##### 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 September 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 Organization)
    
    (IRS Employer Identification No.)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




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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
    
    
    23Item 4.
    
    Controls and Procedures
    
    
    24PART II OTHER INFORMATION
    
    
    24Item 1.
    
    Legal Proceedings
    
    
    24Item 1A.
    
    Risk Factors
    
    
    24Item 6.
    
    Exhibits
    
    
    25SIGNATURES
    
    
    26EXHIBIT INDEX
    
    
    27Items 2, 3, 4 and 5 are not applicable.EX-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)
 September 30,
    
    
    December 31,2009
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    $
    28,544
    
    
    $
    26,139Short-term investments
    
    
    5,049
    
    
    
    4,964Accounts receivable, net
    
    
    8,821
    
    
    
    12,554Inventories
    
    
    5,836
    
    
    
    4,353Prepaid expenses and other current assets
    
    
    367
    
    
    
    527Total current assets
    
    
    48,617
    
    
    
    48,537Property and equipment, net
    
    
    990
    
    
    
    1,147Intangible assets, net
    
    
    1,131
    
    
    
    1,231Notes receivable and other assets, net
    
    
    75
    
    
    
    320Total assets
    
    $
    50,813
    
    
    $
    51,235LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    6,613
    
    
    $
    7,074Accrued expenses and other current liabilities
    
    
    2,527
    
    
    
    3,412Deferred revenue
    
    
    924
    
    
    
    412Total liabilities
    
    
    10,064
    
    
    
    10,898Equity:Common stock, $.01 par value
    
    
    324
    
    
    
    319Additional paid-in capital
    
    
    170,732
    
    
    
    169,863Accumulated deficit
    
    
    (131,279
    )
    
    
    (130,640
    )Accumulated other comprehensive income
    
    
    154
    
    
    
    155Total iGo, Inc. common stockholders equity
    
    
    39,931
    
    
    
    39,697Non-controlling interest
    
    
    818
    
    
    
    640Total equity
    
    
    40,749
    
    
    
    40,337Total liabilities and equity
    
    $
    50,813
    
    
    $
    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
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenue
    
    $
    13,837
    
    
    $
    20,091
    
    
    $
    43,852
    
    
    $
    57,583Cost of revenue
    
    
    8,732
    
    
    
    13,946
    
    
    
    29,552
    
    
    
    40,456Gross profit
    
    
    5,105
    
    
    
    6,145
    
    
    
    14,300
    
    
    
    17,127Operating expenses:Sales and marketing
    
    
    2,009
    
    
    
    2,315
    
    
    
    5,853
    
    
    
    6,576Research and development
    
    
    751
    
    
    
    909
    
    
    
    2,422
    
    
    
    2,612General and administrative
    
    
    1,966
    
    
    
    2,388
    
    
    
    7,072
    
    
    
    9,117Total operating expenses
    
    
    4,726
    
    
    
    5,612
    
    
    
    15,347
    
    
    
    18,305Income (loss) from operations
    
    
    379
    
    
    
    533
    
    
    
    (1,047
    )
    
    
    (1,178
    )Other income (expense):Interest income, net
    
    
    28
    
    
    
    190
    
    
    
    103
    
    
    
    668Gain (loss) on disposal of assets and other income, net
    
    
    131
    
    
    
    136
    
    
    
    483
    
    
    
    397Litigation settlement income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    672Net income (loss)
    
    
    538
    
    
    
    859
    
    
    
    (461
    )
    
    
    559Less: Net income attributable to
non-controlling interest
    
    
    (220
    )
    
    
    (210
    )
    
    
    (178
    )
    
    
    (210
    )Net income (loss) attributable to iGo, Inc.
    
    $
    318
    
    
    $
    649
    
    
    $
    (639
    )
    
    $
    349Net income (loss) attributable to iGo, Inc. per shareBasic
    
    $
    0.01
    
    
    $
    0.02
    
    
    $
    (0.02
    )
    
    $
    0.01Diluted
    
    $
    0.01
    
    
    $
    0.02
    
    
    $
    (0.02
    )
    
    $
    0.01Weighted average common shares outstandingBasic
    
    
    32,412
    
    
    
    31,881
    
    
    
    32,276
    
    
    
    31,745Diluted
    
    
    33,958
    
    
    
    34,482
    
    
    
    32,276
    
    
    
    34,350
  2




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IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
AND COMPREHENSIVE INCOME (LOSS)  (In thousands, except share amounts)  (unaudited)
 AccumulatedAdditional
    
    
    
    
    
    
    OtherCommon Stock
    
    
    Paid-In
    
    
    Accumulated
    
    
    Comprehensive
    
    
    Non-controllingShares
    
    
    Amount
    
    
    Capital
    
    
    Deficit
    
    
    Income
    
    
    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
    
    
    
    
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,008Comprehensive loss:Unrealized Loss on Available for Sale Investments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5
    )
    
    
    
    
    
    
    (5
    )Foreign currency translation adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    4Net income (loss)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (639
    )
    
    
    
    
    
    
    178
    
    
    
    (461
    )Total comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (462
    )Balances at September 30, 2009
    
    
    32,411,531
    
    
    $
    324
    
    
    $
    170,732
    
    
    $
    (131,279
    )
    
    $
    154
    
    
    $
    818
    
    
    $
    40,749
  3




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IGO, INC. AND SUBSIDIARIES
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  (In thousands)  (unaudited)
 Nine Months EndedSeptember 30,2009
    
    
    2008Cash flows from operating activities:Net income (loss)
    
    $
    (461
    )
    
    $
    559Adjustments to reconcile net income (loss) to net cash provided by
operating activities:Provision for doubtful accounts and sales returns and credits
    
    
    545
    
    
    
    292Depreciation and amortization
    
    
    1,145
    
    
    
    1,185Stock compensation expense
    
    
    1,008
    
    
    
    1,558Loss on disposal of assets, net
    
    
    56
    
    
    
    Changes in operating assets and liabilities:Accounts receivable
    
    
    3,188
    
    
    
    371Inventories
    
    
    (1,483
    )
    
    
    3,389Prepaid expenses and other assets
    
    
    (110
    )
    
    
    159Accounts payable
    
    
    (461
    )
    
    
    (4,016
    )Accrued expenses and other current liabilities
    
    
    (507
    )
    
    
    (1,507
    )Net cash provided by operating activities
    
    
    2,920
    
    
    
    1,990Cash flows from investing activities:Purchase of property and equipment
    
    
    (440
    )
    
    
    (152
    )Proceeds from disposal of assets
    
    
    11
    
    
    
    Purchase of investments
    
    
    (4,503
    )
    
    
    (8,812
    )Sale of investments
    
    
    4,410
    
    
    
    10,674Net cash provided by (used in) investing activities
    
    
    (522
    )
    
    
    1,710Cash 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
    
    
    7
    
    
    
    (41
    )Net increase in cash and cash equivalents
    
    
    2,405
    
    
    
    3,687Cash and cash equivalents, beginning of period
    
    
    26,139
    
    
    
    15,908Cash and cash equivalents, end of period
    
    $
    28,544
    
    
    
    19,595
  4




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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
 Generally Accepted Accounting Principles
  Subsequent Events
 5




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Business
Combinations
 Consolidation
 (2) Variable Interest Entities
   6




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##### Table of Contents



iGoMission
    
    
    ConsolidatedASSETSCurrent assets:Cash and cash equivalents
    
    $
    611
    
    
    $
    28,544Short-term investments
    
    
    
    
    
    
    5,049Accounts receivable, net
    
    
    446
    *
    
    
    8,821Inventories
    
    
    519
    
    
    
    5,836Prepaid expenses and other current assets
    
    
    18
    
    
    
    367Total current assets
    
    
    1,594
    
    
    
    48,617Property and equipment, net
    
    
    49
    
    
    
    990Intangible assets, net
    
    
    
    
    
    
    1,131Notes receivable (payable) and other assets
    
    
    (230)
    *
    
    
    75Total assets
    
    $
    1,413
    
    
    $
    50,813LIABILITIES AND EQUITYLiabilities:Accounts payable
    
    $
    256
    
    
    $
    6,613Accrued expenses and other current liabilities
    
    
    339
    *
    
    
    2,527Deferred revenue
    
    
    
    
    
    
    924Total liabilities
    
    
    595
    
    
    
    10,064Equity:Total iGo, Inc. common stockholders equity
    
    
    
    
    
    
    39,931Non-controlling interest
    
    
    818
    *
    
    
    818Total equity
    
    
    818
    
    
    
    40,749Total liabilities and equity
    
    $
    1,413
    
    
    $
    50,813
 
 *
    
    Reflects the elimination of intercompany accounts and notes receivable. (3) Fair Value Measurement
    (4) Investments
   7




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September 30, 2009
    
    
    December 31, 2008Net Unrealized
    
    
    Aggregate
    
    
    
    
    
    
    Net UnrealizedAmortized
    
    
    Holding Gains
    
    
    Fair
    
    
    Amortized
    
    
    Holding Gains
    
    
    AggregateCost
    
    
    (Losses)
    
    
    Value
    
    
    Cost
    
    
    (Losses)
    
    
    Fair ValueU.S. corporate securities:Commercial paper
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    1,642
    
    
    $
    4
    
    
    $
    1,646Corporate notes and bonds
    
    
    5,054
    
    
    
    (5
    )
    
    
    5,049
    
    
    
    3,319
    
    
    
    (1
    )
    
    
    3,318$
    5,054
    
    
    $
    (5
    )
    
    $
    5,049
    
    
    $
    4,961
    
    
    $
    3
    
    
    $
    4,964
 (5) Inventories
  September 30,
    
    
    December 31,2009
    
    
    2008Raw materials
    
    $
    1,169
    
    
    $
    740Finished goods
    
    
    4,667
    
    
    
    3,613$
    5,836
    
    
    $
    4,353
 (6) Intangible Assets
  September 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
    
    
    
    3,834
    
    
    
    (2,848
    )
    
    
    986
    
    
    
    3,320
    
    
    
    (2,270
    )
    
    
    1,050Trade names
    
    
    10
    
    
    
    442
    
    
    
    (297
    )
    
    
    145
    
    
    
    442
    
    
    
    (261
    )
    
    
    181Customer intangibles
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33
    
    
    
    (33
    )
    
    
    Total
    
    
    
    
    
    $
    4,276
    
    
    $
    (3,145
    )
    
    $
    1,131
    
    
    $
    4,129
    
    
    $
    (2,898
    )
    
    $
    1,231
  (7) Notes Receivable and Other Assets
   8




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(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, 2008
    
    
    129,832
    
    
    $
    4.67
    
    
    
    1,595,052
    
    
    $
    3.73
    
    
    
    875,000
    
    
    $
    2.01Granted
    
    
    31,500
    
    
    $
    0.71
    
    
    
    110,250
    
    
    $
    0.59
    
    
    
    
    
    
    
    Canceled
    
    
    
    
    
    
    
    
    
    
    (496,787
    )
    
    $
    2.38
    
    
    
    
    
    
    
    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, September 30, 2009.
    
    
    131,499
    
    
    $
    3.40
    
    
    
    790,194
    
    
    $
    3.20
    
    
    
    625,000
    
    
    $
    2.04
    9




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##### Table of Contents



(9) Net Income (Loss) attributable to iGo, Inc. per Share
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Basic net income (loss) attributable to iGo, Inc. per
share computation:Numerator:Net income (loss) attributable to iGo, Inc.
    
    $
    318
    
    
    $
    649
    
    
    $
    (639
    )
    
    $
    349Denominator:Weighted average number of common shares outstanding
    
    
    32,412
    
    
    
    31,881
    
    
    
    32,276
    
    
    
    31,391Basic net income (loss) attributable to iGo, Inc. per share:
    
    $
    0.01
    
    
    $
    0.02
    
    
    $
    (0.02
    )
    
    $
    0.01Diluted net income (loss) attributable to iGo, Inc. per share
computation:Numerator:Net income (loss) attributable to iGo, Inc.
    
    $
    318
    
    
    $
    649
    
    
    $
    (639
    )
    
    $
    349Denominator:Weighted average number of common shares outstanding
    
    
    32,412
    
    
    
    31,881
    
    
    
    32,276
    
    
    
    31,745Effect of dilutive stock options, warrants, and
restricted stock units
    
    
    1,546
    
    
    
    2,601
    
    
    
    
    
    
    
    2,60533,958
    
    
    
    34,482
    
    
    
    32,276
    
    
    
    34,350Diluted net income (loss) attributable to iGo, Inc. per share:
    
    $
    0.01
    
    
    $
    0.02
    
    
    $
    (0.02
    )
    
    $
    0.01Stock options not included in dilutive net income (loss) per share since antidilutive
    
    
    200
    
    
    
    266
    
    
    
    200
    
    
    
    266Warrants not included in dilutive net income (loss) per share since antidilutive
    
    
    600
    
    
    
    600
    
    
    
    600
    
    
    
    600
 (10) Business Segments, Concentration of Credit Risk and Significant Customers
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Revenues:High-Power Group
    
    $
    5,742
    
    
    $
    11,782
    
    
    $
    23,492
    
    
    $
    34,536Low-Power Group
    
    
    6,252
    
    
    
    6,295
    
    
    
    15,532
    
    
    
    17,754Connectivity Group
    
    
    1,843
    
    
    
    2,014
    
    
    
    4,828
    
    
    
    5,293$
    13,837
    
    
    $
    20,091
    
    
    $
    43,852
    
    
    $
    57,583
 10




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##### Table of Contents



Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Operating income (loss) from operations:High-Power Group
    
    $
    (1,181
    )
    
    $
    (509
    )
    
    $
    (2,585
    )
    
    $
    1,491Low-Power Group
    
    
    3,049
    
    
    
    2,911
    
    
    
    7,735
    
    
    
    5,319Connectivity Group
    
    
    186
    
    
    
    272
    
    
    
    (7
    )
    
    
    335Corporate
    
    
    (1,675
    )
    
    
    (2,141
    )
    
    
    (6,190
    )
    
    
    (8,323
    )$
    379
    
    
    $
    533
    
    
    $
    (1,047
    )
    
    $
    (1,178
    )
  September 30,
    
    
    December 31,2009
    
    
    2008Assets:High-Power Group
    
    $
    8,827
    
    
    $
    11,977Low-Power Group
    
    
    7,308
    
    
    
    6,447Connectivity Group
    
    
    1,656
    
    
    
    2,009Corporate
    
    
    33,022
    
    
    
    30,802$
    50,813
    
    
    $
    51,235
   Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008High-power mobile electronic power products
    
    $
    5,480
    
    
    $
    11,813
    
    
    $
    23,043
    
    
    $
    34,413Low-power mobile electronic power products
    
    
    6,252
    
    
    
    6,296
    
    
    
    15,532
    
    
    
    17,250Expansion and docking products
    
    
    1,843
    
    
    
    2,014
    
    
    
    4,828
    
    
    
    5,293Portable keyboard products
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    504Accessories and other products
    
    
    262
    
    
    
    (31
    )
    
    
    449
    
    
    
    123Total revenues
    
    $
    13,837
    
    
    $
    20,091
    
    
    $
    43,852
    
    
    $
    57,583
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2009
    
    
    2008
    
    
    2009
    
    
    2008North America (principally United States)
    
    $
    12,560
    
    
    $
    19,653
    
    
    $
    40,502
    
    
    $
    54,280Europe
    
    
    1,066
    
    
    
    194
    
    
    
    2,628
    
    
    
    1,635Asia Pacific and all other
    
    
    211
    
    
    
    244
    
    
    
    722
    
    
    
    1,668$
    13,837
    
    
    $
    20,091
    
    
    $
    43,852
    
    
    $
    57,583
 Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2009
    
    2008
    
    2009
    
    2008OEM and private-label-resellers
    
    
    7
    %
    
    
    46
    %
    
    
    30
    %
    
    
    49
    %Retailers and distributors
    
    
    78
    %
    
    
    51
    %
    
    
    58
    %
    
    
    48
    %Direct sales to end users and other
    
    
    15
    %
    
    
    3
    %
    
    
    12
    %
    
    
    3
    %100
    %
    
    
    100
    %
    
    
    100
    %
    
    
    100
    %
  11




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##### Table of Contents



(11) Litigation Settlement
  (12) Contingencies
    12




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##### Table of Contents



ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   
    
    the loss of, and failure to replace, any other significant customers in addition to
Targus, including most notably RadioShack;
 
    
    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;
 13




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##### Table of Contents




    
    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 registered trademark and iGo Green is a 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
     TM
 14




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##### Table of Contents



High-Power Group.
 Low-Power Group.
 Connectivity Group.
 Critical Accounting Policies and Estimates
  15




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##### Table of Contents



Results of Operations
  Three Months Ended
    
    Nine Months EndedSeptember 30,
    
    September 30,2009
    
    2008
    
    2009
    
    2008Revenue
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %
    
    
    100.0
    %Cost of revenue
    
    
    63.1
    %
    
    
    69.4
    %
    
    
    67.4
    %
    
    
    70.3
    %Gross profit
    
    
    36.9
    %
    
    
    30.6
    %
    
    
    32.6
    %
    
    
    29.7
    %Operating expenses:Sales and marketing
    
    
    14.5
    %
    
    
    11.5
    %
    
    
    13.3
    %
    
    
    11.4
    %Research and development
    
    
    5.4
    %
    
    
    4.5
    %
    
    
    5.6
    %
    
    
    4.5
    %General and administrative
    
    
    14.2
    %
    
    
    11.9
    %
    
    
    16.1
    %
    
    
    15.8
    %Total operating expenses
    
    
    34.1
    %
    
    
    27.9
    %
    
    
    35.0
    %
    
    
    31.7
    %Income (Loss) from operations
    
    
    2.8
    %
    
    
    2.7
    %
    
    
    (2.4
    %)
    
    
    (2.0
    %)Other income (expense):Interest, net
    
    
    0.2
    %
    
    
    0.9
    %
    
    
    0.2
    %
    
    
    1.1
    %Other, net
    
    
    0.9
    %
    
    
    0.6
    %
    
    
    1.1
    %
    
    
    0.7
    %Litigation settlement income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.2
    %Net (income) attributable to non-controlling interest
    
    
    (1.6
    %)
    
    
    (1.0
    %)
    
    
    (0.4
    %)
    
    
    (0.4
    %)Net income (loss)
    
    
    2.3
    %
    
    
    3.2
    %
    
    
    (1.5
    %)
    
    
    0.6
    %
 Comparison of Three Months Ended September 30, 2009 and 2008
 Revenue .
 Percentage changeThree Months
    
    
    Three Months
    
    
    Decrease
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorSeptember 30, 2009
    
    
    September 30, 2008
    
    
    the prior year
    
    
    yearHigh-Power Group
    
    $
    5,742
    
    
    $
    11,782
    
    
    $
    (6,040
    )
    
    
    (51.3
    )%Low-Power Group
    
    
    6,252
    
    
    
    6,295
    
    
    
    (43
    )
    
    
    (0.7
    )%Connectivity Group
    
    
    1,843
    
    
    
    2,014
    
    
    
    (171
    )
    
    
    (8.5
    )%Total Revenue
    
    $
    13,837
    
    
    $
    20,091
    
    
    $
    (6,254
    )
    
    
    (31.1
    )%
 High-Power Group.
 Low-Power Group.
 16




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##### Table of Contents



Connectivity Group.
 Cost of revenue, gross profit and gross margin .
 Three Months
    
    Three Months
    
    Increase /Ended
    
    Ended
    
    (decrease)
    
    Percentage change fromSeptember 30,
    
    September 30,
    
    from same period in
    
    the same period in the2009
    
    2008
    
    the prior year
    
    prior yearCost of revenue
    
    $
    8,732
    
    
    $
    13,946
    
    
    $
    (5,214
    )
    
    
    (37.4
    )%Gross profit
    
    $
    5,105
    
    
    $
    6,145
    
    
    $
    (1,040
    )
    
    
    (16.9
    )%Gross margin
    
    
    36.9
    %
    
    
    30.6
    %
    
    
    6.3
    %
    
    
    N/A
  Sales and marketing .
 Three Months
    
    Three MonthsEnded
    
    Ended
    
    Decrease
    
    Percentage changeSeptember 30,
    
    September 30,
    
    from same period
    
    from the same period2009
    
    2008
    
    in the prior year
    
    in the prior yearSales and marketing
    
    $
    2,009
    
    
    $
    2,315
    
    
    $
    (306
    )
    
    
    (13.2
    )%
  Research and development .
 Three Months
    
    Three MonthsEnded
    
    Ended
    
    Decrease from
    
    Percentage change fromSeptember 30,
    
    September 30,
    
    same period
    
    the same period in the2009
    
    2008
    
    in the prior year
    
    prior yearResearch and development
    
    $
    751
    
    
    $
    909
    
    
    $
    (158
    )
    
    
    (17.4
    )%
  17




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General and administrative.
 Percentage changeThree Months
    
    Three Months
    
    Decrease
    
    from the sameEnded
    
    Ended
    
    from same period in
    
    period in the priorSeptember 30, 2009
    
    September 30, 2008
    
    the prior year
    
    yearGeneral and administrative
    
    $
    1,966
    
    
    $
    2,388
    
    
    $
    (422
    )
    
    
    (17.7
    )%
  Interest income (expense), net.
 Other income (expense), net .
 Non-controlling interest.
 Income taxes .
 Comparison of Nine Months Ended September 30, 2009 and 2008
 Revenue .
 Percentage changeNine Months
    
    
    Nine Months
    
    
    Decrease
    
    
    from the sameEnded
    
    
    Ended
    
    
    from same period in
    
    
    period in the priorSeptember 30, 2009
    
    
    September 30, 2008
    
    
    the prior year
    
    
    yearHigh-Power Group
    
    $
    23,492
    
    
    $
    34,536
    
    
    $
    (11,044
    )
    
    
    (32.0
    )%Low-Power Group
    
    
    15,532
    
    
    
    17,754
    
    
    
    (2,222
    )
    
    
    (12.5
    )%Connectivity Group
    
    
    4,828
    
    
    
    5,293
    
    
    
    (465
    )
    
    
    (8.8
    )%Total Revenue
    
    $
    43,852
    
    
    $
    57,583
    
    
    $
    (13,731
    )
    
    
    (23.8
    )%
 High-Power Group.
 18




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##### Table of Contents



Low-Power Group.
 Connectivity Group.
 Cost of revenue, gross profit and gross margin .
 Increase /
    
    Percentage changeNine Months
    
    Nine Months
    
    (Decrease) from
    
    from the sameEnded
    
    Ended
    
    same period in the
    
    period in the priorSeptember 30, 2009
    
    September 30, 2008
    
    prior year
    
    yearCost of revenue
    
    $
    29,552
    
    
    $
    40,456
    
    
    $
    (10,904
    )
    
    
    (27.0
    )%Gross profit
    
    $
    14,300
    
    
    $
    17,127
    
    
    $
    (2,827
    )
    
    
    (16.5
    )%Gross margin
    
    
    32.6
    %
    
    
    29.7
    %
    
    
    2.9
    %
    
    
    N/A
  Sales and marketing .
 Percentage changeNine Months
    
    Nine Months
    
    Decrease
    
    from the sameEnded
    
    Ended
    
    from same period in
    
    period in the priorSeptember 30, 2009
    
    September 30, 2008
    
    the prior year
    
    yearSales and marketing
    
    $
    5,853
    
    
    $
    6,576
    
    
    $
    (723
    )
    
    
    (11.0
    )%
  19




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Research and development .
 Percentage changeNine Months
    
    Nine Months
    
    Decrease from
    
    from the sameEnded
    
    Ended
    
    same period
    
    period in the priorSeptember 30, 2009
    
    September 30, 2008
    
    in the prior year
    
    yearResearch and development
    
    $
    2,422
    
    
    $
    2,612
    
    
    $
    (190
    )
    
    
    (7.3
    )%
  General and administrative.
 Percentage changeNine Months
    
    Nine Months
    
    Decrease
    
    from the sameEnded
    
    Ended
    
    from same period in
    
    period in the priorSeptember 30, 2009
    
    September 30, 2008
    
    the prior year
    
    yearGeneral and administrative
    
    $
    7,072
    
    
    $
    9,117
    
    
    $
    (2,045
    )
    
    
    (22.4
    )%
  Interest income (expense), net.
 Other income (expense), net .
 Litigation settlement income .
 Income taxes .
 20




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##### Table of Contents



Operating Outlook
    Liquidity and Capital Resources
 Cash and Cash Flow
    21




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##### Table of Contents



Nine Months Ended September 30,2009
    
    
    2008Net cash provided by operating activities
    
    $
    2,920
    
    
    $
    1,990Net cash provided by (used in) investing activities
    
    
    (522
    )
    
    
    1,710Net cash provided by financing activities
    
    
    
    
    
    
    28Foreign currency exchange impact on cash flow
    
    
    7
    
    
    
    (41
    )Increase in cash and cash equivalents
    
    $
    2,405
    
    
    $
    3,687Cash and cash equivalents at beginning of period
    
    $
    26,139
    
    
    $
    15,908Cash and cash equivalents at end of period
    
    $
    28,544
    
    
    $
    19,595
 
    
    Net cash provided by operating activities.Cash was provided by operating activities
for the nine months ended September 30, 2009 primarily as a result of collections of
accounts receivable and sales of inventory, partially offset by the use of cash to pay
suppliers. 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:
 Nine Months EndedSeptember 30,2009
    
    2008Days outstanding in ending accounts receivable (DSOs)
    
    
    55
    
    
    
    77Inventory turns
    
    
    8
    
    
    
    14
  
    
    Net cash used in investing activities.For the nine months ended September 30,
2009, net cash was used in investing activities was primarily for the purchase of
property and equipment.
    
    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.
  22




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##### Table of Contents



Contractual Obligations.
 Payment due by period2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    More than 5 yearsOperating lease obligations
    
    $
    106
    
    
    $
    431
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76Inventory purchase obligations
    
    
    11,447
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Totals
    
    $
    11,553
    
    
    $
    431
    
    
    $
    440
    
    
    $
    444
    
    
    $
    455
    
    
    $
    76
  Off-Balance Sheet Arrangements.
 Acquisitions and Dispositions.
  Net Operating Loss Carry-forwards.
 Liquidity Outlook.
 Recent Accounting Pronouncements
  
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   23




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##### Table of Contents



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
  We depend on large purchases from a significant customer, RadioShack, and any loss,
cancellation or delay in purchases by this customer could cause a shortfall in revenue, excess
inventory and inventory holding or obsolescence charges.
  24




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##### Table of Contents



Our success is largely dependent upon our ability to expand and diversify our customer base,
while simultaneously continuing to retain and build our relationship RadioShack.
   
 ITEM 6. EXHIBITS
  25




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##### Table of Contents



IGO, INC. AND SUBSIDIARIES
SIGNATURES
  IGO, INC.Dated:      November 5, 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) 26




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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. 27