ZAGG (ZAGG) 10-Q 4 Aug 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - $ / shares	6 Months Ended
	Jun. 30, 2020	Aug. 04, 2020	Dec. 31, 2019
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 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
Common stock, par or stated value per share (in dollars per share)	$ 0.001		$ 0.001
Trading Symbol	ZAGG
Security Exchange Name	NASDAQ
Entity Common Stock, Shares Outstanding		29,821,837
Entity Central Index Key	0001296205
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2020

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 17,314
Accounts receivable, net of allowances of $2,000 and $1,143	63,090	$ 142,804
Income tax receivable	5,666	0
Inventories	91,328	144,944
Prepaid expenses and other current assets	4,900	6,124
Total current assets	182,298	311,673
Property and equipment, net of accumulated depreciation of $12,865 and $14,159	15,926	18,019
Intangible assets, net of accumulated amortization of $101,810 and $95,632	55,061	63,110
Deferred income tax assets, net	23,704	22,657
Operating lease right of use assets	10,456	9,636
Goodwill	24,920	43,569
Other assets	428	567
Total assets	312,793	469,231
Current liabilities:
Accounts payable	44,945	87,303
Income tax payable	0	5,266
Sales returns liability	25,660	43,853
Accrued wages and wage related expenses	5,254	6,328
Accrued liabilities	7,087	15,164
Current portion of operating lease liabilities	2,774	2,099
Total current liabilities	85,720	160,013
Line of credit	92,040	107,140
Operating lease liabilities	10,631	10,599
Other long-term liabilities	9,444	0
Total liabilities	197,835	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	118,862	116,533
Accumulated other comprehensive loss	(1,234)	(1,631)
Retained earnings	47,748	126,995
Total stockholders’ equity	114,958	191,479
Total liabilities and stockholders’ equity	$ 312,793	$ 469,231

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Accounts receivable, allowance for credit loss	$ 2,000	$ 1,143
Accumulated depreciation, depletion and amortization, property, plant, and equipment	12,865	14,159
Finite-lived intangible assets, accumulated amortization	$ 101,810	$ 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 ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 77,117	$ 106,796	$ 168,098	$ 185,546
Cost of sales	53,805	69,037	163,728	123,965
Gross profit	23,312	37,759	4,370	61,581
Operating expenses:
Advertising and marketing	2,419	4,514	6,845	9,099
Selling, general and administrative	23,743	34,483	56,336	66,069
Transaction costs	51	374	396	621
Impairment of goodwill	0	0	18,649	0
Loss on disposal of intangible assets and equipment	0	8	3,683	6
Amortization of intangible assets	3,357	4,599	6,901	9,065
Total operating expenses	29,570	43,978	92,810	84,860
Loss from operations	(6,258)	(6,219)	(88,440)	(23,279)
Other (expense) income:
Interest expense	(956)	(1,103)	(2,490)	(2,113)
Other income	217	1,192	219	676
Total other (expense) income	(739)	89	(2,271)	(1,437)
Loss before provision for income taxes	(6,997)	(6,130)	(90,711)	(24,716)
Income tax benefit	3,664	794	11,823	4,956
Net loss	$ (3,333)	$ (5,336)	$ (78,888)	$ (19,760)
Loss per share attributable to stockholders:
Basic earnings (loss) per share (in usd per share)	$ (0.11)	$ (0.18)	$ (2.65)	$ (0.68)
Diluted earnings (loss) per share (in usd per share)	$ (0.11)	$ (0.18)	$ (2.65)	$ (0.68)

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,333)	$ (5,336)	$ (78,888)	$ (19,760)
Other comprehensive gain (loss), net of tax:
Foreign currency translation gain (loss)	117	141	397	(15)
Total other comprehensive income (loss)	117	141	397	(15)
Total comprehensive loss	$ (3,216)	$ (5,195)	$ (78,491)	$ (19,775)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (3,333)	$ (5,336)	$ (78,888)	$ (19,760)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Stock-based compensation expense			2,604	2,660
Depreciation and amortization			10,345	12,256
Deferred income tax assets			(1,043)	(2,169)
Loss on disposal of intangible assets and equipment	0	8	3,683	6
Amortization of deferred loan costs			302	101
Impairment of goodwill	0	0	18,649	0	$ 0
Right of use asset expenses			1,321	1,066
Changes in operating assets and liabilities:
Accounts receivable, net			79,162	55,006
Inventories			53,566	(24,313)
Prepaid expenses and other current assets			1,175	396
Other assets			148	179
Accounts payable			(43,131)	(12,654)
Income tax payable			(10,938)	(3,555)
Sales returns liability			(18,170)	(19,627)
Accrued wages and wage related expenses			(1,070)	(360)
Accrued liabilities			(8,033)	(1,904)
Lease liabilities			(1,586)	(1,134)
Other			373	79
Net cash provided by (used in) operating activities			8,469	(13,727)
Cash flows from investing activities:
Purchase of property and equipment			(2,790)	(4,213)
Proceeds from disposal of equipment			0	2
Purchase of HALO, net of cash acquired			0	(20,368)
Net cash used in investing activities			(2,790)	(24,579)
Cash flows from financing activities:
Proceeds from revolving credit facility			63,580	176,566
Payments on revolving credit facility			(78,680)	(139,566)
Proceeds from the paycheck protection program loan			9,444	0
Purchase of treasury stock			0	(722)
Payment of withholding on restricted stock units			(314)	(782)
Payment of debt issuance costs			(257)	0
Proceeds from issuance of stock under employee stock purchase plan			39	13
Net cash (used in) provided by financing activities			(6,188)	35,509
Effect of foreign currency exchange rates on cash equivalents			22	(111)
Net decrease in cash and cash equivalents			(487)	(2,908)
Cash and cash equivalents at beginning of the period			17,801	15,793	15,793
Cash and cash equivalents at end of the period	17,314	12,885	17,314	12,885	$ 17,801
Supplemental disclosure of cash flow information:
Cash paid during the period for interest			2,190	1,998
Cash paid during the period for income taxes, net			157	629
Cash paid during the period for rent expenses included in the measurement of lease liabilities			1,889	1,453
Supplemental disclosure of non-cash investing and financing activities:
Purchase of property and equipment financed through accounts payable			1,391	451
Withholding tax on restricted stock units recorded in accrued wages and wage related expenses	$ 0	$ 66	0	66
Purchase of HALO through amounts due to seller, contingent payments and common stock			0	16,985
Noncash change in lease asset and operating liabilities from reassessment of existing leases and addition of new leases			$ 2,142	$ 1,856

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Equity - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common StockCumulative Effect, Period of Adoption, Adjusted Balance	Additional Paid-in Capital	Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive LossCumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury StockCumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained EarningsCumulative Effect, Period of Adoption, Adjustment	Retained EarningsCumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance (in shares) at Dec. 31, 2018				34,457
Beginning balance at Dec. 31, 2018	$ 158,491	$ (39)	$ 158,452	$ 34	$ 34	$ 96,486	$ 96,486	$ (1,410)	$ (1,410)	$ (49,733)	$ (49,733)	$ 113,114	$ (39)	$ 113,075
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(19,760)											(19,760)
Other comprehensive income (loss)	(15)							(15)
Treasury stock purchase	(722)									(722)
Restricted stock release (in shares)				222
Employee stock purchase plan release (in shares)				3
Employee stock purchase plan release	13					13
Stock-based compensation expense	2,660					2,660
Payment of withholding taxes on restricted stock units	$ (848)					(848)
Shares issued as consideration for acquisition (in shares)	12,970			1,458
Shares issued as consideration for acquisition				$ 2		12,968
Ending balance (in shares) at Jun. 30, 2019				36,140
Ending balance at Jun. 30, 2019	$ 152,750			$ 36		111,279		(1,425)		(50,455)		93,315
Beginning balance (in shares) at Mar. 31, 2019				36,117
Beginning balance at Mar. 31, 2019	156,536			$ 36		109,870		(1,566)		(50,455)		98,651
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(5,336)											(5,336)
Other comprehensive income (loss)	$ 141							141
Restricted stock release (in shares)	0			22
Employee stock purchase plan release	$ 0			$ 1
Stock-based compensation expense	1,475					1,475
Payment of withholding taxes on restricted stock units	(66)					(66)
Ending balance (in shares) at Jun. 30, 2019				36,140
Ending balance at Jun. 30, 2019	152,750			$ 36		111,279		(1,425)		(50,455)		93,315
Beginning balance (in shares) at Dec. 31, 2019				36,610
Beginning balance at Dec. 31, 2019	191,479	$ (359)	$ 191,120	$ 37	$ 37	116,533	$ 116,533	(1,631)	$ (1,631)	(50,455)	$ (50,455)	126,995	$ (359)	$ 126,636
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(78,888)											(78,888)
Other comprehensive income (loss)	397							397
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	2,604					2,604
Payment of withholding taxes on restricted stock units	(314)					(314)
Ending balance (in shares) at Jun. 30, 2020				36,884
Ending balance at Jun. 30, 2020	114,958			$ 37		118,862		(1,234)		(50,455)		47,748
Beginning balance (in shares) at Mar. 31, 2020				36,884
Beginning balance at Mar. 31, 2020	116,864			$ 37		117,552		(1,351)		(50,455)		51,081
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,333)											(3,333)
Other comprehensive income (loss)	117							117
Stock-based compensation expense	1,310					1,310
Ending balance (in shares) at Jun. 30, 2020				36,884
Ending balance at Jun. 30, 2020	$ 114,958			$ 37		$ 118,862		$ (1,234)		$ (50,455)		$ 47,748

Nature of Operations and Basis

Nature of Operations and Basis of Presentation	6 Months Ended
	Jun. 30, 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 (“U.S.”) Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with United States 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 recommends 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. Coronavirus Outbreak and Company Impact In December 2019, a mutated strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China. The outbreak, which had previously been concentrated in China, has largely spread through the U.S. and the world. The recent COVID-19 pandemic has materially impacted the Company's financial condition and results of operations. The Company recommends that the condensed consolidated financial statements and notes thereto in this Quarterly Report on Form 10-Q be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of Part I to this Quarterly Report on Form 10-Q, and the Company's Risk Factors in Item 1A of Part II to this Quarterly Report on Form 10-Q for further information. 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 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. Topic 326 permits different methods to calculate the estimate for the allowance for credit losses. The Company started with its historical loss experience as suggested by Topic 326 and evaluated its previous method of estimating the allowance for credit losses. The Company determined that its previous method of using an aging schedule to develop historical credit loss percentages, which is allowed under Topic 326, is appropriate. The historical credit loss percentages are developed for each aging category based on eight quarters of credit loss history and the Company determined that its customers in each of these aging categories share similar risk characteristics. Additionally, as required by Topic 326, the Company 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 future economic conditions. Such baseline credit loss is adjusted when changes in the economic environment change the Company's expectation for future credit losses. As of June 30, 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 $2,000.

Revenue

Revenue	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, and 2019, was a pproximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Protection (screen protection and cases) 47% 54% 58% 56% Power (power management and power cases) 36% 34% 30% 32% Productivity (keyboards and other) 15% 9% 10% 8% Audio 2% 3% 2% 4% During the three and six months ended June 30, 2020, the Company revised the online channel to include sales to a key direct-to-consumer customer whose sales were included within the indirect channel in prior periods. The Company also made the same change to 2019 net sales by key distribution channels to make the net sales comparable. The percentage of net sales related to the Company’s key distribution channels for the three and six months ended June 30, 2020, and 2019, was approximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Indirect channel 75% 81% 80% 79% Online 22% 14% 16% 15% Franchisees 3% 5% 4% 6% The percentage of net sales related to the Company’s key geographic regions for the three and six months ended June 30, 2020, an d 2019, wa s approximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States 85% 74% 80% 72% Europe 12% 15% 14% 14% Other 3% 11% 6% 14% 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 June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Receivables, which comprises the balance in accounts receivable, net of allowances $ 63,090 $ 142,804 Right of return assets, which are included in prepaid expenses and other current assets 291 2,177 Refund liabilities, which are included in sales return liability 23,203 39,790 Warranty liabilities, which are included in sales return liability 2,457 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 table summarizes the activities in the Company’s warranty liabilities for the six months ended June 30, 2020, and 2019: For the Six Months Ended June 30, 2020 June 30, 2019 Balance at beginning of period $ 4,063 $ 4,646 Accrual for product warranty 1,902 4,744 Warranty claims charged (3,507) (5,772) Foreign currency translation gain (1) — Balance at end of period $ 2,457 $ 3,618

Acquisition of HALO

Acquisition of HALO	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES During the six months ended June 30, 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 six months ended June 30, 2020 of $44,833, which was included in the cost of sales in the condensed consolidated statements of operations. Inventories consisted of the following as of June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Finished goods $ 89,435 $ 142,054 Raw materials 1,893 2,890 Total inventories $ 91,328 $ 144,944 Included in prepaid expenses and other current assets were inventory deposits with third-party manufacturers of $2,176 and $148 as of June 30, 2020, and December 31, 2019, respectively.

Property and Equipment

Property and Equipment	6 Months Ended
	Jun. 30, 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 during the six months ended June 30, 2020. These write-offs were 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 June 30, 2020, and December 31, 2019: Useful Lives June 30, 2020 December 31, 2019 Equipment and molds 3 to 10 years $ 15,399 $ 18,851 Leasehold improvements 1 to 9 years 7,085 7,710 Building and improvements 40 years 2,429 2,429 Computer equipment and software 3 to 5 years 2,037 1,237 Furniture and fixtures 7 years 1,806 1,876 Automobiles 5 years 35 75 Property and equipment, gross 28,791 32,178 Less accumulated depreciation and amortization (12,865) (14,159) Property and equipment, net $ 15,926 $ 18,019 For the six months ended June 30, 2020, and 2019, depreciation expenses were $3,444 and $3,191, respectively, which were included as a component of selling, general and administrative expense in the condensed consolidated statements of operations.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	GOODWILL AND INTANGIBLE ASSETSThere was no change in goodwill during the three months ended June 30, 2020. There was an $18,649 impairment to goodwill during the six months ended June 30, 2020, 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 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. This adjustment was recorded during the first quarter of 2020. There was no change in goodwill during the three months ended June 30, 2019. During the six months ended June 30, 2019, goodwill was increased by $15,922 in connection with the HALO Acquisition. The following table summarizes the changes in goodwill during the six months ended June 30, 2020, and the twelve months ended December 31, 2019: For the Six Months Ended For the Twelve Months Ended June 30, 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 and six months ended June 30, 2020. There were no additions to intangible assets for the three months ended June 30, 2019. For the six months ended June 30, 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. During the six months ended June 30, 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 was included in loss on disposal of intangible assets and equipment in the condensed consolidated statements of operations. This adjustment was recorded during the first quarter of 2020. There was no impairment of intangible assets for the three and six months ended June 30, 2020, and 2019. Intangible assets, net of accumulated amortization as of June 30, 2020, and December 31, 2019, were as follows: June 30, 2020 Weighted Average Amortization Period December 31, 2019 Weighted Average Amortization Period Trade names $ 22,665 9.7 years $ 25,871 9.7 years Customer relationships 18,999 7.7 years 21,514 7.7 years Patents and technology 13,158 8.4 years 15,306 8.3 years Non-compete agreements 239 4.9 years 419 4.9 years Total intangible assets, net of accumulated amortization $ 55,061 8.3 years $ 63,110 8.3 years

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESFor 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 six months ended June 30, 2020, was limited to the expected annual tax benefit for the year ended December 31, 2020. The Company’s effective tax rate was 52% and 13% for the three and six months ended June 30, 2020, respectively. The Company’s effective tax rate was 13% and 20% for the three and six months ended June 30, 2019, respectively. The change in the effective tax rate for the three months ended June 30, 2020, compared to the three months ended June 30, 2019, as well as the six months ended June 30, 2020, compared to the six months ended June 30, 2019, was primarily due to the impact of the methodology used in the tax provision calculation described above as well as an inclusion of an additional benefit related to the projected carryback of the net operating loss (“NOL”). Under the CARES Act, a temporary five-year NOL carryback enables most corporate taxpayers to offset 2015 income taxed at 35% by 2020 income taxed at 21%. This projected benefit is included in the effective tax rate for the period. The Company’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.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt, net as of June 30, 2020 and December 31, 2019, was as follows: June 30, 2020 December 31, 2019 Line of credit $ 92,040 $ 107,140 PPP Loan 9,444 — Total long-term debt outstanding $ 101,484 $ 107,140 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, a second amendment agreement dated as of August 30, 2019, a third amendment agreement dated as of December 4, 2019, and a fourth amendment agreement dated as of April 13, 2020 (the “Fourth Amendment Agreement”). The maturity date of the 2018 Credit and Security Agreement, as amended, is April 11, 2023. The Fourth Amendment Agreement temporarily increased the revolving credit amount from $125,000 to $144,800 from April 13, 2020, through March 31, 2021. Under the Fourth Amendment Agreement, interest rates were revised to add an additional 50 basis points to the prior rates; the applicable interest rates are 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. 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 U.S. Small Business Administration (the “SBA”), 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 COVID-19 pandemic. Under the Paycheck Protection Program, the Company's PPP Loan is fully forgivable if the Company meets certain requirements and receives formal approval, as defined by the CARES Act, subject to an audit by the SBA. The Company intends to seek partial or full forgiveness of the PPP Loan; however, there can be no assurance that the Company will obtain forgiveness of all or part of the PPP Loan amount. The interest rate for the PPP Loan is 1% per annum, and all required payments are deferred for six months from the Disbursement Date (interest will accrue over this six-month deferral period). Unless the PPP Loan is fully or partially forgiven, the Company must pay $525 of the principal every month once the deferral period is over, as well as accumulated interest, until the maturity date which is two years from the Disbursement Date. As of June 30, 2020, there were no letters of credit issued, and $52,760 was available to be issued for letters of credit under the terms of the 2018 Credit and Security Agreement, as amended.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, and 2019, is summarized as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Units Granted 107 — 727 643 Weighted average fair value per share $ 3.47 $ — $ 6.90 $ 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-month (annual board of directors’ grant) to a three-year vesting term, depending on the terms of the individual grant. As part of the 727 and 643 restricted stock units granted during the six months ended June 30, 2020, and 2019, respectively, 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, 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 and six months ended June 30, 2020, and 2019, respectively, 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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 1,310 $ 1,475 $ 2,604 $ 2,660 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 $848 reflected as a reduction of additional paid-in capital during the six months ended June 30, 2020, and 2019, respectively. All of the $314 recorded as a reduction of additional paid-in capital was paid as of June 30, 2020. Of the $848 recorded as a reduction of additional paid-in capital, $66 was included in accrued wages and wage related expenses as of June 30, 2019.

Loss Per Share

Loss Per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
LOSS PER SHARE	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 and six months ended June 30, 2020, and 2019: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net loss $ (3,333) $ (5,336) $ (78,888) $ (19,760) Weighted average shares outstanding: Basic 29,814 29,064 29,779 28,974 Dilutive effect of restricted stock units — — — — Diluted 29,814 29,064 29,779 28,974 Loss per share: Basic $ (0.11) $ (0.18) $ (2.65) $ (0.68) Diluted $ (0.11) $ (0.18) $ (2.65) $ (0.68) For the three and six months ended June 30, 2020, 1,240 restricted stock units were not considered in calculating diluted loss per share because the Company was in a loss position and, therefore, the effect would have been anti-dilutive. For the three and six months ended June 30, 2019, 966 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	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, the Company did not purchase any shares of the Company's common stock. During the three months ended June 30, 2019, the Company did not purchase any shares of the Company's common stock. During the six months ended June 30, 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 per share, which included commissions and processing fees totaling $2. As of June 30, 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	6 Months Ended
	Jun. 30, 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 2 months to 7.5 years, some of which include options to extend the leases up to 10 years. For the three and six months ended June 30, 2020, rent expense was $907 and $2,019, respectively. For the three and six months ended June 30, 2019, rent expense was $799 and $1,652, 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 June 30, 2020, the Company had a weighted-average remaining lease term of 4.7 years and a weighted-average discount rate used to calculate the lease liability of 4.37%. Future maturities of lease liabilities as of June 30, 2020, were as follows: Remaining of 2020 $ 1,761 2021 3,312 2022 3,215 2023 2,789 2024 1,850 Thereafter 1,971 Total lease payments 14,898 Less: imputed interest (1,493) Lease liabilities $ 13,405 No other leases have been entered into under which the Company has significant rights and obligations as the lessee except those noted above.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 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 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 U.S. 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, U.S. 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 California and Florida laws, 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 consumers 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. mophie denies that it has engaged in the alleged practices, and intends to vigorously defend the lawsuit. On July 15, 2020, the parties gave joint notice to the court that they had reached a tentative settlement of this action, subject to the parties executing a written settlement agreement, and on July 16, 2020, the court entered an order dismissing the action without prejudice to reopening the case if settlement is not consummated within 45 days. Enchanted IP v. mophie, Inc., U.S. 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 on June 1, 2020, the court dismissed the action with prejudice. Shenzhen CN-iMX Technology Co., Ltd. v. Apple Electronic Products Trading (Beijing) Co., Ltd. and ZAGG (Shenzhen) Technology Development Co., Ltd. (2020) Yue 03 No. 774. 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 identified mophie’s PowerStation wireless XL charger as an accused product and sought damages and injunctive relief. In September 2019, ZAGG filed a separate invalidation request (Case No. 4W9507) with the Chinese National Intellectual Property Administration to challenge the validity of the patent. On April 8, 2020, the parties finalized a confidential settlement to resolve the matter. On April 20, 2020, ZAGG’s invalidation request was formally withdrawn. On June 5, 2020, the Shenzhen Intermediate Court issued a Mediation Paper confirming dismissal of the infringement action. 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 $900 and $750 in the consolidated balance sheets as of June 30, 2020, and December 31, 2019, respectively.

Concentrations

Concentrations	6 Months Ended
	Jun. 30, 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 six months ended June 30, 2020, and 2019. As of June 30, 2020, Verizon Wireless (“Verizon”) and Amazon.com (“Amazon”) 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: June 30, 2020 December 31, 2019 Verizon 17% 24% Amazon 11% 3% Best Buy 8% 14% Other than the customers noted in the table above, no other customer account balances exceeded 10% of accounts receivable as of June 30, 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 and six months ended June 30, 2020, purchases by Verizon exceeded 10% of net sales. For the three months ended June 30, 2019, purchases by Verizon exceeded 10% of net sales. The amount of net sales for each of these customers are outlined as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Verizon 15% 13% 20% 9% For the three and six months ended June 30, 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 Events

Subsequent Events	6 Months Ended
	Jun. 30, 2020
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTSIn July 2020, the U.S. Trade Representative published a Notice of Product Exclusion Amendments affecting certain products imported from China on dates between September 24, 2018 and August 7, 2020. The Company is currently evaluating duties paid during that date range that may be subject to refund.

Nature of Operations and Basi_2

Nature of Operations and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 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
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. Topic 326 permits different methods to calculate the estimate for the allowance for credit losses. The Company started with its historical loss experience as suggested by Topic 326 and evaluated its previous method of estimating the allowance for credit losses. The Company determined that its previous method of using an aging schedule to develop historical credit loss percentages, which is allowed under Topic 326, is appropriate. The historical credit loss percentages are developed for each aging category based on eight quarters of credit loss history and the Company determined that its customers in each of these aging categories share similar risk characteristics. Additionally, as required by Topic 326, the Company 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 future economic conditions. Such baseline credit loss is adjusted when changes in the economic environment change the Company's expectation for future credit losses. As of June 30, 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 $2,000.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The percentage of net sales related to the Company’s key product lines for the three and six months ended June 30, 2020, and 2019, was a pproximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Protection (screen protection and cases) 47% 54% 58% 56% Power (power management and power cases) 36% 34% 30% 32% Productivity (keyboards and other) 15% 9% 10% 8% Audio 2% 3% 2% 4% During the three and six months ended June 30, 2020, the Company revised the online channel to include sales to a key direct-to-consumer customer whose sales were included within the indirect channel in prior periods. The Company also made the same change to 2019 net sales by key distribution channels to make the net sales comparable. The percentage of net sales related to the Company’s key distribution channels for the three and six months ended June 30, 2020, and 2019, was approximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Indirect channel 75% 81% 80% 79% Online 22% 14% 16% 15% Franchisees 3% 5% 4% 6% The percentage of net sales related to the Company’s key geographic regions for the three and six months ended June 30, 2020, an d 2019, wa s approximately as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 United States 85% 74% 80% 72% Europe 12% 15% 14% 14% Other 3% 11% 6% 14%
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 June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Receivables, which comprises the balance in accounts receivable, net of allowances $ 63,090 $ 142,804 Right of return assets, which are included in prepaid expenses and other current assets 291 2,177 Refund liabilities, which are included in sales return liability 23,203 39,790 Warranty liabilities, which are included in sales return liability 2,457 4,063 Contract liabilities, which are included in accrued liabilities 35 39
Schedule of Warrant Liabilities Activity	The following table summarizes the activities in the Company’s warranty liabilities for the six months ended June 30, 2020, and 2019: For the Six Months Ended June 30, 2020 June 30, 2019 Balance at beginning of period $ 4,063 $ 4,646 Accrual for product warranty 1,902 4,744 Warranty claims charged (3,507) (5,772) Foreign currency translation gain (1) — Balance at end of period $ 2,457 $ 3,618

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2020
Inventory Disclosure [Abstract]
Schedule of inventories	Inventories consisted of the following as of June 30, 2020, and December 31, 2019: June 30, 2020 December 31, 2019 Finished goods $ 89,435 $ 142,054 Raw materials 1,893 2,890 Total inventories $ 91,328 $ 144,944

Property and Equipment (Tables)

Property and Equipment (Tables)	6 Months Ended
	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	Property and equipment, net consisted of the following as of June 30, 2020, and December 31, 2019: Useful Lives June 30, 2020 December 31, 2019 Equipment and molds 3 to 10 years $ 15,399 $ 18,851 Leasehold improvements 1 to 9 years 7,085 7,710 Building and improvements 40 years 2,429 2,429 Computer equipment and software 3 to 5 years 2,037 1,237 Furniture and fixtures 7 years 1,806 1,876 Automobiles 5 years 35 75 Property and equipment, gross 28,791 32,178 Less accumulated depreciation and amortization (12,865) (14,159) Property and equipment, net $ 15,926 $ 18,019

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The following table summarizes the changes in goodwill during the six months ended June 30, 2020, and the twelve months ended December 31, 2019: For the Six Months Ended For the Twelve Months Ended June 30, 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 June 30, 2020, and December 31, 2019, were as follows: June 30, 2020 Weighted Average Amortization Period December 31, 2019 Weighted Average Amortization Period Trade names $ 22,665 9.7 years $ 25,871 9.7 years Customer relationships 18,999 7.7 years 21,514 7.7 years Patents and technology 13,158 8.4 years 15,306 8.3 years Non-compete agreements 239 4.9 years 419 4.9 years Total intangible assets, net of accumulated amortization $ 55,061 8.3 years $ 63,110 8.3 years

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Long-term Debt Instruments	Long-term debt, net as of June 30, 2020 and December 31, 2019, was as follows: June 30, 2020 December 31, 2019 Line of credit $ 92,040 $ 107,140 PPP Loan 9,444 — Total long-term debt outstanding $ 101,484 $ 107,140

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, and 2019, is summarized as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Units Granted 107 — 727 643 Weighted average fair value per share $ 3.47 $ — $ 6.90 $ 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 and six months ended June 30, 2020, and 2019, respectively, 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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Stock-based compensation expense $ 1,310 $ 1,475 $ 2,604 $ 2,660

Loss Per Share (Tables)

Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2020, and 2019: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net loss $ (3,333) $ (5,336) $ (78,888) $ (19,760) Weighted average shares outstanding: Basic 29,814 29,064 29,779 28,974 Dilutive effect of restricted stock units — — — — Diluted 29,814 29,064 29,779 28,974 Loss per share: Basic $ (0.11) $ (0.18) $ (2.65) $ (0.68) Diluted $ (0.11) $ (0.18) $ (2.65) $ (0.68)

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2020
Leases [Abstract]
Schedule of Future Maturities of Lease Liabilities	Future maturities of lease liabilities as of June 30, 2020, were as follows: Remaining of 2020 $ 1,761 2021 3,312 2022 3,215 2023 2,789 2024 1,850 Thereafter 1,971 Total lease payments 14,898 Less: imputed interest (1,493) Lease liabilities $ 13,405

Concentrations (Tables)

Concentrations (Tables)	6 Months Ended
	Jun. 30, 2020
Risks and Uncertainties [Abstract]
Schedule of concentration risk by accounts receivable	As of June 30, 2020, Verizon Wireless (“Verizon”) and Amazon.com (“Amazon”) 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: June 30, 2020 December 31, 2019 Verizon 17% 24% Amazon 11% 3% Best Buy 8% 14%
Schedule of concentration risk by net sales	For the three and six months ended June 30, 2020, purchases by Verizon exceeded 10% of net sales. For the three months ended June 30, 2019, purchases by Verizon exceeded 10% of net sales. The amount of net sales for each of these customers are outlined as follows: For the Three Months Ended For the Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Verizon 15% 13% 20% 9%

Nature of Operations and Basi_3

Nature of Operations and Basis of Presentation - Narrative (Details) - USD ($) $ in Thousands	Jan. 01, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounting Standards Update [Extensible List]	us-gaap:AccountingStandardsUpdate201911Member
Stockholders' Equity Attributable to Parent		$ 114,958	$ 116,864	$ 191,479	$ 152,750	$ 156,536	$ 158,491
Accounts receivable, allowance for credit loss		2,000		1,143
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity Attributable to Parent				(359)			(39)
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity Attributable to Parent		$ 47,748	$ 51,081	126,995	$ 93,315	$ 98,651	113,114
Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stockholders' Equity Attributable to Parent	$ 359			$ (359)			$ (39)

Revenue - Percentage of Net Sal

Revenue - Percentage of Net Sales (Details) - Revenue from Contract with Customer	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Distribution Channel Concentration Risk | Indirect channel
Disaggregation of Revenue [Line Items]
Percentage of sales	75.00%	81.00%	80.00%	79.00%
Distribution Channel Concentration Risk | Online
Disaggregation of Revenue [Line Items]
Percentage of sales	22.00%	14.00%	16.00%	15.00%
Distribution Channel Concentration Risk | Franchisees
Disaggregation of Revenue [Line Items]
Percentage of sales	3.00%	5.00%	4.00%	6.00%
Geographic Concentration Risk | United States
Disaggregation of Revenue [Line Items]
Percentage of sales	85.00%	74.00%	80.00%	72.00%
Geographic Concentration Risk | Europe
Disaggregation of Revenue [Line Items]
Percentage of sales	12.00%	15.00%	14.00%	14.00%
Geographic Concentration Risk | Other
Disaggregation of Revenue [Line Items]
Percentage of sales	3.00%	11.00%	6.00%	14.00%
Protection (screen protection and cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	47.00%	54.00%	58.00%	56.00%
Power (power management and power cases) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	36.00%	34.00%	30.00%	32.00%
Productivity (keyboards and other) | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	15.00%	9.00%	10.00%	8.00%
Audio | Product Concentration Risk
Disaggregation of Revenue [Line Items]
Percentage of sales	2.00%	3.00%	2.00%	4.00%

Revenue - Contract with Custome

Revenue - Contract with Customers (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Receivables, which comprises the balance in accounts receivable, net of allowances	$ 63,090	$ 142,804
Right of return assets, which are included in prepaid expenses and other current assets	291	2,177
Refund liabilities, which are included in sales return liability	23,203	39,790
Warranty liabilities, which are included in sales return liability	2,457	4,063
Contract liabilities, which are included in accrued liabilities	$ 35	$ 39

Revenue - Warranty Liability Ac

Revenue - Warranty Liability Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning balance	$ 4,063	$ 4,646
Accrual for product warranty	1,902	4,744
Warranty claims charged	(3,507)	(5,772)
Foreign currency translation gain	(1)	0
Ending balance	$ 2,457	$ 3,618

Inventories - Schedule Of Inven

Inventories - Schedule Of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 89,435	$ 142,054
Raw materials	1,893	2,890
Total inventories	$ 91,328	$ 144,944

Inventories - Narrative (Detail

Inventories - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Inventory [Line Items]
Inventory deposits with third-party manufacturers	$ 2,176	$ 148
COVID-19
Inventory [Line Items]
Inventory write-down	$ 44,833

Property and Equipment (Details

Property and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 28,791	$ 32,178
Less accumulated depreciation and amortization	(12,865)	(14,159)
Property and equipment, net	15,926	18,019
Equipment and molds
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 15,399	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
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,085	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
Building and improvements
Property, Plant and Equipment [Line Items]
Useful Lives	40 years
Property and equipment, gross	$ 2,429	2,429
Computer equipment and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 2,037	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
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Useful Lives	7 years
Property and equipment, gross	$ 1,806	1,876
Automobiles
Property, Plant and Equipment [Line Items]
Useful Lives	5 years
Property and equipment, gross	$ 35	$ 75

Property and Equipment - Narrat

Property and Equipment - Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Property, Plant and Equipment [Abstract]
Impairment of long-lived assets to be disposed of	$ 2,535
Depreciation	$ 3,444	$ 3,191

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Narrative (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Change in goodwill		$ 0	$ 0	$ 15,922,000	$ 15,931,000
Impairment of goodwill	$ 0	0	(18,649,000)	0	$ 0
Increase in intangible assets	$ 0	$ 0	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_3

Goodwill and Intangible Assets - Goodwill Reconciliation (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 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	0	15,922,000	15,931,000
Impairment of goodwill	$ 0	$ 0	(18,649,000)	$ 0	0
Goodwill, ending balance	$ 24,920,000		$ 24,920,000		$ 43,569,000

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Long-lived Intangible Assets, Net of Amortization (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization		$ 55,061	$ 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		$ 22,665	25,871
Weighted Average Amortization Period	9 years 8 months 12 days	9 years 8 months 12 days
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization		$ 18,999	21,514
Weighted Average Amortization Period	7 years 8 months 12 days	7 years 8 months 12 days
Patents and technology
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization		$ 13,158	15,306
Weighted Average Amortization Period	8 years 3 months 18 days	8 years 4 months 24 days
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Total intangible assets, net of accumulated amortization		$ 239	$ 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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	52.00%	13.00%	13.00%	20.00%

Long-Term Debt - Schedule of Lo

Long-Term Debt - Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Disclosure [Abstract]
Line of credit	$ 92,040	$ 107,140
PPP Loan	9,444	0
Total long-term debt outstanding	$ 101,484	$ 107,140

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($)	Apr. 13, 2020	Jun. 30, 2020	Jun. 30, 2019	Apr. 12, 2020
Line of Credit Facility [Line Items]
Payment of debt issuance costs		$ 257,000	$ 0
Credit And Security Agreement, 2018
Line of Credit Facility [Line Items]
Letters of credit outstanding, amount		0
Credit And Security Agreement, 2018 | Line of Credit
Line of Credit Facility [Line Items]
Letters of credit issued		$ 52,760,000
Fourth Amendment Agreement | Line of Credit
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 144,800,000			$ 125,000,000
Debt instrument, interest rate, increase (decrease)	5000.00%
Payment of debt issuance costs	$ 257,000
Payment Protection Program Loan
Line of Credit Facility [Line Items]
Face amount	$ 9,444,000
Debt instrument, interest rate, stated percentage	1.00%
Debt instrument, periodic payment	$ 525,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Adjustments to additional paid-in capital		$ 66	$ 314	$ 848
Withholding tax on restricted stock units recorded in accrued wages and wage related expenses	$ 0	66	0	66
Selling, general, and administrative expense
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,310	$ 1,475	$ 2,604	$ 2,660
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock granted (in shares)	107	0	727	643
Weighted-average fair value of restricted stock per share (in usd per share)	$ 3.47	$ 0	$ 6.90	$ 9.82
Restricted stock units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			9 months
Restricted stock units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			3 years
Restricted stock units, performance-based
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		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (3,333)	$ (5,336)	$ (78,888)	$ (19,760)
Weighted average shares outstanding:
Basic (in shares)	29,814	29,064	29,779	28,974
Dilutive effect of restricted stock units and warrants (in shares)	0	0	0	0
Diluted (in shares)	29,814	29,064	29,779	28,974
Loss per share:
Basic (in usd per share)	$ (0.11)	$ (0.18)	$ (2.65)	$ (0.68)
Diluted (in usd per share)	$ (0.11)	$ (0.18)	$ (2.65)	$ (0.68)

Loss Per Share - Narrative (Det

Loss Per Share - Narrative (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Restricted stock (in shares)	1,240	966	1,240	966

Treasury Stock (Details)

Treasury Stock (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 11, 2019	Dec. 31, 2015
Equity [Abstract]
Authorized stock repurchase amount (up to)						$ 20,000,000	$ 20,000,000
Shares repurchased (in shares)	0	0	0	72,000
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		$ 20,000,000		$ 20,000,000

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Lessee, Lease, Description [Line Items]
Lease term, option to extend	10 years		10 years
Rent expense, under Topic 842	$ 907	$ 799	$ 2,019	$ 1,652
Weighted average remaining lease term	4 years 8 months 12 days		4 years 8 months 12 days
Lessee, operating lease, discount rate	4.37%		4.37%
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	2 months		2 months
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	7 years 6 months		7 years 6 months

Leases - Maturities of Operatin

Leases - Maturities of Operating Lease Liabilities After Adoption of 842 (Details) $ in Thousands	Jun. 30, 2020USD ($)
Leases [Abstract]
Remaining of 2020	$ 1,761
2021	3,312
2022	3,215
2023	2,789
2024	1,850
Thereafter	1,971
Total lease payments	14,898
Less: imputed interest	(1,493)
Lease liabilities	$ 13,405

Contingencies (Details)

Contingencies (Details) - USD ($)	Jun. 13, 2019	Jun. 30, 2020	Dec. 31, 2019
Loss Contingencies [Line Items]
Loss contingency accrual		$ 900,000	$ 750,000
Young and Dolar | Minimum | Pending Litigation
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		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Accounts Receivable | Verizon
Concentration Risk [Line Items]
Percentage of sales			17.00%		24.00%
Accounts Receivable | Amazon
Concentration Risk [Line Items]
Percentage of sales			11.00%		3.00%
Accounts Receivable | Best Buy
Concentration Risk [Line Items]
Percentage of sales			8.00%		14.00%
Revenue from Contract with Customer | Verizon
Concentration Risk [Line Items]
Percentage of sales	15.00%	13.00%	20.00%	9.00%