Immersion Corporation Corporation (NASDAQ:IMMR) Q4 2019 Results Conference Call March 5, 2019 5:00 PM ET Company Participants Jennifer Jarman - The Blueshirt Group Ramzi Haidamus - President and Chief Executive Officer Aaron Akerman - CFO Conference Call Participants Charlie Anderson - Dougherty & Company Operator Good day and welcome to the Immersion Corporation Q4 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Jennifer Jarman. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (MARK ONE) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38334 IMMERSION CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpora ...

Immersion Corporation (NASDAQ:IMMR) Q3 2019 Earnings Conference Call November 6, 2019 5:00 PM ET Company Participants Jennifer Jarman - The Blueshirt Group Ramzi Haidamus - President and Chief Executive Officer Len Wood - Interim Chief Financial Officer Conference Call Participants Charles Anderson - Dougherty & Company Anthony Stoss - Craig Hallum Operator Good day and welcome to the Immersion Corporation Q3 2019 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to ...

(MARK ONE) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the quarterly period ended June 30, 2019 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-38334 (I.R.S. Employer Identification No.) 50 Rio Robles, San Jose, California 95134 (Address of principal executive offices) (Zi ...

Immersion Corporation (NASDAQ:IMMR) Q2 2019 Results Conference Call August 1, 2019 5:00 PM ET Company Participants Jennifer Jarman - Investor Relations Ramzi Haidamus - President and Chief Executive Officer Len Wood - Interim Chief Financial Officer Ellen Finnerty - Interim Vice President of Finance Conference Call Participants Charles Anderson - Dougherty & Company Tony Strauss - Craig Hallum Operator Good day, and welcome to the Immersion Corporation Q2 2019 Earnings Conference Call. Today's conference is ...

Immersion Corporation (NASDAQ:IMMR) Q1 2019 Earnings Conference Call May 13, 2019 5:00 PM ET Company Participants Jennifer Jarman - IR, The Blueshirt Group Ramzi Haidamus - President & CEO Anne Marie Peters - SVP, IP Licensing & Legal Affairs, Interim CFO Conference Call Participants Anthony Stoss - Craig-Hallum Capital Group LLC Charles Anderson - Dougherty & Company LLC Josh Nichols - B. Riley FBR, Inc. Operator Good day, and welcome to the Immersion Corporation First Quarter 2019 Earnings Conference Call ...

PART I FINANCIAL INFORMATION This section presents Immersion Corporation's Q1 2019 financial statements, management's analysis, market risk, and internal controls [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Immersion Corporation reported a significant Q1 2019 financial decline with plummeting revenues, a net loss, and negative operating cash flow Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Cash and cash equivalents | $102,654 | $110,988 | | Total current assets | $127,892 | $135,825 | | Total assets | $148,481 | $145,995 | | Total current liabilities | $24,865 | $15,345 | | Total liabilities | $57,548 | $46,335 | | Total stockholders' equity | $90,933 | $99,660 | Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Total revenues | $5,122 | $85,416 | | Operating income (loss) | $(11,499) | $70,105 | | Net income (loss) | $(11,016) | $69,883 | | Diluted net income (loss) per share | $(0.35) | $2.29 | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $(7,578) | $86,203 | | Net cash provided by (used in) investing activities | $(936) | $2,133 | | Net cash provided by financing activities | $180 | $6,170 | | Net increase (decrease) in cash and cash equivalents | $(8,334) | $94,506 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, fair value, stock compensation, and legal contingencies with Samsung and LG - The company adopted ASC 842 (Leases) on January 1, 2019, recognizing **right-of-use (ROU) assets of $4.0 million** and **lease liabilities of $4.9 million** on the balance sheet[30](index=30&type=chunk)[84](index=84&type=chunk) Disaggregated Revenue (in thousands) | Revenue Type | Three Months Ended March 31, 2019 | Three Months Ended March 31, 2018 | | :--- | :--- | :--- | | Fixed fee license revenue | $1,740 | $75,756 | | Per-Unit royalty revenue | $3,307 | $9,579 | | **Total royalty and license revenue** | **$5,047** | **$85,335** | - The company recorded a **$6.9 million deposit** related to pending litigation with Samsung, paid in April 2019 following an arbitration award, with expected reimbursement upon appeal success[58](index=58&type=chunk)[92](index=92&type=chunk)[93](index=93&type=chunk) - An ongoing legal dispute with LG Electronics (LGE) concerns withholding taxes imposed by Korean tax authorities, with the company appealing a ruling and believing LGE's claims lack merit[94](index=94&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes Q1 2019 revenue decline to lower fixed-fee and per-unit royalties, increased legal expenses, and negative operating cash flow Revenue Comparison (in thousands) | Revenue Type | Q1 2019 | Q1 2018 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Fixed fee license revenue | $1,740 | $75,756 | $(74,016) | (98)% | | Per-unit royalty revenue | $3,307 | $9,579 | $(6,272) | (65)% | | **Total revenues** | **$5,122** | **$85,416** | **$(80,294)** | **(94)%** | - The decrease in fixed fee license revenue was primarily due to material license agreements with mobility customers in Q1 2018[108](index=108&type=chunk) - Per-unit royalty revenue decreased mainly due to a **$5.1 million decline in automotive royalties**, as certain 2018 agreements recognized minimum royalty provisions upfront[107](index=107&type=chunk) - General and administrative expenses increased by **$1.5 million (13%)**, primarily due to a **$1.2 million rise in legal expenses** for IP portfolio protection[114](index=114&type=chunk) - Cash, cash equivalents, and short-term investments totaled **$117.6 million** at March 31, 2019, a **$7.3 million decrease** from year-end 2018, driven by a **$93.8 million negative swing** in operating cash flow[123](index=123&type=chunk)[125](index=125&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces interest rate risk on investments, while foreign currency risk is immaterial due to U.S. dollar-denominated transactions - The company's **$117.6 million** in cash equivalents and short-term investments are subject to interest rate fluctuations, where a **100 basis point increase** would decrease fair value by approximately **$72,000**[132](index=132&type=chunk) - Foreign currency exchange rate risk is limited as most international revenues and expenses are denominated in U.S. dollars, and the company does not use hedging instruments[134](index=134&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls as of March 31, 2019, with no material changes to internal financial reporting controls - Management concluded that disclosure controls and procedures were effective as of March 31, 2019, ensuring timely recording, processing, and reporting of required information[136](index=136&type=chunk) - No material changes to internal controls over financial reporting occurred during the quarter[137](index=137&type=chunk) PART II OTHER INFORMATION This section covers Immersion Corporation's legal proceedings, key business risk factors, and required exhibits [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is engaged in costly patent infringement lawsuits against Samsung and Motorola, facing IPR challenges and a Korean tax dispute - Immersion is actively litigating patent infringement against Samsung in the U.S. District Court for the Eastern District of Texas and in Mannheim, Germany, regarding haptic feedback technology in touchscreen phones[141](index=141&type=chunk)[168](index=168&type=chunk) - Samsung has filed multiple petitions for Inter Partes Review (IPR) with the USPTO, challenging the validity of several Immersion patents asserted in litigation, with institution granted for review on a number of these patents[145](index=145&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - A separate patent infringement lawsuit is ongoing against Motorola in the U.S. District Court for the District of Delaware, with Motorola also filing IPR petitions and seeking to join Samsung's existing IPR proceedings[152](index=152&type=chunk)[157](index=157&type=chunk) - An arbitration panel ordered Immersion to pay Samsung approximately **$6.9 million** plus costs in a Korean withholding tax dispute, which was paid in April 2019, but Immersion is appealing the underlying tax assessment and expects reimbursement if successful[164](index=164&type=chunk)[165](index=165&type=chunk) [Risk Factors](index=33&type=section&id=Item%201A.%20Risk%20Factors) Key risks include licensing dependence, revenue concentration, costly IP litigation, international tax challenges, and potential for continued operating losses - Revenue growth is highly dependent on securing new and renewed licensing arrangements, with ASC 606 adoption making fixed license fee revenue less predictable[173](index=173&type=chunk) - Revenue is concentrated, with two customers accounting for **20% and 13% of total revenues** for the three months ended March 31, 2019, making the loss of a major customer a significant risk[174](index=174&type=chunk) - Ongoing litigation against companies like Samsung and Motorola is expensive, disruptive, and time-consuming, diverting management attention and consuming significant cash resources without guaranteed success[177](index=177&type=chunk) - The company faces risks related to its international corporate structure and tax positions, exemplified by the **$6.9 million payment** to Samsung following an arbitration award in a Korean tax dispute[192](index=192&type=chunk) - The company had an accumulated deficit of **$109.5 million** as of March 31, 2019, and may not return to consistent profitability due to ongoing expenses in R&D, sales & marketing, and IP enforcement[187](index=187&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including CEO and CFO Sarbanes-Oxley certifications and XBRL interactive data files - The report includes certifications from CEO Ramzi Haidamus and Interim CFO Anne Marie Peters, as required by the Sarbanes-Oxley Act[233](index=233&type=chunk) - Interactive Data Files (XBRL documents) are filed herewith, providing structured financial data[233](index=233&type=chunk)

Part I [Business](index=5&type=section&id=Item%201.%20Business) Immersion Corporation licenses haptic technology, adding touch to digital experiences across mobility, gaming, and automotive markets, leveraging over 3,400 patents - Immersion's primary business is licensing haptic technologies for mobility, gaming, and automotive markets, with an estimated presence in over **3 billion** devices worldwide[13](index=13&type=chunk) - The company's business strategy is built on three pillars: Innovating and patenting new haptic technologies, driving market adoption through partnerships, and monetizing its IP portfolio through licensing[16](index=16&type=chunk)[17](index=17&type=chunk) - As of December 31, 2018, the company's intellectual property portfolio included over **3,400** issued or pending patents worldwide, a core asset for its licensing model[14](index=14&type=chunk)[32](index=32&type=chunk)[59](index=59&type=chunk) - Key licensees include major technology companies such as Apple, LG Electronics, Google, Microsoft, and Nintendo, as well as automotive suppliers like Continental and Bosch[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) Market Area Revenue Percentage | Market Area | 2018 Revenue % | 2017 Revenue % | 2016 Revenue % | | :--- | :--- | :--- | :--- | | Mobile Communications, Wearables, and Consumer Electronics | 81% | 49% | 57% | | Automotive | 13% | 15% | 7% | | Console and PC Gaming | 5% | 30% | 24% | | Medical | 1% | 6% | 12% | [Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks, including heavy reliance on a limited number of customers, high litigation costs, and revenue volatility from ASC 606 adoption - A limited number of customers account for a significant portion of revenue; Apple Inc. accounted for **69%** of total revenues in 2018, while Samsung accounted for **60%** in 2016 with no renewal agreement for products released after December 31, 2015[73](index=73&type=chunk)[74](index=74&type=chunk) - The company is engaged in expensive and time-consuming litigation to enforce its intellectual property rights against companies with significantly greater financial resources, such as Samsung and Motorola, with uncertain outcomes[77](index=77&type=chunk) - The adoption of the new revenue standard, ASC 606, effective January 1, 2018, causes a substantial portion of fixed license fee revenue to be recognized upfront, leading to less predictability in revenue compared to historical periods[72](index=72&type=chunk)[125](index=125&type=chunk) - The company faces risks related to its 2015 corporate reorganization and international tax structure, including an ongoing arbitration with Samsung over a **$6.3 million** claim for withholding taxes imposed by Korean authorities[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - The company has experienced turnover in senior management, including a new CEO who joined in January 2019, which could lead to operational inefficiencies and added costs[89](index=89&type=chunk) [Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[131](index=131&type=chunk) [Properties](index=21&type=section&id=Item%202.%20Properties) Immersion leases its corporate headquarters in San Jose, California, an R&D facility in Montreal, Canada, and smaller office spaces internationally - The company's corporate headquarters is a leased facility of approximately **42,000 square feet** in San Jose, California, with the lease expiring in April 2023[132](index=132&type=chunk) - A key research and development facility of approximately **10,000 square feet** is leased in Montreal, Quebec, Canada, with the lease expiring in February 2024[133](index=133&type=chunk) [Legal Proceedings](index=21&type=section&id=Item%203.%20Legal%20Proceedings) This section details significant legal activities, dominated by patent infringement litigation, including settlements with Apple and Fitbit, and ongoing cases against Samsung and Motorola - Reached a settlement with Apple in January 2018, resolving all pending litigation, including ITC investigations and district court cases, which were subsequently terminated[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - Reached a global settlement with Fitbit in July 2018, resulting in the dismissal of patent infringement lawsuits in both the U.S. and China[169](index=169&type=chunk)[171](index=171&type=chunk) - Engaged in ongoing patent infringement litigation against Samsung in the U.S. District Court for the Eastern District of Texas, with a jury selection scheduled for May 2019, while Samsung has also filed petitions for Inter Partes Review (IPR) of the asserted patents[173](index=173&type=chunk)[176](index=176&type=chunk)[177](index=177&type=chunk) - Involved in an arbitration with Samsung, which is demanding reimbursement of approximately **$6.9 million** plus interest for withholding taxes and penalties imposed by Korean tax authorities, with a final award expected by February 28, 2019[186](index=186&type=chunk) - Filed a new patent infringement lawsuit against Samsung Electronics GmbH in Germany in February 2019[190](index=190&type=chunk) [Mine Safety Disclosures](index=30&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[191](index=191&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=31&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Immersion's common stock trades on Nasdaq under 'IMMR', with no anticipated cash dividends or share repurchases in 2018 - The company's common stock is traded on the Nasdaq Global Market under the symbol "IMMR"[194](index=194&type=chunk) - The company does not anticipate paying cash dividends in the foreseeable future[196](index=196&type=chunk) - There were no purchases of the company's common stock by or on behalf of the company during the year ended December 31, 2018[198](index=198&type=chunk) [Selected Financial Data](index=33&type=section&id=Item%206.%20Selected%20Financial%20Data) This section provides a five-year summary of Immersion's consolidated financial data, noting that 2018 data under ASC 606 is not directly comparable to prior years under ASC 605 - Effective January 1, 2018, the company adopted ASC 606 using the modified retrospective method, making financial data for 2018 not directly comparable to 2014-2017 data prepared under ASC 605[207](index=207&type=chunk) Selected Financial Data (in thousands, except per share data) | (in thousands, except per share data) | 2018 | 2017 | 2016 | 2015 | 2014 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $110,979 | $35,013 | $57,086 | $63,393 | $52,937 | | **Operating income (loss)** | $53,101 | $(45,422) | $(15,263) | $4,719 | $5,967 | | **Net income (loss)** | $54,343 | $(45,291) | $(39,381) | $2,858 | $4,123 | | **Diluted net income (loss) per share** | $1.73 | $(1.55) | $(1.37) | $0.10 | $0.14 | | **Total assets** | $145,995 | $51,975 | $103,767 | $105,415 | $97,521 | | **Total stockholders' equity** | $99,660 | $9,657 | $55,340 | $86,615 | $76,603 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a **217%** revenue increase in 2018 to **$111.0 million**, largely driven by new fixed-fee license agreements and ASC 606 adoption, with improved liquidity to **$124.9 million** [Critical Accounting Policies and Estimates](index=35&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The company's critical accounting policies involve significant judgment and estimates, particularly in revenue recognition under ASC 606 and accounting for income taxes - The adoption of ASC 606 requires significant judgment, especially for fixed-fee license agreements with multiple performance obligations, necessitating allocation of transaction price between existing and evolving patent portfolios[214](index=214&type=chunk)[215](index=215&type=chunk) - Under ASC 606, per-unit royalty revenue is now accrued based on estimates of licensee sales in the current quarter, rather than being recognized a quarter in arrears, requiring management to estimate sales and resulting in true-up adjustments in subsequent quarters[219](index=219&type=chunk)[220](index=220&type=chunk) - Accounting for income taxes is complex due to multinational operations and the need to assess the realizability of deferred tax assets, with a valuation allowance maintained against most U.S. and certain foreign deferred tax assets[229](index=229&type=chunk)[231](index=231&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) For 2018, total revenues surged **217%** to **$111.0 million** from **$35.0 million** in 2017, primarily due to a **$71.0 million** increase in fixed-fee license revenue, significantly impacted by ASC 606 which accounted for a **$68.1 million** increase, leading to a net income of **$54.3 million** from a **$45.3 million** net loss Revenue Type (in thousands) | Revenue Type (in thousands) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Fixed fee license revenue | $83,573 | $12,575 | $30,389 | | Per-Unit royalty revenue | $26,984 | $21,514 | $25,641 | | **Total royalty and license revenue** | **$110,557** | **$34,089** | **$56,030** | | Development, services, and other | $422 | $924 | $1,056 | | **Total revenues** | **$110,979** | **$35,013** | **$57,086** | - The adoption of ASC 606 in 2018 had a significant impact, increasing reported revenues by **$76.6 million** compared to what would have been reported under the old standard (ASC 605), including a **$68.1 million** impact on fixed-fee licenses and an **$8.5 million** impact on per-unit royalties[237](index=237&type=chunk)[242](index=242&type=chunk) Expense Type (in thousands) | Expense Type (in thousands) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | Sales and marketing | $6,118 | $13,516 | $14,613 | | Research and development | $9,727 | $11,759 | $13,388 | | General and administrative | $41,815 | $53,343 | $44,151 | | Restructuring Costs | $0 | $1,620 | $0 | - General and administrative expenses decreased by **$11.5 million** (**22%**) in 2018 compared to 2017, primarily due to a **$12.7 million** decrease in legal expenses after settling litigation with Apple and Fitbit[261](index=261&type=chunk) - The company recorded an income tax provision of **$392,000** in 2018, resulting in an effective tax rate of **0.7%**, with a full valuation allowance maintained against most federal, state, and certain foreign net deferred tax assets[266](index=266&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened significantly in 2018, with cash and investments increasing by **$78.4 million** to **$124.9 million**, driven by **$69.9 million** in net cash from operating activities, a major improvement from the **$43.8 million** used in 2017 Cash, Cash Equivalents, and Short-Term Investments (in millions) | (in millions) | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | Cash, cash equivalents, and short-term investments | $124.9 | $46.5 | - Net cash provided by operating activities was **$69.9 million** in 2018, compared to net cash used in operating activities of **$43.8 million** in 2017, with the **$113.8 million** positive change driven by higher net income and changes in deferred revenue related to ASC 606 adoption[279](index=279&type=chunk) - As of December 31, 2018, approximately **$33.4 million** remained available under the company's authorized share repurchase program[282](index=282&type=chunk) - The company's contractual obligations as of December 31, 2018, consist solely of operating leases totaling **$4.8 million**[283](index=283&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks, primarily from interest rate changes affecting its investment portfolio, with a hypothetical **100 basis point** increase resulting in an approximate **$28,000** decrease in fair value - The company's primary market risk is interest rate fluctuation on its **$95.4 million** portfolio of cash equivalents and short-term investments as of December 31, 2018[285](index=285&type=chunk) - A hypothetical **100 basis point** increase in interest rates would decrease the fair value of the company's cash equivalents and short-term investments by approximately **$28,000** as of year-end 2018[285](index=285&type=chunk) - Foreign currency exchange rate risk is not considered material as the vast majority of revenue and expense activities are transacted in U.S. dollars, and the company does not use hedging instruments[287](index=287&type=chunk) [Financial Statements and Supplementary Data](index=46&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements for 2016-2018 and the independent auditor's report, highlighting the change in revenue accounting due to ASC 606 adoption - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements and on the company's internal control over financial reporting[291](index=291&type=chunk)[292](index=292&type=chunk) - The auditor's report includes an explanatory paragraph noting the change in accounting for revenue from contracts with customers due to the adoption of ASC 606 on January 1, 2018[293](index=293&type=chunk) Consolidated Balance Sheet (in thousands) | (in thousands) | Dec 31, 2018 | Dec 31, 2017 | | :--- | :--- | :--- | | **Total Current Assets** | $135,825 | $48,080 | | **Total Assets** | $145,995 | $51,975 | | **Total Current Liabilities** | $15,345 | $19,100 | | **Total Liabilities** | $46,335 | $42,318 | | **Total Stockholders' Equity** | $99,660 | $9,657 | Consolidated Statements of Operations (in thousands) | (in thousands) | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | | **Total Revenues** | $110,979 | $35,013 | $57,086 | | **Operating Income (Loss)** | $53,101 | $(45,422) | $(15,263) | | **Net Income (Loss)** | $54,343 | $(45,291) | $(39,381) | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=82&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on any matter of accounting principles or practices, or financial statement disclosure - None[443](index=443&type=chunk) [Controls and Procedures](index=82&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2018, with new controls implemented for ASC 606 adoption - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of December 31, 2018[444](index=444&type=chunk) - Management's annual report on internal control over financial reporting concluded that such controls were effective as of December 31, 2018[446](index=446&type=chunk)[447](index=447&type=chunk) - In 2018, the company implemented changes to its internal controls over financial reporting in conjunction with the adoption of the new revenue recognition standard, ASC 606[449](index=449&type=chunk) [Other Information](index=83&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[450](index=450&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=85&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding executive officers is provided in Part I, with all other required information concerning directors and corporate governance incorporated by reference from the 2019 Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement for its 2019 annual stockholders' meeting[461](index=461&type=chunk) [Executive Compensation](index=85&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive and director compensation, including the Compensation Discussion and Analysis, is incorporated by reference from the company's 2019 Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement for its 2019 annual stockholders' meeting[462](index=462&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=85&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership by certain beneficial owners and management, as well as details on equity compensation plans, is incorporated by reference from the company's 2019 Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement for its 2019 annual stockholders' meeting[463](index=463&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=85&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning certain relationships, related person transactions, and director independence is incorporated by reference from the company's 2019 Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement for its 2019 annual stockholders' meeting[464](index=464&type=chunk) [Principal Accounting Fees and Services](index=85&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding the fees paid to and services provided by the principal independent registered public accounting firm is incorporated by reference from the company's 2019 Proxy Statement - Information required by this item is incorporated by reference from the company's definitive Proxy Statement for its 2019 annual stockholders' meeting[465](index=465&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=86&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Form 10-K, including material contracts, equity plans, and CEO/CFO certifications - Lists the financial statements and schedules filed with the report[468](index=468&type=chunk)[469](index=469&type=chunk) - Includes a list of filed exhibits, such as material contracts, equity plans, and executive agreements; notably, the Settlement and License Agreement with Apple Inc. is listed as Exhibit 10.31[471](index=471&type=chunk)[474](index=474&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are filed as exhibits[476](index=476&type=chunk) [Form 10-K Summary](index=92&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports no Form 10-K summary - None[478](index=478&type=chunk)

Immersion Corporation (NASDAQ:IMMR) Q4 2018 Earnings Conference Call February 26, 2019 5:00 PM ET Company Participants Jennifer Jarman - The Blueshirt Group Ramzi Haidamus - Chief Executive Officer Nancy Erba - Chief Financial Officer Conference Call Participants Charlie Anderson - Dougherty & Company. Anthony Stoss - Craig-Hallum Josh Nichols - B. Riley FBR Operator Good day and welcome to the Immersion Corporation Q4 2018 Earnings Conference Call. Today's conference is being recorded. At this time, I woul ...