Immersion Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Immersion Corp. filed its 2023 10-K, detailing executive compensation, stock performance metrics, and financial reporting.</b>

AI Summary

IMMERSION CORP (IMMR) filed a Annual Report (10-K) with the SEC on March 11, 2024. The company filed its 2023 Form 10-K on March 11, 2024, reporting on its fiscal year ending December 31, 2023. The filing details performance-based restricted stock units with vesting tied to stock price milestones and continued employment. Immersion Corp. is incorporated in Delaware and operates in the Computer Peripheral Equipment sector. The company's business and mailing address is located at 2999 N. E. 191st Street, Suite 610, Aventura, FL 33180. The filing references various financial statement items including common stock, treasury stock, and accumulated other comprehensive income.

Why It Matters

For investors and stakeholders tracking IMMERSION CORP, this filing contains several important signals. This 10-K filing provides investors with a comprehensive overview of Immersion Corp.'s financial health, operational performance, and executive compensation structures for the fiscal year 2023. Understanding the details of performance-based stock units and their vesting conditions is crucial for assessing potential dilution and future executive incentives.

Risk Assessment

Risk Level: low — IMMERSION CORP shows low risk based on this filing. The filing is a standard 10-K annual report, which typically contains routine financial and operational disclosures without immediate, significant market-moving information.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Immersion Corp.'s performance and outlook for the upcoming fiscal year.

Key Numbers

• 20231231 — CONFORMED PERIOD OF REPORT (Fiscal year end)
• 20240311 — FILED AS OF DATE (Filing date)
• 19980602 — DATE OF NAME CHANGE (Former company name change)
• 3 — year vesting period (Performance-based restricted stock units)

Key Players & Entities

• IMMERSION CORP (company) — FILER
• 0001058811 (company) — CENTRAL INDEX KEY
• 3577 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• FL (company) — STATE OF INCORPORATION
• 2999 N. E. 191ST STREET (company) — BUSINESS ADDRESS
• AVENTURA (company) — BUSINESS ADDRESS CITY
• 33180 (company) — BUSINESS ADDRESS ZIP

FAQ

Industry Context

Immersion Corp. operates in the Computer Peripheral Equipment sector, which involves the design, development, and licensing of haptic feedback technology.

Regulatory Implications

The company is subject to standard SEC regulations for public companies, including the requirement to file annual reports (10-K) detailing financial performance and business operations.

What Investors Should Do

1. Analyze the financial statements for revenue trends and profitability.
2. Examine executive compensation details and stock performance metrics.
3. Review any disclosed risk factors for potential business impacts.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value IMMR NASDAQ Global Market

Filing Documents

• immr-20231231.htm (10-K) — 2184KB
• ex211_1.htm (EX-21.1) — 8KB
• ex231_2.htm (EX-23.1) — 6KB
• ex311_3.htm (EX-31.1) — 8KB
• ex312_4.htm (EX-31.2) — 8KB
• ex321_5.htm (EX-32.1) — 5KB
• ex322_6.htm (EX-32.2) — 5KB
• ex971_7.htm (EX-97.1) — 19KB
• 0001213900-24-021235.txt (&nbsp;) — 11427KB
• immr-20231231.xsd (EX-101.SCH) — 64KB
• immr-20231231_cal.xml (EX-101.CAL) — 141KB
• immr-20231231_def.xml (EX-101.DEF) — 416KB
• immr-20231231_lab.xml (EX-101.LAB) — 1182KB
• immr-20231231_pre.xml (EX-101.PRE) — 668KB
• immr-20231231_htm.xml (XML) — 1882KB

Business

Business 5 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 31 Item 3.

Legal Proceedings

Legal Proceedings 31 Item 4. Mine Safety Disclosures 34 PART II 35 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 35 Item 6. Reserved 36 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 44 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 45 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 84 Item 9A. Control and Procedures 84 Item 9B. Other Information 84 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 84 PART III 85 Item 10. Directors, Executive Officers and Corporate Governance 85 Item 11.

Executive Compensation

Executive Compensation 85 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 85 Item 13. Certain Relationships and Related Transactions, and Director Independence 85 Item 14. Principal Accounting Fees and Services 85 PART IV Item 15. Exhibits, Financial Statement Schedules 86 Item 16. Form 10-K Summary 89

SIGNATURES

SIGNATURES 90 1 Table of Contents

Forward-looking Statements

Forward-looking Statements In addition to historical information this Annual Report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The forward-looking statements involve risks and uncertainties. Forward-looking statements are frequently identified by words such as "anticipates," "believes," "expects," "intends," "may," "can," "will," "places," "estimates," and other similar expressions. However, these words are not the only way we identify forward-looking statements. Examples of forward-looking statements include among other things, any expectations, projections, or other characterizations of future events, or circumstances, and include statements regarding: our strategy and our ability to execute our business plan; our competition and the market in which we operate; our customers and suppliers; our revenue and trends related thereto, and the recognition and components thereof; our costs and expenses; including our investment of surplus funds and sales of marketable debt securities seasonality and demand; our investment in research and technology development; changes to general and administrative expenses; our foreign operations and the reinvestment of our earnings related thereto; our investment in and protection of our intellectual property ( "IP" ) ; our employees; and the sufficiency of our capital resources; unrecognized tax benefit and tax liabilities; the impact of changes in interest rates and foreign exchange rates, as well as our plans with respect to foreign currency hedging in general; changes in laws and regulations; including with respect to taxes; our plans and estimates related to and the impact of current and future litigation and arbitration; our leases, sublease and the timing and income related thereto; and our dividend, stock repurchase and equity distribu

Business

Item 1. Business Overview Immersion Corporation (the "Company", "Immersion", "we", or "us") is a premier licensing company focused on the invention, acceleration, and scaling, through licensing, of innovative haptic technologies that allow people to use their sense of touch to engage with products and experience the digital world around them. We are one of the leading experts in haptics, and our focus on innovation allows us to deliver world-class IP and technology that enables the creation of products that delight end users. Our technologies are designed to facilitate the creation of high-quality haptic experiences, enable their widespread distribution, and ensure that their playback is optimized. Our primary business is currently in the mobility, gaming, and automotive markets, but we believe our technology is broadly applicable and see opportunities in evolving new markets, including virtual and augmented reality, and wearables, as well as residential, commercial, and industrial Internet of Things. In recent years, we have seen a trend towards broad market adoption of haptic technology. As other companies follow our leadership in recognizing how important tactile feedback can be in people's digital lives, we expect the opportunity to license our IP and technologies will continue to expand. We have adopted a business model under which we offer licenses to our patented technology to our customers and offer our customers enabling software, related tools and technical assistance designed to integrate our patented technology into our customers' products or enhance the functionality of our patented technology. Our licenses enable our customers to deploy haptically enabled devices, content and other offerings, which they typically sell under their own brand names. We and our wholly-owned subsidiaries hold just under 1,000 issued or pending patents worldwide as of December 31, 2023 . Our patents cover a wide range of digital technologies and ways in which touch-rel

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View this 10-K filing on SEC EDGAR