Immersion Corporation (the \u201cCompany\u201d, \u201cImmersion\u201d, \u201cwe\u201d or \u201cus\u201d) was incorporated in 1993 in California and reincorporated in Delaware in 1999. We focus on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. We offer licenses for our patented technology to our customers.
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\n| \u2022 | \nPerformance Obligation A: Transfer of rights to our patent portfolio as it exists when the contract is executed; |
| \u2022 | \nPerformance Obligation B: Transfer of rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. |
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\n\nDebt securities primarily consist of investments in corporate bonds and U.S. treasury securities and are classified and accounted for as available-for-sale at the time of purchase. We report marketable debt securities as either\u00a0Investments-current\u00a0or\u00a0Investments-noncurrent\u00a0on our\u00a0Consolidated Balance Sheets\u00a0based on each instrument\u2019s underlying contractual maturity date and management's intended holding period.
\nUnrealized gains on available-for-sale securities are included in Accumulated other Comprehensive income on the Consolidated Balance Sheets, except for credit-related impairment losses for available-for-sale debt securities.\u00a0Available-for-sale securities in an unrealized loss position are written down to its fair value with the corresponding charge recorded in Interest and other income (loss), net,\u00a0on our Consolidated Statement of Income and Comprehensive Income, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or we have the intention to sell the security. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses with changes in the allowance for credit losses recorded in\u00a0Interest and other income (loss), net in the Consolidated Statements of Income and Comprehensive Income. As of December 31, 2023, we have determined it is more likely than not we will hold the securities until maturity or a recovery of the cost basis for\u00a0all our available-for-sale debt securities with unrealized loss positions.
\nWe elected to exclude the applicable accrued interest from both the fair value and amortized cost basis. Applicable accrued interest, net of the allowance for credit losses (if any), of $0.4 million and $0.2 million, is recorded in \u00a0on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively.
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\nRealized gains and losses from the sales of available-for-sale debt securities are determined based on the specific identification method and are reported in\u00a0Interest and other income (loss), net in the Consolidated Statements of Income and Comprehensive Income.
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\n\nAccounts and other receivables are primarily comprised of trade receivables that are recorded at the invoiced amount, net of an allowance for credit losses. Such accounts receivable have been reduced by an allowance for credit losses, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We assess our allowance for credit losses on trade receivables by taking into consideration information about past events, such as our historical trend of write-offs, forecasts of future economic conditions, and customer-specific circumstances, such as bankruptcies and disputes. Expense for credit losses on trade receivables is recorded in operating expenses on our\u00a0Consolidated Statements of Income and Comprehensive Income. The allowance for doubtful accounts as of December 31, 2023 and 2022 was not material.
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\n\u00b7\u00a0\u00a0\u00a0 Our competition and the market in which we operate; our customers and suppliers;
\n\u00b7\u00a0\u00a0\u00a0 Our revenue, trends related thereto and the recognition and components thereof;
\n\u00b7\u00a0 \u00a0 Our\u00a0costs and expenses,
\n\u00b7\u00a0\u00a0\u00a0 Our investment of surplus funds and sales of marketable securities;
\n\u00b7\u00a0 \u00a0 Seasonality and demand;
\n\u00b7\u00a0\u00a0\u00a0 Our investment in research and technology development;
\n\u00b7\u00a0\u00a0\u00a0 Changes to general and administrative expenses;
\n\u00b7\u00a0\u00a0\u00a0\u00a0Our foreign operations and the reinvestment of our earnings related thereto;
\u00b7\u00a0 \u00a0\u00a0Our investment in and protection of our IP;
\n\u00b7\u00a0 \u00a0Expiration of haptic technology patents;
\n\u00b7\u00a0 \u00a0Changes in or obsolescence of licensed technology;
\n\u00b7\u00a0\u00a0 Our employees;
\n\u00b7\u00a0\u00a0 Capital expenditures and the sufficiency of our capital resources;
\n\u00b7\u00a0\u00a0 Unrecognized tax benefits and tax liabilities;
\n\u00b7\u00a0\u00a0 The impact of changes in interest rates and foreign exchange rates, as well as our plans with respect to foreign currency hedging in general;
\n\u00b7\u00a0\u00a0 Changes in laws and regulations, including with respect to taxes; and
\n\u00b7\u00a0\u00a0 Our plans related to and the impact of current and future litigation and arbitration;
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\nRecent Account Pronouncements\u00a0Not Yet Adopted
\nIn December 2023, the Financial Accounting Standard Board (\u201cFASB\u201d)\u00a0issued ASU No. 2023-09:\u00a0Income Taxes (Topic 740): Improvements to Income Tax Disclosures\u00a0that requires entities to disclose additional information about federal, state, and foreign income taxes primarily related to the income tax rate reconciliation and income taxes paid. The new standard also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance will be effective for the fiscal year beginning January 1, 2025. The guidance does not affect recognition or measurement in our consolidated financial statements.\u00a0We are evaluating the impact of this amendment on our consolidated financial statements.
| \u2022 | \nPerformance Obligation A: Transfer of rights to our patent portfolio as it exists when the contract is executed; |
| \u2022 | \nPerformance Obligation B: Transfer of rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. |
Debt securities primarily consist of investments in corporate bonds and U.S. treasury securities and are classified and accounted for as available-for-sale at the time of purchase. We report marketable debt securities as either\u00a0Investments-current\u00a0or\u00a0Investments-noncurrent\u00a0on our\u00a0Consolidated Balance Sheets\u00a0based on each instrument\u2019s underlying contractual maturity date and management's intended holding period.
\nUnrealized gains on available-for-sale securities are included in Accumulated other Comprehensive income on the Consolidated Balance Sheets, except for credit-related impairment losses for available-for-sale debt securities.\u00a0Available-for-sale securities in an unrealized loss position are written down to its fair value with the corresponding charge recorded in Interest and other income (loss), net,\u00a0on our Consolidated Statement of Income and Comprehensive Income, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or we have the intention to sell the security. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses with changes in the allowance for credit losses recorded in\u00a0Interest and other income (loss), net in the Consolidated Statements of Income and Comprehensive Income. As of December 31, 2023, we have determined it is more likely than not we will hold the securities until maturity or a recovery of the cost basis for\u00a0all our available-for-sale debt securities with unrealized loss positions.
\nWe elected to exclude the applicable accrued interest from both the fair value and amortized cost basis. Applicable accrued interest, net of the allowance for credit losses (if any), of $0.4 million and $0.2 million, is recorded in \u00a0on the Consolidated Balance Sheets as of December 31, 2023 and 2022, respectively.
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\nRealized gains and losses from the sales of available-for-sale debt securities are determined based on the specific identification method and are reported in\u00a0Interest and other income (loss), net in the Consolidated Statements of Income and Comprehensive Income.
Accounts and other receivables are primarily comprised of trade receivables that are recorded at the invoiced amount, net of an allowance for credit losses. Such accounts receivable have been reduced by an allowance for credit losses, which is our best estimate of the amount of probable credit losses in our existing accounts receivable. We assess our allowance for credit losses on trade receivables by taking into consideration information about past events, such as our historical trend of write-offs, forecasts of future economic conditions, and customer-specific circumstances, such as bankruptcies and disputes. Expense for credit losses on trade receivables is recorded in operating expenses on our\u00a0Consolidated Statements of Income and Comprehensive Income. The allowance for doubtful accounts as of December 31, 2023 and 2022 was not material.
\u00b7\u00a0\u00a0\u00a0 Our competition and the market in which we operate; our customers and suppliers;
\n\u00b7\u00a0\u00a0\u00a0 Our revenue, trends related thereto and the recognition and components thereof;
\n\u00b7\u00a0 \u00a0 Our\u00a0costs and expenses,
\n\u00b7\u00a0\u00a0\u00a0 Our investment of surplus funds and sales of marketable securities;
\n\u00b7\u00a0 \u00a0 Seasonality and demand;
\n\u00b7\u00a0\u00a0\u00a0 Our investment in research and technology development;
\n\u00b7\u00a0\u00a0\u00a0 Changes to general and administrative expenses;
\n\u00b7\u00a0\u00a0\u00a0\u00a0Our foreign operations and the reinvestment of our earnings related thereto;
\u00b7\u00a0 \u00a0\u00a0Our investment in and protection of our IP;
\n\u00b7\u00a0 \u00a0Expiration of haptic technology patents;
\n\u00b7\u00a0 \u00a0Changes in or obsolescence of licensed technology;
\n\u00b7\u00a0\u00a0 Our employees;
\n\u00b7\u00a0\u00a0 Capital expenditures and the sufficiency of our capital resources;
\n\u00b7\u00a0\u00a0 Unrecognized tax benefits and tax liabilities;
\n\u00b7\u00a0\u00a0 The impact of changes in interest rates and foreign exchange rates, as well as our plans with respect to foreign currency hedging in general;
\n\u00b7\u00a0\u00a0 Changes in laws and regulations, including with respect to taxes; and
\n\u00b7\u00a0\u00a0 Our plans related to and the impact of current and future litigation and arbitration;
Recent Account Pronouncements\u00a0Not Yet Adopted
\nIn December 2023, the Financial Accounting Standard Board (\u201cFASB\u201d)\u00a0issued ASU No. 2023-09:\u00a0Income Taxes (Topic 740): Improvements to Income Tax Disclosures\u00a0that requires entities to disclose additional information about federal, state, and foreign income taxes primarily related to the income tax rate reconciliation and income taxes paid. The new standard also eliminates certain existing disclosure requirements related to uncertain tax positions and unrecognized deferred tax liabilities. The guidance will be effective for the fiscal year beginning January 1, 2025. The guidance does not affect recognition or measurement in our consolidated financial statements.\u00a0We are evaluating the impact of this amendment on our consolidated financial statements.
| Years Ended December 31, | |||||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Fixed fee license revenue | \n$ | \n5,283\u00a0 | \n\n | $ | \n11,953\u00a0 | ||||
| Per-unit royalty revenue | \n\n | \n | \n | \n | 28,498\u00a0 | \n\n | 26,225\u00a0 | ||
| Total royalty and license revenue | \n\n | \n | \n | \n | 33,781\u00a0 | \n\n | 38,178\u00a0 | ||
| Development, services, and other revenue | \n\n | \n | \n | \n | 138\u00a0 | \n\n | 283\u00a0 | ||
| Total revenues | \n\n | \n | \n | \n | $ | \n33,919\u00a0 | \n\n | $ | \n38,461\u00a0 |
| Years Ended December 31, | |||||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Fixed fee license revenue | \n$ | \n5,283\u00a0 | \n\n | $ | \n11,953\u00a0 | ||||
| Per-unit royalty revenue | \n\n | \n | \n | \n | 28,498\u00a0 | \n\n | 26,225\u00a0 | ||
| Total royalty and license revenue | \n\n | \n | \n | \n | 33,781\u00a0 | \n\n | 38,178\u00a0 | ||
| Development, services, and other revenue | \n\n | \n | \n | \n | 138\u00a0 | \n\n | 283\u00a0 | ||
| Total revenues | \n\n | \n | \n | \n | $ | \n33,919\u00a0 | \n\n | $ | \n38,461\u00a0 |
| \n | December 31, 2023 | \n||||||||||||||
| \n | Cost or Amortized Cost | \n\n | Unrealized Gains | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||||
| Marketable equity securities | \n|||||||||||||||
| Equity securities | \n$ | \n59,228 | \n\n | $ | \n7,896 | \n\n | $ | \n(4,146 | \n) | \n$ | \n62,978 | \n||||
| Marketable debt securities | \n|||||||||||||||
| U.S. treasury securities | \n53,662 | \n\n | 1,307 | \n\n | (3 | \n) | \n54,966 | \n||||||||
| Corporate bonds | \n19,422 | \n\n | 472 | \n\n | (197 | \n) | \n19,697 | \n||||||||
| Total marketable debt securities | \n73,084 | \n\n | \n | 1,779 | \n\n | \n | (200 | \n) | \n\n | 74,663 | \n|||||
| $ | \n132,312 | \n\n | $ | \n9,675 | \n$ | \n(4,346 | \n) | \n$ | \n137,641 | \n
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\n| \n | December 31, 2022 | \n||||||||||||||
| \n | Cost or Amortized Cost | \n\n | Unrealized Gains | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||||
| Marketable equity securities | \n|||||||||||||||
| Mutual funds | \n$ | \n26,352 | \n\n | $ | \n\u2014 | \n\n | $ | \n(3,143 | \n) | \n$ | \n23,209 | \n||||
| Equity securities | \n53,273 | \n2,776 | \n(5,836 | \n) | \n50,213 | \n||||||||||
| Total marketable equity securities | \n79,625 | \n2,776 | \n\n | (8,979 | \n) | \n73,422 | \n|||||||||
| Marketable debt securities | \n|||||||||||||||
| U.S. treasury securities | \n25,640 | \n\n | 182 | \n\n | (24 | \n) | \n25,798 | \n||||||||
| Corporate bonds | \n13,496 | \n\n | 48 | \n\n | (106 | \n) | \n13,438 | \n||||||||
| Total marketable debt securities | \n39,136 | \n\n | \n | 230 | \n\n | \n | (130 | \n) | \n\n | 39,236 | \n|||||
| $ | \n118,761 | \n$ | \n3,006 | \n$ | \n(9,109 | \n) | \n$ | \n112,658 | \n
| \n | December 31, 2023 | \n||||||
| \n | Amortized Cost | \n\n | Fair Value | \n||||
| Less than 1 year | \n$ | \n40,129 | \n\n | $ | \n41,313 | \n||
| 1 to 5 years | \n32,955 | \n\n | 33,350 | \n||||
| Total | \n$ | \n73,084 | \n\n | $ | \n74,663 | \n
| December 31, 2022 | \n|||||||
| \n | Amortized Cost | \n\n | Fair Value | \n||||
| Less than 1 year | \n$ | \n22,014 | \n\n | $ | \n22,196 | \n||
| 1 to 5 years | \n12,086 | \n\n | 11,973 | \n||||
| More than 5 years | \n5,036 | \n\n | 5,067 | \n||||
| Total | \n$ | \n39,136 | \n\n | $ | \n39,236 | \n
| \n | December 31, 2023 | \n||||||||||
| \n | Cost | \n\n | Unrealized Gains | \nFair Value | \n|||||||
| Derivative instruments | \n$ | \n8,797 | \n\n | $ | \n(867 | \n) | \n$ | \n7,930 | \n|||
| \n | $ | \n8,797 | \n\n | $ | \n(867 | \n) | \n$ | \n7,930 | \n
| \n | December 31, 2022 | \n||||||||||
| \n | Cost | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||
| Derivative instruments | \n$ | \n2,987 | \n\n | $ | \n662 | \n\n | $ | \n3,649 | \n|||
| \n | $ | \n2,987 | \n\n | $ | \n662 | \n\n | $ | \n3,649 | \n
| \n | \n | \n | Years Ended December 31, | |||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | \n|||
| Net unrealized gains (losses) recognized on marketable equity securities | \n$ | \n9,952 | \n\n | $ | \n(4,533 | \n) | ||||
| Net realized gains (losses) recognized on marketable equity securities | \n\n | \n | \n | \n | 1,901 | \n\n | (4,085 | \n) | ||
| Net realized gains recognized on derivative instruments | \n\n | \n | \n | \n | 3,219 | \n\n | 5,493 | \n|||
| Net unrealized gains (losses) recognized on derivative instruments | \n\n | \n | \n | \n | 1,426 | \n\n | (662 | \n) | ||
| Net realized gains recognized on marketable debt securities | \n\n | \n | \n | \n | 300 | \n\n | 734 | \n|||
| Total net gains (losses) recognized in interest and other income (loss), net | \n\n | \n | \n | \n | $ | \n16,798 | \n\n | $ | \n(3,053 | \n) |
| \n | December 31, 2023 | \n||||||||||||||
| \n | Fair Value Measurements Using | \n||||||||||||||
| \n | Quoted\u00a0Prices \u00a0in Active Markets for Identical Assets (Level 1) | \n\n | Significant Other Observable Inputs (Level 2) | \n\n | Significant Unobservable Inputs (Level 3) | \n\n | Total | \n||||||||
| Assets: | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| U.S. treasury securities | \n$\u00a0 | \n54,966 | \n\n | $\u00a0 | \n\u2014 | \n\n | $\u00a0 | \n\u2014 | \n\n | $\u00a0 | \n54,966 | \n||||
| Equity securities | \n62,977 | \n\n | \u2014 | \n\n | \u2014 | \n\n | 62,977 | \n||||||||
| Corporate bonds | \n\u2014 | \n\n | 19,697 | \n\n | \u2014 | \n\n | 19,697 | \n||||||||
| Total assets at fair value | \n$ | \n117,943 | \n\n | $ | \n19,697 | \n\n | $ | \n\u2014 | \n\n | $ | \n137,640 | \n||||
| \n | \n | \n | \n | \n | \n | \n | \n | ||||||||
| Liabilities | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| \n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n\n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n||||
| Total liabilities at fair value | \n$ | \n\u2014 | \n\n | $ | \n7,930 | \n\n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n
\u00a0
\n| \n | December 31, 2022 | \n||||||||||||||
| \n | Fair Value Measurements Using | \n||||||||||||||
| \n | Quoted\u00a0Prices \u00a0in Active Markets for Identical Assets (Level 1) | \n\n | Significant Other Observable Inputs (Level 2) | \n\n | Significant Unobservable Inputs (Level 3) | \n\n | Total | \n||||||||
| Assets: | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| Certificates of deposit | \n$ | \n\u2014 | \n\n | $ | \n5,300 | \n\n | $ | \n\u2014 | \n\n | $\u00a0 | \n5,300 | \n||||
| U.S. treasury securities | \n25,798 | \n\u2014 | \n\u2014 | \n25,798 | \n|||||||||||
| Mutual funds | \n23,209 | \n\u2014 | \n\u2014 | \n23,209 | \n|||||||||||
| Equity securities | \n50,213 | \n\n | \u2014 | \n\n | \u2014 | \n\n | 50,213 | \n||||||||
| Corporate bonds | \n\u2014 | \n\n | 13,438 | \n\n | \u2014 | \n\n | 13,438 | \n||||||||
| Total assets at fair value | \n$ | \n99,220 | \n\n | $ | \n18,738 | \n\n | $ | \n\u2014 | \n\n | $ | \n117,958 | \n||||
| \n | \n | \n | \n | \n | \n | \n | \n | ||||||||
| Liabilities | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| \n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n\n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n||||
| Total liabilities at fair value | \n$ | \n\u2014 | \n\n | $ | \n3,649 | \n\n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n
| \n | December 31, 2023 | \n||||||||||||||
| \n | Cost or Amortized Cost | \n\n | Unrealized Gains | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||||
| Marketable equity securities | \n|||||||||||||||
| Equity securities | \n$ | \n59,228 | \n\n | $ | \n7,896 | \n\n | $ | \n(4,146 | \n) | \n$ | \n62,978 | \n||||
| Marketable debt securities | \n|||||||||||||||
| U.S. treasury securities | \n53,662 | \n\n | 1,307 | \n\n | (3 | \n) | \n54,966 | \n||||||||
| Corporate bonds | \n19,422 | \n\n | 472 | \n\n | (197 | \n) | \n19,697 | \n||||||||
| Total marketable debt securities | \n73,084 | \n\n | \n | 1,779 | \n\n | \n | (200 | \n) | \n\n | 74,663 | \n|||||
| $ | \n132,312 | \n\n | $ | \n9,675 | \n$ | \n(4,346 | \n) | \n$ | \n137,641 | \n
\u00a0
\n| \n | December 31, 2022 | \n||||||||||||||
| \n | Cost or Amortized Cost | \n\n | Unrealized Gains | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||||
| Marketable equity securities | \n|||||||||||||||
| Mutual funds | \n$ | \n26,352 | \n\n | $ | \n\u2014 | \n\n | $ | \n(3,143 | \n) | \n$ | \n23,209 | \n||||
| Equity securities | \n53,273 | \n2,776 | \n(5,836 | \n) | \n50,213 | \n||||||||||
| Total marketable equity securities | \n79,625 | \n2,776 | \n\n | (8,979 | \n) | \n73,422 | \n|||||||||
| Marketable debt securities | \n|||||||||||||||
| U.S. treasury securities | \n25,640 | \n\n | 182 | \n\n | (24 | \n) | \n25,798 | \n||||||||
| Corporate bonds | \n13,496 | \n\n | 48 | \n\n | (106 | \n) | \n13,438 | \n||||||||
| Total marketable debt securities | \n39,136 | \n\n | \n | 230 | \n\n | \n | (130 | \n) | \n\n | 39,236 | \n|||||
| $ | \n118,761 | \n$ | \n3,006 | \n$ | \n(9,109 | \n) | \n$ | \n112,658 | \n
| \n | December 31, 2023 | \n||||||
| \n | Amortized Cost | \n\n | Fair Value | \n||||
| Less than 1 year | \n$ | \n40,129 | \n\n | $ | \n41,313 | \n||
| 1 to 5 years | \n32,955 | \n\n | 33,350 | \n||||
| Total | \n$ | \n73,084 | \n\n | $ | \n74,663 | \n
| December 31, 2022 | \n|||||||
| \n | Amortized Cost | \n\n | Fair Value | \n||||
| Less than 1 year | \n$ | \n22,014 | \n\n | $ | \n22,196 | \n||
| 1 to 5 years | \n12,086 | \n\n | 11,973 | \n||||
| More than 5 years | \n5,036 | \n\n | 5,067 | \n||||
| Total | \n$ | \n39,136 | \n\n | $ | \n39,236 | \n
| \n | December 31, 2023 | \n||||||||||
| \n | Cost | \n\n | Unrealized Gains | \nFair Value | \n|||||||
| Derivative instruments | \n$ | \n8,797 | \n\n | $ | \n(867 | \n) | \n$ | \n7,930 | \n|||
| \n | $ | \n8,797 | \n\n | $ | \n(867 | \n) | \n$ | \n7,930 | \n
| \n | December 31, 2022 | \n||||||||||
| \n | Cost | \n\n | Unrealized Losses | \n\n | Fair Value | \n||||||
| Derivative instruments | \n$ | \n2,987 | \n\n | $ | \n662 | \n\n | $ | \n3,649 | \n|||
| \n | $ | \n2,987 | \n\n | $ | \n662 | \n\n | $ | \n3,649 | \n
| \n | \n | \n | Years Ended December 31, | |||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | \n|||
| Net unrealized gains (losses) recognized on marketable equity securities | \n$ | \n9,952 | \n\n | $ | \n(4,533 | \n) | ||||
| Net realized gains (losses) recognized on marketable equity securities | \n\n | \n | \n | \n | 1,901 | \n\n | (4,085 | \n) | ||
| Net realized gains recognized on derivative instruments | \n\n | \n | \n | \n | 3,219 | \n\n | 5,493 | \n|||
| Net unrealized gains (losses) recognized on derivative instruments | \n\n | \n | \n | \n | 1,426 | \n\n | (662 | \n) | ||
| Net realized gains recognized on marketable debt securities | \n\n | \n | \n | \n | 300 | \n\n | 734 | \n|||
| Total net gains (losses) recognized in interest and other income (loss), net | \n\n | \n | \n | \n | $ | \n16,798 | \n\n | $ | \n(3,053 | \n) |
| \n | December 31, 2023 | \n||||||||||||||
| \n | Fair Value Measurements Using | \n||||||||||||||
| \n | Quoted\u00a0Prices \u00a0in Active Markets for Identical Assets (Level 1) | \n\n | Significant Other Observable Inputs (Level 2) | \n\n | Significant Unobservable Inputs (Level 3) | \n\n | Total | \n||||||||
| Assets: | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| U.S. treasury securities | \n$\u00a0 | \n54,966 | \n\n | $\u00a0 | \n\u2014 | \n\n | $\u00a0 | \n\u2014 | \n\n | $\u00a0 | \n54,966 | \n||||
| Equity securities | \n62,977 | \n\n | \u2014 | \n\n | \u2014 | \n\n | 62,977 | \n||||||||
| Corporate bonds | \n\u2014 | \n\n | 19,697 | \n\n | \u2014 | \n\n | 19,697 | \n||||||||
| Total assets at fair value | \n$ | \n117,943 | \n\n | $ | \n19,697 | \n\n | $ | \n\u2014 | \n\n | $ | \n137,640 | \n||||
| \n | \n | \n | \n | \n | \n | \n | \n | ||||||||
| Liabilities | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| \n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n\n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n||||
| Total liabilities at fair value | \n$ | \n\u2014 | \n\n | $ | \n7,930 | \n\n | $ | \n\u2014 | \n\n | $ | \n7,930 | \n
\u00a0
\n| \n | December 31, 2022 | \n||||||||||||||
| \n | Fair Value Measurements Using | \n||||||||||||||
| \n | Quoted\u00a0Prices \u00a0in Active Markets for Identical Assets (Level 1) | \n\n | Significant Other Observable Inputs (Level 2) | \n\n | Significant Unobservable Inputs (Level 3) | \n\n | Total | \n||||||||
| Assets: | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| Certificates of deposit | \n$ | \n\u2014 | \n\n | $ | \n5,300 | \n\n | $ | \n\u2014 | \n\n | $\u00a0 | \n5,300 | \n||||
| U.S. treasury securities | \n25,798 | \n\u2014 | \n\u2014 | \n25,798 | \n|||||||||||
| Mutual funds | \n23,209 | \n\u2014 | \n\u2014 | \n23,209 | \n|||||||||||
| Equity securities | \n50,213 | \n\n | \u2014 | \n\n | \u2014 | \n\n | 50,213 | \n||||||||
| Corporate bonds | \n\u2014 | \n\n | 13,438 | \n\n | \u2014 | \n\n | 13,438 | \n||||||||
| Total assets at fair value | \n$ | \n99,220 | \n\n | $ | \n18,738 | \n\n | $ | \n\u2014 | \n\n | $ | \n117,958 | \n||||
| \n | \n | \n | \n | \n | \n | \n | \n | ||||||||
| Liabilities | \n\n | \n | \n | \n | \n | \n | \n | ||||||||
| \n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n\n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n||||
| Total liabilities at fair value | \n$ | \n\u2014 | \n\n | $ | \n3,649 | \n\n | $ | \n\u2014 | \n\n | $ | \n3,649 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Cash | \n$ | \n14,840 | \n\n | \n | $ | \n9,630 | \n|
| \n Money market funds | \n41,231 | \n\n | \n | 13,586 | \n|||
| Certificates of deposit (1) | \n\u2014 | \n\n | \n | 25,604 | \n|||
| Cash and cash equivalents | \n$ | \n56,071 | \n\n | \n | $ | \n48,820 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| \n Certificates of deposit (2) | \n$ | \n\u2014 | \n\n | \n | $ | \n5,300 | \n|
| Equity marketable securities | \n62,978 | \n\n | \n | 73,422 | \n|||
| U.S. treasury securities | \n41,313 | \n\n | \n | 22,196 | \n|||
| Short-term investments | \n$ | \n104,291 | \n\n | \n | $ | \n100,918 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Trade accounts receivables | \n$ | \n1,743 | \n\n | \n | $ | \n1,003 | \n|
| Other receivables | \n498 | \n\n | \n | 232 | \n|||
| Accounts and other receivables | \n$ | \n2,241 | \n\n | \n | $ | \n1,235 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Prepaid expenses | \n$ | \n1,916 | \n\n | \n | $ | \n1,576 | \n|
| Contract assets - current | \n7,740 | \n\n | \n | 7,671 | \n|||
| Other current assets | \n191 | \n\n | \n | 100 | \n|||
| Prepaid expenses and other current assets | \n$ | \n9,847 | \n\n | \n | $ | \n9,347 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| U.S. treasury securities | \n$ | \n13,653 | \n\n | \n | $ | \n3,602 | \n|
| Corporate bonds | \n19,697 | \n\n | \n | 13,438 | \n|||
| Investments-noncurrent | \n$ | \n33,350 | \n\n | \n | $ | \n17,040 | \n
\u00a0
\n| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Contract assets - noncurrent | \n110 | \n\n | \n | 545 | \n|||
| Lease right-of-use assets | \n36 | \n\n | \n | 360 | \n|||
| Other assets | \n\u2014 | \n\n | \n | 11 | \n|||
| Total other assets | \n$ | \n146 | \n\n | \n | $ | \n916 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Derivative instruments | \n$ | \n7,930 | \n\n | \n | $ | \n3,649 | \n|
| Lease liabilities -\\current | \n39 | \n\n | \n | 486 | \n|||
| Income taxes payable | \n1,730 | \n\n | \n | 1,279 | \n|||
| Dividends payable | \n1,489 | \n4,212 | \n|||||
| Other current liabilities | \n712 | \n\n | \n | 1,418 | \n|||
| Total other current liabilities | \n$ | \n11,900 | \n\n | \n | $ | \n11,044 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Cash | \n$ | \n14,840 | \n\n | \n | $ | \n9,630 | \n|
| \n Money market funds | \n41,231 | \n\n | \n | 13,586 | \n|||
| Certificates of deposit (1) | \n\u2014 | \n\n | \n | 25,604 | \n|||
| Cash and cash equivalents | \n$ | \n56,071 | \n\n | \n | $ | \n48,820 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| \n Certificates of deposit (2) | \n$ | \n\u2014 | \n\n | \n | $ | \n5,300 | \n|
| Equity marketable securities | \n62,978 | \n\n | \n | 73,422 | \n|||
| U.S. treasury securities | \n41,313 | \n\n | \n | 22,196 | \n|||
| Short-term investments | \n$ | \n104,291 | \n\n | \n | $ | \n100,918 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Trade accounts receivables | \n$ | \n1,743 | \n\n | \n | $ | \n1,003 | \n|
| Other receivables | \n498 | \n\n | \n | 232 | \n|||
| Accounts and other receivables | \n$ | \n2,241 | \n\n | \n | $ | \n1,235 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Prepaid expenses | \n$ | \n1,916 | \n\n | \n | $ | \n1,576 | \n|
| Contract assets - current | \n7,740 | \n\n | \n | 7,671 | \n|||
| Other current assets | \n191 | \n\n | \n | 100 | \n|||
| Prepaid expenses and other current assets | \n$ | \n9,847 | \n\n | \n | $ | \n9,347 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| U.S. treasury securities | \n$ | \n13,653 | \n\n | \n | $ | \n3,602 | \n|
| Corporate bonds | \n19,697 | \n\n | \n | 13,438 | \n|||
| Investments-noncurrent | \n$ | \n33,350 | \n\n | \n | $ | \n17,040 | \n
\u00a0
\n| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Contract assets - noncurrent | \n110 | \n\n | \n | 545 | \n|||
| Lease right-of-use assets | \n36 | \n\n | \n | 360 | \n|||
| Other assets | \n\u2014 | \n\n | \n | 11 | \n|||
| Total other assets | \n$ | \n146 | \n\n | \n | $ | \n916 | \n
| \n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Derivative instruments | \n$ | \n7,930 | \n\n | \n | $ | \n3,649 | \n|
| Lease liabilities -\\current | \n39 | \n\n | \n | 486 | \n|||
| Income taxes payable | \n1,730 | \n\n | \n | 1,279 | \n|||
| Dividends payable | \n1,489 | \n4,212 | \n|||||
| Other current liabilities | \n712 | \n\n | \n | 1,418 | \n|||
| Total other current liabilities | \n$ | \n11,900 | \n\n | \n | $ | \n11,044 | \n
From time to time, we receive claims from third parties asserting that our technologies, or those of our licensees, infringe on the other parties\u2019 intellectual property (\u201cIP\u201d) rights. Management believes that these claims are without merit. Additionally, periodically, we are involved in routine legal matters and contractual disputes incidental to our normal operations. In management\u2019s opinion, unless we disclosed otherwise, the resolution of such matters will not have a material adverse effect on our consolidated financial condition, results of operations, or liquidity.
In the normal course of business, we provide indemnification of varying scope to customers, most commonly to licensees in connection with licensing arrangements that include our IP, although these provisions can cover additional matters. Historically, costs related to these guarantees have not been significant, and we are unable to estimate the maximum potential impact of these guarantees on our future results of operations.
On October 16, 2017, we received a letter from LG Electronics Inc. (\u201cLGE\u201d) requesting that we reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following an investigation where the tax authority determined that LGE failed to withhold on LGE\u2019s royalty payments to Immersion Software Ireland, a subsidiary of the Company, from 2012 to 2014. Pursuant to an agreement reached with LGE, on April 8, 2020, we provided a provisional deposit to LGE in the amount of KRW 5,916,845,454 (approximately $5.0 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korean courts. In the second quarter of 2020, we recorded this deposit in Long-term deposits on our\u00a0Condensed Consolidated Balance Sheets.\u00a0In the fourth quarter of\u00a02021, we recorded an impairment charge of $0.8\u00a0million related to the long-term deposits paid to LGE.
On November 3, 2017, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes related to the 2012 to 2017 period. The Korea Tax Tribunal hearing took place on March 5, 2019. On March 19, 2019, the Korea Tax Tribunal issued its ruling in which it decided not to accept our arguments with respect to the Korean tax authorities\u2019 assessment of withholding tax and penalties imposed on LGE. On behalf of LGE, we filed an appeal with the Korea Administrative Court on June 10, 2019. We have had numerous hearings before the Korea Administrative Court in the years 2019 through 2022. We had a hearing on April 27, 2023, and the Korea Administrative Court rendered a decision on this matter on June 8, 2023, in which it ruled that the withholding taxes and penalties which were imposed by the Korean tax authorities on LGE should be cancelled with litigation costs to be borne by the Korean tax authorities. In connection with the Korea Administrative Court\u2019s decision, the Korean tax authorities filed an appeal on June 28, 2023 with the Seoul High Court to seek the cancellation of the lower court\u2019s decision. The appellate case is in progress at the Seoul High Court and the first and the second hearings were taken place on November 30, 2023 and February 1, 2024, respectively. However, the next hearing will be set at a later date.
On April 25, 2023, we received notice from LGE requesting us to reimburse LGE with respect to withholding tax imposed on LGE by the Korean tax authorities following a recent tax audit of LGE for the years 2018 through 2022. Pursuant to an agreement reached with LGE, on June 2, 2023, we provided a provisional deposit to LGE in the amount of KRW 3,024,877,044 (approximately $2.3 million) representing the amount of such withholding tax that was imposed on LGE, which provisional deposit would be returned to us to the extent we ultimately prevail in the appeal in the Korean courts. In the second quarter of 2023, we recorded this deposit in Long-term deposits on our Condensed Consolidated Balance Sheets.\u00a0 On June 29, 2023, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes related to the 2018 to 2022 period. On August 7, 2023, the Korean tax authority submitted its answer against the tax appeal. On September 8, 2023, on behalf of LGE, the Company submitted its rebuttal brief in response thereto. On September 25, 2023, Korean tax authority submitted an additional response brief, and on November 23, 2023, the Korea Tax Tribunal rendered a decision against LGE, dismissing the claims of the Company on the grounds that its claims are without merit. In response thereto, on behalf of LGE, we filed an appeal with the Korea Administrative Court on December 29, 2023. The first hearing date has not yet been set.\u00a0As of December 31, 2023, we have accrued $0.3 million of withholding taxes, interest and penalties related to the 2018 to 2022 period for which the Korean tax authorities have assessed LGE. These withholding taxes had been reclassified and reported as an impairment reduction to the Long-term deposit made in the second quarter of 2023 in order to present the deposit at its estimated recoverable value.
In the event that we do not ultimately prevail in our appeal in the Korean courts with respect to this case, the applicable deposits included in Long-term deposits would be recorded as additional income tax expense on our Consolidated Statements of Income and Comprehensive Income, in the period in which we do not ultimately prevail.
\nSamsung Electronics Co. v. Immersion Corporation and Immersion Software Ireland Limited
\nOn April 28, 2017, Immersion and Immersion Software Ireland Limited (collectively referred to as \u201cImmersion\u201d in this section) received a letter from Samsung Electronics Co. (\u201cSamsung\u201d) requesting that Immersion reimburse Samsung with respect to withholding tax and penalties imposed on Samsung by the Korean tax authorities following an investigation where the tax authority determined that Samsung failed to withhold taxes on Samsung\u2019s royalty payments to Immersion Software Ireland from 2012 to 2016. The Company was engaged in legal proceedings related to Samsung from 2017 through 2022. In March 2022, as a result of a decision by the Korea Supreme Court, we were reimbursed by Samsung in an amount equal to KRW6,088,855,388 (approximately $5\u00a0million) representing Korea national-level taxes, penalties and interest that were canceled by the Korea Supreme Court, which amount is net of $1.3\u00a0million of the impairment charge previously recorded in the fourth quarter of 2021.\u00a0
On May 26, 2022, we filed a complaint against Meta Platforms, Inc. (formerly known as Facebook, Inc.) (\u201cMeta\u201d) in the United States District Court for the Western District of Texas.\u00a0 The complaint alleges that Meta\u2019s augmented and virtual reality (\u201cAR/VR\u201d) systems, including the Meta Quest 2, infringe six of our patents that cover various uses of haptic effects in connection with such AR/VR systems. We are seeking to enjoin Meta from further infringement and to recover a reasonable royalty for such infringement.
The complaint against Meta asserts infringement of the following patents:
\n\u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 8,469,806: \u201cSystem and method for providing complex haptic stimulation during input of control gestures, and relating to control of virtual equipment\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 8,896,524: \u201cContext-dependent haptic confirmation system\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 9,727,217: \u201cHaptically enhanced interactivity with interactive content\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 10,248,298: \u201cHaptically enhanced interactivity with interactive content\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 10,269,222: \u201cSystem with wearable device and haptic output device\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 10,664,143: \u201cHaptically enhanced interactivity with interactive content\u201d
Meta responded to the Company\u2019s complaint on August 1, 2022. On September 12, 2022, Meta filed a motion to transfer the lawsuit to the Northern District of California or, in the alternative, to the Austin Division of the Western District of Texas. The Court denied Meta\u2019s motion on May 30, 2023, and held the claim construction hearing on the same day. The Court adopted certain claim constructions during the hearing and issued a formal claim construction order consistent with those constructions on July 7, 2023. On August 2, 2023, Meta filed a mandamus petition asking the Federal Circuit to reverse the district court\u2019s order on Meta\u2019s transfer motion. Fact discovery closed on October 6, 2023. The Federal Circuit denied Meta\u2019s mandamus petition on October 30, 2023.
\nOn November 10, 2023, Immersion filed a separate action in the Western District of Texas against Meta directed to its newly launched Quest 3 product, asserting the following patents:
\n\u00a0 \u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 8,469,806: \u201cSystem and method for providing complex haptic stimulation during input of control gestures, and relating to control of virtual equipment\u201d
\n\u00a0 \u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 9,727,217: \u201cHaptically enhanced interactivity with interactive content\u201d
\n\u00a0 \u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 10,248,298: \u201cHaptically enhanced interactivity with interactive content\u201d
\n\u00a0 \u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 10,269,222: \u201cSystem with wearable device and haptic output device\u201d
\n\u00a0 \u00a0 \u00a0 \u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 U.S. Patent No. 10,664,143: \u201cHaptically enhanced interactivity with interactive content\u201d
\nIn addition, Meta filed inter partes reviews (\u201cIPRs\u201d), IPR2023-00942; IPR2023-00943; and IPR2023-00944 on May 25, 2023. These are directed to U.S. Patent Nos. 8,469,806; 8,896,524; and 10,269,222, respectively. The Company filed its response to IPR2023-00942 and IPR2023-0094 on September 8, 2023, and to IPR2023-00944 on September 12, 2023. Meta filed IPR2023-00945; IPR2023-00946; and IPR2023-00947 on May 26, 2023. These IPRs are directed to United States Patent Nos. 10,664,143; 9,727,217; and 10,248,298, respectively.\u00a0 The Patent Trial and Appeal Board instituted review of IPR2023-00942 on December 6, 2023; IPR2023-00943 on December 6, 2023; IPR2023-00944 on December 7, 2023; IPR2023-00945 on December 6, 2023; IPR2023-00946 on December 8, 2023; and IPR2023-00947 on December 6, 2023.
\nOn January 16, 2024, Immersion and Meta jointly moved to stay all deadlines in district court because they had arrived at a settlement in principle. On January 17, 2024, the Court stayed all deadlines. Under the Court\u2019s order, the parties were to either move to dismiss the proceedings if they finalized the settlement agreement, or alternatively they were to provide the Court with a status update, by January 31, 2024. On February 9, 2024, we finalized a settlement agreement that resolved all district court and PTAB disputes. See Note 12. Subsequent Event in the Notes to Consolidated Financial Statements for further information.
\nImmersion Corporation vs. Xiaomi Group
\nOn or about March 3, 2023, we initiated patent infringement lawsuits against several companies of the Xiaomi-Group (the \u201cXiaomi-Group\u201d)\u00a0in Germany, France and India. We initiated lawsuits against Xiaomi-Group companies and their agents in the D\u00fcsseldorf Regional Court in Germany, the Tribunal judiciaire de Paris (Paris First Instance Civil Court) in France, and the High Court of Delhi, at New Delhi, in India.
\nThe complaints allege that the Xiaomi-Group\u2019s devices, including the Xiaomi 12, infringe our patents that cover various uses of haptic effects in connection with such devices. We are seeking injunctions that would allow us to prohibit Xiaomi-Group from selling the infringing devices in Germany, France and India, as well as costs and damages as compensation for such infringement.\u00a0
\n\u00a0
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0EP 2 463 752 B1 (German part) titled \u201cHaptisches Feedback-System mit gespeicherten Effekten\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0EP 2 463 752 B1 (French part) titled \u201cSyst\u00e8me de rendu haptique avec stockage d\u2019effets\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0IN 304 396 (India) titled \u201cHaptic Feedback System With Stored Effects\u201d
\nOn June 19, 2023, Xiaomi filed an initial response to the Company\u2019s lawsuit in India. On July 7, 2023, the Indian litigation was listed before the Learned Joint Registrar (\u201cJR\u201d), Mr. Siddharth Mathur. The application seeking interim injunction will be heard on March 21, 2024.
\nOn July 11, 2023, in the German proceeding Xiaomi filed its nullity action in the German Federal Patent Court, which was served on Immersion on July 27, 2023. Immersion replied on October 27, 2023, and is awaiting Xiaomi\u2019s response which is anticipated to be filed in late January or early February 2024, with a decision expected in March or April of 2024. In the German infringement proceeding, Xiaomi\u2019s statement of defense was due on October 25, 2023. Immersion\u2019s reply was due on February 26, 2024. Xiaomi\u2019s rejoinder is scheduled for July 25, 2024. The oral hearing is scheduled for August 29, 2024.
\nXiaomi had until December 21, 2023 to reply to Immersion\u2019s writ of summons in the French proceeding. Xiaomi requested an extension, and replied on January 4, 2024. Immersion\u2019s tentative deadline to respond is March 14, 2024. The next case management hearing is scheduled for March 21, 2024.
\nImmersion Corporation vs. Valve Corporation
\nOn May 15, 2023, we filed a complaint against Valve Corporation (\u201cValve\u201d) in the United States District Court for the Western District of Washington.\u00a0 The complaint alleges that Valve\u2019s AR/VR systems, including the Valve Index, and handheld Steam Deck, infringe seven of our patents that cover various uses of haptic effects in connection with such AR/VR systems and other video game systems.\u00a0 We are seeking to enjoin Valve from further infringement and to recover a reasonable royalty for such infringement.
\nThe complaint against Valve asserts infringement of the following patents:
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 7,336,260: \u201cMethod and Apparatus for Providing Tactile Sensations\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 8,749,507: \u201cSystems and Methods for Adaptive Interpretation of Input from a Touch-Sensitive Input Device\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 9,430,042: \u201cVirtual Detents Through Vibrotactile Feedback\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 9,116,546: \u201cSystem for Haptically Representing Sensor Input\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 10,627,907: \u201cPosition Control of a User Input Element Associated With a Haptic Output Device\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 10,665,067: \u201cSystems and Methods for Integrating Haptics Overlay in Augmented Reality\u201d
\n\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0U.S. Patent No. 11,175,738: \u201cSystems and Methods for Proximity-Based Haptic Feedback\u201d
\nValve responded to the Complaint on July 24, 2023 with a motion to dismiss. Valve re-noted its motion, which changed the Company\u2019s response deadline from August 14, 2023, to August 21, 2023. The Company timely filed its response and Valve filed its reply on August 25, 2023. The motion remains pending. The Court entered a case schedule on November 21, 2023. The case schedule does not include a trial date but set the pretrial conference for May 30, 2025.
| Common stock shares available for grant | \n4341 | \n|
| Stock options outstanding | \n\u2014 | \n|
| RSUs outstanding | \n1,128 | \n|
| RSAs outstanding | \n75 | \n|
| PSUs outstanding | \n400 | \n
| \n | Number of Shares Underlying Stock Options (in thousands) | \n\n | Weighted Average Exercise Price Per Share | \n\n | Weighted Average Remaining Contractual Life (Years) | \n\n | Aggregate Intrinsic Value (in thousands) | |||||
| Outstanding at December 31, 2022 | \n140 | \n\n | \n | $ | \n7.57 | \n\n | \n | 4.03 | \n\n | $ | \n\u2014 | \n|
| Granted | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | \n | ||||
| Exercised | \n(21 | \n) | \n\n | 7.54 | \n\n | \n | \n | \n | ||||
| Canceled or expired | \n(119 | \n) | \n\n | 7.57 | \n\n | \n | \n | \n | ||||
| Outstanding as of December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n|
| Vested and expected to vest at December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n|
| Exercisable at December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n
| \n | Number of Restricted Stock Units \u00a0(in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | \n Weighted Average Remaining Contractual Life (Years) | \n\n | \n\n | Aggregate Intrinsic Value (in thousands) | |||||
| Outstanding at December 31, 2022 | \n887 | \n\n | \n | $ | \n5.85 | \n\n | \n | 1.31 | \n\n | $ | \n6,226 | \n||
| Granted | \n527 | \n\n | \n | 7.16 | \n\n | \n | \n | \n | |||||
| Released | \n(234 | \n) | \n\n | 5.10 | \n\n | \n | \u00a0 | \n\n | \u00a0 | ||||
| Forfeited | \n(52 | \n) | \n\n | 6.91 | \n\n | \n | \n | \n | |||||
| Outstanding at December 31, 2023 | \n1,128 | \n\n | \n | $ | \n6.57 | \n\n | \n | 1.05 | \n\n | $ | \n7,964 | \n
| \n | \n Number of Restricted Stock Awards (in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | Weighted Average Remaining Recognition Period (Years) | \n||||
| Outstanding at December 31, 2022 | \n119 | \n\n | \n | $ | \n5.47 | \n\n | \n | 0.39 | \n|
| Granted | \n75 | \n\n | \n | 8.31 | \n\n | \n | \n | ||
| Released | \n(119 | \n) | \n\n | 5.47 | \n\n | \n | \u00a0 | \n||
| Forfeited | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | ||
| Outstanding at December 31, 2023 | \n75 | \n\n | \n | $ | \n8.31 | \n\n | \n | 0.24 | \n
| \n | Number of Market Condition-Based Restricted Stock Units (in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | Weighted Average Remaining Recognition Period (Years) | \n||||
| Outstanding at December 31, 2022 | \n615 | \n\n | \n | $ | \n3.69 | \n\n | \n | 1.12 | \n|
| Granted | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | ||
| Released | \n(206 | \n) | \n\n | 3.73 | \n\n | \n | \n | ||
| Forfeited | \n(9 | \n) | \n\n | 6.20 | \n\n | \n | \n | ||
| Outstanding at December 31, 2023 | \n400 | \n\n | \n | $ | \n3.63 | \n\n | \n | 0.00 |
| \n | Year Ended December 31, 2022 | \n|
| Expected life (in years) | \n1.2 | \n|
| Volatility | \n58 | \n% |
| Interest rate | \n1.7 | \n% |
| Dividend yield | \n\u2014 | \n
The stock-based compensation related to all of our stock-based awards and ESPP for the\u00a0year ended December 31, 2023 and 2022 is as follows (in thousands):
\n\u00a0
\n| Years Ended December 31, | |||||||
| 2023 | \n\n | 2022 | |||||
| Stock options | \n$ | \n(30 | \n) | \n$ | \n120 | \n||
| RSUs, RSAs and PSUs | \n3,425 | \n3,295 | \n|||||
| ESPP | \n\u2014 | \n2 | \n|||||
| Total | \n$ | \n3,395 | \n$ | \n3,417 | \n|||
| Sales and marketing | \n$ | \n412 | \n$ | \n61 | \n|||
| Research and development | \n(69 | \n) | \n117 | \n||||
| General and administrative | \n3,052 | \n3,239 | \n|||||
| Total | \n$ | \n3,395 | \n$ | \n3,417 | \n
As of December 31, 2023, there was $4.4 million of unrecognized compensation cost adjusted for estimated forfeitures related to non-vested stock options, RSUs, RSAs and PSUs granted to our employees and directors. This unrecognized compensation cost will be recognized over an estimated weighted-average period of approximately 2.0\u00a0years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures.
| Common stock shares available for grant | \n4341 | \n|
| Stock options outstanding | \n\u2014 | \n|
| RSUs outstanding | \n1,128 | \n|
| RSAs outstanding | \n75 | \n|
| PSUs outstanding | \n400 | \n
| \n | Number of Shares Underlying Stock Options (in thousands) | \n\n | Weighted Average Exercise Price Per Share | \n\n | Weighted Average Remaining Contractual Life (Years) | \n\n | Aggregate Intrinsic Value (in thousands) | |||||
| Outstanding at December 31, 2022 | \n140 | \n\n | \n | $ | \n7.57 | \n\n | \n | 4.03 | \n\n | $ | \n\u2014 | \n|
| Granted | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | \n | ||||
| Exercised | \n(21 | \n) | \n\n | 7.54 | \n\n | \n | \n | \n | ||||
| Canceled or expired | \n(119 | \n) | \n\n | 7.57 | \n\n | \n | \n | \n | ||||
| Outstanding as of December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n|
| Vested and expected to vest at December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n|
| Exercisable at December 31, 2023 | \n\u2014 | \n\n | \n | $ | \n\u2014 | \n\n | \n | \u2014 | \n\n | $ | \n\u2014 | \n
| \n | Number of Restricted Stock Units \u00a0(in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | \n Weighted Average Remaining Contractual Life (Years) | \n\n | \n\n | Aggregate Intrinsic Value (in thousands) | |||||
| Outstanding at December 31, 2022 | \n887 | \n\n | \n | $ | \n5.85 | \n\n | \n | 1.31 | \n\n | $ | \n6,226 | \n||
| Granted | \n527 | \n\n | \n | 7.16 | \n\n | \n | \n | \n | |||||
| Released | \n(234 | \n) | \n\n | 5.10 | \n\n | \n | \u00a0 | \n\n | \u00a0 | ||||
| Forfeited | \n(52 | \n) | \n\n | 6.91 | \n\n | \n | \n | \n | |||||
| Outstanding at December 31, 2023 | \n1,128 | \n\n | \n | $ | \n6.57 | \n\n | \n | 1.05 | \n\n | $ | \n7,964 | \n
| \n | \n Number of Restricted Stock Awards (in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | Weighted Average Remaining Recognition Period (Years) | \n||||
| Outstanding at December 31, 2022 | \n119 | \n\n | \n | $ | \n5.47 | \n\n | \n | 0.39 | \n|
| Granted | \n75 | \n\n | \n | 8.31 | \n\n | \n | \n | ||
| Released | \n(119 | \n) | \n\n | 5.47 | \n\n | \n | \u00a0 | \n||
| Forfeited | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | ||
| Outstanding at December 31, 2023 | \n75 | \n\n | \n | $ | \n8.31 | \n\n | \n | 0.24 | \n
| \n | Number of Market Condition-Based Restricted Stock Units (in thousands) | \n\n | Weighted Average Grant Date Fair Value Per Share | \n\n | Weighted Average Remaining Recognition Period (Years) | \n||||
| Outstanding at December 31, 2022 | \n615 | \n\n | \n | $ | \n3.69 | \n\n | \n | 1.12 | \n|
| Granted | \n\u2014 | \n\n | \n | \u2014 | \n\n | \n | \n | ||
| Released | \n(206 | \n) | \n\n | 3.73 | \n\n | \n | \n | ||
| Forfeited | \n(9 | \n) | \n\n | 6.20 | \n\n | \n | \n | ||
| Outstanding at December 31, 2023 | \n400 | \n\n | \n | $ | \n3.63 | \n\n | \n | 0.00 |
| \n | Year Ended December 31, 2022 | \n|
| Expected life (in years) | \n1.2 | \n|
| Volatility | \n58 | \n% |
| Interest rate | \n1.7 | \n% |
| Dividend yield | \n\u2014 | \n
The stock-based compensation related to all of our stock-based awards and ESPP for the\u00a0year ended December 31, 2023 and 2022 is as follows (in thousands):
\n\u00a0
\n| Years Ended December 31, | |||||||
| 2023 | \n\n | 2022 | |||||
| Stock options | \n$ | \n(30 | \n) | \n$ | \n120 | \n||
| RSUs, RSAs and PSUs | \n3,425 | \n3,295 | \n|||||
| ESPP | \n\u2014 | \n2 | \n|||||
| Total | \n$ | \n3,395 | \n$ | \n3,417 | \n|||
| Sales and marketing | \n$ | \n412 | \n$ | \n61 | \n|||
| Research and development | \n(69 | \n) | \n117 | \n||||
| General and administrative | \n3,052 | \n3,239 | \n|||||
| Total | \n$ | \n3,395 | \n$ | \n3,417 | \n
In the year ended December 31, 2022 we repurchased 1,637,566 shares of our common stock for $8.9 million at an average purchase price of $5.46 per share. The February 2022 Stock Repurchase Program was terminated on December 29, 2022.
On December 29, 2022, the Board approved a stock repurchase program of up to $50.0 million of our common stock for a period of up to twelve months\u00a0(the \u201cDecember 2022 Stock Repurchase Program\u201d), which terminated and superseded the February 2022 Stock Repurchase Plan that had been approved by the Board on February 23, 2022. Any stock repurchases may be made through open market and privately negotiated transactions, at such times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Exchange Act. Additionally, the Board authorized the use of any derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions or other similar transactions or any combination of the foregoing transactions. The December 2022 Stock Repurchase Program was implemented as a method to return value to our stockholders. The timing, pricing and sizes of any repurchases will depend on a number of factors, including the market price of our common stock and general market and economic conditions. The December 2022 Stock Repurchase Program does not obligate us to repurchase any dollar amount or number of shares, and the program may be suspended or discontinued at any time.\u00a0On August 8, 2023, the Board approved an amendment to extend the expiration date of the December 2022 Stock Repurchase Program that was set to expire on December 29, 2023 to December 29, 2024.
On May 10, 2023, the Board declared a third quarterly dividend in the amount of $0.03 per share which was paid on July 28, 2023, to shareholders of record on July 13, 2023.
\nOn August 11, 2023, the Board declared a quarterly dividend in the amount of $0.03 per share, which was paid on October 27, 2023 to shareholders of record on October 16, 2023.
\nOn November 13, 2023, our Board declared a quarterly dividend in the amount of\u00a0$0.045 per share, which was paid on January 25, 2024\u00a0to shareholders of record on January 14, 2024.
\nOn\u00a0March 7, 2024, our Board declared a quarterly dividend in the amount of $0.045 per share, will be payable on April 19, 2024 to shareholders of record on April 12, 2024.\u00a0
\nFuture dividends will be subject to further review and approval by the Board in accordance with applicable law. The Board reserves the right to adjust or withdraw the quarterly dividend in future periods as it reviews our capital allocation strategy from time-to-time.
\nIn the year ended December 31,2023, the total dividends paid was $7.4 million.
\n| \u00a0 | \n\n | \n | \n Years Ended\u00a0December 31, | ||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Income before provision for (benefit from) income taxes | \n42,915 | \n\n | \n | 26,965 | \n|||||
| Provision for (benefit from) income taxes | \n\n | \n | \n | \n | 8,939 | \n\n | \n | (3,699 | \n) |
| Effective tax rate | \n\n | \n | \n | \n | 20.8 | \n% | \n\n | 13.7 | \n% |
| \n | Years Ended December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Domestic | \n$ | \n30,458 | \n\n | \n | $ | \n14,552 | \n|
| Foreign | \n12,457 | \n\n | \n | 12,413 | \n|||
| Total | \n$ | \n42,915 | \n\n | \n | $ | \n26,965 | \n
\u00a0
\n| \n | Years Ended December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Current: | \n\n | \n | |||||
| U.S. federal | \n$ | \n3,554 | \n\n | \n | $ | \n458 | \n|
| States and local | \n236 | \n\n | \n | 74 | \n|||
| Foreign | \n1,621 | \n\n | \n | 871 | \n|||
| Total current | \n5,411 | \n\n | \n | 1,403 | \n|||
| Deferred: | \n\n | \n | |||||
| U.S. federal | \n2,921 | \n\n | \n | (5,694 | \n) | ||
| States and local | \n\u2014 | \n\n | \n | \u2014 | \n|||
| Foreign | \n607 | \n\n | \n | 592 | \n|||
| Total deferred | \n3,528 | \n\n | \n | (5,102 | \n) | ||
| Total benefit from (provision for) income taxes | \n$ | \n8,939 | \n\n | \n | $ | \n(3,699 | \n) |
\u00a0
\n\u00a0
\n\n| \n | December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Deferred tax assets: | \n\n | \n | |||||
| Net operating loss carryforwards | \n$ | \n4,785 | \n\n | \n | $ | \n5,391 | \n|
| State income taxes | \n50 | \n\n | \n | 15 | \n|||
| Deferred revenue | \n2,769 | \n\n | \n | 3,498 | \n|||
| Research and development and other credits | \n3,701 | \n\n | \n | 3,757 | \n|||
| Reserve and accruals recognized in different periods | \n(563 | \n) | \n\n | 1,692 | \n|||
| Capitalized research and development expenses | \n2,850 | \n\n | \n | 3,019 | \n|||
| Depreciation and amortization | \n587 | \n\n | \n | 1,802 | \n|||
| Lease liability | \n7 | \n\n | \n | 104 | \n|||
| Total deferred tax assets | \n14,186 | \n\n | \n | 19,278 | \n|||
| Valuation allowance | \n(10,837 | \n) | \n\n | (12,341 | \n) | ||
| Net deferred tax assets | \n3,349 | \n\n | \n | 6,937 | \n|||
| Deferred tax liabilities: | \n\n | \n | |||||
| Right of use lease assets | \n(6 | \n) | \n\n | (67 | \n) | ||
| Total deferred tax liabilities | \n(6 | \n) | \n\n | (67 | \n) | ||
| Net deferred taxes | \n$ | \n3,343 | \n\n | \n | $ | \n6,870 | \n
| \n | \n Years Ended\u00a0December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Federal statutory rate | \n21.0 | \n% | \n\n | 21.0\u00a0 | \n% |
| Foreign withholding | \n0.7 | \n% | \n\n | 0.3\u00a0 | \n% |
| Stock-based compensation expense | \n(0.7) | \n% | \n\n | 0.3\u00a0 | \n% |
| Foreign rate differential | \n(2.1) | \n% | \n\n | (2.3) | \n% |
| Prior year true-up items | \n\u2014 | \n% | \n\n | (0.9) | \n% |
| Tax reserves | \n4.0 | \n% | \n\n | 5.3 | \n% |
| FTC | \n(6.0) | \n% | \n\n | 1.4\u00a0 | \n% |
| Other | \n0.6 | \n% | \n\n | 0.7\u00a0 | \n% |
| State taxes, net of federal benefit | \n0.2 | \n% | \n\n | 0.2\u00a0 | \n% |
| Global intangible low-taxed income | \n3.8 | \n% | \n\n | 6.4\u00a0 | \n% |
| Nondeductible officers compensation | \n2.8 | \n% | \n\n | 1.1\u00a0 | \n% |
| Valuation allowance | \n(3.5) | \n% | \n\n | (47.2) | \n% |
| Effective tax rate | \n20.8 | \n% | \n\n | (13.7) | \n% |
| \n | \n Years Ended\u00a0December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Balance at beginning of year | \n7,093 | \n\n | \n | 7,569 | \n|
| Gross increases for tax positions of prior years | \n\u2014 | \n\n | \n | 647 | \n|
| Gross decreases for federal tax rate change for tax positions of prior years | \n125 | \n\n | \n | (2,170 | \n) |
| Gross increases for tax positions of current year | \n272 | \n\n | \n | 1,146 | \n|
| Lapse of statute of limitations | \n\u2014 | \n\n | \n | (99 | \n) |
| Balance at end of year | \n7,490 | \n\n | \n | 7,093 | \n
| \u00a0 | \n\n | \n | \n Years Ended\u00a0December 31, | ||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Income before provision for (benefit from) income taxes | \n42,915 | \n\n | \n | 26,965 | \n|||||
| Provision for (benefit from) income taxes | \n\n | \n | \n | \n | 8,939 | \n\n | \n | (3,699 | \n) |
| Effective tax rate | \n\n | \n | \n | \n | 20.8 | \n% | \n\n | 13.7 | \n% |
| \n | Years Ended December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Domestic | \n$ | \n30,458 | \n\n | \n | $ | \n14,552 | \n|
| Foreign | \n12,457 | \n\n | \n | 12,413 | \n|||
| Total | \n$ | \n42,915 | \n\n | \n | $ | \n26,965 | \n
| \n | Years Ended December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Current: | \n\n | \n | |||||
| U.S. federal | \n$ | \n3,554 | \n\n | \n | $ | \n458 | \n|
| States and local | \n236 | \n\n | \n | 74 | \n|||
| Foreign | \n1,621 | \n\n | \n | 871 | \n|||
| Total current | \n5,411 | \n\n | \n | 1,403 | \n|||
| Deferred: | \n\n | \n | |||||
| U.S. federal | \n2,921 | \n\n | \n | (5,694 | \n) | ||
| States and local | \n\u2014 | \n\n | \n | \u2014 | \n|||
| Foreign | \n607 | \n\n | \n | 592 | \n|||
| Total deferred | \n3,528 | \n\n | \n | (5,102 | \n) | ||
| Total benefit from (provision for) income taxes | \n$ | \n8,939 | \n\n | \n | $ | \n(3,699 | \n) |
| \n | December 31, | ||||||
| \n | 2023 | \n\n | 2022 | ||||
| Deferred tax assets: | \n\n | \n | |||||
| Net operating loss carryforwards | \n$ | \n4,785 | \n\n | \n | $ | \n5,391 | \n|
| State income taxes | \n50 | \n\n | \n | 15 | \n|||
| Deferred revenue | \n2,769 | \n\n | \n | 3,498 | \n|||
| Research and development and other credits | \n3,701 | \n\n | \n | 3,757 | \n|||
| Reserve and accruals recognized in different periods | \n(563 | \n) | \n\n | 1,692 | \n|||
| Capitalized research and development expenses | \n2,850 | \n\n | \n | 3,019 | \n|||
| Depreciation and amortization | \n587 | \n\n | \n | 1,802 | \n|||
| Lease liability | \n7 | \n\n | \n | 104 | \n|||
| Total deferred tax assets | \n14,186 | \n\n | \n | 19,278 | \n|||
| Valuation allowance | \n(10,837 | \n) | \n\n | (12,341 | \n) | ||
| Net deferred tax assets | \n3,349 | \n\n | \n | 6,937 | \n|||
| Deferred tax liabilities: | \n\n | \n | |||||
| Right of use lease assets | \n(6 | \n) | \n\n | (67 | \n) | ||
| Total deferred tax liabilities | \n(6 | \n) | \n\n | (67 | \n) | ||
| Net deferred taxes | \n$ | \n3,343 | \n\n | \n | $ | \n6,870 | \n
| \n | \n Years Ended\u00a0December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Federal statutory rate | \n21.0 | \n% | \n\n | 21.0\u00a0 | \n% |
| Foreign withholding | \n0.7 | \n% | \n\n | 0.3\u00a0 | \n% |
| Stock-based compensation expense | \n(0.7) | \n% | \n\n | 0.3\u00a0 | \n% |
| Foreign rate differential | \n(2.1) | \n% | \n\n | (2.3) | \n% |
| Prior year true-up items | \n\u2014 | \n% | \n\n | (0.9) | \n% |
| Tax reserves | \n4.0 | \n% | \n\n | 5.3 | \n% |
| FTC | \n(6.0) | \n% | \n\n | 1.4\u00a0 | \n% |
| Other | \n0.6 | \n% | \n\n | 0.7\u00a0 | \n% |
| State taxes, net of federal benefit | \n0.2 | \n% | \n\n | 0.2\u00a0 | \n% |
| Global intangible low-taxed income | \n3.8 | \n% | \n\n | 6.4\u00a0 | \n% |
| Nondeductible officers compensation | \n2.8 | \n% | \n\n | 1.1\u00a0 | \n% |
| Valuation allowance | \n(3.5) | \n% | \n\n | (47.2) | \n% |
| Effective tax rate | \n20.8 | \n% | \n\n | (13.7) | \n% |
| \n | \n Years Ended\u00a0December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Balance at beginning of year | \n7,093 | \n\n | \n | 7,569 | \n|
| Gross increases for tax positions of prior years | \n\u2014 | \n\n | \n | 647 | \n|
| Gross decreases for federal tax rate change for tax positions of prior years | \n125 | \n\n | \n | (2,170 | \n) |
| Gross increases for tax positions of current year | \n272 | \n\n | \n | 1,146 | \n|
| Lapse of statute of limitations | \n\u2014 | \n\n | \n | (99 | \n) |
| Balance at end of year | \n7,490 | \n\n | \n | 7,093 | \n
| \u00a0 | \n\n | \n | Years Ended December 31, | ||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Denominator: | \n\n | \n | |||||||
| Weighted-average shares outstanding, basic | \n\n | \n | \n | \n | 32,214 | \n\n | \n | 33,280 | \n|
| Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP | \n\n | \n | \n | \n | 322 | \n\n | \n | 228 | \n|
| Weighted average shares outstanding, diluted | \n\n | \n | \n | \n | 32,536 | \n\n | \n | 33,508 | \n
| \u00a0 | \n\n | \n | Years Ended December 31, | ||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||
| Denominator: | \n\n | \n | |||||||
| Weighted-average shares outstanding, basic | \n\n | \n | \n | \n | 32,214 | \n\n | \n | 33,280 | \n|
| Shares related to outstanding options, unvested RSUs, RSAs, PSUs and ESPP | \n\n | \n | \n | \n | 322 | \n\n | \n | 228 | \n|
| Weighted average shares outstanding, diluted | \n\n | \n | \n | \n | 32,536 | \n\n | \n | 33,508 | \n
| \n | Balance Sheets Classification | \n\n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Assets | \n\u00a0 | \n\n | \u00a0 | \n\n | \u00a0 | ||||
| Right-of-use assets | \n\n | \n | $ | \n36 | \n\n | \n | $ | \n360 | \n|
| Liabilities | \n\n | \n | \n | \n | |||||
| \u00a0\u00a0Operating lease liabilities - current | \n\n | \n | 39 | \n\n | \n | 486 | \n|||
| \u00a0\u00a0Operating lease liabilities - long-term | \n\n | \n | \u2014 | \n\n | \n | 56 | \n|||
| Total lease liabilities | \n\n | \n | $ | \n39 | \n\n | \n | $ | \n542 |
| \n | Years Ended December 31, | |||||
| \n | 2023 | \n\n | 2022 | |||
| Cash paid within operating cash flow | \n38 | \n\n | \n | $ | \n1,264 | \n|
| Weighted average lease terms (in years) | \n0.20 | \n\n | 0.70 | \n|||
| Weighted average discount rates | \nN/A | \n\n | \n | 3.93 | \n% |
| \n | \n | \n | Years Ended December 31, | ||||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||||
| Operating lease costs | \n$ | \n555 | \n\n | \n | $ | \n906 | \n|||||
| Variable lease payments | \n\n | \n | \n | \n | 18 | \n\n | \n | 426 | \n|||
| Sublease income | \n\n | \n | \n | \n | (544 | \n) | \n\n | (1,143 | \n) | ||
| Total lease cost (income) | \n\n | \n | \n | \n | $ | \n29 | \n\n | \n | $ | \n189 | \n
| For the Years Ending December 31, | \n\n | |||
| 2024 | \n39 | \n|||
| Total lease payments | \n39 | \n|||
| Less: Interest | \n\n | \u2014 | \n||
| Total lease liability | \n\n | $ | \n39 | \n
| For the Years Ending December 31, | \n\n | |||
| 2024 | \n\n | 34 | \n||
| Total | \n\n | $ | \n34 | \n
| \n | Balance Sheets Classification | \n\n | December 31, 2023 | \n\n | December 31, 2022 | ||||
| Assets | \n\u00a0 | \n\n | \u00a0 | \n\n | \u00a0 | ||||
| Right-of-use assets | \n\n | \n | $ | \n36 | \n\n | \n | $ | \n360 | \n|
| Liabilities | \n\n | \n | \n | \n | |||||
| \u00a0\u00a0Operating lease liabilities - current | \n\n | \n | 39 | \n\n | \n | 486 | \n|||
| \u00a0\u00a0Operating lease liabilities - long-term | \n\n | \n | \u2014 | \n\n | \n | 56 | \n|||
| Total lease liabilities | \n\n | \n | $ | \n39 | \n\n | \n | $ | \n542 |
| \n | Years Ended December 31, | |||||
| \n | 2023 | \n\n | 2022 | |||
| Cash paid within operating cash flow | \n38 | \n\n | \n | $ | \n1,264 | \n|
| Weighted average lease terms (in years) | \n0.20 | \n\n | 0.70 | \n|||
| Weighted average discount rates | \nN/A | \n\n | \n | 3.93 | \n% |
| \n | \n | \n | Years Ended December 31, | ||||||||
| \n | \n | \n | \n | \n | 2023 | \n\n | 2022 | ||||
| Operating lease costs | \n$ | \n555 | \n\n | \n | $ | \n906 | \n|||||
| Variable lease payments | \n\n | \n | \n | \n | 18 | \n\n | \n | 426 | \n|||
| Sublease income | \n\n | \n | \n | \n | (544 | \n) | \n\n | (1,143 | \n) | ||
| Total lease cost (income) | \n\n | \n | \n | \n | $ | \n29 | \n\n | \n | $ | \n189 | \n
| For the Years Ending December 31, | \n\n | |||
| 2024 | \n39 | \n|||
| Total lease payments | \n39 | \n|||
| Less: Interest | \n\n | \u2014 | \n||
| Total lease liability | \n\n | $ | \n39 | \n
| For the Years Ending December 31, | \n\n | |||
| 2024 | \n\n | 34 | \n||
| Total | \n\n | $ | \n34 | \n
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Mobile, Wearables, and Consumer | \n41 | \n% | \n\n | 60 | \n% |
| Gaming Devices | \n32 | \n\n | \n | 21 | \n|
| Automotive | \n22 | \n\n | \n | 13 | \n|
| Other | \n5 | \n\n | \n | 6 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Asia | \n74 | \n% | \n\n | 62 | \n% |
| Europe | \n17 | \n\n | \n | 10 | \n|
| North America | \n9 | \n\n | \n | 28 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Japan | \n39 | \n% | \n27 | \n% | |
| Korea | \n32 | \n\n | \n | 33 | \n|
| Germany | \n15 | \n7 | \n|||
| United States of America | \n9 | \n\n | \n | 28 | \n|
| Other countries with less than 10% in a year | \n5 | \n\n | \n | 5 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Canada | \n96 | \n% | \n\n | 97 | \n% |
| United States of America | \n2 | \n\n | \n | 2 | \n|
| Rest of World | \n2 | \n\n | \n | 1 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Customer A | \n81 | \n% | \n\n | 60 | \n% |
| Customer B | \n14 | \n% | \n\n | * | \n% |
| Customer C | \n* | \n21 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Mobile, Wearables, and Consumer | \n41 | \n% | \n\n | 60 | \n% |
| Gaming Devices | \n32 | \n\n | \n | 21 | \n|
| Automotive | \n22 | \n\n | \n | 13 | \n|
| Other | \n5 | \n\n | \n | 6 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Asia | \n74 | \n% | \n\n | 62 | \n% |
| Europe | \n17 | \n\n | \n | 10 | \n|
| North America | \n9 | \n\n | \n | 28 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Japan | \n39 | \n% | \n27 | \n% | |
| Korea | \n32 | \n\n | \n | 33 | \n|
| Germany | \n15 | \n7 | \n|||
| United States of America | \n9 | \n\n | \n | 28 | \n|
| Other countries with less than 10% in a year | \n5 | \n\n | \n | 5 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Canada | \n96 | \n% | \n\n | 97 | \n% |
| United States of America | \n2 | \n\n | \n | 2 | \n|
| Rest of World | \n2 | \n\n | \n | 1 | \n|
| Total | \n100 | \n% | \n\n | 100 | \n% |
| \n | Years Ended December 31, | ||||
| \n | 2023 | \n\n | 2022 | ||
| Customer A | \n81 | \n% | \n\n | 60 | \n% |
| Customer B | \n14 | \n% | \n\n | * | \n% |
| Customer C | \n* | \n21 | \n% |
\u00a0 \u00a0 \u00a0On February 9, 2024, we entered into a Patent License and Settlement Agreement (the \u201cLicense and Settlement Agreement\u201d) with Meta, pursuant to which the parties have agreed to terms for resolving the litigation matters against Meta described in Note 5 Contingencies (the \u201cLitigation\u201d) and Meta will license, on a non-exclusive basis, Immersion\u2019s patent portfolio for use in its products. Under the License and Settlement Agreement, in consideration for the license and releases granted therein, Immersion expects to receive approximately $17.5 million, after deducting for legal fees related to the Litigation (and other pending litigation) and other liabilities. Pursuant to the License and Settlement Agreement, Immersion and Meta have agreed to terms for dismissal by them of the outstanding Litigation and IPRs. The description of the License and Settlement Agreement contained herein does not purport to be complete and is qualified in its entirety by reference to the License and Settlement Agreement, which we intend to file as an exhibit to our Quarterly Report on Form 10-Q for the quarter ending March 31, 2024.