ZAGG (ZAGG) 10-Q 7 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 05, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-34528
Entity Registrant Name	ZAGG Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2559624
Entity Address, Address Line One	910 West Legacy Center Way
Entity Address, Address Line Two	Suite 500
Entity Address, City or Town	Midvale
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84047
City Area Code	801
Local Phone Number	263-0699
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	ZAGG
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		29,086,402
Entity Central Index Key	0001296205
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2019

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 14,669	$ 15,793
Accounts receivable, net of allowances of $879 and $885	135,345	156,667
Income tax receivable	3,007	375
Inventories	138,452	82,919
Prepaid expenses and other current assets	4,871	5,473
Total current assets	296,344	261,227
Property and equipment, net of accumulated depreciation of $14,801 and $11,844	18,644	16,118
Intangible assets, net of accumulated amortization of $91,640 and $78,627	67,102	52,054
Deferred income tax assets	13,994	19,403
Operating lease right of use assets	10,067
Goodwill	43,569	27,638
Other assets	1,103	1,571
Total assets	450,823	378,011
Current liabilities:
Accounts payable	97,978	80,908
Sales returns liability	41,244	54,432
Accrued wages and wage related expenses	6,934	6,624
Accrued liabilities	18,911	13,723
Current portion of operating lease liabilities	2,129
Total current liabilities	167,196	155,687
Line of credit	111,363	58,363
Operating lease liabilities	11,135
Other long-term liabilities	0	5,470
Total liabilities	289,694	219,520
Commitments and contingencies (Note 1 and Note 11)
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 36,163 and 34,457 shares issued	36	34
Treasury stock, 7,055 and 6,983 common shares at cost	(50,455)	(49,733)
Additional paid-in capital	111,917	96,486
Accumulated other comprehensive loss	(2,366)	(1,410)
Retained earnings	101,997	113,114
Total stockholders’ equity	161,129	158,491
Total liabilities and stockholders’ equity	$ 450,823	$ 378,011

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 879	$ 885
Accumulated depreciation, depletion and amortization, property, plant, and equipment	14,801	11,844
Finite-lived intangible assets, accumulated amortization	$ 91,640	$ 78,627
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	36,163,000	34,457,000
Treasury stock, common shares	7,055,000	6,983,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Net sales	$ 146,488	$ 141,087	$ 332,034	$ 371,718
Cost of sales	92,143	88,916	216,108	244,297
Gross profit	54,345	52,171	115,926	127,421
Operating expenses:
Advertising and marketing	4,129	3,089	13,228	8,322
Selling, general and administrative	34,063	27,349	100,138	78,692
Transaction costs	547	618	1,168	635
Amortization of intangible assets	3,948	2,859	13,013	8,404
Total operating expenses	42,687	33,915	127,547	96,053
Income (loss) from operations	11,658	18,256	(11,621)	31,368
Other (expense) income:
Interest expense	(1,221)	(286)	(3,334)	(1,132)
Other (expense) income	(462)	(176)	214	(362)
Total other expense	(1,683)	(462)	(3,120)	(1,494)
Income (loss) before provision for income taxes	9,975	17,794	(14,741)	29,874
Income tax (provision) benefit	(1,293)	(3,168)	3,663	(5,003)
Net income (loss)	$ 8,682	$ 14,626	$ (11,078)	$ 24,871
Earnings (loss) per share attributable to stockholders:
Basic earnings (loss) per share (in usd per share)	$ 0.30	$ 0.52	$ (0.38)	$ 0.88
Diluted earnings (loss) per share (in usd per share)	$ 0.30	$ 0.51	$ (0.38)	$ 0.87

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 8,682	$ 14,626	$ (11,078)	$ 24,871
Other comprehensive (loss) gain, net of tax:
Foreign currency translation (loss) gain	(941)	175	(956)	(505)
Total other comprehensive (loss) income	(941)	175	(956)	(505)
Total comprehensive income (loss)	$ 7,741	$ 14,801	$ (12,034)	$ 24,366

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (11,078)	$ 24,871
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Stock-based compensation expense	3,291	2,165
Depreciation and amortization	18,007	13,330
Deferred income tax assets	(1,666)	2,266
Loss on disposal of property and equipment	102	9
Loss on deferred loan costs with debt modification	0	243
Amortization of deferred loan costs	161	147
Right of use asset costs	1,897
Changes in operating assets and liabilities:
Accounts receivable, net	20,813	7,735
Inventories	(53,079)	(1,751)
Prepaid expenses and other current assets	1,883	(694)
Other assets	381	1,618
Accounts payable	14,758	(30,469)
Income tax receivable	(3,033)	(3,153)
Sales returns liability	(15,751)	3,831
Accrued wages and wage related expenses	1	58
Accrued and other long-term liabilities	103	(539)
Lease liabilities	(1,913)	0
Other	320	191
Net cash (used in) provided by operating activities	(24,803)	19,858
Cash flows from investing activities:
Purchase of property and equipment	(7,002)	(4,444)
Proceeds from disposal of equipment	2	26
Net cash used in investing activities	(27,364)	(8,369)
Cash flows from financing activities:
Proceeds from revolving credit facility	243,140	238,994
Payments on revolving credit facility	(190,140)	(246,448)
Payments on term loan facility	0	(2,084)
Purchase of treasury stock	(722)	(6,097)
Payment of withholding on restricted stock units	(848)	(2,630)
Payment of deferred loan costs	(40)	(294)
Proceeds from issuance of stock under employee stock purchase plan	61	55
Net cash provided by (used in) financing activities	51,451	(18,504)
Effect of foreign currency exchange rates on cash equivalents	(408)	(194)
Net decrease in cash and cash equivalents	(1,124)	(7,209)
Cash and cash equivalents at beginning of the period	15,793	24,989
Cash and cash equivalents at end of the period	14,669	17,780
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	3,154	1,127
Cash paid during the period for income taxes, net	1,009	5,729
Cash paid during the period for rent expenses included in the measurement of lease liabilities	2,393
Supplemental disclosure of non-cash investing and financing activities:
Purchase of property and equipment financed through accounts payable	742	1,036
Withholding tax on restricted stock units recorded in accrued wages and wage related expenses	39	93
Purchase of HALO through amounts due to seller, contingent payments and common stock	16,642	0
Modification of debt that resulted in payment of existing term loan balance	0	11,991
Noncash change in lease asset and operating liabilities from remeasurement of existing leases and addition of new leases	2,473
Indemnity Holdback of BRAVEN Acquisition included in accrued liabilities	0	500
Braven
Cash flows from investing activities:
Payments to acquire businesses	0	(3,951)
HALO
Cash flows from investing activities:
Payments to acquire businesses	$ (20,364)	$ 0

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2017		34,104
Beginning balance at Dec. 31, 2017	$ 135,999	$ 34	$ 96,145	$ (348)	$ (37,637)	$ 77,805
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	24,871					24,871
Other comprehensive income (loss)	(505)			(505)
Treasury stock purchase	(6,097)				(6,097)
Restricted stock release (in shares)		327
Employee stock purchase plan release (in shares)		2
Employee stock purchase plan release	55		55
Stock-based compensation expense	2,165		2,165
Payment of withholding taxes on restricted stock units	(2,723)		(2,723)
Ending balance (in shares) at Sep. 30, 2018		34,433
Ending balance at Sep. 30, 2018	149,885	$ 34	95,642	(853)	(43,734)	98,796
Beginning balance (in shares) at Jun. 30, 2018		34,423
Beginning balance at Jun. 30, 2018	137,510	$ 34	94,977	(1,028)	(40,643)	84,170
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	14,626					14,626
Other comprehensive income (loss)	175			175
Treasury stock purchase	(3,091)				(3,091)
Restricted stock release (in shares)		9
Employee stock purchase plan release (in shares)		1
Stock-based compensation expense	757		757
Payment of withholding taxes on restricted stock units	(92)		(92)
Ending balance (in shares) at Sep. 30, 2018		34,433
Ending balance at Sep. 30, 2018	149,885	$ 34	95,642	(853)	(43,734)	98,796
Beginning balance (in shares) at Dec. 31, 2018		34,457
Beginning balance at Dec. 31, 2018	158,491	$ 34	96,486	(1,410)	(49,733)	113,114
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(11,078)					(11,078)
Other comprehensive income (loss)	(956)			(956)
Treasury stock purchase	(722)				(722)
Restricted stock release (in shares)		241
Employee stock purchase plan release (in shares)		7
Employee stock purchase plan release	61		61
Stock-based compensation expense	3,291		3,291
Payment of withholding taxes on restricted stock units	(887)		(887)
Shares issued as consideration for acquisition (in shares)		1,458
Shares issued as consideration for acquisition	12,968	$ 2	12,966
Ending balance (in shares) at Sep. 30, 2019		36,163
Ending balance at Sep. 30, 2019	161,129	$ 36	111,917	(2,366)	(50,455)	101,997
Beginning balance (in shares) at Jun. 30, 2019		36,140
Beginning balance at Jun. 30, 2019	152,750	$ 36	111,279	(1,425)	(50,455)	93,315
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	8,682					8,682
Other comprehensive income (loss)	(941)			(941)
Restricted stock release (in shares)		19
Employee stock purchase plan release (in shares)		4
Employee stock purchase plan release	48		48
Stock-based compensation expense	631		631
Payment of withholding taxes on restricted stock units	(41)		(41)
Ending balance (in shares) at Sep. 30, 2019		36,163
Ending balance at Sep. 30, 2019	$ 161,129	$ 36	$ 111,917	$ (2,366)	$ (50,455)	$ 101,997

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
NATURE OF OPERATIONS AND BASIS OF PRESENTATION	NATURE OF OPERATIONS AND BASIS OF PRESENTATION ZAGG Inc and its subsidiaries (the “Company”) are innovation leaders in mobile tech accessories for smartphones and tablets. For over 15 years, the Company 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, wireless charging, audio, mobile keyboards, protective cases, and other mobile accessories sold under the ZAGG ® , InvisibleShield ® , mophie ® , IFROGZ ® , BRAVEN ® , Gear4 ® , and HALO ® brands. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the United States 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 Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 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 at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods, with related disclosures of these amounts in the notes to the financial statements. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are described in Note 1 to the Company’s consolidated financial statements included in the 2018 Form 10-K. Except for the changes below, the Company has consistently applied the accounting policies to all periods presented in these condensed consolidated financial statements. Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” (In thousands, except lease terms and discount rates) The Company adopted ASC Topic 842 ,“Leases” (“Topic 842”) with a date of initial application of January 1, 2019. As a result of this adoption, the Company has changed its accounting policy for leases as detailed below. The Company applied Topic 842 on January 1, 2019, using the modified retrospective approach. The adoption of Topic 842 includes the cumulative effect of adopting the new standard being recognized in retained earnings at January 1, 2019, which allows for the application of the standard solely to the transition period in 2019 but does not require application to prior fiscal comparative periods presented. Therefore, the prior period comparative information has not been adjusted and continues to be reported under the previous ASC Topic 840, “Leases” (“Topic 840”) standard. The Company also elected the package of available practical expedients allowable under Topic 842 guidelines in its adoption approach. The adoption of Topic 842 resulted in an increase in long-term lease liabilities of $10,684 which was included in operating lease liabilities; an increase in short-term lease liabilities of $2,362 which was included in current portion of operating lease liabilities; an initial recognition of right of use ( “ ROU”) assets of $8,842 which was included in operating lease right of use assets; an increase of deferred tax assets, net of $1,424; a derecognition of $3,346 related to lease liabilities under Topic 840 which was included in accrued liabilities; a decrease in deferred rent of $819 which was included in accrued liabilities; and a decrease of $39 in retained earnings as a cumulative effect of adoption. As the Company did not have any finance leases upon adoption of Topic 842 at January 1, 2019, the largest driver of changes for the adoption of Topic 842 was the addition of the Company’s operating leases to the condensed consolidated balance sheet, creating ROU assets and lease liabilities on the condensed consolidated balance sheet as of September 30, 2019. Under Topic 840, operating leases were not included on the condensed consolidated balance sheets, whereas under Topic 842, ROU assets and lease liabilities are calculated and recorded on the lease commencement date. The standard had a material impact in the Company’s consolidated balance sheets, but did not have a significant impact in its condensed consolidated statements of operations. In addition, the adoption of Topic 842 had no impact to cash provided by or used in operating, financing, or investing on the condensed consolidated statements of cash flows. Lease accounting policy The Company determines if an arrangement is a lease at contract inception and then determines if such qualifying lease is classified as an operating lease or a finance lease. As of September 30, 2019, the Company only has operating leases. For operating leases, the Company measures lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of its leases do not provide an implicit rate, the Company uses an incremental borrowing rate ( “ IBR”) based on relevant information available at each leases' commencement date in determining the present value of future payments for each individual lease. The IBR is obtained by request from the Company's banking partners, who apply a collateralized rate of borrowing based on each leases’ specific term and based on the Company’s credit worthiness. ROU assets are measured as the sum of the amount of the initial measurement of the lease liability, plus any prepaid lease payments made minus any lease incentives received, and any initial direct costs incurred. The Company’s lease terms may include options to extend or terminate leases that will be recognized when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components under the definition of Topic 842. Upon adoption of Topic 842, the Company elected a practical expedient not to separate the lease and non-lease components for its leases for physical space and equipment and accounts for them as a single lease component. Lease information The Company has operating leases for offices, retail stores, and warehouse space that expire through 2027. The Company’s leases have remaining lease terms of 4 months to 8 years, some of which include options to extend the leases up to 10 years. The following summarizes the activities in the Company’s ROU assets and lease liabilities for the nine months ended September 30, 2019: Beginning Balance as of January 1, 2019 Adoption of Topic 842 Additions Costs Ending Balance as of September 30, 2019 Operating lease ROU assets $ — $ 8,842 $ 3,122 $ (1,897) $ 10,067 Beginning Balance as of January 1, 2019 Adoption of Topic 842 Additions Payments, less accretion Ending Balance as of September 30, 2019 Operating lease liabilities $ — $ 13,046 $ 2,131 $ (1,913) $ 13,264 For the three and nine months ended September 30, 2019, rent expense was $1,123 and $2,775, respectively. For the three and nine months ended September 30, 2018, rent expense was $768 and $2,314, respectively. Rent expense is recognized on a basis which approximates straight-line over the lease term and is recorded as a component of selling, general and administrative expense on the condensed consolidated statement of operations. As of September 30, 2019, the Company had a weighted-average remaining lease term of 5.2 years and a weighted-average discount rate used to calculate the lease liability of 4.42%. Future maturities of lease liabilities as of September 30, 2019 were as follows: Remaining 2019 $ 906 2020 3,208 2021 2,718 2022 2,735 2023 2,199 Thereafter 3,136 Total lease payments 14,902 Less: imputed interest (1,638) Lease liabilities $ 13,264 No other leases have been entered into under which the Company has significant rights and obligations as the lessee except those noted above. Minimum rental payments for operating leases required under Topic 840 as of December 31, 2018, are as follows: 2019 $ 3,198 2020 2,842 2021 2,457 2022 2,517 2023 1,976 Thereafter 2,098 Total operating lease commitments $ 15,088 Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which replaces the incurred loss impairment methodology under the current guidance with an expected loss methodology that requires consideration of forward-looking information to estimate credit losses, with reasonable and supportable documentation. Topic 326 is effective for annual and interim periods beginning after December 15, 2019. The Company plans to adopt the guidance prospectively with recording a cumulative effect adjustment in retained earnings beginning January 1, 2020. The Company notes that Topic 326 will impact its short-term credit receivables, and is currently evaluating new credit loss models and its processes and controls in preparation for the adoption of Topic 326. The Company does not expect the adoption to have a material impact on the consolidated statement of operations or the beginning balance of retained earnings.

Revenue

Revenue	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE Disaggregation of revenue from contracts with customers In the following tables, revenue from contracts with customers are disaggregated by key product lines, key distribution channels, and key geographic regions. The percentage of net sales related to the Company’s key product lines for the three and nine months ended September 30, 2019, and 2018, was a pproximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Protection (screen protection and cases) 59% 64% 57% 57% Power (power management and power cases) 31% 27% 31% 33% Audio 3% 3% 4% 4% Productivity (keyboards and other) 7% 6% 8% 6% The percentage of net sales related to the Company’s key distribution channels for the three and nine months ended September 30, 2019, and 2018, was approximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Indirect channel 88% 88% 85% 88% Website 7% 7% 10% 8% Franchisees 5% 5% 5% 4% The percentage of net sales related to the Company’s key geographic regions for the three and nine months ended September 30, 2019, an d 2018, wa s approximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 United States 79% 85% 75% 84% Europe 12% 8% 13% 9% Other 9% 7% 12% 7% Contract Balances Timing of revenue recognition may differ from timing of invoicing to customers or timing of consideration received. The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from the Company’s contracts with customers as of September 30, 2019, and December 31, 2018: September 30, 2019 December 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 135,345 $ 156,667 Right of return assets, which are included in prepaid expenses and other current assets 800 999 Refund liabilities, which are included in sales return liability 37,321 49,786 Warranty liabilities, which are included in sales return liability 3,923 4,646 Contract liabilities, which are included in accrued liabilities 50 96 The current balance of the right of return assets is the estimated amount of inventory to be returned that is expected to be resold. The current balance of refund liabilities is the expected amount of estimated sales returns, discounts and other credits from sales that have occurred. The current balance of warranty liabilities is the expected amount of warranty claim returns from sales that have occurred. The current balance of contract liabilities primarily relates to the advance consideration received from customers for products for which transfer of control has not yet occurred and therefore, revenue is deferred and will be recognized when the transfer of control has been completed. During the three and nine months ended September 30, 2019, revenue recognized that was included in the contract liability balance as of December 31, 2018, was $10 and $46, respectively. The following summarizes the activities in the Company’s warranty liabilities for the nine months ended September 30, 2019: Balance as of December 31, 2018 $ 4,646 Additions 7,858 Warranty claims charged (8,581) Balance as of September 30, 2019 $ 3,923

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS Acquisition of HALO On January 3, 2019, (the “HALO Acquisition Date”), ZAGG Hampton LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, entered into a membership interest purchase agreement (the “Purchase Agreement”) with Halo2Cloud, LLC (“HALO”) and its equity owners to acquire all of the outstanding equity interests of HALO (the “HALO Acquisition”). HALO is a leading direct-to-consumer mobile accessories company with an extensive intellectual property portfolio that specializes in wireless charging, car and wall chargers, portable power, and other accessories. The Company acquired HALO to expand its product and intellectual property portfolio, and to enter into new distribution channels. The total purchase consideration for the HALO Acquisition was $23,649 in cash, 1,458 shares of the Company’s common stock valued at $12,968, and contingent consideration estimated at $1,544 (the “HALO Earnout Consideration”). The initial purchase price was subject to adjustment within 90 days of the HALO Acquisition Date based upon the final determination of HALO’s (i) working capital, (ii) indebtedness, and (iii) transaction expenses as set forth in the Purchase Agreement. As noted in the Purchase Agreement, the Company retained $2,130 from the cash due to the sellers and will hold this amount for 18 months following the HALO Acquisition Date as security for HALO’s indemnification obligations. The $2,130 retained by the Company that is due HALO is recorded in accrued liabilities in the condensed consolidated balance sheets. HALO is also entitled to the HALO Earnout Consideration from the Company if HALO achieves the target Adjusted EBITDA set forth in the Purchase Agreement for the year ending December 31, 2019. If, however, HALO’s actual Adjusted EBITDA is less than the target Adjusted EBITDA for the year ending December 31, 2019, the HALO Earnout Consideration will be reduced by the difference between the actual Adjusted EBITDA and the target Adjusted EBITDA. The following summarizes the components of the purchase consideration for HALO: Preliminary Allocation Adjustments to Working Capital and Fair Value Final Allocation January 3, 2019 Cash consideration $ 23,943 $ (294) $ 23,649 Company common stock 12,968 — 12,968 Contingent consideration 1,593 (49) 1,544 Total purchase price $ 38,504 $ (343) $ 38,161 The total purchase price of $38,161 has been allocated to identifiable assets acquired and liabilities assumed based on their respective fair values. The excess of the purchase price over the fair value of the tangible and intangible assets acquired and liabilities assumed is recorded as goodwill. The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed as of September 30, 2019: Preliminary Allocation Adjustments to Working Capital and Fair Value Final Allocation January 3, 2019 Cash $ 1,151 $ 4 $ 1,155 Accounts receivable 2,436 (219) 2,217 Inventory 2,889 — 2,889 Inventory step up 494 — 494 Prepaid expenses and other assets 1,310 17 1,327 Property and equipment 627 — 627 Amortizable identifiable intangible assets 27,554 507 28,061 Goodwill 15,922 9 15,931 Operating lease right of use assets — 649 649 Other assets 546 (546) — Accounts payable (2,867) 126 (2,741) Income tax payable (501) 119 (382) Accrued expenses (217) 36 (181) Notes payable — (42) (42) Accrued wages and wage related expenses (324) 55 (269) Sales return liability (2,728) — (2,728) Deferred tax liability, net (6,177) (894) (7,071) Lease liabilities — (1,775) (1,775) Other long-term liabilities (1,611) 1,611 — Total $ 38,504 $ (343) $ 38,161 Identifiable Intangible Assets Classes of acquired intangible assets include technologies, trade names, and customer relationships. The fair value of the identifiable intangible assets was determined using the income valuation method. 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 amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Patents and technology $ 11,307 8.9 years Trade names 4,408 10.0 years Customer relationships 12,346 8.0 years Total $ 28,061 Goodwill Goodwill represents the excess of the HALO 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. Acquisition Costs As part of the HALO Acquisition, the Company incurred legal, accounting, and other due diligence fees that were expensed when incurred. Total fees incurred related to the HALO Acquisition for the three and nine months ended September 30, 2019 was $453 and $736, respectively, which were included as a component of operating expenses on the consolidated statements of operations. Results of Operations The results of operations of HALO were included in the Company’s results of operations beginning on January 4, 2019. For HALO’s results of operations from January 4, 2019 through September 30, 2019, HALO generated net sales of $15,126 and had a net loss before tax of $2,103. Acquisition of Gear4 On November 30, 2018, Patriot Corporation Unlimited Company, an entity registered and incorporated in Ireland and a wholly-owned subsidiary of the Company, entered into a share purchase agreement with STRAX Holding GmbH, an entity registered and incorporated in Germany (“STRAX”), and Gear4 HK Limited, an entity registered and incorporated in Hong Kong and a wholly-owned subsidiary of STRAX (“Gear4”), to acquire from STRAX all of the issued and outstanding equity securities of Gear4 (the “Gear4 Acquisition”). Pro Forma Results of Operations for HALO and Gear4 The following pro-forma results of operations for the three months ended September 30, 2018, and for the nine months ended September 30, 2019, and 2018, give pro forma effect as if the acquisitions of HALO and Gear4 and the related borrowings used to finance the acquisition had occurred on January 1, 2018, 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. For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2019 September 30, 2018 Net sales $ 159,060 $ 332,034 $ 398,433 Net income (loss) $ 15,626 $ (9,953) $ 17,371 Basic earnings (loss) per share $ 0.55 $ (0.34) $ 0.61 Diluted earnings (loss) per share $ 0.55 $ (0.34) $ 0.61 The 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, 2018. Furthermore, such 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. The nonrecurring pro forma adjustments attributable to the pro forma results of operations are as follows: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2019 September 30, 2018 Amortization expense $ 1,666 $ 89 $ 4,999 Transaction costs $ 422 $ (736) $ 1,028 Amortization of fair value adjustment to inventory $ — $ (494) $ 589 Interest from the amended credit facility and amortization of debt issuance costs $ 433 $ — $ 1,299

Inventories

Inventories	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES Inventories consisted of the following as of September 30, 2019, and December 31, 2018: September 30, 2019 December 31, 2018 Finished goods $ 133,406 $ 81,397 Raw materials 5,046 1,522 Total inventories $ 138,452 $ 82,919 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers of $345 and $382 as of September 30, 2019, and December 31, 2018, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS There was no additions to goodwill during the three months ended September 30, 2019. During the nine months ended September 30, 2019, goodwill increased in connection with the HALO Acquisition. The following table summarizes the changes in goodwill during the nine months ended September 30, 2019: Goodwill balance as of December 31, 2018 $ 27,638 Addition in connection with HALO Acquisition 15,931 Goodwill balance as of September 30, 2019 $ 43,569 There was no change in goodwill during the three months ended September 30, 2018, and there was $298 change in goodwill during the nine months ended September 30, 2018. There were no additions to intangible assets for the three months ended September 30, 2019. During the nine months ended September 30, 2019, intangible assets increased in connection with the HALO Acquisition. The following table summarizes the changes in intangible assets during the nine months ended September 30, 2019: Intangible assets balance as of December 31, 2018 $ 130,681 Addition in connection with HALO Acquisition 28,061 Intangible assets balance as of September 30, 2019 $ 158,742 There were $1,774 additions to intangible assets for the three and nine months ended September 30, 2018. Additionally, there were no impairments of intangible assets for the three and nine months ended September 30, 2019, and 2018. Intangible assets, net of accumulated amortization as of September 30, 2019, and December 31, 2018, were as follows: September 30, 2019 Weighted Average Amortization Period December 31, 2018 Weighted Average Amortization Period Trade names $ 27,253 9.7 years $ 26,988 9.9 years Patents and technology 16,486 8.3 years 8,723 8.0 years Customer relationships 22,854 7.7 years 15,560 7.6 years Non-compete agreements 509 4.9 years 778 4.9 years Other — 1.8 years 5 1.8 years Total intangible assets, net of accumulated amortization $ 67,102 8.3 years $ 52,054 8.3 years

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2018
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES For interim periods, the tax provision is determined utilizing an estimate of the Company’s annual effective tax rate adjusted for discrete items, if any. The Company's effective tax rate for the three and nine months ended September 30, 2019, was 13% and 25%, respectively. The Company’s effective tax rate for the three and nine months ended September 30, 2018, was 18% and 17%, respectively. The change in the effective tax rate for the three months ended September 30, 2019 , compared to the three months ended September 30, 2018 , was primarily due to the mix of projected income by jurisdiction, as well as the impact of discrete return-to-provision items relative to book income for the quarter . The increase in the effective tax rate for the nine months ended September 30, 2019 , compared to the nine months ended September 30, 2018 , was due to several factors including but not limited to the effect of favorable discrete items that increase the effective rate in the current year versus an opposite effect in the prior year given the Company’s financial position. The Company is currently in a book loss position for the nine months ended September 30, 2019 versus a book income position during the same period in the prior year . T he C ompany’s effective tax rate will generally differ from the U.S. Federal statutory rate of 21%, due to state taxes, permanent items including amounts disallowed under §162(m) of the Internal Revenue Code, the Company’s global tax strategy, and the inclusion of global intangible low-taxed income and the corresponding foreign tax credit.

Line of Credit

Line of Credit	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
LINE OF CREDIT	LINE OF CREDIT Long-term debt, net as of September 30, 2019 and December 31, 2018, was as follows: September 30, 2019 December 31, 2018 Line of credit $ 111,363 $ 58,363 Total long-term debt outstanding $ 111,363 $ 58,363 On April 12, 2018, the Company entered into an amended and restated credit and security agreement (the “2018 Credit and Security Agreement”) with KeyBank National Association, as administrative agent, Swing Line Lender and Issuing Lender, KeyBanc Capital Markets Inc., as sole lead arranger and sole book runner, and other members of the lender group, which was subsequently amended by a first amendment agreement dated as of November 28, 2018 (as amended, the “2018 Credit and Security Agreement”). On August 30, 2019 (“Amendment Date”), the Company entered into a second amendment agreement to amend the 2018 Credit Agreement and the first amendment agreement by temporarily increasing the revolving credit amount from $125,000 to $136,800 from the Amendment Date through December 31, 2019. In connection with the second amendment of the 2018 Credit and Security Agreement, the Company capitalized approximately $40 in debt issuance costs to be amortized through December 31, 2019, which was included in other assets in the condensed consolidated balance sheets.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The grant of restricted stock units with respective weighted-average fair value per share for the three and nine months ended September 30, 2019, and 2018, is summarized as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Granted 75 14 718 293 Weighted average fair value per share $ 6.59 $ 15.80 $ 9.48 $ 12.64 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 a three-year vesting term, depending on the terms of the individual grant. As part of the 718 and 293 restricted stock units granted during the nine months ended September 30, 2019, and 2018, the Company granted 287 and 182 restricted stock units to certain executives and employees of the Company where vesting is linked to specific performance criterion. These performance-based restricted stock units only vest upon the (1) Company’s achievement of specified thresholds of net sales, Adjusted EBITDA, and/or specific goals for the individual executive over a given fiscal year, and (2) continued employment through the applicable vesting date. As of September 30, 2019, the Company's management does not expect that it will meet the performance criterion for this fiscal year. As such, no amounts have been recorded in stock-based compensation expense for performance-based restricted stock for the nine months ended September 30, 2019. 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. The following are stock-based compensation expenses related to restricted stock units recorded for the three and nine months ended September 30, 2019, and 2018, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Stock-based compensation expense related to restricted stock units $ 631 $ 757 $ 3,291 $ 2,165 Certain Company employees have 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. These elections have resulted in the Company recording $887 and $2,723 reflected as a reduction of additional paid-in capital during the nine months ended September 30, 2019, and 2018, respectively. Of the $887 recorded as a reduction of additional paid-in capital, $39 was included in accrued wages and wage related expenses as of September 30, 2019.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
EARNINGS (LOSS) PER SHARE	EARNINGS (LOSS) PER SHARE: Basic earnings (loss) per common share excludes dilution and is computed by dividing net earnings (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (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 earnings (loss) per common share and diluted earnings (loss) per common share for the three and nine months ended September 30, 2019, and 2018: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income (loss) $ 8,682 $ 14,626 $ (11,078) $ 24,871 Weighted average shares outstanding: Basic 29,077 28,241 29,009 28,250 Dilutive effect of restricted stock units 50 322 — 390 Diluted 29,127 28,563 29,009 28,640 Earnings (loss) per share: Basic $ 0.30 $ 0.52 $ (0.38) $ 0.88 Diluted $ 0.30 $ 0.51 $ (0.38) $ 0.87 For the three months ended September 30, 2019, 562 restricted stock units used to purchase shares of common stock were not considered in calculating diluted earnings per share as their effect would have been anti-dilutive. For the nine months ended September 30, 2019, 776 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.

Treasury Stock

Treasury Stock	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Treasury Stock	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. On March 11, 2019, the Company's board of directors authorized the cancellation of the 2015 stock repurchase program, and authorized a new stock repurchase program of up to $20,000 of the Company's outstanding common stock. As of September 30, 2019, and December 31, 2018, a total of $20,000 and $5,462 remained authorized under the respective stock repurchase programs. The Company repurchased shares for the three and nine months ended September 30, 2019, and 2018, as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Shares repurchased — 201 72 383 Cash consideration paid $ — $ 3,091 $ 722 $ 6,097 Commissions to brokers included in cash consideration paid $ — $ 8 $ 2 $ 15 Weighted average price per share repurchased $ — $ 15.36 $ 10.00 $ 15.90 The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Commercial Litigation ZAGG Inc and mophie, Inc. v. Anker Technology Co. Ltd. and Fantasia Trading LLC, United States District Court for the Central District of California, Case No. 8:17-CV-2193-DOC-DFM (the “Anker Lawsuit”). On December 15, 2017, ZAGG and mophie filed the Anker Lawsuit alleging that Anker Technology Co. Ltd. (“Anker”) and Fantasia Trading LLC (“Fantasia”) infringe U.S. Patent Nos. 8,971,039, 9,077,013, 9,088,028, 9,088,029, 9,172,070, and 9,406,913 in connection with protective battery cases for smartphones. The Anker products accused of infringement include Anker’s Ultra Slim Extended Battery Case for iPhone® 6 / 6s (4.7 inch) with 2850mAh capacity; Premium Extended Battery Case for iPhone 6 / 6s (4.7 inch) with 3100mAh Capacity; PowerCore Case for iPhone 7 (4.7 inch), 80% Extra Battery; PowerCore Case for iPhone 7 (4.7 inch), 95% Extra Battery; and 2400mAh MFI Certified Rubber-Feel Premium Rechargeable Extended Battery Case for iPhone 5s, 5. The complaint filed by ZAGG and mophie seeks monetary damages and an injunction against Anker. On March 12, 2018, Anker and Fantasia filed answers and counterclaims in the lawsuit. In their answers, Anker and Fantasia denied infringement of any valid claim and asserted counterclaims for non-infringement and invalidity of the patents at issue. The parties have reached a confidential settlement, and Anker and Fantasia have ceased sales of the battery cases accused of infringement. The Anker Lawsuit was dismissed in June 2019. Best Case and Accessories, Inc. v. Zagg, Inc. United States District Court for the Eastern District of New York, Case No. 1:18-CV-04048-LDH-RML (the “ New York Best Case Lawsuit ” ) . On July 13, 2018, Best Case and Accessories, Inc. (“Best Case”) filed a complaint against the Company. The Company had previously sent a letter to Best Case alleging that it was using product packaging and display trade dress that is confusingly similar to the Company's trade dress. In the complaint, Best Case alleged that it does not infringe the Company's trade dress and that the Company interfered with Best Case's business relationships, which the Company disputes. To respond to these allegations and defend against the claims of the New York Best Case Lawsuit, the Company filed a complaint for trade dress infringement against Best Case on February 8, 2019 in the United States District Court for the District of Utah, Case No. 2:19-CV-00090-PMW (the “Utah Best Case Lawsuit”). In October 2019, t he parties reached a settlement in which Best Case agreed to make changes to its packaging and display trade dress, as well as dismiss with prejudice the tortious interference claim. Both the New York Best Case Lawsuit and the Utah Best Case Lawsuit were dismissed in October 2019. Dan Dolar, an individual and on behalf of those similarly situated, Plaintiff, v. Mophie Inc., a California corporation, Defendant, Superior Court of the State of California, Orange County, Case No. 30-2019-01066228-CU-BT-CXC . On April 25, 2019, Dolar filed a complaint against mophie inc. (“mophie”) alleging, among other things, violation of California Consumers Legal Remedies Act, California False Advertising Law, breach of express warranty, violation of the Magnuson-Moss Warranty Act, violation of California Unfair Competition Law, and violation of state Consumer Protection Statutes. The complaint alleged that mophie mischaracterizes the mAh ratings of the batteries in its products, and asked the court to certify a class of Californians who purchased mophie battery-enabled products. On June 14, 2019, the court dismissed the complaint without prejudice at Dolar’s request so that Dolar’s claims could be pursued in the United States District Court in the case of Young v. Mophie Inc. , Case No. 8:19-cv-00827-JVS-DFM, discussed below. Michael Young and Dan Dolar, individually and on behalf of other similarly situated individuals, Plaintiff, v. Mophie Inc., Defendant, United States District Court, Central District of California , Case No. 8:19-cv-00827-JVS-DFM. This action started with a complaint filed by Young against mophie on May 2, 2019. On June 13, 2019, Young and Dolar joined together as plaintiffs and filed a first amended complaint (the “FAC”). In the FAC, Young and Dolar allege, among other things, that mophie has engaged in unfair and deceptive acts and practices in violation of the California Consumer Legal Remedies Act, violation of California’s False Advertising Law, violation of California’s Unfair Competition Law, violation of the Florida Deceptive and Unfair Trade Practices Act, violation of purportedly material identical state consumer protection statutes in various other states, violation of the Magnuson-Moss Warranty Act, breach of express warranty, and unjust enrichment. The FAC is based on Young’s and Dolar’s allegation that mophie mischaracterizes the mAh ratings of the batteries in certain of its products. Young and Dolar seek to certify a class of consumer nationwide and in various states who purchased mophie battery-enabled products. The FAC does not specify an amount of damages claimed, but alleges that damages will be in excess of $5,000. On July 11, 2019, mophie filed a motion to dismiss all of the claims asserted in the action. On October 9, 2019, the court entered an order granting in part and denying in part mophie's motion to dismiss. In its order, the court dismissed Young’s and Dolar’s Multi-State class of claims brought under the laws of states other than California and Florida, and the court denied the other relief requested in mophie’s motion to dismiss. mophie denies that it has engaged in the alleged practices, and intends to vigorously defend the lawsuit. Enchanted IP v. mophie, Inc., United States District Court, Central District of California, Case No. 8:19-cv-1648. On August 27, 2019, Enchanted IP LLC filed an action for patent infringement against mophie in the Central District of California, asserting U.S. Patent No. 6,194,871. This patent generally relates to a charge and discharge control circuit for an external secondary battery. The complaint identifies mophie’s juice pack reserve micro product as an accused product and seeks damages and injunctive relief. Enchanted IP does not appear to make or sell any products, and the asserted ‘871 patent expires in April 2020. On October 21, 2019, ZAGG responded to the Complaint, formally asserting its defenses and counterclaims. No schedule for the case has been set. Shenzhen CN-iMX Technology Co., Ltd. v. Apple Electronic Products Trading (Beijing) Co., Ltd. and ZAGG (Shenzhen) Technology Development Co., Ltd. (2019) Yue 03 Pre-docketing Mediation No. 3234. On or about August 29, 2019, Shenzhen CN-iMX Technology Co., Ltd. filed an action in Shenzhen Intermediate Court against ZAGG China and Apple, asserting infringement of Chinese Patent No. ZL 2012 1 0335618.4 relating to a method of wireless charging. The action identifies mophie’s powerStation wireless XL charger as an accused product and seeks damages and injunctive relief. Because the infringement action has not yet been formally docketed, the Company has not yet filed a substantive response. On or about September 16, 2019, the Company filed a separate invalidation request (Case No. 4W9507) to challenge the validity of the patent, and that action is currently pending. SEC Investigation The Company previously disclosed an investigation by the SEC related to 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. On March 7, 2019, the Staff of the SEC informed the Company that, after additional consideration and analysis, it decided to terminate the investigation and dismiss the matter. 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 probable 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. The Company has not accrued for any losses in the condensed consolidated financial statements as of September 30, 2019, due to the fact that either the losses are immaterial or the losses are not considered 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	9 Months Ended
	Sep. 30, 2019
Risks and Uncertainties [Abstract]
CONCENTRATIONS	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 customarily exceed federally insured limits. The Company has not experienced any losses in cash accounts for the nine months ended September 30, 2019, and 2018. As of September 30, 2019, and December 31, 2018, two separate customers were equal to or exceeded 10% of the balance of accounts receivable, respectively, as follows: September 30, 2019 December 31, 2018 Verizon Wireless (“Verizon”) 30% 1% Best Buy Co., Inc. (“Best Buy”) 11% 15% Superior Communications, Inc. (“Superior”) 8% 50% The Company began transitioning to a direct sales relationship with Verizon during the second half of 2018, which has continued to progress throughout 2019. Previous to the Company's direct sales relationship with Verizon, Verizon purchased the Company's products through Superior. Other than the customers noted in the table above, no other customer account balances were more than 10% of accounts receivable as of September 30, 2019, and December 31, 2018. 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 net sales For the three and nine months ended September 30, 2019, Verizon accounted for over 10% of net sales, and for the three and nine months ended September 30, 2018, Superior and Best Buy accounted for over 10% of net sales, as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Verizon 23% 1% 15% 1% Best Buy 9% 12% 9% 11% Superior 3% 36% 5% 33% For the three and nine months ended September 30, 2019, and 2018, no other customers accounted for greater than 10% of net sales. Although the Company has contracts in place governing the relationships with its retail distribution customers (“retailers”), the contracts are not long-term and all the retailers generally purchase from the Company using purchase orders. As a result, these retailers generally may, with little or no notice or penalty, cease ordering and selling the Company’s products, or materially reduce their orders. If any of these retailers cease selling the Company’s products, slow their rate of purchase of its products, or decrease the number of products they purchase, the Company’s results of operations could be adversely affected.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Use of estimates	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 at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods, with related disclosures of these amounts in the notes to the financial statements. Actual results could differ from those estimates.
Recent accounting pronouncements	Adoption of Accounting Standards Codification (“ASC”) Topic 842, “Leases” (In thousands, except lease terms and discount rates) The Company adopted ASC Topic 842 ,“Leases” (“Topic 842”) with a date of initial application of January 1, 2019. As a result of this adoption, the Company has changed its accounting policy for leases as detailed below. The Company applied Topic 842 on January 1, 2019, using the modified retrospective approach. The adoption of Topic 842 includes the cumulative effect of adopting the new standard being recognized in retained earnings at January 1, 2019, which allows for the application of the standard solely to the transition period in 2019 but does not require application to prior fiscal comparative periods presented. Therefore, the prior period comparative information has not been adjusted and continues to be reported under the previous ASC Topic 840, “Leases” (“Topic 840”) standard. The Company also elected the package of available practical expedients allowable under Topic 842 guidelines in its adoption approach. The adoption of Topic 842 resulted in an increase in long-term lease liabilities of $10,684 which was included in operating lease liabilities; an increase in short-term lease liabilities of $2,362 which was included in current portion of operating lease liabilities; an initial recognition of right of use ( “ ROU”) assets of $8,842 which was included in operating lease right of use assets; an increase of deferred tax assets, net of $1,424; a derecognition of $3,346 related to lease liabilities under Topic 840 which was included in accrued liabilities; a decrease in deferred rent of $819 which was included in accrued liabilities; and a decrease of $39 in retained earnings as a cumulative effect of adoption.
Lease accounting policy	Lease accounting policy The Company determines if an arrangement is a lease at contract inception and then determines if such qualifying lease is classified as an operating lease or a finance lease. As of September 30, 2019, the Company only has operating leases. For operating leases, the Company measures lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of its leases do not provide an implicit rate, the Company uses an incremental borrowing rate ( “ IBR”) based on relevant information available at each leases' commencement date in determining the present value of future payments for each individual lease. The IBR is obtained by request from the Company's banking partners, who apply a collateralized rate of borrowing based on each leases’ specific term and based on the Company’s credit worthiness. ROU assets are measured as the sum of the amount of the initial measurement of the lease liability, plus any prepaid lease payments made minus any lease incentives received, and any initial direct costs incurred. The Company’s lease terms may include options to extend or terminate leases that will be recognized when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components under the definition of Topic 842. Upon adoption of Topic 842, the Company elected a practical expedient not to separate the lease and non-lease components for its leases for physical space and equipment and accounts for them as a single lease component.
Accounting Standards Update 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Recent accounting pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board issued Accounting Standard Update No. 2016-13, “Measurement of Credit Losses on Financial Instruments” (“Topic 326”), which replaces the incurred loss impairment methodology under the current guidance with an expected loss methodology that requires consideration of forward-looking information to estimate credit losses, with reasonable and supportable documentation. Topic 326 is effective for annual and interim periods beginning after December 15, 2019. The Company plans to adopt the guidance prospectively with recording a cumulative effect adjustment in retained earnings beginning January 1, 2020. The Company notes that Topic 326 will impact its short-term credit receivables, and is currently evaluating new credit loss models and its processes and controls in preparation for the adoption of Topic 326. The Company does not expect the adoption to have a material impact on the consolidated statement of operations or the beginning balance of retained earnings.

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of New Accounting Pronouncements - Summary of Right of Use Assets and Lease Liabilities	The following summarizes the activities in the Company’s ROU assets and lease liabilities for the nine months ended September 30, 2019: Beginning Balance as of January 1, 2019 Adoption of Topic 842 Additions Costs Ending Balance as of September 30, 2019 Operating lease ROU assets $ — $ 8,842 $ 3,122 $ (1,897) $ 10,067 Beginning Balance as of January 1, 2019 Adoption of Topic 842 Additions Payments, less accretion Ending Balance as of September 30, 2019 Operating lease liabilities $ — $ 13,046 $ 2,131 $ (1,913) $ 13,264
Future Maturities of Lease Liabilities	Future maturities of lease liabilities as of September 30, 2019 were as follows: Remaining 2019 $ 906 2020 3,208 2021 2,718 2022 2,735 2023 2,199 Thereafter 3,136 Total lease payments 14,902 Less: imputed interest (1,638) Lease liabilities $ 13,264
Schedule of Future Minimum Rental Payments for Operating Leases	Minimum rental payments for operating leases required under Topic 840 as of December 31, 2018, are as follows: 2019 $ 3,198 2020 2,842 2021 2,457 2022 2,517 2023 1,976 Thereafter 2,098 Total operating lease commitments $ 15,088

Revenue (Tables)

Revenue (Tables)	9 Months Ended
	Sep. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The percentage of net sales related to the Company’s key product lines for the three and nine months ended September 30, 2019, and 2018, was a pproximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Protection (screen protection and cases) 59% 64% 57% 57% Power (power management and power cases) 31% 27% 31% 33% Audio 3% 3% 4% 4% Productivity (keyboards and other) 7% 6% 8% 6% The percentage of net sales related to the Company’s key distribution channels for the three and nine months ended September 30, 2019, and 2018, was approximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Indirect channel 88% 88% 85% 88% Website 7% 7% 10% 8% Franchisees 5% 5% 5% 4% The percentage of net sales related to the Company’s key geographic regions for the three and nine months ended September 30, 2019, an d 2018, wa s approximately as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 United States 79% 85% 75% 84% Europe 12% 8% 13% 9% Other 9% 7% 12% 7%
Schedule of Receivables, Right of Return Assets, Contract Liabilities, Refund Liabilities, and Warranty Liabilities	The following table provides information about receivables, right of return assets, contract liabilities, refund liabilities, and warranty liabilities from the Company’s contracts with customers as of September 30, 2019, and December 31, 2018: September 30, 2019 December 31, 2018 Receivables, which comprises the balance in accounts receivable, net of allowances $ 135,345 $ 156,667 Right of return assets, which are included in prepaid expenses and other current assets 800 999 Refund liabilities, which are included in sales return liability 37,321 49,786 Warranty liabilities, which are included in sales return liability 3,923 4,646 Contract liabilities, which are included in accrued liabilities 50 96
Schedule of Warrant Liabilities Activity	The following summarizes the activities in the Company’s warranty liabilities for the nine months ended September 30, 2019: Balance as of December 31, 2018 $ 4,646 Additions 7,858 Warranty claims charged (8,581) Balance as of September 30, 2019 $ 3,923

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2019
Business Combinations [Abstract]
Summary of purchase consideration	The following summarizes the components of the purchase consideration for HALO: Preliminary Allocation Adjustments to Working Capital and Fair Value Final Allocation January 3, 2019 Cash consideration $ 23,943 $ (294) $ 23,649 Company common stock 12,968 — 12,968 Contingent consideration 1,593 (49) 1,544 Total purchase price $ 38,504 $ (343) $ 38,161
Schedule of identifiable assets acquired and liabilities assumed	Preliminary Allocation Adjustments to Working Capital and Fair Value Final Allocation January 3, 2019 Cash $ 1,151 $ 4 $ 1,155 Accounts receivable 2,436 (219) 2,217 Inventory 2,889 — 2,889 Inventory step up 494 — 494 Prepaid expenses and other assets 1,310 17 1,327 Property and equipment 627 — 627 Amortizable identifiable intangible assets 27,554 507 28,061 Goodwill 15,922 9 15,931 Operating lease right of use assets — 649 649 Other assets 546 (546) — Accounts payable (2,867) 126 (2,741) Income tax payable (501) 119 (382) Accrued expenses (217) 36 (181) Notes payable — (42) (42) Accrued wages and wage related expenses (324) 55 (269) Sales return liability (2,728) — (2,728) Deferred tax liability, net (6,177) (894) (7,071) Lease liabilities — (1,775) (1,775) Other long-term liabilities (1,611) 1,611 — Total $ 38,504 $ (343) $ 38,161
Summary of intangible asset class and related preliminary weighted average amortization periods	The amounts assigned to each class of intangible asset and the related weighted average amortization periods are as follows: Intangible Asset Class Weighted Average Amortization Period Patents and technology $ 11,307 8.9 years Trade names 4,408 10.0 years Customer relationships 12,346 8.0 years Total $ 28,061
Pro forma results of operations - HALO	The following pro-forma results of operations for the three months ended September 30, 2018, and for the nine months ended September 30, 2019, and 2018, give pro forma effect as if the acquisitions of HALO and Gear4 and the related borrowings used to finance the acquisition had occurred on January 1, 2018, 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. For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2019 September 30, 2018 Net sales $ 159,060 $ 332,034 $ 398,433 Net income (loss) $ 15,626 $ (9,953) $ 17,371 Basic earnings (loss) per share $ 0.55 $ (0.34) $ 0.61 Diluted earnings (loss) per share $ 0.55 $ (0.34) $ 0.61
Nonrecurring pro forma adjustments	The nonrecurring pro forma adjustments attributable to the pro forma results of operations are as follows: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2019 September 30, 2018 Amortization expense $ 1,666 $ 89 $ 4,999 Transaction costs $ 422 $ (736) $ 1,028 Amortization of fair value adjustment to inventory $ — $ (494) $ 589 Interest from the amended credit facility and amortization of debt issuance costs $ 433 $ — $ 1,299

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2019
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following as of September 30, 2019, and December 31, 2018: September 30, 2019 December 31, 2018 Finished goods $ 133,406 $ 81,397 Raw materials 5,046 1,522 Total inventories $ 138,452 $ 82,919

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in goodwill during the nine months ended September 30, 2019: Goodwill balance as of December 31, 2018 $ 27,638 Addition in connection with HALO Acquisition 15,931 Goodwill balance as of September 30, 2019 $ 43,569
Schedule of Long-Lived Intangible Assets, Net of Amortization	The following table summarizes the changes in intangible assets during the nine months ended September 30, 2019: Intangible assets balance as of December 31, 2018 $ 130,681 Addition in connection with HALO Acquisition 28,061 Intangible assets balance as of September 30, 2019 $ 158,742 There were $1,774 additions to intangible assets for the three and nine months ended September 30, 2018. Additionally, there were no impairments of intangible assets for the three and nine months ended September 30, 2019, and 2018. Intangible assets, net of accumulated amortization as of September 30, 2019, and December 31, 2018, were as follows: September 30, 2019 Weighted Average Amortization Period December 31, 2018 Weighted Average Amortization Period Trade names $ 27,253 9.7 years $ 26,988 9.9 years Patents and technology 16,486 8.3 years 8,723 8.0 years Customer relationships 22,854 7.7 years 15,560 7.6 years Non-compete agreements 509 4.9 years 778 4.9 years Other — 1.8 years 5 1.8 years Total intangible assets, net of accumulated amortization $ 67,102 8.3 years $ 52,054 8.3 years

Line of Credit (Tables)

Line of Credit (Tables)	9 Months Ended
	Sep. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt, net as of September 30, 2019 and December 31, 2018, was as follows: September 30, 2019 December 31, 2018 Line of credit $ 111,363 $ 58,363 Total long-term debt outstanding $ 111,363 $ 58,363

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Share-based Compensation, Restricted Stock Units Award Activity	The grant of restricted stock units with respective weighted-average fair value per share for the three and nine months ended September 30, 2019, and 2018, is summarized as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Granted 75 14 718 293 Weighted average fair value per share $ 6.59 $ 15.80 $ 9.48 $ 12.64
Schedule of Stock-Based Compensation Expense Related To Restricted Stock Units	The following are stock-based compensation expenses related to restricted stock units recorded for the three and nine months ended September 30, 2019, and 2018, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Stock-based compensation expense related to restricted stock units $ 631 $ 757 $ 3,291 $ 2,165

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 2019
Earnings Per Share [Abstract]
Schedule of reconciliation of the numerator and denominator used to calculate basic earnings (loss) per share and diluted earnings (loss) per share	The following is a reconciliation of the numerator and denominator used to calculate basic earnings (loss) per common share and diluted earnings (loss) per common share for the three and nine months ended September 30, 2019, and 2018: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Net income (loss) $ 8,682 $ 14,626 $ (11,078) $ 24,871 Weighted average shares outstanding: Basic 29,077 28,241 29,009 28,250 Dilutive effect of restricted stock units 50 322 — 390 Diluted 29,127 28,563 29,009 28,640 Earnings (loss) per share: Basic $ 0.30 $ 0.52 $ (0.38) $ 0.88 Diluted $ 0.30 $ 0.51 $ (0.38) $ 0.87

Treasury Stock (Tables)

Treasury Stock (Tables)	9 Months Ended
	Sep. 30, 2019
Equity [Abstract]
Class of Treasury Stock	The Company repurchased shares for the three and nine months ended September 30, 2019, and 2018, as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Shares repurchased — 201 72 383 Cash consideration paid $ — $ 3,091 $ 722 $ 6,097 Commissions to brokers included in cash consideration paid $ — $ 8 $ 2 $ 15 Weighted average price per share repurchased $ — $ 15.36 $ 10.00 $ 15.90

Concentrations (Tables)

Concentrations (Tables)	9 Months Ended
	Sep. 30, 2019
Risks and Uncertainties [Abstract]
Schedule of concentration risk by accounts receivable	As of September 30, 2019, and December 31, 2018, two separate customers were equal to or exceeded 10% of the balance of accounts receivable, respectively, as follows: September 30, 2019 December 31, 2018 Verizon Wireless (“Verizon”) 30% 1% Best Buy Co., Inc. (“Best Buy”) 11% 15% Superior Communications, Inc. (“Superior”) 8% 50%
Schedule of concentration risk by net sales	For the three and nine months ended September 30, 2019, Verizon accounted for over 10% of net sales, and for the three and nine months ended September 30, 2018, Superior and Best Buy accounted for over 10% of net sales, as follows: For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Verizon 23% 1% 15% 1% Best Buy 9% 12% 9% 11% Superior 3% 36% 5% 33%

Nature of Operations and Basi_4

Nature of Operations and Basis of Presentation - Adoption of ASC Topic 842, "Leases" Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities	$ 11,135		$ 11,135
Current portion of operating lease liabilities	2,129		2,129
Operating lease right of use assets	10,067		10,067
Deferred tax assets, net					$ 1,424
Accrued liabilities	$ 18,911		$ 18,911			$ 13,723
Lease term, option to extend	10 years		10 years
Rent expense, under Topic 842	$ 1,123		$ 2,775
Rent expense, before Topic 842		$ 768		$ 2,314
Weighted average remaining lease term	5 years 2 months 12 days		5 years 2 months 12 days
Weighted average discount rate, percent	4.42%		4.42%
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease liabilities					10,684
Current portion of operating lease liabilities					2,362
Operating lease right of use assets					8,842
Accrued liabilities					819
Retained earnings					39
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease term			4 months
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Remaining lease term			8 years
Build to suit lease | ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accrued liabilities					$ 3,346

Nature of Operations and Basi_5

Nature of Operations and Basis of Presentation - Activities in ROU Assets and Lease Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Reconciliation of Operating Lease Right of Use Asset [Roll Forward]
Ending balance	$ 10,067
Reconciliation of Operating Lease Liabilities [Roll Forward]
Ending balance	13,264
ASU 2016-02
Reconciliation of Operating Lease Right of Use Asset [Roll Forward]
Additions	3,122
Costs	(1,897)
Reconciliation of Operating Lease Liabilities [Roll Forward]
Additions	2,131
Payments, less accretion	$ (1,913)

Nature of Operations and Basi_6

Nature of Operations and Basis of Presentation - Future Maturities of Leases (Details) $ in Thousands	Sep. 30, 2019USD ($)
Accounting Policies [Abstract]
Remaining 2019	$ 906
2020	3,208
2021	2,718
2022	2,735
2023	2,199
Thereafter	3,136
Total lease payments	14,902
Less: imputed interest	(1,638)
Lease liabilities	$ 13,264

Nature of Operations and Basi_7

Nature of Operations and Basis of Presentation - Minimum Rental Payments for Operating Leases (Details) $ in Thousands	Dec. 31, 2018USD ($)
Operating Leases, Future Minimum Payments Due, Rolling Maturity [Abstract]
2019	$ 3,198
2020	2,842
2021	2,457
2022	2,517
2023	1,976
Thereafter	2,098
Total operating lease commitments	$ 15,088

Revenue - Percentage of Net Sal

Revenue - Percentage of Net Sales (Details) - Revenue from Contract with Customer	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Distribution Channel Concentration Risk | Indirect channel
Disaggregation of Revenue [Line Items]
Percentage of sales	88.00%	88.00%	85.00%	88.00%
Distribution Channel Concentration Risk | Website
Disaggregation of Revenue [Line Items]
Percentage of sales	7.00%	7.00%	10.00%	8.00%
Distribution Channel Concentration Risk | Franchisees
Disaggregation of Revenue [Line Items]
Percentage of sales	5.00%	5.00%	5.00%	4.00%
Geographic Concentration Risk | United States
Disaggregation of Revenue [Line Items]
Percentage of sales	79.00%	85.00%	75.00%	84.00%
Geographic Concentration Risk | Europe
Disaggregation of Revenue [Line Items]
Percentage of sales	12.00%	8.00%	13.00%	9.00%
Geographic Concentration Risk | Other
Disaggregation of Revenue [Line Items]
Percentage of sales	9.00%	7.00%	12.00%	7.00%
Protection (screen protection and cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	59.00%	64.00%	57.00%	57.00%
Power (power management and power cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	31.00%	27.00%	31.00%	33.00%
Audio | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	3.00%	3.00%	4.00%	4.00%
Productivity (keyboards and other) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	7.00%	6.00%	8.00%	6.00%

Revenue - Contract with Custome

Revenue - Contract with Customers (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2018
Revenue from Contract with Customer [Abstract]
Receivables, which comprises the balance in accounts receivable, net of allowances	$ 135,345	$ 135,345	$ 156,667
Right of return assets, which are included in prepaid expenses and other current assets	800	800	999
Refund liabilities, which are included in sales return liability	37,321	37,321	49,786
Warranty liabilities, which are included in sales return liability	3,923	3,923	4,646
Contract liabilities, which are included in accrued liabilities	50	50	$ 96
Revenue recognized, included in contract liabilities	$ 10	$ 46

Revenue - Warranty Liability Ac

Revenue - Warranty Liability Activity (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 4,646
Additions	7,858
Warranty claims charged	(8,581)
Ending balance	$ 3,923

Acquisitions - Components of Pu

Acquisitions - Components of Purchase Consideration for HALO (Details) - USD ($) shares in Thousands, $ in Thousands	Jan. 03, 2019	Sep. 30, 2019
Restructuring Cost and Reserve [Line Items]
Shares issued as consideration for acquisition		$ 12,968
HALO
Restructuring Cost and Reserve [Line Items]
Total consideration for acquisition	$ 38,161
HALO | Earnout Consideration
Restructuring Cost and Reserve [Line Items]
Total cash outflow	$ 23,649
Number of shares included in total consideration	1,458
Shares issued as consideration for acquisition	$ 12,968
Contingent payments	$ 1,544
Contingent consideration adjustment period	90 days
HALO | Third Party Indemnification Liability
Restructuring Cost and Reserve [Line Items]
Shares issued as consideration for acquisition	$ 2,130
Contingent consideration period	18 months
Pro Forma | HALO
Restructuring Cost and Reserve [Line Items]
Total consideration for acquisition	$ 38,504
Pro Forma | HALO | Earnout Consideration
Restructuring Cost and Reserve [Line Items]
Total cash outflow	23,943
Shares issued as consideration for acquisition	12,968
Contingent payments	1,593
Scenario, Adjustment | HALO
Restructuring Cost and Reserve [Line Items]
Total consideration for acquisition	(343)
Scenario, Adjustment | HALO | Earnout Consideration
Restructuring Cost and Reserve [Line Items]
Total cash outflow	(294)
Shares issued as consideration for acquisition	0
Contingent payments	$ (49)

Acquisitions - Fair Value of Ac

Acquisitions - Fair Value of Acquisition (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 03, 2019	Dec. 31, 2018
Restructuring Cost and Reserve [Line Items]
Goodwill	$ 43,569		$ 27,638
HALO
Restructuring Cost and Reserve [Line Items]
Cash		$ 1,155
Accounts receivable		2,217
Inventory		2,889
Inventory step up		494
Prepaid expenses and other assets		1,327
Property and equipment		627
Amortizable identifiable intangible assets		28,061
Goodwill		15,931
Operating lease right of use assets		649
Other assets		0
Accounts payable		(2,741)
Income tax payable		(382)
Accrued expenses		(181)
Notes payable		42
Accrued wages and wage related expenses		(269)
Sales return liability		(2,728)
Deferred tax liability, net		(7,071)
Lease liabilities		(1,775)
Other long-term liabilities		0
Total		38,161
Pro Forma | HALO
Restructuring Cost and Reserve [Line Items]
Cash		1,151
Accounts receivable		2,436
Inventory		2,889
Inventory step up		494
Prepaid expenses and other assets		1,310
Property and equipment		627
Amortizable identifiable intangible assets		27,554
Goodwill		15,922
Operating lease right of use assets		0
Other assets		546
Accounts payable		(2,867)
Income tax payable		(501)
Accrued expenses		(217)
Notes payable		0
Accrued wages and wage related expenses		(324)
Sales return liability		(2,728)
Deferred tax liability, net		(6,177)
Lease liabilities		0
Other long-term liabilities		(1,611)
Total		38,504
Scenario, Adjustment | HALO
Restructuring Cost and Reserve [Line Items]
Cash		4
Accounts receivable		(219)
Inventory		0
Inventory step up		0
Prepaid expenses and other assets		17
Property and equipment		0
Amortizable identifiable intangible assets		507
Goodwill		9
Operating lease right of use assets		649
Other assets		(546)
Accounts payable		126
Income tax payable		119
Accrued expenses		36
Notes payable		42
Accrued wages and wage related expenses		55
Sales return liability		0
Deferred tax liability, net		(894)
Lease liabilities		(1,775)
Other long-term liabilities		1,611
Total		$ (343)

Acquisitions - Intangible Asset

Acquisitions - Intangible Asset Class (Details) - HALO $ in Thousands	Jan. 03, 2019USD ($)
Finite-Lived Intangible Assets [Line Items]
Intangible Asset Class	$ 28,061
Patents and technology
Finite-Lived Intangible Assets [Line Items]
Intangible Asset Class	$ 11,307
Weighted Average Amortization Period	8 years 10 months 24 days
Trade names
Finite-Lived Intangible Assets [Line Items]
Intangible Asset Class	$ 4,408
Weighted Average Amortization Period	10 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible Asset Class	$ 12,346
Weighted Average Amortization Period	8 years

Acquisitions - Results of Opera

Acquisitions - Results of Operations and Pro Forma Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Transaction costs	$ 547	$ 618	$ 1,168	$ 635
Pro forma net loss before tax			2,103
Business Acquisition, Pro Forma Information [Abstract]
Net (loss) income	8,682	14,626	(11,078)	24,871
Interest from the amended credit facility and amortization of debt issuance costs
Business Acquisition, Pro Forma Information [Abstract]
Net (loss) income		433	0	1,299
HALO
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Transaction costs	$ 453		736
Pro forma net sales			15,126
Business Acquisition, Pro Forma Information [Abstract]
Net sales		159,060	332,034	398,433
Net (loss) income		$ 15,626	$ (9,953)	$ 17,371
Basic (loss) earnings per share (in usd per share)		$ 0.55	$ (0.34)	$ 0.61
Diluted (loss) earnings per share (in usd per share)		$ 0.55	$ (0.34)	$ 0.61
Amortization expense		$ 1,666	$ 89	$ 4,999
HALO | Transaction costs
Business Acquisition, Pro Forma Information [Abstract]
Net (loss) income		422	(736)	1,028
HALO | Amortization of fair value adjustment to inventory
Business Acquisition, Pro Forma Information [Abstract]
Net (loss) income		$ 0	$ (494)	$ 589

Inventories - Schedule Of Inven

Inventories - Schedule Of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods	$ 133,406	$ 81,397
Raw materials	5,046	1,522
Total inventories	$ 138,452	$ 82,919

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Inventory deposits with third-party manufacturers	$ 345	$ 382

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Sep. 30, 2018
Goodwill [Roll Forward]
Goodwill, beginning balance			$ 27,638,000
Addition in connection with HALO Acquisition	$ 0	$ 298,000	$ 15,931,000	$ 298,000
Goodwill, ending balance	$ 43,569,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Change in goodwill	$ 0	$ 298,000	$ 15,931,000		$ 298,000
Increase in intangible assets	0	1,774,000			1,774,000
Impairment of finite-lived intangible asset	$ 0	$ 0		$ 0	0
Weighted average useful lives of amortizable intangible assets				8 years 3 months 18 days		8 years 3 months 18 days
HALO
Finite-Lived Intangible Assets [Line Items]
Increase in intangible assets					$ 0

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Intangible Assets Reconciliation (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)
Finite-lived Intangible Assets [Roll Forward]
Intangible assets, beginning balance	$ 130,681
Addition in connection with HALO Acquisition	28,061
Intangible assets, ending balance	$ 158,742

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Long-lived Intangible Assets, Net of Amortization (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 67,102	$ 52,054
Weighted Average Amortization Period	8 years 3 months 18 days	8 years 3 months 18 days
Trade names
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 27,253	$ 26,988
Weighted Average Amortization Period	9 years 8 months 12 days	9 years 10 months 24 days
Patents and technology
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 16,486	$ 8,723
Weighted Average Amortization Period	8 years 3 months 18 days	8 years
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 22,854	$ 15,560
Weighted Average Amortization Period	7 years 8 months 12 days	7 years 7 months 6 days
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 509	$ 778
Weighted Average Amortization Period	4 years 10 months 24 days	4 years 10 months 24 days
Other
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 0	$ 5
Weighted Average Amortization Period	1 year 9 months 18 days	1 year 9 months 18 days

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective tax rate	13.00%	18.00%	25.00%	17.00%

Line of Credit (Details)

Line of Credit (Details) - USD ($)	Dec. 31, 2019	Sep. 30, 2019	Aug. 30, 2019	Dec. 31, 2018
Debt Instrument, Redemption [Line Items]
Line of credit		$ 111,363,000		$ 58,363,000
Line of Credit
Debt Instrument, Redemption [Line Items]
Maximum revolver amount			$ 125,000,000
2018 Credit and Security Agreement, Second Amendment [Member]
Debt Instrument, Redemption [Line Items]
Maximum revolver amount			$ 136,800,000
Forecast | 2018 Credit and Security Agreement, Second Amendment [Member]
Debt Instrument, Redemption [Line Items]
Debt issuance costs	$ 40,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjustments to additional paid-in capital			$ 887	$ 2,723
Withholding tax on restricted stock units recorded in accrued wages and wage related expenses			39	93
Selling, general, and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense related to restricted stock units	$ 631	$ 757	$ 3,291	$ 2,165
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	75	14	718	293
Weighted-average fair value of restricted stock per share (in usd per share)	$ 6.59	$ 15.80	$ 9.48	$ 12.64
Restricted stock units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)			287	182
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			9 months
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years

Earnings (Loss) Per Share - Rec

Earnings (Loss) Per Share - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Net income (loss)	$ 8,682	$ 14,626	$ (11,078)	$ 24,871
Weighted average shares outstanding:
Basic (in shares)	29,077	28,241	29,009	28,250
Dilutive effect of restricted stock units and warrants (in shares)	50	322	0	390
Diluted (in shares)	29,127	28,563	29,009	28,640
Earnings (loss) per share:
Basic (in usd per share)	$ 0.30	$ 0.52	$ (0.38)	$ 0.88
Diluted (in usd per share)	$ 0.30	$ 0.51	$ (0.38)	$ 0.87

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share [Abstract]
Restricted stock (in shares)	562	65	562	98

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 11, 2019	Dec. 31, 2018	Dec. 31, 2015
Equity [Abstract]
Authorized stock repurchase amount					$ 20,000,000		$ 20,000,000
Remaining amount authorized under stock repurchase program	$ 20,000,000		$ 20,000,000			$ 5,462,000
Shares repurchased	0	201	72	383
Cash consideration paid	$ 0	$ 3,091,000	$ 722,000	$ 6,097,000
Commissions to brokers included in cash consideration paid	$ 0	$ 8,000	$ 2,000	$ 15,000
Weighted average price per share repurchased (in dollars per share)	$ 0	$ 15.36	$ 10	$ 15.90

Commitment and Contingencies (D

Commitment and Contingencies (Details) $ in Thousands	Jun. 13, 2019USD ($)
Minimum | Pending Litigation | Young and Dolar
Loss Contingencies [Line Items]
Estimated damages sought, minimum	$ 5,000

Concentrations - Concentration

Concentrations - Concentration of Credit Risk and Concentration of Net Sales (Details) - Customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Concentration Risk [Line Items]
Number of major customers	2		2
Customer Concentration Risk | Accounts Receivable | Superior
Concentration Risk [Line Items]
Percentage of sales			8.00%		50.00%
Customer Concentration Risk | Accounts Receivable | Best Buy
Concentration Risk [Line Items]
Percentage of sales			11.00%		15.00%
Customer Concentration Risk | Accounts Receivable | Verizon
Concentration Risk [Line Items]
Percentage of sales			30.00%		1.00%
Customer Concentration Risk | Revenue from Contract with Customer | Superior
Concentration Risk [Line Items]
Percentage of sales	3.00%	36.00%	5.00%	33.00%
Customer Concentration Risk | Revenue from Contract with Customer | Best Buy
Concentration Risk [Line Items]
Percentage of sales	9.00%	12.00%	9.00%	11.00%
Customer Concentration Risk | Revenue from Contract with Customer | Verizon
Concentration Risk [Line Items]
Percentage of sales	23.00%	1.00%	15.00%	1.00%

Uncategorized Items - zagg-2019

Label	Element	Value
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (39,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(3,880,000)
Common Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	34,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 34,000
Shares, Outstanding	us-gaap_SharesOutstanding	34,104,000
Shares, Outstanding	us-gaap_SharesOutstanding	34,457,000
Retained Earnings [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	$ 113,075,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	73,925,000
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(39,000)
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	(3,880,000)
Treasury Stock [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(37,637,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(49,733,000)
Additional Paid-in Capital [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	96,486,000
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	96,145,000
AOCI Attributable to Parent [Member]
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(1,410,000)
Stockholders' Equity Attributable to Parent	us-gaap_StockholdersEquity	(348,000)
Accounting Standards Update 2016-02 [Member]
Operating Lease, Liability	us-gaap_OperatingLeaseLiability	$ 13,046,000