Immersion Corporation (IMMR) SEC Filings & Earnings Calls

Material weaknesses in internal control over financial reporting

“the Company’s disclosure controls and procedures were ineffective at the reasonable assurance level as of July 31, 2026 due to the material weaknesses in internal control over financial reporting related to Barnes & Noble Education’s control environment, risk assessment, information and communication, monitoring, and multiple control activities” · word for word

BNED ownership change limits tax attribute utilization

“It was determined that an ownership change occurred under Section 382 and 383 of the Code, and the corresponding annual limitations materially impact the utilization of Barnes & Noble Education’s tax attributes including its $195.8 million NOL carryforwards, $44.3 million disallowed interest expense carryforwards, and $1.1 million tax credit carryforwards” · word for word

Valve IPR proceedings risk

“On June 12, 2025, the PTAB issued final written decisions determining all challenged claims unpatentable for both IPRs” · word for word

Korean withholding tax liability

“Immersion reimbursed Samsung in December 2025 for the full amount of the withholding taxes paid. The total amount reimbursed by Immersion, including related surcharges and local withholding components, was approximately $9.7 million” · word for word

Revenue concentration on IP licensing and litigation outcomes

“Given the inherent volatility of the Company’s revenue, which depends significantly on the timing and outcome of licensing negotiations and IP litigation, traditional performance metrics may not accurately capture management’s effectiveness.” · word for word

CEO compensation heavily equity-based with time-based vesting

“The Compensation Committee determined to grant time-based RSUs rather than performance-based equity awards in FY 2026 because the Compensation Committee believes that given the Company’s current size, strategic priorities, and focus on growing shareholder equity, time-based vesting provides appropriate alignment with long-term stockholder interests while sup” · word for word

Low say-on-pay support (56.8%)

“At the annual meeting of our stockholders held in April 2026, approximately 56.8% of the total stockholders’ votes cast were voted in favor of the fiscal 2025 compensation of our named executive officers.” · word for word

FY net income declined sharply despite revenue growth, driven by higher operating expenses and possibly lower margins from Barnes & Noble Education consolidation.

“GAAP Net income attributable to Immersion stockholders was $4.5 million for FY2026 vs $64.3 million for FY2025, a 93% decline.”

Ownership in Barnes & Noble Education reduced from 42% to 32.6% due to additional share issuances, potentially diluting influence and returns.

“As of April 30, 2026, Immersion’s stock ownership had reduced to 32.6% as a result of additional issuances of Barnes & Noble Education’s common stock to noncontrolling stockholders.” · word for word

Customer concentration risk

“A limited number of customers account for a significant portion of our revenue, and the loss of major customers could harm our operating results.” · word for word

Component shortage risk

“Shortages of electronic components may cause a decrease in production and sales of our customers’ products which could result in lower royalties payable to us.” · word for word

Litigation risk

“We are or may become involved in litigation to enforce our IP rights (or defend against assertions that we violate a third party’s IP), or to resolve conflicts over license terms in our license agreements, and the costs thereof could adversely affect our business.” · word for word

No material risk signals.

Previous non-compliance risk now resolved.

“the matter is now closed.” · word for word

Immersion revenue concentration risk

“Immersion Royalty and license $ 3,396 $ 8,437 $ 13,028 $ 70,989” · word for word

Barnes & Noble Education margin pressure

“Barnes & Noble Education operating income $4.2M vs $31.8M in prior-year quarter, -87% YoY”

Delisting risk due to failure to file Form 10-Q; conditional extension granted but compliance deadline is near.

“failure to file its Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2026 ... could serve as an additional basis for delisting.” · word for word

Immersion Revenue Decline

“Immersion Royalty and license $5,760 (2025) vs $14,127 (2024) for three months, a decline of 59.2%”

Segment Operating Income Decline

“Both segments saw operating income decline: Immersion -71.8%, Barnes & Noble Education -38.4%”

Restructuring Charges

“Restructuring and other charges $4,296 (2025) vs $59 (2024) for three months”

Delisting risk due to multiple late filings; hearing outcome uncertain.

“failure to file its Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2026... could serve as an additional basis for delisting” · word for word

Patent invalidation risk

“On June 12, 2025, the PTAB issued final written decisions determining all challenged claims unpatentable for both IPRs, and we filed a notice of appeal in IPR2024-00478 on August 14, 2025, with an opening Federal Circuit brief filed January 29, 2026.” · word for word

Revenue concentration and volatility

“Fixed fee license revenue decreased in the first quarter of the current year by $44.6 million, compared to the comparable period of the prior year, primarily due to a decrease in mobility license revenue as a result of the one-time perpetual license agreements entered in the first quarter of the prior year.” · word for word

Material weaknesses in internal controls

“The Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were ineffective at the reasonable assurance level as of July 31, 2025, due to the material weaknesses in internal control over financial reporting.” · word for word

Korean tax liability

“The total amount reimbursed by Immersion, including related surcharges and local withholding components, was approximately $9.7 million, based on the applicable KRW/USD exchange rate at the time of settlement.” · word for word

Barnes & Noble Education debt covenant compliance

“Barnes & Noble Education entered into a series of limited consent and waiver agreements with the lenders under its asset-based revolving credit facility to extend certain financial reporting deadlines.” · word for word

Internal control material weakness

“management concluded our disclosure controls and procedures and internal control over financial reporting were not effective as of April 30, 2025.” · word for word

Customer concentration

“a limited number of customers account for a significant portion of our revenue, and the loss of major customers could harm our operating results.” · word for word

Patent litigation risk

“We are or may become involved in litigation to enforce our IP rights (or defend against assertions that we violate a third party’s IP), or to resolve conflicts over license terms in our license agreements, and the costs thereof could adversely affect our business.” · word for word

Restatement Risk

“On September 8, 2025, the Board concluded that the Company’s previously-issued unaudited condensed consolidated financial statements for the fiscal third quarter and nine months ended January 31, 2025, the fiscal second quarter and six months ended October 31, 2024, and the second quarter and six months ended June 30, 2024, contained in its Quarterly Reports” · word for word

Key Person Dependency

“Mr. Singer has played the primary role in our Company’s transformation, new cost structure, capital allocation strategy (in combination with Mr. Martin’s efforts as Chief Strategy Officer), active management of the business and his initiation and leadership role in the litigation efforts to enforce the Company’s intellectual property.” · word for word

Restatement and delayed filings increase risk of Nasdaq delisting and regulatory penalties.

“Company delayed filing annual and quarterly reports due to audit committee investigations and restatement.”

Delisting risk due to non-compliance with Nasdaq filing rule; restatement of previously issued financials.

“Company received Staff Determination Letter from Nasdaq for non-compliance with Filing Rule; delayed reports due to restatement.”

High risk of delisting from Nasdaq due to continued non-compliance with filing requirements.

“Three consecutive late filings; Nasdaq notification; restatement ongoing.”

Standstill agreement limits investor group to 9.99% ownership; dividend increase may strain cash flow if earnings decline.

“Standstill restricts ownership to 9.99%; dividend increase to $0.075 per share.”

Adoption of poison pill may indicate perceived takeover threat or management entrenchment.

“Rights Agreement, dated November 7, 2025, between Immersion Corporation and Computershare Trust Company, N.A., as Rights Agent” · word for word