31, 2017. Consequently, for the period ended March 31, 2017, the Company recorded an impairment loss consisting of a reduction of gross carrying amount of $2,777, accumulated amortization of $818, and net carrying value of $1,959 to reduce the net carrying value of the cancelled patent to $0. Long-lived intangible assets, net of amortization as of March 31, 2017 and December 31, 2016, were as follows: March 31, December 31, Customer relationships $ 13,274 $ 14,612 Tradenames 20,593 21,506 Patents and technology 13,075 15,727 Non-compete agreements 1,407 1,497 Other 19 20 Total amortizable intangible assets $ 48,368 $ 53,362

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes [Abstract]
INCOME TAXES	(5) INCOME TAXES The Company’s effective tax rate was 14.3% and 19.6% for the three months ended March 31, 2017 and 2016, respectively. The decrease in the effective tax rate was primarily due to a discrete item recognized in the quarter for a true up of a deferred amount for stock compensation. This was partially offset by the benefit of a change to the state rate in taxes caused by the acquisition of mophie and the resulting change in the mix of state apportionment factors. The effective tax rate was also affected by income in foreign jurisdictions that had losses in prior years. The Company’s effective tax rate will generally differ from the U.S. Federal statutory rate of 35%, due to state taxes, permanent items, and the Company’s global tax strategy.

Fair Value Measures

Fair Value Measures	3 Months Ended
	Mar. 31, 2017
Fair Value Measures [Abstract]
FAIR VALUE MEASURES	(6) FAIR VALUE MEASURES Fair Value of Financial Instruments At March 31, 2017, the Company’s financial instruments included cash and cash equivalents, accounts receivable, accounts payable, a line of credit, and a term loan 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 March 31, 2017, and December 31, 2016, the following assets were measured at fair value on a recurring basis using the level of inputs shown: Fair Value Measurements Using: March 31, 2017 Level 1 Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 5 $ 5 — — Fair Value Measurements Using: December 31, Level 1 Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 5 $ 5 — —

Debt and Letters of Credit

Debt and Letters of Credit	3 Months Ended
	Mar. 31, 2017
Debt and Letters of Credit [Abstract]
DEBT AND LETTERS OF CREDIT	(7) DEBT AND LETTERS OF CREDIT Long-term debt, net as of March 31, 2017 and December 31, 2016, was as follows: March 31, 2017 December 31, Line of credit (a) $ 40,631 $ 31,307 Term loan 18,560 20,107 Total debt outstanding 59,191 51,514 Less current portion 51,115 41,791 Total long-term debt outstanding $ 8,076 $ 9,623 (a) The line of credit has a capacity of $85,000 and matures on March 2, 2021.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation [Abstract]
STOCK-BASED COMPENSATION	(8) STOCK-BASED COMPENSATION The Company granted 311 and 529 restricted stock units during the three months ended March 31, 2017 and 2016, respectively. The restricted stock units granted during the three months ended March 31, 2017 and 2016, were estimated to have a weighted-average fair value per share of $6.66 and $9.87, respectively. The fair value of the 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 311 and 529 restricted stock units granted as discussed above, during the first three months of 2017 and 2016, the Company granted 264 and 373 restricted stock units, respectively, to certain executives of the Company where vesting is linked to specific performance criterion. The restricted stock units granted in 2017 and 2016 only vest upon the Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, or specific goals for the individual executive. As of March 31, 2017, the Company believes it is probable that it will achieve the targets for all restricted stock units granted in the first three months of 2017. Of the 373 restricted stock units granted in 2016, 16 shares vested and 159 shares were forfeited. The Company recorded share-based compensation expense only for those restricted stock units that were expected to vest. The estimated fair value of the 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 months ended March 31, 2017 and 2016, the Company recorded stock-based compensation expense related to restricted stock units of $670 and $1,336, respectively, which is included as a component of selling, general, and administrative expense. During the three months ended March 31, 2017 and 2016, certain ZAGG employees elected to receive a net amount of shares upon the vesting of restricted stock unit grants in exchange for the Company paying up to the maximum 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 $240 and $621, respectively, which is reflected as a reduction of additional paid-in capital.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2017
Loss Per Share [Abstract]
LOSS PER SHARE	(9) LOSS PER SHARE Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per common share reflects the potential dilution that could occur if stock options and restricted stock, or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method. The following is a reconciliation of the numerator and denominator used to calculate basic loss per share and diluted loss per share for the three months ended March 31, 2017 and 2016: March 31, March 31, Net loss $ (6,138 ) $ (3,290 ) Weighted average shares outstanding: Basic 28,059 27,710 Dilutive effect of warrants and restricted stock units — — Diluted 28,059 27,710 Loss per share: Basic $ (0.22 ) $ (0.12 ) Diluted $ (0.22 ) $ (0.12 ) For the three months ended March 31, 2017, 860 restricted stock units were not considered in calculating diluted loss per share because the company was in a loss position and, therefore, the effect would have been anti-dilutive. For the three months ended March 31, 2016, warrants and restricted stock units to purchase 442 shares of common stock were not considered in calculating diluted loss per share because the company was in a loss position and, therefore, the effect would have been anti-dilutive.

Treasury Stock

Treasury Stock	3 Months Ended
	Mar. 31, 2017
Treasury Stock [Abstract]
TREASURY STOCK	(10) 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, which was put in place during the fourth quarter of 2016. The 20b5-1 plan was subsequently terminated during the first quarter 2017. For the three months ended March 31, 2017, the Company purchased 234 shares of ZAGG Inc common stock. Cash consideration paid for the purchase of ZAGG Inc common stock for the three months ended March 31, 2017 was $1,492, which included commissions paid to brokers of $9. For the three months ended March 31, 2017 the weighted average price per share was $6.32. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet. For the three months ended March 31, 2016, no purchases of treasury stock occurred.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	(11) 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 March 31, 2017 were as follows: Remaining 2017 $ 2,215 2018 2,168 2019 1,709 2020 1,524 2021 1,449 Thereafter 2,561 Total $ 11,626 For the three months ended March 31, 2017 and 2016, rent expense was $685 and $717, respectively, and was included in selling, general and administrative expense in the condensed consolidated statement of operations. Rent expense is recognized on a basis which approximates straight-line over the lease term and was recorded as a component of selling, general and administrative expense on the condensed consolidated statement of operations. Commercial Litigation Daniel Huang, individually and as shareholder representative v. ZAGG Inc ZAGG Inc et al. v. Daniel Huang et al. Peter Kravitz v. ZAGG Inc., U.S. Bankruptcy Court, District of Delaware, Adv. Pro. No. 15-51558(BLS). Eric Stotz and Alan Charles v. mophie inc., U.S. District Court, Central District of California, Civil Action No. 2:16-cv-08898-GW-FFM. MobileExp, LLC v. mophie inc., U.S. District Court, Eastern District of Texas, Civil Action No. 2:16-cv-1340. 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 former Chief Executive Officer Robert Pedersen’s pledge and subsequent sale of Company shares and the fact that such pledges and sales were not disclosed in the Company’s 2011 10-K filed on March 15, 2012 or 2012 Proxy filed on April 27, 2012. 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 establishes reserves when a particular contingency is probable and estimable. Other than those discussed above, the Company has not accrued for any loss at March 31, 2017 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.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017. At March 31, 2017, the balance of accounts receivable from three separate customers exceeded 10%: Superior Communications, Inc. (“Superior”), Best Buy Co., Inc. (“Best Buy”), and GENCO Distribution Systems, Inc. (“GENCO”). At March 31, 2017, the balance of accounts receivable from two separate customers exceeded 10%: March 31, 2017 December 31, 2016 Superior 45 % 32 % Best Buy 12 % 22 % GENCO 9 % 10 % No other customer account balances were more than 10% of accounts receivable at March 31, 2017 or December 31, 2016. 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 We do not directly manufacture any of our products; rather, we employ various third party manufacturing partners in the United States and Asia to perform these services on our behalf. The services employed by these third parties include the selection of sub-suppliers that provide raw materials and other components used in the manufacturing process. We have endeavored to use common components and readily available raw materials in the design of our products that can be sourced from multiple sub-suppliers. However, raw film used in our InvisibleShield film and InvisibleShield On-Demand (“ISOD”) products has been produced by a single supplier for the last nine years. Our film supplier has contractually agreed to not sell the raw materials to any of our competitors. Below is a high-level summary by product category of the manufacturing sources used by the Company: ● Screen Protection ● Battery Cases and Power Management ● Keyboards ● Audio Our product and operations teams work closely with suppliers from initial product development and throughout the manufacturing process to ensure that (1) the supplier understands and will build according to product specifications, (2) appropriate quality is maintained for the finished goods and for all sub-components, and (3) the supplier can meet our supply needs. Concentration of sales For the three months ended March 31, 2017 and 2016, Superior, GENCO and Best Buy were our largest customers which accounted for over 10% of sales as follows: Three months ended Three months ended Superior 27 % 19 % GENCO 12 % 10 % Best Buy 6 % 13 % During 2017 and 2016 no other customers accounted for greater than 10% of net sales. Although we have contracts in place governing our relationships with customers, the contracts are not long-term and all of our retailers generally purchase from us on a purchase order basis. As a result, these retailers generally may, with little or no notice or penalty, cease ordering and selling our products, or materially reduce their orders. If any of these retailers cease selling our products, slow their rate of purchase of our products, or decrease the number of products they purchase, our results of operations could be adversely affected. The percentage of sales by geographic region for the three months ended March 31, 2017 and 2016, was approximately: Three months ended Three months ended United States 84 % 88 % Europe 10 % 9 % Other 6 % 3 %

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
SEGMENT REPORTING	(13) 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 regularly reviews to analyze 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, cases, and cables under the mophie brand. Worldwide operations are headquartered in Tustin, California, while international operations are directed from Shannon, Ireland. 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 were as follows: Three months ended Three months ended ZAGG segment $ 57,165 $ 54,796 mophie segment 35,781 7,636 Net sales $ 92,946 $ 62,432 Gross profit by segment were as follows: Three months ended Three months ended ZAGG segment $ 24,303 $ 22,819 mophie segment 4,303 910 Gross profit $ 28,606 $ 23,729 Income (loss) from operations by segment were as follows: Three months ended March 31, Three months ended March 31, ZAGG segment $ 1,039 $ 413 mophie segment (7,688 ) (4,116 ) Loss from operations $ (6,649 ) $ (3,703 ) Total assets by segment were as follows: March 31, 2017 December 31, 2016 ZAGG segment $ 123,042 $ 156,123 mophie segment 153,540 154,606 Total assets $ 276,582 $ 310,729

Nature of Operations and Basi20

Nature of Operations and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2017
Nature of Operations and Basis of Presentation [Abstract]
Significant Accounting Policies	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, 2016.
Recent Accounting Pronouncements (amounts in thousands)	Recent Accounting Pronouncements (amounts in thousands) 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. The ASU may be adopted utilizing one of two methods. The first method is to adopt the ASU by recording the effect of the guidance in the ASU retrospectively to each prior period presented in the period of adoption. The second method is to adopt the ASU by recording the effect of the guidance in the ASU retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application. 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 currently anticipates adopting the standard using the modified retrospective approach with the cumulative effect of adoption recorded at the date of initial application. The Company is currently evaluating the impact the 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 has concluded that this ASU did not have a material impact on our financial position or results of operations. 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 amendments in the ASU may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The ASU is effective for public business entities for interim and annual periods in fiscal years beginning after December 15, 2016. During the year ended December 31, 2016, the Company adopted the ASU using the retrospective approach resulting in recording deferred tax assets as non-current for current and prior periods presented. This adoption does not impact our results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, 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 requirements of the new standard for leases shall be recognized and measured at the beginning of the earliest comparative period presented. When adopted, the Company will be required to adjust equity at the beginning of the earliest comparative period presented, and the other comparative amounts disclosed for each prior period presented in the financial statements, as if the requirements of the new standard had always been applied. The new standard also contains practical expedients which the Company may elect to follow. The new standard is effective for public business entities 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, including whether to elect the practical expedients outlined in the new standard. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” 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 new standard contains several amendments that simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The changes in the new standard eliminate the accounting for excess tax benefits to be recognized in additional paid-in capital and tax deficiencies recognized either in the income tax provision or in additional paid-in capital. The Company has adopted ASU 2016-09 as of the beginning of the quarter ended March 31, 2017. For the quarter ended March 31, 2017, the Company applied the amendment relating to the recognition of excess tax benefits and deficiencies on a prospective basis and, accordingly, has recognized all excess tax benefits and tax deficiencies as income tax expense or benefit as discrete items resulting in the recognition of income tax expense of $171. The Company has not recorded a cumulative-effect adjustment to retained earnings as of the beginning of the year because all tax benefits had previously been recognized when the tax deductions related to stock compensation were utilized to reduce taxes payable. The Company has elected to apply the amendment related to the presentation of cash flows for excess tax benefits on a prospective basis and no prior periods have been adjusted. The Company’s financial position or results of operations were not impacted by amendments related to the statutory tax withholding requirement and, accordingly, no adjustment has been recorded. The Company will continue to classify cash remitted to the tax authorities as a financing activity as now required by the amendments in the ASU. The ASU permits a policy election to either record forfeitures as they occur or estimate forfeitures consistent with historical U.S. GAAP. The Company has elected to record forfeitures as they occur, which did not have a material impact on our financial position or results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which addresses eight classification issues related to the statement of cash flows: (1) debt prepayment or debt extinguishment costs; (2) settlement of zero-coupon bonds; (3) contingent consideration payments made after a business combination; (4) proceeds from the settlement of insurance claims; (5) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; (6) distributions received from equity method investees; (7) beneficial interests in securitization transactions; and (8) separately identifiable cash flows and application of the predominance principle. The ASU is effective for public business entities for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The amendments in the ASU should be applied using a retrospective transition method to each period presented. If it is impracticable for the amendments to be applied retrospectively for some of the issues, the amendments for those issues may be applied prospectively as of the earliest date practicable. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements, including the method of adoption. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which requires entities to recognize at the transaction date the income tax consequences of intercompany asset transfers other than inventory. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which requires companies to include cash and cash equivalents that have restrictions on withdrawal or use in total cash and cash equivalents on the statement of cash flows. This ASU is effective for public business entities for annual and interim periods in fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which requires an entity to no longer perform a hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured using the difference between the carrying amount and the fair value of the reporting unit. The ASU is effective for annual and interim periods in fiscal years beginning after December 15, 2019. All entities may early adopt the standard for goodwill impairment tests with measurement dates after January 1, 2017. The Company performs an annual goodwill impairment assessment and will elect to early adopt this standard in the current year when the assessment is performed.

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Inventories [Abstract]
Schedule of inventories	March 31, 2017 December 31, 2016 Finished goods $ 75,417 $ 72,490 Raw materials 284 279 Total inventories $ 75,701 $ 72,769

Acquisition of Mophie Inc. (Tab

Acquisition of Mophie Inc. (Tables)	3 Months Ended
	Mar. 31, 2017
Acquisition of Mophie Inc. [Abstract]
Summary of unaudited pro-forma results of operations	3 Months Ended March 31, 2016 Net sales $ 79,759 Net loss $ (6,395 ) Basic net loss per share $ (.23 ) Diluted net loss per share $ (.23 )

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets [Abstract]
Schedule of changes in gross long-lived intangible assets	Gross balance at December 31, 2016 $ 108,659 Impairment loss on patent (2,777 ) Gross balance at March 31, 2017 $ 105,882
Schedule of Long-lived intangible assets, net of amortization	March 31, 2017 December 31, 2016 Customer relationships $ 13,274 $ 14,612 Tradenames 20,593 21,506 Patents and technology 13,075 15,727 Non-compete agreements 1,407 1,497 Other 19 20 Total amortizable intangible assets $ 48,368 $ 53,362

Fair Value Measures (Tables)

Fair Value Measures (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Measures [Abstract]
Schedule of assets and liabilities measured at fair value on recurring basis	Fair Value Measurements Using: March 31, 2017 Level 1 Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 5 $ 5 — — Fair Value Measurements Using: December 31, Level 1 Level 2 Inputs Level 3 Inputs Money market funds included in cash equivalents $ 5 $ 5 — —

Debt and Letters of Credit (Tab

Debt and Letters of Credit (Tables)	3 Months Ended
	Mar. 31, 2017
Debt and Letters of Credit [Abstract]
Schedule of long-term debt, net	March 31, 2017 December 31, Line of credit (a) $ 40,631 $ 31,307 Term loan 18,560 20,107 Total debt outstanding 59,191 51,514 Less current portion 51,115 41,791 Total long-term debt outstanding $ 8,076 $ 9,623 (a) The line of credit has a capacity of $85,000 and matures on March 2, 2021.

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Loss Per Share [Abstract]
Schedule of reconciliation of numerator and denominator used to calculate basic earnings per share and diluted earnings per share	March 31, March 31, Net loss $ (6,138 ) $ (3,290 ) Weighted average shares outstanding: Basic 28,059 27,710 Dilutive effect of warrants and restricted stock units — — Diluted 28,059 27,710 Loss per share: Basic $ (0.22 ) $ (0.12 ) Diluted $ (0.22 ) $ (0.12 )

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies [Abstract]
Schedule of future minimum rental payments required under the operating leases	Remaining 2017 $ 2,215 2018 2,168 2019 1,709 2020 1,524 2021 1,449 Thereafter 2,561 Total $ 11,626

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2017
Concentrations [Abstract]
Schedules of concentration of accounts receivable and sales	March 31, 2017 December 31, 2016 Superior 45 % 32 % Best Buy 12 % 22 % GENCO 9 % 10 % Three months ended Three months ended Superior 27 % 19 % GENCO 12 % 10 % Best Buy 6 % 13 %
Schedule of percentage of sales by geographic region	Three months ended Three months ended United States 84 % 88 % Europe 10 % 9 % Other 6 % 3 %

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of segment reporting information	Three months ended Three months ended ZAGG segment $ 57,165 $ 54,796 mophie segment 35,781 7,636 Net sales $ 92,946 $ 62,432 Three months ended Three months ended ZAGG segment $ 24,303 $ 22,819 mophie segment 4,303 910 Gross profit $ 28,606 $ 23,729 Three months ended March 31, 2017 Three months ended March 31, 2016 ZAGG segment $ 1,039 $ 413 mophie segment (7,688 ) (4,116 ) Loss from operations $ (6,649 ) $ (3,703 ) March 31, 2017 December 31, ZAGG segment $ 123,042 $ 156,123 mophie segment 153,540 154,606 Total assets $ 276,582 $ 310,729

Nature of Operations and Basi30

Nature of Operations and Basis of Presentation (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Nature of Operations and Basis of Presentation (Textual)
Recognition of income tax expense	$ 171

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventories [Abstract]
Finished goods	$ 75,417	$ 72,490
Raw materials	284	279
Total inventories	$ 75,701	$ 72,769

Inventories (Details Textual)

Inventories (Details Textual) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventories (Textual)
Inventory deposits with third-party manufacturers	$ 625	$ 437

Acquisition of Mophie Inc. (Det

Acquisition of Mophie Inc. (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / shares
Acquisition of Mophie Inc. [Abstract]
Net sales | $	$ 79,759
Net loss | $	$ (6,395)
Basic net loss per share | $ / shares	$ (0.23)
Diluted net loss per share | $ / shares	$ (0.23)

Acquisition of Mophie Inc. (D34

Acquisition of Mophie Inc. (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Acquisition of Mophie Inc. (Textual)
Net loss before tax		$ (7,159)	$ (4,091)
Mophie Inc. [Member]
Acquisition of Mophie Inc. (Textual)
Net sales	$ 7,636
Net loss before tax	$ 4,116
Pro forma net loss amortization expense			2,392
Amortization of debt issuance cost			493
Business acquisition pro forma information			$ 6,937

Goodwill and Intangible Asset35

Goodwill and Intangible Assets (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Goodwill and Intangible Assets [Abstract]
Gross balance at December 31, 2016	$ 108,659
Impairment loss on patent	(2,777)
Gross balance at March 31, 2017	$ 105,882

Goodwill and Intangible Asset36

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	$ 57,514	$ 55,298
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	13,274	14,612
Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	20,593	21,506
Patents and technology [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	13,075	15,727
Non-compete agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	1,407	1,497
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Total amortizable intangible assets	$ 19	$ 20

Goodwill and Intangible Asset37

Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Goodwill and Intangible Assets [Abstract]
Goodwill	$ 12,272		$ 12,272
Impairment loss on patents	2,777
Accumulated amortization	818
Intangible assets carrying value	1,959
Cancelled of carrying value intangible assets	$ 0

Income Taxes (Details Textual)

Income Taxes (Details Textual)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Taxes (Textual)
Effective tax rate	14.30%	19.60%
U.S. Federal statutory rate	35.00%

Fair Value Measures (Details)

Fair Value Measures (Details) - Fair value measurements recurring basis [Member] - Money market funds [Member] - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Estimate of Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	$ 5	$ 5
Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Money market funds included in cash equivalents	5	5
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

Debt and Letters of Credit (Det

Debt and Letters of Credit (Details) - USD ($) $ in Thousands		Mar. 31, 2017	Dec. 31, 2016
Debt and Letters of Credit [Abstract]
Line of credit	[1]	$ 40,631	$ 31,307
Term loan		18,560	20,107
Total debt outstanding		59,191	51,514
Less current portion		10,484	10,484
Total long-term debt outstanding		$ 8,076	$ 9,623
[1]	The line of credit has a capacity of $85,000 and matures on March 2, 2021.

Debt and Letters of Credit (D41

Debt and Letters of Credit (Details Textual) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Debt and Letters of Credit (Textual)
Line of credit	$ 85,000
Line of credit maturity date	Mar. 2, 2021

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Stock-Based Compensation (Textual)
Payment to reduction of additional paid-in capital	$ 240	$ 621
Restricted stock units [Member]
Stock-Based Compensation (Textual)
Number of restricted stock granted	311	529
Weighted-average fair value of restricted stock per share	$ 6.66	$ 9.87
Number of restricted stock acheived			373
Number of restricted shares vested	16
Number of restricted shares forfeited	159
Maximum [Member] | Restricted stock units [Member]
Stock-Based Compensation (Textual)
Term of restricted stock vested	3 years
Minimum [Member] | Restricted stock units [Member]
Stock-Based Compensation (Textual)
Term of restricted stock vested	9 months
Selling, general, and administrative expenses [Member] | Restricted stock units [Member]
Stock-Based Compensation (Textual)
Stock-based compensation expense	$ 670	$ 1,336
Executives [Member] | Restricted stock units [Member]
Stock-Based Compensation (Textual)
Shares granted in excess of original grant	264	373

Loss Per Share (Details)

Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loss Per Share [Abstract]
Net loss	$ (6,138)	$ (3,290)
Weighted average shares outstanding:
Basic	28,059	27,710
Dilutive effect of warrants and restricted stock units
Diluted	28,059	27,710
Loss per share:
Basic	$ (0.22)	$ (0.12)
Diluted	$ (0.22)	$ (0.12)

Loss Per Share (Details Textual

Loss Per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Loss Per Share (Textual)
Warrants and restricted stock units granted not considered in calculation of diluted earnings	860	442

Treasury Stock (Details Textual

Treasury Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2015
Treasury Stock (Textual)
Number of repurchase of shares authorized by board of directors			$ 20,000
Treasury stock common,shares	234
Cash consideration paid for repurchase of common stock	$ 1,492
Commissions paid to brokers	$ 9
Weighted average price per share	$ 6.32
Purchases of treasury stock occurred

Commitments and Contingencies46

Commitments and Contingencies (Details) $ in Thousands	Mar. 31, 2017USD ($)
Commitments and Contingencies [Abstract]
Remaining 2,017	$ 2,215
2,018	2,168
2,019	1,709
2,020	1,524
2,021	1,449
Thereafter	2,561
Total	$ 11,626

Commitments and Contingencies47

Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended
	Dec. 16, 2016	Oct. 21, 2016	Oct. 29, 2015	Mar. 31, 2017	Mar. 31, 2016
Commitments and Contingencies (Textual)
Rental payment of leases				$ 685	$ 717
Contingent payments description		The contingent payments related to tax refunds and customs duty recoveries and seeking damages in an amount no less than $11,420.
Damages exceeding value	$ 22,000
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 (formerly 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.

Concentrations (Details)

Concentrations (Details) - Customer Concentration Risk [Member]	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounts Receivable [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.00%		10.00%
Accounts Receivable [Member] | Superior [Member]
Concentration Risk [Line Items]
Concentration risk percentage	45.00%		32.00%
Accounts Receivable [Member] | Best Buy [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%		22.00%
Accounts Receivable [Member] | GENCO [Member]
Concentration Risk [Line Items]
Concentration risk percentage	9.00%		10.00%
Sales Revenue, Net [Member]
Concentration Risk [Line Items]
Concentration risk percentage	10.00%	10.00%
Sales Revenue, Net [Member] | Superior [Member]
Concentration Risk [Line Items]
Concentration risk percentage	27.00%	19.00%
Sales Revenue, Net [Member] | Best Buy [Member]
Concentration Risk [Line Items]
Concentration risk percentage	6.00%	13.00%
Sales Revenue, Net [Member] | GENCO [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%	10.00%

Concentrations (Details 1)

Concentrations (Details 1) - Sales revenue [Member]	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
United States [Member]
Concentration Risk [Line Items]
Percentage of sales	84.00%	88.00%
Europe [Member]
Concentration Risk [Line Items]
Percentage of sales	10.00%	9.00%
Other [Member]
Concentration Risk [Line Items]
Percentage of sales	6.00%	3.00%

Concentrations (Details Textual

Concentrations (Details Textual) - Customer Concentration Risk [Member] - Customer	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Accounts Receivable [Member]
Concentrations (Textual)
Percentage of sales	10.00%		10.00%
Number of customer	3
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
Accounts Receivable [Member] | GENCO [Member]
Concentrations (Textual)
Number of customer	2
Sales Revenue, Net [Member]
Concentrations (Textual)
Percentage of sales	10.00%	10.00%
Accounts revenues in percentage of all customers	No other customers accounted for greater than 10% of net sales.	No other customers accounted for greater than 10% of net sales.

Segment Reporting (Details)

Segment Reporting (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Schedule of segment reporting information [Abstract]
Net sales	$ 92,946	$ 62,432
Gross profit	28,606	23,729
Loss from operations	(6,649)	(3,703)
Total assets	276,582		$ 310,729
ZAGG segment [Member]
Schedule of segment reporting information [Abstract]
Net sales	57,165	54,796
Gross profit	24,303	22,819
Loss from operations	1,039	413
Total assets	123,042		156,123
mophie segment [Member]
Schedule of segment reporting information [Abstract]
Net sales	35,781	7,636
Gross profit	4,303	910
Loss from operations	(7,688)	$ (4,116)
Total assets	$ 153,540		$ 154,606

Segment Reporting (Details Text

Segment Reporting (Details Textual)	3 Months Ended
	Mar. 31, 2017Segment
Segment Reporting (Textual)
Number of operating segments	2