NOTE 1. ORGANIZATION
Description of Business
Immersion
Immersion Corporation (\u201cImmersion\u201d) was incorporated in 1993 in California and reincorporated in Delaware in 1999. Unless the context otherwise requires, references in these Notes to the Condensed Consolidated Financial Statements to the \u201cCompany\u201d, \u201cwe\u201d, \u201cus,\u201d and \u201cour\u201d refer to Immersion and our consolidated subsidiaries.
Immersion generates license and royalty revenues from a wide range of intellectual property (\u201cIP\u201d) that more fully engage users\u2019 sense of touch when operating digital devices. We focus on the following target application areas: mobile devices, wearables, consumer, mobile entertainment and other content; console gaming; automotive; medical; and commercial.
On June 10, 2024 (the \u201cClosing Date\u201d), we acquired a controlling interest in Barnes & Noble Education, Inc., a Delaware corporation (\u201cBarnes & Noble Education\u201d or \u201cBNED\u201d). See Note 3. Business Combination in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended April 30, 2026, for additional information. The financial results of Barnes & Noble Education have been included in our Condensed Consolidated Financial Statements since the Closing Date.
Barnes & Noble Education
Barnes & Noble Education is one of the largest contract operators of physical and virtual bookstores for college and university campuses and K-12 institutions across the United States. Barnes & Noble Education is also a textbook wholesaler, and bookstore management hardware and software provider. Barnes & Noble Education operates physical and virtual bookstores, delivering essential educational content and general merchandise within a dynamic omnichannel retail environment.
BNC First Day\u00ae Equitable and Inclusive Access Programs
Barnes & Noble Education provides product and service offerings designed to address the most pressing issues in higher education, including equitable access, enhanced convenience and improved affordability through innovative course material delivery models designed to drive improved student experiences and outcomes. Barnes & Noble Education offers its BNC First Day\u00ae affordable access course material programs, consisting of First Day Complete and First Day, which provide faculty-required course materials to students on or before the first day of class.
The Barnes & Noble brand (licensed from Barnes & Noble Education\u2019s former parent) along with its subsidiary brands, BNC and MBS, are synonymous with innovation in bookselling and campus retailing in the United States. Barnes & Noble Education\u2019s large college footprint, reputation, and credibility in the marketplace not only support its marketing efforts to universities, students, and faculty, but are also important to its relationship with leading educational publishers who rely on us as one of their primary distribution channels.
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Principles of Consolidation and Basis of Presentation
The results of operations reflected in the Company\u2019s Condensed Consolidated Financial Statements include the accounts of Immersion and our wholly-owned subsidiaries, as well as the accounts of Barnes & Noble Education, a consolidated variable interest entity, since June 10, 2024. All significant intercompany accounts and transactions have been eliminated in consolidation.
The noncontrolling interest on the Condensed Consolidated Statements of Operations represents the portion of earnings or loss attributable to the interest in Barnes & Noble Education held by other owners. The noncontrolling interest on the Condensed Consolidated Balance Sheets represents the portion of Barnes & Noble Education\u2019s net assets attributable to the other owners, based on the portion of the interest owned by such owners. As of July 31, 2026 and April 30, 2026, the noncontrolling interest was $260.2 million and $270.2 million, respectively. At the end of each reporting period, equity related to Barnes & Noble Education that is attributable to Immersion and the other owners is rebalanced to reflect Immersion\u2019s and the other owners\u2019 ownership in Barnes & Noble Education.
These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (\u201cU.S. GAAP\u201d) for interim financial information and with the instructions for Form 10-Q and the applicable articles of Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with U.S. GAAP and should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2026. In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included.
Due to their non-homogeneous operations, our Condensed Consolidated Balance Sheet as of July 31, 2026 and Consolidated Balance Sheet as of April 30, 2026 and Condensed Consolidated Statements of Operations for the three months ended July 31, 2026 and 2025, separately present the operating assets, liabilities, and operations of Immersion\u2019s business from the operating assets, liabilities and operations of Barnes & Noble Education's business. All the assets of Barnes & Noble Education, reported on the Condensed Consolidated Balance Sheets, can be used only to settle obligations of Barnes & Noble Education. None of the liabilities of Barnes & Noble Education have recourse to the general credit of Immersion Corporation.
Seasonality
Barnes & Noble Education\u2019s business is highly seasonal, particularly with respect to textbook sales and rentals, with the major portion of sales and operating profit realized during the second and third fiscal quarters when college students generally purchase and rent textbooks for the upcoming semesters and lowest in the first and fourth fiscal quarters. Barnes & Noble Education\u2019s quarterly results also may fluctuate depending on the timing of the start of the various schools\u2019 semesters, as well as shifts in its fiscal calendar dates.
As the concentration of digital product sales increases, revenue will be recognized earlier during the academic term as digital textbook revenue is recognized when the digital content is made available to the customer compared to: (i) the rental of physical textbooks where revenue is recognized over the rental period; and (ii) a la carte courseware sales where revenue is recognized when the customer takes physical possession of Barnes & Noble Education\u2019s products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of Barnes & Noble Education\u2019s products by its customers for products ordered through Barnes & Noble Education\u2019s websites and virtual bookstores. See Revenue Recognition and Deferred Revenue discussion below.
These shifts in timing may affect the comparability of Barnes & Noble Education\u2019s results across periods. Sales attributable to Barnes & Noble Education\u2019s wholesale business are generally highest in Barnes & Noble Education\u2019s first, second and third quarters, as it sells textbooks and other course materials for retail distribution. See Revenue Recognition and Deferred Revenue discussion below.
Summary of Significant Accounting Policies
There have been no material changes to our significant accounting policies from the information provided in \u201cNote 2 \u2013 Summary of Significant Accounting Policies\u201d of the Notes to the Consolidated Financial Statements set forth in Item 8 included in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended April 30, 2026, except as described below.
Use of Estimates
In preparing these financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates.
Goodwill and Indefinite-Lived Intangible Assets
We have goodwill and indefinite-lived intangible assets that have been recorded in connection with the acquisition of Barnes & Noble Education. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually. We monitor these assets on a quarterly basis for potential indicators of impairment. Goodwill is required to be tested for impairment at the reporting unit level, which is an operating segment, or one level below the operating segment.
Impairment of Long-Lived Assets
The Company\u2019s long-lived assets include property and equipment, operating lease right-of-use assets, and amortizable intangibles recorded in connection with our business acquisition of Barnes & Noble Education. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate the long-lived assets of the reporting units for impairment at the lowest asset group level for which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, we first compare the carrying amount of the asset group to the estimated future undiscounted cash flows. The impairment loss calculation compares the carrying amount of the assets to the fair value based on estimated discounted future cash flows. If required, an impairment loss is recorded for that portion of the asset\u2019s carrying value in excess of fair value.
Restricted Cash
As of July 31, 2026 and April 30, 2026, the Company had restricted cash of $13.7 million and $19.8 million, respectively, which consisted of $11.4 million and $17.4 million, respectively, in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets related to segregated funds for commission due to Fanatics Lids College, Inc. D/B/A \u201cLids\u201d (\u201cLids\u201d) for logo merchandise sales as per the Lids service provider merchandising agreement, and $2.3 million and $2.4 million, respectively, in Other assets - noncurrent in the Condensed Consolidated Balance Sheets related to amounts held in trust for future distributions related to employee benefit plans.
Merchandise Inventories
During the three months ended July 31, 2026, no LIFO adjustment was required. The related LIFO reserve was $6.4 million to Barnes & Noble Education\u2019s inventory balance at both July 31, 2026 and April 30, 2026.
Revenue Recognition and Deferred Revenue
Except for the accounting policy on revenue recognition related to Barnes & Noble Education\u2019s gift-card program described below, there have been no material changes to the Company\u2019s accounting policy on revenue recognition and deferred revenue which is described in Note 2 to the consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended April 30, 2026.
Barnes & Noble Education does not have a customer loyalty program. In fiscal 2027, Barnes & Noble Education launched its own gift card program. Proceeds from the sale of gift cards issued by Barnes & Noble Education are recorded as a contract liability and recognized as revenue upon redemption by the customer or when breakage is recognized in accordance with the Barnes & Noble Education's accounting policy. Barnes & Noble Education also accepts Barnes & Noble Booksellers (\"B&N\") gift cards and sells third-party gift cards, including B&N gift cards, in its stores. Barnes & Noble Education does not treat any promotional offers
as expenses. Sales tax collected from its customers is excluded from reported revenues. Barnes & Noble Education\u2019s payment terms are generally 30 days and do not extend beyond one year.
Accounting Pronouncements
Recently Issued Accounting Pronouncements
There were no new accounting pronouncements issued during the three months ended July 31, 2026, that are expected to have a material impact on the Company\u2019s Condensed Consolidated Financial Statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles\u2014Goodwill and Other\u2014Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (\u201cASU 2025-06\u201d). ASU 2025-06 modernizes and simplifies the accounting for software development costs by establishing a single capitalization framework for all internally developed or acquired software, regardless of whether the software is intended for internal use, to be sold, or to be used in delivering products and services. The new guidance retains the concept of project stages but eliminates the historical distinction between internal-use software and software to be sold or marketed. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The guidance is required to be applied prospectively, with optional retrospective or modified retrospective transition methods. The Company is currently evaluating the impact of ASU 2025-06 on its condensed consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement \u2013 Reporting Comprehensive Income \u2013 Expense Disaggregation Disclosures. The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. This ASU is effective for annual and interim periods beginning after December 15, 2026 (our 2028 fiscal year), with early adoption permitted. We are currently assessing this guidance and determining the impact on its condensed consolidated financial statements.
Recently Issued Accounting Pronouncements Adopted
In September 2025, Financial Accounting Standards Board (the \u201cFASB\u201d) issued ASU No. 2025-07 (\u201cASU 2025-07\u201d) Derivatives and Hedging (Topic 815): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 related to share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt ASU 2025-07 effective May 1, 2025, the first day of its fiscal 2026. The adoption did not have a material impact on the Company\u2019s condensed consolidated financial statements accounting for its Participation Interest Purchase Agreement. See Note 9. Participation Interest Purchase Agreement for further discussion.
Principles of Consolidation and Basis of Presentation
The results of operations reflected in the Company\u2019s Condensed Consolidated Financial Statements include the accounts of Immersion and our wholly-owned subsidiaries, as well as the accounts of Barnes & Noble Education, a consolidated variable interest entity, since June 10, 2024. All significant intercompany accounts and transactions have been eliminated in consolidation.
The noncontrolling interest on the Condensed Consolidated Statements of Operations represents the portion of earnings or loss attributable to the interest in Barnes & Noble Education held by other owners. The noncontrolling interest on the Condensed Consolidated Balance Sheets represents the portion of Barnes & Noble Education\u2019s net assets attributable to the other owners, based on the portion of the interest owned by such owners. As of July 31, 2026 and April 30, 2026, the noncontrolling interest was $260.2 million and $270.2 million, respectively. At the end of each reporting period, equity related to Barnes & Noble Education that is attributable to Immersion and the other owners is rebalanced to reflect Immersion\u2019s and the other owners\u2019 ownership in Barnes & Noble Education.
These Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (\u201cU.S. GAAP\u201d) for interim financial information and with the instructions for Form 10-Q and the applicable articles of Regulation S-X. Accordingly, these Condensed Consolidated Financial Statements do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, and cash flows, in conformity with U.S. GAAP and should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2026. In the opinion of management, all adjustments consisting of only normal and recurring items necessary for the fair presentation of the financial position and results of operations for the interim periods presented have been included.
Due to their non-homogeneous operations, our Condensed Consolidated Balance Sheet as of July 31, 2026 and Consolidated Balance Sheet as of April 30, 2026 and Condensed Consolidated Statements of Operations for the three months ended July 31, 2026 and 2025, separately present the operating assets, liabilities, and operations of Immersion\u2019s business from the operating assets, liabilities and operations of Barnes & Noble Education's business. All the assets of Barnes & Noble Education, reported on the Condensed Consolidated Balance Sheets, can be used only to settle obligations of Barnes & Noble Education. None of the liabilities of Barnes & Noble Education have recourse to the general credit of Immersion Corporation.
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Barnes & Noble Education\u2019s business is highly seasonal, particularly with respect to textbook sales and rentals, with the major portion of sales and operating profit realized during the second and third fiscal quarters when college students generally purchase and rent textbooks for the upcoming semesters and lowest in the first and fourth fiscal quarters. Barnes & Noble Education\u2019s quarterly results also may fluctuate depending on the timing of the start of the various schools\u2019 semesters, as well as shifts in its fiscal calendar dates.
As the concentration of digital product sales increases, revenue will be recognized earlier during the academic term as digital textbook revenue is recognized when the digital content is made available to the customer compared to: (i) the rental of physical textbooks where revenue is recognized over the rental period; and (ii) a la carte courseware sales where revenue is recognized when the customer takes physical possession of Barnes & Noble Education\u2019s products, which occurs either at the point of sale for products purchased at physical locations or upon receipt of Barnes & Noble Education\u2019s products by its customers for products ordered through Barnes & Noble Education\u2019s websites and virtual bookstores. See Revenue Recognition and Deferred Revenue discussion below.
These shifts in timing may affect the comparability of Barnes & Noble Education\u2019s results across periods. Sales attributable to Barnes & Noble Education\u2019s wholesale business are generally highest in Barnes & Noble Education\u2019s first, second and third quarters, as it sells textbooks and other course materials for retail distribution. See Revenue Recognition and Deferred Revenue discussion below.
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In preparing these financial statements in conformity with U.S. GAAP, we are required to make estimates and assumptions that affect the reported amounts in the Condensed Consolidated Financial Statements and accompanying notes. Actual results could differ from those estimates."}]},{"name":"rpt:f-410","factDimensions":{"xbrl:concept":"us-gaap:GoodwillAndIntangibleAssetsPolicyTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"Goodwill and Indefinite-Lived Intangible Assets
We have goodwill and indefinite-lived intangible assets that have been recorded in connection with the acquisition of Barnes & Noble Education. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment at least annually. We monitor these assets on a quarterly basis for potential indicators of impairment. Goodwill is required to be tested for impairment at the reporting unit level, which is an operating segment, or one level below the operating segment.
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The Company\u2019s long-lived assets include property and equipment, operating lease right-of-use assets, and amortizable intangibles recorded in connection with our business acquisition of Barnes & Noble Education. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. We evaluate the long-lived assets of the reporting units for impairment at the lowest asset group level for which individual cash flows can be identified. When evaluating long-lived assets for potential impairment, we first compare the carrying amount of the asset group to the estimated future undiscounted cash flows. The impairment loss calculation compares the carrying amount of the assets to the fair value based on estimated discounted future cash flows. If required, an impairment loss is recorded for that portion of the asset\u2019s carrying value in excess of fair value.
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As of July 31, 2026 and April 30, 2026, the Company had restricted cash of $13.7 million and $19.8 million, respectively, which consisted of $11.4 million and $17.4 million, respectively, in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets related to segregated funds for commission due to Fanatics Lids College, Inc. D/B/A \u201cLids\u201d (\u201cLids\u201d) for logo merchandise sales as per the Lids service provider merchandising agreement, and $2.3 million and $2.4 million, respectively, in Other assets - noncurrent in the Condensed Consolidated Balance Sheets related to amounts held in trust for future distributions related to employee benefit plans.
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During the three months ended July 31, 2026, no LIFO adjustment was required. The related LIFO reserve was $6.4 million to Barnes & Noble Education\u2019s inventory balance at both July 31, 2026 and April 30, 2026.
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Except for the accounting policy on revenue recognition related to Barnes & Noble Education\u2019s gift-card program described below, there have been no material changes to the Company\u2019s accounting policy on revenue recognition and deferred revenue which is described in Note 2 to the consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended April 30, 2026.
Barnes & Noble Education does not have a customer loyalty program. In fiscal 2027, Barnes & Noble Education launched its own gift card program. Proceeds from the sale of gift cards issued by Barnes & Noble Education are recorded as a contract liability and recognized as revenue upon redemption by the customer or when breakage is recognized in accordance with the Barnes & Noble Education's accounting policy. Barnes & Noble Education also accepts Barnes & Noble Booksellers (\"B&N\") gift cards and sells third-party gift cards, including B&N gift cards, in its stores. Barnes & Noble Education does not treat any promotional offers
as expenses. Sales tax collected from its customers is excluded from reported revenues. Barnes & Noble Education\u2019s payment terms are generally 30 days and do not extend beyond one year.
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Recently Issued Accounting Pronouncements
There were no new accounting pronouncements issued during the three months ended July 31, 2026, that are expected to have a material impact on the Company\u2019s Condensed Consolidated Financial Statements.
In September 2025, the FASB issued ASU No. 2025-06, Intangibles\u2014Goodwill and Other\u2014Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (\u201cASU 2025-06\u201d). ASU 2025-06 modernizes and simplifies the accounting for software development costs by establishing a single capitalization framework for all internally developed or acquired software, regardless of whether the software is intended for internal use, to be sold, or to be used in delivering products and services. The new guidance retains the concept of project stages but eliminates the historical distinction between internal-use software and software to be sold or marketed. ASU 2025-06 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. The guidance is required to be applied prospectively, with optional retrospective or modified retrospective transition methods. The Company is currently evaluating the impact of ASU 2025-06 on its condensed consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement \u2013 Reporting Comprehensive Income \u2013 Expense Disaggregation Disclosures. The ASU requires a public business entity to provide disaggregated disclosures of certain categories of expenses on an annual and interim basis including purchases of inventory, employee compensation, depreciation, and intangible asset amortization for each income statement line item that contains those expenses. This ASU is effective for annual and interim periods beginning after December 15, 2026 (our 2028 fiscal year), with early adoption permitted. We are currently assessing this guidance and determining the impact on its condensed consolidated financial statements.
Recently Issued Accounting Pronouncements Adopted
In September 2025, Financial Accounting Standards Board (the \u201cFASB\u201d) issued ASU No. 2025-07 (\u201cASU 2025-07\u201d) Derivatives and Hedging (Topic 815): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract. The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 related to share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt ASU 2025-07 effective May 1, 2025, the first day of its fiscal 2026. The adoption did not have a material impact on the Company\u2019s condensed consolidated financial statements accounting for its Participation Interest Purchase Agreement. See Note 9. Participation Interest Purchase Agreement for further discussion.
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The Company operates as two operating and reporting segments, Immersion and Barnes & Noble Education. We identify these segments based on the distinct business activities of each company as they are managed separately.
Our Chief Executive Officer, as the Company\u2019s , uses Operating income (loss) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment.
Due to the nonhomogeneous operations of Immersion and Barnes & Noble Education, the Company\u2019s Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of Operations, separately present the operating assets, liabilities, and operations of Immersion\u2019s business from the operating assets, liabilities, and operations of Barnes & Noble Education\u2019s business. Our Condensed Consolidated Statements of Operations includes each segment\u2019s significant segment expenses. Summarized financial information for our reportable segments is reported below (in thousands):
\u00a0
| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
(in thousands) | \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Revenues: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n 3,804 | \n \u00a0 | \n \u00a0 | \n $ | \n 3,872 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 290,595 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 288,160 | \n \u00a0 | \n
Total revenues | \n \u00a0 | \n \u00a0 | \n 294,399 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 292,032 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Cost of sales (excludes depreciation and amortization expense): | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 234,015 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 233,594 | \n \u00a0 | \n
Operating expenses: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Selling and administrative expenses | \n \u00a0 | \n \u00a0 | \n 3,498 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 3,695 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Selling and administrative expenses | \n \u00a0 | \n \u00a0 | \n 67,316 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 67,805 | \n \u00a0 | \n
Depreciation and amortization expense | \n \u00a0 | \n \u00a0 | \n 10,204 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 10,397 | \n \u00a0 | \n
Restructuring and other charges | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Other income | \n \u00a0 | \n \u00a0 | \n (652 | \n ) | \n \u00a0 | \n \u00a0 | \n 2,896 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n 76,868 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 81,098 | \n \u00a0 | \n
Total operating expenses | \n \u00a0 | \n \u00a0 | \n 80,366 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 84,793 | \n \u00a0 | \n
Operating Income (Loss): | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n 306 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 177 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n (20,288 | \n ) | \n \u00a0 | \n \u00a0 | \n (26,532 | \n ) | \n
Operating Loss | \n \u00a0 | \n $ | \n (19,982 | \n ) | \n \u00a0 | \n $ | \n (26,355 | \n ) | \n
The reconciliation between segment Operating Income (Loss) and Income (Loss) Before Income Taxes is included within our Condensed Consolidated Statements of Operations.
Geographically, Immersion\u2019s revenues have historically been concentrated in Asia, primarily in Japan and Korea. The geographic distribution of revenues for Asia, North America, Europe and Africa for the three months ended July 31, 2026, represented 67%, 29%, 1% and 3% of total revenue, respectively, compared with 68%, 5%, 27%, and 0%, respectively, in the prior-year period.
The following table is a summary of Property and Equipment Additions and Total Assets by reportable segment (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
(in thousands) | \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Property and Equipment Additions | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 3,529 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 16,196 | \n \u00a0 | \n
Total property and equipment additions | \n \u00a0 | \n $ | \n 3,529 | \n \u00a0 | \n \u00a0 | \n $ | \n 16,196 | \n \u00a0 | \n
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Total Assets | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n 230,015 | \n \u00a0 | \n \u00a0 | \n $ | \n 210,850 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 946,499 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 841,492 | \n \u00a0 | \n
Total assets | \n \u00a0 | \n $ | \n 1,176,514 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,052,342 | \n \u00a0 | \n
As of July 31, 2026 and April 30, 2026, 87% and 13% of Immersion\u2019s long-lived assets were located in Canada and the U.S., respectively, and Barnes & Noble Education\u2019s long-lived assets were located in the U.S.
"}]},{"name":"rpt:f-426","factDimensions":{"xbrl:concept":"us-gaap:NumberOfOperatingSegments","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"immr:Number"},"factValues":[{"value":"2"}]},{"name":"rpt:f-427","factDimensions":{"xbrl:concept":"us-gaap:NumberOfReportableSegments","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"immr:Number"},"factValues":[{"value":"2"}]},{"name":"rpt:f-428","factDimensions":{"xbrl:concept":"us-gaap:SegmentReportingCodmProfitLossMeasureHowUsedDescription","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"Our Chief Executive Officer, as the Company\u2019s Chief Operating Decision Maker, uses Operating income (loss) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment."}]},{"name":"rpt:f-429","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfSegmentReportingInformationBySegmentTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"Summarized financial information for our reportable segments is reported below (in thousands):\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
(in thousands) | \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Revenues: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n 3,804 | \n \u00a0 | \n \u00a0 | \n $ | \n 3,872 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 290,595 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 288,160 | \n \u00a0 | \n
Total revenues | \n \u00a0 | \n \u00a0 | \n 294,399 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 292,032 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Cost of sales (excludes depreciation and amortization expense): | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 234,015 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 233,594 | \n \u00a0 | \n
Operating expenses: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Selling and administrative expenses | \n \u00a0 | \n \u00a0 | \n 3,498 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 3,695 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Selling and administrative expenses | \n \u00a0 | \n \u00a0 | \n 67,316 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 67,805 | \n \u00a0 | \n
Depreciation and amortization expense | \n \u00a0 | \n \u00a0 | \n 10,204 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 10,397 | \n \u00a0 | \n
Restructuring and other charges | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Other income | \n \u00a0 | \n \u00a0 | \n (652 | \n ) | \n \u00a0 | \n \u00a0 | \n 2,896 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n 76,868 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 81,098 | \n \u00a0 | \n
Total operating expenses | \n \u00a0 | \n \u00a0 | \n 80,366 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 84,793 | \n \u00a0 | \n
Operating Income (Loss): | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n 306 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 177 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n (20,288 | \n ) | \n \u00a0 | \n \u00a0 | \n (26,532 | \n ) | \n
Operating Loss | \n \u00a0 | \n $ | \n (19,982 | \n ) | \n \u00a0 | \n $ | \n (26,355 | \n ) | \n
The following table is a summary of Property and Equipment Additions and Total Assets by reportable segment (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
(in thousands) | \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Property and Equipment Additions | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 3,529 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 16,196 | \n \u00a0 | \n
Total property and equipment additions | \n \u00a0 | \n $ | \n 3,529 | \n \u00a0 | \n \u00a0 | \n $ | \n 16,196 | \n \u00a0 | \n
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Total Assets | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n $ | \n 230,015 | \n \u00a0 | \n \u00a0 | \n $ | \n 210,850 | \n \u00a0 | \n
Barnes & Noble Education | \n \u00a0 | \n \u00a0 | \n 946,499 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 841,492 | \n \u00a0 | \n
Total assets | \n \u00a0 | \n $ | \n 1,176,514 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,052,342 | \n \u00a0 | \n
NOTE 4. REVENUE RECOGNITION
Immersion
Disaggregated Revenue
The following table presents the disaggregation of Immersion\u2019s revenue for the three months ended July 31, 2026 and 2025 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Fixed fee license revenue | \n \u00a0 | \n $ | \n 832 | \n \u00a0 | \n \u00a0 | \n $ | \n 736 | \n \u00a0 | \n
Per-unit royalty revenue | \n \u00a0 | \n \u00a0 | \n 2,972 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 3,136 | \n \u00a0 | \n
Total royalty and license revenue | \n \u00a0 | \n $ | \n 3,804 | \n \u00a0 | \n \u00a0 | \n $ | \n 3,872 | \n \u00a0 | \n
Contract Assets
As of July 31, 2026, we had contract assets of $8.5 million included within Prepaid expenses and other current assets and $12.9 million within Other assets \u2013 noncurrent on the Condensed Consolidated Balance Sheet. As of April 30, 2026, we had contract assets of $8.2 million included within Prepaid expenses and other current assets and $19.8 million within Other assets - noncurrent on the Condensed Consolidated Balance Sheet.
Deferred Revenue
The following table presents changes in deferred revenue associated with our contract liabilities (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Deferred revenue beginning of the period | \n \u00a0 | \n $ | \n 5,790 | \n \u00a0 | \n \u00a0 | \n $ | \n 8,728 | \n \u00a0 | \n
Additions to deferred revenue during the period | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Reductions to deferred revenue for revenue recognized during the period | \n \u00a0 | \n \u00a0 | \n (732 | \n ) | \n \u00a0 | \n \u00a0 | \n (2,938 | \n ) | \n
Deferred revenue balance end of the period | \n \u00a0 | \n $ | \n 5,058 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,790 | \n \u00a0 | \n
\u00a0
Based on contracts signed and payments received as of July 31, 2026, we expect to recognize $5.1 million in revenue under our fixed fee license agreements, which are satisfied over time, including $4.8 million over one to three years and $0.3 million over more than three years.
Revenue recognized during the three months ended July 31, 2026 and 2025 that was included in the deferred revenue balance at the beginning of the period was $0.7 million and $0.7 million, respectively.
Barnes & Noble Education
Disaggregated Revenue
The following table presents disaggregated revenue associated with Barnes & Noble Education\u2019s major products and service offerings (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Course material product sales | \n \u00a0 | \n $ | \n 180,443 | \n \u00a0 | \n \u00a0 | \n $ | \n 157,598 | \n \u00a0 | \n
General merchandise product sales\u00a0(a) | \n \u00a0 | \n \u00a0 | \n 75,987 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 97,710 | \n \u00a0 | \n
Services and other revenue\u00a0(b) | \n \u00a0 | \n \u00a0 | \n 20,429 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 18,871 | \n \u00a0 | \n
Total product and other revenue | \n \u00a0 | \n \u00a0 | \n 276,859 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 274,179 | \n \u00a0 | \n
Course material rental income | \n \u00a0 | \n \u00a0 | \n 13,736 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 13,981 | \n \u00a0 | \n
Total revenue | \n \u00a0 | \n $ | \n 290,595 | \n \u00a0 | \n \u00a0 | \n $ | \n 288,160 | \n \u00a0 | \n
Contract Assets
Contract assets represent the sale of goods or services to a customer before Barnes & Noble Education has the right to obtain consideration from the customer. Contract assets consist of unbilled amounts at the reporting date and are transferred to accounts
receivable when the rights become unconditional. Contract assets (unbilled receivables) were $0.4 million and $1.2 million for July 31, 2026 and April 30, 2026, respectively, on the Condensed Consolidated Balance Sheets.
Deferred Revenue
Contract liabilities represent an obligation to transfer goods or services to a customer for which Barnes & Noble Education has received consideration and consists of its deferred revenue liability (deferred revenue). Deferred revenue consists of the following:
The following table presents changes in deferred revenue associated with Barnes & Noble Education's contract liabilities (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Deferred revenue as of the beginning of the period | \n \u00a0 | \n $ | \n 13,193 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,566 | \n \u00a0 | \n
Additions to deferred revenue during the period | \n \u00a0 | \n \u00a0 | \n 19,431 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 179,893 | \n \u00a0 | \n
Reductions to deferred revenue for revenue recognized during the period | \n \u00a0 | \n \u00a0 | \n (19,802 | \n ) | \n \u00a0 | \n \u00a0 | \n (180,266 | \n ) | \n
Deferred revenue balance at the end of period | \n \u00a0 | \n $ | \n 12,822 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,193 | \n \u00a0 | \n
\u00a0
The following table presents the disaggregation of Immersion\u2019s revenue for the three months ended July 31, 2026 and 2025 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Fixed fee license revenue | \n \u00a0 | \n $ | \n 832 | \n \u00a0 | \n \u00a0 | \n $ | \n 736 | \n \u00a0 | \n
Per-unit royalty revenue | \n \u00a0 | \n \u00a0 | \n 2,972 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 3,136 | \n \u00a0 | \n
Total royalty and license revenue | \n \u00a0 | \n $ | \n 3,804 | \n \u00a0 | \n \u00a0 | \n $ | \n 3,872 | \n \u00a0 | \n
The following table presents changes in deferred revenue associated with our contract liabilities (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Deferred revenue beginning of the period | \n \u00a0 | \n $ | \n 5,790 | \n \u00a0 | \n \u00a0 | \n $ | \n 8,728 | \n \u00a0 | \n
Additions to deferred revenue during the period | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Reductions to deferred revenue for revenue recognized during the period | \n \u00a0 | \n \u00a0 | \n (732 | \n ) | \n \u00a0 | \n \u00a0 | \n (2,938 | \n ) | \n
Deferred revenue balance end of the period | \n \u00a0 | \n $ | \n 5,058 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,790 | \n \u00a0 | \n
The following table presents disaggregated revenue associated with Barnes & Noble Education\u2019s major products and service offerings (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Course material product sales | \n \u00a0 | \n $ | \n 180,443 | \n \u00a0 | \n \u00a0 | \n $ | \n 157,598 | \n \u00a0 | \n
General merchandise product sales\u00a0(a) | \n \u00a0 | \n \u00a0 | \n 75,987 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 97,710 | \n \u00a0 | \n
Services and other revenue\u00a0(b) | \n \u00a0 | \n \u00a0 | \n 20,429 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 18,871 | \n \u00a0 | \n
Total product and other revenue | \n \u00a0 | \n \u00a0 | \n 276,859 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 274,179 | \n \u00a0 | \n
Course material rental income | \n \u00a0 | \n \u00a0 | \n 13,736 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 13,981 | \n \u00a0 | \n
Total revenue | \n \u00a0 | \n $ | \n 290,595 | \n \u00a0 | \n \u00a0 | \n $ | \n 288,160 | \n \u00a0 | \n
The following table presents changes in deferred revenue associated with Barnes & Noble Education's contract liabilities (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, | \n \u00a0 | \n \u00a0 | \n April 30, | \n \u00a0 | \n ||
Deferred revenue as of the beginning of the period | \n \u00a0 | \n $ | \n 13,193 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,566 | \n \u00a0 | \n
Additions to deferred revenue during the period | \n \u00a0 | \n \u00a0 | \n 19,431 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 179,893 | \n \u00a0 | \n
Reductions to deferred revenue for revenue recognized during the period | \n \u00a0 | \n \u00a0 | \n (19,802 | \n ) | \n \u00a0 | \n \u00a0 | \n (180,266 | \n ) | \n
Deferred revenue balance at the end of period | \n \u00a0 | \n $ | \n 12,822 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,193 | \n \u00a0 | \n
\u00a0
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Immersion invests surplus funds in excess of operational requirements in a diversified portfolio of marketable securities, with the objectives of delivering competitive returns, maintaining a high degree of liquidity, and seeking to avoid the permanent impairment of principal. The following summarizes our investments in marketable-equity securities as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
| \n | \n | \n | \n | \n | \n | \n | \n | \n |
Investments - current | \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n ||
Marketable equity securities | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Total Investments \u2013 current | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
\u00a0
Marketable Securities
Marketable securities as of July 31, 2026 and April 30, 2026 consisted of the following (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||||||||||
| \n \u00a0 | \n Cost or | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n ||||
Marketable equity securities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Equity securities | \n \u00a0 | \n $ | \n 36,121 | \n \u00a0 | \n \u00a0 | \n $ | \n 6,838 | \n \u00a0 | \n \u00a0 | \n $ | \n (8,261 | \n ) | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n
Total marketable securities | \n \u00a0 | \n $ | \n 36,121 | \n \u00a0 | \n \u00a0 | \n $ | \n 6,838 | \n \u00a0 | \n \u00a0 | \n $ | \n (8,261 | \n ) | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n
\u00a0
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n |||||||||||||
| \n \u00a0 | \n Cost or | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n ||||
Marketable equity securities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Equity securities | \n \u00a0 | \n $ | \n 47,087 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,365 | \n \u00a0 | \n \u00a0 | \n $ | \n (10,284 | \n ) | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Total marketable securities | \n \u00a0 | \n $ | \n 47,087 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,365 | \n \u00a0 | \n \u00a0 | \n $ | \n (10,284 | \n ) | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Derivative Financial Instruments
Immersion\u2019s derivative instruments consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on the Company\u2019s Condensed Consolidated Balance Sheets as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||||||
| \n \u00a0 | \n Cost | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n |||
Derivative instruments | \n \u00a0 | \n $ | \n 21,365 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,309 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
| \n \u00a0 | \n $ | \n 21,365 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,309 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n |||||||||
| \n \u00a0 | \n Cost | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n |||
Derivative instruments | \n \u00a0 | \n $ | \n 10,690 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,185 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
| \n \u00a0 | \n $ | \n 10,690 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,185 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
The following summarizes the realized and unrealized gains and losses from Immersion\u2019s equity securities and derivative instruments and realized gains and losses from our marketable-debt securities for the following periods (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Net unrealized gains recognized on marketable equity securities | \n $ | \n 3,496 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,243 | \n \u00a0 | \n
Net realized gains recognized on marketable equity securities | \n \u00a0 | \n 3,623 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 960 | \n \u00a0 | \n
Net unrealized gains (losses) recognized on derivative instruments | \n \u00a0 | \n (124 | \n ) | \n \u00a0 | \n \u00a0 | \n 2,577 | \n \u00a0 | \n
Net realized gains recognized on derivative instruments | \n \u00a0 | \n 6,768 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 1,205 | \n \u00a0 | \n
Total net gains recognized in interest income and other income (expense), net | \n $ | \n 13,763 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,985 | \n \u00a0 | \n
\u00a0
Fair Value Measurements
The fair value of certain financial instruments including Cash and cash equivalents; Accounts receivable, net; Accounts payable; and Accrued liabilities approximate their carrying value due to their short-term nature and are classified within Level 1. The fair value of our Long-term borrowings approximates its carrying value and is classified as Level 2, as it is estimated using observable market inputs such as current interest rates and credit spreads for similar instruments.
Our financial instruments measured at fair value on a recurring basis consisted of U.S. treasury securities, equity securities, corporate bonds, and derivatives. Equity securities and certain derivative instruments are classified within Level 1 of the fair value hierarchy as they are valued based on quoted market price in an active market. U.S. treasury securities, corporate bonds, and certain derivative instruments are valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy.
Financial instruments valued based on unobservable inputs, which reflect the reporting entity\u2019s own assumptions or data that market participants would use in valuing an instrument, are generally classified within Level 3 of the fair value hierarchy.
Non-Financial Assets and Liabilities Fair Value Measurements
Our non-financial assets include property and equipment, operating lease right-of-use assets, and intangible assets. Such assets are reported at their carrying values and are not subject to recurring fair value measurements. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10, Accounting for the Impairment or Disposal of Long-Lived Assets. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies for additional information.
Barnes & Noble Education granted phantom share units as long-term incentive awards that are settled in cash based on the fair market value of a share of common stock of the Company at each vesting date. The fair value of the liability for the cash-settled phantom share unit awards will be remeasured at the end of each reporting period through settlement to reflect current risk-free rate and volatility assumptions. At July 31, 2026 and April 30, 2026 a liability was recorded, which is not material to the balance sheet (Level 2 input) and is reflected in Accrued liabilities on the Condensed Consolidated Balance Sheets. See Note 10. Stock-Based Compensation for additional information.
Financial instruments measured at fair value on a recurring basis as of July 31, 2026 and April 30, 2026 are classified based on the valuation technique in the table below (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Fair Value Measurements Using | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Quoted Prices | \n \u00a0 | \n \u00a0 | \n Significant | \n \u00a0 | \n \u00a0 | \n Significant | \n \u00a0 | \n \u00a0 | \n Total | \n \u00a0 | \n ||||
Assets: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Money Market funds (within cash and cash equivalents) | \n \u00a0 | \n $ | \n 141,249 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 141,249 | \n \u00a0 | \n
Equity securities | \n \u00a0 | \n \u00a0 | \n 34,698 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 34,698 | \n \u00a0 | \n
Total assets at fair value | \n \u00a0 | \n $ | \n 175,947 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 175,947 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Liabilities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Derivative instruments | \n \u00a0 | \n $ | \n 9,076 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,598 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 22,674 | \n \u00a0 | \n
Total liabilities at fair value | \n \u00a0 | \n $ | \n 9,076 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,598 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
\u00a0
| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Fair Value Measurements Using | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Quoted Prices | \n \u00a0 | \n \u00a0 | \n Significant Other Observable Inputs | \n \u00a0 | \n \u00a0 | \n Significant Unobservable Inputs | \n \u00a0 | \n \u00a0 | \n Total | \n \u00a0 | \n ||||
Assets: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Money Market funds (within cash and cash equivalents) | \n \u00a0 | \n $ | \n 109,631 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 109,631 | \n \u00a0 | \n
Equity securities | \n \u00a0 | \n \u00a0 | \n 42,168 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 42,168 | \n \u00a0 | \n
Total assets at fair value | \n \u00a0 | \n $ | \n 151,799 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 151,799 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Liabilities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Derivative instruments | \n \u00a0 | \n $ | \n 2,166 | \n \u00a0 | \n \u00a0 | \n $ | \n 9,709 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
Total liabilities at fair value | \n \u00a0 | \n $ | \n 2,166 | \n \u00a0 | \n \u00a0 | \n $ | \n 9,709 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
| \n | \n | \n | \n | \n | \n | \n | \n | \n |
Investments - current | \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n ||
Marketable equity securities | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Total Investments \u2013 current | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Marketable securities as of July 31, 2026 and April 30, 2026 consisted of the following (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||||||||||
| \n \u00a0 | \n Cost or | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n ||||
Marketable equity securities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Equity securities | \n \u00a0 | \n $ | \n 36,121 | \n \u00a0 | \n \u00a0 | \n $ | \n 6,838 | \n \u00a0 | \n \u00a0 | \n $ | \n (8,261 | \n ) | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n
Total marketable securities | \n \u00a0 | \n $ | \n 36,121 | \n \u00a0 | \n \u00a0 | \n $ | \n 6,838 | \n \u00a0 | \n \u00a0 | \n $ | \n (8,261 | \n ) | \n \u00a0 | \n $ | \n 34,698 | \n \u00a0 | \n
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n |||||||||||||
| \n \u00a0 | \n Cost or | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n ||||
Marketable equity securities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Equity securities | \n \u00a0 | \n $ | \n 47,087 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,365 | \n \u00a0 | \n \u00a0 | \n $ | \n (10,284 | \n ) | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Total marketable securities | \n \u00a0 | \n $ | \n 47,087 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,365 | \n \u00a0 | \n \u00a0 | \n $ | \n (10,284 | \n ) | \n \u00a0 | \n $ | \n 42,168 | \n \u00a0 | \n
Immersion\u2019s derivative instruments consisted of call and put options sold at their fair value as of the balance sheet date. These derivative instruments are reported as Other current liabilities on the Company\u2019s Condensed Consolidated Balance Sheets as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||||||
| \n \u00a0 | \n Cost | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n |||
Derivative instruments | \n \u00a0 | \n $ | \n 21,365 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,309 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
| \n \u00a0 | \n $ | \n 21,365 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,309 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n |||||||||
| \n \u00a0 | \n Cost | \n \u00a0 | \n \u00a0 | \n Unrealized | \n \u00a0 | \n \u00a0 | \n Fair Value | \n \u00a0 | \n |||
Derivative instruments | \n \u00a0 | \n $ | \n 10,690 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,185 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
| \n \u00a0 | \n $ | \n 10,690 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,185 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
The following summarizes the realized and unrealized gains and losses from Immersion\u2019s equity securities and derivative instruments and realized gains and losses from our marketable-debt securities for the following periods (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Net unrealized gains recognized on marketable equity securities | \n $ | \n 3,496 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,243 | \n \u00a0 | \n
Net realized gains recognized on marketable equity securities | \n \u00a0 | \n 3,623 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 960 | \n \u00a0 | \n
Net unrealized gains (losses) recognized on derivative instruments | \n \u00a0 | \n (124 | \n ) | \n \u00a0 | \n \u00a0 | \n 2,577 | \n \u00a0 | \n
Net realized gains recognized on derivative instruments | \n \u00a0 | \n 6,768 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 1,205 | \n \u00a0 | \n
Total net gains recognized in interest income and other income (expense), net | \n $ | \n 13,763 | \n \u00a0 | \n \u00a0 | \n $ | \n 5,985 | \n \u00a0 | \n
Financial instruments measured at fair value on a recurring basis as of July 31, 2026 and April 30, 2026 are classified based on the valuation technique in the table below (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Fair Value Measurements Using | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Quoted Prices | \n \u00a0 | \n \u00a0 | \n Significant | \n \u00a0 | \n \u00a0 | \n Significant | \n \u00a0 | \n \u00a0 | \n Total | \n \u00a0 | \n ||||
Assets: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Money Market funds (within cash and cash equivalents) | \n \u00a0 | \n $ | \n 141,249 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 141,249 | \n \u00a0 | \n
Equity securities | \n \u00a0 | \n \u00a0 | \n 34,698 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 34,698 | \n \u00a0 | \n
Total assets at fair value | \n \u00a0 | \n $ | \n 175,947 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 175,947 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Liabilities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Derivative instruments | \n \u00a0 | \n $ | \n 9,076 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,598 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 22,674 | \n \u00a0 | \n
Total liabilities at fair value | \n \u00a0 | \n $ | \n 9,076 | \n \u00a0 | \n \u00a0 | \n $ | \n 13,598 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 22,674 | \n \u00a0 | \n
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Fair Value Measurements Using | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||||||||
| \n \u00a0 | \n Quoted Prices | \n \u00a0 | \n \u00a0 | \n Significant Other Observable Inputs | \n \u00a0 | \n \u00a0 | \n Significant Unobservable Inputs | \n \u00a0 | \n \u00a0 | \n Total | \n \u00a0 | \n ||||
Assets: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Money Market funds (within cash and cash equivalents) | \n \u00a0 | \n $ | \n 109,631 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 109,631 | \n \u00a0 | \n
Equity securities | \n \u00a0 | \n \u00a0 | \n 42,168 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 42,168 | \n \u00a0 | \n
Total assets at fair value | \n \u00a0 | \n $ | \n 151,799 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 151,799 | \n \u00a0 | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Liabilities | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||||
Derivative instruments | \n \u00a0 | \n $ | \n 2,166 | \n \u00a0 | \n \u00a0 | \n $ | \n 9,709 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
Total liabilities at fair value | \n \u00a0 | \n $ | \n 2,166 | \n \u00a0 | \n \u00a0 | \n $ | \n 9,709 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n \u00a0 | \n $ | \n 11,875 | \n \u00a0 | \n
NOTE 6. LEASES
Immersion
For the three months ended July 31, 2026 and 2025, Immersion\u2019s leases and related activity were not material.
\u00a0
Barnes & Noble Education
The following table summarizes additional information related to Barnes & Noble Education\u2019s operating leases (in thousands, except for lease term and discount rate):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Operating lease cost | \n \u00a0 | \n $ | \n 14,191 | \n \u00a0 | \n \u00a0 | \n $ | \n 17,579 | \n \u00a0 | \n
Variable lease payments | \n \u00a0 | \n \u00a0 | \n 17,650 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 20,912 | \n \u00a0 | \n
Total lease cost | \n \u00a0 | \n $ | \n 31,841 | \n \u00a0 | \n \u00a0 | \n $ | \n 38,491 | \n \u00a0 | \n
\u00a0
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n July 31, 2025 | \n \u00a0 | \n ||
Cash paid for amounts included in the measurement of lease liabilities | \n \u00a0 | \n $ | \n 13,225 | \n \u00a0 | \n \u00a0 | \n $ | \n 14,199 | \n \u00a0 | \n
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | \n \u00a0 | \n $ | \n 14,680 | \n \u00a0 | \n \u00a0 | \n $ | \n 24,884 | \n \u00a0 | \n
Weighted-average remaining lease term (in years) | \n \u00a0 | \n \u00a0 | \n 4.3 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 4.7 | \n \u00a0 | \n
Weighted-average discount rate | \n \u00a0 | \n \u00a0 | \n 6.6 | \n % | \n \u00a0 | \n \u00a0 | \n 6.7 | \n % | \n
The following table summarizes additional information related to Barnes & Noble Education\u2019s operating leases (in thousands, except for lease term and discount rate):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Operating lease cost | \n \u00a0 | \n $ | \n 14,191 | \n \u00a0 | \n \u00a0 | \n $ | \n 17,579 | \n \u00a0 | \n
Variable lease payments | \n \u00a0 | \n \u00a0 | \n 17,650 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 20,912 | \n \u00a0 | \n
Total lease cost | \n \u00a0 | \n $ | \n 31,841 | \n \u00a0 | \n \u00a0 | \n $ | \n 38,491 | \n \u00a0 | \n
\u00a0
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n July 31, 2025 | \n \u00a0 | \n ||
Cash paid for amounts included in the measurement of lease liabilities | \n \u00a0 | \n $ | \n 13,225 | \n \u00a0 | \n \u00a0 | \n $ | \n 14,199 | \n \u00a0 | \n
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | \n \u00a0 | \n $ | \n 14,680 | \n \u00a0 | \n \u00a0 | \n $ | \n 24,884 | \n \u00a0 | \n
Weighted-average remaining lease term (in years) | \n \u00a0 | \n \u00a0 | \n 4.3 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 4.7 | \n \u00a0 | \n
Weighted-average discount rate | \n \u00a0 | \n \u00a0 | \n 6.6 | \n % | \n \u00a0 | \n \u00a0 | \n 6.7 | \n % | \n
NOTE 7. GOODWILL AND INTANGIBLE ASSETS
Goodwill
The Company recognized $69.2 million in goodwill as the result of the business combination with Barnes & Noble Education on June 10, 2024. See Note 3. Business Combination in the Company\u2019s Annual Report on Form 10-K for the fiscal year ended April 30, 2026 for additional information. The carrying value of goodwill was $69.2 million as of July 31, 2026 and April 30, 2026. The Company did not record any goodwill impairment losses during the three months ended July 31, 2026, and 2025.
Intangible Assets, net
The following is a summary of intangible assets, excluding goodwill, recorded as Intangible assets, net on the Company\u2019s Condensed Consolidated Balance Sheets as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n July 31, 2026 | \n \u00a0 | \n ||||||||||
| \n Gross Carrying | \n \u00a0 | \n Accumulated | \n \u00a0 | \n Net Carrying | \n \u00a0 | \n Weighted-Average | \n \u00a0 | \n ||||
Trade name | \n $ | \n 45,000 | \n \u00a0 | \n N/A | \n \u00a0 | \n $ | \n 45,000 | \n \u00a0 | \n Indefinite | \n \u00a0 | \n ||
Customer relationships | \n \u00a0 | \n 50,000 | \n \u00a0 | \n \u00a0 | \n (8,229 | \n ) | \n \u00a0 | \n 41,771 | \n \u00a0 | \n \u00a0 | \n 11.0 | \n \u00a0 | \n
Total | \n $ | \n 95,000 | \n \u00a0 | \n $ | \n (8,229 | \n ) | \n $ | \n 86,771 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n
\u00a0
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n April 30, 2026 | \n \u00a0 | \n ||||||||||
| \n Gross Carrying | \n \u00a0 | \n Accumulated | \n \u00a0 | \n Net Carrying | \n \u00a0 | \n Weighted-Average | \n \u00a0 | \n ||||
Trade name | \n $ | \n 45,000 | \n \u00a0 | \n N/A | \n \u00a0 | \n $ | \n 45,000 | \n \u00a0 | \n Indefinite | \n \u00a0 | \n ||
Customer relationships | \n \u00a0 | \n 50,000 | \n \u00a0 | \n \u00a0 | \n (7,267 | \n ) | \n \u00a0 | \n 42,733 | \n \u00a0 | \n \u00a0 | \n 11.2 | \n \u00a0 | \n
Total | \n $ | \n 95,000 | \n \u00a0 | \n $ | \n (7,267 | \n ) | \n $ | \n 87,733 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n
\u00a0
Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives. Trade name is determined to have an indefinite useful life and is not subject to amortization.
Amortization expense was $1.0 million for the three months ended July 31, 2026, and 2025, respectively.
Estimated amortization expense of the intangible assets to be recognized by the Company is as follows (in thousands):
\n| \n | \n | \n | \n | \n |
Year ended April 30, | \n \u00a0 | \n Amount | \n \u00a0 | \n |
Remainder of 2027 | \n \u00a0 | \n $ | \n 2,884 | \n \u00a0 | \n
2028 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2029 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2030 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2031 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
Thereafter | \n \u00a0 | \n \u00a0 | \n 23,503 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 41,771 | \n \u00a0 | \n
The following is a summary of intangible assets, excluding goodwill, recorded as Intangible assets, net on the Company\u2019s Condensed Consolidated Balance Sheets as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n July 31, 2026 | \n \u00a0 | \n ||||||||||
| \n Gross Carrying | \n \u00a0 | \n Accumulated | \n \u00a0 | \n Net Carrying | \n \u00a0 | \n Weighted-Average | \n \u00a0 | \n ||||
Trade name | \n $ | \n 45,000 | \n \u00a0 | \n N/A | \n \u00a0 | \n $ | \n 45,000 | \n \u00a0 | \n Indefinite | \n \u00a0 | \n ||
Customer relationships | \n \u00a0 | \n 50,000 | \n \u00a0 | \n \u00a0 | \n (8,229 | \n ) | \n \u00a0 | \n 41,771 | \n \u00a0 | \n \u00a0 | \n 11.0 | \n \u00a0 | \n
Total | \n $ | \n 95,000 | \n \u00a0 | \n $ | \n (8,229 | \n ) | \n $ | \n 86,771 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n
\u00a0
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n April 30, 2026 | \n \u00a0 | \n ||||||||||
| \n Gross Carrying | \n \u00a0 | \n Accumulated | \n \u00a0 | \n Net Carrying | \n \u00a0 | \n Weighted-Average | \n \u00a0 | \n ||||
Trade name | \n $ | \n 45,000 | \n \u00a0 | \n N/A | \n \u00a0 | \n $ | \n 45,000 | \n \u00a0 | \n Indefinite | \n \u00a0 | \n ||
Customer relationships | \n \u00a0 | \n 50,000 | \n \u00a0 | \n \u00a0 | \n (7,267 | \n ) | \n \u00a0 | \n 42,733 | \n \u00a0 | \n \u00a0 | \n 11.2 | \n \u00a0 | \n
Total | \n $ | \n 95,000 | \n \u00a0 | \n $ | \n (7,267 | \n ) | \n $ | \n 87,733 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n
Estimated amortization expense of the intangible assets to be recognized by the Company is as follows (in thousands):
\n| \n | \n | \n | \n | \n |
Year ended April 30, | \n \u00a0 | \n Amount | \n \u00a0 | \n |
Remainder of 2027 | \n \u00a0 | \n $ | \n 2,884 | \n \u00a0 | \n
2028 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2029 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2030 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
2031 | \n \u00a0 | \n \u00a0 | \n 3,846 | \n \u00a0 | \n
Thereafter | \n \u00a0 | \n \u00a0 | \n 23,503 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 41,771 | \n \u00a0 | \n
NOTE 8. DEBT
The following is a summary of Barnes & Noble Education\u2019s outstanding borrowing as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n As of | \n \u00a0 | \n |||||
| \n \u00a0 | \n Maturity Date | \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n ||
Total debt - Barnes & Noble Education credit facility | \n \u00a0 | \n June 9, 2028 | \n \u00a0 | \n $ | \n 123,500 | \n \u00a0 | \n \u00a0 | \n $ | \n 71,000 | \n \u00a0 | \n
Balance sheet classification: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Long-term borrowings | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n $ | \n 123,500 | \n \u00a0 | \n \u00a0 | \n $ | \n 71,000 | \n \u00a0 | \n
\u00a0
In connection with the delayed filing of Barnes & Noble Education Annual Report on Form 10-K for fiscal 2025 and the Quarterly Reports on Form 10-Q for the first and second quarters of fiscal 2026, Barnes & Noble Education entered into a series of limited consent and waiver agreements with the lenders under its asset-based revolving credit facility (the \u201cCredit Facility\u201d) to extend certain financial reporting deadlines. These waivers related solely to the timing of the Barnes & Noble Education\u2019s filings and did not arise from noncompliance with any financial covenants.
\u00a0
On August 8, 2025, Barnes & Noble Education and the administrative agent entered into a limited consent and waiver providing a 75-day extension of the applicable reporting deadlines to October 22, 2025, in exchange for a fee equal to 0.10% of the aggregate revolving commitments. On October 21, 2025, Barnes & Noble Education exercised an additional 45-day extension option under the waiver, extending the reporting deadline to December 6, 2025, in exchange for an additional fee equal to 0.10% of the revolving commitments. On December 5, 2025, Barnes & Noble Education entered into a Second Limited Consent and Waiver, further extending the reporting deadlines to January 20, 2026, in exchange for an additional fee equal to 0.10% of each consenting lender\u2019s revolving commitment.
\u00a0
During the applicable extension periods, Barnes & Noble Education was subject to certain customary conditions, including enhanced reporting requirements, periodic update calls with lenders, and a minimum excess availability requirement of $30 million. Failure to comply with these conditions would have constituted an event of default.
\u00a0
The Credit Facility provides for aggregate revolving commitments of up to $325 million and matures on June 9, 2028. Barnes & Noble Education has interest-only obligations under the Credit Facility until maturity, at which time all outstanding principal is due and payable. Interest accrues, at Barnes & Noble Education's election, either (i) at a rate based on the Secured Overnight Financing Rate, subject to a floor of 2.50%, plus an applicable margin of 3.50%, or (ii) at an alternate base rate, subject to a floor of 3.50%, plus an applicable margin of 2.50%. The applicable margins may be reduced by 0.25% upon achievement of certain financial performance thresholds. The Credit Facility contains customary negative covenants, as well as financial maintenance covenants including a minimum Availability requirement, a minimum Consolidated EBITDA requirement, and a minimum Consolidated Fixed Charge Coverage Ratio of not less than 1.10 to 1.00. The Credit Facility is secured by substantially all of the inventory, accounts receivable, and related assets of the borrower. This is considered an all-assets lien (inclusive of proceeds from tax refunds payable to Barnes & Noble Education and a pledge of equity from subsidiaries, exclusive of real estate), subject to customary exclusions.
As of July 31, 2026, Barnes & Noble Education remained in compliance with all covenants under the A&R Credit Agreement.
\u00a0
Interest
\u00a0
The following table disaggregates interest expense, net (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Interest Incurred | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Credit Facility | \n \u00a0 | \n $ | \n 1,821 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,839 | \n \u00a0 | \n
Total Interest Incurred | \n \u00a0 | \n $ | \n 1,821 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,839 | \n \u00a0 | \n
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Interest income | \n \u00a0 | \n $ | \n (19 | \n ) | \n \u00a0 | \n $ | \n (10 | \n ) | \n
Total Interest Expense, net | \n \u00a0 | \n $ | \n 1,802 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,829 | \n \u00a0 | \n
The following is a summary of Barnes & Noble Education\u2019s outstanding borrowing as of July 31, 2026 and April 30, 2026 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n As of | \n \u00a0 | \n |||||
| \n \u00a0 | \n Maturity Date | \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n \u00a0 | \n April 30, 2026 | \n \u00a0 | \n ||
Total debt - Barnes & Noble Education credit facility | \n \u00a0 | \n June 9, 2028 | \n \u00a0 | \n $ | \n 123,500 | \n \u00a0 | \n \u00a0 | \n $ | \n 71,000 | \n \u00a0 | \n
Balance sheet classification: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Long-term borrowings | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n $ | \n 123,500 | \n \u00a0 | \n \u00a0 | \n $ | \n 71,000 | \n \u00a0 | \n
The following table disaggregates interest expense, net (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Interest Incurred | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Credit Facility | \n \u00a0 | \n $ | \n 1,821 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,839 | \n \u00a0 | \n
Total Interest Incurred | \n \u00a0 | \n $ | \n 1,821 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,839 | \n \u00a0 | \n
\u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Interest income | \n \u00a0 | \n $ | \n (19 | \n ) | \n \u00a0 | \n $ | \n (10 | \n ) | \n
Total Interest Expense, net | \n \u00a0 | \n $ | \n 1,802 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,829 | \n \u00a0 | \n
NOTE 9. PARTICIPATION INTEREST PURCHASE AGREEMENT
During fiscal year 2026, Barnes & Noble Education was party to a Participation Interest Purchase Agreement (the \u201cParticipation Agreement\u201d) with Jefferies Leveraged Credit Products LLC (\u201cJefferies\u201d), under which Jefferies had paid Barnes & Noble Education $12.6 million in exchange for a participation interest in proceeds from a specified litigation claim related to the Visa and Mastercard interchange litigation (the \u201cInterchange Litigation\u201d). The Participation Agreement was non-recourse to Barnes & Noble Education, and Jefferies' entitlement to payment was limited to litigation proceeds, if any.
In February 2026, the Interchange Litigation was resolved through settlement, and all proceeds attributable to the Barnes & Noble Education's claims were distributed directly to Jefferies and its assignees. Barnes & Noble Education received no cash proceeds. The related deferred income balance of $12.6 million was recognized in earnings during the fourth quarter of fiscal year 2026 within Other income (expense), net, and the Barnes & Noble Education's obligations under the Agreement were fully discharged. No balance remains as of July 31, 2026, and there was no activity related to this arrangement during the current period.
"}]},{"name":"rpt:f-700","factDimensions":{"xbrl:concept":"immr:ProceedsFromExchangeOfParticipationInterestForLitigationClaim","xbrl:period":"2025-05-01T00:00:00/2026-05-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"12600000","decimals":-5}]},{"name":"rpt:f-701","factDimensions":{"xbrl:concept":"us-gaap:DeferredIncome","xbrl:period":"2026-05-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"iso4217:USD"},"factValues":[{"value":"12600000","decimals":-5}]},{"name":"rpt:f-702","factDimensions":{"xbrl:concept":"us-gaap:DeferredIncome","xbrl:period":"2026-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"iso4217:USD","us-gaap:TypeOfArrangementAxis":"immr:ParticipationInterestPurchaseAgreementMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-703","factDimensions":{"xbrl:concept":"us-gaap:DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"NOTE 10. STOCK-BASED COMPENSATION
Immersion
The following summarizes the Company\u2019s stock-based compensation expense related to all of Immersion\u2019s stock-based awards for the three months ended July 31, 2026 and 2025 (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
RSUs, RSAs and PSUs | \n \u00a0 | \n \u00a0 | \n 954 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 1,998 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
Selling and administrative expenses | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
\u00a0
The total unrecognized compensation cost related to unvested awards as of July 31, 2026, was $1.9 million and is expected to be recognized over an estimated weighted-average period of approximately 1.1 years.
Barnes & Noble Education
The following summarizes the total stock-based compensation expense for options, RSAs, RSUs, and PSUs for the three months ended July 31, 2026 and 2025 (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Stock options | \n \u00a0 | \n $ | \n 3 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n
RSUs, RSAs and PSUs | \n \u00a0 | \n \u00a0 | \n 1,081 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 2,480 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
Selling and administrative expenses | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
The total unrecognized compensation cost related to unvested awards as of July 31, 2026 was $4.2 million and is expected to be recognized over an estimated weighted-average period of approximately 1.14 years.
"}]},{"name":"rpt:f-704","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfEmployeeServiceShareBasedCompensationAllocationOfRecognizedPeriodCostsTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"The following summarizes the Company\u2019s stock-based compensation expense related to all of Immersion\u2019s stock-based awards for the three months ended July 31, 2026 and 2025 (in thousands):\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
RSUs, RSAs and PSUs | \n \u00a0 | \n \u00a0 | \n 954 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 1,998 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
Selling and administrative expenses | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 954 | \n \u00a0 | \n \u00a0 | \n $ | \n 1,998 | \n \u00a0 | \n
The following summarizes the total stock-based compensation expense for options, RSAs, RSUs, and PSUs for the three months ended July 31, 2026 and 2025 (in thousands):
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Stock options | \n \u00a0 | \n $ | \n 3 | \n \u00a0 | \n \u00a0 | \n $ | \n \u2014 | \n \u00a0 | \n
RSUs, RSAs and PSUs | \n \u00a0 | \n \u00a0 | \n 1,081 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 2,480 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
Selling and administrative expenses | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
Total | \n \u00a0 | \n $ | \n 1,084 | \n \u00a0 | \n \u00a0 | \n $ | \n 2,480 | \n \u00a0 | \n
NOTE 11. EMPLOYEE BENEFIT PLAN
\u00a0
Barnes & Noble Education sponsors a defined contribution plan for the benefit of substantially all of the employees. Barnes & Noble Education is responsible for funding the employer contributions directly. The 401(k) retirement savings plan provides an annual end of plan year discretionary match, in lieu of the current pay period match. Total employee benefit expense for these plans was $0 for both the three months ended July 31, 2026 and 2025, respectively.
"}]},{"name":"rpt:f-729","factDimensions":{"xbrl:concept":"us-gaap:DefinedContributionPlanCostRecognized","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"iso4217:USD","srt:ConsolidatedEntitiesAxis":"immr:BarnesAndNobleEducationIncMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-730","factDimensions":{"xbrl:concept":"us-gaap:DefinedContributionPlanCostRecognized","xbrl:period":"2025-05-01T00:00:00/2025-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"iso4217:USD","srt:ConsolidatedEntitiesAxis":"immr:BarnesAndNobleEducationIncMember"},"factValues":[{"value":"0"}]},{"name":"rpt:f-731","factDimensions":{"xbrl:concept":"us-gaap:StockholdersEquityNoteDisclosureTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"NOTE 12. STOCKHOLDERS\u2019 EQUITY
Immersion Stock Repurchase Program
During the three months ended July 31, 2026, the Company did not repurchase shares of our common stock under its stock repurchase program. As of July 31, 2026, the Company had $39.3 million available for repurchase under the December 2022 Stock Repurchase Program.
Barnes & Noble Education Stock Repurchase Program
During the three months ended July 31, 2026, Barnes & Noble Education did not purchase shares under its stock repurchase program. As of July 31, 2026, approximately $26.7 million remains available under the Barnes & Noble Education stock repurchase program.
\u00a0
\u00a0
Immersion Dividends Declared and Dividend Payments
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
Announcement | \n \u00a0 | \n Dividend | \n \u00a0 | \n Amount | \n \u00a0 | \n \u00a0 | \n Record | \n \u00a0 | \n Payment | \n |
May 8, 2024 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n $ | \n 0.045 | \n \u00a0 | \n \u00a0 | \n July 8, 2024 | \n \u00a0 | \n July 26, 2024 | \n
August 20, 2024 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n October 4, 2024 | \n \u00a0 | \n October 18, 2024 | \n
November 8, 2024 | \n \u00a0 | \n Special | \n \u00a0 | \n \u00a0 | \n 0.245 | \n \u00a0 | \n \u00a0 | \n January 10, 2025 | \n \u00a0 | \n January 24, 2025 | \n
March 10, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n April 14, 2025 | \n \u00a0 | \n April 25, 2025 | \n
July 8, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n July 23, 2025 | \n \u00a0 | \n August 8, 2025 | \n
October 8, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n October 20, 2025 | \n \u00a0 | \n October 31, 2025 | \n
December 8, 2025 | \n \u00a0 | \n Quarterly (increased) | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n January 19, 2026 | \n \u00a0 | \n January 30, 2026 | \n
March 27, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n April 20, 2026 | \n \u00a0 | \n May 1, 2026 | \n
July 2, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n July 20, 2026 | \n \u00a0 | \n July 31, 2026 | \n
September 11, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n October 16, 2026 | \n \u00a0 | \n October 30, 2026 | \n
During the three months ended July 31, 2026, the Company paid $2.5 million in dividends and during the three months ended July 31, 2025, the Company paid no dividends.
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\n| \n | \n | \n | \n | \n | \n | \n | \n | \n | \n | \n |
Announcement | \n \u00a0 | \n Dividend | \n \u00a0 | \n Amount | \n \u00a0 | \n \u00a0 | \n Record | \n \u00a0 | \n Payment | \n |
May 8, 2024 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n $ | \n 0.045 | \n \u00a0 | \n \u00a0 | \n July 8, 2024 | \n \u00a0 | \n July 26, 2024 | \n
August 20, 2024 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n October 4, 2024 | \n \u00a0 | \n October 18, 2024 | \n
November 8, 2024 | \n \u00a0 | \n Special | \n \u00a0 | \n \u00a0 | \n 0.245 | \n \u00a0 | \n \u00a0 | \n January 10, 2025 | \n \u00a0 | \n January 24, 2025 | \n
March 10, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n April 14, 2025 | \n \u00a0 | \n April 25, 2025 | \n
July 8, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n July 23, 2025 | \n \u00a0 | \n August 8, 2025 | \n
October 8, 2025 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.045 | \n \u00a0 | \n \u00a0 | \n October 20, 2025 | \n \u00a0 | \n October 31, 2025 | \n
December 8, 2025 | \n \u00a0 | \n Quarterly (increased) | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n January 19, 2026 | \n \u00a0 | \n January 30, 2026 | \n
March 27, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n April 20, 2026 | \n \u00a0 | \n May 1, 2026 | \n
July 2, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n July 20, 2026 | \n \u00a0 | \n July 31, 2026 | \n
September 11, 2026 | \n \u00a0 | \n Quarterly | \n \u00a0 | \n \u00a0 | \n 0.075 | \n \u00a0 | \n \u00a0 | \n October 16, 2026 | \n \u00a0 | \n October 30, 2026 | \n
NOTE 13. NONCONTROLLING INTEREST
Immersion is the primary beneficiary of Barnes & Noble Education and as a result, consolidates the financial results of Barnes & Noble Education and reports a noncontrolling interest representing BNED Common Stock held by other Barnes & Noble Education\u2019s stockholders. Changes in Immersion\u2019s ownership interest in Barnes & Noble Education while Immersion retains its controlling interest in Barnes & Noble Education are accounted for as equity transactions.
The following table summarizes the ownership interest in Barnes & Noble Education:
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||
| \n \u00a0 | \n Shares | \n \u00a0 | \n \u00a0 | \n % of | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n 11,208,746 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32.3 | \n % | \n
Noncontrolling Interest | \n \u00a0 | \n \u00a0 | \n 23,477,064 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 67.7 | \n % | \n
Total BNED Common Stock outstanding | \n \u00a0 | \n \u00a0 | \n 34,685,810 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 100.0 | \n % | \n
\u00a0
The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to the non-controlling interest holders and were as follows:
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Noncontrolling interest's weighted-average ownership percentage | \n \u00a0 | \n \u00a0 | \n 67.5 | \n % | \n \u00a0 | \n \u00a0 | \n 67.1 | \n % | \n
\u00a0
The following table summarizes the effect of changes in ownership of Barnes & Noble Education on the Company\u2019s equity for the periods presented (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Net Income (loss) attributable to Immersion stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Transfers from (to) noncontrolling interest: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Increase (decrease) in additional paid-in capital as a result of common stock issuances pursuant to vesting of equity awards, and sales of common stock | \n \u00a0 | \n (1,695 | \n ) | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Total effect of changes in ownership interest on equity attributable to Immersion stockholders | \n $ | \n 3,181 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
The following table summarizes the ownership interest in Barnes & Noble Education:
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
| \n \u00a0 | \n July 31, 2026 | \n \u00a0 | \n |||||
| \n \u00a0 | \n Shares | \n \u00a0 | \n \u00a0 | \n % of | \n \u00a0 | \n ||
Immersion | \n \u00a0 | \n \u00a0 | \n 11,208,746 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32.3 | \n % | \n
Noncontrolling Interest | \n \u00a0 | \n \u00a0 | \n 23,477,064 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 67.7 | \n % | \n
Total BNED Common Stock outstanding | \n \u00a0 | \n \u00a0 | \n 34,685,810 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 100.0 | \n % | \n
The weighted average ownership percentages for the applicable reporting periods are used to attribute net income to the non-controlling interest holders and were as follows:
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n \u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n \u00a0 | \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Noncontrolling interest's weighted-average ownership percentage | \n \u00a0 | \n \u00a0 | \n 67.5 | \n % | \n \u00a0 | \n \u00a0 | \n 67.1 | \n % | \n
The following table summarizes the effect of changes in ownership of Barnes & Noble Education on the Company\u2019s equity for the periods presented (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
\u00a0 | \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Net Income (loss) attributable to Immersion stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Transfers from (to) noncontrolling interest: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Increase (decrease) in additional paid-in capital as a result of common stock issuances pursuant to vesting of equity awards, and sales of common stock | \n \u00a0 | \n (1,695 | \n ) | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Total effect of changes in ownership interest on equity attributable to Immersion stockholders | \n $ | \n 3,181 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
NOTE 14. INCOME TAXES
Income tax benefit (expense) for the three months ended July 31, 2026 and 2025, consisted of the following (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Loss Before Income Taxes | \n $ | \n (6,685 | \n ) | \n \u00a0 | \n $ | \n (21,443 | \n ) | \n
Income tax benefit | \n \u00a0 | \n 2,130 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 7,727 | \n \u00a0 | \n
Effective tax rate | \n \u00a0 | \n 31.9 | \n % | \n \u00a0 | \n \u00a0 | \n 36.0 | \n % | \n
\u00a0
Immersion
Immersion recorded an income tax benefit of $2.1 million on a pre-tax loss of $6.7 million for the three months ended July 31, 2026, resulting in an effective tax rate of 31.9%, compared to an income tax benefit of $7.7 million on a pre-tax loss of $21.4 million, resulting in an effective tax rate of 36.0%, for the three months ended July 31, 2025. The effective tax rate for the three months ended July 31, 2026 differed from the U.S. federal statutory rate primarily due to foreign tax rate differentials, uncertain tax positions, return-to-provision adjustments, and other discrete tax items recognized during the period. The year-over-year change in the effective tax rate was primarily attributable to changes in the geographic mix of earnings and discrete tax items recognized in the current and prior-year periods.
Barnes & Noble Education
Barnes & Noble Education recorded an income tax benefit of $8.2 million on pre-tax loss of $22.1 million during the three months ended July 31, 2026, which represented an effective income tax rate of 36.9% and an income tax benefit of $8.6 million on pre-tax loss of $26.9 million during the three months ended July 31, 2025, which represented an effective income tax rate of 32.1%.
In assessing the realizability of the deferred tax assets, management considered whether it is more likely than not that some or all of the deferred tax assets would be realized. As of July 31, 2026, Barnes & Noble Education determined that it was more likely than not that it would not realize all deferred tax assets and its tax rate for the current fiscal year reflects this determination. Barnes & Noble Education will continue to evaluate this position.
Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the \u201cCode\u201d), if a corporation undergoes an \u201cownership change\u201d (generally defined as a cumulative change in our ownership by \u201c5-percent shareholders\u201d that exceeds 50 percentage points over a rolling three-year period), Barnes & Noble Education\u2019s ability to use its pre-change net operating losses and certain other pre-change tax attributes to offset its post-change income and taxes may be limited. Similar rules may apply under state tax laws. As a result of the Rights Offering, Backstop Commitment, Private Investment, and Term Loan Debt Conversion completed on June 10, 2024 (as defined in the Company's Annual Report on Form 10-K for the fiscal year ended April 30, 2026), Barnes & Noble Education may have experienced an ownership change as defined by Sections 382 and 383. Barnes & Noble Education conducted a study to determine if an ownership change occurred. It was determined that an ownership change occurred under Section 382 and 383 of the Code, and the corresponding annual limitations materially impact the utilization of Barnes & Noble Education\u2019s tax attributes including its $195.8 million NOL carryforwards, $44.3 million disallowed interest expense carryforwards, and $1.1 million tax credit carryforwards as of May 2, 2026. Barnes & Noble Education anticipates that
$29.7 million of these tax attributes will be made available during fiscal year 2027.
"}]},{"name":"rpt:f-797","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"Income tax benefit (expense) for the three months ended July 31, 2026 and 2025, consisted of the following (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Loss Before Income Taxes | \n $ | \n (6,685 | \n ) | \n \u00a0 | \n $ | \n (21,443 | \n ) | \n
Income tax benefit | \n \u00a0 | \n 2,130 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 7,727 | \n \u00a0 | \n
Effective tax rate | \n \u00a0 | \n 31.9 | \n % | \n \u00a0 | \n \u00a0 | \n 36.0 | \n % | \n
NOTE 15. EARNINGS PER SHARE
We use the two-class method of computing EPS, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared. Under the two-class method, basic earnings per share is computed by dividing the income attributable to Immersion stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Potential common stock, computed using the treasury stock method, includes stock options and stock awards.
The following are reconciliations of the denominators used in computing basic and diluted net income per share (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Basic | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Numerator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Net income (loss) attributable to Immersion Stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's basic EPS calculation\u00a0(a) | \n \u00a0 | \n 876 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Net income (loss) attributable to Immersion Stockholders, basic | \n $ | \n 5,752 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Denominator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Weighted-average shares outstanding, basic | \n \u00a0 | \n 33,153 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders per share, basic | \n $ | \n 0.17 | \n \u00a0 | \n \u00a0 | \n $ | \n (0.03 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Diluted | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Numerator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Net income (loss) attributable to Immersion Stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Adjustment for Immersion's portion of Barnes & Noble Education\u2019s EPS to be included in the numerator for Immersion's diluted EPS calculation\u00a0(a) | \n \u00a0 | \n 876 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders, diluted | \n $ | \n 5,752 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Denominator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Weighted-average shares outstanding, basic | \n \u00a0 | \n 33,153 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs | \n \u00a0 | \n 150 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Weighted average shares outstanding, diluted | \n \u00a0 | \n 33,303 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders per share, diluted | \n $ | \n 0.17 | \n \u00a0 | \n \u00a0 | \n $ | \n (0.03 | \n ) | \n
We include PSUs in the calculation of diluted earnings per share if the applicable performance conditions have been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.
For the three months ended July 31, 2025, the Company had outstanding RSU awards of 377 thousand that could potentially dilute earnings per share in the future, but these RSU awards are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive.
"}]},{"name":"rpt:f-821","factDimensions":{"xbrl:concept":"immr:NumberOfCommonClassMethodsUsingEarningPerShare","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811","xbrl:unit":"immr:Number"},"factValues":[{"value":"2"}]},{"name":"rpt:f-822","factDimensions":{"xbrl:concept":"us-gaap:ScheduleOfEarningsPerShareBasicAndDilutedTableTextBlock","xbrl:period":"2026-05-01T00:00:00/2026-08-01T00:00:00","xbrl:entity":"cik:0001058811"},"factValues":[{"value":"The following are reconciliations of the denominators used in computing basic and diluted net income per share (in thousands):
\u00a0
\n| \n | \n | \n | \n | \n | \n | \n | \n |
| \n Three Months Ended July 31, | \n \u00a0 | \n |||||
| \n 2026 | \n \u00a0 | \n \u00a0 | \n 2025 | \n \u00a0 | \n ||
Basic | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Numerator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Net income (loss) attributable to Immersion Stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Adjustment for Immersion's portion of Barnes & Noble Education's EPS to be included in the numerator for Immersion's basic EPS calculation\u00a0(a) | \n \u00a0 | \n 876 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Net income (loss) attributable to Immersion Stockholders, basic | \n $ | \n 5,752 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Denominator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Weighted-average shares outstanding, basic | \n \u00a0 | \n 33,153 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders per share, basic | \n $ | \n 0.17 | \n \u00a0 | \n \u00a0 | \n $ | \n (0.03 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Diluted | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Numerator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Net income (loss) attributable to Immersion Stockholders | \n $ | \n 4,876 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
Adjustment for Immersion's portion of Barnes & Noble Education\u2019s EPS to be included in the numerator for Immersion's diluted EPS calculation\u00a0(a) | \n \u00a0 | \n 876 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders, diluted | \n $ | \n 5,752 | \n \u00a0 | \n \u00a0 | \n $ | \n (930 | \n ) | \n
| \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Denominator: | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n ||
Weighted-average shares outstanding, basic | \n \u00a0 | \n 33,153 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs | \n \u00a0 | \n 150 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n \u2014 | \n \u00a0 | \n
Weighted average shares outstanding, diluted | \n \u00a0 | \n 33,303 | \n \u00a0 | \n \u00a0 | \n \u00a0 | \n 32,615 | \n \u00a0 | \n
Net income (loss) attributable to Immersion stockholders per share, diluted | \n $ | \n 0.17 | \n \u00a0 | \n \u00a0 | \n $ | \n (0.03 | \n ) | \n
NOTE 16. COMMITMENTS AND CONTINGENCIES
We are involved in a variety of claims, suits, investigations and proceedings that arise from time to time in the ordinary course of our business, including actions with respect to contracts, intellectual property, taxation, employment, benefits, personal injuries
and other matters. The results of these proceedings in the ordinary course of business are not expected to have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
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.
Korean Withholding Tax Assessment \u2013 Samsung License
Immersion licenses certain of its patented technologies to Samsung and its affiliates under a license agreement that provides Samsung with the right to manufacture and sell Samsung products worldwide. Under the terms of this agreement, Immersion is obligated to indemnify Samsung for any Korean withholding taxes that may be imposed on royalty payments made by Samsung to Immersion.
In prior years, the Korean tax authorities, through the Suwon Regional Tax Office (\u201cSRTO\u201d), issued assessments to Samsung asserting that royalties paid to Immersion constituted Korean\u2011source royalty income subject to Korean withholding tax. Samsung contested these assessments, and the most recent matters were the subject of an administrative appeal before the Regional Tax Office Appeal (\u201cRATI\u201d).
On November 19, 2025, RATI issued a decision in favor of the SRTO, upholding the withholding tax assessments on royalties paid to Immersion. As a result of this decision, Samsung was required to remit the assessed withholding taxes to the Korean tax authorities by the end of December 2025. In accordance with its indemnification obligation under the license agreement, Immersion reimbursed Samsung in December 2025 for the full amount of the withholding taxes paid.
The total amount reimbursed by Immersion, including related surcharges and local withholding components, was approximately $9.7 million, based on the applicable KRW/USD exchange rate at the time of settlement. The Company recognized this amount in the Company\u2019s Consolidated Financial Statements as an income tax charge and a corresponding cash payment for the fiscal year ended April 30, 2026.
See Note 14. Income Taxes for additional information.
LGE Korean Withholding Tax Matter
On October 16, 2017, we received a letter from LGE 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's royalty payments to Immersion Software Ireland Limited, 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\u2011term deposits on our Condensed Consolidated Balance Sheets. In the fourth quarter of 2021, we recorded an impairment charge of $0.8 million related to the long\u2011term deposits paid to LGE.
On November 3, 2017, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding its 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' 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 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's 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's decision. The appellate case is in progress at the Seoul High Court and the first and second hearings took place on November 30, 2023, and February 1, 2024, respectively. As of the date of this filing, the next hearing date had not yet been set. The Seoul Administrative Court also issued an additional judgment on July 27, 2022, clarifying the ratio of software versus patent usage, and, as of the date of this filing, the Seoul High Court appeal remains pending.
On April 25, 2023, we received notice from LGE requesting us to reimburse LGE with respect to its 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\u2011term deposits on our Condensed Consolidated Balance Sheets. In the second quarter of 2023, we recorded an impairment charge of $0.3 million related to the long\u2011term deposits paid to LGE.
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, we submitted our rebuttal brief in response thereto. On September 25, 2023, the Korean tax authority submitted an additional response brief, and on November 23, 2023, the Korea Tax Tribunal rendered a decision against LGE, dismissing our claims on the grounds that they are without merit. In response thereto, on behalf of LGE, we filed an appeal with the Korea Administrative Court on December 29, 2023.
On July 25, 2024, the Korea Tax Tribunal rendered a decision against LGE on the related local income tax assessment, and the deadline for the court appeal of the local income tax claim was October 21, 2024. On October 18, 2024, we filed a complaint and a brief with the Korea Administrative Court for the local income tax appeal. This case has been reassigned due to its significance, and the Korean tax authority filed its answer on November 27, 2024. The first hearing date, which was originally scheduled for March 21, 2025, has been set at a later date, as the counsel for the plaintiff submitted an application for hearing date to be set at a later date by obtaining the defendant\u2019s consent.
During the fiscal year ended April 30, 2026, the Company determined that it would discontinue litigation related to certain Korean withholding tax matters involving LGE. Because the recoverability of provisional deposits previously made in connection with those matters depended on successful resolution of the related proceedings, the Company concluded that the remaining carrying amount of such deposits was not recoverable. Accordingly, the Company recorded additional income tax expense of approximately $5.9 million and reduced the carrying amount of the related long-term deposits to zero. The income tax expense was partially offset by the reversal of the related unrecognized tax benefit accrual of $0.3 million.
See Note 14. Income Taxes for additional information.
Immersion Corporation vs. Valve Corporation (\u201cValve\u201d)
On May 15, 2023, the Company filed a complaint against Valve in the United States District Court for the Western District of Washington. The complaint alleges that Valve's 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. The Company is seeking to enjoin Valve from further infringement and to recover a reasonable royalty for such infringement.
The complaint against Valve asserts infringement of the following patents:
Valve responded to the complaint on July 24, 2023, with a motion to dismiss. Valve re\u2011noted its motion, which changed Immersion's response deadline from August 14, 2023, to August 21, 2023. Immersion timely filed its response, and Valve filed its reply on August 25, 2023. The Court heard arguments on Valve\u2019s motion on February 8, 2024. The Court entered a case schedule on November 21, 2023. The case schedule did not include a trial date but set the pretrial conference for May 30, 2025.
On March 14, 2024, Valve filed a motion to stay the district court case pending the PTAB\u2019s decisions on Valve's inter partes review (\u201cIPR\u201d) petitions. Immersion opposed the motion on March 25, 2024, and Valve filed its reply brief on March 29, 2024. The Court granted Valve's motion to stay on April 4, 2024. In connection with that order, the Court struck Valve's motion to dismiss with leave to refile at a later date. The case remains stayed pending resolution of the IPR proceedings.
Valve filed multiple IPRs with the PTAB challenging the validity of the patents asserted in the district court litigation. As of the date of this filing, the status of these proceedings is as follows:
The parties submitted their joint claim construction statement and respective positions on March 29, 2024. The district court case is currently stayed pending the outcome of the IPR proceedings.
We are unable at this time to predict the ultimate outcome of the district court litigation or the related IPR proceedings, the impact of any PTAB decisions and any appeals therefrom, or to reasonably estimate the amount or range of any possible loss or recovery associated with these matters. Accordingly, we have not recorded a liability related to the Valve litigation or the associated IPRs as of July 31, 2026.
Other Matters
From time to time, we receive claims from third parties asserting that our technologies or those of our licensees infringe the other parties' intellectual property rights, and we are also periodically involved in other routine legal matters and contractual disputes incidental to our normal operations. In management's opinion, unless we disclose otherwise, the resolution of such matters will not have a material adverse effect on our consolidated financial condition, results of operations, or liquidity.
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On September 11, 2026, our Board declared a quarterly dividend in the amount of $0.075 per share, payable on October 30, 2026, to stockholders of record on October 16, 2026.
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