ZAGG (ZAGG) 10-Q 28 May 20 2020 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2020	May 27, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2020
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		29,814,797
Entity Central Index Key	0001296205
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 14,150
Accounts receivable, net of allowances of $1,655 and $1,143	83,746	$ 142,804
Income tax receivable	2,330	0
Inventories	93,556	144,944
Prepaid expenses and other current assets	4,719	6,124
Total current assets	198,501	311,673
Property and equipment, net of accumulated depreciation of $12,717 and $14,159	15,247	18,019
Intangible assets, net of accumulated amortization of $99,176 and $95,632	58,418	63,110
Deferred income tax assets, net	23,148	22,657
Operating lease right of use assets	9,208	9,636
Goodwill	24,920	43,569
Other assets	200	567
Total assets	329,642	469,231
Current liabilities:
Accounts payable	50,854	87,303
Income tax payable	0	5,266
Sales returns liability	30,571	43,853
Accrued wages and wage related expenses	6,785	6,328
Accrued liabilities	12,771	15,164
Current portion of operating lease liabilities	2,583	2,099
Total current liabilities	103,564	160,013
Line of credit	99,540	107,140
Operating lease liabilities	9,674	10,599
Total liabilities	212,778	277,752
Commitments and contingencies (Note 12 and Note 13)
Stockholders’ equity:
Common stock, $0.001 par value; 100,000 shares authorized; 36,884 and 36,610 shares issued	37	37
Treasury stock, 7,055 and 7,055 common shares at cost	(50,455)	(50,455)
Additional paid-in capital	117,552	116,533
Accumulated other comprehensive loss	(1,351)	(1,631)
Retained earnings	51,081	126,995
Total stockholders’ equity	116,864	191,479
Total liabilities and stockholders’ equity	$ 329,642	$ 469,231

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 1,655	$ 1,143
Accumulated depreciation, depletion and amortization, property, plant, and equipment	12,717	14,159
Finite-lived intangible assets, accumulated amortization	$ 99,176	$ 95,632
Common stock, par or stated value per share (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	36,884,000	36,610,000
Treasury stock, common shares (in shares)	7,055,000	7,055,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net sales	$ 90,981,000	$ 78,750,000
Cost of sales	109,923,000	54,928,000
Gross (loss) profit	(18,942,000)	23,822,000
Operating expenses:
Advertising and marketing	4,426,000	4,585,000
Selling, general and administrative	32,593,000	31,586,000
Transaction costs	345,000	247,000
Impairment of goodwill	18,649,000	0
Loss (gain) on disposal of intangible assets and equipment	3,683,000	(2,000)
Amortization of intangible assets	3,544,000	4,466,000
Total operating expenses	63,240,000	40,882,000
Loss from operations	(82,182,000)	(17,060,000)
Other income (expense):
Interest expense	(1,534,000)	(1,010,000)
Other income (expense)	2,000	(516,000)
Total other expense	(1,532,000)	(1,526,000)
Loss before provision for income taxes	(83,714,000)	(18,586,000)
Income tax benefit	8,159,000	4,162,000
Net loss	$ (75,555,000)	$ (14,424,000)
Loss per share attributable to stockholders:
Basic earnings (loss) per share (in usd per share)	$ (2.54)	$ (0.50)
Diluted earnings (loss) per share (in usd per share)	$ (2.54)	$ (0.50)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (75,555)	$ (14,424)
Other comprehensive gain (loss), net of tax:
Foreign currency translation gain (loss)	280	(156)
Total other comprehensive income (loss)	280	(156)
Total comprehensive loss	$ (75,275)	$ (14,580)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (75,555,000)	$ (14,424,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense	1,294,000	1,185,000
Depreciation and amortization	5,376,000	5,989,000
Deferred income tax assets	(498,000)	(1,076,000)
Loss (gain) on disposal of intangible assets and equipment	3,683,000	(2,000)
Amortization of deferred loan costs	195,000	50,000
Impairment of goodwill	18,649,000	0
Right of use asset expenses	668,000	499,000
Changes in operating assets and liabilities:
Accounts receivable, net	59,819,000	65,302,000
Inventories	50,893,000	(14,229,000)
Prepaid expenses and other current assets	1,397,000	2,327,000
Other assets	187,000	(138,000)
Accounts payable	(36,526,000)	(28,717,000)
Income tax payable	(7,601,000)	(2,192,000)
Sales returns liability	(13,216,000)	(23,287,000)
Accrued wages and wage related expenses	462,000	(1,563,000)
Accrued and other long-term liabilities	(2,316,000)	(1,608,000)
Lease liabilities	(832,000)	(465,000)
Other	(320,000)	212,000
Net cash provided by (used in) operating activities	5,759,000	(12,137,000)
Cash flows from investing activities:
Purchase of property and equipment	(1,275,000)	(2,628,000)
Proceeds from disposal of equipment	0	2,000
Purchase of HALO, net of cash acquired	0	(20,368,000)
Net cash used in investing activities	(1,275,000)	(22,994,000)
Cash flows from financing activities:
Proceeds from revolving credit facility	54,124,000	125,932,000
Payments on revolving credit facility	(61,724,000)	(90,932,000)
Purchase of treasury stock	0	(722,000)
Payment of withholding on restricted stock units	(314,000)	0
Proceeds from issuance of stock under employee stock purchase plan	39,000	13,000
Net cash (used in) provided by financing activities	(7,875,000)	34,291,000
Effect of foreign currency exchange rates on cash equivalents	(260,000)	(164,000)
Net decrease in cash and cash equivalents	(3,651,000)	(1,004,000)
Cash and cash equivalents at beginning of the period	17,801,000	15,793,000
Cash and cash equivalents at end of the period	14,150,000	14,789,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	921,000	923,000
Cash refunded during the period for income taxes, net	(58,000)	(811,000)
Cash paid during the period for rent expenses included in the measurement of lease liabilities	993,000	642,000
Supplemental disclosure of non-cash investing and financing activities:
Purchase of property and equipment financed through accounts payable	618,000	696,000
Withholding tax on restricted stock units recorded in accrued wages and wage related expenses	0	782,000
Purchase of HALO through amounts due to seller, contingent payments and common stock	$ 0	$ 16,985,000

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, 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 loss	(14,424)					(14,424)
Other comprehensive income (loss)	(156)			(156)
Treasury Stock, Value, Acquired, Cost Method	(722)				(722)
Restricted stock release (in shares)		200
Employee stock purchase plan release (in shares)		2
Employee stock purchase plan release	13		13
Stock-based compensation expense	1,185		1,185
Payment of withholding taxes on restricted stock units	(782)		(782)
Shares issued as consideration for acquisition (in shares)		1,458
Shares issued as consideration for acquisition	12,969	$ 2	12,967
Ending balance (in shares) at Mar. 31, 2019		36,117
Ending balance at Mar. 31, 2019	156,535	$ 36	109,869	(1,566)	(50,455)	98,651
Beginning balance (in shares) at Dec. 31, 2019		36,610
Beginning balance at Dec. 31, 2019	191,479	$ 37	116,533	(1,631)	(50,455)	126,995
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(75,555)					(75,555)
Other comprehensive income (loss)	280			280
Restricted stock release (in shares)		270
Employee stock purchase plan release (in shares)		4
Employee stock purchase plan release	39		39
Stock-based compensation expense	1,294		1,294
Payment of withholding taxes on restricted stock units	(314)		(314)
Ending balance (in shares) at Mar. 31, 2020		36,884
Ending balance at Mar. 31, 2020	$ 116,864	$ 37	$ 117,552	$ (1,351)	$ (50,455)	$ 51,081

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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 management, wireless charging, audio, mobile keyboards, protective cases, and other mobile accessories sold under the ZAGG ® , InvisibleShield ® , mophie ® , IFROGZ ® , 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 United States (“U.S.”) generally accepted accounting principles (“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, 2019 (the “2019 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 2019 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 326, “Financial Instruments - Credit Losses” The Company adopted ASC Topic 326 ,“Financial Instruments - Credit Losses” (“Topic 326”) with a date of initial application of January 1, 2020. As a result of this adoption, the Company has changed its accounting policy for estimating allowance for credit losses on trade receivable, as detailed below. The Company applied Topic 326 prospectively with recording a cumulative effect adjustment in retained earnings beginning January 1, 2020, which allows for the application of the standard solely to the transition period in 2020 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 incurred loss impairment methodology. The adoption of Topic 326 resulted in a decrease of $359 in retained earnings as a cumulative effect of adoption. The new standard did not have a significant material impact in the Company’s consolidated balance sheets or condensed consolidated statements of operations. In addition, the adoption of Topic 326 had no impact to cash provided by or used in operating, financing, or investing on the condensed consolidated statements of cash flows. Allowance for credit losses accounting policy The Company estimates the allowance for credit losses in relation to accounts receivable based on relevant qualitative and quantitative information about historical events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported accounts receivable. To estimate the allowance for credit losses, the Company starts with its historical loss experience as suggested by ASC 326. Numerous methods are permitted to perform such calculation. The Company evaluated its current method of estimating the allowance for credit losses and determined that the current method of using an aging schedule to develop historical credit loss percentages, which is allowed under ASC 326, is deemed appropriate. The historical credit loss percentages are developed for each aging category based on eight quarters of credit loss history and the Company determined customers in each of these aging categories share similar risk characteristics. The Company then adjusts the historical credit loss percentage by current and forecasted economic conditions. Due to the short-term nature of its accounts receivable and that it carries credit insurance on a significant portion of the accounts receivable balance, the Company believes changes to economic conditions may not have significant effect on the estimate of the allowance for credit losses for accounts receivable; thus, the Company determined to include a baseline credit loss percentage into the historical credit loss percentage for each aging category to reflect the potential impact of the current and economic conditions. Such baseline will be adjusted further if changes in the economic environment change the Company's expectation for future credit losses. As of March 31, 2020, the Company determined the baseline of credit loss percentage should be increased in response to the COVID-19 pandemic and estimated the allowance for credit losses to be $1,655.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, and 2019, was a pproximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Protection (screen protection and cases) 67% 59% Power (power management and power cases) 25% 29% Audio 2% 5% Productivity (keyboards and other) 6% 7% The percentage of net sales related to the Company’s key distribution channels for the three months ended March 31, 2020, and 2019, was approximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Indirect channel 87% 79% Website 8% 14% Franchisees 5% 7% The percentage of net sales related to the Company’s key geographic regions for the three months ended March 31, 2020, an d 2019, wa s approximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 United States 77% 71% Europe 14% 12% Other 9% 17% 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 March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Receivables, which comprises the balance in accounts receivable, net of allowances $ 83,746 $ 142,804 Right of return assets, which are included in prepaid expenses and other current assets 314 2,177 Refund liabilities, which are included in sales return liability 27,960 39,790 Warranty liabilities, which are included in sales return liability 2,611 4,063 Contract liabilities, which are included in accrued liabilities 35 39 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. The following summarizes the activities in the Company’s warranty liabilities for the three months ended March 31, 2020, and 2019: March 31, 2020 March 31, 2019 Balance at beginning of period $ 4,063 $ 4,646 Additions 416 2,253 Warranty claims charged (1,867) (3,041) Foreign currency translation gain (1) — Balance at end of period $ 2,611 $ 3,858

Acquisition of HALO

Acquisition of HALO	3 Months Ended
	Mar. 31, 2020
Business Combinations [Abstract]
ACQUISITION OF HALO	ACQUISITION OF HALOOn January 3, 2019, ZAGG Hampton LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, entered into a membership interest 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 primarily to enter into new distribution channels and to expand its product and intellectual property portfolio.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIESDuring the three months ended March 31, 2020, as a result of current and expected 2020 demand reductions due to the COVID-19 pandemic, the Company reassessed the (1) long-term profitability of all brands and product lines, and (2) the recoverability of inventory on-hand (the “Strategic Review”). As a result of the Strategic Review, the Company determined to discontinue the BRAVEN audio brand, exit the battery case product category, and simplify the following product lines: IFROGZ audio, ZAGG keyboards, and mophie power stations. Ultimately, the demand reduction linked to COVID-19 combined with these efforts to exit less profitable categories, resulted in a write-down to inventory during the three months ended March 31, 2020 of $44,833, which is included in the cost of sales in the condensed consolidated statements of operations. Inventories consisted of the following as of March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Finished goods $ 91,388 $ 142,054 Raw materials 2,168 2,890 Total inventories $ 93,556 $ 144,944 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers of $148 and $148 as of March 31, 2020, and December 31, 2019, respectively.

Property and Equipment

Property and Equipment	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property and Equipment	PROPERTY AND EQUIPMENT In connection with the Strategic Review, the Company determined to dispose of certain equipment and molds that would no longer be used on go-forward brands and product lines, and wrote-off $2,535 for the three months ended March 31, 2020, which was included in loss on disposal of intangible assets and equipment in the condensed consolidated statements of operations. Property and equipment, net consisted of the following as of March 31, 2020, and December 31, 2019: Useful Lives March 31, 2020 December 31, 2019 Computer equipment and software 3 to 5 years $ 1,887 $ 1,237 Equipment and molds 3 to 10 years 14,484 18,851 Furniture and fixtures 7 years 1,857 1,876 Automobiles 5 years 35 75 Building and improvements 40 years 2,429 2,429 Leasehold improvements 1 to 9 years 7,272 7,710 Property and equipment, gross 27,964 32,178 Less accumulated depreciation and amortization (12,717) (14,159) Property and equipment, net $ 15,247 $ 18,019 For the three months ended March 31, 2020, and 2019, depreciation expenses were $1,832 and $1,592, respectively, which were included as a component of selling, general and administrative expense in the consolidated statements of income.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETS There was an $18,649 impairment to goodwill during three months ended March 31, 2020. Goodwill was impaired as the carrying value of the Company's net assets as of March 31, 2020 exceeded the Company's calculation of its diminished market capitalization caused by a decrease of the Company's stock price that occurred during the three months ended March 31, 2020. The market capitalization was determined by multiplying the total number of the Company's outstanding shares as of March 31, 2020 by the Company's average stock price for a determined reasonable period with an estimated additional control premium included as part of the market capitalization. During the three months ended March 31, 2019, goodwill increased in connection with the HALO Acquisition. The following table summarizes the changes in goodwill during the three months ended March 31, 2020, and the twelve months ended December 31, 2019: March 31, 2020 December 31, 2019 Balance at beginning of period $ 43,569 $ 27,638 Addition in connection with the acquisition of HALO — 15,931 Impairment of goodwill (18,649) — Balance at end of period $ 24,920 $ 43,569 There were no additions to intangible assets during the three months ended March 31, 2020. For the three months ended March 31, 2019, as a consequence of the HALO Acquisition, intangible assets increased $27,554 for patents and technology, trade names, customer relationships, net of unfavorable leases obtained. Additionally, during the three months ended March 31, 2020, the Company discontinued its use of certain trade names, patents and technology in connection with the Strategic Review. As such, a loss of $1,148 was recorded to reduce intangible assets and is included in loss on disposal of intangible assets and equipment in the condensed consolidated statements of operations. There was no impairment of intangible assets for the three months ended March 31, 2020, and 2019. Intangible assets, net of accumulated amortization as of March 31, 2020, and December 31, 2019, were as follows: March 31, 2020 Weighted Average Amortization Period December 31, 2019 Weighted Average Amortization Period Trade names $ 23,871 9.7 years $ 25,871 9.7 years Patents and technology 13,961 8.3 years 15,306 8.3 years Customer relationships 20,257 7.7 years 21,514 7.7 years Non-compete agreements 329 4.9 years 419 4.9 years Total intangible assets, net of accumulated amortization $ 58,418 8.3 years $ 63,110 8.3 years

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES For interim periods, the tax provision is generally determined utilizing an estimate of the Company’s annual effective tax rate adjusted for discrete items, if any. Due to the Company's year-to-date loss and forecasted loss for the year, the tax benefit for the loss for the three months ended March 31, 2020 was limited to the expected annual tax benefit for the year ended December 31, 2020. The Company’s effective tax rate was 10% and 22% for the three months ended March 31, 2020, and 2019, respectively. The decrease in the effective tax rate was primarily due to limiting the tax benefit for the quarter to the expected annual tax benefit. The Company’s effective tax rate will also 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	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
LINE OF CREDIT	LINE OF CREDIT 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 (“KeyBank”), 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 (the “First Amendment Agreement”), a second amendment agreement dated as of August 30, 2019 (the “Second Amendment Agreement”), and a third amendment agreement dated as of December 4, 2019 (the “Third Amendment Agreement”). The maturity date of the 2018 Credit and Security Agreement is April 11, 2023. Long-term debt, net as of March 31, 2020, and December 31, 2019, were $99,540 and $107,140, respectively. As of March 31, 2020, $200 was issued for letters of credit and $25,260 was available to be issued for letters of credit.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, and 2019, is summarized as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Granted 620 643 Weighted average fair value per share $ 7.50 $ 9.82 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 three As part of the 620 and 643 restricted stock units granted during the three months ended March 31, 2020, and 2019, the Company granted 417 and 287 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 other specific net sales and profitability goals from 2020 to 2022, and (2) continued employment through the applicable vesting date. 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 months ended March 31, 2020, and 2019, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations: For the Three Months Ended March 31, 2020 March 31, 2019 Stock-based compensation expense related to restricted stock units $ 1,294 $ 1,185 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 $314 and $782 reflected as a reduction of additional paid-in capital during the three months ended March 31, 2020, and 2019, respectively. All of the $314 recorded as a reduction of additional paid-in capital was paid as of March 31, 2020.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
LOSS PER SHARE	Basic loss per common share excludes dilution and is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per common share, if applicable, reflects the potential dilution that could occur if stock options, restricted stock, or other common stock equivalents were exercised or converted into common stock. The dilutive effect of stock options or other common stock equivalents is calculated using the treasury stock method. The following is a reconciliation of the numerator and denominator used to calculate basic loss per common share and diluted loss per common share for the three months ended March 31, 2020, and 2019: For the Three Months Ended March 31, 2020 March 31, 2019 Net loss $ (75,555) $ (14,424) Weighted average shares outstanding: Basic 29,745 28,883 Dilutive effect of restricted stock units — — Diluted 29,745 28,883 Loss per share: Basic $ (2.54) $ (0.50) Diluted $ (2.54) $ (0.50) For the three months ended March 31, 2020, and 2019, 1,167 and 1,187 restricted stock units, respectively, were not considered in calculating diluted loss per share because the Company was in a loss position and, therefore, the effect would have been anti-dilutive.

Treasury Stock

Treasury Stock	3 Months Ended
	Mar. 31, 2020
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 (the “2015 Stock Repurchase Program”). 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 (the “2019 Stock Repurchase Program”). During the three months ended March 31, 2020, the Company did not purchase any shares of the Company's common stock. During the three months ended March 31, 2019, the Company purchased 72 shares of the Company's common stock under the 2015 Stock Repurchase Program for total consideration of $722 with a weighted average price of $10.00 per share, which included commissions and processing fees totaling $2. As of March 31, 2020, and December 31, 2019, a total of $20,000 remained authorized for the repurchase of the Company's outstanding common stock under the 2019 Stock Repurchase Program. The consideration paid has been recorded within stockholders’ equity in the condensed consolidated balance sheet.

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	LEASES 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 3 months to 7.8 years, some of which include options to extend the leases up to 10 years. For the three months ended March 31, 2020, and 2019, rent expense was $1,112 and $853, 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 March 31, 2020, the Company had a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate used to calculate the lease liability of 4.42%. Future maturities of lease liabilities as of March 31, 2020, were as follows: Remaining of 2020 $ 2,454 2021 2,903 2022 2,807 2023 2,367 2024 1,400 Thereafter 1,737 Total lease payments 13,668 Less: imputed interest (1,411) Lease liabilities $ 12,257

Contingencies

Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES Commercial Litigation 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 the Company's subsidiary, 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 (the measure of energy capacity of a battery) 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 (the measure of energy capacity of a battery) 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. In October 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. The Court subsequently bifurcated discovery, permitting mophie to obtain discovery of plaintiffs’ individual claims. Plaintiffs have not obtained any class-wide discovery. mophie denies that it has engaged in the alleged practices, and continues 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 expired in April 2020. ZAGG responded to the complaint on October 21, 2019 to formally assert its defenses and counterclaims. On April 21, 2020, the parties finalized a confidential settlement and are in the process of dismissing the pending proceeding. 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. In August 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. In September 2019, ZAGG filed a separate invalidation request (Case No. 4W9507) to challenge the validity of the patent, and the action was scheduled for an oral hearing on April 23, 2020. On April 8, 2020, the parties finalized a confidential settlement and are in the process of dismissing the pending proceedings. 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 establishes reserves when a particular contingency is probable and estimable. The Company has accrued estimated liabilities of $750 and $750 in the consolidated balance sheets as of March 31, 2020, and December 31, 2019, respectively.

Concentrations

Concentrations	3 Months Ended
	Mar. 31, 2020
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 three months ended March 31, 2020, and 2019. As of March 31, 2020, Verizon Wireless (“Verizon”) exceeded 10% of the Company's accounts receivable. As of December 31, 2019, Verizon and Best Buy Co., Inc. (“Best Buy”) exceeded 10% of the balance of accounts receivable. The amount of accounts receivable for each of these customers are outlined as follows: March 31, 2020 December 31, 2019 Verizon 26% 24% Best Buy 7% 14% The Company began transitioning to a direct sales relationship with Verizon during the second half of 2018, which has continued to progress. Previous to the Company's direct sales relationship with Verizon, Verizon purchased the Company's products through Superior Communications, Inc. Other than the customers noted in the table above, no other customer account balances exceeded 10% of accounts receivable as of March 31, 2020 and December 31, 2019. 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 could have a material adverse effect on the Company’s financial condition and results of operations. Concentration of net sales For the three months ended March 31, 2020, purchases by Verizon and Best Buy accounted for or exceeded 10% of net sales. For the three months ended March 31, 2019, purchases by Best Buy accounted for 10% of net sales. The amount of net sales for each of these customers are outlined as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Verizon 24% 7% Best Buy 10% 10% For the three months ended March 31, 2020, and 2019, no other customers exceeded 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.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENT	SUBSEQUENT EVENT Fourth amendment agreement to the 2018 Credit and Security Agreement On April 13, 2020 (the “Amendment Date”), the Company entered into a fourth amendment agreement (the “Fourth Amendment Agreement”) with KeyBank, Zions Bancorporation, N.A. dba Zions First National Bank, and MUFG Union Bank, N.A. as the lenders, and KeyBank as the administrative agent to amend the 2018 Credit and Security Agreement, as amended by the First Amendment Agreement, the Second Amendment Agreement, and the Third Amendment Agreement, to temporarily increase the revolving credit amount from $125,000 to $144,800 from the Amendment Date through March 31, 2021. Under the Fourth Amendment Agreement, interest rates have been revised to add an additional 50 basis points to the prior rates set forth in the 2018 Credit and Security Agreement, and the applicable interest rate is based on the Company's leverage ratio as defined in the Fourth Amendment Agreement. In connection with the Fourth Amendment Agreement, the Company paid approximately $257 in debt issuance costs. Small Business Administration loan under the CARES Act On April 13, 2020, the Company entered into a loan agreement with KeyBank as the lender under the Paycheck Protection Program of the CARES Act administered by Small Business Administration, and on April 17, 2020 (the “Disbursement Date”), received a loan in the amount of $9,444 (the “PPP Loan”) to help sustain its employee payroll costs, rent, and utilities due to the impact of the recent COVID-19 pandemic. The interest rate for the PPP Loan is 1% per annum, and all required payments are deferred for six months from the PPP Loan Disbursement Date (the interest will continue to accrue over this six-month deferral period). Once the deferral period is over, the Company must pay $525 of the principal every month, as well as accumulated interest, until the PPP Loan's maturity date of two years from the PPP Loan Disbursement Date. The Company may also potentially obtain loan forgiveness for the PPP Loan if the Company meets certain requirements, as defined by the CARES Act. There can be no assurance that the Company will obtain forgiveness of the PPP Loan. Company's operational response to COVID-19 In December 2019, a mutated strain of coronavirus was reported to have surfaced in Wuhan, China. The outbreak, which had previously been concentrated in China, has largely spread through the world, including the United States. The pandemic has resulted in federal, state, and local restrictions, requiring or recommending social distancing, travel bans, quarantines and other restrictions. Additionally, concerns regarding the spread and ultimate human and economic impacts have caused significant downturns in global economic activity. In response to such conditions, in addition to the increase in the borrowing capacity under the 2018 Credit and Security Agreement and the funds received from the PPP Loan discussed above, the Company took the following additional proactive measures after March 31, 2020 to provide enhanced financial flexibility: • Implemented furloughs or lay-offs of approximately 20% of U.S. employees and reduced our Europe and Asia Pacific staff, excluding China, by approximately 20%. Employees on furlough retain their health insurance coverage throughout the furlough; • Temporarily reduced salaries, including a 15% reduction for its Chief Executive Officer, 10% reductions for the rest of the executive team and 5% reductions for senior management; • Temporarily reduced the cash portion of the Board of Directors’ compensation by 15% and replaced such compensation with stock-based compensation; • Significantly reduced marketing spend throughout the remainder of 2020; • Deferred or cancelled spending on all non-essential projects; • Delayed or cancelled certain purchase orders to align with our adjusted demand forecast; and

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
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.
Significant Accounting Policies	Adoption of Accounting Standards Codification (“ASC”) Topic 326, “Financial Instruments - Credit Losses” The Company adopted ASC Topic 326 ,“Financial Instruments - Credit Losses” (“Topic 326”) with a date of initial application of January 1, 2020. As a result of this adoption, the Company has changed its accounting policy for estimating allowance for credit losses on trade receivable, as detailed below. The Company applied Topic 326 prospectively with recording a cumulative effect adjustment in retained earnings beginning January 1, 2020, which allows for the application of the standard solely to the transition period in 2020 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 incurred loss impairment methodology. The adoption of Topic 326 resulted in a decrease of $359 in retained earnings as a cumulative effect of adoption. The new standard did not have a significant material impact in the Company’s consolidated balance sheets or condensed consolidated statements of operations. In addition, the adoption of Topic 326 had no impact to cash provided by or used in operating, financing, or investing on the condensed consolidated statements of cash flows.
Allowance for credit losses accounting policy	Allowance for credit losses accounting policy The Company estimates the allowance for credit losses in relation to accounts receivable based on relevant qualitative and quantitative information about historical events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported accounts receivable. To estimate the allowance for credit losses, the Company starts with its historical loss experience as suggested by ASC 326. Numerous methods are permitted to perform such calculation. The Company evaluated its current method of estimating the allowance for credit losses and determined that the current method of using an aging schedule to develop historical credit loss percentages, which is allowed under ASC 326, is deemed appropriate. The historical credit loss percentages are developed for each aging category based on eight quarters of credit loss history and the Company determined customers in each of these aging categories share similar risk characteristics. The Company then adjusts the historical credit loss percentage by current and forecasted economic conditions. Due to the short-term nature of its accounts receivable and that it carries credit insurance on a significant portion of the accounts receivable balance, the Company believes changes to economic conditions may not have significant effect on the estimate of the allowance for credit losses for accounts receivable; thus, the Company determined to include a baseline credit loss percentage into the historical credit loss percentage for each aging category to reflect the potential impact of the current and economic conditions. Such baseline will be adjusted further if changes in the economic environment change the Company's expectation for future credit losses. As of March 31, 2020, the Company determined the baseline of credit loss percentage should be increased in response to the COVID-19 pandemic and estimated the allowance for credit losses to be $1,655.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, and 2019, was a pproximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Protection (screen protection and cases) 67% 59% Power (power management and power cases) 25% 29% Audio 2% 5% Productivity (keyboards and other) 6% 7% The percentage of net sales related to the Company’s key distribution channels for the three months ended March 31, 2020, and 2019, was approximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Indirect channel 87% 79% Website 8% 14% Franchisees 5% 7% The percentage of net sales related to the Company’s key geographic regions for the three months ended March 31, 2020, an d 2019, wa s approximately as follows: For the Three Months Ended March 31, 2020 March 31, 2019 United States 77% 71% Europe 14% 12% Other 9% 17%
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 March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Receivables, which comprises the balance in accounts receivable, net of allowances $ 83,746 $ 142,804 Right of return assets, which are included in prepaid expenses and other current assets 314 2,177 Refund liabilities, which are included in sales return liability 27,960 39,790 Warranty liabilities, which are included in sales return liability 2,611 4,063 Contract liabilities, which are included in accrued liabilities 35 39
Schedule of Warrant Liabilities Activity	The following summarizes the activities in the Company’s warranty liabilities for the three months ended March 31, 2020, and 2019: March 31, 2020 March 31, 2019 Balance at beginning of period $ 4,063 $ 4,646 Additions 416 2,253 Warranty claims charged (1,867) (3,041) Foreign currency translation gain (1) — Balance at end of period $ 2,611 $ 3,858

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2020
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following as of March 31, 2020, and December 31, 2019: March 31, 2020 December 31, 2019 Finished goods $ 91,388 $ 142,054 Raw materials 2,168 2,890 Total inventories $ 93,556 $ 144,944

Property and Equipment (Tables)

Property and Equipment (Tables)	3 Months Ended
	Mar. 31, 2020
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment, net consisted of the following as of March 31, 2020, and December 31, 2019: Useful Lives March 31, 2020 December 31, 2019 Computer equipment and software 3 to 5 years $ 1,887 $ 1,237 Equipment and molds 3 to 10 years 14,484 18,851 Furniture and fixtures 7 years 1,857 1,876 Automobiles 5 years 35 75 Building and improvements 40 years 2,429 2,429 Leasehold improvements 1 to 9 years 7,272 7,710 Property and equipment, gross 27,964 32,178 Less accumulated depreciation and amortization (12,717) (14,159) Property and equipment, net $ 15,247 $ 18,019

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in goodwill during the three months ended March 31, 2020, and the twelve months ended December 31, 2019: March 31, 2020 December 31, 2019 Balance at beginning of period $ 43,569 $ 27,638 Addition in connection with the acquisition of HALO — 15,931 Impairment of goodwill (18,649) — Balance at end of period $ 24,920 $ 43,569
Schedule of Long-Lived Intangible Assets, Net of Amortization	Intangible assets, net of accumulated amortization as of March 31, 2020, and December 31, 2019, were as follows: March 31, 2020 Weighted Average Amortization Period December 31, 2019 Weighted Average Amortization Period Trade names $ 23,871 9.7 years $ 25,871 9.7 years Patents and technology 13,961 8.3 years 15,306 8.3 years Customer relationships 20,257 7.7 years 21,514 7.7 years Non-compete agreements 329 4.9 years 419 4.9 years Total intangible assets, net of accumulated amortization $ 58,418 8.3 years $ 63,110 8.3 years

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
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 months ended March 31, 2020, and 2019, is summarized as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Granted 620 643 Weighted average fair value per share $ 7.50 $ 9.82
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 months ended March 31, 2020, and 2019, which are included as a component of selling, general, and administrative expense on the condensed consolidated statement of operations: For the Three Months Ended March 31, 2020 March 31, 2019 Stock-based compensation expense related to restricted stock units $ 1,294 $ 1,185

Loss Per Share (Tables)

Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
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 loss per common share and diluted loss per common share for the three months ended March 31, 2020, and 2019: For the Three Months Ended March 31, 2020 March 31, 2019 Net loss $ (75,555) $ (14,424) Weighted average shares outstanding: Basic 29,745 28,883 Dilutive effect of restricted stock units — — Diluted 29,745 28,883 Loss per share: Basic $ (2.54) $ (0.50) Diluted $ (2.54) $ (0.50)

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Future Maturities of Lease Liabilities	Future maturities of lease liabilities as of March 31, 2020, were as follows: Remaining of 2020 $ 2,454 2021 2,903 2022 2,807 2023 2,367 2024 1,400 Thereafter 1,737 Total lease payments 13,668 Less: imputed interest (1,411) Lease liabilities $ 12,257

Concentrations (Tables)

Concentrations (Tables)	3 Months Ended
	Mar. 31, 2020
Risks and Uncertainties [Abstract]
Schedule of concentration risk by accounts receivable	As of March 31, 2020, Verizon Wireless (“Verizon”) exceeded 10% of the Company's accounts receivable. As of December 31, 2019, Verizon and Best Buy Co., Inc. (“Best Buy”) exceeded 10% of the balance of accounts receivable. The amount of accounts receivable for each of these customers are outlined as follows: March 31, 2020 December 31, 2019 Verizon 26% 24% Best Buy 7% 14%
Schedule of concentration risk by net sales	For the three months ended March 31, 2020, purchases by Verizon and Best Buy accounted for or exceeded 10% of net sales. For the three months ended March 31, 2019, purchases by Best Buy accounted for 10% of net sales. The amount of net sales for each of these customers are outlined as follows: For the Three Months Ended March 31, 2020 March 31, 2019 Verizon 24% 7% Best Buy 10% 10%

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jan. 01, 2020	Dec. 31, 2019	Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, allowance for credit loss	$ 1,655		$ 1,143
Cumulative effect of accounting change		$ (359)		$ (39)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of accounting change		$ (359)		$ (39)

Revenue - Percentage of Net Sal

Revenue - Percentage of Net Sales (Details) - Revenue from Contract with Customer	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Distribution Channel Concentration Risk | Indirect channel
Disaggregation of Revenue [Line Items]
Percentage of sales	87.00%	79.00%
Distribution Channel Concentration Risk | Website
Disaggregation of Revenue [Line Items]
Percentage of sales	8.00%	14.00%
Distribution Channel Concentration Risk | Franchisees
Disaggregation of Revenue [Line Items]
Percentage of sales	5.00%	7.00%
Geographic Concentration Risk | United States
Disaggregation of Revenue [Line Items]
Percentage of sales	77.00%	71.00%
Geographic Concentration Risk | Europe
Disaggregation of Revenue [Line Items]
Percentage of sales	14.00%	12.00%
Geographic Concentration Risk | Other
Disaggregation of Revenue [Line Items]
Percentage of sales	9.00%	17.00%
Protection (screen protection and cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	67.00%	59.00%
Power (power management and power cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	25.00%	29.00%
Audio | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	2.00%	5.00%
Productivity (keyboards and other) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	6.00%	7.00%

Revenue - Contract with Custome

Revenue - Contract with Customers (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Receivables, which comprises the balance in accounts receivable, net of allowances	$ 83,746	$ 142,804
Right of return assets, which are included in prepaid expenses and other current assets	314	2,177
Refund liabilities, which are included in sales return liability	27,960	39,790
Warranty liabilities, which are included in sales return liability	2,611	4,063
Contract liabilities, which are included in accrued liabilities	$ 35	$ 39

Revenue - Warranty Liability Ac

Revenue - Warranty Liability Activity (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 4,063	$ 4,646
Additions	416	2,253
Warranty claims charged	(1,867)	(3,041)
Foreign currency translation gain	(1)	0
Ending balance	$ 2,611	$ 3,858

Inventories - Schedule Of Inven

Inventories - Schedule Of Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 91,388	$ 142,054
Raw materials	2,168	2,890
Total inventories	$ 93,556	$ 144,944

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Inventory [Line Items]
Inventory deposits with third-party manufacturers	$ 148	$ 148
COVID-19
Inventory [Line Items]
Inventory write-down	$ 44,833

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 27,964	$ 32,178
Less accumulated depreciation and amortization	(12,717)	(14,159)
Property and equipment, net	15,247	18,019
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,887	1,237
Computer equipment and software | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Computer equipment and software | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	5 years
Equipment and molds
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,484	18,851
Equipment and molds | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	3 years
Equipment and molds | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	10 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Property and equipment, gross	$ 1,857	1,876
Automobiles
Property, Plant and Equipment [Line Items]
Useful Lives	5 years
Property and equipment, gross	$ 35	75
Building and improvements
Property, Plant and Equipment [Line Items]
Useful Lives	40 years
Property and equipment, gross	$ 2,429	2,429
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,272	$ 7,710
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Useful Lives	1 year
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Useful Lives	9 years

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Property, Plant and Equipment [Abstract]
Impairment of long-lived assets to be disposed of	$ 2,535
Depreciation	$ 1,832	$ 1,592

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Goodwill Reconciliation (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 43,569,000	$ 27,638,000	$ 27,638,000
Addition in connection with the acquisition of HALO	0		15,931,000
Impairment of goodwill	(18,649,000)	$ 0
Goodwill, ending balance	$ 24,920,000		$ 43,569,000

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Impairment of goodwill	$ (18,649,000)	$ 0
Increase in intangible assets	0
Gain (loss) on disposition of intangible assets	(1,148,000)
Impairment of finite-lived intangible asset	$ 0	0
HALO
Finite-Lived Intangible Assets [Line Items]
Increase in intangible assets		$ 27,554,000

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Long-lived Intangible Assets, Net of Amortization (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 58,418	$ 63,110
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	$ 23,871	$ 25,871
Weighted Average Amortization Period	9 years 8 months 12 days	9 years 8 months 12 days
Patents and technology
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 13,961	$ 15,306
Weighted Average Amortization Period	8 years 3 months 18 days	8 years 3 months 18 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 20,257	$ 21,514
Weighted Average Amortization Period	7 years 8 months 12 days	7 years 8 months 12 days
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization	$ 329	$ 419
Weighted Average Amortization Period	4 years 10 months 24 days	4 years 10 months 24 days

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	10.00%	22.00%

Line of Credit (Details)

Line of Credit (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Line of Credit Facility [Line Items]
Line of credit	$ 99,540,000	$ 107,140,000
Credit And Security Agreement, 2018
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount	200,000
Credit And Security Agreement, 2018 | Line of Credit
Line of Credit Facility [Line Items]
Letters of credit issued	$ 25,260,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value of restricted stock per share (in usd per share)	$ 7.50	$ 9.82
Adjustments to additional paid-in capital	$ 314	$ 782
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	$ 1,294	$ 1,185
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	620	643
Restricted stock | Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	9 months
Restricted stock | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Restricted stock units | Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	417	287

Loss Per Share - Reconciliation

Loss Per Share - Reconciliation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (75,555)	$ (14,424)
Weighted average shares outstanding:
Basic (in shares)	29,745	28,883
Dilutive effect of restricted stock units and warrants (in shares)	0	0
Diluted (in shares)	29,745	28,883
Loss per share:
Basic (in usd per share)	$ (2.54)	$ (0.50)
Diluted (in usd per share)	$ (2.54)	$ (0.50)

Loss Per Share - Narrative (Det

Loss Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Restricted stock (in shares)	1,167	1,187

Treasury Stock (Details)

Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 11, 2019	Dec. 31, 2015
Equity [Abstract]
Authorized stock repurchase amount			$ 20,000,000	$ 20,000,000
Shares repurchased (in shares)		72
Payments for repurchase of common stock	$ 0	$ 722,000
Weighted average price per share repurchased (in usd per share)		$ 10
Payments for commissions		$ 2,000
Remaining amount authorized under stock repurchase program	$ 20,000,000

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lessee, Lease, Description [Line Items]
Lease term, option to extend	10 years
Rent expense, under Topic 842	$ 1,112	$ 853
Weighted average remaining lease term	4 years 9 months 18 days
Lessee, operating lease, discount rate	4.42%
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	3 months
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	7 years 9 months 18 days

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities After Adoption of 842 (Details) $ in Thousands	Mar. 31, 2020USD ($)
Leases [Abstract]
Remaining of 2020	$ 2,454
2021	2,903
2022	2,807
2023	2,367
2024	1,400
Thereafter	1,737
Total lease payments	13,668
Less: imputed interest	(1,411)
Lease liabilities	$ 12,257

Commitment and Contingencies (D

Commitment and Contingencies (Details) - USD ($)	Jun. 13, 2019	Mar. 31, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Loss contingency accrual		$ 750,000	$ 750,000
Minimum | Pending Litigation | Young and Dolar
Loss Contingencies [Line Items]
Estimated damages sought, minimum	$ 5,000,000

Concentrations - Concentration

Concentrations - Concentration of Credit Risk and Concentration of Net Sales (Details) - Customer Concentration Risk	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Accounts Receivable | Verizon
Concentration Risk [Line Items]
Percentage of sales	26.00%		24.00%
Accounts Receivable | Best Buy
Concentration Risk [Line Items]
Percentage of sales	7.00%		14.00%
Revenue from Contract with Customer | Verizon
Concentration Risk [Line Items]
Percentage of sales	24.00%	7.00%
Revenue from Contract with Customer | Best Buy
Concentration Risk [Line Items]
Percentage of sales	10.00%	10.00%

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent Event - USD ($)	Apr. 13, 2020	May 28, 2020	Apr. 12, 2020
Chief Executive Officer | COVID-19
Subsequent Event [Line Items]
Cash compensation reduction due to pandemic, percentage		15.00%
Executive Officer | COVID-19
Subsequent Event [Line Items]
Cash compensation reduction due to pandemic, percentage		10.00%
Senior Management | COVID-19
Subsequent Event [Line Items]
Cash compensation reduction due to pandemic, percentage		5.00%
Director | COVID-19
Subsequent Event [Line Items]
Cash compensation reduction due to pandemic, percentage		15.00%
United States | COVID-19
Subsequent Event [Line Items]
Employee lay-off due to pandemic, percentage		20.00%
Europe and Asia Pacific, excluding China | COVID-19
Subsequent Event [Line Items]
Employee lay-off due to pandemic, percentage		20.00%
Fourth Amendment Agreement | Line of Credit
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 144,800,000		$ 125,000,000
Debt instrument, interest rate, increase (decrease)	5000.00%
Payments of debt issuance costs	$ 257,000
Payment Protection Program Loan
Subsequent Event [Line Items]
Face amount	$ 9,444,000
Debt instrument, interest rate, stated percentage	1.00%
Debt instrument, periodic payment	$ 525,000

Uncategorized Items - zagg-2020

Label	Element	Value
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 158,452,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	191,120,000
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	126,636,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	113,075,000
Treasury Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(50,455,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(49,733,000)
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	116,533,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	96,486,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	(1,631,000)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ (1,410,000)
Common Stock [Member]
Shares, Issued	us-gaap_SharesIssued	34,457,000
Shares, Issued	us-gaap_SharesIssued	36,610,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 34,000
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1	$ 37,000