##### 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 June 30, 2009
 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 Incorporation or
    
    (IRS Employer Identification No.)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
    
    Smaller reporting company þ(Do not check if a smaller reporting company)
  o þ




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##### 



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 Equity and Comprehensive Income (Loss)
    
    
    3Condensed Consolidated Statements of Cash Flows
    
    
    4Notes to Unaudited Condensed Consolidated Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    13Item 3. Quantitative and Qualitative Disclosures About Market
Risk
    
    
    24Item 4. Controls and Procedures
    
    
    24PART II OTHER INFORMATION
    
    
    25Item 1. Legal Proceedings
    
    
    25Item 1A. Risk Factors
    
    
    25Item 4. Submission of Matters to a Vote of Security Holders
    
    
    25Item 6. Exhibits
    
    
    26SIGNATURES
    
    
    27EXHIBIT INDEX
    
    
    28EX-31.1EX-31.2EX-32.1
   i




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##### Table of Contents



PART I FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS:
 
 IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED BALANCE SHEETS  (In thousands)  (unaudited)
 June 30,
    
    
    December 31,2009
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    $
    33,016
    
    
    $
    26,139Short-term investments
    
    
    553
    
    
    
    4,964Accounts receivable, net
    
    
    7,305
    
    
    
    12,554Inventories
    
    
    3,874
    
    
    
    4,353Prepaid expenses and other current assets
    
    
    477
    
    
    
    527Total current assets
    
    
    45,225
    
    
    
    48,537Property and equipment, net
    
    
    1,159
    
    
    
    1,147Intangible assets, net
    
    
    1,250
    
    
    
    1,231Notes receivable and other assets, net
    
    
    108
    
    
    
    320Total assets
    
    $
    47,742
    
    
    $
    51,235LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    4,546
    
    
    $
    7,074Accrued expenses and other current liabilities
    
    
    2,696
    
    
    
    3,412Deferred revenue
    
    
    640
    
    
    
    412Total liabilities
    
    
    7,882
    
    
    
    10,898Equity:Common stock, $ .01 par value
    
    
    324
    
    
    
    319Additional paid-in capital
    
    
    170,377
    
    
    
    169,863Accumulated deficit
    
    
    (131,597
    )
    
    
    (130,640
    )Accumulated other comprehensive income
    
    
    158
    
    
    
    155Total iGo, Inc. common stockholders equity
    
    
    39,262
    
    
    
    39,697Non-controlling interest
    
    
    598
    
    
    
    640Total equity
    
    
    39,860
    
    
    
    40,337Total liabilities and equity
    
    $
    47,742
    
    
    $
    51,235
  1




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##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  (In thousands, except per share amounts)  (unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    15,075
    
    
    $
    18,553
    
    
    $
    30,015
    
    
    $
    37,491Cost of revenue
    
    
    10,498
    
    
    
    13,149
    
    
    
    20,820
    
    
    
    26,509Gross profit
    
    
    4,577
    
    
    
    5,404
    
    
    
    9,195
    
    
    
    10,982Operating expenses:Sales and marketing
    
    
    1,736
    
    
    
    2,247
    
    
    
    3,844
    
    
    
    4,261Research and development
    
    
    754
    
    
    
    910
    
    
    
    1,671
    
    
    
    1,703General and administrative
    
    
    2,088
    
    
    
    2,630
    
    
    
    5,106
    
    
    
    6,729Total operating expenses
    
    
    4,578
    
    
    
    5,787
    
    
    
    10,621
    
    
    
    12,693Loss from operations
    
    
    (1
    )
    
    
    (383
    )
    
    
    (1,426
    )
    
    
    (1,711
    )Other income (expense):Interest income, net
    
    
    18
    
    
    
    210
    
    
    
    75
    
    
    
    478Gain on disposal of assets and other income, net
    
    
    101
    
    
    
    107
    
    
    
    352
    
    
    
    261Litigation settlement income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    672Net income (loss)
    
    
    118
    
    
    
    (66
    )
    
    
    (999
    )
    
    
    (300
    )Less: Net loss attributable to non-controlling interest
    
    
    16
    
    
    
    
    
    
    
    42
    
    
    
    Net income (loss) attributable to iGo, Inc.
    
    $
    134
    
    
    $
    (66
    )
    
    $
    (957
    )
    
    $
    (300
    )Net income (loss) attributable to iGo, Inc. per shareBasic
    
    $
    0.00
    
    
    $
    (0.00
    )
    
    $
    (0.03
    )
    
    $
    (0.01
    )Diluted
    
    $
    0.00
    
    
    $
    (0.00
    )
    
    $
    (0.03
    )
    
    $
    (0.01
    )Weighted average common shares outstandingBasic
    
    
    32,328
    
    
    
    31,772
    
    
    
    32,208
    
    
    
    31,676Diluted
    
    
    33,882
    
    
    
    31,772
    
    
    
    32,208
    
    
    
    31,676
  2




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IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
AND COMPREHENSIVE INCOME (LOSS)  (In thousands, except per share amounts)  (unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-In
    
    
    Accumulated
    
    
    Comprehensive
    
    
    Non-controllingShares
    
    
    Amount
    
    
    Capital
    
    
    Deficit
    
    
    Income(Loss)
    
    
    Interest
    
    
    TotalBalances at December 31, 2008
    
    
    31,924,183
    
    
    $
    319
    
    
    $
    169,863
    
    
    $
    (130,640
    )
    
    $
    155
    
    
    $
    640
    
    
    $
    40,337Issuance of stock awards
    
    
    487,348
    
    
    
    5
    
    
    
    (139
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (134
    )Amortization of deferred compensation
    
    
    
    
    
    
    
    
    
    
    653
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    653Comprehensive loss:Unrealized Gain on Available for Sale Investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2
    
    
    
    
    
    
    
    2Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Net loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (957
    )
    
    
    
    
    
    
    (42
    )
    
    
    (999
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (996
    )Balances at June 30, 2009
    
    
    32,411,531
    
    
    $
    324
    
    
    $
    170,377
    
    
    $
    (131,597
    )
    
    $
    158
    
    
    $
    598
    
    
    $
    39,860
  3




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IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In thousands)  (unaudited)
 Six Months EndedJune 30,2009
    
    
    2008Cash flows from operating activities:Net loss
    
    $
    (999
    )
    
    $
    (300
    )Adjustments to reconcile net loss to net cash provided by operating activities:Provision for doubtful accounts and sales returns and credits
    
    
    237
    
    
    
    147Depreciation and amortization
    
    
    748
    
    
    
    790Stock compensation expense
    
    
    653
    
    
    
    1,029Loss on disposal of assets, net
    
    
    56
    
    
    
    Changes in operating assets and liabilities:Accounts receivable
    
    
    5,012
    
    
    
    2,762Inventories
    
    
    479
    
    
    
    2,728Prepaid expenses and other assets
    
    
    (144
    )
    
    
    469Accounts payable
    
    
    (2,528
    )
    
    
    (2,571
    )Accrued expenses and other current liabilities
    
    
    (622
    )
    
    
    (1,751
    )Net cash provided by operating activities
    
    
    2,892
    
    
    
    3,303Cash flows from investing activities:Purchase of property and equipment
    
    
    (441
    )
    
    
    (107
    )Proceeds from disposal of assets
    
    
    12
    
    
    
    Purchase of investments
    
    
    
    
    
    
    (6,640
    )Sale of investments
    
    
    4,410
    
    
    
    8,950Net cash provided by investing activities
    
    
    3,981
    
    
    
    2,203Cash flows from financing activities:Net proceeds from issuance of common stock and exercise
of options and warrants
    
    
    
    
    
    
    28Net cash provided by financing activities
    
    
    
    
    
    
    28Effects of exchange rate changes on cash and cash equivalents
    
    
    4
    
    
    
    19Net increase in cash and cash equivalents
    
    
    6,877
    
    
    
    5,553Cash and cash equivalents, beginning of period
    
    
    26,139
    
    
    
    15,908Cash and cash equivalents, end of period
    
    $
    33,016
    
    
    $
    21,461
  4




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IGO, INC. AND SUBSIDIARIES
 NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
 (1) Basis of Presentation
    Recent Accounting Pronouncements
   
 5




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
      6




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(2) Variable Interest Entities
    iGoMission
    
    
    ConsolidatedASSETSCurrent assets:Cash and cash equivalents
    
    $
    499
    
    
    $
    33,016Short-term investments
    
    
    
    
    
    
    553Accounts receivable, net
    
    
    343
    *
    
    
    7,305Inventories
    
    
    596
    
    
    
    3,874Prepaid expenses and other current assets
    
    
    28
    
    
    
    477Total current assets
    
    
    1,466
    
    
    
    45,225Property and equipment, net
    
    
    62
    
    
    
    1,159Intangible assets, net
    
    
    
    
    
    
    1,250Notes receivable (payable) and other assets
    
    
    (359
    )*
    
    
    108Total assets
    
    $
    1,169
    
    
    $
    47,742LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    173
    
    
    $
    4,546Accrued expenses and other current liabilities
    
    
    398
    *
    
    
    2,696Deferred revenue
    
    
    
    
    
    
    640Total current liabilities
    
    
    571
    
    
    
    7,882Equity:Total iGo, Inc. common stockholders equity
    
    
    
    
    
    
    39,262Non-controlling interest
    
    
    598
    *
    
    
    598Total equity
    
    
    598
    
    
    
    39,860Total liabilities and equity
    
    $
    1,169
    
    
    $
    47,742
 
 *
    
    Reflects the elimination of intercompany accounts and notes receivable. 7




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(3) Fair Value Measurement
    (4) Investments
     June 30, 2009
    
    
    December 31, 2008NetNet
    
    
    
    
    
    
    
    
    
    
    UnrealizedUnrealized
    
    
    Aggregate
    
    
    
    
    
    
    HoldingAmortized
    
    
    Holding
    
    
    Fair
    
    
    Amortized
    
    
    Gains
    
    
    AggregateCost
    
    
    Gains
    
    
    Value
    
    
    Cost
    
    
    (Losses)
    
    
    Fair ValueU.S. corporate securities:Commercial paper
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,642
    
    
    $
    4
    
    
    $
    1,646Corporate notes and bonds
    
    
    551
    
    
    
    2
    
    
    
    553
    
    
    
    3,319
    
    
    
    (1
    )
    
    
    3,318$
    551
    
    
    $
    2
    
    
    $
    553
    
    
    $
    4,961
    
    
    $
    3
    
    
    $
    4,964
 (5) Inventories
  June 30,
    
    
    December 31,2009
    
    
    2008Raw materials
    
    $
    866
    
    
    $
    740Finished goods
    
    
    3,008
    
    
    
    3,613$
    3,874
    
    
    $
    4,353
 8




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(6) Intangible Assets
  June 30, 2009
    
    
    December 31, 2008Average
    
    
    Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    NetLife
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible(Years)
    
    
    Assets
    
    
    Amortization
    
    
    Assets
    
    
    Assets
    
    
    Amortization
    
    
    AssetsAmortized intangible
assets:License fees
    
    
    7
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    334
    
    
    $
    (334
    )
    
    $
    Patents and trademarks
    
    
    3
    
    
    
    3,725
    
    
    
    (2,632
    )
    
    
    1,093
    
    
    
    3,320
    
    
    
    (2,270
    )
    
    
    1,050Trade names
    
    
    10
    
    
    
    442
    
    
    
    (285
    )
    
    
    157
    
    
    
    442
    
    
    
    (261
    )
    
    
    181Customer intangibles
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33
    
    
    
    (33
    )
    
    
    Total
    
    
    
    
    
    $
    4,167
    
    
    $
    (2,917
    )
    
    $
    1,250
    
    
    $
    4,129
    
    
    $
    (2,898
    )
    
    $
    1,231
  (7) Notes Receivable and Other Assets
    (8) Stock-based Compensation
   9




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2004 Directors Plan
    
    
    2004 Omnibus Plan
    
    
    Heil GrantWeighted
    
    
    
    
    
    
    Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    
    
    
    
    Average
    
    
    
    
    
    
    AverageValue per
    
    
    
    
    
    
    Value per
    
    
    
    
    
    
    Value perNumber
    
    
    Share
    
    
    Number
    
    
    Share
    
    
    Number
    
    
    ShareOutstanding, December 31, 2008
    
    
    129,832
    
    
    $
    4.67
    
    
    
    1,595,052
    
    
    $
    3.73
    
    
    
    875,000
    
    
    $
    2.01Granted
    
    
    31,500
    
    
    $
    0.71
    
    
    
    101,500
    
    
    $
    0.59
    
    
    
    
    
    
    
    Canceled
    
    
    
    
    
    
    
    
    
    
    (481,100
    )
    
    $
    2.33
    
    
    
    
    
    
    
    Released to common stock
    
    
    (29,833
    )
    
    $
    0.73
    
    
    
    (285,515
    )
    
    $
    2.83
    
    
    
    (172,000
    )
    
    $
    2.13Released for settlement of taxes
    
    
    
    
    
    
    
    
    
    
    (132,806
    )
    
    $
    2.81
    
    
    
    (78,000
    )
    
    $
    2.13Outstanding, June 30, 2009
    
    
    131,499
    
    
    $
    3.40
    
    
    
    797,131
    
    
    $
    2.20
    
    
    
    625,000
    
    
    $
    2.04
    (9) Net Income (Loss) attributable to iGo, Inc. per Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Basic net income (loss) attributable to iGo, Inc. per
share computation:Numerator:Net income (loss) attributable to iGo, Inc.
    
    $
    134
    
    
    $
    (66
    )
    
    $
    (957
    )
    
    $
    (300
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,328
    
    
    
    31,772
    
    
    
    32,208
    
    
    
    31,676Basic net income (loss) attributable to iGo, Inc. per share:
    
    $
    0.00
    
    
    $
    (0.00
    )
    
    $
    (0.03
    )
    
    $
    (0.01
    )Diluted net income (loss) attributable to iGo, Inc. per share
computation:Numerator:Net income (loss) attributable to iGo, Inc.
    
    $
    134
    
    
    $
    (66
    )
    
    $
    (957
    )
    
    $
    (300
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,328
    
    
    
    31,772
    
    
    
    32,208
    
    
    
    31,676Effect of dilutive stock options, warrants, and
restricted stock units
    
    
    1,554
    
    
    
    
    
    
    
    
    
    
    
    33,882
    
    
    
    31,772
    
    
    
    32,208
    
    
    
    31,676Diluted net income (loss) attributable to iGo, Inc. per share:
    
    $
    0.00
    
    
    $
    (0.00
    )
    
    $
    (0.03
    )
    
    $
    (0.01
    )Stock options not included in dilutive net income (loss) per
share since antidilutive
    
    
    233
    
    
    
    285
    
    
    
    233
    
    
    
    285Warrants not included in dilutive net income (loss) per share
since antidilutive
    
    
    600
    
    
    
    600
    
    
    
    600
    
    
    
    600
 10




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(10) Business Segments, Concentration of Credit Risk and Significant Customers
    Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues:High-Power Group
    
    $
    7,992
    
    
    $
    11,633
    
    
    $
    17,750
    
    
    $
    22,754Low-Power Group
    
    
    5,626
    
    
    
    5,192
    
    
    
    9,280
    
    
    
    11,459Connectivity Group
    
    
    1,457
    
    
    
    1,728
    
    
    
    2,985
    
    
    
    3,278$
    15,075
    
    
    $
    18,553
    
    
    $
    30,015
    
    
    $
    37,491
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Operating income (loss) from operations:High-Power Group
    
    $
    (841
    )
    
    $
    594
    
    
    $
    (1,404
    )
    
    $
    1,999Low-Power Group
    
    
    2,750
    
    
    
    1,302
    
    
    
    4,686
    
    
    
    2,408Connectivity Group
    
    
    (120
    )
    
    
    148
    
    
    
    (193
    )
    
    
    63Corporate
    
    
    (1,790
    )
    
    
    (2,427
    )
    
    
    (4,515
    )
    
    
    (6,181
    )$
    (1
    )
    
    $
    (383
    )
    
    $
    (1,426
    )
    
    $
    (1,711
    )
  June 30,
    
    
    December 31,2009
    
    
    2008Assets:High-Power Group
    
    $
    7,243
    
    
    $
    11,977Low-Power Group
    
    
    5,810
    
    
    
    6,447Connectivity Group
    
    
    1,543
    
    
    
    2,009Corporate
    
    
    33,146
    
    
    
    30,802$
    47,742
    
    
    $
    51,235
  11




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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008High-power mobile electronic power products
    
    $
    7,898
    
    
    $
    11,505
    
    
    $
    17,563
    
    
    $
    22,600Low-power mobile electronic power products
    
    
    5,626
    
    
    
    5,167
    
    
    
    9,280
    
    
    
    10,954Expansion and docking products
    
    
    1,457
    
    
    
    1,728
    
    
    
    2,985
    
    
    
    3,278Portable keyboard products
    
    
    
    
    
    
    25
    
    
    
    
    
    
    
    505Accessories and other products
    
    
    94
    
    
    
    128
    
    
    
    187
    
    
    
    154Total revenues
    
    $
    15,075
    
    
    $
    18,553
    
    
    $
    30,015
    
    
    $
    37,491
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008North America (principally United States)
    
    $
    14,230
    
    
    $
    17,966
    
    
    $
    27,942
    
    
    $
    34,626Europe
    
    
    779
    
    
    
    285
    
    
    
    1,562
    
    
    
    1,441Asia Pacific and all other
    
    
    66
    
    
    
    302
    
    
    
    511
    
    
    
    1,424$
    15,075
    
    
    $
    18,553
    
    
    $
    30,015
    
    
    $
    37,491Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2009
    
    2008
    
    2009
    
    2008OEM and private-label-resellers
    
    
    33
    %
    
    
    51
    %
    
    
    41
    %
    
    
    50
    %Retailers and distributors
    
    
    56
    %
    
    
    45
    %
    
    
    48
    %
    
    
    45
    %Other
    
    
    11
    %
    
    
    4
    %
    
    
    11
    %
    
    
    5
    %100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
      12




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##### Table of Contents



(11) Litigation Settlement
  (12) Contingencies
      
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  13




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##### Table of Contents




    
    the loss of, and failure to replace, any other significant customers in addition to
Targus;
    
    the inability to timely and successfully complete product development efforts and
introduce new products, such as our planned, new eco-friendly power products and
technology;
    
    the ineffectiveness of our sales and marketing strategy;
    
    the inability to create broad consumer awareness and acceptance for our products and
technology;
    
    the timing and success of competitive product development efforts, new product
introductions and pricing;
    
    the ability to expand and protect our proprietary rights and intellectual property;
    
    the timing and amount of substantial customer orders;
    
    the lack of available qualified personnel;
    
    the inability to successfully resolve pending and unanticipated legal matters;
    
    the lack of available qualified suppliers and subcontractors and/or their inability
to meet our specification, performance, and quality requirements;
    
    a decline in market demand for our products or the inability of our customers to
finance the purchase of our products; and
    
    a downturn in industry and general economic or business conditions.
  iGo®  is a trademark or registered trademark 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
  14




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##### Table of Contents



TM
   High-Power Group.
 Low-Power Group.
 15




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##### Table of Contents



Connectivity Group.
 Critical Accounting Policies and Estimates
  Results of Operations
  Three Months Ended
    
    Six Months EndedJune 30,
    
    June 30,2009
    
    2008
    
    2009
    
    2008Revenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Cost of revenue
    
    
    69.6
    %
    
    
    70.9
    %
    
    
    69.4
    %
    
    
    70.7
    %Gross profit
    
    
    30.4
    %
    
    
    29.1
    %
    
    
    30.6
    %
    
    
    29.3
    %Operating expenses:Sales and marketing
    
    
    11.5
    %
    
    
    12.1
    %
    
    
    12.8
    %
    
    
    11.4
    %Research and development
    
    
    5.0
    %
    
    
    4.9
    %
    
    
    5.5
    %
    
    
    4.5
    %General and administrative
    
    
    13.9
    %
    
    
    14.2
    %
    
    
    17.0
    %
    
    
    18.0
    %Total operating expenses
    
    
    30.4
    %
    
    
    31.2
    %
    
    
    35.3
    %
    
    
    33.9
    %Loss from operations
    
    
    0.0
    %
    
    
    (2.1
    %)
    
    
    (4.7
    %)
    
    
    (4.6
    %)Other income (expense):Interest, net
    
    
    0.1
    %
    
    
    1.1
    %
    
    
    0.2
    %
    
    
    1.3
    %Other, net
    
    
    0.7
    %
    
    
    0.6
    %
    
    
    1.2
    %
    
    
    0.7
    %Litigation settlement income
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    1.8
    %Net loss attributable to non-controlling interest
    
    
    0.0
    %
    
    
    0.0
    %
    
    
    0.1
    %
    
    
    0.0
    %Net income (loss)
    
    
    0.8
    %
    
    
    (0.4
    %)
    
    
    (3.2
    %)
    
    
    (0.8
    %)
 16




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##### Table of Contents



Comparison of Three Months Ended June 30, 2009 and 2008
 Revenue .
 Increase/Three Months
    
    
    Three Months
    
    
    (Decrease)
    
    
    Percentage changeEnded
    
    
    Ended
    
    
    from same period
    
    
    from the same periodJune 30, 2009
    
    
    June 30, 2008
    
    
    in the prior year
    
    
    in the prior yearHigh-Power Group
    
    $
    7,992
    
    
    $
    11,633
    
    
    $
    (3,641
    )
    
    
    (31.3
    )%Low-Power Group
    
    
    5,626
    
    
    
    5,192
    
    
    
    434
    
    
    
    8.4
    %Connectivity Group
    
    
    1,457
    
    
    
    1,728
    
    
    
    (271
    )
    
    
    (15.7
    )%Total Revenue
    
    $
    15,075
    
    
    $
    18,553
    
    
    $
    (3,478
    )
    
    
    (18.7
    )%
 High-Power Group.
 Low-Power Group.
 Connectivity Group.
 Cost of revenue, gross profit and gross margin .
 Three Months
    
    Three Months
    
    Increase/(decrease)
    
    Percentage change fromEnded
    
    Ended
    
    from same period in
    
    the same period in theJune 30, 2009
    
    June 30, 2008
    
    the prior year
    
    prior yearCost of revenue
    
    $
    10,498
    
    
    $
    13,149
    
    
    $
    (2,651
    )
    
    
    (20.2
    )%Gross profit
    
    $
    4,577
    
    
    $
    5,404
    
    
    $
    (827
    )
    
    
    (15.3
    )%Gross margin
    
    
    30.4
    %
    
    
    29.1
    %
    
    
    1.3
    %
    
    
    N/A
  17




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##### Table of Contents



Sales and marketing .
 Three Months
    
    Three Months
    
    Decrease
    
    Percentage changeEnded
    
    Ended
    
    from same period
    
    from the same periodJune 30,  2009
    
    June 30, 2008
    
    in the prior year
    
    in the prior yearSales and marketing
    
    $
    1,736
    
    
    $
    2,247
    
    
    $
    (511
    )
    
    
    (22.7
    )%
  Research and development .
 Three Months
    
    Three Months
    
    Decrease from
    
    Percentage change fromEnded
    
    Ended
    
    same period
    
    the same period in theJune 30, 2009
    
    June 30, 2008
    
    in the prior year
    

prior
yearResearch and development
    
    $
    754
    
    
    $
    910
    
    
    $
    (156
    )
    
    
    (17.1
    )%
  General and administrative.
 Three Months
    
    Three Months
    
    Decrease
    
    Percentage changeEnded
    
    Ended
    
    from same period
    
    from the same periodJune 30, 2009
    
    June 30, 2008
    
    in the prior year
    
    in the prior yearGeneral and administrative
    
    $
    2,088
    
    
    $
    2,630
    
    
    $
    (542
    )
    
    
    (20.6
    )%
  Interest income (expense), net.
 Other income (expense), net .
 18




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Non-controlling interest.
 Income taxes .
 Comparison of Six Months Ended June 30, 2009 and 2008
 Revenue .
 Six Months
    
    
    Six Months
    
    
    Decrease
    
    
    Percentage changeEnded
    
    
    Ended
    
    
    from same period
    
    
    from the same periodJune 30, 2009
    
    
    June 30, 2008
    
    
    in the prior year
    
    
    in the prior yearHigh-Power Group
    
    $
    17,750
    
    
    $
    22,754
    
    
    $
    (5,004
    )
    
    
    (22.0
    )%Low-Power Group
    
    
    9,280
    
    
    
    11,459
    
    
    
    (2,179
    )
    
    
    (19.0
    )%Connectivity Group
    
    
    2,985
    
    
    
    3,278
    
    
    
    (293
    )
    
    
    (8.9
    )%Total Revenue
    
    $
    30,015
    
    
    $
    37,491
    
    
    $
    (7,476
    )
    
    
    (19.9
    )%
 High-Power Group.
 Low-Power Group.
 Connectivity Group.
 19




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##### Table of Contents



Cost of revenue, gross profit and gross margin .
 Six Months
    
    Six Months
    
    Decrease from same
    
    Percentage change fromEnded
    
    Ended
    
    period in the prior
    
    the same period in theJune 30, 2009
    
    June 30, 2008
    
    year
    
    prior yearCost of revenue
    
    $
    20,820
    
    
    $
    26,509
    
    
    $
    (5,689
    )
    
    
    (21.5
    )%Gross profit
    
    $
    9,195
    
    
    $
    10,982
    
    
    $
    (1,787
    )
    
    
    (16.3
    )%Gross margin
    
    
    30.6
    %
    
    
    29.3
    %
    
    
    1.3
    %
    
    
    N/A
  Sales and marketing .
 Six Months
    
    Six Months
    
    Decrease
    
    Percentage changeEnded
    
    Ended
    
    from same period
    
    from the same periodJune 30, 2009
    
    June 30, 2008
    
    in the prior year
    
    in the prior yearSales and marketing
    
    $
    3,844
    
    
    $
    4,261
    
    
    $
    (417
    )
    
    
    (9.8
    )%
  Research and development .
 Six Months
    
    Six Months
    
    Decrease from
    
    Percentage change fromEnded
    
    Ended
    
    same period
    
    the same period in theJune 30, 2009
    
    June 30, 2008
    
    in the prior year
    
    prior yearResearch and development
    
    $
    1,671
    
    
    $
    1,703
    
    
    $
    (32
    )
    
    
    (1.9
    )%
  20




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##### Table of Contents



General and administrative.
 Six Months
    
    Six Months
    
    Decrease
    
    Percentage changeEnded
    
    Ended
    
    from same period
    
    from the same periodJune 30, 2009
    
    June 30, 2008
    
    in the prior year
    
    in the prior yearGeneral and administrative
    
    $
    5,106
    
    
    $
    6,729
    
    
    $
    (1,623
    )
    
    
    (24.1
    )%
  Interest income (expense), net.
 Other income (expense), net .
 Litigation settlement income .
 Income taxes .
 Operating Outlook
    21




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##### Table of Contents



Liquidity and Capital Resources
 Cash and Cash Flow
     Six Months Ended June 30,2009
    
    
    2008Net cash provided by operating activities
    
    $
    2,892
    
    
    $
    3,303Net cash provided by investing activities
    
    
    3,981
    
    
    
    2,203Net cash provided by financing activities
    
    
    
    
    
    
    28Foreign currency exchange impact on cash flow
    
    
    4
    
    
    
    19Increase in cash and cash equivalents
    
    $
    6,877
    
    
    $
    5,553Cash and cash equivalents at beginning of period
    
    $
    26,139
    
    
    $
    15,908Cash and cash equivalents at end of period
    
    $
    33,016
    
    
    $
    21,461
 22




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##### Table of Contents




    
    Net cash provided by operating activities.Cash was provided by operating activities for
the six months ended June 30, 2009 primarily as a result of collections of accounts
receivable and sales of inventory, partially offset by use of cash to pay suppliers.
During the six months ended June 30, 2009, our account receivable from Targus decreased
by $5.8 million from $7.1 million at December 31, 2008 to $1.3 million at June 30, 2009.
For the current fiscal year, we expect to generate cash from operating activities as we
expect working capital changes to more than offset any operating losses that may be
incurred. Our consolidated cash flow operating metrics are as follows:
 Six Months EndedJune 30,2009
    
    2008Days outstanding in ending accounts receivable (DSOs)
    
    
    44
    
    
    
    68Inventory turns
    
    
    10
    
    
    
    11
 The decrease in DSOs at June 30, 2009 compared to June 30, 2008 was primarily due to
decreases in accounts receivable from Targus. We expect DSOs will decrease in 2009 as a
result of anticipated timing of cash receipts from Targus in connection with the
cancelation of our distribution agreement. The decrease in inventory turns was primarily
due to the decline in revenue from sales to Targus and RadioShack, for whom we hold no
inventory. We expect to manage inventory growth during 2009 and we expect inventory turns
for the remainder of 2009 to remain consistent with the six month period ended June 30,
2009.
    
    Net cash provided by investing activities.For the six months ended June 30, 2009,
net cash was provided by investing activities as we generated net proceeds from the
sale of investments of $4.4 million. Our current investment strategy is to liquidate
short-term investments as they mature and convert them to cash.
    
    Net cash provided by financing activities.Although we expect to generate cash
flows from operations sufficient to support our operations, we may issue additional
shares of stock in the future to provide cash for growth opportunities, if favorable
market conditions for our equity exist.
 Investments.
  Contractual Obligations.
 Payment due by period2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    More than 5 yearsOperating lease obligations
    
    $
    195
    
    
    $
    431
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76Inventory Purchase obligations
    
    
    12,466
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Totals
    
    $
    12,661
    
    
    $
    431
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
  Off-Balance Sheet Arrangements.
 Acquisitions and Dispositions.
 23




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##### Table of Contents



Net Operating Loss Carry-forwards.
 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
 24




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##### Table of Contents



Changes in Internal Control Over Financial Reporting
 
 PART II OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
   
 ITEM 1A. RISK FACTORS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  1.
    
    Election of Michael D. Heil as a Class III member of our Board of Directors, to serve until
the 2012 Annual Meeting of Stockholders:
 Nominee
    
    For
    
    
    Withheld AuthorityMichael D. Heil
    
    
    26,264,637
    
    
    
    750,030
 2.
    
    Ratification of the selection of KPMG LLP as the Companys independent registered public
accounting firm for the fiscal year ending December 31, 2009.
 Votes for
    
    
    26,799,440Votes against
    
    
    204,710Votes abstained
    
    
    10,517
  25




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##### Table of Contents



ITEM 6. EXHIBITS
  26




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##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 SIGNATURES
  IGO, INC.Dated: August 6, 2009
    By:
    /s/ Michael D. HeilMichael D. HeilPresident, Chief Executive Officer

and Chairman of the Board
(Principal Executive Officer)By:
    /s/ Darryl S. BakerDarryl S. BakerVice
President and Chief Financial Officer
and Authorized Officer of Registrant
(Principal Financial Officer) 27




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##### 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 June 30, 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)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 herewith**
    
    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. 28