Financial Analysis

3. BUSINESS COMBINAT ION On June 10, 2024 (Closing Date), the Transactions (defined below) were consummated pursuant to the terms of the Purchase Agreement among Barnes & Noble Education and the Purchasers (as defined in the Purchase Agreement), following Barnes & Noble Educations receipt of the requisite approval of its stockholders at a special meeting of its stockholders held on June 5, 2024. The following is presented on a post-reverse stock split basis, which is defined as a reverse stock split of Barnes & Noble Educations outstanding shares of common stock at a ratio of 1-for-100, effective at June 11, 2024. Pursuant to the terms of the Purchase Agreement, Barnes & Noble Education conducted a rights offering (the Rights Offering), whereby Barnes & Noble Education distributed at no charge to the holders of its common stock (BNED Common Stock) non-transferable subscription rights (Rights) to purchase up to an aggregate of 9,000,000 new shares of BNED Common Stock (the Offered Shares) at a subscription price of $ 5.00 per share (the Subscription Price). On the Closing Date, Barnes & Noble Education issued the Offered Shares, including approximately $ 10 million of Offered Shares purchased by Toro 18 Holdings LLC, a wholly-owned subsidiary of Immersion, (Investor) pursuant to the Backstop Commitment (as defined in the Purchase Agreement). Pursuant to the Backstop Commitment, Immersion through Investor, purchased 2,006,701 shares of BNED Common Stock. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

10. DEB T The following summarizes Barnes & Noble Educations outstanding borrowings for the following periods (in thousands): Maturity Date April 30, 2026 April 30, 2025 Restated ABL Facility June 9, 2028 $ 71,000 $ 103,098 Balance Sheet Classification: Short-term borrowings $ $ Long-term borrowings 71,000 103,098 Total Long-term borrowings $ 71,000 $ 103,098 Restated ABL Credit Facility On the Closing Date, Barnes & Noble Education amended and restated and extended the maturity of its existing asset-based credit facility with Bank of America, N.A., as administrative agent, collateral agent and swing line lender, and other lenders from time to time party thereto (such amended and restated credit facility, the Restated ABL Facility). Pursuant to the Restated ABL Facility, the lenders thereunder have committed to provide a four-year asset-backed revolving credit facility in an aggregate committed principal amount of up to $ 325 million. The Restated ABL Facility has a maturity date of June 9, 2028. Barnes & Noble Education has interest only obligations until June 9, 2028 , at which time the total principal is due and payable. Interest under the Restated ABL Facility accrues, at the election of Barnes & Noble Education, either (x) based on the Secured Overnight Financing Rate (SOFR) , which is subject to a floor of 2.5 % per annum, plus a spread of 3.5 % per annum or (y) at an alternate base rate , which is subject to a floor of 3.5 % per annum, plus a spread of …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

"12. STOCK -BASED COMPENSATION Immersion Stock Options and Awards Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock awards (RSAs), restricted stock units (RSUs), performance shares, market condition-based performance restricted stock units (PSUs), and other stock-based equity awards to employees, officers, directors, and consultants. On January 18, 2022, our stockholders approved the 2021 Equity Incentive Plan (as amended, the 2021 Plan), which provides for a total number of shares reserved and available for grant and issuance equal to 3,525,119 shares plus up to an additional 855,351 shares that are subject to stock options or other awards previously granted under the 2011 Equity Incentive Plan. On March 30, 2023, our stockholders approved an amendment to the 2021 Plan which increased the total number of shares reserved and available for grant and issuance equal to 8,146,607 shares plus up to an additional 855,351 shares that are subject to stock options or other awards previously granted under the 2011 Equity Incentive Plan. Under our equity incentive plans, stock options may be granted at prices not less than the fair market value on the date of the grant for stock options. Stock options generall …

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8. GOODWILL AND INTANGIBLE ASSETS Goodwill We recognized $ 69.2 million in goodwill as the result of the business combination with Barnes & Noble Education on June 10, 2024. As of April 30, 2026 and 2025 , the Company recorded goodwill of $ 69.2 million on our Consolidated Balance Sheets. Intangible Assets, net The following summarizes our intangible assets, excluding goodwill, recorded as intangible assets on our Consolidated Balance Sheets as of the periods presented below (in thousands): April 30, 2026 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-average remaining life (Years) Trade name $ 45,000 N/A $ 45,000 Indefinite Customer relationships 50,000 ( 7,267 ) 42,733 11.2 Total $ 95,000 $ ( 7,267 ) $ 87,733 April 30, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-average remaining life (Years) Trade name $ 45,000 N/A $ 45,000 Indefinite Customer relationships 50,000 ( 3,419 ) 46,581 12.2 Total $ 95,000 $ ( 3,419 ) $ 91,581 Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives. Trade name is determined to have an indefinite useful life and is not subject to amortization. Amortization expe nse was $ 3.8 million and $ 3.4 million for the fiscal years ended April 30, 2026 and 2025, respectively. Estimated amortization expense of the intangible assets to be recognized by the Company are (in thousands): Fiscal Year Ended April 30, 2027 $ 3,846 …

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17. INCO ME TAXES Income tax benefit (expense) for the following periods consisted of (in thousands): Fiscal Year Ended April 30, 2026 Fiscal Year Ended April 30, 2025 Income (loss) before income taxes $ 26,029 $ 119,292 Income tax benefit (expense) ( 16,816 ) ( 25,710 ) Effective tax rate ( 64.6 )% ( 21.6 )% Income tax expense for the fiscal years ended April 30, 2026 and 2025, resulted primarily from estimated domestic and foreign taxes included in the calculation of the effective tax rate. We provided no valuation allowance for federal assets and continue to maintain full valuation allowance for state and certain foreign deferred tax assets in the United States and Canada. The components of income (loss) before income taxes for the following periods consisted of (in thousands): Fiscal Year Ended April 30, 2026 Fiscal Year Ended April 30, 2025 Domestic $ 24,152 $ 102,041 Foreign 1,877 17,251 Total $ 26,029 $ 119,292 The income tax expense (benefit) for the following periods consisted of (in thousands): Fiscal Year Ended April 30, 2026 Fiscal Year Ended April 30, 2025 Current: U.S. federal $ ( 1,806 ) $ 16,750 State 1,576 3,364 Foreign 15,994 4,783 Total current 15,764 24,897 Deferred: U.S. federal 931 803 States and local 164 38 Foreign ( 43 ) ( 28 ) Total deferred 1,052 813 Total Income tax expense (benefit) $ 16,816 $ 25,710 Deferred tax assets and liabilities are recognized for the temporary differences between the carrying amounts of assets and liabilities for financial …

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7. LEASE S Immersion For the fiscal years ended April 30, 2026 and 2025, Immersions leases and related activity were not material. Barnes & Noble Education Barnes & Noble Education recognizes lease assets and lease liabilities on the Consolidated Balance Sheets for substantially all lease arrangements based on the present value of future lease payments as required by Leases . Barnes & Noble Educations portfolio of leases consists of operating leases comprised of operating agreements which grant Barnes & Noble Education the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. Barnes & Noble Education has one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less). Barnes & Noble Education recognizes an ROU asset and lease liability on the Consolidated Balance Sheets for leases with a term greater than twelve months . Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised . Barnes & Noble Education lease terms generally range from one year to fifteen years , and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year. Payment terms a …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (the ""FASB"") issued ASU No. 2025-07 (ASU 2025-07), Derivatives and Hedging (Topic 815) ( ""Topic 815"") and ""Revenue from Contracts with Customers (Topic 606)."" The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. This ASU also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim reporting periods, with early adoption permitted. The Company adopted ASU No. 2025-07 during the fiscal quarter ending October 31, 2025. See Note 15. Participation Interest Purchase Agreement for additional information. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures , which enhances annual income tax disclosure requirements, including additional information related to the effective tax rate reconciliation and income taxes paid. The Company adopted this guidance on a prospective basis during the fourth quarter of fiscal 2026. Adoption of the ASU did not impact the Company's consolidated financial position, results of operations, cash flows, or earnings per share, but resulted in enhanced income tax disclosures. See Note 17. Income Taxes for additional information. Recent Accounting Pronouncements Not Yet Adopted In Se …

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11. RELATED-PARTY TRANSACTIONS TopLids LendCo, LLC In December 2020, Barnes & Noble Education entered into the F/L Relationship to execute a merchandising agreement with Fanatics and Lids which included a strategic equity investment in Barnes & Noble Education by Fanatics, Inc. and Lids Holdings, Inc., jointly as TopLids LendCo, LLC (TopLids). On June 7, 2022, Barnes & Noble Education entered into a Term Loan Credit Agreement with TopLids LendCo, LLC and Vital Fundco, LLC (see discussion below). On June 10, 2024, Barnes & Noble Education completed the Transactions, including the Rights Offering, the Private Investment, the Term Loan Debt Conversion, and the Credit Facility Refinancing, to substantially deleverage Barnes & Noble Educations Consolidated Balance Sheet. TopLids ceased to be a related party during the fourth quarter of fiscal 2025. Total commission revenue from the F/L Relationship was $ 104.0 million for the period from June 10, 2024 to April 30, 2025. Total receivables from Fanatics was $ 1.2 million as of April 30, 2025. VitalSource Technologies, Inc. On June 7, 2022, Barnes & Noble Education entered into a Term Loan Credit Agreement with TopLids LendCo, LLC (see discussion above) and Vital Fundco, LLC (a subsidiary of Vital Technologies, Inc. (VitalSource)). Barnes & Noble Education has contracted with VitalSource to provide digitally formatted courseware, from all major publishers. On June 10, 2024, Barnes & Noble Education com …

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5. REV ENUE Immersion Disaggregated Revenue The following presents the disaggregation of Immersions revenue for these periods (in thousands): Fiscal Years Ended April 30, 2026 2025 Fixed fee license revenue $ 2,963 $ 62,519 Per-unit royalty revenue 12,961 11,554 Total royalty and license revenue $ 15,924 $ 74,073 Contract Assets At April 30, 2026 , we had contract assets of $ 8.2 million included within Prepaid expenses and other current assets and $ 19.8 million within Other assets - noncurrent on the Consolidated Balance Sheets. As of April 30, 2025 , we had contract assets of $ 7.8 million included within Prepaid expenses and other current assets and $ 27.4 million included within Other assets - noncurrent on the Consolidated Balance Sheets . Contract assets decreased by approximately $( 7.2 ) million for the fiscal year ended April 30, 2026, primarily due to the actual billing of unbilled amounts during the fiscal year ended April 30, 2026 . Contract assets increased by $ 28.5 million for the fiscal year ended April 30, 2025, primarily due to an increase in unbilled revenue related to the new contracts we entered into during the fiscal year ended April 30, 2025. Deferred Revenue The following table presents changes in deferred revenue associated with Immersions contract liabilities (in thousands): Fiscal Years Ended April 30, 2026 2025 Deferred revenue beginning of the period $ 8,728 $ 20,472 Additions to deferred revenue during the period - 882 Reductions to deferred rev …

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4. SEGMENT I NFORMATION Following the closing of the Transactions with Barnes & Noble Education, the Company operates as two operating and reporting segments, Immersion and Barnes & Noble Education. We identify these segments based on the distinct business activities of each company as they are managed separately. Our Chief Executive Officer, as the Companys Chief Operating Decision Maker, uses Operating income (loss ) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment. Due to the nonhomogeneous operations of Immersion and Barnes & Noble Education, the Companys Consolidated Balance Sheets and Consolidated Statement of Operations for the fiscal year ended April 30, 2026 and 2025, separately present the operating assets, liabilities, and operations of Immersions business from the operating assets, liabilities, and operations of Barnes & Noble Educations business. Our Consolidated Statements of Operations includes each segments significant segment expenses. Summarized financial information for our reportable segments is reported below (in thousands): Fiscal Years Ended April 30, 2026 2025 REVENUES Immersion $ 15,924 $ 74,073 Barnes & Noble Education 1,714,770 1,481,803 Total revenues 1,730,694 1,555,876 COST OF SALES (excludes depreciation and amortization expense) Barnes & Noble Education 1,359,411 1,124,175 OPERATING EXPENSES Immersion Selling …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

14. STOCK HOLDERS EQUITY Immersion Stock Repurchase Program On December 29, 2022, the Board approved a stock repurchase program of up to $ 50.0 million of our common stock for a period of up to twelve months (the December 2022 Stock Repurchase Program), which terminated and superseded the stock repurchase program that had been approved by the Board on February 23, 2022. Any stock repurchases may be made through open market and privately negotiated transactions, at such times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Additionally, the Board authorized the use of any derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions, or other similar transactions or any combination of the foregoing transactions. The December 2022 Stock Repurchase Program was implemented as a method to return value to our stockholders. The timing, pricing and sizes of any repurchases will depend on a number of factors, including the market price of our common stock and general market and economic conditions. The December 2022 Stock Repurchase Program does not obligate us to repurchase any dollar amount o …

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. SUBSEQUE NT EVENTS Immersion Dividends Declared On July 2, 2026 , our Board declared a quarterly dividend in the amount of $ 0.075 per share and will be payable, subject to any prior revocation, on July 31, 2026 , to stockholders of record on July 20, 2026 .

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NOTE 4. BUSINESS COMBINATION On June 10, 2024 (Closing Date), we acquired 42 % of all outstanding common shares of Barnes & Noble Education, as well as control over Barnes & Noble Education through five Immersion-appointed board seats. The total cash consideration transferred was approximately $ 50.1 million after the $ 2.5 million Backstop Commitment (as defined in the purchase agreement between Barnes & Noble Education and the Company) and $ 2.5 million in transaction costs , incurred by Immersion but reimbursed by Barnes & Noble Education. For the fiscal year ended April 30, 2025, Immersion incurred costs related to this acquisit ion of $ 1.2 million, i nclusive of the expenses reimbursed by Barnes & Noble Education, that were expensed as incurred and recorded in Selling and administrative expenses in the accompanying Condensed C onsolidated Statement of Operations . The acquisition aims to expand Immersion's offerings, increase its customer reach, and diversify into the education sector. The acquisition was accounted for as a business combination and the total purchase price was allocated to the net tangible and intangible assets and liabilities based on their fair values on the acquisition date with the excess recorded as goodwill. The purchase price allocation was finalized during the measurement period and the amounts presented below reflect final measurement period adjustments recorded during the fiscal year ended April 30, 2025. See Note 9. Goodwi …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10. DEBT The following is a summary of Barnes & Noble Educations outstanding borrowing as of October 31, 2025 and April 30, 2025 (in thousands): As of Maturity Date October 31, 2025 April 30, 2025 Total debt - Barnes & Noble Education credit facility June 9, 2028 $ 122,500 $ 103,098 Balance sheet classification: Long-term borrowings $ 122,500 $ 103,098 On the Closing Date, Barnes & Noble Education amended and restated and extended the maturity of its existing asset-based credit facility with Bank of America, N.A., as administrative agent, collateral agent and swing line lender, and other lenders from time to time party thereto (such amended and restated credit facility, the Restated ABL Facility). Pursuant to the Restated ABL Facility, the lenders thereunder have committed to provide a four-year asset-backed revolving credit facility in an aggregate committed principal amount of up to $ 325 million. The Restated ABL Facility has a maturity date of June 9, 2028. Barnes & Noble Education has interest only obligations until June 9, 2028 , at which time the total principal is due and payable. Interest under the Restated ABL Facility accrues, at the election of Barnes & Noble Education, either (x) based on the Secured Overnight Financing Rate (SOFR) , which is subject to a floor of 2.5 % per annum, plus a spread of 3.5 % per annum or (y) at an alternate base rate , which is subject to a floor of 3.5 % per annum, plus a spread of 2.5 % per annum, provided t …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 12. STOCK-BASED COMPENSATION Immersion Our equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for employees, consultants, officers, and directors and to align stockholder and employee interests. We may grant time-based options, market condition-based options, stock appreciation rights, restricted stock awards (RSAs), restricted stock units (RSUs), performance shares, market condition-based performance restricted stock units (PSUs), and other stock-based equity awards to employees, officers, directors, and consultants. On January 18, 2022, our stockholders approved the 2021 Equity Incentive Plan (as amended, the 2021 Plan), which provides for a total number of shares reserved and available for grant and issuance equal to 3,525,119 shares plus up to an additional 855,351 shares that are subject to stock options or other awards previously granted under the 2011 Equity Incentive Plan. On March 30, 2023, our stockholders approved an amendment to the 2021 Plan which increased the total number of shares reserved and available for grant and issuance equal to 8,146,607 shares plus up to an additional 855,351 shares that are subject to stock options or other awards previously granted under the 2011 Equity Incentive Plan. Under our equity incentive plans, stock options may be granted at prices not less than the fair market value on the date of grant for such stock options. Stock options generally vest over four year …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

NOTE 9. GOODWILL AND INTANGIBLE ASSETS Goodwill The Company recognized $ 69.2 million in goodwill as the result of the business combination with Barnes & Noble Education on June 10, 2024. See Note 4. Business Combination for additional information. The carrying value of goodwill was $ 69.2 million as of October 31, 2025 and April 30, 2025. In accordance with ASC Topic 350 - Intangibles - Goodwill and Other , the Company did not record any goodwill impairment losses during the three and six months ended October 31, 2025, the three months ended October 31, 2024, and the period from June 10, 2024 to October 31, 2024. Goodwill represents the future economic benefit attributable to Barnes & Noble Educations assembled workforce, which is not individually and separately recognized as an intangible asset. As such, the carrying value of goodwill has been allocated to Barnes & Noble Education Segment and none of the goodwill has been allocated to the Immersion Segment. Intangible Assets, net The following is a summary of intangible assets, excluding goodwill, recorded as Intangible assets, net on the Companys Condensed Consolidated Balance Sheet s as of October 31, 2025 and April 30, 2025 (in thousands): October 31, 2025 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Remaining Life (years) Trade name $ 45,000 N/A $ 45,000 Indefinite Customer relationships 50,000 ( 5,343 ) 44,657 11.7 Total $ 95,000 $ ( 5,343 ) $ 89,657 April 30, 2025 Gro …

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NOTE 16. INCOME TAXES Income tax benefit (expense) for the three and six months ended October 31, 2025 and 2024, consisted of the following (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 As Restated As Restated Income (Loss) Before Income Taxes $ 41,632 $ 69,423 $ 20,189 $ 91,310 Income tax benefit (expense) ( 14,750 ) ( 5,036 ) ( 7,023 ) ( 14,723 ) Effective tax rate 35.4 % 7.3 % 34.8 % 16.1 % Income tax benefit (expense) for the three and six months ended October 31, 2025, resulted primarily from estimated domestic and foreign taxes included in the calculation of the effective tax rate. We maintain a valuation allowance for certain deferred tax assets in the United States and Canada, which management believes are not more likely than not to be realizable in the future. Changes in provision for income taxes resulted primarily from the change in income from continuing operations across various tax jurisdictions. In the event that we determine the deferred tax assets are realizable based on an assessment of relevant factors, an adjustment to the valuation allowance may increase income in the period such determination is made. The valuation allowance does not impact our ability to utilize the underlying net operating loss carryforwards. We also maintain liabilities for uncertain tax positions. As of October 31, 2025 , we had unrecognized tax benefits under ASC 740 Income Taxes of approximately $ 13.3 million, of which $ 11.7 mill …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8. LEASES Immersion For the three and six months ended October 31, 2025 and 2024, Immersions leases and related activity were not material. Barnes & Noble Education Barnes & Noble Education recognizes lease assets and lease liabilities on the Condensed Consolidated Balance Sheets for substantially all lease arrangements based on the present value of future lease payments as required by ASC Topic 842, Leases . Barnes & Noble Educations portfolio of leases consists of operating leases comprised of operating agreements, which grant us the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. Barnes & Noble Education has one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less). Barnes & Noble Education recognizes a right of use (ROU) asset and lease liability in the Condensed Consolidated Balance Sheets for leases with a term greater than twelve months . Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised. Barnes & Noble Educations lease terms generally range from one year to fifteen years , and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently co …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Pronouncements Recently Issued Accounting Pronouncements Adopted In September 2025, Financial Accounting Standards Board (the ""FASB"") issued ASU No. 2025-07 (ASU 2025-07), Derivatives and Hedging (Topic 815): Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract . The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 related to share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for fiscal years beginning after December 15, 2026, and interim periods within those fiscal years, with early adoption permitted. The Company elected to early adopt ASU 2025-07 effective May 1, 2025, the first day of fiscal year 2026. The adoption did not have a material impact on the Companys C ondensed Consolidated Financial Statements . See Note 11. Participation Interest Purchase Agreement for additional information. Recently Issued Accounting Pronouncements Except for ASU 2025-07, there were no new accounting pronouncements, issued during the three months ended October 31, 2025 that are expected to have a material impact on the Companys Condensed Consolidated Financial Statements ."

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NOTE 6. REVENUE RECOGNITION Immersion Disaggregated Revenue The following table presents the disaggregation of Immersions revenue for the three and six months ended October 31, 2025 and 2024 (in thousands): Three Months Ended October 31, Six Months Ended October 31, 2025 2024 2025 2024 As Restated As Restated Fixed fee license revenue $ 736 $ 10,676 $ 1,472 $ 56,003 Per-unit royalty revenue 5,024 3,451 8,160 6,549 Total royalty and license revenue $ 5,760 $ 14,127 $ 9,632 $ 62,552 Contract Assets As of October 31, 2025, we had contract assets of $ 8.0 million included within Prepaid expenses and other current assets and $ 20.7 million within Other assets noncurrent on the Condensed Consolidated Balance Sheet. As of April 30, 2025 , we had contract assets of $ 7.8 million included within Prepaid expenses and other current assets and $ 27.4 million within Other assets - noncurrent on the Condensed Consolidated Balance Sheet. Deferred Revenue The following table presents changes in deferred revenue associated with our contract liabilities (in thousands): October 31, 2025 April 30, 2025 Deferred revenue beginning of the period $ 8,728 $ 20,472 Additions to deferred revenue during the period 882 Reductions to deferred revenue for revenue recognized during the period ( 1,473 ) ( 12,626 ) Deferred revenue balance end of the period $ 7,255 $ 8,728 Based on contracts signed and payments received as of October 31, 2025 , we expect to recognize $ 7.3 million in revenue under our fixed f …

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NOTE 5. SEGMENT REPORTING The Company operates as two operating and reportable segments, Immersion and Barnes & Noble Education. Our Chief Executive Officer , as the Companys Chief Operating Decision Maker, uses Operating Income (Loss ) as the profitability metric for the purposes of making decisions related to the allocation of resources to each segment and assessing performance of each segment . Summarized financial information for our reportable segments is reported below (in thousands): Three Months Ended October 31, Six Months Ended October 31, (in thousands) 2025 2024 2025 2024 As Restated As Restated Revenues: Immersion $ 5,760 $ 14,127 $ 9,632 $ 62,552 Barnes & Noble Education 644,414 602,122 932,574 737,186 Total revenues 650,174 616,249 942,206 799,738 Cost of sales (excludes depreciation and amortization expense): Barnes & Noble Education 515,102 459,478 748,696 569,388 Operating expenses: Immersion Selling and administrative expenses 2,949 4,165 6,644 17,576 Barnes & Noble Education Selling and administrative expenses 77,282 72,717 145,087 109,046 Depreciation and amortization expense 10,487 9,400 20,884 14,676 Restructuring and professional fees 4,296 59 7,192 5,064 92,065 82,176 173,163 128,786 Total operating expenses 95,014 86,341 179,807 146,362 Operating Income (Loss): Immersion 2,811 9,962 2,988 44,976 Barnes & Noble Education 37,247 60,468 10,715 39,012 Operating Income (Loss) $ 40,058 $ 70,430 $ 13,703 $ 83,988 The reconciliation betwe …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14. STOCKHOLDERS EQUITY Immersion Stock Repurchase Program On December 29, 2022, the Board approved a stock repurchase program of up to $ 50.0 million of our common stock for a period of up to twelve months (the December 2022 Stock Repurchase Program), which terminated and superseded the stock repurchase program that had been approved by the Board on February 23, 2022. Any stock repurchases may be made through open market and privately negotiated transactions, at such times and in such amounts as management deems appropriate, including pursuant to one or more Rule 10b5-1 trading plans adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Additionally, the Board authorized the use of any derivative or similar instrument to effect stock repurchase transactions, including without limitation, accelerated share repurchase contracts, equity forward transactions, equity option transactions, equity swap transactions, cap transactions, collar transactions, naked put options, floor transactions or other similar transactions or any combination of the foregoing transactions. The December 2022 Stock Repurchase Program was implemented as a method to return value to our stockholders. The timing, pricing and sizes of any repurchases will depend on a number of factors, including the market price of our common stock and general market and economic conditions. The December 2022 Stock Repurchase Program does not obligate us to repurchase any dollar amoun …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 20. SUBSEQUENT EVENTS Dividends Declared and Paid On December 8, 2025 , our Board a nnounced that it had approved an increase in the quarterly dividend from $ 0.045 per share to $ 0.075 per share. The quarterly cash dividend of $ 0.075 per share, was paid on January 30, 2026 , to stockholders of record on January 19, 2026 . The total cash paid for this dividend was approximately $ 2.5 million. On March 27, 2026 , our Board declared a quarterly dividend in the amount of $ 0.075 per share, payable on May 1, 2026 , to stockholders of record on April 30, 2026 . The total cash paid for these dividends is approximately $ 2.5 million. See Note 14. Stockholders' Equity for additional information. Korean Withholding Tax Assessment Samsung License Immersion licenses certain of its patented technologies to Samsung Electronics Co., Ltd. (Samsung) and its affiliates under a license agreement that provides Samsung with the right to manufacture and sell Samsung products worldwide. Under the terms of this agreement, Immersion is obligated to indemnify Samsung for any Korean withholding taxes that may be imposed on royalty payments made by Samsung to Immersion. In prior years, the Korean tax authorities, through the Suwon Regional Tax Office (SRTO), issued assessments to Samsung asserting that royalties paid to Immersion constituted Korean-source royalty income subject to Korean withholding tax. Samsung contested these assessments, and the most recent matters were the subject of an admin …

SubsequentEventsTextBlock · excerpt; the full note is in the filing