##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2010
 OR
 o
    
    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: 0-30907
 iGo, Inc.
 (Exact name of registrant as specified in its charter)
 Delaware
    
    86-0843914(State or Other Jurisdiction of
    
    (IRS Employer Identification No.)Incorporation or Organization)
 17800 N. Perimeter Dr., Suite 200, Scottsdale, Arizona
    
    85255(Address of Principal Executive Offices)
    
    (Zip Code)
 (480) 596-0061  (Registrants telephone number, including area code)
 Not applicable  (Former name, former address, and former fiscal year if changed since last report)
  þ o
  o o
  Large Accelerated Filer o
    
    Accelerated Filer o
    
    Non-Accelerated Filer o
(Do not check if a smaller reporting company)
    
    Smaller Reporting Company þ
  o þ




---



##### 



IGO, INC.
FORM 10-Q
 TABLE OF CONTENTS
 PAGE NO.PART I FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements:
    
    
    1Condensed Consolidated Balance Sheets
    
    
    1Condensed Consolidated Statements of Operations
    
    
    2Condensed Consolidated Statements of Cash Flows
    
    
    3Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    13Item 3. Quantitative and Qualitative Disclosures About Market
Risk
    
    
    22Item 4. Controls and Procedures
    
    
    22PART II OTHER INFORMATION
    
    
    22Item 1. Legal Proceedings
    
    
    22Item 1A. Risk Factors
    
    
    22Item 6. Exhibits
    
    
    23SIGNATURES
    
    
    24EXHIBIT INDEX
    
    
    25Items 2, 3, 4 and 5 are not applicable.EX-31.1EX-31.2EX-32.1
  i




---



##### Table of Contents



PART I FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS:
 IGO, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED BALANCE SHEETS  (In thousands, except share amounts)  (unaudited)
 March 31,
    
    
    December 31,2010
    
    
    2009As recastASSETSCurrent assets:Cash and cash equivalents
    
    $
    13,790
    
    
    $
    19,775Short-term investments
    
    
    19,394
    
    
    
    12,777Accounts receivable, net
    
    
    5,445
    
    
    
    5,109Note receivable, net
    
    
    1,700
    
    
    
    Inventories
    
    
    4,610
    
    
    
    5,964Prepaid expenses and other current assets
    
    
    271
    
    
    
    401Total current assets
    
    
    45,210
    
    
    
    44,026Property and equipment, net
    
    
    712
    
    
    
    835Intangible assets, net
    
    
    946
    
    
    
    1,048Notes receivable and other assets, net
    
    
    152
    
    
    
    268Total assets
    
    $
    47,020
    
    
    $
    46,177LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    3,474
    
    
    $
    3,557Accrued expenses and other current liabilities
    
    
    1,241
    
    
    
    1,424Deferred revenue
    
    
    1,135
    
    
    
    914Total liabilities
    
    
    5,850
    
    
    
    5,895Equity:Common stock, $.01 par value; authorized
90,000,000 shares; 32,696,930 and 32,411,531
shares issued and outstanding at March 31,
2010 and December 31, 2009, respectively
    
    
    327
    
    
    
    324Additional paid-in capital
    
    
    171,212
    
    
    
    171,034Accumulated deficit
    
    
    (130,447
    )
    
    
    (131,216
    )Accumulated other comprehensive income
    
    
    78
    
    
    
    140Total equity
    
    
    41,170
    
    
    
    40,282Total liabilities and equity
    
    $
    47,020
    
    
    $
    46,177
  1




---



##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (In thousands, except per share amounts)  (unaudited)
 Three Months EndedMarch 31,2010
    
    
    2009As recastRevenue
    
    $
    8,168
    
    
    $
    13,412Cost of revenue
    
    
    5,517
    
    
    
    9,515Gross profit
    
    
    2,651
    
    
    
    3,897Operating expenses:Sales and marketing
    
    
    1,771
    
    
    
    1,873Research and development
    
    
    319
    
    
    
    652General and administrative
    
    
    1,636
    
    
    
    2,725Total operating expenses
    
    
    3,726
    
    
    
    5,250Loss from operations
    
    
    (1,075
    )
    
    
    (1,353
    )Other income:Interest income, net
    
    
    56
    
    
    
    92Other income, net
    
    
    1,788
    
    
    
    210Net income (loss)
    
    $
    769
    
    
    $
    (1,051
    )Net income (loss) per share:Basic
    
    $
    0.02
    
    
    $
    (0.03
    )Diluted
    
    $
    0.02
    
    
    $
    (0.03
    )Weighted average common shares outstanding:Basic
    
    
    32,558
    
    
    
    32,087Diluted
    
    
    33,634
    
    
    
    32,087
  2




---



##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In thousands)  (unaudited)
 Three Months EndedMarch 31,2010
    
    
    2009As recastCash flows from operating activities:Net income (loss)
    
    $
    769
    
    
    $
    (1,051
    )Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:Provision for doubtful accounts and sales returns and credits
    
    
    86
    
    
    
    42Depreciation and amortization
    
    
    370
    
    
    
    339Stock compensation expense
    
    
    267
    
    
    
    281Gain on sale of business
    
    
    (1,714
    )
    
    
    Loss on disposal of assets, net
    
    
    
    
    
    
    14Changes in operating assets and liabilities:Accounts receivable and note receivable, current
    
    
    (422
    )
    
    
    (915
    )Inventories
    
    
    1,354
    
    
    
    (349
    )Prepaid expenses and other assets
    
    
    131
    
    
    
    277Accounts payable
    
    
    (83
    )
    
    
    110Accrued expenses and other current liabilities
    
    
    (47
    )
    
    
    94Net cash provided by (used in) operating activities.
    
    
    711
    
    
    
    (1,158
    )Cash flows from investing activities:Purchase of property and equipment
    
    
    (16
    )
    
    
    (98
    )Proceeds from disposal of assets
    
    
    
    
    
    
    11(Purchase) sale of short-term investments, net
    
    
    (6,630
    )
    
    
    2,753Net cash (used in) provided by investing activities.
    
    
    (6,646
    )
    
    
    2,666Cash flows from financing activities:Net cash provided by financing activities
    
    
    
    
    
    
    Effects of exchange rate changes on cash and cash equivalents
    
    
    (50
    )
    
    
    (10
    )Net (decrease) increase in cash and cash equivalents
    
    
    (5,985
    )
    
    
    1,498Cash and cash equivalents, beginning of period
    
    
    19,775
    
    
    
    25,619Cash and cash equivalents, end of period
    
    $
    13,790
    
    
    $
    27,117
  3




---



##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
 (1) Basis of Presentation
     Recent Accounting Pronouncements
    4




---



##### Table of Contents



(2) Mission Deconsolidation
    5




---



##### Table of Contents



December 31, 2009As Reported
    
    
    Adjustments
    
    
    As RecastASSETSCurrent assets:Cash and cash equivalents
    
    $
    20,091
    
    
    $
    (316
    )
    
    $
    19,775Short-term investments
    
    
    12,777
    
    
    
    
    
    
    
    12,777Accounts receivable, net
    
    
    5,692
    
    
    
    (583
    )
    
    
    5,109Inventories
    
    
    6,612
    
    
    
    (648
    )
    
    
    5,964Prepaid expenses and other current assets
    
    
    411
    
    
    
    (10
    )
    
    
    401Total current assets
    
    
    45,583
    
    
    
    (1,557
    )
    
    
    44,026Property and equipment, net
    
    
    890
    
    
    
    (55
    )
    
    
    835Intangible assets, net
    
    
    1,087
    
    
    
    (39
    )
    
    
    1,048Notes receivable and other assets, net
    
    
    174
    
    
    
    94
    
    
    
    268Total assets
    
    $
    47,734
    
    
    $
    (1,557
    )
    
    $
    46,177LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    3,868
    
    
    $
    (311
    )
    
    $
    3,557Accrued expenses and other current liabilities
    
    
    1,667
    
    
    
    (243
    )
    
    
    1,424Deferred revenue
    
    
    965
    
    
    
    (51
    )
    
    
    914Total liabilities
    
    
    6,500
    
    
    
    (605
    )
    
    
    5,895Equity:Total iGo, Inc. common stockholders equity
    
    
    40,310
    
    
    
    (28
    )
    
    
    40,282Non-controlling interest
    
    
    924
    
    
    
    (924
    )
    
    
    Total equity
    
    
    41,234
    
    
    
    (952
    )
    
    
    40,282Total liabilities and equity
    
    $
    47,734
    
    
    $
    (1.557
    )
    
    $
    46,177
 6




---



##### Table of Contents



Three Months EndedMarch 31,As Reported
    
    
    Adjustments
    
    
    As RecastRevenue
    
    $
    14,940
    
    
    $
    (1,528
    )
    
    $
    13,412Cost of revenue
    
    
    10,322
    
    
    
    (807
    )
    
    
    9,515Gross profit
    
    
    4,618
    
    
    
    (721
    )
    
    
    3,897Operating expenses:Sales and marketing
    
    
    2,108
    
    
    
    (235
    )
    
    
    1,873Research and development
    
    
    917
    
    
    
    (265
    )
    
    
    652General and administrative
    
    
    3,018
    
    
    
    (293
    )
    
    
    2,725Total operating expenses
    
    
    6,043
    
    
    
    (793
    )
    
    
    5,250Loss from operations
    
    
    (1,425
    )
    
    
    72
    
    
    
    (1,353
    )Other income:Interest income, net
    
    
    57
    
    
    
    35
    
    
    
    92Other income, net
    
    
    251
    
    
    
    (41
    )
    
    
    210Net loss
    
    
    (1,117
    )
    
    
    66
    
    
    
    (1,051
    )Less: Net loss attributable to non-controlling interest
    
    
    26
    
    
    
    (26
    )
    
    
    Net loss attributable to iGo, Inc
    
    $
    (1,091
    )
    
    $
    40
    
    
    $
    (1,051
    )
 7




---



##### Table of Contents



Three Months EndedMarch 31, 2009As Reported
    
    
    Adjustment
    
    
    As RecastCash flows from operating activities:Net loss attributable to iGo, Inc
    
    $
    (1,091
    )
    
    $
    40
    
    
    $
    (1,051
    )Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:Non-controlling interest
    
    
    (26
    )
    
    
    26
    
    
    
    Provision for doubtful accounts and sales returns and credits
    
    
    42
    
    
    
    
    
    
    
    42Depreciation and amortization
    
    
    358
    
    
    
    (19
    )
    
    
    339Stock compensation expense
    
    
    281
    
    
    
    
    
    
    
    281Loss on disposal of assets, net
    
    
    14
    
    
    
    
    
    
    
    14Changes in operating assets and liabilities:Accounts receivable
    
    
    (821
    )
    
    
    (94
    )
    
    
    (915
    )Inventories
    
    
    (201
    )
    
    
    (148
    )
    
    
    (349
    )Prepaid expenses and other assets
    
    
    128
    
    
    
    149
    
    
    
    277Accounts payable
    
    
    (33
    )
    
    
    143
    
    
    
    110Accrued expenses and other current liabilities
    
    
    26
    
    
    
    68
    
    
    
    94Net cash (used in) provided by operating activities
    
    
    (1,323
    )
    
    
    165
    
    
    
    (1,158
    )Cash flows from investing activities:Purchase of property and equipment
    
    
    (106
    )
    
    
    8
    
    
    
    (98
    )Proceeds from disposal of assets
    
    
    12
    
    
    
    (1
    )
    
    
    11Sale of investments
    
    
    2,752
    
    
    
    1
    
    
    
    2,753Net cash provided by investing activities
    
    
    2,658
    
    
    
    8
    
    
    
    2,666Cash flows from financing activities:Net proceeds from issuance of common stock and exercise
of options and warrants
    
    
    
    
    
    
    
    
    
    
    Net cash provided by financing activities
    
    
    
    
    
    
    
    
    
    
    Effects of exchange rate changes on cash and cash equivalents
    
    
    (10
    )
    
    
    
    
    
    
    (10
    )Net increase in cash and cash equivalents
    
    
    1,325
    
    
    
    173
    
    
    
    1,498Cash and cash equivalents, beginning of period
    
    
    26,139
    
    
    
    (520
    )
    
    
    25,619Cash and cash equivalents, end of period
    
    $
    27,464
    
    
    $
    (347
    )
    
    $
    27,117
 (3) Fair Value Measurement
    (4) Investments
 8




---



##### Table of Contents



March 31, 2010
    
    
    December 31, 2009Net Unrealized
    
    
    
    
    
    
    
    
    
    
    Net UnrealizedHolding Gains
    
    
    
    
    
    
    
    
    
    
    Holding GainsAmortized Cost
    
    
    (Losses)
    
    
    Aggregate Fair Value
    
    
    Amortized Cost
    
    
    (Losses)
    
    
    Aggregate Fair ValueU.S. corporate securities:Commercial paper
    
    $
    3,597
    
    
    $
    
    
    
    $
    3,597
    
    
    $
    3,495
    
    
    $
    
    
    
    $
    3,495Corporate notes and bonds
    
    
    4,469
    
    
    
    (7
    )
    
    
    4,462
    
    
    
    3,278
    
    
    
    
    
    
    
    3,2788,066
    
    
    
    (7
    )
    
    
    8,059
    
    
    
    6,773
    
    
    
    
    
    
    
    6,773U.S. municipal funds
    
    
    5,021
    
    
    
    
    
    
    
    5,021
    
    
    
    5,000
    
    
    
    4
    
    
    
    5,004U.S. government securities
    
    
    6,321
    
    
    
    (7
    )
    
    
    6,314
    
    
    
    1,001
    
    
    
    (1
    )
    
    
    1,000$
    19,408
    
    
    $
    (14
    )
    
    $
    19,394
    
    
    $
    12,774
    
    
    $
    3
    
    
    $
    12,777
 (5) Inventories
  March 31,
    
    
    December 31,2010
    
    
    2009As recastRaw materials
    
    $
    
    
    
    $
    Finished goods
    
    
    4,610
    
    
    
    5,964$
    4,610
    
    
    $
    5,964
 (6) Intangible Assets
  March 31, 2010
    
    
    December 31, 2009As recastAverage
    
    
    Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    NetLife
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible(Years)
    
    
    Assets
    
    
    Amortization
    
    
    Assets
    
    
    Assets
    
    
    Amortization
    
    
    AssetsAmortized intangibleassets:Patents and trademarks
    
    
    3
    
    
    $
    4,096
    
    
    $
    (3,271
    )
    
    $
    825
    
    
    $
    3,967
    
    
    $
    (3,052
    )
    
    $
    915Trade names
    
    
    10
    
    
    
    442
    
    
    
    (321
    )
    
    
    121
    
    
    
    442
    
    
    
    (309
    )
    
    
    133Total
    
    
    
    
    
    $
    4,538
    
    
    $
    (3,592
    )
    
    $
    946
    
    
    $
    4,409
    
    
    $
    (3,361
    )
    
    $
    1,048
  (7) Notes Receivable and Other Assets, Net
  9




---



##### Table of Contents



(8) Stock-based Compensation
   2004 Directors Plan
    
    
    2004 Omnibus Plan
    
    
    Heil GrantWeighted Average
    
    
    
    
    
    
    Weighted Average
    
    
    
    
    
    
    Weighted AverageNumber
    
    
    Value per Share
    
    
    Number
    
    
    Value per Share
    
    
    Number
    
    
    Value per ShareOutstanding, December 31, 2009
    
    
    94,499
    
    
    $
    1.90
    
    
    
    790,194
    
    
    $
    2.58
    
    
    
    625,000
    
    
    $
    2.13Granted
    
    
    
    
    
    
    
    
    
    
    9,000
    
    
    $
    1.20
    
    
    
    
    
    
    
    Canceled
    
    
    
    
    
    
    
    
    
    
    (17,864
    )
    
    $
    3.09
    
    
    
    
    
    
    
    Released to common stock
    
    
    
    
    
    
    
    
    
    
    (199,805
    )
    
    $
    3.53
    
    
    
    (85,594
    )
    
    
    2.13Released for settlement of taxes
    
    
    
    
    
    
    
    
    
    
    (100,572
    )
    
    $
    3.94
    
    
    
    (39,406
    )
    
    
    2.13Outstanding, March 31, 2010
    
    
    94,499
    
    
    $
    1.90
    
    
    
    480,953
    
    
    $
    1.81
    
    
    
    500,000
    
    
    $
    2.13
    10




---



##### Table of Contents



(9) Net Income (Loss) per Share
  Three Months EndedMarch 31,2010
    
    
    2009As recastBasic net income (loss) per share computation:Numerator:Net income (loss)
    
    $
    769
    
    
    $
    (1,051
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,558
    
    
    
    32,087Basic net income (loss) per share:
    
    $
    0.02
    
    
    $
    (0.03
    )Basic and Diluted net loss per share computation:Numerator:Net income (loss)
    
    $
    769
    
    
    $
    (1,051
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,558
    
    
    
    32,087Effect of dilutive stock options, warrants, and restricted stock units
    
    
    1,076
    
    
    
    33,634
    
    
    
    32,087Diluted net income (loss) per share:
    
    $
    0.02
    
    
    $
    (0.03
    )Stock options not included in dilutive loss per share since anti-dilutive
    
    
    35
    
    
    
    211Warrants not included in dilutive loss per share since anti-dilutive
    
    
    5
    
    
    
    600
 (10) Business Segment, Concentration of Credit Risk and Significant Customers
   Three Months EndedMarch 31,2010
    
    
    2009As recastComputer power products
    
    $
    5,081
    
    
    $
    9,665Mobile electronic device power products
    
    
    2,940
    
    
    
    3,654Other
    
    
    147
    
    
    
    93Total revenues
    
    $
    8,168
    
    
    $
    13,412
 Three Months EndedMarch 31,2010
    
    
    2009As recastNorth America (principally United States)
    
    $
    7,182
    
    
    $
    12,184Europe
    
    
    712
    
    
    
    783Asia Pacific
    
    
    274
    
    
    
    445$
    8,168
    
    
    $
    13,412
 11




---



##### Table of Contents



(11) Contingencies
   (12) Subsequent Event
    12




---



##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   
    
    our dependence on large purchases from a significant customer;
 
    
    our ability to expand and diversify our customer base;
 
    
    our ability to expand our revenue base and develop new products
 
    
    our loss or failure to replace any significant retail or distribution
partners;
 
    
    our failure to expand or protect our proprietary rights and
intellectual property;
 
    
    our failure to complete development of products in a timely manner;
 
    
    our failure to achieve the performance criteria required of our
products by our customers;
 
    
    fluctuations in our operating results because of: the timing of new
product and technology introductions and product enhancements relative to our competitors,
market acceptance of our products, the size and timing of customer orders,
 13




---



##### Table of Contents



our ability to
effectively manage inventory levels, delay or failure to fulfill orders for our products
on a timely basis, distribution of or changes in our revenue among distribution partners
and retailers, our inability to accurately forecast
our contract manufacturing needs, difficulties with new product production implementation or
supply chain, our suppliers ability to perform under their contracts with us, product
defects and other product quality problems, the degree and rate of growth in our markets and
the accompanying demand for our products, our ability to expand our internal and external
sales forces and build the required infrastructure to meet anticipated growth, and
seasonality of sales;
 
    
    increased focus on consumer electronics retailers on their own private
label brands;
 
    
    decreasing sales prices on our products over their sales cycles;
 
    
    increased reliance upon RadioShack;
 
    
    the termination of reseller and distributor agreements or reduced or
delayed orders;
 
    
    difficulty in predicting sales to our customers resulting in increased
levels of inventory;
 
    
    lack of visibility to end user customers;
 
    
    resellers and distributors promotion of competitor products;
 
    
    corporate and other sales incentive changes at our resellers and
distributors;
 
    
    our failure to introduce new products and product enhancements that
achieve market acceptance;
 
    
    our failure to integrate acquired businesses, products and
technologies;
 
    
    our failure to protect our intellectual property;
 
    
    intellectual property infringement claims against us;
 
    
    our reliance on and the risk relating to outsourced manufacturing
fulfillment of our products, including potential increases in manufacturing costs;
 
    
    our reliance on sole sources for key components;
 
    
    our ability to manage our anticipated growth;
 
    
    our ability to manage our inventory levels;
 
    
    the negative impacts of product returns;
 
    
    design and performance issues with our products;
 
    
    product liability claims;
 
    
    our ability to hire and retain qualified personnel;
 
    
    our ability to secure additional financing to meet our future capital
needs;
 
    
    increased competition and/or reduced demand in our industry;
 
    
    our failure to comply with domestic and international laws and
regulations;
 14




---



##### Table of Contents




    
    economic conditions, political events, war, terrorism, public health
issues, natural disasters and similar circumstances;
    
    volatility in our stock price;
 
    
    the risk that our common stock could be delisted from Nasdaq;
 
    
    concentration of stock ownership among our executive officers and
principal stockholders;
 
    
    provisions in our certificate of incorporation, bylaws and Delaware
law, as well as our stockholder rights plan, that could make a proposed acquisition of the
Company more difficult; and
 
    
    dilution resulting from potential future stock issuances.
  iGo® and iGo Green® are registered trademarks of iGo, Inc. or its subsidiaries in the United
States and other countries. Other names and brands may be claimed as the property of others.
 Overview
     ®
 15




---



##### Table of Contents



Recent Developments
   Critical Accounting Policies and Estimates
   16




---



##### Table of Contents



Results of Operations
  Three months endedMarch 31,2010
    
    
    2009Revenue
    
    
    100.0
    %
    
    
    100.0
    %Cost of revenue
    
    
    67.5
    %
    
    
    70.9
    %Gross profit
    
    
    32.5
    %
    
    
    29.1
    %Operating expenses:Sales and marketing
    
    
    21.7
    %
    
    
    14.0
    %Research and development
    
    
    3.9
    %
    
    
    4.9
    %General and administrative
    
    
    20.0
    %
    
    
    20.3
    %Total operating expenses
    
    
    45.6
    %
    
    
    39.2
    %Loss from operations
    
    
    -13.1
    %
    
    
    -10.1
    %Other income:Interest, net
    
    
    0.6
    %
    
    
    0.7
    %Other, net
    
    
    21.9
    %
    
    
    1.6
    %Net income (loss)
    
    
    9.4
    %
    
    
    -7.8
    %
 Comparison of Three Months Ended March 31, 2010 and 2009
 Revenue .
 Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Decrease
    
    
    Percentage changeMarch 31,
    
    
    March 31,
    
    
    from same period
    
    
    from the same period2010
    
    
    2009
    
    
    in the prior year
    
    
    in the prior yearRevenue
    
    $
    8,168
    
    
    $
    13,412
    
    
    $
    (5,244
    )
    
    
    (39.1
    )%
  17




---



##### Table of Contents



Cost of revenue, gross profit and gross margin .
 Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Increase/Decrease
    
    
    Percentage changeMarch 31,
    
    
    March 31,
    
    
    from same period
    
    
    from the same period2010
    
    
    2009
    
    
    in the prior year
    
    
    in the prior yearCost of revenue
    
    $
    5,517
    
    
    $
    9,515
    
    
    $
    (3,998
    )
    
    
    (42.0
    )%Gross profit
    
    $
    2,651
    
    
    $
    3,897
    
    
    $
    (1,246
    )
    
    
    (32.0
    )%Gross margin
    
    
    32.5
    %
    
    
    29.1
    %
    
    
    3.4
    %
    
    
    11.7
    %
  Sales and marketing .
 Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Decrease
    
    
    Percentage changeMarch 31,
    
    
    March 31,
    
    
    from same period
    
    
    from the same period2010
    
    
    2009
    
    
    in the prior year
    
    
    in the prior yearSales and marketing
    
    $
    1,771
    
    
    $
    1,873
    
    
    $
    (102
    )
    
    
    (5.4
    )%
  Research and development .
 Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Decrease from
    
    
    Percentage changeMarch 31,
    
    
    March 31,
    
    
    same period
    
    
    from the same period2010
    
    
    2009
    
    
    in the prior year
    
    
    in the prior yearResearch and development
    
    $
    319
    
    
    $
    652
    
    
    $
    (333
    )
    
    
    (51.1
    )%
  18




---



##### Table of Contents



General and administrative.
 Three Months
    
    
    Three MonthsEnded
    
    
    Ended
    
    
    Decrease
    
    
    Percentage changeMarch 31,
    
    
    March 31,
    
    
    from same period
    
    
    from the same period2010
    
    
    2009
    
    
    in the prior year
    
    
    in the prior yearGeneral and administrative
    
    $
    1,636
    
    
    $
    2,725
    
    
    $
    (1,089
    )
    
    
    (40.0
    )%
  Interest income, net.
 Other income, net .
 Income taxes .
 Operating Outlook
    19




---



##### Table of Contents



Liquidity and Capital Resources
 Cash and Cash Flow
     Three Months Ended March 31,2010
    
    
    2009Net cash provided by (used in) operating activities
    
    $
    711
    
    
    $
    (1,158
    )Net cash (used in) provided by investing activities
    
    
    (6,646
    )
    
    
    2,666Net cash provided by financing activities
    
    
    
    
    
    
    Foreign currency exchange impact on cash flow
    
    
    (50
    )
    
    
    (10
    )(Decrease) increase in cash and cash equivalents
    
    $
    (5,985
    )
    
    $
    1,498Cash and cash equivalents at beginning of period
    
    $
    19,775
    
    
    $
    25,619Cash and cash equivalents at end of period
    
    $
    13,790
    
    
    $
    27,117
 
    
    Net cash provided by (used in) operating activities.Cash was provided by
operating activities for the three months ended March 31, 2010 primarily as a result of
net income plus the combined effect of non-cash expenses and sales of inventory,
partially offset by an increase in accounts receivable. For the current fiscal year,
we expect to generate cash from operating activities.
 Our consolidated cash flow operating metrics are as follows:
 Quarter EndedMarch 31,2010
    
    
    2009Days outstanding in ending accounts receivable (DSOs)
    
    
    60
    
    
    
    34Inventory turns
    
    
    5
    
    
    
    10
 The increase in DSOs at March 31, 2010 compared to March 31, 2009 was primarily due
to increases in accounts receivable as a result of our transition to a customer base
consisting largely of retail customers, who generally require longer payment terms, as
well as a lower overall revenue base. We expect DSOs will decrease in 2010 as our
revenue base increases. The decrease in inventory turns was primarily due to the decline
in revenue from sales to RadioShack and Targus, for whom we hold no inventory. We expect
to manage inventory growth during
 20




---



##### Table of Contents



2010 and we expect inventory turns for the remainder of
2010 to remain consistent with the period ended March 31, 2010.
 
    
    Net cash (used in) provided by investing activities.For the three months ended
March 31, 2010, net cash was used in investing activities for purchases of short-term
investments. Our current investment strategy is to continue to invest excess cash in
short-term investments.
 
    
    Net cash provided by financing activities.We had no cash flows from financing
activities during the first quarter of 2010 or 2009.
 Investments.
  Financing Facilities.
 Contractual Obligations.
 Payment due by period2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    More than 5 yearsOperating lease obligations
    
    $
    327
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
    
    
    $
    Inventory Purchase obligations
    
    
    18,506
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Totals
    
    $
    18,833
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
    
    
    $
    
 Off-Balance Sheet Arrangements.
 Acquisitions and Dispositions.
  Net Operating Loss Carryforwards.
 21




---



##### Table of Contents



Liquidity Outlook.
 Recent Accounting Pronouncements
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
    
 ITEM 4. CONTROLS AND PROCEDURES
 Evaluation of Disclosure Controls and Procedures
 Changes in Internal Control Over Financial Reporting
 
 PART II OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
  22




---



##### Table of Contents



ITEM 6. EXHIBITS
  23




---



##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 SIGNATURES
  IGO, INC.Dated: May 6, 2010
    By:
    /s/ Michael D. HeilMichael D. HeilPresident and Chief Executive Officer

(Principal Executive Officer)By:
    /s/ Darryl S. BakerDarryl S. BakerVice President and Chief Financial Officer
and Authorized Officer of Registrant

(Principal Financial Officer) 24




---



##### Table of Contents



EXHIBIT INDEX
 ExhibitNumber
    
    Description of Document3.1
    
    Certificate of Incorporation of the Company (1)3.2
    
    Articles of Amendment to the Certificate of Incorporation of the Company dated as of June 17, 1997 (2)3.3
    
    Articles of Amendment to the Certificate of Incorporation of the Company dated as of September 10, 1997 (1)3.4
    
    Articles of Amendment to the Certificate of Incorporation of the Company dated as of July 20, 1998 (1)3.5
    
    Articles of Amendment to the Certificate of Incorporation of the Company dated as of February 3, 2000 (1)3.6
    
    Articles of Amendment to the Certificate of Incorporation of the Company dated as of March 31, 2000 (2)3.7
    
    Certificate of Designations, Preferences, Rights and Limitations of Series G Junior Participating Preferred
Stock of iGo, Inc. (3)3.8
    
    Certificate of Ownership and Merger Merging iGo Merger Sub Inc. with and into Mobility Electronics, Inc. (4)3.9
    
    Certificate of Elimination of Series C, Series D, Series E, and Series F Preferred Stock of Mobility
Electronics, Inc. (4)3.10
    
    Fourth Amended and Restated Bylaws of the Company (5)10.1
    
    iGo, Inc. 2010 Executive Bonus Plan (6)10.2
    
    Note Repayment and Stock Repurchase Agreement dated April 19, 2010 (7)31.1
    
    Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*31.2
    
    Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*32.1
    
    Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002*
 
 *
    
    Filed/furnished herewith(1)
    
    Previously filed as an exhibit to Registration Statement No. 333-30264 dated February 11,
2000.(2)
    
    Previously filed as an exhibit to Amendment No. 2 to Registration Statement No. 333-30264 on
Form S-1 dated May 4, 2000.(3)
    
    Previously filed as an exhibit to Current Report on Form 8-K filed June 19, 2003.(4)
    
    Previously filed as an exhibit to Current Report on Form 8-K dated May 21, 2008.(5)
    
    Previously filed as an exhibit to Form 10-K for the period ended December 31, 2008.(6)
    
    Previously filed as an exhibit to Current Report on Form 8-K filed April 6, 2010.(7)
    
    Previously filed as an exhibit to Current Report on Form 8-K filed April 21, 2010 25