Mad Catz Interactive (MCZAF) 10-Q 2 Feb 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Dec. 31, 2016	Jan. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	MCZ
Entity Registrant Name	MAD CATZ INTERACTIVE INC
Entity Central Index Key	1,088,162
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		73,469,571

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Current assets:
Cash	$ 1,603	$ 2,436
Restricted cash	1,583	680
Accounts receivable, net	8,277	9,585
Other receivables	1,054	998
Inventories	15,370	23,005
Income taxes receivable	302	159
Prepaid expenses and other current assets	1,710	2,969
Total current assets	29,899	39,832
Deferred tax assets	8,177	9,449
Other assets	323	531
Property and equipment, net	1,799	2,921
Intangible assets, net	1,590	2,270
Total assets	41,788	55,003
Current liabilities:
Bank loans	12,210	16,076
Accounts payable	19,141	25,354
Accrued liabilities	6,652	8,153
Notes and restructured payables	2,872	73
Income taxes payable		173
Total current liabilities	40,875	49,829
Notes and restructured payables, less current portion	2,925	145
Warrant liabilities	127	300
Deferred tax liabilities	9	10
Other long-term liabilities	526	699
Total liabilities	44,462	50,983
Shareholders’ (deficit) equity:
Common stock, no par value, unlimited shares authorized; 73,469,571 and 73,469,571 shares issued and outstanding at December 31, 2016 and March 31, 2016, respectively	63,694	63,552
Accumulated other comprehensive loss	(8,357)	(5,695)
Accumulated deficit	(58,011)	(53,837)
Total shareholders’ (deficit) equity	(2,674)	4,020
Total liabilities and shareholders’ (deficit) equity	$ 41,788	$ 55,003

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value
Common stock, shares authorized	Unlimited	Unlimited
Common stock, shares issued	73,469,571	73,469,571
Common stock, shares outstanding	73,469,571	73,469,571

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net sales	$ 19,061	$ 65,038	$ 44,716	$ 116,930
Cost of sales	17,766	53,633	42,997	93,641
Gross profit	1,295	11,405	1,719	23,289
Operating expenses:
Sales and marketing	1,733	4,865	4,581	12,038
General and administrative	1,911	2,600	6,458	8,132
Research and development	436	1,007	1,653	2,869
Restructuring and severance costs	154		151
Amortization of intangible assets	92	112	314	332
Net loss (gain) on sale of Saitek assets	7		(8,170)
Net operating expenses	4,333	8,584	4,987	23,371
Operating (loss) income	(3,038)	2,821	(3,268)	(82)
Other income (expense):
Interest expense, net	(290)	(657)	(900)	(1,278)
Foreign exchange gain (loss), net	450	(657)	1,270	(750)
Change in fair value of warrant liabilities	170	1,200	173	283
Other income	26	18	49	40
Total other income (expense)	356	(96)	592	(1,705)
(Loss) income before income taxes	(2,682)	2,725	(2,676)	(1,787)
Income tax expense	(779)	(1,506)	(1,498)	(2,570)
Net (loss) income	$ (3,461)	$ 1,219	$ (4,174)	$ (4,357)
Net (loss) income per share:
Basic	$ (0.05)	$ 0.02	$ (0.06)	$ (0.06)
Diluted	$ (0.05)	$ 0.02	$ (0.06)	$ (0.06)
Shares used in per share computations:
Basic	73,469,571	73,469,571	73,469,571	73,469,571
Diluted	73,469,571	73,902,905	73,469,571	73,469,571

Consolidated Statements of Comp

Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (3,461)	$ 1,219	$ (4,174)	$ (4,357)
Foreign currency translation adjustments	(1,173)	(295)	(2,662)	(89)
Comprehensive (loss) income	$ (4,634)	$ 924	$ (6,836)	$ (4,446)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (4,174)	$ (4,357)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,660	1,711
Amortization of deferred financing fees	179	262
(Gain) loss on disposal of assets	(23)	4
Net gain on sale of Saitek assets	(8,170)
Stock-based compensation	142	357
Change in fair value of warrant liabilities	(173)	(283)
Provision for deferred income taxes	1,271	2,096
Changes in operating assets and liabilities:
Accounts receivable	1,014	(19,150)
Other receivables	(69)	(825)
Inventories	4,685	(12,277)
Prepaid expenses and other current assets	909	(1,168)
Other assets	16	114
Accounts payable	302	12,031
Accrued liabilities	(2,079)	8,698
Deferred rent	(212)	(71)
Income taxes receivable/payable	(387)	1,019
Net cash used in operating activities	(5,109)	(11,839)
Cash flows from investing activities:
Purchases of intangible assets		(125)
Purchases of property and equipment	(700)	(1,600)
Net proceeds from sale of Saitek assets	10,654
Net cash provided by (used in) investing activities	9,954	(1,725)
Cash flows from financing activities:
Borrowings on bank loans	35,226	103,629
Repayments on bank loans	(39,099)	(84,047)
Payment of financing fees		(818)
Changes in restricted cash	(903)	(5,780)
Borrowings on notes payable		95
Repayments on notes and restructured payables	(775)	(501)
Payment of expenses related to issuance of common stock		(164)
Net cash (used in) provided by financing activities	(5,551)	12,414
Effects of foreign currency exchange rate changes on cash	(127)	(6)
Net decrease in cash	(833)	(1,156)
Cash, beginning of period	2,436	5,142
Cash, end of period	1,603	3,986
Supplemental cash flow information:
Income taxes paid	627	314
Interest paid	909	$ 1,190
Supplemental disclosures of noncash operating and financing activities:
Restructuring of accounts payable	$ 6,345

Basis of Presentation

Basis of Presentation	9 Months Ended
	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Basis of Presentation	(1) Basis of Presentation Nature of Operations Mad Catz Interactive, Inc. (“Mad Catz”) designs, manufactures (primarily through third parties in Asia), markets and distributes innovative interactive entertainment products marketed under its Mad Catz ® ® Basis of Accounting The accompanying unaudited consolidated financial information has been prepared by management, without audit, in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The consolidated balance sheet at March 31, 2016 was derived from the audited consolidated financial statements at that date; however, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). The Company has incurred recurring losses from operations in each of the years in the three-year period ended March 31, 2016 and generated negative cash flows from operations in the year ended March 31, 2016. The Company has also generated a loss from operations in the nine months ended December 31, 2016 and has negative working capital and shareholders’ equity as of December 31, 2016. The Company believes it is unlikely that its available cash balances, anticipated cash flows from operations and available credit facilities will be sufficient to satisfy our operating needs for at least the next twelve months. To meet its capital needs, the Company is considering multiple alternatives, including, but not limited to, equity sales under its “at-the-market” (“ATM”) equity offering program, additional equity financings, debt financings and other funding transactions. There can be no assurance that the Company will be able to complete financing transactions on acceptable terms or otherwise. If the Company is unable to become cash-flow positive or to raise additional capital as and when needed, or upon acceptable terms, such failure would have a significant negative impact on its financial condition. The Company is also exploring other strategic alternatives including, but not limited to, the sale of the Company. The Company has not made a decision at this time to pursue any specific strategic transaction or other strategic alternatives and has not set a specific timetable for the process. As such, there can be no assurance that the exploration of strategic alternatives will result in the sale of the Company or any other transaction. Our primary operating subsidiary, Mad Catz, Inc. (“MCI”), maintains a Loan and Security Agreement (the “Loan Agreement”) with Sterling National Bank (“SNB”) to provide for a $20.0 million revolving line of credit subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Loan Agreement expires on June 30, 2018. The Company is required to meet a monthly financial covenant based on a trailing twelve months’ adjusted earnings before income taxes, depreciation and amortization (“EBITDA”), as defined. Our trailing twelve months’ Adjusted EBITDA as of November 30 and December 31, 2016 were lower than the required threshold and, accordingly, we were not in compliance with this covenant as of December 31, 2016. On January 31, 2017, we received confirmation from SNB that a forbearance will be issued for this non-compliance through April 28, 2017. Once finalized, if applicable, the material terms of the forbearance will be set forth and filed as a current report on SEC Form 8-K. There can be no assurance that we will be able to meet the covenants subsequent to December 31, 2016 or that we would be able to obtain a waiver or forbearance from SNB to the extent we are not in compliance with the covenants. Additionally, Mad Catz Europe Ltd. (“MCE”), a wholly-owned subsidiary of the Company, maintains a Master Facilities Agreement (the “Facilities Agreement”) with Faunus Group International, Inc. (“FGI”) to provide for a $10.0 million secured demand credit facility subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Facilities Agreement has a three-year term, although FGI may terminate the facility at any time upon at least three months’ notice. Our borrowing availability fluctuates daily, as it is subject to eligible accounts receivable and inventory amounts and we typically borrow all amounts available to us, less approximately $0.5 million. The Company depends upon the availability of capital under the Loan Agreement and Facilities Agreement to finance operations. The Company operates in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future sales and expenses. If the Company is unable to comply with the Adjusted EBITDA covenants contained in the Loan Agreement, as amended from time to time, SNB could declare the outstanding borrowings under the facility immediately due and payable. If the Company needs to obtain additional funds as a result of the termination of the Loan Agreement or Facilities Agreement or the acceleration of amounts due thereunder, there can be no assurance that alternative financing can be obtained on substantially similar or acceptable terms, or at all. The Company’s failure to promptly obtain alternate financing could limit our ability to implement our business plan and have an immediate, severe and adverse impact on our business, results of operations, financial condition and liquidity. In the event that no alternative financing is available, the Company would be forced to drastically curtail operations, or dispose of assets, or cease operations altogether. In the opinion of management, the unaudited consolidated financial statements for the interim period presented reflect all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of and for such periods indicated. These unaudited consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016. These consolidated financial statements refer to the Company’s fiscal years ending March 31 as its “fiscal” years. The Company generates a substantial percentage of net sales in the last three months of every calendar year, its fiscal third quarter. Results for the interim periods presented herein are not necessarily indicative of results that may be reported for any other interim period or for the fiscal year ending March 31, 2017. All currency amounts are presented in U.S. dollars. Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Mad Catz and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. References to the “Company,” “we,” “us,” “our” and other similar words refer to Mad Catz Interactive, Inc. and its consolidated subsidiaries, unless the context suggests otherwise. Use of Estimates The unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP. Applying these principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of sales and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, reserves for accounts receivable and inventories, contingencies and litigation, valuation and recognition of share-based payments, warrant liabilities and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates. Sale of Saitek Assets On September 15, 2016, the Company completed the sale of certain assets associated with the Company’s flight, space, and farm simulation product line (the “Saitek assets”) to certain subsidiaries of Logitech International S.A. (collectively, “Logitech”) (see Note 7). The Company followed the guidance in ASC 205-20, “Presentation of Financial Statements-Discontinued Operations,” as updated by Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” in recording the transaction and related gain on the accompanying consolidated statement of operations. The Saitek assets do not represent a component of an entity, and therefore, the sale of the Saitek assets has not been presented as discontinued operations. Recently Issued Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which amends guidance on the classification of restricted cash in the statement of cash flows. This ASU requires that a statement of cash flows explain the change during the period of the total cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this guidance will change the presentation of restricted cash presented on our statement of cash flows; however, it will have no impact on our results of operations, financial condition or liquidity. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, which addresses specific cash flow items with the objective of reducing existing diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation, which amends several aspects of share-based payment accounting. This guidance requires all excess tax benefits and tax deficiencies to be recorded in the consolidated statement of operations when the awards vest or are settled, with prospective application required. The guidance also changes the classification of such tax benefits or tax deficiencies on the statement of cash flows from a financing activity to an operating activity, with retrospective or prospective application allowed. Additionally, the guidance requires the classification of employee taxes paid when an employer withholds shares for tax-withholding purposes as a financing activity on the statement of cash flows, with retrospective application required. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles (“GAAP”), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which and entity must measure inventory at the lower of cost or market. The ASU does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. For public business entities, the ASU is effective prospectively for annual periods beginning after December 15, 2016, and interim periods therein. The Company has elected to early adopt, prospectively, this guidance effective April 1, 2016. The adoption of this guidance did not have a material impact on the Company’s consolidated financial condition or results of operations. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debit Issuance Costs Associated with Line-of-Credit Arrangements. This ASU clarified the guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods. The Company adopted these standards on a retrospective basis as of April 1, 2016. The Company will continue to defer and present the debt issuance costs related to its Loan Agreement and Facilities Agreement in Other assets and amortize them ratably over the term of the agreement. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a one-year period subsequent to the date of the financial statements. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for all entities for the first annual period ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. As the requirements of this literature are disclosure only, adoption of this guidance is not expected to impact the Company’s financial condition or results of operations, but will change the Company’s disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On July 9, 2015, the FASB agreed to defer by one year the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, with early adoption as of the original effective date permitted. The Company does not intend to adopt this guidance early and it will become effective for the Company on April 1, 2018. The Company has not yet decided which implementation method it will adopt. Although management has completed its initial evaluation of this guidance as it pertains to the Company, management is still evaluating the impacts that this updated guidance may have on the Company’s consolidated financial statements, including the potential impacts of timing of revenue recognition and additional information that may be necessary for expanded disclosures regarding revenue.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	(2) Fair Value Measurements The carrying values of the Company’s financial instruments, including cash, restricted cash, accounts receivable, other receivables, accounts payable, accrued liabilities and income taxes receivable/payable approximate their fair values due to the short maturity of these instruments. The carrying value of the bank loans and notes payable approximates their fair value as the interest rate and other terms are that which is currently available to the Company. The carrying value of the restructured payables are not measured at fair value (see Note 8). For a description of the fair value hierarchy, see Note 2 to the Company’s 2016 consolidated financial statements contained in the Company’s Annual Report on Form 10-K for its fiscal year ended March 31, 2016. The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis (in thousands): Basis of Fair Value Measurements Balance as of December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (127 ) $ — $ — $ (127 ) Basis of Fair Value Measurements Balance as of March 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (300 ) $ — $ — $ (300 ) The following table provides a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2016, which consist of the Company’s warrant liabilities (in thousands): Warrant liabilities: Balance at March 31, 2016 $ (300 ) Change in fair value of warrant liabilities 173 Balance at December 31, 2016 $ (127 )

Inventories

Inventories	9 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	(3) Inventories Inventories consist of the following (in thousands): December 31, 2016 March 31, 2016 Raw materials $ 739 $ 1,119 Finished goods 12,099 21,886 Inventory sold under extended payment terms 2,532 — $ 15,370 $ 23,005 Although the Company has sold all of the remaining inventory of products designed for the Rock Band 4 video game, a portion of the inventory was sold to a customer under extended payment terms that did not meet the criteria to be recognized as revenue in the current period under GAAP revenue recognition guidance. Therefore, $2.5 million of products designed for the Rock Band 4 video game is included in inventory as of December 31, 2016.

Restricted Cash

Restricted Cash	9 Months Ended
	Dec. 31, 2016
Receivables [Abstract]
Restricted Cash	( 4) Restricted Cash Cash accounts that are restricted as to withdrawal or usage are presented as restricted cash. As of December 31, 2016, the Company had $1.6 million of restricted cash held by a bank in deposit accounts. This amount represents payments from customers into restricted bank accounts as of December 31, 2016 that were subsequently automatically swept to repay borrowings under our bank loans.

Securities Purchase Agreements

Securities Purchase Agreements	9 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Securities Purchase Agreements	(5) Securities Purchase Agreements 2015 Securities Purchase Agreement On March 24, 2015, the Company entered into a Securities Purchase Agreement (the “2015 Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company sold (a) an aggregate of 8,980,773 shares of its common stock (the “2015 Shares”) and (b) warrants to purchase an aggregate of 4,490,387 shares of common stock of the Company (“2015 Warrants” and, together with the 2015 Shares, the “2015 Securities”). The 2015 Securities were issued at a price equal to $0.41 for aggregate gross proceeds of approximately $3,682,000. The 2015 Warrants became exercisable on September 24, 2015 at a per share exercise price equal to $0.61 and expire on September 24, 2020. The 2015 Warrants are subject to limitation on exercise if the Holder or its affiliates would beneficially own more than 9.99%/4.99% of the total number of the Company’s shares of common stock following such exercise. The 2015 Warrants also provide that in the event of a Company Controlled Fundamental Transaction (as defined in the 2015 Warrants), the Company may, at the election of the 2015 Warrant holders, be required to redeem all or a portion of the 2015 Warrants for cash in an amount equal to the Black-Scholes option pricing model value. As a result of this cash settlement provision, the 2015 Warrants are classified as liabilities and carried at fair value, with changes in fair value included in net income (loss) until such time as the 2015 Warrants are exercised or expire. The fair value of the 2015 Warrants decreased from $300,000 as of March 31, 2016 to $127,000 as of December 31, 2016, which resulted in a $173,000 gain recognized in the consolidated statement of operations from the change in fair value of warrant liabilities for the nine months ended December 31, 2016. The 2015 Warrants are not traded in an active securities market, and as such, the Company estimates the fair value of the of the warrant liability using the Black-Scholes option pricing model using the following assumptions: December 31, 2016 March 31, 2016 Expected term 3.75 years 4.5 years Common stock market price $ 0.14 $ 0.21 Risk-free interest rate 1.64 % 1.13 % Expected volatility 73 % 71 % Expected volatility is based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods that correspond to the expected term of the 2015 Warrants. The Company believes this method produces an estimate that is representative of the Company’s expectations of future volatility over the expected term of the 2015 Warrants. The Company currently has no reason to believe future volatility over the expected remaining life of the 2015 Warrants is likely to differ materially from historical volatility. The expected life is based on the remaining contractual term of the 2015 Warrants. The risk-free interest rate is the interest rate for treasury constant maturity instruments published by the Federal Reserve Board that is closest to the expected term of the 2015 Warrants. Fluctuations in the fair value of the 2015 Warrants are impacted by observable inputs, most significantly the Company’s common stock market price. Significant increases (decreases) in this input in isolation would result in a significantly higher (lower) fair value measurement. 2011 Securities Purchase Agreement In April 2011, the Company entered into a Securities Purchase Agreement (the “2011 Securities Purchase Agreement”) with certain accredited investors, pursuant to which the Company sold (a) an aggregate of 6,352,293 shares of its common stock (the “2011 Shares”) and (b) warrants to purchase an aggregate of 2,540,918 shares of common stock of the Company (“2011 Warrants” and, together with the 2011 Shares, the “2011 Securities”). The 2011 Securities were issued at a price equal to $1.92 for aggregate gross proceeds of approximately $12,196,000. The 2011 Warrants became exercisable on October 21, 2011 at a per share exercise price equal to $2.56 and expire on October 21, 2016. The 2011 Warrants contain provisions that adjust the exercise price in the event the Company pays stock dividends, effects stock splits or issues additional shares of common stock at a price per share less than the exercise price of the 2011 Warrants. As a result of the March 2015 offering, described above, and pursuant to the terms of the 2011 Warrants, the exercise price of the 2011 Warrants was adjusted to $2.30 per share. All of the warrants expired, unexercised, on October 21, 2016.

Restructuring and Severance Cha

Restructuring and Severance Charges	9 Months Ended
	Dec. 31, 2016
Restructuring And Related Activities [Abstract]
Restructuring and Severance Charges	(6) Restructuring and Severance Charges 2017 Restructuring Plan . During the third quarter of fiscal 2017, management initiated a restructuring plan in order to lower inventory warehousing costs in its U.S. subsidiary and better align the Company’s distribution process with the needs of the business (“2017 Restructuring Plan”). In connection with the restructuring plan, the Company incurred total restructuring and related charges of approximately $211,000 in the three months ended December 31, 2016, primarily related to severance and benefits provided to terminated employees. The restructuring activities under the 2017 Restructuring Plan were completed by January 31, 2017. 2016 Restructuring Plan . During the fourth quarter of fiscal 2016, management initiated a restructuring plan in order to lower operating costs, increase efficiencies and better align the Company’s workforce with the needs of the business (“2016 Restructuring Plan”). In connection with the restructuring plan, the Company incurred total restructuring and related charges of approximately $2,990,000 in fiscal 2016, primarily related to severance and benefits provided to terminated employees and officers. The restructuring activities under the 2016 Restructuring Plan were substantially complete as of March 31, 2016. The following table summarizes the restructuring and severance costs for the nine months ended December 31, 2016 (in thousands): Employee-Related Other Total Restructuring Liability as of March 31, 2016 $ 1,745 $ 162 $ 1,907 Costs incurred 273 39 312 Amounts paid (1,457 ) (124 ) (1,581 ) Accruals released (98 ) (63 ) (161 ) Foreign exchange 2 (3 ) (1 ) Restructuring Liability as of December 31, 2016 $ 465 $ 11 $ 476 Employee-related costs primarily include severance and other termination benefits and are calculated based on long-standing benefit practices, local statutory requirements and, in certain cases, voluntary termination arrangements. Other costs consist primarily of costs to exit auto leases and other costs directly related to employee terminations in certain European locations.

Sale of Saitek Assets

Sale of Saitek Assets	9 Months Ended
	Dec. 31, 2016
Business Combinations [Abstract]
Sale of Saitek Assets	( 7) Sale of Saitek Assets On September 15, 2016, the Company completed the sale of the Saitek assets to Logitech. Logitech acquired all of the specific trademarks, equipment and tooling, inventory, technical data and records, and other related documents necessary for the designing, manufacturing, marketing and distributing of interactive flight, space, and farm simulation controllers previously marketed and sold by the Company primarily under the “Saitek” brand. Additionally, at their option, eight Mad Catz research and development employees resigned from the Company and accepted employment offers with Logitech. The Company received $11.0 million in cash at closing and $2.0 million was deposited in escrow with Bank of America, National Association, to fund any post-closing adjustments or claims. The Company recognized a net gain of $8.2 million on the sale of the Saitek assets, which is reflected in “Net gain on sale of Saitek assets” in its unaudited consolidated statements of operations for the three and nine months ended December 31, 2016. Title to all assets acquired by Logitech transferred upon closing. The net gain recognized does not include the two $1.0 million deposits made into the tooling and general escrow accounts by Logitech. The $1.0 million deposited in the tooling escrow account is eligible to be released on April 30, 2017 pending the completion of specific contractual deliverables, including transfer, setup, and testing of tooling. Any amounts recognized from this escrow account will be decreased by any Logitech claims and external costs incurred to complete the tooling transfers. The Company has received claims against the tooling escrow account from Logitech of $26,770 to date and expects to incur a minimum of $325,000 in external costs to complete the tooling transfer. The Company believes that the fair value of the remaining obligation is less than the $1.0 million in escrow and is deferring the full amount as it is contingent upon completion of the specified deliverables in accordance with the transaction documents. The $1.0 million deposited in the general escrow account is eligible to be released on September 15, 2017. Any amounts from this account may be decreased by claims made by Logitech. The Company is not currently aware of any outstanding claims against the general escrow account. Pursuant to the terms of the purchase agreement for the transaction, the Company and Logitech also entered into several ancillary agreements as part of the transaction, including an Escrow Agreement governing the terms of the $2.0 million in escrow and a Transition Services Agreement governing the delivery of certain services and deliverables by the Company after completion of the transaction.

Restructuring of Accounts Payab

Restructuring of Accounts Payable	9 Months Ended
	Dec. 31, 2016
Restructuring Of Accounts Payable [Abstract]
Restructuring of Accounts Payable	(8) Restructuring of Accounts Payable In October 2016, the Company negotiated to modify the terms of $6.3 million in accounts payable with two contract manufacturers to extend the payment terms into equal installments over the following 27 months. The restructuring only involves the extension of the time period in which to pay and, as such, the carrying value has not changed and the future cash payments will total $6.3 million. As part of the restructuring, $2.8 million was reclassified to notes and restructured payables and $3.5 million was reclassified to notes and restructured payables, less current portion. As of December 31, 2016 there is $2.8 million in notes and restructured payables and $2.8 million in notes and restructured payables, less current portion presented in the Consolidated Balance Sheets. The fair value of these restructured payables using the average borrowing rates currently available to the Company is $5.3 million. However, in accordance with ASC 470-60 and ASC 470-50, the Company determined that the restructuring of the payables resulted in a troubled debt restructuring and as such, the carrying value was not changed and there was no gain or loss recognized in the consolidated statement of operations.

Basic and Diluted Net (Loss) In

Basic and Diluted Net (Loss) Income per Share	9 Months Ended
	Dec. 31, 2016
Earnings Per Share [Abstract]
Basic and Diluted Net (Loss) Income per Share	(9) Basic and Diluted Net (Loss) Income per Share Basic net (loss) income per share is calculated by dividing the net (loss) income for the period by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share includes the impact of potentially dilutive securities unless inclusion of such securities would be anti-dilutive. Outstanding options to purchase an aggregate of 5,846,721 and 5,402,920 shares of the Company’s common stock for the three and nine months ended December 31, 2016, respectively, and 7,687,983 and 7,994,415 shares of the Company’s common stock for the three and nine months ended December 31, 2015, respectively, were excluded from the diluted net (loss) income per share calculations because of their anti-dilutive effect during these periods. Outstanding warrants to purchase an aggregate of 552,373 and 1,875,659 shares of the Company’s common stock for the three and nine months ended December 31, 2016, respectively, and 7,031,305 shares of the Company’s common stock for each of the three and nine months ended December 31, 2015, were excluded from the diluted net (loss) income per share calculations because of their anti-dilutive effect during these periods.

Geographic and Product Line Dat

Geographic and Product Line Data and Concentrations	9 Months Ended
	Dec. 31, 2016
Segment Reporting [Abstract]
Geographic and Product Line Data and Concentrations	(10) Geographic and Product Line Data and Concentrations Revenue is attributed to geographic regions based on the location of the customer. The Company’s net sales are attributed to the following geographic regions (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Americas $ 11,802 $ 47,002 $ 27,061 $ 79,003 Europe, the Middle East and Africa ("EMEA") 6,236 16,702 13,900 32,000 Asia Pacific ("APAC") 1,023 1,334 3,755 5,927 $ 19,061 $ 65,038 $ 44,716 $ 116,930 The Company’s sales by customer as a percentage of gross sales for all customers that accounted for greater than 10% of gross sales is as follows: Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Customer 1 28 % — % 15 % — % Customer 2 15 % 29 % 13 % 25 % Customer 3 10 % 8 % 14 % 8 % Customer 4 9 % 14 % 13 % 15 % The Company’s accounts receivable as a percentage of total accounts receivable for all customers that accounted for greater than 10% of accounts receivable is as follows: December 31, 2016 March 31, 2016 Customer 1 20 % 26 % Customer 2 19 % — % Customer 3 13 % 3 % Customer 4 6 % 12 % During the three and nine months ended December 31, 2016 and 2015, no other customers accounted for greater than 10% of gross sales. At December 31, 2016 and March 31, 2016, no other customers accounted for greater than 10% of accounts receivable. The Company’s sales by platform as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Consoles 72 % 17 % 56 % 20 % PC and Mac 15 % 7 % 14 % 9 % Rock Band 4 10 % 67 % 18 % 58 % Smart devices 3 % 2 % 3 % 3 % Saitek — % 7 % 9 % 10 % 100 % 100 % 100 % 100 % The Company’s sales by product category as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Audio 71 % 16 % 51 % 18 % Mice and keyboards 13 % 6 % 13 % 8 % Rock Band 4 10 % 67 % 18 % 58 % Specialty controllers 4 % 2 % 6 % 2 % Controllers 2 % 1 % 2 % 2 % Saitek — % 7 % 9 % 10 % Accessories — % 1 % 1 % 1 % Games and other — % — % — % 1 % 100 % 100 % 100 % 100 % The Company’s sales by brand as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Tritton 69 % 14 % 50 % 16 % Mad Catz 21 % 11 % 23 % 14 % Rock Band 4 10 % 67 % 18 % 58 % Saitek — % 7 % 9 % 10 % All others — % 1 % — % 2 % 100 % 100 % 100 % 100 % (a) Sales of products related to the Rock Band 4 video game and simulation products sold as part of the sale of Saitek assets are listed separately in each of the tables to provide comparable information for our ongoing product lines.

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Dec. 31, 2016
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Nature of Operations	Nature of Operations Mad Catz Interactive, Inc. (“Mad Catz”) designs, manufactures (primarily through third parties in Asia), markets and distributes innovative interactive entertainment products marketed under its Mad Catz ® ®
Basis of Accounting	Basis of Accounting The accompanying unaudited consolidated financial information has been prepared by management, without audit, in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. The consolidated balance sheet at March 31, 2016 was derived from the audited consolidated financial statements at that date; however, it does not include all disclosures required by accounting principles generally accepted in the United States (“U.S. GAAP”). The Company has incurred recurring losses from operations in each of the years in the three-year period ended March 31, 2016 and generated negative cash flows from operations in the year ended March 31, 2016. The Company has also generated a loss from operations in the nine months ended December 31, 2016 and has negative working capital and shareholders’ equity as of December 31, 2016. The Company believes it is unlikely that its available cash balances, anticipated cash flows from operations and available credit facilities will be sufficient to satisfy our operating needs for at least the next twelve months. To meet its capital needs, the Company is considering multiple alternatives, including, but not limited to, equity sales under its “at-the-market” (“ATM”) equity offering program, additional equity financings, debt financings and other funding transactions. There can be no assurance that the Company will be able to complete financing transactions on acceptable terms or otherwise. If the Company is unable to become cash-flow positive or to raise additional capital as and when needed, or upon acceptable terms, such failure would have a significant negative impact on its financial condition. The Company is also exploring other strategic alternatives including, but not limited to, the sale of the Company. The Company has not made a decision at this time to pursue any specific strategic transaction or other strategic alternatives and has not set a specific timetable for the process. As such, there can be no assurance that the exploration of strategic alternatives will result in the sale of the Company or any other transaction. Our primary operating subsidiary, Mad Catz, Inc. (“MCI”), maintains a Loan and Security Agreement (the “Loan Agreement”) with Sterling National Bank (“SNB”) to provide for a $20.0 million revolving line of credit subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Loan Agreement expires on June 30, 2018. The Company is required to meet a monthly financial covenant based on a trailing twelve months’ adjusted earnings before income taxes, depreciation and amortization (“EBITDA”), as defined. Our trailing twelve months’ Adjusted EBITDA as of November 30 and December 31, 2016 were lower than the required threshold and, accordingly, we were not in compliance with this covenant as of December 31, 2016. On January 31, 2017, we received confirmation from SNB that a forbearance will be issued for this non-compliance through April 28, 2017. Once finalized, if applicable, the material terms of the forbearance will be set forth and filed as a current report on SEC Form 8-K. There can be no assurance that we will be able to meet the covenants subsequent to December 31, 2016 or that we would be able to obtain a waiver or forbearance from SNB to the extent we are not in compliance with the covenants. Additionally, Mad Catz Europe Ltd. (“MCE”), a wholly-owned subsidiary of the Company, maintains a Master Facilities Agreement (the “Facilities Agreement”) with Faunus Group International, Inc. (“FGI”) to provide for a $10.0 million secured demand credit facility subject to the availability of eligible accounts receivable and inventories, which changes throughout the year. The Facilities Agreement has a three-year term, although FGI may terminate the facility at any time upon at least three months’ notice. Our borrowing availability fluctuates daily, as it is subject to eligible accounts receivable and inventory amounts and we typically borrow all amounts available to us, less approximately $0.5 million. The Company depends upon the availability of capital under the Loan Agreement and Facilities Agreement to finance operations. The Company operates in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future sales and expenses. If the Company is unable to comply with the Adjusted EBITDA covenants contained in the Loan Agreement, as amended from time to time, SNB could declare the outstanding borrowings under the facility immediately due and payable. If the Company needs to obtain additional funds as a result of the termination of the Loan Agreement or Facilities Agreement or the acceleration of amounts due thereunder, there can be no assurance that alternative financing can be obtained on substantially similar or acceptable terms, or at all. The Company’s failure to promptly obtain alternate financing could limit our ability to implement our business plan and have an immediate, severe and adverse impact on our business, results of operations, financial condition and liquidity. In the event that no alternative financing is available, the Company would be forced to drastically curtail operations, or dispose of assets, or cease operations altogether. In the opinion of management, the unaudited consolidated financial statements for the interim period presented reflect all material adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the financial position and results of operations as of and for such periods indicated. These unaudited consolidated financial statements and notes hereto should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2016. These consolidated financial statements refer to the Company’s fiscal years ending March 31 as its “fiscal” years. The Company generates a substantial percentage of net sales in the last three months of every calendar year, its fiscal third quarter. Results for the interim periods presented herein are not necessarily indicative of results that may be reported for any other interim period or for the fiscal year ending March 31, 2017. All currency amounts are presented in U.S. dollars.
Principles of Consolidation	Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of Mad Catz and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. References to the “Company,” “we,” “us,” “our” and other similar words refer to Mad Catz Interactive, Inc. and its consolidated subsidiaries, unless the context suggests otherwise.
Use of Estimates	Use of Estimates The unaudited consolidated financial statements have been prepared in conformity with U.S. GAAP. Applying these principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the reported amounts of sales and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to asset impairments, reserves for accounts receivable and inventories, contingencies and litigation, valuation and recognition of share-based payments, warrant liabilities and income taxes. As future events and their effects cannot be determined with precision, actual results could differ from these estimates.
Sale of Saitek Assets	Sale of Saitek Assets On September 15, 2016, the Company completed the sale of certain assets associated with the Company’s flight, space, and farm simulation product line (the “Saitek assets”) to certain subsidiaries of Logitech International S.A. (collectively, “Logitech”) (see Note 7). The Company followed the guidance in ASC 205-20, “Presentation of Financial Statements-Discontinued Operations,” as updated by Accounting Standards Update No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity” in recording the transaction and related gain on the accompanying consolidated statement of operations. The Saitek assets do not represent a component of an entity, and therefore, the sale of the Saitek assets has not been presented as discontinued operations.
Recently Issued Accounting Standards	Recently Issued Accounting Standards In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which amends guidance on the classification of restricted cash in the statement of cash flows. This ASU requires that a statement of cash flows explain the change during the period of the total cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents when reconciling the beginning-of-period total amounts shown on the statement of cash flows. ASU 2016-18 is effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within those annual reporting periods. Early adoption is permitted. The adoption of this guidance will change the presentation of restricted cash presented on our statement of cash flows; however, it will have no impact on our results of operations, financial condition or liquidity. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, which addresses specific cash flow items with the objective of reducing existing diversity in practice in how certain transactions are classified in the statement of cash flows. This ASU is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the updated standard to have a material impact on the consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation, which amends several aspects of share-based payment accounting. This guidance requires all excess tax benefits and tax deficiencies to be recorded in the consolidated statement of operations when the awards vest or are settled, with prospective application required. The guidance also changes the classification of such tax benefits or tax deficiencies on the statement of cash flows from a financing activity to an operating activity, with retrospective or prospective application allowed. Additionally, the guidance requires the classification of employee taxes paid when an employer withholds shares for tax-withholding purposes as a financing activity on the statement of cash flows, with retrospective application required. In February 2016, the FASB issued ASU 2016-02, Leases, which amends the existing accounting standards for lease accounting and requiring lessees to recognize lease assets and lease liabilities for all leases with lease terms of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. Generally Accepted Accounting Principles (“GAAP”), the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which requires entities to measure most inventory “at the lower of cost and net realizable value,” thereby simplifying the current guidance under which and entity must measure inventory at the lower of cost or market. The ASU does not apply to inventories that are measured by using either the last-in, first-out method or the retail inventory method. For public business entities, the ASU is effective prospectively for annual periods beginning after December 15, 2016, and interim periods therein. The Company has elected to early adopt, prospectively, this guidance effective April 1, 2016. The adoption of this guidance did not have a material impact on the Company’s consolidated financial condition or results of operations. In April 2015, the FASB issued ASU 2015-03, Interest — Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. In August 2015, the FASB issued ASU 2015-15, Presentation and Subsequent Measurement of Debit Issuance Costs Associated with Line-of-Credit Arrangements. This ASU clarified the guidance in ASC 2015-03 stating that the SEC staff would not object to a company presenting debt issuance costs related to a line-of-credit arrangement on the balance sheet as a deferred asset, regardless of whether there were any outstanding borrowings at period-end. This update is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods. The Company adopted these standards on a retrospective basis as of April 1, 2016. The Company will continue to defer and present the debt issuance costs related to its Loan Agreement and Facilities Agreement in Other assets and amortize them ratably over the term of the agreement. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a one-year period subsequent to the date of the financial statements. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for all entities for the first annual period ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. As the requirements of this literature are disclosure only, adoption of this guidance is not expected to impact the Company’s financial condition or results of operations, but will change the Company’s disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On July 9, 2015, the FASB agreed to defer by one year the effective date of ASU 2014-09 to annual reporting periods beginning after December 15, 2017, with early adoption as of the original effective date permitted. The Company does not intend to adopt this guidance early and it will become effective for the Company on April 1, 2018. The Company has not yet decided which implementation method it will adopt. Although management has completed its initial evaluation of this guidance as it pertains to the Company, management is still evaluating the impacts that this updated guidance may have on the Company’s consolidated financial statements, including the potential impacts of timing of revenue recognition and additional information that may be necessary for expanded disclosures regarding revenue.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Recognized Assets and Liabilities Carried, Recurring at Fair Value	The following tables provide a summary of the recognized assets and liabilities carried at fair value on a recurring basis (in thousands): Basis of Fair Value Measurements Balance as of December 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (127 ) $ — $ — $ (127 ) Basis of Fair Value Measurements Balance as of March 31, 2016 Level 1 Level 2 Level 3 Liabilities: Warrant liabilities (Note 5) $ (300 ) $ — $ — $ (300 )
Fair Value Measurements of Warrant Liabilities	The following table provides a roll forward of the Company’s level three fair value measurements during the nine months ended December 31, 2016, which consist of the Company’s warrant liabilities (in thousands): Warrant liabilities: Balance at March 31, 2016 $ (300 ) Change in fair value of warrant liabilities 173 Balance at December 31, 2016 $ (127 )

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consist of the following (in thousands): December 31, 2016 March 31, 2016 Raw materials $ 739 $ 1,119 Finished goods 12,099 21,886 Inventory sold under extended payment terms 2,532 — $ 15,370 $ 23,005

Securities Purchase Agreements

Securities Purchase Agreements (Tables)	9 Months Ended
	Dec. 31, 2016
2015 Securities Purchase Agreement [Member]
Estimated Fair Value of Warrants	The 2015 Warrants are not traded in an active securities market, and as such, the Company estimates the fair value of the of the warrant liability using the Black-Scholes option pricing model using the following assumptions: December 31, 2016 March 31, 2016 Expected term 3.75 years 4.5 years Common stock market price $ 0.14 $ 0.21 Risk-free interest rate 1.64 % 1.13 % Expected volatility 73 % 71 %

Restructuring and Severance C21

Restructuring and Severance Charges (Tables)	9 Months Ended
	Dec. 31, 2016
Restructuring And Related Activities [Abstract]
Summary of Restructuring and Severance Costs	The following table summarizes the restructuring and severance costs for the nine months ended December 31, 2016 (in thousands): Employee-Related Other Total Restructuring Liability as of March 31, 2016 $ 1,745 $ 162 $ 1,907 Costs incurred 273 39 312 Amounts paid (1,457 ) (124 ) (1,581 ) Accruals released (98 ) (63 ) (161 ) Foreign exchange 2 (3 ) (1 ) Restructuring Liability as of December 31, 2016 $ 465 $ 11 $ 476

Geographic and Product Line D22

Geographic and Product Line Data and Concentrations (Tables)	9 Months Ended
	Dec. 31, 2016
Sales Attributed to Geographic Regions	The Company’s net sales are attributed to the following geographic regions (in thousands): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Americas $ 11,802 $ 47,002 $ 27,061 $ 79,003 Europe, the Middle East and Africa ("EMEA") 6,236 16,702 13,900 32,000 Asia Pacific ("APAC") 1,023 1,334 3,755 5,927 $ 19,061 $ 65,038 $ 44,716 $ 116,930
Summary of Sales by Gross Sales, Accounts Receivable, Platform, Product Category and Brand	The Company’s sales by customer as a percentage of gross sales for all customers that accounted for greater than 10% of gross sales is as follows: Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Customer 1 28 % — % 15 % — % Customer 2 15 % 29 % 13 % 25 % Customer 3 10 % 8 % 14 % 8 % Customer 4 9 % 14 % 13 % 15 % The Company’s accounts receivable as a percentage of total accounts receivable for all customers that accounted for greater than 10% of accounts receivable is as follows: December 31, 2016 March 31, 2016 Customer 1 20 % 26 % Customer 2 19 % — % Customer 3 13 % 3 % Customer 4 6 % 12 %
Platform [Member]
Summary of Sales by Gross Sales, Accounts Receivable, Platform, Product Category and Brand	The Company’s sales by platform as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Consoles 72 % 17 % 56 % 20 % PC and Mac 15 % 7 % 14 % 9 % Rock Band 4 10 % 67 % 18 % 58 % Smart devices 3 % 2 % 3 % 3 % Saitek — % 7 % 9 % 10 % 100 % 100 % 100 % 100 %
Product Category [Member]
Summary of Sales by Gross Sales, Accounts Receivable, Platform, Product Category and Brand	The Company’s sales by product category as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Audio 71 % 16 % 51 % 18 % Mice and keyboards 13 % 6 % 13 % 8 % Rock Band 4 10 % 67 % 18 % 58 % Specialty controllers 4 % 2 % 6 % 2 % Controllers 2 % 1 % 2 % 2 % Saitek — % 7 % 9 % 10 % Accessories — % 1 % 1 % 1 % Games and other — % — % — % 1 % 100 % 100 % 100 % 100 %
Brand [Member]
Summary of Sales by Gross Sales, Accounts Receivable, Platform, Product Category and Brand	The Company’s sales by brand as a percentage of gross sales were as follows (a): Three Months Ended December 31, Nine Months Ended December 31, 2016 2015 2016 2015 Tritton 69 % 14 % 50 % 16 % Mad Catz 21 % 11 % 23 % 14 % Rock Band 4 10 % 67 % 18 % 58 % Saitek — % 7 % 9 % 10 % All others — % 1 % — % 2 % 100 % 100 % 100 % 100 % (a) Sales of products related to the Rock Band 4 video game and simulation products sold as part of the sale of Saitek assets are listed separately in each of the tables to provide comparable information for our ongoing product lines.

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Dec. 31, 2016USD ($)
Basis of Presentation [Line Items]
Line of credit facility covenant compliance	The Company is required to meet a monthly financial covenant based on a trailing twelve months’ adjusted earnings before income taxes, depreciation and amortization (“EBITDA”), as defined. Our trailing twelve months’ Adjusted EBITDA as of November 30 and December 31, 2016 were lower than the required threshold and, accordingly, we were not in compliance with this covenant as of December 31, 2016. On January 31, 2017, we received confirmation from SNB that a forbearance will be issued for this non-compliance through April 28, 2017. Once finalized, if applicable, the material terms of the forbearance will be set forth and filed as a current report on SEC Form 8-K. There can be no assurance that we will be able to meet the covenants subsequent to December 31, 2016 or that we would be able to obtain a waiver or forbearance from SNB to the extent we are not in compliance with the covenants.
Faunus Group International Inc [Member]
Basis of Presentation [Line Items]
Facilities agreement expiration period	3 years
Loan and Security Agreement [Member] | Mad Catz, Inc. [Member] | Sterling National Bank [Member]
Basis of Presentation [Line Items]
Loan and security expiration date	Jun. 30, 2018
Loan and Security Agreement [Member] | Mad Catz, Inc. [Member] | Sterling National Bank [Member] | Revolving Credit Facility [Member]
Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity	$ 20,000,000
Master Facilities Agreement [Member] | Mad Catz Europe Ltd. [Member] | Faunus Group International Inc [Member] | Revolving Credit Facility [Member]
Basis of Presentation [Line Items]
Credit facility maximum borrowing capacity	10,000,000
Secured demand credit facility, borrowing reserve	$ 500,000

Fair Value Measurements - Recog

Fair Value Measurements - Recognized Assets and Liabilities Carried, Recurring at Fair Value (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Liabilities:
Warrant liabilities (Note 5)	$ (127)	$ (300)
Level 3 [Member]
Liabilities:
Warrant liabilities (Note 5)	(127)	(300)
Level 3 [Member] | Outstanding warrants [Member]
Liabilities:
Warrant liabilities (Note 5)	$ (127)	$ (300)

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements of Warrant Liabilities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Warrant liabilities:
Balance at March 31, 2016			$ (300)
Change in fair value of warrant liabilities	$ 170	$ 1,200	173	$ 283
Balance at December 31, 2016	(127)		(127)
Level 3 [Member]
Warrant liabilities:
Balance at March 31, 2016			(300)
Change in fair value of warrant liabilities			173
Balance at December 31, 2016	$ (127)		$ (127)

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 739	$ 1,119
Finished goods	12,099	21,886
Inventory sold under extended payment terms	2,532
Inventories	$ 15,370	$ 23,005

Inventories - Additional Inform

Inventories - Additional Information (Detail) $ in Thousands	Dec. 31, 2016USD ($)
Inventory [Line Items]
Inventory sold	$ 2,532
Rock Band Video Game [Member]
Inventory [Line Items]
Inventory sold	$ 2,500

Restricted Cash - Additional In

Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Mar. 31, 2016
Restricted Cash And Investments [Abstract]
Restricted cash	$ 1,583	$ 680

Securities Purchase Agreement29

Securities Purchase Agreements - Additional Information (Detail) - USD ($)	Sep. 24, 2015	Mar. 24, 2015	Oct. 21, 2011	Apr. 30, 2011	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2016
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Sale of common stock					73,469,571		73,469,571		73,469,571
Fair value of warrants					$ 127,000		$ 127,000		$ 300,000
Change in fair value of warrant liabilities					$ (170,000)	$ (1,200,000)	$ (173,000)	$ (283,000)
2015 Securities Purchase Agreement [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Sale of common stock		8,980,773
Warrants to purchase shares of common stock		4,490,387
Securities issued price per share		$ 0.41			$ 0.14		$ 0.14		$ 0.21
Proceeds from issuance of securities		$ 3,682,000
Warrants exercise price	$ 0.61
Warrants expiration date							Sep. 24, 2020
Common stock warrants exercise, description							The 2015 Warrants are subject to limitation on exercise if the Holder or its affiliates would beneficially own more than 9.99%/4.99% of the total number of the Company’s shares of common stock following such exercise.
Fair value of warrants					$ 127,000		$ 127,000		$ 300,000
Change in fair value of warrant liabilities							$ (173,000)
2015 Securities Purchase Agreement [Member] | Common Stockholders [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Ownership percentage							9.99%
2015 Securities Purchase Agreement [Member] | Shareholder Affiliates [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Ownership percentage							4.99%
2011 Securities Purchase Agreement [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Sale of common stock				6,352,293
Warrants to purchase shares of common stock				2,540,918
Securities issued price per share				$ 1.92
Proceeds from issuance of securities				$ 12,196,000
Warrants exercise price			$ 2.56				$ 2.30
Warrants expiration date							Oct. 21, 2016

Securities Purchase Agreement30

Securities Purchase Agreements - Estimated Fair Value of Warrants (Detail) - 2015 Securities Purchase Agreement [Member] - $ / shares	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016	Mar. 24, 2015
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term	3 years 9 months	4 years 6 months
Common stock market price	$ 0.14	$ 0.21	$ 0.41
Risk-free interest rate	1.64%	1.13%
Expected volatility	73.00%	71.00%

Restructuring and Severance C31

Restructuring and Severance Charges - Additional Information (Detail) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2016	Mar. 31, 2016
2017 Restructuring Plan [Member]
Restructuring Cost And Reserve [Line Items]
Total restructuring and related charges incurred	$ 211,000
Restructuring activities completion date		Jan. 31, 2017
2016 Restructuring Plan [Member]
Restructuring Cost And Reserve [Line Items]
Total restructuring and related charges incurred			$ 2,990,000
Restructuring activities completion date		Mar. 31, 2016

Restructuring and Severance C32

Restructuring and Severance Charges - Summary of Restructuring and Severance Costs (Detail) $ in Thousands	9 Months Ended
	Dec. 31, 2016USD ($)
Restructuring Cost And Reserve [Line Items]
Restructuring Liability as of March 31, 2016	$ 1,907
Costs incurred	312
Amounts paid	(1,581)
Accruals released	(161)
Foreign exchange	(1)
Restructuring Liability as of December 31, 2016	476
Employee-Related [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring Liability as of March 31, 2016	1,745
Costs incurred	273
Amounts paid	(1,457)
Accruals released	(98)
Foreign exchange	2
Restructuring Liability as of December 31, 2016	465
Other [Member]
Restructuring Cost And Reserve [Line Items]
Restructuring Liability as of March 31, 2016	162
Costs incurred	39
Amounts paid	(124)
Accruals released	(63)
Foreign exchange	(3)
Restructuring Liability as of December 31, 2016	$ 11

Sale of Saitek Assets - Additio

Sale of Saitek Assets - Additional Information (Detail)	Sep. 15, 2016USD ($)EmployeeDeposit	Dec. 31, 2016USD ($)	Dec. 31, 2016USD ($)
Business Acquisition [Line Items]
Cash proceeds from sale of assets			$ 10,654,000
Net gain from sale of assets		$ (7,000)	8,170,000
Logitech [Member]
Business Acquisition [Line Items]
Number of employees moved upon sale of assets | Employee	8
Logitech [Member] | Saitek [Member]
Business Acquisition [Line Items]
Cash proceeds from sale of assets	$ 11,000,000
Escrow deposits from sale of assets	$ 2,000,000
Net gain from sale of assets		$ 8,200,000	8,200,000
Number of deposits made into tooling and general escrow accounts | Deposit	2
Tooling Escrow Account [Member] | Logitech [Member] | Saitek [Member]
Business Acquisition [Line Items]
Escrow deposits from sale of assets	$ 1,000,000
Claims received against escrow account			$ 26,770
Escrow deposits eligible to be released date			Apr. 30, 2017
Tooling Escrow Account [Member] | Logitech [Member] | Saitek [Member] | Maximum [Member]
Business Acquisition [Line Items]
Fair value of remaining obligation held in escrow	1,000,000
Tooling Escrow Account [Member] | Logitech [Member] | Saitek [Member] | Minimum [Member]
Business Acquisition [Line Items]
Expected external costs incurred to complete tooling transfer			$ 325,000
General Escrow Account [Member] | Logitech [Member] | Saitek [Member]
Business Acquisition [Line Items]
Escrow deposits from sale of assets	$ 1,000,000
Escrow deposits eligible to be released date			Sep. 15, 2017

Restructuring of Accounts Pay34

Restructuring of Accounts Payable - Additional Information (Detail)	1 Months Ended	9 Months Ended
	Oct. 31, 2016USD ($)ContractManufacturer	Dec. 31, 2016USD ($)
Restructuring Of Accounts Payable [Abstract]
Restructuring of accounts payable terms		In October 2016, the Company negotiated to modify the terms of $6.3 million in accounts payable with two contract manufacturers to extend the payment terms into equal installments over the following 27 months.
Restructuring of accounts payable	$ 6,300,000	$ 6,345,000
Number of contract manufacturers | ContractManufacturer	2
Extended payment terms in equal installments	27 months
Accounts payable reclassified to notes and restructured payables current	$ 2,800,000	2,800,000
Accounts payable reclassified to notes and restructured payables, less current portion	$ 3,500,000	2,800,000
Fair value of restructured payable		5,300,000
Gain or loss on restructuring debt		$ 0

Basic and Diluted Net (Loss) 35

Basic and Diluted Net (Loss) Income per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Outstanding options [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net (loss) income per share	5,846,721	7,687,983	5,402,920	7,994,415
Outstanding warrants [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from the computation of diluted net (loss) income per share	552,373	7,031,305	1,875,659	7,031,305

Geographic and Product Line D36

Geographic and Product Line Data and Concentrations - Sales Attributed to Geographic Regions (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Net sales	$ 19,061	$ 65,038	$ 44,716	$ 116,930
Americas [Member]
Segment Reporting Information [Line Items]
Net sales	11,802	47,002	27,061	79,003
EMEA [Member]
Segment Reporting Information [Line Items]
Net sales	6,236	16,702	13,900	32,000
APAC [Member]
Segment Reporting Information [Line Items]
Net sales	$ 1,023	$ 1,334	$ 3,755	$ 5,927

Geographic and Product Line D37

Geographic and Product Line Data and Concentrations - Summary of Sales by Gross Sales (Detail) - Customer Concentration Risk [Member] - Gross Sales [Member]	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Customer 1 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	28.00%		15.00%
Customer 2 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	15.00%	29.00%	13.00%	25.00%
Customer 3 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	10.00%	8.00%	14.00%	8.00%
Customer 4 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	9.00%	14.00%	13.00%	15.00%

Geographic and Product Line D38

Geographic and Product Line Data and Concentrations - Summary of Sales by Accounts Receivable (Detail) - Credit Concentration Risk [Member] - Accounts Receivable [Member]	9 Months Ended	12 Months Ended
	Dec. 31, 2016	Mar. 31, 2016
Customer 1 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	20.00%	26.00%
Customer 2 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	19.00%
Customer 3 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	13.00%	3.00%
Customer 4 [Member]
Concentration Risk [Line Items]
Customer concentration risk, percentage	6.00%	12.00%

Geographic and Product Line D39

Geographic and Product Line Data and Concentrations - Summary of Sales by Platform (Detail) - Platform [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Percentage of sales by platform	100.00%	100.00%	100.00%	100.00%
Consoles [Member]
Concentration Risk [Line Items]
Percentage of sales by platform	72.00%	17.00%	56.00%	20.00%
PC and Mac [Member]
Concentration Risk [Line Items]
Percentage of sales by platform	15.00%	7.00%	14.00%	9.00%
Rock Band 4 [Member]
Concentration Risk [Line Items]
Percentage of sales by platform	10.00%	67.00%	18.00%	58.00%
Smart devices [Member]
Concentration Risk [Line Items]
Percentage of sales by platform	3.00%	2.00%	3.00%	3.00%
Saitek [Member]
Concentration Risk [Line Items]
Percentage of sales by platform		7.00%	9.00%	10.00%

Geographic and Product Line D40

Geographic and Product Line Data and Concentrations - Summary of Sales by Product Category (Detail) - Product Category [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Percentage of sales by product category	100.00%	100.00%	100.00%	100.00%
Audio [Member]
Concentration Risk [Line Items]
Percentage of sales by product category	71.00%	16.00%	51.00%	18.00%
Mice and Keyboards [Member]
Concentration Risk [Line Items]
Percentage of sales by product category	13.00%	6.00%	13.00%	8.00%
Rock Band 4 [Member]
Concentration Risk [Line Items]
Percentage of sales by product category	10.00%	67.00%	18.00%	58.00%
Specialty Controllers [Member]
Concentration Risk [Line Items]
Percentage of sales by product category	4.00%	2.00%	6.00%	2.00%
Controllers [Member]
Concentration Risk [Line Items]
Percentage of sales by product category	2.00%	1.00%	2.00%	2.00%
Saitek [Member]
Concentration Risk [Line Items]
Percentage of sales by product category		7.00%	9.00%	10.00%
Accessories [Member]
Concentration Risk [Line Items]
Percentage of sales by product category		1.00%	1.00%	1.00%
Games and other [Member]
Concentration Risk [Line Items]
Percentage of sales by product category				1.00%

Geographic and Product Line D41

Geographic and Product Line Data and Concentrations - Summary of Sales by Brand (Detail) - Brand [Member] - Sales [Member]	3 Months Ended		9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2016	Dec. 31, 2015
Concentration Risk [Line Items]
Percentage of sales by brand	100.00%	100.00%	100.00%	100.00%
Tritton [Member]
Concentration Risk [Line Items]
Percentage of sales by brand	69.00%	14.00%	50.00%	16.00%
Mad Catz [Member]
Concentration Risk [Line Items]
Percentage of sales by brand	21.00%	11.00%	23.00%	14.00%
Rock Band 4 [Member]
Concentration Risk [Line Items]
Percentage of sales by brand	10.00%	67.00%	18.00%	58.00%
Saitek [Member]
Concentration Risk [Line Items]
Percentage of sales by brand		7.00%	9.00%	10.00%
All others [Member]
Concentration Risk [Line Items]
Percentage of sales by brand		1.00%		2.00%