Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-38334 | |
Entity Registrant Name | IMMERSION CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3180138 | |
Entity Address, Address Line One | 330 Townsend Street, Suite 234 | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 408 | |
Local Phone Number | 467-1900 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | IMMR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,894,116 | |
Amendment Flag | false | |
Entity Central Index Key | 0001058811 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 54,101 | $ 86,478 |
Short-term investments | 0 | 3,019 |
Accounts and other receivables | 1,789 | 3,385 |
Prepaid expenses and other current assets | 8,791 | 14,078 |
Total current assets | 64,681 | 106,960 |
Property and equipment, net | 252 | 1,226 |
Long-term Deposits | 11,700 | 7,062 |
Other assets | 8,987 | 9,600 |
Total assets | 85,620 | 124,848 |
Current liabilities: | ||
Accounts payable | 474 | 809 |
Accrued compensation | 1,803 | 2,844 |
Other current liabilities | 2,446 | 3,478 |
Deferred revenue | 4,617 | 4,692 |
Total current liabilities | 9,340 | 11,823 |
Long-term deferred revenue | 23,571 | 25,952 |
Other long-term liabilities | 2,979 | 3,316 |
Total liabilities | 35,890 | 41,091 |
Contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock and additional paid-in capital — $0.001 par value; 100,000,000 shares authorized; 39,007,576 and 38,624,784 shares issued, respectively; 26,864,143 and 31,414,328 shares outstanding, respectively | 255,446 | 253,289 |
Accumulated other comprehensive income | 122 | 124 |
Accumulated deficit | (124,105) | (118,565) |
Treasury stock at cost: 12,143,433 and 7,210,456 shares, respectively | (81,733) | (51,091) |
Total stockholders’ equity | 49,730 | 83,757 |
Total liabilities and stockholders’ equity | $ 85,620 | $ 124,848 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 39,007,576 | 38,624,784 |
Common stock, shares outstanding (in shares) | 26,864,143 | 31,414,328 |
Treasury stock, shares (in shares) | 12,143,433 | 7,210,456 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Revenue | $ 5,668 | $ 8,743 | $ 11,925 | $ 13,865 |
Costs and expenses: | ||||
Cost of revenues | 62 | 40 | 106 | 55 |
Sales and marketing | 1,255 | 1,579 | 2,971 | 3,188 |
Research and development | 1,323 | 1,831 | 3,012 | 4,133 |
General and administrative | 4,087 | 14,448 | 11,443 | 27,143 |
Total costs and expenses | 6,727 | 17,898 | 17,532 | 34,519 |
Operating loss | (1,059) | (9,155) | (5,607) | (20,654) |
Interest and other income | 388 | 532 | 160 | 1,130 |
Loss before benefit from (provision for) income taxes | (671) | (8,623) | (5,447) | (19,524) |
Benefit from (provision for) income taxes | (41) | 3 | (93) | (112) |
Net loss | $ (712) | $ (8,620) | $ (5,540) | $ (19,636) |
Basic net loss per share (in dollars per share) | $ (0.03) | $ (0.27) | $ (0.19) | $ (0.63) |
Shares used in calculating basic net loss per share (in shares) | 27,634 | 31,578 | 29,320 | 31,335 |
Diluted net loss per share (in dollars per share) | $ (0.03) | $ (0.27) | $ (0.19) | $ (0.63) |
Shares used in calculating diluted net loss per share (in shares) | 27,634 | 31,578 | 29,320 | 31,335 |
Other comprehensive income (loss) | ||||
Change in unrealized gains (loss) on short-term investments | $ 0 | $ 16 | $ (2) | $ 22 |
Total other comprehensive income (loss) | 0 | 16 | (2) | 22 |
Total comprehensive loss | (712) | (8,604) | (5,542) | (19,614) |
Royalty and license | ||||
Revenues: | ||||
Revenue | 5,593 | 8,668 | 11,775 | 13,715 |
Development, services, and other | ||||
Revenues: | ||||
Revenue | $ 75 | $ 75 | $ 150 | $ 150 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2018 | 37,652,498 | 6,823,147 | |||
Beginning balance at Dec. 31, 2018 | $ 99,660 | $ 246,415 | $ 116 | $ (98,521) | $ (48,350) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (19,636) | (19,636) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 22 | 22 | |||
Issuance of common stock for employee stock purchase (in shares) | 13,479 | ||||
Issuance of common stock for employee stock purchase | 109 | $ 109 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 61,798 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 371 | $ 371 | |||
Release of restricted stock units and awards (in shares) | 760,552 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock-based compensation | 3,184 | $ 3,184 | |||
Ending balance (in shares) at Jun. 30, 2019 | 38,488,327 | 6,823,147 | |||
Ending balance at Jun. 30, 2019 | 83,710 | $ 250,079 | 138 | (118,157) | $ (48,350) |
Beginning balance (in shares) at Mar. 31, 2019 | 38,375,744 | 6,823,147 | |||
Beginning balance at Mar. 31, 2019 | 90,933 | $ 248,698 | 122 | (109,537) | $ (48,350) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (8,620) | (8,620) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 16 | 16 | |||
Exercise of stock options, net of shares withheld for employee taxes (in shares) | 50,027 | ||||
Exercise of stock options, net of shares withheld for employee taxes | 300 | $ 300 | |||
Release of restricted stock units and awards (in shares) | 62,556 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock-based compensation | 1,081 | $ 1,081 | |||
Ending balance (in shares) at Jun. 30, 2019 | 38,488,327 | 6,823,147 | |||
Ending balance at Jun. 30, 2019 | 83,710 | $ 250,079 | 138 | (118,157) | $ (48,350) |
Beginning balance (in shares) at Dec. 31, 2019 | 38,624,784 | 7,210,456 | |||
Beginning balance at Dec. 31, 2019 | 83,757 | $ 253,289 | 124 | (118,565) | $ (51,091) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (5,540) | (5,540) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | (2) | (2) | |||
Repurchased shares (in shares) | 4,932,977 | ||||
Stock repurchases | (30,642) | $ (30,642) | |||
Issuance of common stock for employee stock purchase (in shares) | 10,162 | ||||
Issuance of common stock for employee stock purchase | 63 | $ 63 | |||
Release of restricted stock units and awards (in shares) | 372,630 | ||||
Stock-based compensation | 2,094 | $ 2,094 | |||
Ending balance (in shares) at Jun. 30, 2020 | 39,007,576 | 12,143,433 | |||
Ending balance at Jun. 30, 2020 | 49,730 | $ 255,446 | 122 | (124,105) | $ (81,733) |
Beginning balance (in shares) at Mar. 31, 2020 | 38,824,681 | 9,223,222 | |||
Beginning balance at Mar. 31, 2020 | 67,744 | $ 254,081 | 122 | (123,393) | $ (63,066) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (712) | (712) | |||
Unrealized gain (loss) on available-for-sale securities, net of taxes | 0 | ||||
Repurchased shares (in shares) | 2,920,211 | ||||
Stock repurchases | (18,667) | $ (18,667) | |||
Release of restricted stock units and awards (in shares) | 182,895 | ||||
Release of restricted stock units and awards | 0 | ||||
Stock-based compensation | 1,365 | $ 1,365 | |||
Ending balance (in shares) at Jun. 30, 2020 | 39,007,576 | 12,143,433 | |||
Ending balance at Jun. 30, 2020 | $ 49,730 | $ 255,446 | $ 122 | $ (124,105) | $ (81,733) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows provided by (used in) operating activities: | ||
Net loss | $ (5,540) | $ (19,636) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,446 | 854 |
Stock-based compensation | 2,094 | 3,184 |
Other | 255 | 60 |
Changes in operating assets and liabilities: | ||
Accounts and other receivables | 1,596 | (3,916) |
Prepaid expenses and other current assets | 5,306 | 1,539 |
Long-term deposits | (4,889) | (6,783) |
Other assets | 748 | (4,841) |
Accounts payable | (338) | 3,762 |
Accrued compensation | (1,041) | (2,003) |
Other current liabilities | (1,288) | 1,742 |
Deferred revenue | (2,456) | (2,108) |
Other long-term liabilities | (661) | 4,231 |
Net cash used in operating activities | (4,768) | (23,915) |
Cash flows provided by (used in) investing activities: | ||
Purchases of short-term investments | 0 | (8,930) |
Proceeds from maturities of short-term investments | 3,000 | 14,000 |
Purchases of property and equipment | (30) | (9) |
Net cash provided by investing activities | 2,970 | 5,061 |
Cash flows provided by (used in) financing activities: | ||
Cash paid for purchases of treasury shares | (30,642) | 0 |
Proceeds from issuance of common stock under employee stock purchase plan | 63 | 109 |
Proceeds from stock options exercises | 0 | 371 |
Net cash provided by (used in) financing activities | (30,579) | 480 |
Net decrease in cash and cash equivalents | (32,377) | (18,374) |
Cash and cash equivalents: | ||
Beginning of period | 86,478 | 110,988 |
End of period | 54,101 | 92,614 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 20 | 25 |
Supplemental disclosure of non-cash operating, investing, and financing activities: | ||
Release of restricted stock units and awards under company stock plan | 2,554 | 7,065 |
Leased assets obtained in exchange for new operating lease liabilities | $ 577 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | SIGNIFICANT ACCOUNTING POLICIES Description of Business Immersion Corporation (the "Company", "Immersion", "we" or "us") was incorporated in 1993 in California and reincorporated in Delaware in 1999. We focus on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. We have adopted a business model under which it provides advanced tactile software, related tools, technical assistance designed to help integrate our patented technology into our customers’ products or enhance the functionality of our patented technology to certain customers, and offers licenses to our patented technology to other customers. Impact of COVID-19 In March 2020, the World Health Organization declared the outbreak of COVID-19 a pandemic, which continues to spread throughout the U.S. and the world and has resulted in authorities implementing numerous measures to combat the spread of the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns. The COVID-19 outbreak and related public health measures, including orders to shelter-in-place, travel restrictions and mandated business closures, have adversely affected workforces, organizations, consumers, economies, and financial markets globally, leading to an economic downturn and increased market volatility. Our compliance with these containment measures has impacted our day-to-day operations and could disrupt our business and operations, as well as that of our customers and suppliers for an extended period of time. To support the health and well-being of our employees, customers and communities, we implemented work-from-home and restricted travel policies in the first quarter of 2020, which are expected to remain in place until the end of September 2020. In addition, many of our customers are working remotely, which may delay the timing of some orders due to their and our compliance with frequently changing government-mandated or recommended shelter-in-place orders in jurisdictions in which we, our customers and our suppliers operate. We reported lower estimated royalties revenue in the second quarter of 2020 following the anticipated volume reductions due to delay in shipments as well as decline in general business environment due to the impact of COVID-19. In response to certain anticipated impacts from the COVID-19 pandemic, we have also implemented a series of cost reduction initiatives to further preserve financial flexibility. These actions include: reductions of the base salaries and cash compensation of company executives and board members; cancellation and reduction in current year's executive and employee bonus plans; renegotiated professional services fees from third-party services providers; relocation of certain positions to lower-cost regions; temporarily suspended company matching of our employee retirement savings plan and taking advantage of the broad-based employer relief provided by the governments. In April 2020, the Government of Canada announced the Canada Emergency Wage Subsidy (“CEWS”) for Canadian employers whose businesses were affected by the COVID-19 pandemic. The CEWS provides a subsidy of up to 75% of eligible employees’ employment insurable remuneration, subject to certain criteria. We applied for the CEWS to the extent we met the requirements to receive the subsidy. During the three months ended June 30, 2020, we recorded $0.2 million in government subsidies as a reduction to operating expenses in the Condensed Consolidated Statements of Operations and Comprehensive Loss. Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q and Article 10 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 year ended December 31, 2019 . 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. The results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year. Use of Estimates The preparation of condensed consolidated financial statements and related disclosures requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of income taxes including uncertain tax provisions, and revenue recognition. Actual results may differ materially from those estimates which were made based on the best information known to management at that time. The business and economic uncertainty resulting from the COVID-19 pandemic has made such estimates and assumptions more difficult to calculate. Accordingly, actual results and outcomes may differ from those estimates. Segment Information We develop, license, and support a wide range of software and IP that more fully engage users’ senses 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. We manage these application areas in one operating and reporting segment with only one set of management, development, and administrative personnel. Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one segment that is reported to management. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected based on historical events, current conditions and forecast information. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. We adopted ASU 2016-13 as of January 1, 2020. The adoption of this new accounting standard did not have a material impact on our condensed consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment is effective for public companies with fiscal years beginning after December 15, 2020; early adoption is permitted. We are evaluating the impact of this amendment on our condensed consolidated financial statements. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Revenue Recognition Accounting Policy Our revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue. Fixed fee license revenue We recognize revenue from a fixed fee license agreement when we have satisfied our performance obligations, which typically occurs upon the transfer of rights to our technology upon the execution of the license agreement. However, in certain contracts, we grant a license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, we have concluded that there are two separate performance obligations: •Performance Obligation A: to transfer rights to our patent portfolio as it exists when the contract is executed; •Performance Obligation B: to transfer rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. If a fixed fee license agreement contains only Performance Obligation A, we recognize most or all of the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, we allocate the transaction price based on the standalone price for each of the two performance obligations. We use a number of factors primarily related to the attributes of our patent portfolio to estimate standalone prices related to Performance Obligation A and B. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A is recognized in the period the license agreement is signed and the customer can benefit from rights provided in the contract. The portion allocable to Performance Obligation B is recognized on a straight-line basis over the contract term. For such contracts, a contract liability account is established and included within Deferred revenue on the Condensed Consolidated Balance Sheets. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. Some of our license agreements contain fixed fees related to past infringements. Such fixed fees are recognized as revenue or recorded as a deduction to our operating expense in the period the license agreement is signed. Payments for fixed fee license contracts typically are due in full within 30 - 45 days from execution of the contract. From time to time, we enter into a fixed fee license contract with payments due in a number of installments payable throughout the contract term. In such cases, we will determine if a significant financing component exists and if it does, we will recognize revenue and corresponding interest expense or income, as appropriate. Per-unit Royalty revenue We record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As we generally do not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows us to adequately review the reports and include the actual amounts in our quarterly results for such quarter, we accrue the related revenue based on estimates of our licensees’ underlying sales, subject to certain constraints on our ability to estimate such amounts. We develop such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a lookback at historical royalty reporting for each of our customers, and industry information available for the licensed products. As a result of accruing per-unit royalty revenue for the quarter based on such estimates, we make adjustments in the following quarter to true-up revenue to the actual amounts reported by our licensees. During the three months ended June 30, 2020 , we recorded a $20,000 adjustment to decrease per-unit royalty revenue. This adjustment represents the difference between the actual per-unit royalty revenue for the three months ended March 31, 2020 as reported by our licensees during the three months ended June 30, 2020 and the estimated per-unit royalty revenue for the three months ended March 31, 2020 that we reported during the quarter. Certain of our per-unit royalty agreements contains a minimum royalty provision which sets forth minimum amounts to be received by us during the contract term. Under Accounting Standard Codification 606, Revenue from Contracts with Customers , (“ASC 606”), minimum royalties are considered a fixed transaction price to which we have an unconditional right once all other performance obligations, if any, are satisfied. We recognize all minimum royalties as revenue at the inception of the license agreement, or in the period in which all remaining revenue recognition criteria have been met. We account for the unbilled minimum royalties as contract assets on our Condensed Consolidated Balance Sheets, and the balance of such contract assets will be reduced by the actual royalties to be reported by the licensee during the contract term until fully utilized, after which point any excess per-unit royalties reported are recognized as revenue. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. Payments of per-unit royalties typically are due within 30 to 60 days from the end of the quarter in which the underlying sales took place. Development, services, and other revenue As the performance obligation related to our development, service and other revenue is satisfied over a period of time, we recognize such revenue evenly over the period of performance obligation, which is generally consistent with the contractual term. Disaggregated Revenue The following table presents the disaggregation of our revenue for the three and six months ended June 30, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Fixed fee license revenue $ 1,292 $ 4,254 $ 2,578 $ 5,994 Per-Unit royalty revenue 4,301 4,414 9,197 7,721 Total royalty and license revenue 5,593 8,668 11,775 13,715 Development, services, and other revenue 75 75 150 150 Total revenue $ 5,668 $ 8,743 $ 11,925 $ 13,865 As of June 30, 2020 , we had contract assets of $7.8 million included within Prepaid expenses and other current assets , and $6.0 million included within Other assets on the Condensed Consolidated Balance Sheets. As of December 31, 2019 , we had contract assets of $13.1 million included within Prepaid expenses and other current assets , and $6.9 million included within Other assets , on the Condensed Consolidated Balance Sheets. Contract assets decreased by $6.2 million from December 31, 2019 to June 30, 2020 , primarily due to actual royalties billed during the six months ended June 30, 2020 that reduced the minimum royalties recorded in contract assets. Contract Revenue Based on contracts signed and payments received as of June 30, 2020 , we expect to recognize $28.1 million in revenue related to Performance Obligation B under our fixed fee license agreements, which is satisfied over time, including $13.8 million over one to three years and $14.3 million over more than three years. Revenue related to Performance Obligation B was $30.6 million as of December 31, 2019 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Cash, Cash Equivalents and Short-term Investments Our financial instruments measured at fair value on a recurring basis are cash equivalents and short-term investments. Our fixed income available-for-sale securities consist of high quality, investment grade securities. We value these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value. Financial instruments are valued based on quoted market prices in active markets include mostly money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy. Instruments 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 and include U.S. treasury securities. Instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy. As of June 30, 2020 and December 31, 2019 , we did not hold any Level 3 instruments. Financial instruments measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are classified based on the valuation technique in the table below (in thousands): June 30, 2020 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Money market accounts $ 45,605 $ — $ — $ 45,605 Total assets at fair value (1) $ 45,605 $ — $ — $ 45,605 (1) The above table excludes $8.5 million of cash held in banks. December 31, 2019 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Significant Total Assets: Money market accounts $ 63,351 $ — $ — $ 63,351 U.S. Treasury securities — 3,019 — 3,019 Total assets at fair value (2) $ 63,351 $ 3,019 $ — $ 66,370 (2) The above table excludes $23.1 million of cash held in banks. The contractual maturities of our available-for-sale securities on June 30, 2020 and December 31, 2019 were all due within one year . There were no transfers of instruments between Level 1 and 2 during the three and six months ended June 30, 2020 and the year ended December 31, 2019 . Money market accounts are classified as cash equivalents and U.S. Treasury securities (classified as available-for-sale securities), with maturity dates less than one year, are within short-term investments on our Condensed Consolidated Balance Sheets. Short-term Investments Short-term investments as of December 31, 2019 consisted of the following (in thousands): December 31, 2019 Amortized Gross Gross Fair U.S. Treasury securities $ 3,018 $ 1 $ — $ 3,019 Total $ 3,018 $ 1 $ — $ 3,019 We had no short-term investments as of June 30, 2020 . |
BALANCE SHEET DETAILS
BALANCE SHEET DETAILS | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET DETAILS | Cash and Cash Equivalents Our cash and cash equivalent balances were as follows (in thousands): June 30, December 31, Cash $ 8,496 $ 23,127 Money market funds 45,605 63,351 Cash and cash equivalents $ 54,101 $ 86,478 Accounts and Other Receivable Accounts and other receivables consisted of the following (in thousands): June 30, December 31, Trade accounts receivable $ 1,237 $ 2,972 Other receivables 552 413 Accounts and other receivables $ 1,789 $ 3,385 Allowance for credit losses as of June 30, 2020 and December 31, 2019 were not material. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Prepaid expenses 811 933 Contract assets - current 7,787 13,128 Other current assets 193 17 Prepaid expenses and other current assets 8,791 14,078 Other Assets Other assets consisted of the following (in thousands): June 30, December 31, Contract assets - long-term $ 5,991 $ 6,928 Right-of-use ("ROU") assets 2,337 2,202 Deferred tax assets 470 470 Other assets 189 — Total other assets $ 8,987 $ 9,600 Other Current Liabilities Other current liabilities are as follows (in thousands): June 30, December 31, Accrued legal $ 206 $ 1,077 Lease liabilities - current 1,406 1,150 Other current liabilities 834 1,251 Total other current liabilities $ 2,446 $ 3,478 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock Options and Awards Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock ("RSAs"), restricted stock units (“RSUs”), performance shares, performance units, and other stock-based equity awards to employees, officers, directors, and consultants. Under this program, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. Stock options generally vest over four years and expire seven years from the grant date. Market condition-based options are subject to a market condition whereby the closing price of our common stock must exceed a certain level for a number of trading days within a specified time frame or the options will be canceled before the expiration of the options. RSAs generally vest over one year . RSUs generally vest over three years . Awards granted other than a stock option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued. A summary of our equity incentive program is as follows (in thousands): June 30, Common stock shares available for grant 2,776 Stock options outstanding 1,370 RSAs outstanding 130 RSUs outstanding 1,124 Time-Based Stock Options The following summarizes activities for the time-based stock options for the six months ended June 30, 2020 (in thousands except for weighted average exercise price per share and weighted average remaining contractual life data): Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2019 967 $ 8.55 5.63 $ 16 Granted 456 $ 7.58 Canceled or expired (53 ) $ 9.73 Outstanding as of June 30, 2020 1,370 $ 8.18 5.84 $ — Vested and expected to vest at June 30, 2020 1,178 $ 8.23 5.78 $ — Exercisable at June 30, 2020 344 $ 8.89 4.76 $ — Aggregate intrinsic value is the difference between the closing price on the last trading day in June 30, 2020 and the exercise price, multiplied by the number of in-the-money stock options. Restricted Stock Units The following summarizes RSU activities for the six months ended June 30, 2020 (in thousands except for weighted average grant date fair value and weighted average remaining contractual life data): Number of Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Aggregate Outstanding at December 31, 2019 945 $ 8.81 1.25 $ 7,020 Granted 507 $ 5.93 Released (301 ) $ 9.00 Forfeited (27 ) $ 8.18 Outstanding at June 30, 2020 1,124 $ 7.47 1.40 $ 7,004 Restricted Stock Awards The following summarizes RSA activities for the six months ended June 30, 2020 (in thousands except for weighted average grant date fair value and weighted average remaining recognition period): Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period Outstanding at December 31, 2019 91 $ 7.45 0.45 Granted 142 $ 6.43 Released (71 ) $ 7.18 Forfeited (32 ) $ 7.27 Outstanding at June 30, 2020 130 $ 6.53 0.95 Employee Stock Purchase Plan Under our 1999 Employee Stock Purchase Plan ("ESPP"), eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of our common stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six months offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1.0 million shares of common stock has been reserved for issuance under the ESPP. During the six months ended June 30, 2020 , 10,162 shares were purchased under the ESPP. As of June 30, 2020 , 243,275 shares were available for future purchase under the ESPP. Stock-based Compensation Expense The following table summarizes stock-based compensation expenses recognized for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Stock options $ 298 $ 122 $ 553 $ 316 RSUs and RSAs 1,056 938 1,518 2,826 Employee stock purchase plan 11 21 23 42 Total $ 1,365 $ 1,081 $ 2,094 $ 3,184 Sales and marketing $ 343 $ 173 $ 388 $ 493 Research and development 251 190 420 820 General and administrative 771 718 1,286 1,871 Total $ 1,365 $ 1,081 $ 2,094 $ 3,184 We use the Black-Scholes-Merton option pricing model for our time-based options, single-option approach to determine the fair value of standard stock options. All share-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. The determination of the fair value of share-based awards on the date of grant using an option pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables. These variables include actual and projected employee stock option exercise behaviors that impact the expected term, our expected stock price volatility over the term of the awards, risk-free interest rate, and expected dividend. The assumptions used to value options granted under our equity incentive program are as follows: Three Months Ended Six Months Ended 2020 (1) 2019 2020 2019 Expected life (in years) N/A 4.4 4.2 4.5 Volatility N/A 53 % 52 % 53 % Interest rate N/A 1.8 % 1.0 % 2.3 % Dividend yield N/A — % — % — % (1) There were no stock option grants in the three month ended June 30, 2020. As of June 30, 2020 , there were $9.0 million of unrecognized compensation costs, adjusted for estimated forfeitures, related to non-vested stock options, RSAs and RSUs. This unrecognized compensation cost will be recognized over an estimated weighted-average period of approximately 2.31 years. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Stock Repurchase Program On November 1, 2007, our Board of Directors (the "Board") authorized the repurchase of up to $50.0 million of our common stock (the “Stock Repurchase Program”). In addition, on October 22, 2014, the Board authorized another $30.0 million under the Stock Repurchase Program. We may repurchase our common stock for cash in the open market in accordance with applicable securities laws. The timing and amount of any stock repurchase will depend on share price, corporate and regulatory requirements, economic and market conditions, and other factors. The stock repurchase authorization has no expiration date, does not require us to repurchase a specific number of shares, and may be modified, suspended, or discontinued at any time. During the three months ended June 30, 2020 , we repurchased 2.9 million shares for $18.7 million at an average cost of $6.39 per share. During the six months ended June 30, 2020 . we repurchased approximately 4.9 million for $30.6 million at an average cost of $6.21 per share. As of June 30, 2020, we have no amount available for repurchase under the Stock Repurchase Program. There were no stock repurchases during the three and six months ended June 30, 2019 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax provisions consisted of the following (in thousands, except for effective tax rate percentage): Three Months Ended Six Months Ended 2020 2019 2020 2019 Loss before benefit from (provision for) income taxes $ (671 ) $ (8,623 ) $ (5,447 ) $ (19,524 ) Benefit from (provision for) income taxes $ (41 ) $ 3 $ (93 ) $ (112 ) Effective tax rate 6.1 % — % 1.7 % 0.6 % The provision for income tax for the three and six months ended June 30, 2020 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. The benefit from income taxes for the three months ended June 30, 2019 and provision for income taxes for the six months ended June 30, 2019 resulted primarily from estimated foreign taxes included in the calculation of the effective tax rate. For the three and six months ended June 30, 2019, we used a year-to-date approach to calculate the effective tax rate. We continue to carry a full valuation allowance on its federal deferred tax assets. As a result, no benefit for losses generated from our U.S. territory was included in the calculation of the year-to-date effective tax rate. On July 27, 2015, a U.S. Tax Court opinion (Altera Corporation et. al v. Commissioner) concerning the treatment of stock-based compensation expense in an intercompany cost sharing arrangement was issued. In its opinion, the U.S. Tax Court accepted Altera's position of excluding stock-based compensation from its intercompany cost sharing arrangement. On February 19, 2016, the IRS appealed the ruling to the U.S. Court of Appeals for the Ninth Circuit (the "Ninth Circuit"). On July 24, 2018, the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court that had found certain Treasury regulations related to stock-based compensation to be invalid. On August 7, 2018, the Ninth Circuit withdrew its July 24, 2018 opinion to allow a reconstituted panel to confer on the decision. This reconstituted panel reconsidered the validity of the cost sharing regulations at issue. The regulations at issue require related entities to share the cost of employee stock compensation in order for their cost-sharing arrangements to be classified as “qualified cost-sharing arrangements” and to avoid potential IRS adjustment. On June 7, 2019, the reconstituted panel of the Ninth Circuit upheld the 2018 decision of the Ninth Circuit, concluding stock-based compensation must be included in intercompany cost sharing agreements for the agreements to be classified as “qualified cost-sharing arrangements”. On July 22, 2019, Altera filed a petition for an en banc rehearing with the Ninth Circuit which was denied. On June 22, 2020, the Supreme Court refused to hear the Altera case, leaving intact the Ninth Circuit ruling. We had concluded that it was not more-likely-than-not that Altera would prevail with an appeal to the Supreme Court and had made corresponding provisions in previous periods. Accordingly, there was no impact to our condensed consolidated financial statements for the three months ended June 30, 2020 arising from the Supreme Court’s refusal to hear the Altera case. On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was passed into law. Among other changes, the Tax Act reduced the US federal corporate income tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. In addition, the Act introduced the Base Erosion and Anti-Abuse Tax (the “BEAT”), which creates a new tax on certain related-party payments. We concluded that it has not met the threshold requirements of the BEAT. On July 9, 2020, the Internal Revenue Service issued final regulations regarding deductions for global intangible low-taxed income (“GILTI”) and foreign-derived intangible income (“FDII”). On July 9, 2020, the Treasury Department released final regulations (TD 9901) under IRC Section 250, which allows an annual deduction to a domestic corporation for its foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) inclusion. The final guidance is not expected to have a material impact on our consolidated financial statements. Although the measurement period has closed, further technical guidance related to the Tax Act, including final regulations on a broad range of other topics, is expected to be issued. In accordance with ASC 740, we will recognize any effects of the guidance in the period that such guidance is issued. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was passed into law. The CARES Act includes several significant business tax provisions including modification to the taxable income limitation for utilization of net operating losses (“NOLs”) incurred in 2018, 2019 and 2020 and the ability to carry back NOLs from those years for a period of up to five years, an increase to the limitation on deductibility of certain business interest expense, bonus depreciation for purchases of qualified improvement property and special deductions on certain corporate charitable contributions. We analyzed the provisions of the CARES Act and determined there was no effect on our provision for the current period. As of June 30, 2020 , we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $4.8 million and applicable interest of $29,000 . The total amount of unrecognized tax benefits that would affect our effective tax rate, if recognized, is $97,000 . Our policy is to account for interest and penalties related to uncertain tax positions as a component of income tax provision. We do not expect to have any significant changes to unrecognized tax benefits during the next twelve months. As of June 30, 2020 , we had net deferred income tax assets of $0.5 million and deferred income tax liabilities of $0.5 million . Because we have net operating loss and credit carryforwards, there are open statutes of limitations in which federal, state, and foreign taxing authorities may examine our tax returns for all years from 2000 through the current period. We maintain a valuation allowance of $28.0 million |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, RSUs, RSAs and ESPP. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Numerator: Net loss $ (712 ) $ (8,620 ) $ (5,540 ) $ (19,636 ) Denominator: Weighted-average common stock outstanding, basic 27,634 31,578 29,320 31,335 Dilutive effect of potential common shares: Stock options, RSUs, RSA and ESPP — — — — Total shares, diluted 27,634 31,578 29,320 31,335 Basic net loss per share $ (0.03 ) $ (0.27 ) $ (0.19 ) $ (0.63 ) Diluted net loss per share $ (0.03 ) $ (0.27 ) $ (0.19 ) $ (0.63 ) As of June 30, 2020 , approximately 1.4 million stock options and 1.3 million RSUs and RSAs were excluded from computation of diluted net loss per share because their effect would have been anti-dilutive. As of June 30, 2019 , approximately 2.0 million stock options and 0.8 million RSUs and RSAs were excluded from computation of diluted net loss per share because their effect would have been anti-dilutive. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES We lease all of our office space pursuant to operating lease and sublease arrangements, which expire at various dates through February 29, 2024. We recognize lease expense on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets. We combine lease and non-lease components for new and reassessed leases. We apply discount rates to operating leases using a portfolio approach. On January 31, 2020, we entered into an agreement to lease approximately 5,000 square feet of office space in San Francisco, California. This facility is used for administrative and headquarter functions. The lease commenced in the first quarter of 2020 and expires in 2022. During the three months ended March 31, 2020, we recorded a lease liability of $0.6 million , which represents the present value of the lease payments using an estimated incremental borrowing rate of 3.50% . We also recognized lease right-of-use assets ("ROU") of $0.6 million which represents our right to use an underlying asset for the lease term. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Below is a summary of our ROU assets and lease liabilities as of June 30, 2020 and December 31, 2019 , respectively (in thousands): Balance Sheets Classification June 30, 2020 December 31, 2019 Assets Right-of-use assets Other assets $ 2,337 $ 2,202 Liabilities Operating lease liabilities - current Other current liabilities 1,406 1,150 Operating lease liabilities - long-term Other long-term liabilities 2,324 2,664 Total lease liabilities $ 3,730 $ 3,814 During 2019, we began to shift general and administrative, research and development and executive functions and employees from our San Jose, California facility (“SJ Facility”) to our San Francisco, California and Montreal, Canada offices. In the fourth quarter of 2019, we announced our decision to exit the SJ Facility by March 31, 2020. We accelerated the amortization of our SJ Facility leasehold improvements over their remaining estimated life. As of March 31, 2020, the SJ Facility leasehold improvements were fully amortized. On March 12, 2020, we entered into a sublease agreement with Neato Robotics, Inc. ("Neato") for the San Jose California Facility ("SJ Facility"). This sublease commenced in June 2020 and ends on April 30, 2023 which is the lease termination date of the original SJ Facility lease. In accordance with provisions of ASC 842 Leases ("ASC 842"), we treated the sublease as a separate lease as we were not relieved of the primary obligation under the original lease. We continue to account for the original SJ Facility, as a lessee, in the same manner as prior to the commencement date of the sublease. We accounted for the sublease as a lessor of the lease. We classified the sublease as an operating lease as it did not meet the criteria of a Sale-Type or Direct Financing lease. At the commencement date of the sublease, we recognized initial direct costs of $0.3 million . These deferred costs will be amortized over the terms of the sublease payments. As of June 30, 2020 , $0.1 million was reported in Prepaid expenses and other current assets and $0.2 million was reported in Other assets on our Condensed Consolidated Balance Sheets. We recognize operating lease expense and lease payments from the sublease, on a straight-line basis, in our Condensed Consolidated Statements of Operations and Comprehensive Loss over the lease terms. During the three and six months ended June 30, 2020 , and 2019, our net operating lease expenses are as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Operating lease cost $ 301 $ 265 $ 573 $ 555 Sublease income (70 ) — (70 ) — Total lease cost $ 231 $ 265 $ 503 $ 555 The table below provides supplemental information related to operating leases for the six months ended June 30, 2020 (in thousands except for lease term): Cash paid within operating cash flow $ 349 Weighted average lease terms (in years) 2.71 Weighted average discount rate 3.50 % Minimum future lease payment obligations for our operating leases as of June 30, 2020 are as follows (in thousands): For the Years Ending December 31, Remainder of 2020 $ 751 2021 1,494 2022 1,191 2023 450 2024 23 Total $ 3,909 Future lease payments as of June 30, 2020 from our sublease agreement are as follows (in thousands): For the Years Ending December 31, Remainder of 2020 $ 514 2021 1,046 2022 1,077 2023 351 Total $ 2,988 |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES From time to time, we receive claims from third parties asserting that our technologies, or those of our licensees, infringe on the other parties’ IP rights. Management believes that these claims are without merit. Additionally, periodically, we are involved in routine legal matters and contractual disputes incidental to our normal operations. In management’s opinion, the resolution of such matters will not have a material adverse effect on our consolidated financial condition, results of operations, or liquidity. In the normal course of business, we provide indemnification of varying scope to customers, most commonly to licensees in connection with licensing arrangements that include our IP, although these provisions can cover additional matters. Historically, costs related to these guarantees have not been significant, and we are unable to estimate the maximum potential impact of these guarantees on our future results of operations. On April 28, 2017, Immersion and Immersion Software Ireland Limited (collectively, “Immersion”) received a letter from Samsung Electronics Co. (“Samsung”) requesting that we reimburse Samsung with respect to withholding tax and penalties imposed on Samsung by the Korean tax authorities following an investigation where the tax authority determined that Samsung failed to withhold taxes on Samsung’s royalty payments to Immersion Software Ireland from 2012 to 2016. On July 12, 2017, on behalf of Samsung, Immersion filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes and penalties. On October 18, 2018, the Korea Tax Tribunal held a hearing and on November 19, 2018, 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 Samsung. On behalf of Samsung, we filed an appeal with the Korea Administrative Court on February 15, 2019. The first hearing occurred on June 27, 2019. A second hearing occurred on August 29, 2019. A third hearing occurred on October 31, 2019. A fourth hearing occurred on December 19, 2019. A fifth hearing occurred on April 2, 2020. A sixth hearing occurred on May 14, 2020. A seventh hearing occurred on June 4, 2020. On July 16, 2020, the Korea Administrative Court issued its ruling in which it ruled that the withholding taxes and penalties which were imposed by the Korean tax authorities on Samsung should be canceled with some litigation costs to be borne by the Korean tax authorities. On August 3, 2020, the Korean tax authorities filed a petition of appeal with the Korea High Court indicating the Korean tax authorities’ intent to appeal the decision of the Korea Administrative Court. On September 29, 2017, Samsung filed an arbitration demand with the International Chamber of Commerce against Immersion demanding that we reimburse Samsung for the imposed tax and penalties that Samsung paid to the Korean tax authorities. On March 27, 2019, we received the final award. The award ordered Immersion to pay Samsung KRW 7,841,324,165 ( $6.9 million ) which Immersion paid on April 22, 2019, and recorded in Long-term deposits on our Condensed Consolidated Balance Sheets. The award also denied Samsung’s claim for interest from and after May 2, 2017, and ordered Immersion to pay Samsung’s cost of the arbitration in the amount of approximately $871,454 . We believe that there are valid defenses to all of the claims from the Korean tax authorities. We intend to vigorously defend against the claims from the Korean tax authorities. We expect to be reimbursed by Samsung to the extent we ultimately prevail in the appeal in the Korea courts. On March 31, 2019, $6.9 million was recorded as a deposit included in Long-term deposits on our Condensed Consolidated Balance Sheets. In the event that we do not ultimately prevail in our appeal in the Korean courts, the deposit included in Long-term deposits would be recorded as additional income tax expense on our Condensed Consolidated Statement of Operations and Comprehensive Loss, in the period in which we do not ultimately prevail. On October 16, 2017, we received a letter from LG Electronics Inc. (“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 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 Korea courts. In the second quarter of 2020, we recorded this deposit in Long-term deposits on our Condensed Consolidated Balance Sheets. In the event that we do not ultimately prevail in our appeal in the Korean courts, the deposit included in Long-term deposits would be recorded as additional income tax expense on our Condensed Consolidated Statement of Operations and Comprehensive Loss, in the period in which we do not ultimately prevail. On November 3, 2017, on behalf of LGE, we filed an appeal with the Korea Tax Tribunal regarding their findings with respect to the withholding taxes. 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 Immersion’s 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. The first hearing occurred on October 15, 2019. A second hearing occurred on December 19, 2019. A third hearing occurred on February 13, 2020. A fourth hearing occurred on June 9, 2020. A fifth hearing occurred on July 16, 2020. We anticipate a decision to be rendered on or about October 8, 2020. We believe that there are valid defenses to the claims raised by the Korean tax authorities and that LGE’s claims are without merit. We intend to vigorously defend ourselves against these claims. In the event that we do not ultimately prevail in our appeal in the Korean courts, any payments to LGE with respect to withholding tax imposed on LGE by the Korean tax authorities as described in the previous paragraph would be recorded as additional income tax expense on the Condensed Consolidated Statement of Operations and Comprehensive Income (Loss), in the period in which we do not ultimately prevail. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business Immersion Corporation (the "Company", "Immersion", "we" or "us") was incorporated in 1993 in California and reincorporated in Delaware in 1999. We focus on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with products and experience the digital world around them. We have adopted a business model under which it provides advanced tactile software, related tools, technical assistance designed to help integrate our patented technology into our customers’ products or enhance the functionality of our patented technology to certain customers, and offers licenses to our patented technology to other customers. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying condensed consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries: Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the instructions for Form 10-Q and Article 10 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 year ended December 31, 2019 . 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. |
Use of Estimates | Use of Estimates |
Segment Information | Segment Information We develop, license, and support a wide range of software and IP that more fully engage users’ senses 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. We manage these application areas in one operating and reporting segment with only one set of management, development, and administrative personnel. Our chief operating decision maker (“CODM”) is the Chief Executive Officer. The CODM approves budgets and allocates resources to and assesses the performance of our business using information about our revenue and operating loss. There is only one segment that is reported to management. |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). This guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected based on historical events, current conditions and forecast information. The standard will be effective for the first interim period within annual reporting periods beginning after December 15, 2019 and early adoption is permitted. We adopted ASU 2016-13 as of January 1, 2020. The adoption of this new accounting standard did not have a material impact on our condensed consolidated financial statements. Recent Accounting Guidance Not Yet Adopted In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which enhances and simplifies various aspects of the income tax accounting guidance, including requirements such as tax basis step-up in goodwill obtained in a transaction that is not a business combination, ownership changes in investments, and interim-period accounting for enacted changes in tax law. The amendment is effective for public companies with fiscal years beginning after December 15, 2020; early adoption is permitted. We are evaluating the impact of this amendment on our condensed consolidated financial statements. |
Revenue Recognition Accounting Policy | Revenue Recognition Accounting Policy Our revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements, along with less significant revenue earned from development, services and other revenue. Fixed fee license revenue We recognize revenue from a fixed fee license agreement when we have satisfied our performance obligations, which typically occurs upon the transfer of rights to our technology upon the execution of the license agreement. However, in certain contracts, we grant a license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term. For such arrangements, we have concluded that there are two separate performance obligations: •Performance Obligation A: to transfer rights to our patent portfolio as it exists when the contract is executed; •Performance Obligation B: to transfer rights to our patent portfolio as it evolves over the term of the contract, including access to new patent applications that the licensee can benefit from over the term of the contract. If a fixed fee license agreement contains only Performance Obligation A, we recognize most or all of the revenue from the agreement at the inception of the contract. For fixed fee license agreements that contain both Performance Obligation A and B, we allocate the transaction price based on the standalone price for each of the two performance obligations. We use a number of factors primarily related to the attributes of our patent portfolio to estimate standalone prices related to Performance Obligation A and B. Once the transaction price is allocated, the portion of the transaction price allocable to Performance Obligation A is recognized in the period the license agreement is signed and the customer can benefit from rights provided in the contract. The portion allocable to Performance Obligation B is recognized on a straight-line basis over the contract term. For such contracts, a contract liability account is established and included within Deferred revenue on the Condensed Consolidated Balance Sheets. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. Some of our license agreements contain fixed fees related to past infringements. Such fixed fees are recognized as revenue or recorded as a deduction to our operating expense in the period the license agreement is signed. Payments for fixed fee license contracts typically are due in full within 30 - 45 days from execution of the contract. From time to time, we enter into a fixed fee license contract with payments due in a number of installments payable throughout the contract term. In such cases, we will determine if a significant financing component exists and if it does, we will recognize revenue and corresponding interest expense or income, as appropriate. Per-unit Royalty revenue We record per-unit royalty revenue in the same period in which the licensee’s underlying sales occur. As we generally do not receive the per-unit licensee royalty reports for sales during a given quarter within the time frame that allows us to adequately review the reports and include the actual amounts in our quarterly results for such quarter, we accrue the related revenue based on estimates of our licensees’ underlying sales, subject to certain constraints on our ability to estimate such amounts. We develop such estimates based on a combination of available data including, but not limited to, approved customer forecasts, a lookback at historical royalty reporting for each of our customers, and industry information available for the licensed products. As a result of accruing per-unit royalty revenue for the quarter based on such estimates, we make adjustments in the following quarter to true-up revenue to the actual amounts reported by our licensees. During the three months ended June 30, 2020 , we recorded a $20,000 adjustment to decrease per-unit royalty revenue. This adjustment represents the difference between the actual per-unit royalty revenue for the three months ended March 31, 2020 as reported by our licensees during the three months ended June 30, 2020 and the estimated per-unit royalty revenue for the three months ended March 31, 2020 that we reported during the quarter. Certain of our per-unit royalty agreements contains a minimum royalty provision which sets forth minimum amounts to be received by us during the contract term. Under Accounting Standard Codification 606, Revenue from Contracts with Customers , (“ASC 606”), minimum royalties are considered a fixed transaction price to which we have an unconditional right once all other performance obligations, if any, are satisfied. We recognize all minimum royalties as revenue at the inception of the license agreement, or in the period in which all remaining revenue recognition criteria have been met. We account for the unbilled minimum royalties as contract assets on our Condensed Consolidated Balance Sheets, and the balance of such contract assets will be reduced by the actual royalties to be reported by the licensee during the contract term until fully utilized, after which point any excess per-unit royalties reported are recognized as revenue. As the rights and obligations in a contract are interdependent, contract assets and contract liabilities that arise in the same contract are presented on a net basis. Payments of per-unit royalties typically are due within 30 to 60 days from the end of the quarter in which the underlying sales took place. Development, services, and other revenue As the performance obligation related to our development, service and other revenue is satisfied over a period of time, we recognize such revenue evenly over the period of performance obligation, which is generally consistent with the contractual term. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated revenue | The following table presents the disaggregation of our revenue for the three and six months ended June 30, 2020 and 2019 (in thousands). Three Months Ended Six Months Ended 2020 2019 2020 2019 Fixed fee license revenue $ 1,292 $ 4,254 $ 2,578 $ 5,994 Per-Unit royalty revenue 4,301 4,414 9,197 7,721 Total royalty and license revenue 5,593 8,668 11,775 13,715 Development, services, and other revenue 75 75 150 150 Total revenue $ 5,668 $ 8,743 $ 11,925 $ 13,865 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instruments measured at fair value on recurring basis | Financial instruments measured at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are classified based on the valuation technique in the table below (in thousands): June 30, 2020 Fair Value Measurements Using Quoted Prices Significant Significant Total Assets: Money market accounts $ 45,605 $ — $ — $ 45,605 Total assets at fair value (1) $ 45,605 $ — $ — $ 45,605 (1) The above table excludes $8.5 million of cash held in banks. December 31, 2019 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets Significant Significant Total Assets: Money market accounts $ 63,351 $ — $ — $ 63,351 U.S. Treasury securities — 3,019 — 3,019 Total assets at fair value (2) $ 63,351 $ 3,019 $ — $ 66,370 (2) The above table excludes $23.1 million of cash held in banks. |
Schedule of short-term investments | Short-term investments as of December 31, 2019 consisted of the following (in thousands): December 31, 2019 Amortized Gross Gross Fair U.S. Treasury securities $ 3,018 $ 1 $ — $ 3,019 Total $ 3,018 $ 1 $ — $ 3,019 |
BALANCE SHEET DETAILS (Tables)
BALANCE SHEET DETAILS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of cash and cash equivalents | Our cash and cash equivalent balances were as follows (in thousands): June 30, December 31, Cash $ 8,496 $ 23,127 Money market funds 45,605 63,351 Cash and cash equivalents $ 54,101 $ 86,478 |
Schedule of accounts and other receivables | Accounts and other receivables consisted of the following (in thousands): June 30, December 31, Trade accounts receivable $ 1,237 $ 2,972 Other receivables 552 413 Accounts and other receivables $ 1,789 $ 3,385 |
Schedule of prepaid expenses and other current assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, December 31, Prepaid expenses 811 933 Contract assets - current 7,787 13,128 Other current assets 193 17 Prepaid expenses and other current assets 8,791 14,078 |
Schedule of other assets, net | Other assets consisted of the following (in thousands): June 30, December 31, Contract assets - long-term $ 5,991 $ 6,928 Right-of-use ("ROU") assets 2,337 2,202 Deferred tax assets 470 470 Other assets 189 — Total other assets $ 8,987 $ 9,600 |
Components of other current liabilities | Other current liabilities are as follows (in thousands): June 30, December 31, Accrued legal $ 206 $ 1,077 Lease liabilities - current 1,406 1,150 Other current liabilities 834 1,251 Total other current liabilities $ 2,446 $ 3,478 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of equity incentive program | A summary of our equity incentive program is as follows (in thousands): June 30, Common stock shares available for grant 2,776 Stock options outstanding 1,370 RSAs outstanding 130 RSUs outstanding 1,124 |
Summary of time-based stock options | The following summarizes activities for the time-based stock options for the six months ended June 30, 2020 (in thousands except for weighted average exercise price per share and weighted average remaining contractual life data): Number of Shares Weighted Average Weighted Average Aggregate Outstanding at December 31, 2019 967 $ 8.55 5.63 $ 16 Granted 456 $ 7.58 Canceled or expired (53 ) $ 9.73 Outstanding as of June 30, 2020 1,370 $ 8.18 5.84 $ — Vested and expected to vest at June 30, 2020 1,178 $ 8.23 5.78 $ — Exercisable at June 30, 2020 344 $ 8.89 4.76 $ — |
Summary of restricted stock units activities | The following summarizes RSU activities for the six months ended June 30, 2020 (in thousands except for weighted average grant date fair value and weighted average remaining contractual life data): Number of Restricted Stock Units Weighted Average Grant Date Fair Value Weighted Average Aggregate Outstanding at December 31, 2019 945 $ 8.81 1.25 $ 7,020 Granted 507 $ 5.93 Released (301 ) $ 9.00 Forfeited (27 ) $ 8.18 Outstanding at June 30, 2020 1,124 $ 7.47 1.40 $ 7,004 |
Summary of restricted stock awards activities | The following summarizes RSA activities for the six months ended June 30, 2020 (in thousands except for weighted average grant date fair value and weighted average remaining recognition period): Number of Restricted Stock Awards Weighted Average Grant Date Fair Value Weighted Average Remaining Recognition Period Outstanding at December 31, 2019 91 $ 7.45 0.45 Granted 142 $ 6.43 Released (71 ) $ 7.18 Forfeited (32 ) $ 7.27 Outstanding at June 30, 2020 130 $ 6.53 0.95 |
Summary of stock-based compensation expenses | The following table summarizes stock-based compensation expenses recognized for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Stock options $ 298 $ 122 $ 553 $ 316 RSUs and RSAs 1,056 938 1,518 2,826 Employee stock purchase plan 11 21 23 42 Total $ 1,365 $ 1,081 $ 2,094 $ 3,184 Sales and marketing $ 343 $ 173 $ 388 $ 493 Research and development 251 190 420 820 General and administrative 771 718 1,286 1,871 Total $ 1,365 $ 1,081 $ 2,094 $ 3,184 |
Summary of assumptions used to value options granted | The assumptions used to value options granted under our equity incentive program are as follows: Three Months Ended Six Months Ended 2020 (1) 2019 2020 2019 Expected life (in years) N/A 4.4 4.2 4.5 Volatility N/A 53 % 52 % 53 % Interest rate N/A 1.8 % 1.0 % 2.3 % Dividend yield N/A — % — % — % |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax provisions | Income tax provisions consisted of the following (in thousands, except for effective tax rate percentage): Three Months Ended Six Months Ended 2020 2019 2020 2019 Loss before benefit from (provision for) income taxes $ (671 ) $ (8,623 ) $ (5,447 ) $ (19,524 ) Benefit from (provision for) income taxes $ (41 ) $ 3 $ (93 ) $ (112 ) Effective tax rate 6.1 % — % 1.7 % 0.6 % |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share | The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended 2020 2019 2020 2019 Numerator: Net loss $ (712 ) $ (8,620 ) $ (5,540 ) $ (19,636 ) Denominator: Weighted-average common stock outstanding, basic 27,634 31,578 29,320 31,335 Dilutive effect of potential common shares: Stock options, RSUs, RSA and ESPP — — — — Total shares, diluted 27,634 31,578 29,320 31,335 Basic net loss per share $ (0.03 ) $ (0.27 ) $ (0.19 ) $ (0.63 ) Diluted net loss per share $ (0.03 ) $ (0.27 ) $ (0.19 ) $ (0.63 ) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of ROU assets and lease liabilities | Below is a summary of our ROU assets and lease liabilities as of June 30, 2020 and December 31, 2019 , respectively (in thousands): Balance Sheets Classification June 30, 2020 December 31, 2019 Assets Right-of-use assets Other assets $ 2,337 $ 2,202 Liabilities Operating lease liabilities - current Other current liabilities 1,406 1,150 Operating lease liabilities - long-term Other long-term liabilities 2,324 2,664 Total lease liabilities $ 3,730 $ 3,814 |
Schedule of supplemental information related to operating leases and expenses | During the three and six months ended June 30, 2020 , and 2019, our net operating lease expenses are as follows (in thousands): Three Months Ended Six Months Ended 2020 2019 2020 2019 Operating lease cost $ 301 $ 265 $ 573 $ 555 Sublease income (70 ) — (70 ) — Total lease cost $ 231 $ 265 $ 503 $ 555 The table below provides supplemental information related to operating leases for the six months ended June 30, 2020 (in thousands except for lease term): Cash paid within operating cash flow $ 349 Weighted average lease terms (in years) 2.71 Weighted average discount rate 3.50 % |
Schedule of minimum future lease payment obligations | Minimum future lease payment obligations for our operating leases as of June 30, 2020 are as follows (in thousands): For the Years Ending December 31, Remainder of 2020 $ 751 2021 1,494 2022 1,191 2023 450 2024 23 Total $ 3,909 |
Schedule of sublease income expected to be received | sublease agreement are as follows (in thousands): For the Years Ending December 31, Remainder of 2020 $ 514 2021 1,046 2022 1,077 2023 351 Total $ 2,988 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020Segment | |
Accounting Policies [Abstract] | ||
GovernmentSubsidies | $ | $ 0.2 | |
Number of reporting segments | 1 | |
Number of operating segments | 1 |
REVENUE RECOGNITION - NARRATIVE
REVENUE RECOGNITION - NARRATIVE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Decrease in royalty revenue recognized true-ups | $ 20,000 | ||
Contract assets - current | 7,787,000 | $ 7,787,000 | $ 13,128,000 |
Contract assets - long-term | $ 5,991,000 | 5,991,000 | $ 6,928,000 |
Decrease in contract with customer, asset | $ (6,200,000) |
REVENUE RECOGNITION - DISAGGREG
REVENUE RECOGNITION - DISAGGREGATED REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 5,668 | $ 8,743 | $ 11,925 | $ 13,865 |
Fixed fee license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,292 | 4,254 | 2,578 | 5,994 |
Per-Unit royalty revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,301 | 4,414 | 9,197 | 7,721 |
Total royalty and license revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,593 | 8,668 | 11,775 | 13,715 |
Development, services, and other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 75 | $ 75 | $ 150 | $ 150 |
REVENUE RECOGNITION - CONTRACTE
REVENUE RECOGNITION - CONTRACTED REVENUE (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 28.1 | $ 30.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 13.8 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, period | 3 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation | $ 14.3 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, period |
FAIR VALUE MEASUREMENTS - SCHED
FAIR VALUE MEASUREMENTS - SCHEDULE OF FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 0 | $ 3,019,000 |
Cash held in banks | 8,496,000 | 23,127,000 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,019,000 | |
Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 45,605,000 | 66,370,000 |
Fair value, measurements, recurring | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,019,000 | |
Fair value, measurements, recurring | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 45,605,000 | 63,351,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 45,605,000 | 63,351,000 |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 45,605,000 | 63,351,000 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 3,019,000 |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 3,019,000 | |
Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | Money market accounts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market accounts | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - NARRA
FAIR VALUE MEASUREMENTS - NARRATIVE (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Period for contractual maturities of the Company's available-for-sale securities | 1 year | 1 year |
Short-term investments | $ 0 | $ 3,019,000 |
FAIR VALUE MEASUREMENTS - SCH_2
FAIR VALUE MEASUREMENTS - SCHEDULE OF SHORT-TERM INVESTMENTS (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,018,000 | |
Gross Unrealized Holding Gains | 1,000 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | $ 0 | 3,019,000 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,018,000 | |
Gross Unrealized Holding Gains | 1,000 | |
Gross Unrealized Holding Losses | 0 | |
Fair Value | $ 3,019,000 |
BALANCE SHEET DETAILS - Cash an
BALANCE SHEET DETAILS - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents: | ||
Cash | $ 8,496 | $ 23,127 |
Money market funds | 45,605 | 63,351 |
Cash and cash equivalents | $ 54,101 | $ 86,478 |
BALANCE SHEET DETAILS - Account
BALANCE SHEET DETAILS - Accounts and Other Receivables (Detail) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Trade accounts receivable | $ 1,237,000 | $ 2,972,000 |
Other receivables | 552,000 | 413,000 |
Accounts and other receivables | $ 1,789,000 | 3,385,000 |
Estimated allowance for doubtful accounts | $ 0 |
BALANCE SHEET DETAILS - Other A
BALANCE SHEET DETAILS - Other Assets, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Assets, Net [Abstract] | ||
Contract assets - long-term | $ 5,991 | $ 6,928 |
Right-of-use (ROU) assets | 2,337 | 2,202 |
Deferred tax assets | 470 | 470 |
Other assets | 189 | 0 |
Total other assets | $ 8,987 | $ 9,600 |
BALANCE SHEET DETAILS - Other C
BALANCE SHEET DETAILS - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Liabilities, Current [Abstract] | ||
Accrued legal | $ 206 | $ 1,077 |
Lease liabilities - current | 1,406 | 1,150 |
Other current liabilities | 834 | 1,251 |
Total other current liabilities | $ 2,446 | $ 3,478 |
BALANCE SHEETS DETAILS BALANCE
BALANCE SHEETS DETAILS BALANCE SHEET DETAILS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 811 | $ 933 |
Contract assets - current | 7,787 | 13,128 |
Other current assets | 193 | 17 |
Prepaid expenses and other current assets | $ 8,791 | $ 14,078 |
STOCK-BASED COMPENSATION - NARR
STOCK-BASED COMPENSATION - NARRATIVE (Details) | 6 Months Ended |
Jun. 30, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of available shares consumed for each restricted stock and restricted stock units issued | 1.75 |
Unrecognized compensation cost | $ | $ 9,000,000 |
Unrecognized compensation cost, recognized over an estimated weighted-average period | 2 years 3 months 21 days |
Stock options outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based payment award vesting period | 4 years |
Stock-based payment award expiration period | 7 years |
RSAs outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based payment award vesting period | 1 year |
RSUs outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock-based payment award vesting period | 3 years |
Employee stock purchase plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of fair market value on the purchase date | 85.00% |
Maximum number of shares per employee (in shares) | 2,000 |
Employee stock purchase plan offering period | 6 months |
Maximum value of shares per employee | $ | $ 25,000 |
Common stock reserved for issuance (in shares) | 1,000,000 |
Purchases under ESPP (in shares) | 10,162 |
Shares available for purchase (in shares) | 243,275 |
STOCK-BASED COMPENSATION - SUMM
STOCK-BASED COMPENSATION - SUMMARY OF EQUITY INCENTIVE PROGRAM (Details) - shares shares in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares available for grant (in shares) | 2,776 | |
Stock options outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Standard and market condition-based stock options outstanding (in shares) | 1,370 | |
RSAs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 130 | 91 |
RSUs outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock outstanding (in shares) | 1,124 | 945 |
STOCK-BASED COMPENSATION - SU_2
STOCK-BASED COMPENSATION - SUMMARY OF TIME-BASED STOCK OPTIONS (Details) - Time-based stock options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Number of Shares Underlying Stock Options | ||
Beginning outstanding balance (in shares) | 967 | |
Granted (in shares) | 456 | |
Canceled or expired (in shares) | (53) | |
Ending outstanding balance (in shares) | 1,370 | 967 |
Number of shares underlying stock options, Vested and expected to vest (in shares) | 1,178 | |
Number of shares underlying stock options, Exercisable (in shares) | 344 | |
Weighted Average Exercise Price Per Share | ||
Beginning outstanding balance (in dollars per share) | $ 8.55 | |
Granted (in dollars per share) | 7.58 | |
Canceled or expired (in dollars per share) | 9.73 | |
Ending outstanding balance (in dollars per share) | 8.18 | $ 8.55 |
Weighted average exercise price, Vested and expected to vest (in dollars per share) | 8.23 | |
Weighted average exercise price, Exercisable (in dollars per share) | $ 8.89 | |
Weighted average remaining contractual life, Outstanding | 5 years 10 months 2 days | 5 years 7 months 17 days |
Weighted average remaining contractual life, Vested and expected to vest | 5 years 9 months 10 days | |
Weighted average remaining contractual life, Exercisable | 4 years 9 months 3 days | |
Aggregate intrinsic value, Outstanding | $ 0 | $ 16 |
Aggregate intrinsic value, Vested and expected to vest | 0 | |
Aggregate intrinsic value, Exercisable | $ 0 |
STOCK-BASED COMPENSATION - SU_3
STOCK-BASED COMPENSATION - SUMMARY OF RESTRICTED STOCK UNITS AND RESTRICTED STOCK AWARDS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
RSUs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 945 | |
Granted (in shares) | 507 | |
Released (in shares) | (301) | |
Forfeited (in shares) | (27) | |
Ending outstanding balance (in shares) | 1,124 | 945 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 8.81 | |
Granted (in dollars per share) | 5.93 | |
Released (in dollars per share) | 9 | |
Forfeited (in dollars per share) | 8.18 | |
Ending outstanding balance (in dollars per share) | $ 7.47 | $ 8.81 |
Weighted average remaining contractual life / recognition period, Outstanding | 1 year 4 months 24 days | 1 year 3 months |
Aggregate intrinsic value, Outstanding | $ 7,004 | $ 7,020 |
RSAs outstanding | ||
Number of Restricted Stock Units / Awards | ||
Beginning outstanding balance (in shares) | 91 | |
Granted (in shares) | 142 | |
Released (in shares) | (71) | |
Forfeited (in shares) | (32) | |
Ending outstanding balance (in shares) | 130 | 91 |
Weighted Average Grant Date Fair Value | ||
Beginning outstanding balance (in dollars per share) | $ 7.45 | |
Granted (in dollars per share) | 6.43 | |
Released (in dollars per share) | 7.18 | |
Forfeited (in dollars per share) | 7.27 | |
Ending outstanding balance (in dollars per share) | $ 6.53 | $ 7.45 |
Weighted average remaining contractual life / recognition period, Outstanding | 11 months 12 days | 5 months 12 days |
STOCK-BASED COMPENSATION - SU_4
STOCK-BASED COMPENSATION - SUMMARY OF STOCK-BASED COMPENSATION EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 1,365 | $ 1,081 | $ 2,094 | $ 3,184 |
Sales and marketing | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 343 | 173 | 388 | 493 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 251 | 190 | 420 | 820 |
General and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 771 | 718 | 1,286 | 1,871 |
Standard and market condition-based stock options outstanding | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 298 | 122 | 553 | 316 |
RSUs and RSAs | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | 1,056 | 938 | 1,518 | 2,826 |
Employee stock purchase plan | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation, total | $ 11 | $ 21 | $ 23 | $ 42 |
STOCK-BASED COMPENSATION - SU_5
STOCK-BASED COMPENSATION - SUMMARY OF ASSUMPTIONS USED TO VALUE OPTIONS GRANTED (Details) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Expected life (in years) | 4 years 4 months 24 days | 4 years 2 months 12 days | 4 years 6 months |
Volatility | 53.00% | 52.00% | 53.00% |
Interest rate | 1.80% | 1.00% | 2.30% |
STOCKHOLDERS' EQUITY - NARRATIV
STOCKHOLDERS' EQUITY - NARRATIVE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Oct. 22, 2014 | Nov. 01, 2007 | |
Equity, Class of Treasury Stock [Line Items] | ||||||
Repurchased shares, value | $ 18,667,000 | $ 30,642,000 | ||||
Stock Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 50,000,000 | |||||
Stock repurchase program, additional authorized amount | $ 30,000,000 | |||||
Repurchased shares (in shares) | 2,900,000 | 0 | 4,900,000 | 0 | ||
Repurchased shares, value | $ 18,700,000 | $ 30,600,000 | ||||
Stock repurchase program, average cost (in dollars per share) | $ 6.39 | $ 6.21 | ||||
Stock repurchase program, remaining available repurchase amount | $ 0 | $ 0 |
INCOME TAXES - SCHEDULE OF INCO
INCOME TAXES - SCHEDULE OF INCOME TAX PROVISIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Loss before benefit from (provision for) income taxes | $ (671) | $ (8,623) | $ (5,447) | $ (19,524) |
Benefit from (provision for) income taxes | $ (41) | $ 3 | $ (93) | $ (112) |
Effective tax rate | 6.10% | 0.00% | 1.70% | 0.60% |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) | Jun. 30, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 4,800,000 |
Unrecognized tax benefits, interest | 29,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 97,000 |
Deferred income tax assets | 500,000 |
Deferred income tax liabilities | 500,000 |
Valuation allowance of deferred tax assets | $ 28,000,000 |
NET INCOME (LOSS) PER SHARE - R
NET INCOME (LOSS) PER SHARE - RECONCILIATION OF NUMERATORS AND DENOMINATORS USED IN COMPUTING BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net loss | $ (712) | $ (8,620) | $ (5,540) | $ (19,636) |
Denominator: | ||||
Weighted-average common stock outstanding, basic (in shares) | 27,634 | 31,578 | 29,320 | 31,335 |
Dilutive effect of potential common shares, Stock options, restricted stock units, restricted stock awards and employee stock purchase plan (in shares) | 0 | 0 | 0 | 0 |
Dilutive effect of potential common shares, Total shares, diluted (in shares) | 27,634 | 31,578 | 29,320 | 31,335 |
Basic net loss per share (in dollars per share) | $ (0.03) | $ (0.27) | $ (0.19) | $ (0.63) |
Diluted net loss per share (in dollars per share) | $ (0.03) | $ (0.27) | $ (0.19) | $ (0.63) |
NET INCOME (LOSS) PER SHARE - N
NET INCOME (LOSS) PER SHARE - NARRATIVE (Details) - shares shares in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock options outstanding | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase shares of common stock (in shares) | 1.4 | 2 |
RSUs and RSAs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to purchase shares of common stock (in shares) | 1.3 | 0.8 |
LEASES - NARRATIVE (Details)
LEASES - NARRATIVE (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020USD ($)ft² | Dec. 31, 2019USD ($) | |
Leases | ||
Operating lease liabilities | $ 3,730 | $ 3,814 |
Operating Lease, borrowing rate | 3.50% | |
Right-of-use assets | $ 2,337 | $ 2,202 |
Lessor Sublease | ||
Operating Leases, Initial Direct Costs | $ 300 | |
SF Office | ||
Leases | ||
Area | ft² | 5,000 | |
Operating lease liabilities | $ 600 | |
Operating Lease, borrowing rate | 3.50% | |
Right-of-use assets | $ 600 | |
Prepaid Expenses and Other Current Assets | ||
Lessor Sublease | ||
Operating Leases, Initial Direct Costs | 100 | |
Other Assets | ||
Lessor Sublease | ||
Operating Leases, Initial Direct Costs | $ 200 |
LEASES - SUMMARY OF RIGHT OF US
LEASES - SUMMARY OF RIGHT OF USE ASSETS AND LEASE LIABILITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Right-of-use assets | $ 2,337 | $ 2,202 |
Liabilities | ||
Operating lease liabilities - current | 1,406 | 1,150 |
Operating lease liabilities - long-term | 2,324 | 2,664 |
Total lease liabilities | $ 3,730 | $ 3,814 |
LEASES - SCHEDULE OF SUPPLEMENT
LEASES - SCHEDULE OF SUPPLEMENTAL INFORMATION RELATED TO OPERATING LEASES AND EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Total lease cost | $ 301 | $ 265 | $ 573 | $ 555 |
Sublease income | (70) | 0 | (70) | 0 |
Lease cost, net | $ 231 | $ 265 | 503 | $ 555 |
Cash paid within operating cash flow | $ 349 | |||
Weighted average lease terms (in years) | 2 years 8 months 15 days | 2 years 8 months 15 days | ||
Operating lease, borrowing rate | 3.50% | 3.50% |
LEASES - SCHEDULE OF MINIMUM FU
LEASES - SCHEDULE OF MINIMUM FUTURE LEASE PAYMENT OBLIGATIONS (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | $ 751 |
2021 | 1,494 |
2022 | 1,191 |
2023 | 450 |
2024 | 23 |
Total | $ 3,909 |
LEASES - SCHEDULE OF SUBLEASE I
LEASES - SCHEDULE OF SUBLEASE INCOME EXPECTED TO BE RECEIVED (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 514 |
2021 | 1,046 |
2022 | 1,077 |
2023 | 351 |
Total | $ 2,988 |
CONTINGENCIES - NARRATIVE (Deta
CONTINGENCIES - NARRATIVE (Details) | Apr. 08, 2020USD ($) | Apr. 08, 2020KRW (₩) | Mar. 27, 2019USD ($) | Mar. 27, 2019KRW (₩) | Jun. 30, 2019USD ($) |
Other assets | |||||
Loss Contingencies [Line Items] | |||||
Deposit asset | $ 6,900,000 | ||||
Samsung vs. Immersion | Withholding taxes on royalty payments | |||||
Loss Contingencies [Line Items] | |||||
Litigation, amount awarded to other party | $ 6,900,000 | ₩ 7,841,324,165 | |||
Litigation, arbitration costs | $ 871,454 | ||||
LGE vs Immersion | Withholding taxes on royalty payments | |||||
Loss Contingencies [Line Items] | |||||
Litigation, amount awarded to other party | $ 5,000,000 | ₩ 5,916,845,454 |