10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2010

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 0-30907

iGo, Inc.

(Exact name of registrant as specified in its charter)

Delaware	86-0843914
(State or Other Jurisdiction of	(IRS Employer Identification No.)
Incorporation or Organization)

17800 N. Perimeter Dr., Suite 200, Scottsdale, Arizona	85255
(Address of Principal Executive Offices)	(Zip Code)

(480) 596-0061
(Registrant’s telephone number, including area code)

Not applicable
(Former name, former address, and former fiscal year if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES þ   NO o

Indicate by a checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Date File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES o   NO o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o Accelerated Filer o Non-Accelerated Filer o (Do not check if a smaller reporting company) Smaller Reporting Company þ

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES o   NO þ

At May 6, 2010, there were 32,715,580 shares of the Registrant’s Common Stock, par value $0.01 per share outstanding.

IGO, INC.
FORM 10-Q

TABLE OF CONTENTS

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

i

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS:

IGO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share amounts)
(unaudited)

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

See accompanying notes to unaudited condensed consolidated financial statements.

1

IGO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
(unaudited)

	Three Months Ended
	March 31,
	2010			2009
				As recast
Revenue	$	8,168		$	13,412
Cost of revenue		5,517			9,515
Gross profit		2,651			3,897
Operating expenses:
Sales and marketing		1,771			1,873
Research and development		319			652
General and administrative		1,636			2,725
Total operating expenses		3,726			5,250
Loss from operations		(1,075	)		(1,353	)
Other income:
Interest income, net		56			92
Other income, net		1,788			210
Net income (loss)	$	769		$	(1,051	)
Net income (loss) per share:
Basic	$	0.02		$	(0.03	)
Diluted	$	0.02		$	(0.03	)
Weighted average common shares outstanding:
Basic		32,558			32,087
Diluted		33,634			32,087

See accompanying notes to unaudited condensed consolidated financial statements.

2

IGO, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)

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

See accompanying notes to unaudited condensed consolidated financial statements.

3

IGO, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)

(1) Basis of Presentation

     The accompanying condensed consolidated financial statements include the accounts of iGo, Inc. and its wholly-owned subsidiaries, Mobility California, Inc., Mobility Idaho, Inc., iGo EMEA Limited, Mobility Texas, Inc., Mobility Assets, Inc., and iGo Direct Corporation (collectively, “iGo” or the “Company”). All significant intercompany balances and transactions have been eliminated in the accompanying condensed consolidated financial statements.

     Prior to January 1, 2010, the accounts of Mission Technology Group, Inc. (“Mission”), in which Mobility California, Inc. held a 15% equity interest were included in the condensed consolidated financial statements of iGo, Inc. Pursuant to Accounting Standards Update 2009-17 (“ASU 2009-17”), “Consolidations (Topic 810) – Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities,” the Company no longer meets the conditions to be the primary beneficiary of Mission. As a result, the Company no longer consolidates the results of Mission as of January 1, 2010 and has removed the results of Mission from the presentation of historical financial information in this filing. See Note 2.

     The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. generally accepted accounting principles, pursuant to rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, the accompanying condensed consolidated financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. Certain information and footnote disclosures have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2009 included in the Company’s Form 10-K, filed with the SEC. The results of operations for the three months ended March 31, 2010 are not necessarily indicative of results to be expected for the full year or any other period.

     The preparation of the condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates, including those related to bad debts, sales returns and price protection, inventories, warranty obligations, and contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Recent Accounting Pronouncements

     In February 2010, the Financial Accounting Standards Board (“FASB”) issued Auditing Standards Update (“ASU”) 2010-09, “Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements” (“ASU 2010-09”). ASU 2010-09 reiterates that an SEC filer is required to evaluate subsequent events through the date that the financial statements are issued but eliminates the required disclosure of the date through which subsequent events have been evaluated. The updated guidance was effective upon issuance and its adoption did not have an impact on the Company’s consolidated financial statements.

     In January 2010, the FASB issued ASU 2010-06, “Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements”. FASB ASU 2010-06 requires new disclosures on transfers in and out of Level 1 and Level 2 fair value measurements and separate disclosures for activity relating to Level 3 fair value measurements. In addition, this guidance clarifies existing fair value disclosures for the level of disaggregation and the input and valuation techniques used to measure fair value. The new disclosures are effective for interim and annual reporting periods beginning after December 15, 2009. The Company has adopted this guidance and there has been no significant impact to the Company’s disclosures upon adoption.

     In December 2009, the FASB issued ASU 2009-17, which changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with Variable Interest Entities (“VIE”) and any significant changes in risk exposure due to that involvement. ASU 2009-17 is effective for fiscal years beginning after

4

November 15, 2009 and for interim periods within the first annual reporting period. As noted above, upon adoption of ASU 2009-17, effective January 1, 2010, the Company no longer meets the conditions to be the primary beneficiary of Mission. As a result, the Company no longer consolidates the results of Mission.

(2) Mission Deconsolidation

     In April 2007, the Company sold the assets of its expansion and docking business to Mission, an entity that was formed by a former officer of the Company, in exchange for $3,930,000 of notes receivable and a 15% common equity interest in Mission.

     Effective January 1, 2010, upon the adoption of ASU 2009-17, the Company determined that, although Mission is a VIE, the Company is no longer the primary beneficiary of Mission, as the Company did not, and does not, have the power to direct the activities that most significantly impact the economic performance of Mission. As a result, the Company no longer consolidates the results of Mission as of January 1, 2010 and has removed the results of Mission from the presentation of historical financial information in this filing. Accordingly, the condensed consolidated balance sheet as of December 31, 2009 and the condensed consolidated statements of operations, and cash flows for the three months ended March 31, 2009 have been recast to give effect to the removal of Mission from the accompanying condensed consolidated financial statements.

     During the three months ended March 31, 2010, Mission was in the process of obtaining outside financing sufficient to repay its remaining obligation to the Company. On April 19, 2010, the Company entered into a transaction with Mission that resulted in complete collection of its note receivable and the sale of its 15% common equity interest, which had been valued at $0. As the Company had previously recorded a valuation allowance of $1,714,000 against the promissory notes, the Company determined that as of March 31, 2010, based on the subsequent collection of $1,700,000 as payment-in-full against the note receivable, collectability of the note was reasonably assured. Accordingly, the Company reversed its valuation allowance against the note receivable and recorded a gain of $1,714,000 during the three months ended March 31, 2010, which gain is included in the accompanying Condensed Consolidated Statements of Operations under the caption “Other income, net.” The uncollected note receivable balance of $1,700,000 is reflected in the accompanying Condensed Consolidated Balance Sheets under the caption “Note receivable, net” as a current asset on March 31, 2010. See Note 12.

5

     The following table presents the Condensed Consolidated Balance Sheet as of December 31, 2009, reflecting the deconsolidation of Mission, as recast (amounts in thousands).

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

6

     The following table presents the Condensed Consolidated Statement of Operations for the three months ended March 31, 2009, reflecting the deconsolidation of Mission, as recast (amounts in thousands).

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

7

     The following table presents the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2009, reflecting the deconsolidation of Mission, as recast (amounts in thousands).

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

(3) Fair Value Measurement

     As of March 31, 2010, the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis are comprised of overnight money market funds and investments in marketable securities.

     The Company invests excess cash from its operating cash accounts in overnight money market funds and reflects these amounts within cash and cash equivalents on the condensed consolidated balance sheet at a net value of 1:1 for each dollar invested.

     At March 31, 2010, investments totaling $19,394,000 are classified as short-term investments on the condensed consolidated balance sheet. These investments are considered available-for-sale securities and are reported at fair value based on third-party broker statements, which qualifies as level 2 in the fair value hierarchy. The unrealized gains and losses on available-for-sale securities are recorded in accumulated other comprehensive income. Realized gains and losses are included in interest income, net.

(4) Investments

8

     The Company has determined that all of its investments in marketable securities should be classified as available-for-sale and reported at fair value.

     The Company assesses its investments in marketable securities for other-than-temporary declines in value by considering various factors that include, among other things, any events that may affect the creditworthiness of a security’s issuer, the length of time the security has been in a loss position, and the Company’s ability and intent to hold the security until a forecasted recovery of fair value.

     The Company used net cash of $6,630,000 and generated net proceeds of $2,753,000 from the purchase and sale of available-for-sale marketable securities during the three months ended March 31, 2010 and 2009, respectively.

     As of March 31, 2010 and December 31, 2009, the amortized cost basis, unrealized holding gains, unrealized holding losses, and aggregate fair value by short-term major security-type investments were as follows (amounts in thousands):

	March 31, 2010							December 31, 2009
			Net Unrealized							Net Unrealized
			Holding Gains							Holding Gains
	Amortized Cost		(Losses)			Aggregate Fair Value		Amortized Cost		(Losses)			Aggregate Fair Value
U.S. corporate securities:
Commercial paper	$	3,597	$	—		$	3,597	$	3,495	$	—		$	3,495
Corporate notes and bonds		4,469		(7	)		4,462		3,278		—			3,278
		8,066		(7	)		8,059		6,773		—			6,773
U.S. municipal funds		5,021		—			5,021		5,000		4			5,004
U.S. government securities		6,321		(7	)		6,314		1,001		(1	)		1,000
	$	19,408	$	(14	)	$	19,394	$	12,774	$	3		$	12,777

(5) Inventories

     Inventories consist of the following at March 31, 2010 and December 31, 2009 (amounts in thousands):

	March 31,		December 31,
	2010		2009
			As recast
Raw materials	$	—	$	—
Finished goods		4,610		5,964
	$	4,610	$	5,964

(6) Intangible Assets

     Intangible assets consist of the following at March 31, 2010 and December 31, 2009 (amounts in thousands):

			March 31, 2010							December 31, 2009
												As recast
	Average		Gross					Net		Gross					Net
	Life		Intangible		Accumulated			Intangible		Intangible		Accumulated			Intangible
	(Years)		Assets		Amortization			Assets		Assets		Amortization			Assets
Amortized intangible
assets:
Patents and trademarks		3	$	4,096	$	(3,271	)	$	825	$	3,967	$	(3,052	)	$	915
Trade names		10		442		(321	)		121		442		(309	)		133
Total			$	4,538	$	(3,592	)	$	946	$	4,409	$	(3,361	)	$	1,048

     Aggregate amortization expense for identifiable intangible assets totaled $231,000 and $159,000 for the three months ended March 31, 2010 and 2009, respectively.

(7) Notes Receivable and Other Assets, Net

     In February 2007, the Company sold substantially all of the assets of its handheld connectivity business to CradlePoint, Inc. (“CradlePoint”) for $1,800,000 plus potential additional consideration based on future performance. In May

9

2009, the Company amended the terms of its agreement with CradlePoint to set the total consideration for the sale of this business at $2,351,000, plus interest.

     The estimated net realizable value of the note receivable from CradlePoint in connection with this transaction is included in notes receivable and other assets, net. The gross outstanding principal balance of the promissory note was $373,000 as of March 31, 2010, and the Company has recorded an allowance of $373,000 against the note and, accordingly, the net balance of the CradlePoint note receivable was $0 as of March 31, 2010 and December 31, 2009.

(8) Stock-based Compensation

     Stock-based compensation expense includes compensation expense, recognized over the applicable requisite service periods for share-based awards. As of March 31, 2010, there were 35,000 fully-vested outstanding stock options and no non-vested outstanding stock options. Accordingly, there was no unrecognized compensation expense relating to non-vested stock options at March 31, 2010.

     The following table summarizes information for the three months ended March 31, 2010 regarding restricted stock unit activity under the 2004 Directors Plan, the 2004 Omnibus Plan and a grant made pursuant to Nasdaq Rule 5635(c)(4):

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

     For the three months ended March 31, 2010 and 2009, the Company recorded in general and administrative expense pre-tax charges of $267,000 and $281,000 associated with the expensing of restricted stock unit awards activity.

     As of March 31, 2010, there was $2,161,000 of total unrecognized compensation cost related to non-vested restricted stock units, which is expected to be recognized over a weighted average period of one year.

     As of March 31, 2010, all outstanding restricted stock units were non-vested.

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(9) Net Income (Loss) per Share

          The computation of basic and diluted net income (loss) per share follows (in thousands, except per share amounts):

	Three Months Ended
	March 31,
	2010		2009
			As recast
Basic net income (loss) per share computation:
Numerator:
Net income (loss)	$	769	$	(1,051	)
Denominator:
Weighted average number of common shares outstanding		32,558		32,087
Basic net income (loss) per share:	$	0.02	$	(0.03	)
Basic and Diluted net loss per share computation:
Numerator:
Net income (loss)	$	769	$	(1,051	)
Denominator:
Weighted average number of common shares outstanding		32,558		32,087
Effect of dilutive stock options, warrants, and restricted stock units		1,076		—
		33,634		32,087
Diluted net income (loss) per share:	$	0.02	$	(0.03	)
Stock options not included in dilutive loss per share since anti-dilutive		35		211
Warrants not included in dilutive loss per share since anti-dilutive		5		600

(10) Business Segment, Concentration of Credit Risk and Significant Customers

          Effective January 1, 2010, upon the deconsolidation of the results of Mission, the Company eliminated the Connectivity Group segment and re-evaluated its remaining operations, including how the Company’s chief operating decision maker (“CODM”) manages those operations, and has determined that the Company now operates a single business segment, which consists of the development, marketing and sales of electronics accessories. As a result of this change, the Company has revised the corresponding items of segment information for prior periods.

          The Company attributes revenue from external customers to geography based on the location to which products are shipped. The following tables summarize the Company’s revenues by product line, as well as its revenues by geography (amounts in thousands):

	Three Months Ended
	March 31,
	2010		2009
			As recast
Computer power products	$	5,081	$	9,665
Mobile electronic device power products		2,940		3,654
Other		147		93
Total revenues	$	8,168	$	13,412

	Three Months Ended
	March 31,
	2010		2009
			As recast
North America (principally United States)	$	7,182	$	12,184
Europe		712		783
Asia Pacific		274		445
	$	8,168	$	13,412

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          The majority of the Company’s assets are domiciled in the United States.

          Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its cash with high credit quality financial institutions and generally limits the amount of credit exposure to the amount of FDIC coverage. However, periodically during the year, the Company maintains cash in financial institutions in excess of the FDIC insurance coverage limit of $250,000. The Company performs ongoing credit evaluations of its customers’ financial condition, but does not typically require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information.

          One customer accounted for 40% of net sales for the three months ended March 31, 2010. Two customers accounted for 51% and 26%, respectively, for the three months ended March 31, 2009.

          Two customers’ accounts receivable balances accounted for 47% and 14%, respectively, of net accounts receivable at March 31, 2010 and 69% and 17%, respectively, at March 31, 2009.

          Allowance for doubtful accounts was $131,000 and $130,000 at March 31, 2010 and December 31, 2009, respectively. Allowance for sales returns and price protection was $364,000 and $442,000 at March 31, 2010 and December 31, 2009, respectively.

(11) Contingencies

          The Company procures its products primarily from supply sources based in Asia. Typically, the Company places purchase orders for completed products and takes ownership of the finished inventory upon completion and delivery from its supplier. Occasionally, the Company presents its suppliers with ‘Letters of Authorization’ for the suppliers to procure long-lead raw components to be used in the manufacture of the Company’s products. These Letters of Authorization indicate the Company’s commitment to utilize the long-lead raw components in production. As of June 30, 2007, based on a change in strategic direction, the Company determined it would not procure certain products for which it had outstanding Letters of Authorization with suppliers. The Company believes it is probable that it will be required to pay suppliers for certain Letter of Authorization commitments and has already partially settled some of these obligations. At March 31, 2010, the Company had estimated, and recorded, a remaining liability for this contingency in the amount of $125,000.

          From time to time, the Company is involved in legal proceedings arising in the ordinary course of its business. The Company is not currently a party to any litigation that the Company believes, if determined adversely to it, would have a material adverse effect on its financial condition, results of operations, or cash flows.

(12) Subsequent Event

          As previously reported, in April 2007, Mobility California, Inc., which is a wholly-owned subsidiary of the Company, completed the sale of the assets of its expansion and docking business to Mission in exchange for two promissory notes totaling $3,930,000 and a 15% common equity interest in Mission. The first promissory note, in the principal amount of $1,430,000, was paid in full in August 2008.

          On April 19, 2010, Mobility California, Inc. and Mission entered into an agreement pursuant to which Mission paid Mobility California, Inc. $1,700,000 in complete satisfaction of the outstanding balance owed to it under the second promissory note, having an original principal balance of $2,500,000. In connection with Mission’s repayment of the second promissory note, Mobility California, Inc. also assigned its fifteen percent (15%) ownership interest in Mission, which had been valued at $0, back to Mission in exchange for the right to receive fifteen percent (15%) of the net proceeds generated from a sale of Mission at any time on or prior to April 19, 2011, or seven and one-half percent (7.5%) of the net proceeds generated from a sale of Mission at any time between April 19, 2011 and April 19, 2012.

          Upon receipt of the $1,700,000, Mobility California, Inc. will have received total cash proceeds of $3,930,000, plus interest, in connection with the sale of the docking and expansion business to Mission. As the Company had previously recorded a valuation allowance of $1,714,000 against the promissory notes, the Company has determined that as of March 31, 2010, based on the subsequent collection of $1,700,000 as payment-in-full against the second promissory note, collectability of the note was reasonably assured. Accordingly, the Company has reversed its valuation allowance against the second promissory note and has recorded a gain of $1,714,000 during the three months ended March 31, 2010, which gain is included in the accompanying Condensed Consolidated Statements of Operations under the caption “Other income, net.”

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

          This report contains statements that constitute “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The words “believe,” “expect,” “anticipate,” “estimate” and other similar statements of expectations identify forward-looking statements. Forward-looking statements in this report can be found in the “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections as well as other sections of this report and include, without limitation, the expectation that we will see a reduction in revenue in the first half of 2010 compared to 2009 as a result of the discontinuance of our relationship with Targus; the expectation that as a result of the loss of our largest customer, Targus, we will be even more dependent upon a relatively small number of customers for a significant portion of our revenue, including most notably RadioShack; the belief that we will be successful in our efforts to partially offset declines in Targus revenue by anticipated further gains in market penetration into mobile wireless carriers, distributors and retailers largely through our sales efforts; our anticipated gross profit, gross margin, and related expenses and operating metrics for 2010; our strategy, including but not limited to, our intentions to continue to develop and introduce new products and technologies, file patents and expand our intellectual property position, market non-power accessories, and market and expand our “green” power product offerings to address the problem of “vampire power” as well as the expected benefits that will result from our efforts; that sales to RadioShack will continue to decline in 2010; expectations regarding the impact of the current economic recession on us and our industry; anticipated planned research and development efforts; beliefs relating to our competitive advantages and the market need for our products; the sufficiency of our cash and liquidity; the likelihood that we will be required to pay certain Letter of Authorization commitments; beliefs relating to our distribution capabilities and brand identity; expectations regarding the timing and success of new product introductions, including our anticipated launch of new “green” power management solutions and their impact on our long term goals; the anticipated strength, ability to protect, and actions relating to our intellectual property portfolio; our intention to continue to develop power products in existing and new markets; our intention to develop broader relationships with retailers and wireless carriers for our power products; our intention to continue to make capital expenditures and pursue opportunities to acquire businesses, products and technologies; expectations about inventory levels we will be required to maintain and future sales returns; expectations about competition; the possibility we may issue additional shares of stock or debt; our intention and ability to hold marketable securities to maturity; projections about the outcome of litigation against the Company; expected limitations on our ability to utilize our operating loss carryforwards; the timing of amortization of stock-based compensation expense; our intentions to reinvest cash balances held in the United Kingdom and our intentions to invest excess cash held in the United States in short-term investments; and our beliefs about the market risks associated with our financial instruments.

          These forward-looking statements are based largely on our management’s expectations and involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance, achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include those discussed in our Annual Report on Form 10-K for the year ended December 31, 2009 under the heading “Risk Factors” and those set forth in other sections of this report and in other reports that we file with the SEC. Additional factors that could cause actual results to differ materially from those expressed in these forward-looking statements include, among others, the following:

• our dependence on large purchases from a significant customer;

• our ability to expand and diversify our customer base;

• our ability to expand our revenue base and develop new products

• our loss or failure to replace any significant retail or distribution partners;

• our failure to expand or protect our proprietary rights and intellectual property;

• our failure to complete development of products in a timely manner;

• our failure to achieve the performance criteria required of our products by our customers;

• fluctuations in our operating results because of: the timing of new product and technology introductions and product enhancements relative to our competitors, market acceptance of our products, the size and timing of customer orders,

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our ability to effectively manage inventory levels, delay or failure to fulfill orders for our products on a timely basis, distribution of or changes in our revenue among distribution partners and retailers, our inability to accurately forecast our contract manufacturing needs, difficulties with new product production implementation or supply chain, our suppliers’ ability to perform under their contracts with us, product defects and other product quality problems, the degree and rate of growth in our markets and the accompanying demand for our products, our ability to expand our internal and external sales forces and build the required infrastructure to meet anticipated growth, and seasonality of sales;

• increased focus on consumer electronics retailers on their own private label brands;

• decreasing sales prices on our products over their sales cycles;

• increased reliance upon RadioShack;

• the termination of reseller and distributor agreements or reduced or delayed orders;

• difficulty in predicting sales to our customers resulting in increased levels of inventory;

• lack of visibility to end user customers;

• resellers and distributors promotion of competitor products;

• corporate and other sales incentive changes at our resellers and distributors;

• our failure to introduce new products and product enhancements that achieve market acceptance;

• our failure to integrate acquired businesses, products and technologies;

• our failure to protect our intellectual property;

• intellectual property infringement claims against us;

• our reliance on and the risk relating to outsourced manufacturing fulfillment of our products, including potential increases in manufacturing costs;

• our reliance on sole sources for key components;

• our ability to manage our anticipated growth;

• our ability to manage our inventory levels;

• the negative impacts of product returns;

• design and performance issues with our products;

• product liability claims;

• our ability to hire and retain qualified personnel;

• our ability to secure additional financing to meet our future capital needs;

• increased competition and/or reduced demand in our industry;

• our failure to comply with domestic and international laws and regulations;

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• economic conditions, political events, war, terrorism, public health issues, natural disasters and similar circumstances;

• volatility in our stock price;

• the risk that our common stock could be delisted from Nasdaq;

• concentration of stock ownership among our executive officers and principal stockholders;

• provisions in our certificate of incorporation, bylaws and Delaware law, as well as our stockholder rights plan, that could make a proposed acquisition of the Company more difficult; and

• dilution resulting from potential future stock issuances.

          In light of these risks and uncertainties, there can be no assurance that the forward-looking statements contained in this report will prove to be accurate. We undertake no obligation to publicly update or revise any forward-looking statements, or any facts, events, or circumstances after the date hereof that may bear upon forward-looking statements.

          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

          Increased functionality and the ability to access and manage information remotely are driving the proliferation of mobile electronic devices and applications. The popularity of these devices is benefiting from reductions in size, weight and cost and improvements in functionality, storage capacity and reliability. Each of these devices needs to be powered and connected when in the home, the office, or on the road, and can be accessorized, representing opportunities for one or more of our products.

          We use our proprietary technology to design and develop products that make computers and mobile electronic devices more efficient and cost effective, thus enabling professionals and consumers higher utilization of their mobile devices and the ability to access information more readily. Our products include power supplies and other accessories for computers and mobile electronic devices, such as laptop computers, netbook computers, mobile phones, PDAs, digital cameras, portable gaming devices and MP3 players.

          Sales through retailers and distributors accounted for approximately 84% of revenue for the three months ended March 31, 2010 and approximately 45% of revenue for the three months ended March 31, 2009. Sales to private-label resellers and OEMs accounted for approximately 12% of revenue for the three months ended March 31, 2010 and approximately 53% of revenue for the three months ended March 31, 2009. The balance of our revenue during these periods was derived from direct sales to end-users.

          In March 2009, Targus notified us of its intent not to renew our distribution agreement, which expired in May 2009. At that time, Targus was one of our two largest customers and accounted for 51% of our sales for the three months ended March 31, 2009. Targus accounted for 0% of our sales for the three months ended March 31, 2010. Accordingly, in the future, we expect that we will be even more dependent upon a relatively small number of customers for a significant portion of our revenue, including most notably RadioShack. Further, we expect to experience a reduction in our revenue in the first half of 2010 compared to 2009 as a result of the discontinuance of our relationship with Targus. We intend to develop relationships with a broader set of retailers and wireless carriers to expand the market availability of our iGo branded products. Our goal is that these relationships will allow us to diversify our customer base, add stability and decrease our historical reliance upon a limited number of customers. These relationships could significantly increase the availability and exposure of our products, particularly among large national and international retailers and wireless carriers, however we can provide no assurance that we will be able to replace the lost revenue from Targus.

          Our focus is on becoming a comprehensive provider of power management solutions. The centerpiece of our new power management solutions is the launch of our new iGo Green^® products. The first iGo Green products are notebook

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chargers and surge protectors which incorporate our new patent-pending technology which has been designed to reduce energy consumption and almost completely eliminate standby power, or “Vampire Power,” that results from devices that continue to consume power even when they are idle or shut-off, such as computers and mobile phones.

          We believe that this power-saving technology, when combined with our existing power products that incorporate our patented tip technology for mobile electronic devices, will help us achieve our long-term goal of establishing an industry standard for reduced power consumption in the charging of mobile electronic devices.

          Our ability to execute successfully on our near and long-term objectives depends largely upon the general market acceptance of our power-saving and tip technologies, our ability to protect our proprietary rights to these technologies, our ability to generate additional major customers, and on the general economic conditions. Additionally, we must execute on the customer relationships that we have developed and continue to design, develop, manufacture and market new and innovative technology and products that are embraced by these customers and the overall market in general.

Recent Developments

          Effective January 1, 2010, we deconsolidated the results of Mission, eliminated the corresponding Connectivity Group Segment, and re-evaluated our remaining operations and have determined that we now operate and report a single business segment, which consists of the development, marketing and sale of electronics accessories.

          On April 19, 2010, we entered into an agreement with Mission, wherein Mission paid us $1.7 million in complete satisfaction of the outstanding balance owed to us under a promissory note, having an original principal balance of $2.5 million. In connection with Mission’s repayment of this promissory note, we also assigned our 15% ownership in Mission back to Mission in exchange for the right to receive 15% of the net proceeds generated from a sale at any time on or prior to April 19, 2011, or 7.5% of the net proceeds generated from a sale of Mission at any time between April 19, 2011 and April 19, 2012.

Critical Accounting Policies and Estimates

          Effective January 1, 2010, we adopted the provisions of ASU 2009-17, which changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. Upon adoption of ASU 2009-17, we determined we no longer meet the conditions to be the primary beneficiary of Mission. As a result, we no longer consolidate the results of Mission, and we no longer consider “Variable Interest Entities” to be a Critical Accounting Policy and Estimate.

          There were no other changes in our critical accounting policies during the three months ended March 31, 2010 from those set forth in our Annual Report on Form 10-K for the year ended December 31, 2009.

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Results of Operations

          The following table presents certain selected consolidated financial data for the periods indicated expressed as a percentage of total revenue:

	Three months ended
	March 31,
	2010			2009
Revenue		100.0	%		100.0	%
Cost of revenue		67.5	%		70.9	%
Gross profit		32.5	%		29.1	%
Operating expenses:
Sales and marketing		21.7	%		14.0	%
Research and development		3.9	%		4.9	%
General and administrative		20.0	%		20.3	%
Total operating expenses		45.6	%		39.2	%
Loss from operations		-13.1	%		-10.1	%
Other income:
Interest, net		0.6	%		0.7	%
Other, net		21.9	%		1.6	%
Net income (loss)		9.4	%		-7.8	%

Comparison of Three Months Ended March 31, 2010 and 2009

          Revenue. Revenue generally consists of sales of products, net of returns and allowances. To date, our revenues have come predominantly from power adapters and accessories. The following table summarizes the year-over-year comparison of our consolidated revenue for the periods indicated ($ in thousands):

	Three Months		Three Months
	Ended		Ended		Decrease			Percentage change
	March 31,		March 31,		from same period			from the same period
	2010		2009		in the prior year			in the prior year
Revenue	$	8,168	$	13,412	$	(5,244	)		(39.1	)%

          The decrease in revenue was primarily due to the loss of the Targus account in the second quarter of 2009. Sales to Targus decreased by $6.8 million, to almost zero for the three months ended March 31, 2010 compared to $6.8 million for the three months ended March 31, 2009. Sales to RadioShack decreased by $192,000, to $3.2 million for the three months ended March 31, 2010 from $3.4 million for the three months ended March 31, 2009. These decreases were partially offset by increases in sales of iGo-branded products to retailers and distributors of $1.0 million, to $3.6 million for the three months ended March 31, 2010 from $2.6 million for the three months ended March 31, 2009. Also partially offsetting the decrease in revenue was an increase in sales of private-label product to Belkin of $644,000 for the three months ended March 31, 2010, to whom we began selling in the second quarter of 2009. We anticipate continuing to gain market penetration for our iGo-branded power products into wireless distribution and other retail channels in 2010, which could partially offset the decrease in revenue from Targus. We also expect sales to RadioShack to continue to decline in 2010 as a result of the introduction of its own private-label brand of power products.

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          Cost of revenue, gross profit and gross margin. Cost of revenue generally consists of costs associated with components, outsourced manufacturing and in-house labor associated with assembly, testing, packaging, shipping and quality assurance, depreciation of equipment and indirect manufacturing costs. Gross profit is the difference between revenue and cost of revenue. Gross margin is gross profit stated as a percentage of revenue. The following table summarizes the year-over-year comparison of our cost of revenue, gross profit and gross margin for the periods indicated ($ in thousands):

	Three Months			Three Months
	Ended			Ended			Increase/Decrease			Percentage change
	March 31,			March 31,			from same period			from the same period
	2010			2009			in the prior year			in the prior year
Cost of revenue	$	5,517		$	9,515		$	(3,998	)		(42.0	)%
Gross profit	$	2,651		$	3,897		$	(1,246	)		(32.0	)%
Gross margin		32.5	%		29.1	%		3.4	%		11.7	%

          The decrease in cost of revenue and the corresponding decrease in gross profit was due primarily to the decrease in revenue discussed above. The increase in gross margin was due primarily to an increase in average direct margin, which excludes labor and overhead costs, to 44.6% for the three months ended March 31, 2010 compared to 32.4% for the three months ended March 31, 2009, primarily as a result of the increased direct margin on sales of iGo-branded products direct to retail channels, rather than through private-label resellers. The increase in direct margin was partially offset by fixed overhead expenses allocated across a lower revenue base. As a result of these factors, cost of revenue as a percentage of revenue decreased to 67.5% for the three months ended March 31, 2010 from 70.9% for the three months ended March 31, 2009.

          Sales and marketing. Sales and marketing expenses generally consist of salaries, commissions and other personnel-related costs of our sales, marketing and support personnel, advertising, public relations, promotions, printed media and travel. The following table summarizes the year-over-year comparison of our sales and marketing expenses for the periods indicated ($ in thousands):

	Three Months		Three Months
	Ended		Ended		Decrease			Percentage change
	March 31,		March 31,		from same period			from the same period
	2010		2009		in the prior year			in the prior year
Sales and marketing	$	1,771	$	1,873	$	(102	)		(5.4	)%

          The decrease in sales and marketing expenses primarily resulted from declines of $43,000 in personnel-related expenses and $48,000 in advertising and trade shows for the three months ended March 31, 2010, compared to the three months ended March 31, 2009. As a percentage of revenue, sales and marketing expenses increased to 21.7% for the three months ended March 31, 2010 from 14.0% for the three months ended March 31, 2009.

          Research and development. Research and development expenses consist primarily of salaries and personnel-related costs, outside consulting, lab costs and travel-related costs of our product development group. The following table summarizes the year-over-year comparison of our research and development expenses for the periods indicated ($ in thousands):

	Three Months		Three Months
	Ended		Ended		Decrease from			Percentage change
	March 31,		March 31,		same period			from the same period
	2010		2009		in the prior year			in the prior year
Research and development	$	319	$	652	$	(333	)		(51.1	)%

          The decrease in research and development expenses primarily resulted from declines of $113,000 in personnel-related expenses and $176,000 in consulting, prototype and product certification and testing expenses. As a percentage of revenue, research and development expenses decreased to 3.9% for the three months ended March 31, 2010 from 4.9% for the three months ended March 31, 2009.

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          General and administrative. General and administrative expenses consist primarily of salaries and other personnel-related expenses of our finance, human resources, information systems, corporate development and other administrative personnel, as well as facilities, legal and other professional fees, depreciation and amortization and related expenses. The following table summarizes the year-over-year comparison of our general and administrative expenses for the periods indicated ($ in thousands):

	Three Months		Three Months
	Ended		Ended		Decrease			Percentage change
	March 31,		March 31,		from same period			from the same period
	2010		2009		in the prior year			in the prior year
General and administrative	$	1,636	$	2,725	$	(1,089	)		(40.0	)%

          The decrease in general and administrative expenses primarily resulted from a declines of $649,000 in personnel-related expenses, $115,000 in external legal expenses due primarily to decreased patent enforcement litigation during the three months ended March 31, 2010 compared to the three months ended March 31, 2009, and $276,000 in expenses related to the Internal Revenue Service audit of employment taxes that was resolved in 2009. General and administrative expenses as a percentage of revenue decreased slightly to 20.0% for the three months ended March 31, 2010 from 20.3% for the three months ended March 31, 2009.

          Interest income, net. Interest income, net decreased by $36,000 to $56,000 for the three months ended March 31, 2010 compared to $92,000 for the three months ended March 31, 2009. The decrease was primarily due to declining interest rates during 2009 and into 2010. At March 31, 2010, the average yield on our cash and short-term investments was approximately 0.1%.

          Other income, net. Other income, net was $1.8 million for the three months ended March 31, 2010 compared to $210,000 for the three months ended March 31, 2009. The increase in other income was primarily due to the recognition of a deferred gain of $1.7 million in connection with the 2007 sale of the assets of the docking and expansion business to Mission.

          Income taxes. No provision for income taxes was required for the three months ended March 31, 2010 or 2009. Based on historical operating losses and projections for future taxable income, it is more likely than not that we will not fully realize the benefits of the net operating loss carryforwards. We have not, therefore, recorded a tax benefit from our net operating loss carryforwards for either of the three months ended March 31, 2010 or March 31, 2009, which at March 31, 2010 was $155 million.

Operating Outlook

          Due to increased competition, both from third parties and private-label brands offered by some of our retail customers, and the current global economic downturn, we have experienced a decline in demand for our products with our traditional customer base. It is difficult for us to predict the depth and length of this economic downturn and its impact on our business in the long-term. We expect 2010 revenue to continue to decrease from 2009 levels, primarily due to increased competition from private-label brands offered by some of our retail customers, including most notably RadioShack, a general reduction in consumer demand for mobile electronic accessories resulting from the ongoing worldwide recession and from the loss of the Targus account. This reduction in revenue may be partially offset by further gains in market penetration into new mobile wireless carriers, distributors and retailers largely through our sales efforts.

          We expect gross margin percentage in 2010 to be slightly higher than 2009 due to a shift in customer mix from private-label customers to direct sales to retailers. We expect operating expenses to decrease in 2010 compared to 2009, as we expect reduced general and administrative expenses, partially offset by increased spending in sales and marketing and research and development.

          As a result of our planned research and development efforts, we expect to further expand our intellectual property position by filing for additional patents. A portion of these costs are recorded as research and development expense as incurred, and a portion are capitalized and amortized as general and administrative expense. We may also incur additional legal and related expenses associated with the defense and enforcement of our intellectual property portfolio, which could increase our general and administrative expenses.

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Liquidity and Capital Resources

          Cash and Cash Flow. Our available cash and cash equivalents are held in bank deposits and money market funds in the United States and in the United Kingdom. Our intent is that the cash balances in the United Kingdom will remain there for future growth and investments, and we will meet any liquidity requirements in the United States through ongoing cash flows, external financing, or both. We actively monitor the third-party depository institutions that hold our cash and cash equivalents. Our emphasis is primarily on safety of principal while secondarily maximizing yield on those funds. We diversify our cash and cash equivalents among counterparties to minimize exposure to any one of these entities. To date, we have experienced no material loss or lack of access to our invested cash or cash equivalents; however, we can provide no assurances that access to our invested cash and cash equivalents will not be impacted by adverse conditions in the financial markets.

          At any point in time we have funds in our operating accounts and customer accounts that are with third-party financial institutions. These balances in the U.S. may exceed the Federal Deposit Insurance Corporation (“FDIC”) insurance limits. While we monitor the cash balances in our operating accounts and adjust the cash balances as appropriate, these cash balances could be impacted if the underlying financial institutions fail or could be subject to other adverse conditions in the financial markets.

          Our primary use of cash has been to fund purchases of short-term investments. The anticipated growth of our business will require investments in accounts receivable and inventories. In addition to our cash flow from operations, our primary sources of liquidity have been funds provided by issuances of equity securities and proceeds from the sale of intellectual property assets and other assets. We cannot assure you that these sources will be available to us in the future.

          Capital markets in the United States and throughout the world remain disrupted and under stress. This stress is compounded by the ongoing severe worldwide recession. The resulting lack of available credit, lack of confidence in the financial sector, increased volatility in the financial markets and reduced business activity could materially and adversely impact our ability to obtain additional or alternative financing.

          The following table sets forth for the period presented certain consolidated cash flow information ($ in thousands):

	Three Months Ended March 31,
	2010			2009
Net cash provided by (used in) operating activities	$	711		$	(1,158	)
Net cash (used in) provided by investing activities		(6,646	)		2,666
Net cash provided by financing activities		—			—
Foreign currency exchange impact on cash flow		(50	)		(10	)
(Decrease) increase in cash and cash equivalents	$	(5,985	)	$	1,498
Cash and cash equivalents at beginning of period	$	19,775		$	25,619
Cash and cash equivalents at end of period	$	13,790		$	27,117

• Net cash provided by (used in) operating activities. Cash was provided by operating activities for the three months ended March 31, 2010 primarily as a result of net income plus the combined effect of non-cash expenses and sales of inventory, partially offset by an increase in accounts receivable. For the current fiscal year, we expect to generate cash from operating activities.

Our consolidated cash flow operating metrics are as follows:

	Quarter Ended
	March 31,
	2010		2009
Days outstanding in ending accounts receivable (“DSOs”)		60		34
Inventory turns		5		10

The increase in DSOs at March 31, 2010 compared to March 31, 2009 was primarily due to increases in accounts receivable as a result of our transition to a customer base consisting largely of retail customers, who generally require longer payment terms, as well as a lower overall revenue base. We expect DSOs will decrease in 2010 as our revenue base increases. The decrease in inventory turns was primarily due to the decline in revenue from sales to RadioShack and Targus, for whom we hold no inventory. We expect to manage inventory growth during

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2010 and we expect inventory turns for the remainder of 2010 to remain consistent with the period ended March 31, 2010.

• Net cash (used in) provided by investing activities. For the three months ended March 31, 2010, net cash was used in investing activities for purchases of short-term investments. Our current investment strategy is to continue to invest excess cash in short-term investments.

• Net cash provided by financing activities. We had no cash flows from financing activities during the first quarter of 2010 or 2009.

          Investments. At March 31, 2010, our investments in marketable securities included seven corporate bonds, six United States government securities, six commercial paper instruments issued by various companies, and one municipal mutual fund with a total fair value of approximately $19.4 million. At December 31, 2009, 14 of these securities had an unrealized loss, representing less than 1% of the book value of all marketable securities in the portfolio.

          We believe we have the ability to hold all marketable securities to maturity. However, we may dispose of securities prior to their scheduled maturity due to changes in interest rates, prepayments, tax and credit considerations, liquidity or regulatory capital requirements, or other similar factors. As a result, we classify all marketable securities as available-for-sale. These securities are reported at fair value based on third-party broker statements, which represents level 2 in the fair value hierarchy, with unrealized gains and losses, reported in equity as a separate component of accumulated other comprehensive income (loss).

          Financing Facilities. In the future, debt financing may not be available to us in amounts or on terms that are acceptable to us.

          Contractual Obligations. In our day-to-day business activities, we incur certain commitments to make future payments under contracts such as operating leases and purchase orders. Maturities under these contracts are set forth in the following table as of March 31, 2010 (amounts in thousands):

	Payment due by period
	2010		2011		2012		2013		2014		More than 5 years
Operating lease obligations	$	327	$	440	$	444	$	455	$	76	$	—
Inventory Purchase obligations		18,506		—		—		—		—		—
Totals	$	18,833	$	440	$	444	$	455	$	76	$	—

          Off-Balance Sheet Arrangements. We have no off-balance sheet financing arrangements.

          Acquisitions and Dispositions. In the past we have made acquisitions of other companies to complement our product offerings and expand our revenue base.

          Our future strategy includes the possible acquisition of other businesses to continue to expand or complement our operations. The magnitude, timing and nature of any future acquisitions will depend on a number of factors, including the availability of suitable acquisition candidates, the negotiation of acceptable terms, our financial capabilities and general economic and business conditions. Financing of future acquisitions would result in the utilization of cash, incurrence of additional debt, issuance of additional equity securities or a combination of all of these. Our future strategy may also include the possible disposition of assets that are not considered integral to our business, which would likely result in the generation of cash.

          Net Operating Loss Carryforwards. As of March 31, 2010, we had approximately $155 million of federal, foreign and state net operating loss carryforwards which expire at various dates. We anticipate that the sale of common stock in our initial public offering and in subsequent private offerings, as well as the issuance of our common stock for acquisitions, coupled with prior sales of common stock will cause an annual limitation on the use of our net operating loss carryforwards pursuant to the change in ownership provisions of Section 382 of the Internal Revenue Code of 1986, as amended. This limitation is expected to have a material effect on the timing of our ability to use the net operating loss carryforwards in the future. Additionally, our ability to use the net operating loss carryforwards is dependent upon our future level of profitability, which cannot be determined.

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          Liquidity Outlook. Based on our projections, we believe that our existing cash, cash equivalents, short-term investments and our cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for at least the next 12 months. If we require additional capital resources to grow our business internally or to acquire complementary technologies and businesses at any time in the future, we may seek to obtain debt financing or sell additional equity securities. The sale of additional equity securities would result in more dilution to our stockholders. In addition, additional capital resources may not be available to us in amounts or on terms that are acceptable to us.

Recent Accounting Pronouncements

          See Note 1 to our condensed consolidated financial statements for a summary of recently issued accounting pronouncements.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

          We are exposed to certain market risks in the ordinary course of our business. These risks result primarily from changes in foreign currency exchange rates and interest rates. In addition, our international operations are subject to risks related to differing economic conditions, changes in political climate, differing tax structures and other regulations and restrictions.

          To date we have not utilized derivative financial instruments or derivative commodity instruments. We do not expect to employ these or other strategies to hedge market risk in the foreseeable future. We invest our cash in money market funds, which are subject to minimal credit and market risk. We believe that the market risks associated with these financial instruments are immaterial.

          See “Liquidity and Capital Resources” for further discussion of our capital structure. Market risk, calculated as the potential change in fair value of our cash and cash equivalents and resulting from a hypothetical 1.0% (100 basis point) change in interest rates, was not material at March 31, 2010.

ITEM 4. CONTROLS AND PROCEDURES

          Evaluation of Disclosure Controls and Procedures — We maintain disclosure controls and other procedures that are designed to ensure that information required to be disclosed in our filings with the SEC is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure based on the definition of “disclosure controls and procedures” in Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. With the participation of the principal executive officer and principal financial officer, management conducted an evaluation of the effectiveness of our disclosure controls and procedures as of March 31, 2010, and concluded that our disclosure controls and procedures were effective.

          Changes in Internal Control Over Financial Reporting — There was no change in our internal control over financial reporting during the quarter ended March 31, 2010, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

          We are, from time to time, party to certain legal proceedings that arise in the ordinary course and are incidental to our business. Although litigation is inherently uncertain, based on past experience and the information currently available, our management does not believe that any currently pending and threatened litigation or claims will have a material adverse effect on the Company’s consolidated financial position or results of operations. However, future events or circumstances, currently unknown to management will determine whether the resolution of pending or threatened litigation or claims will ultimately have a material effect on our consolidated financial position, liquidity or results of operations in any future reporting period.

ITEM 1A. RISK FACTORS

          In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I. “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2009, which could materially

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affect our business, financial condition or future results. There have been no material changes in our risk factors from the disclosure included in our Annual Report on Form 10-K. The risks described in our Annual Report on Form 10-K are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

ITEM 6. EXHIBITS

          The Exhibit Index and required Exhibits immediately following the Signatures to this Form 10-Q are filed as part of, or hereby incorporated by reference into, this Form 10-Q.

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IGO, INC. AND SUBSIDIARIES

SIGNATURES

          Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	IGO, INC.
Dated: May 6, 2010	By:	/s/ Michael D. Heil
		Michael D. Heil
		President and Chief Executive Officer (Principal Executive Officer)
	By:	/s/ Darryl S. Baker
		Darryl S. Baker
		Vice President and Chief Financial Officer and Authorized Officer of Registrant (Principal Financial Officer)

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EXHIBIT INDEX

Exhibit
Number	Description of Document
3.1	Certificate of Incorporation of the Company (1)
3.2	Articles of Amendment to the Certificate of Incorporation of the Company dated as of June 17, 1997 (2)
3.3	Articles of Amendment to the Certificate of Incorporation of the Company dated as of September 10, 1997 (1)
3.4	Articles of Amendment to the Certificate of Incorporation of the Company dated as of July 20, 1998 (1)
3.5	Articles of Amendment to the Certificate of Incorporation of the Company dated as of February 3, 2000 (1)
3.6	Articles of Amendment to the Certificate of Incorporation of the Company dated as of March 31, 2000 (2)
3.7	Certificate of Designations, Preferences, Rights and Limitations of Series G Junior Participating Preferred Stock of iGo, Inc. (3)
3.8	Certificate of Ownership and Merger Merging iGo Merger Sub Inc. with and into Mobility Electronics, Inc. (4)
3.9	Certificate of Elimination of Series C, Series D, Series E, and Series F Preferred Stock of Mobility Electronics, Inc. (4)
3.10	Fourth Amended and Restated Bylaws of the Company (5)
10.1	iGo, Inc. 2010 Executive Bonus Plan (6)
10.2	Note Repayment and Stock Repurchase Agreement dated April 19, 2010 (7)
31.1	Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2	Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1	Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

*	Filed/furnished herewith
(1)	Previously filed as an exhibit to Registration Statement No. 333-30264 dated February 11, 2000.
(2)	Previously filed as an exhibit to Amendment No. 2 to Registration Statement No. 333-30264 on Form S-1 dated May 4, 2000.
(3)	Previously filed as an exhibit to Current Report on Form 8-K filed June 19, 2003.
(4)	Previously filed as an exhibit to Current Report on Form 8-K dated May 21, 2008.
(5)	Previously filed as an exhibit to Form 10-K for the period ended December 31, 2008.
(6)	Previously filed as an exhibit to Current Report on Form 8-K filed April 6, 2010.
(7)	Previously filed as an exhibit to Current Report on Form 8-K filed April 21, 2010

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Michael D. Heil, certify that:

1. I have reviewed this quarterly report on Form 10-Q of iGo, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Michael D. Heil  

Michael D. Heil 

President and Chief Executive Officer
May 6, 2010

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Darryl S. Baker, certify that:

1. I have reviewed this quarterly report on Form 10-Q of iGo, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

     a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

     a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

     b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Darryl S. Baker  

Darryl S. Baker 

Vice President and Chief Financial Officer
May 6, 2010

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     The undersigned, the Chief Executive Officer and the Chief Financial Officer of iGo, Inc. (the “Company”), each certifies that, to his knowledge on the date of this certification:

     1. The quarterly report of the Company for the period ending March 31, 2010 as filed with the Securities and Exchange Commission on this date (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

May 6, 2010	/s/ Michael D. Heil
	Michael D. Heil
	President and Chief Executive Officer
	/s/ Darryl S. Baker
	Darryl S. Baker
	Vice President and Chief Financial Officer