immr-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


[x]			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022


[ ]			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 000-38334

Immersion Corporation

(Exact name of registrant as specified in its charter)


Delaware						94-3180138
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2999 N.E. 191st Street, Suite 610, Aventura, FL, 33180

(Address of principal executive offices, zip code)

(408) 467-1900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $0.001 par value	IMMR	NASDAQ Global Market
Series B Junior Participating Preferred Stock Purchase Rights	IMMR	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer

[ ]

Accelerated filer

[ ]

Non-accelerated filer

[X ]

Smaller reporting company

[X ]

Emerging Growth Company

[ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes [ ] No [X]

Number of shares of common stock outstanding at May 6, 2022 was 33,614,053.

IMMERSION CORPORATION

TABLE OF CONTENTS


PART I		Page
FINANCIAL INFORMATION
Item 1.	Financial Statements	2
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2022 and December 31, 202 1	2
	Unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	3
	Unaudited Condensed Consolidated Statement of Stockholders' Equity for the Three Months Ended March 31, 2022 and 202 1	4
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	5
	Unaudited Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 4.	Controls and Procedures	31
PART II
OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	36
Signatures		37

Table of Contents

PART I

FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IMMERSION CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except number of shares and per share amounts)

(Unaudited)


	March 31, 2022		December 31, 2021
ASSETS
Current assets:
Cash	$	62,958	$	51,490
Marketable equity securities	83,532		86,431
Accounts and other receivables	2,079		1,970
Prepaid expenses and other current assets	11,788		13,432
Total current assets	160,357		153,323
Property and equipment, net	405		444
Long-term deposits	4,917		9,658
Marketable debt securities	11,181		7,286
Other assets, net	4,001		4,809
Total assets	$	180,861	$	175,520
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	53	$	2
Accrued compensation	567		555
Deferred revenue	4,736		4,826
Other current liabilities	15,955		11,247
Total current liabilities	21,311		16,630
Long-term deferred revenue	15,494		16,699
Other long-term liabilities	706		896
Total liabilities	37,511		34,225
Commitments and contingencies (Note 5)
Stockholders’ equity:
Common stock and additional paid-in capital	324,476		323,296
Accumulated other comprehensive income	653		412
Accumulated deficit	(95,604)		(100,680)
Treasury stock	(86,175)		(81,733)
Total stockholders’ equity	143,350		141,295
Total liabilities and stockholders’ equity	$	180,861	$	175,520

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

IMMERSION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(In thousands, except share and per share amounts)

(Unaudited)


	Three Months Ended March 31,
	2022		2021
Revenues:
Royalty and license	$	7,230	$	7,068
Development, services, and other	78		91
Total revenues	7,308		7,159
Costs and expenses:
Cost of revenues	4		29
Sales and marketing	486		1,106
Research and development	509		1,307
General and administrative	2,706		2,224
Total costs and expenses	3,705		4,666
Operating income	3,603		2,493
Interest and other income (loss), net	2,034		(316)
Income before provision for income taxes	5,637		2,177
Provision for income taxes	(561)		(141)
Net income	$	5,076	$	2,036
Basic net income per share	$	0.15	$	0.07
Shares used in calculating basic net income per share	33,996		28,579
Diluted net income per share	$	0.15	$	0.07
Shares used in calculating diluted net income per share	34,268		29,180
Other comprehensive income, net of tax
Change in unrealized gains on available-for-sale securities	$	241	$	—
Total other comprehensive income	241		—
Total comprehensive income	$	5,317	$	2,036

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

IMMERSION CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands, except number of shares)

(Unaudited)


	Common Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income		Accumulated Deficit		Treasury Stock			Total Stockholders’ Equity
	Shares	Amount						Shares	Amount
Balances at December 31, 2021	46,534,198	323,296		412		(100,680)		12,143,433	(81,733)		141,295
Net income	—	—		—		5,076		—	—		5,076
Unrealized gain on available-for-sale securities, net of taxes	—	—		241		—		—	—		241
Stock repurchases	—	—		—		—		938,781	(4,442)		(4,442)

Release of restricted stock units and awards	116,811	—		—		—		—	—		—
Issuance of stock for ESPP purchase	7,725	34		—		—		—	—		34
Shares issued in connection with public offering, net of issuance costs	—	5		—		—		—	—		5
Stock-based compensation	—	1,141		—		—		—	—		1,141
Balances at March 31, 2022	46,658,734	$	324,476	$	653	$	(95,604)	13,082,214	$	(86,175)	$	143,350


	Common Stock and Additional Paid-In Capital			Accumulated Other Comprehensive Income		Accumulated Deficit		Treasury Stock			Total Stockholders’ Equity
	Shares	Amount						Shares	Amount
Balances at December 31, 2020	39,161,214	$	258,756	$	122	$	(113,164)	12,143,433	$	(81,733)	$	63,981
Net income	—	—		—		2,036		—	—		2,036
Exercise of stock options, net of shares withheld for employee taxes	306,987	2,724		—		—		—	—		2,724
Release of restricted stock units and awards	227,055	—		—		—		—	—		—
Issuance of stock for ESPP purchase	15,543	89		—		—		—	—		89
Shares issued in connection with public offering, net of issuance costs	3,309,811	35,937		—		—		—	—		35,937
Stock-based compensation		531		—		—		—	—		531
Balances at March 31, 2021	43,020,610	$	298,037	$	122

SEC Form 10-Q filed by Immersion Corporation