##### 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, 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
    
    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 Cash Flows
    
    
    3Notes to Unaudited Condensed Consolidated Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis of Financial
Condition and Results of Operations
    
    
    11Item 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
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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, except share amounts)
 (unaudited)
 June 30,
    
    
    December 31,2010
    
    
    2009As recastASSETSCurrent assets:Cash and cash equivalents
    
    $
    14,109
    
    
    $
    19,775Short-term investments
    
    
    19,933
    
    
    
    12,777Accounts receivable, net
    
    
    6,774
    
    
    
    5,109Inventories
    
    
    6,219
    
    
    
    5,964Prepaid expenses and other current assets
    
    
    517
    
    
    
    401Total current assets
    
    
    47,552
    
    
    
    44,026Property and equipment, net
    
    
    714
    
    
    
    835Intangible assets, net
    
    
    821
    
    
    
    1,048Notes receivable and other assets, net
    
    
    153
    
    
    
    268Total assets
    
    $
    49,240
    
    
    $
    46,177LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    5,043
    
    
    $
    3,557Accrued expenses and other current liabilities
    
    
    1,404
    
    
    
    1,424Deferred revenue
    
    
    1,898
    
    
    
    914Total liabilities
    
    
    8,345
    
    
    
    5,895Equity:Common stock, $.01 par value; authorized 90,000,000 shares; 32,877,341 and 32,411,531
shares issued and outstanding at June 30, 2010
and December 31, 2009, respectively
    
    
    329
    
    
    
    324Additional paid-in capital
    
    
    171,393
    
    
    
    171,034Accumulated deficit
    
    
    (130,847
    )
    
    
    (131,216
    )Accumulated other comprehensive income
    
    
    20
    
    
    
    140Total equity
    
    
    40,895
    
    
    
    40,282Total liabilities and equity
    
    $
    49,240
    
    
    $
    46,177
  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 30,2010
    
    
    2009
    
    
    2010
    
    
    2009As recast
    
    
    
    
    
    
    As recastRevenue
    
    $
    9,748
    
    
    $
    13,618
    
    
    $
    17,916
    
    
    $
    27,031Cost of revenue
    
    
    6,436
    
    
    
    9,719
    
    
    
    11,953
    
    
    
    19,235Gross profit
    
    
    3,312
    
    
    
    3,899
    
    
    
    5,963
    
    
    
    7,796Operating expenses:Sales and marketing
    
    
    1,634
    
    
    
    1,506
    
    
    
    3,405
    
    
    
    3,379Research and development
    
    
    390
    
    
    
    484
    
    
    
    709
    
    
    
    1,135General and administrative
    
    
    1,785
    
    
    
    1,845
    
    
    
    3,422
    
    
    
    4,571Total operating expenses
    
    
    3,809
    
    
    
    3,835
    
    
    
    7,536
    
    
    
    9,085Income (loss) from operations
    
    
    (497
    )
    
    
    64
    
    
    
    (1,573
    )
    
    
    (1,289
    )Other income, net:Interest income, net
    
    
    40
    
    
    
    35
    
    
    
    96
    
    
    
    127Gain on disposal of assets and other income, net
    
    
    57
    
    
    
    63
    
    
    
    1,846
    
    
    
    272Net income (loss)
    
    
    (400
    )
    
    
    162
    
    
    
    369
    
    
    
    (890
    )Net income (loss) per shareBasic
    
    $
    (0.01
    )
    
    $
    0.01
    
    
    $
    0.01
    
    
    $
    (0.03
    )Diluted
    
    $
    (0.01
    )
    
    $
    0.00
    
    
    $
    0.01
    
    
    $
    (0.03
    )Weighted average common shares outstandingBasic
    
    
    32,750
    
    
    
    32,328
    
    
    
    32,654
    
    
    
    32,208Diluted
    
    
    32,750
    
    
    
    33,882
    
    
    
    33,965
    
    
    
    32,208
  2




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##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In thousands)  (unaudited)
 Six Months EndedJune 30,2010
    
    
    2009As recastCash flows from operating activities:Net income (loss)
    
    $
    369
    
    
    $
    (890
    )Adjustments to reconcile net income (loss) to net cash provided by
operating activities:Provision for doubtful accounts and sales returns and credits
    
    
    124
    
    
    
    236Depreciation and amortization
    
    
    740
    
    
    
    709Stock compensation expense
    
    
    618
    
    
    
    653Gain on sale of business
    
    
    (1,714
    )
    
    
    Loss on disposal of assets, net
    
    
    
    
    
    
    56Changes in operating assets and liabilities:Accounts receivable and notes receivable, current
    
    
    (75
    )
    
    
    4,811Inventories
    
    
    (255
    )
    
    
    321Prepaid expenses and other assets
    
    
    (244
    )
    
    
    138Accounts payable
    
    
    1,486
    
    
    
    (2,386
    )Accrued expenses and other current liabilities
    
    
    709
    
    
    
    (746
    )Net cash provided by operating activities
    
    
    1,758
    
    
    
    2,902Cash flows from investing activities:Purchase of property and equipment
    
    
    (149
    )
    
    
    (429
    )Proceeds from disposal of assets
    
    
    
    
    
    
    11(Purchase) sale of short-term investments, net
    
    
    (7,159
    )
    
    
    4,410Net cash provided by/(used in) investing activities
    
    
    (7,308
    )
    
    
    3,992Cash flows from financing activities:Net cash provided by financing activities
    
    
    
    
    
    
    Effects of exchange rate changes on cash and cash equivalents
    
    
    (116
    )
    
    
    4Net increase/(decrease) in cash and cash equivalents
    
    
    (5,666
    )
    
    
    6,898Cash and cash equivalents, beginning of period
    
    
    19,775
    
    
    
    25,619Cash and cash equivalents, end of period
    
    $
    14,109
    
    
    $
    32,517
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##### Table of Contents



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




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##### Table of Contents



(2) Mission Deconsolidation
     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
    
    
    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
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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30, 2009
    
    
    June 30, 2009As reported
    
    
    Adjustments
    
    
    As recast
    
    
    As reported
    
    
    Adjustments
    
    
    As recastRevenue
    
    $
    15,075
    
    
    $
    (1,457
    )
    
    $
    13,618
    
    
    $
    30,015
    
    
    $
    (2,984
    )
    
    $
    27,031Cost of revenue
    
    
    10,498
    
    
    
    (779
    )
    
    
    9,719
    
    
    
    20,820
    
    
    
    (1,585
    )
    
    
    19,235Gross profit
    
    
    4,577
    
    
    
    (678
    )
    
    
    3,899
    
    
    
    9,195
    
    
    
    (1,399
    )
    
    
    7,796Operating expenses:Sales and marketing
    
    
    1,736
    
    
    
    (230
    )
    
    
    1,506
    
    
    
    3,844
    
    
    
    (465
    )
    
    
    3,379Research and development
    
    
    754
    
    
    
    (270
    )
    
    
    484
    
    
    
    1,671
    
    
    
    (536
    )
    
    
    1,135General and administrative
    
    
    2,088
    
    
    
    (243
    )
    
    
    1,845
    
    
    
    5,106
    
    
    
    (535
    )
    
    
    4,571Total operating expenses
    
    
    4,578
    
    
    
    (743
    )
    
    
    3,835
    
    
    
    10,621
    
    
    
    (1,536
    )
    
    
    9,085Income (loss) from operations
    
    
    (1
    )
    
    
    65
    
    
    
    64
    
    
    
    (1,426
    )
    
    
    137
    
    
    
    (1,289
    )Other income (expense):Interest income, net
    
    
    18
    
    
    
    17
    
    
    
    35
    
    
    
    75
    
    
    
    52
    
    
    
    127Gain on disposal of assets and
other income, net
    
    
    101
    
    
    
    (38
    )
    
    
    63
    
    
    
    352
    
    
    
    (80
    )
    
    
    272Net income (loss)
    
    
    118
    
    
    
    44
    
    
    
    162
    
    
    
    (999
    )
    
    
    109
    
    
    
    (890
    )Less: Net loss attributable
to non-controlling interest
    
    
    16
    
    
    
    (16
    )
    
    
    
    
    
    
    42
    
    
    
    (42
    )
    
    
    Net income (loss)
attributable to iGo, Inc.
    
    $
    134
    
    
    $
    28
    
    
    $
    162
    
    
    $
    (957
    )
    
    $
    67
    
    
    $
    (890
    )
 6




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##### Table of Contents



Six Months EndedJune 30, 2009As reported
    
    
    Adjustments
    
    
    As RecastCash flows from operating activities:Net loss
    
    $
    (999
    )
    
    $
    109
    
    
    $
    (890
    )Adjustments to reconcile net loss to net cash provided by operating
activities:Provision for doubtful accounts and sales returns and credits
    
    
    237
    
    
    
    (1
    )
    
    
    236Depreciation and amortization
    
    
    748
    
    
    
    (39
    )
    
    
    709Stock compensation expense
    
    
    653
    
    
    
    
    
    
    
    653Loss on disposal of assets, net
    
    
    56
    
    
    
    
    
    
    
    56Changes in operating assets and liabilities:Accounts receivable
    
    
    5,012
    
    
    
    (201
    )
    
    
    4,811Inventories
    
    
    479
    
    
    
    (158
    )
    
    
    321Prepaid expenses and other assets
    
    
    (144
    )
    
    
    282
    
    
    
    138Accounts payable
    
    
    (2,528
    )
    
    
    142
    
    
    
    (2,386
    )Accrued expenses and other current liabilities
    
    
    (622
    )
    
    
    (124
    )
    
    
    (746
    )Net cash provided by operating activities
    
    
    2,892
    
    
    
    10
    
    
    
    2,902Cash flows from investing activities:Purchase of property and equipment
    
    
    (441
    )
    
    
    12
    
    
    
    (429
    )Proceeds from disposal of assets
    
    
    12
    
    
    
    (1
    )
    
    
    11(Purchase) sale of investments
    
    
    4,410
    
    
    
    
    
    
    
    4,410Net cash provided by investing activities
    
    
    3,981
    
    
    
    11
    
    
    
    3,992Cash flows from financing activities:Net cash provided by financing activities
    
    
    
    
    
    
    
    
    
    
    Effects of exchange rate changes on cash and cash equivalents
    
    
    4
    
    
    
    
    
    
    
    4Net increase in cash and cash equivalents
    
    
    6,877
    
    
    
    21
    
    
    
    6,898Cash and cash equivalents, beginning of period
    
    
    26,139
    
    
    
    (520
    )
    
    
    25,619Cash and cash equivalents, end of period
    
    $
    33,016
    
    
    $
    (499
    )
    
    $
    32,517
 (3) Fair Value Measurement
    (4) Investments
   7




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##### Table of Contents



June 30, 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
    
    $
    2,398
    
    
    $
    
    
    
    $
    2,398
    
    
    $
    3,495
    
    
    $
    
    
    
    $
    3,495Corporate notes and bonds
    
    
    4,429
    
    
    
    (7
    )
    
    
    4,422
    
    
    
    3,278
    
    
    
    
    
    
    
    3,2786,827
    
    
    
    (7
    )
    
    
    6,820
    
    
    
    6,773
    
    
    
    
    
    
    
    6,773U.S. municipal funds
    
    
    5,040
    
    
    
    
    
    
    
    5,040
    
    
    
    5,000
    
    
    
    4
    
    
    
    5,004U.S. government securities
    
    
    8,070
    
    
    
    3
    
    
    
    8,073
    
    
    
    1,001
    
    
    
    (1
    )
    
    
    1,000$
    19,937
    
    
    $
    (4
    )
    
    $
    19,933
    
    
    $
    12,774
    
    
    $
    3
    
    
    $
    12,777
 (5) Inventories
  June 30,
    
    
    December 31,2010
    
    
    2009As recastRaw materials
    
    $
    
    
    
    $
    Finished goods
    
    
    6,219
    
    
    
    5,964$
    6,219
    
    
    $
    5,964
 8




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##### Table of Contents



(6) Intangible Assets
  June 30, 2010
    
    
    December 31, 2009As recastAverage
    
    
    Gross
    
    
    
    
    
    
    Net
    
    
    Gross
    
    
    
    
    
    
    NetLife
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible
    
    
    Intangible
    
    
    Accumulated
    
    
    Intangible(Years)
    
    
    Assets
    
    
    Amortization
    
    
    Assets
    
    
    Assets
    
    
    Amortization
    
    
    AssetsAmortized intangible
assets:Patents and trademarks
    
    
    3
    
    
    
    4,210
    
    
    
    (3,497
    )
    
    
    713
    
    
    
    3,967
    
    
    
    (3,052
    )
    
    
    915Trade names
    
    
    10
    
    
    
    442
    
    
    
    (334
    )
    
    
    108
    
    
    
    442
    
    
    
    (309
    )
    
    
    133Total
    
    
    
    
    
    $
    4,652
    
    
    $
    (3,831
    )
    
    $
    821
    
    
    $
    4,409
    
    
    $
    (3,361
    )
    
    $
    1,048
  (7) Notes Receivable and Other Assets, Net
   (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
    
    
    $
    2.60
    
    
    
    625,000
    
    
    $
    2.13Granted
    
    
    58,194
    
    
    
    1.54
    
    
    
    413,056
    
    
    $
    1.91
    
    
    
    
    
    
    
    Canceled
    
    
    
    
    
    
    
    
    
    
    (22,763
    )
    
    $
    3.00
    
    
    
    
    
    
    
    Released to common stock
    
    
    (76,167
    )
    
    
    2.05
    
    
    
    (218,455
    )
    
    $
    3.27
    
    
    
    (171,188
    )
    
    
    2.13Released for settlement of taxes
    
    
    
    
    
    
    
    
    
    
    (102,210
    )
    
    $
    3.88
    
    
    
    (78,812
    )
    
    
    2.13Outstanding, June 30, 2010
    
    
    76,526
    
    
    $
    1.47
    
    
    
    859,822
    
    
    $
    1.94
    
    
    
    375,000
    
    
    $
    2.13
   9




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##### Table of Contents



(9) Net Income (Loss) attributable to iGo, Inc. per Share
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009As recast
    
    
    
    
    
    
    As recastBasic net income (loss) per share computation:Numerator:Net income (loss)
    
    $
    (400
    )
    
    $
    162
    
    
    $
    369
    
    
    $
    (890
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,750
    
    
    
    32,328
    
    
    
    32,654
    
    
    
    32,208Basic net income (loss) per share:
    
    $
    (0.01
    )
    
    $
    0.01
    
    
    $
    0.01
    
    
    $
    (0.03
    )Diluted net income (loss) per share computation:Numerator:Net income (loss)
    
    $
    (400
    )
    
    $
    162
    
    
    $
    369
    
    
    $
    (890
    )Denominator:Weighted average number of common shares outstanding
    
    
    32,750
    
    
    
    32,328
    
    
    
    32,654
    
    
    
    32,208Effect of dilutive stock options, warrants, and
restricted stock units
    
    
    
    
    
    
    1,554
    
    
    
    1,311
    
    
    
    32,750
    
    
    
    33,882
    
    
    
    33,965
    
    
    
    32,208Diluted net income (loss) attributable to iGo, Inc. per share:
    
    $
    (0.01
    )
    
    $
    0.00
    
    
    $
    0.01
    
    
    $
    (0.03
    )Stock options not included in dilutive net income (loss) per
share since antidilutive
    
    
    15
    
    
    
    233
    
    
    
    15
    
    
    
    233Warrants not included in dilutive net income (loss) per share
since antidilutive
    
    
    5
    
    
    
    600
    
    
    
    5
    
    
    
    600
 (10) Business Segments, Concentration of Credit Risk and Significant Customers
   Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009As recast
    
    
    
    
    
    
    As recastRevenue:Computer power products
    
    $
    6,759
    
    
    $
    7,898
    
    
    $
    11,840
    
    
    $
    17,563Mobile electronic device power products
    
    
    2,814
    
    
    
    5,626
    
    
    
    5,754
    
    
    
    9,280Other
    
    
    175
    
    
    
    94
    
    
    
    322
    
    
    
    188$
    9,748
    
    
    $
    13,618
    
    
    $
    17,916
    
    
    $
    27,031
 10




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##### Table of Contents



Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009As recast

    
    
    
    
    As recastNorth America (principally United States)
    
    $
    8,385
    
    
    $
    12,773
    
    
    $
    14,724
    
    
    $
    24,957Europe
    
    
    867
    
    
    
    779
    
    
    
    2,162
    
    
    
    1,562Asia Pacific
    
    
    496
    
    
    
    66
    
    
    
    1,030
    
    
    
    512$
    9,748
    
    
    $
    13,618
    
    
    $
    17,916
    
    
    $
    27,031
     (11) Contingencies
   
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
  11




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##### Table of Contents




    
    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 propriety 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, 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;
 12




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##### Table of Contents




    
    increased reliance upon RadioShack and Walmart;
    
    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;
    
    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;
 13




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##### Table of Contents




    
    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
   ®
     14




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##### Table of Contents



Recent Developments
   Critical Accounting Policies and Estimates
   Results of Operations
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009As recast
    
    
    
    
    
    
    As recastRevenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Cost of revenue
    
    
    66.0
    %
    
    
    71.4
    %
    
    
    66.7
    %
    
    
    71.2
    %Gross profit
    
    
    34.0
    %
    
    
    28.6
    %
    
    
    33.3
    %
    
    
    28.8
    %Operating expenses:Sales and marketing
    
    
    16.8
    %
    
    
    11.1
    %
    
    
    19.0
    %
    
    
    12.5
    %Research and development
    
    
    4.0
    %
    
    
    3.6
    %
    
    
    4.0
    %
    
    
    4.2
    %General and administrative
    
    
    18.3
    %
    
    
    13.5
    %
    
    
    19.1
    %
    
    
    16.9
    %Total operating expenses
    
    
    39.1
    %
    
    
    28.2
    %
    
    
    42.1
    %
    
    
    33.6
    %Gain (loss) from operations
    
    
    (5.1
    %)
    
    
    0.4
    %
    
    
    (8.8
    %)
    
    
    (4.8
    %)Other income (expense):Interest, net
    
    
    0.4
    %
    
    
    0.3
    %
    
    
    0.5
    %
    
    
    0.5
    %Other, net
    
    
    0.6
    %
    
    
    0.5
    %
    
    
    10.3
    %
    
    
    1.0
    %Net income (loss)
    
    
    (4.1
    %)
    
    
    1.2
    %
    
    
    2.0
    %
    
    
    (3.3
    %)
 15




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##### Table of Contents



Comparison of Three Months Ended June 30, 2010 and 2009
 Revenue .
 Three Months
    
    
    Three Months
    
    
    Decrease
    
    
    Percentage changeEnded
    
    
    Ended
    
    
    from same period in
    
    
    from the sameJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    period in the prior yearRevenue
    
    $
    9,748
    
    
    $
    13,618
    
    
    $
    (3,870
    )
    
    
    (28.4
    )%
  Cost of revenue, gross profit and gross margin .
 Percentage changeThree Months
    
    
    Three Months
    
    
    Increase/(decrease)
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearCost of revenue
    
    $
    6,436
    
    
    $
    9,719
    
    
    $
    (3,283
    )
    
    
    (33.8
    )%Gross profit
    
    $
    3,312
    
    
    $
    3,899
    
    
    $
    (587
    )
    
    
    (15.1
    )%Gross margin
    
    
    34.0
    %
    
    
    28.6
    %
    
    
    5.4
    %
    
    
    18.9
    %
  Sales and marketing .
 Percentage changeThree Months
    
    
    Three Months
    
    
    Increase
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30,  2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearSales and marketing
    
    $
    1,634
    
    
    $
    1,506
    
    
    $
    128
    
    
    
    8.5
    %
  16




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##### Table of Contents



Research and development .
 Percentage changeThree Months
    
    
    Three Months
    
    
    Decrease from same
    
    
    from the sameEnded
    
    
    Ended
    
    
    period
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    in the prior year
    
    
    yearResearch and development
    
    $
    390
    
    
    $
    484
    
    
    $
    (94
    )
    
    
    (19.4
    %)
  General and administrative.
 Percentage changeThree Months
    
    
    Three Months
    
    
    Decrease
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearGeneral and administrative
    
    $
    1,785
    
    
    $
    1,845
    
    
    $
    (60
    )
    
    
    (3.3
    )%
  Interest income, net.
 Other income, net .
 Income taxes .
 Comparison of Six Months Ended June 30, 2010 and 2009
 Revenue .
 Percentage changeSix Months
    
    
    Six Months
    
    
    Decrease
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearRevenue
    
    $
    17,916
    
    
    $
    27,031
    
    
    $
    (9,115
    )
    
    
    (33.7
    )%
  17




---



##### Table of Contents



Cost of revenue, gross profit and gross margin .
 Percentage changeSix Months
    
    
    Six Months
    
    
    Increase/(decrease)
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearCost of revenue
    
    $
    11,953
    
    
    $
    19,235
    
    
    $
    (7,282
    )
    
    
    (37.9
    )%Gross profit
    
    $
    5,963
    
    
    $
    7,796
    
    
    $
    (1,833
    )
    
    
    (23.5
    )%Gross margin
    
    
    33.3
    %
    
    
    28.8
    %
    
    
    4.5
    %
    
    
    15.6
    %
  Sales and marketing .
 Percentage changeSix Months
    
    
    Six Months
    
    
    Increase
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearSales and marketing
    
    $
    3,405
    
    
    $
    3,379
    
    
    $
    26
    
    
    
    0.8
    %
  Research and development .
 Percentage changeSix Months
    
    
    Six Months
    
    
    Decrease from same
    
    
    from the sameEnded
    
    
    Ended
    
    
    period
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    in the prior year
    
    
    yearResearch and development
    
    $
    709
    
    
    $
    1,135
    
    
    $
    (426
    )
    
    
    (37.5
    )%
  General and administrative.
 18




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##### Table of Contents



Percentage changeSix Months
    
    
    Six Months
    
    
    Decrease
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorJune 30, 2010
    
    
    June 30, 2009
    
    
    the prior year
    
    
    yearGeneral and administrative
    
    $
    3,422
    
    
    $
    4,571
    
    
    $
    (1,149
    )
    
    
    (25.1
    )%
  Interest income, net.
 Other income, net .
 Income taxes .
 Operating Outlook
     19




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##### Table of Contents



Liquidity and Capital Resources
 Cash and Cash Flow
     Six Months Ended June 30,2010
    
    
    2009Net cash provided by operating activities
    
    $
    1,758
    
    
    $
    2,902Net cash provided by / (used in) investing activities
    
    
    (7,308
    )
    
    
    3,992Net cash provided by financing activities
    
    
    
    
    
    
    Foreign currency exchange impact on cash flow
    
    
    (116
    )
    
    
    4Increase (decrease) in cash and cash equivalents
    
    $
    (5,666
    )
    
    $
    6,898Cash and cash equivalents at beginning of period
    
    $
    19,775
    
    
    $
    25,619Cash and cash equivalents at end of period
    
    $
    14,109
    
    
    $
    32,517
 
    
    Net cash provided by operating activities.Cash was provided by operating
activities for the six months ended June 30, 2010 primarily as a result of net income
plus non-cash expenses and the combined effect of increases in accounts receivable and
accounts payable. For the current fiscal year, we expect to generate cash from
operating activities.
 Six Months EndedJune 30,2010
    
    
    2009Days outstanding in ending accounts receivable (DSOs)
    
    
    68
    
    
    
    46Inventory turns
    
    
    5
    
    
    
    11
 The increase in DSOs at June 30, 2010 compared to June 30, 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 the second half of
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 2010 and we expect inventory turns
for the remainder of 2010 to remain consistent with the period ended June 30, 2010.
 20




---



##### Table of Contents




    
    Net cash provided by / (used in) investing activities.For the six months ended
June 30, 2010, net cash was used in investing activities primarily 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 six months of 2010 or 2009.
 Investments.
  Contractual Obligations.
 Payment due by period2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    More than 5 yearsOperating lease obligations
    
    $
    220
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
    
    
    $
    Inventory purchase obligations
    
    
    18,117
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Totals
    
    $
    18,337
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
    
    
    $
    
 Off-Balance Sheet Arrangements.
 Acquisitions and Dispositions.
  Net Operating Loss Carry-forwards.
 Liquidity Outlook.
 21




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##### Table of Contents



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 5. OTHER INFORMATION
   
 ITEM 6. EXHIBITS
  23




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##### Table of Contents



IGO, INC. AND SUBSIDIARIES
 
 SIGNATURES
  IGO, INC.Dated:      August 5, 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




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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 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
    
    First Amendment to the iGo, Inc. Omnibus Long-Term Incentive Plan (6)+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+
    
    Management or compensatory plan or agreement.(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 May 20, 2010. 25