Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 31, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | TURTLE BEACH CORPORATION | |
Entity Central Index Key | 0001493761 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 16,526,393 | |
Entity Shell Company | false | |
Trading Symbol | HEAR | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-35465 | |
Entity Tax Identification Number | 27-2767540 | |
Entity Address, Address Line One | 44 South Broadway | |
Entity Address, Address Line Two | 4th Floor | |
Entity Address, City or Town | White Plains | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10601 | |
City Area Code | 888 | |
Local Phone Number | 496-8001 | |
Entity Incorporation, State or Country Code | NV | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.001 | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net revenue | $ 41,300 | $ 78,564 | $ 87,962 | $ 171,617 |
Cost of revenue | 33,418 | 49,854 | 66,051 | 108,052 |
Gross profit | 7,882 | 28,710 | 21,911 | 63,565 |
Operating expenses: | ||||
Selling and marketing | 11,587 | 15,678 | 22,416 | 27,223 |
Research and development | 5,136 | 4,416 | 10,388 | 8,409 |
General and administrative | 12,532 | 8,173 | 18,767 | 15,210 |
Total operating expenses | 29,255 | 28,267 | 51,571 | 50,842 |
Operating income (loss) | (21,373) | 443 | (29,660) | 12,723 |
Interest expense | 84 | 73 | 193 | 170 |
Other non-operating expense, net | 1,109 | (65) | 1,828 | 514 |
Income (loss) before income tax | (22,566) | 435 | (31,681) | 12,039 |
Income tax expense (benefit) | (4,740) | (1,286) | (7,379) | 1,480 |
Net income (loss) | $ (17,826) | $ 1,721 | $ (24,302) | $ 10,559 |
Net income (loss) per share | ||||
Basic (in dollars per share) | $ (1.08) | $ 0.11 | $ (1.49) | $ 0.67 |
Diluted (in dollars per share) | $ (1.08) | $ 0.09 | $ (1.49) | $ 0.58 |
Weighted average number of shares: | ||||
Basic (in shares) | 16,500 | 15,920 | 16,348 | 15,737 |
Diluted (in shares) | 16,500 | 18,329 | 16,348 | 18,204 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (17,826) | $ 1,721 | $ (24,302) | $ 10,559 |
Foreign currency translation adjustment | (1,090) | 805 | (1,519) | 94 |
Other comprehensive income (loss) | (1,090) | 805 | (1,519) | 94 |
Comprehensive income (loss) | $ (18,916) | $ 2,526 | $ (25,821) | $ 10,653 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 10,877 | $ 37,720 |
Accounts receivable, net | 8,551 | 35,953 |
Inventories | 120,694 | 101,933 |
Prepaid expenses and other current assets | 13,606 | 17,506 |
Total Current Assets | 153,728 | 193,112 |
Property and equipment, net | 6,144 | 6,955 |
Deferred income taxes | 13,009 | 5,899 |
Goodwill | 10,686 | 10,686 |
Intangible assets, net | 5,126 | 5,788 |
Other assets | 8,261 | 8,065 |
Total Assets | 196,954 | 230,505 |
Current Liabilities: | ||
Revolving credit facility | 15,707 | |
Accounts payable | 31,030 | 40,475 |
Other current liabilities | 19,456 | 37,693 |
Total Current Liabilities | 66,193 | 78,168 |
Income tax payable | 3,774 | 3,774 |
Other liabilities | 7,334 | 7,194 |
Total Liabilities | 77,301 | 89,136 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, $0.001 par value - 25,000,000 shares authorized; 16,526,393 and 16,168,147 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively | 17 | 16 |
Additional paid-in capital | 202,382 | 198,278 |
Accumulated deficit | (81,354) | (57,052) |
Accumulated other comprehensive income (loss) | (1,392) | 127 |
Total Stockholders’ Equity | 119,653 | 141,369 |
Total Liabilities and Stockholders’ Equity | $ 196,954 | $ 230,505 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized | 25,000,000 | 25,000,000 |
Common stock shares issued | 16,526,393 | 16,168,147 |
Common stock shares outstanding | 16,526,393 | 16,168,147 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (24,302) | $ 10,559 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 2,458 | 1,847 |
Amortization of intangible assets | 623 | 625 |
Amortization of debt financing costs | 94 | 95 |
Stock-based compensation | 3,567 | 3,727 |
Deferred income taxes | (7,110) | (101) |
Change in sales returns reserve | (4,992) | (4,186) |
Provision for obsolete inventory | (1,289) | 783 |
Changes in operating assets and liabilities, net of acquisitions: | ||
Accounts receivable | 32,152 | 20,028 |
Inventories | (21,288) | (11,413) |
Accounts payable | (9,914) | 4,580 |
Prepaid expenses and other assets | 1,055 | (11,299) |
Income taxes payable | 1,550 | (6,850) |
Other liabilities | (13,851) | 4,053 |
Net cash provided by (used for) operating activities | (41,247) | 12,448 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (1,207) | (3,316) |
Acquisition of a business, net of cash acquired | (2,500) | |
Net cash used for investing activities | (1,207) | (5,816) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings on revolving credit facilities | 36,209 | 120,858 |
Repayment of revolving credit facilities | (20,502) | (120,858) |
Proceeds from exercise of stock options and warrants | 538 | 3,262 |
Repurchase of common stock to satisfy employee tax withholding obligations | (463) | |
Net cash provided by financing activities | 16,245 | 2,799 |
Effect of exchange rate changes on cash and cash equivalents | (634) | 85 |
Net increase (decrease) in cash and cash equivalents | (26,843) | 9,516 |
Cash and cash equivalents - beginning of period | 37,720 | 46,681 |
Cash and cash equivalents - end of period | 10,877 | 56,197 |
SUPPLEMENTAL DISCLOSURE OF INFORMATION | ||
Cash paid for interest | 108 | 88 |
Cash paid (received) for income taxes | $ (2,539) | $ 8,041 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands | Total | Common stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2020 | $ 116,399 | $ 15 | $ 190,568 | $ (74,773) | $ 589 |
Beginning Balance, shares at Dec. 31, 2020 | 15,476,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 8,838 | 8,838 | |||
Other comprehensive income (loss), net of tax | (711) | (711) | |||
Issuance of restricted stock | 113 | 113 | |||
Issuance of restricted stock, shares | 26,000 | ||||
Repurchase of common stock and retirement of related treasury shares | (215) | (215) | |||
Repurchase of common stock and retirement of related treasury shares, shares | (6,000) | ||||
Stock options exercised | 912 | $ 1 | 911 | ||
Stock options exercised, shares | 159,000 | ||||
Stock-based compensation | 1,786 | 1,786 | |||
Ending Balance at Mar. 31, 2021 | 127,122 | $ 16 | 193,163 | (65,935) | (122) |
Ending Balance, shares at Mar. 31, 2021 | 15,655,000 | ||||
Beginning Balance at Dec. 31, 2020 | 116,399 | $ 15 | 190,568 | (74,773) | 589 |
Beginning Balance, shares at Dec. 31, 2020 | 15,476,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 10,559 | ||||
Other comprehensive income (loss), net of tax | 94 | ||||
Ending Balance at Jun. 30, 2021 | 133,692 | $ 16 | 197,207 | (64,214) | 683 |
Ending Balance, shares at Jun. 30, 2021 | 16,065,000 | ||||
Beginning Balance at Mar. 31, 2021 | 127,122 | $ 16 | 193,163 | (65,935) | (122) |
Beginning Balance, shares at Mar. 31, 2021 | 15,655,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 1,721 | 1,721 | |||
Other comprehensive income (loss), net of tax | 805 | 805 | |||
Issuance of restricted stock | 1 | 1 | |||
Issuance of restricted stock, shares | 202,000 | ||||
Repurchase of common stock and retirement of related treasury shares | (248) | (248) | |||
Repurchase of common stock and retirement of related treasury shares, shares | (9,000) | ||||
Stock options exercised | 2,350 | 2,350 | |||
Stock options exercised, shares | 217,000 | ||||
Stock-based compensation | 1,941 | 1,941 | |||
Ending Balance at Jun. 30, 2021 | 133,692 | $ 16 | 197,207 | (64,214) | 683 |
Ending Balance, shares at Jun. 30, 2021 | 16,065,000 | ||||
Beginning Balance at Dec. 31, 2021 | 141,369 | $ 16 | 198,278 | (57,052) | 127 |
Beginning Balance, shares at Dec. 31, 2021 | 16,168,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (6,476) | (6,476) | |||
Other comprehensive income (loss), net of tax | (429) | (429) | |||
Issuance of restricted stock, shares | 30,000 | ||||
Stock options exercised | 361 | 361 | |||
Stock options exercised, shares | 47,000 | ||||
Stock-based compensation | 1,537 | 1,537 | |||
Ending Balance at Mar. 31, 2022 | 136,362 | $ 16 | 200,176 | (63,528) | (302) |
Ending Balance, shares at Mar. 31, 2022 | 16,245,000 | ||||
Beginning Balance at Dec. 31, 2021 | 141,369 | $ 16 | 198,278 | (57,052) | 127 |
Beginning Balance, shares at Dec. 31, 2021 | 16,168,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (24,302) | ||||
Other comprehensive income (loss), net of tax | $ (1,519) | ||||
Stock options exercised, shares | 71,379 | ||||
Ending Balance at Jun. 30, 2022 | $ 119,653 | $ 17 | 202,382 | (81,354) | (1,392) |
Ending Balance, shares at Jun. 30, 2022 | 16,526,000 | ||||
Beginning Balance at Mar. 31, 2022 | 136,362 | $ 16 | 200,176 | (63,528) | (302) |
Beginning Balance, shares at Mar. 31, 2022 | 16,245,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (17,826) | (17,826) | |||
Other comprehensive income (loss), net of tax | (1,090) | (1,090) | |||
Issuance of restricted stock, shares | 257,000 | ||||
Stock options exercised | 177 | $ 1 | 176 | ||
Stock options exercised, shares | 24,000 | ||||
Stock-based compensation | 2,030 | 2,030 | |||
Ending Balance at Jun. 30, 2022 | $ 119,653 | $ 17 | $ 202,382 | $ (81,354) | $ (1,392) |
Ending Balance, shares at Jun. 30, 2022 | 16,526,000 |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Note 1. Background and Basis of Presentation Organization Turtle Beach Corporation (“Turtle Beach” or the “Company”), headquartered in White Plains, New York and incorporated in the state of Nevada in 2010, is a premier audio and gaming technology company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach®, ROCCAT® and Neat Microphones® brands. Turtle Beach is a worldwide leader of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers (“PC”), tablets and mobile devices. ROCCAT is a gaming keyboards, mice and other accessories brand focused on the PC peripherals market. Neat Microphones is a microphones brand focused on using cutting edge technology and design to create high quality USB and analog microphones for gamers, streamers, and professionals. VTB Holdings, Inc. (“VTBH”), a wholly-owned subsidiary of Turtle Beach Corporation and the owner of Voyetra Turtle Beach, Inc. (“VTB”), was incorporated in the state of Delaware in 2010. VTB, the owner of Turtle Beach Europe Limited (“TB Europe”), was incorporated in the state of Delaware in 1975 with operations principally located in White Plains, New York. Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2021 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 2, 2022 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company’s businesses and financial statement presentations. Use of estimates : The preparation of accompanying unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions 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 reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the Company’s consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company can give no assurance that actual results will not differ from those estimates. There have been no material changes to the significant accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 3. Fair Value Measurement The Company follows a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt instruments and certain warrants. As of June 30, 2022 and December 31, 2021 , the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted. The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 10,877 $ 10,877 $ 37,720 $ 37,720 Revolving credit facility $ 15,707 $ 15,707 $ — $ — Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying value of the Credit Facility equals fair value as the stated interest rate approximates market rates currently available to the Company, which is considered a Level 2 input. |
Allowance for Sales Returns
Allowance for Sales Returns | 6 Months Ended |
Jun. 30, 2022 | |
Allowance For Sales Returns [Abstract] | |
Allowance for Sales Returns | Note 4. Allowance for Sales Returns The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Balance, beginning of period $ 5,713 $ 11,910 $ 8,998 $ 11,233 Reserve accrual 2,792 4,212 5,475 9,977 Recoveries and deductions, net ( 4,499 ) ( 9,075 ) ( 10,467 ) ( 14,163 ) Balance, end of period $ 4,006 $ 7,047 $ 4,006 $ 7,047 |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 6 Months Ended |
Jun. 30, 2022 | |
Condensed Consolidated Balance Sheet Components [Abstract] | |
Composition of Certain Financial Statement Items | Note 5. Composition of Certain Financial Statement Items Inventories Inventories consist of the following: June 30, December 31, (in thousands) Finished goods $ 119,612 $ 101,446 Raw materials 1,082 487 Total inventories $ 120,694 $ 101,933 Property and Equipment, net Property and equipment, net, consists of the following: June 30, December 31, (in thousands) Machinery and equipment $ 2,383 $ 2,255 Software and software development 2,400 2,404 Furniture and fixtures 1,440 1,257 Tooling 8,494 7,855 Leasehold improvements 1,708 1,794 Demonstration units and convention booths 15,199 14,493 Total property and equipment, gross 31,624 30,058 Less: accumulated depreciation and amortization ( 25,480 ) ( 23,103 ) Total property and equipment, net $ 6,144 $ 6,955 Other Current Liabilities Other current liabilities consist of the following: June 30, December 31, (in thousands) Accrued legal 3,846 1,126 Accrued marketing 2,792 3,723 Accrued employee expenses 2,650 4,114 Accrued royalty 1,651 11,582 Accrued freight 1,819 6,251 Accrued expenses 6,698 10,897 Total other current liabilities $ 19,456 $ 37,693 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2022 and December 31, 2021 consist of: June 30, 2022 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,355 $ 6,667 $ 1,688 Tradenames 3,066 884 2,182 Developed technology 1,884 574 1,310 Foreign currency ( 1,363 ) ( 1,309 ) ( 54 ) Total Intangible Assets $ 11,942 $ 6,816 $ 5,126 December 31, 2021 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,355 $ 6,315 $ 2,040 Tradenames 3,066 730 2,336 Developed technology 1,884 440 1,444 Foreign currency ( 896 ) ( 865 ) ( 32 ) Total Intangible Assets $ 12,409 $ 6,620 $ 5,788 In connection with the October 2012 acquisition of TB Europe, the acquired intangible assets related to customer relationships is being amortized over an estimated useful life of thirteen years with the amortization being included within sales and marketing expense. In May 2019, the Company completed its acquisition of the business and assets of the ROCCAT business, and in January 2021, the Company completed its acquisition of the business and assets of the Neat Microphones business. The respective acquired intangible assets relating to developed technology, customer relationships and trade names are subject to amortization. Amortization expense related to definite lived intangible assets of $ 0.3 million and $ 0.6 million was recognized for the three and six months ended June 30, 2022, respectively, and $ 0.3 million and $ 0.6 million was recognized for the three and six months ended June 30, 2021, respectively. As of June 30, 2022, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2022 $ 638 2023 1,041 2024 1,008 2025 889 2026 637 Thereafter 967 Total $ 5,180 There were no changes in the carrying values of goodwill for the three months ended June 30, 2022 from the balance as of December 31, 2021 . |
Revolving Credit Facility and L
Revolving Credit Facility and Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Long-Term Debt | Note 7. Revolving Credit Facility and Long-Term Debt June 30, December 31, (in thousands) Revolving credit facility, maturing March 2024 $ 15,707 $ - Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2022, respectively, and $ 0.1 million and $ 0.2 million for the three and six months ended June 30, 2021, respectively. Amortization of deferred financing costs was $ 47 thousand and $ 94 thousand for the three and six months ended June 30, 2022 and $ 47 thousand and $ 95 thousand for the three and six months ended June 30, 2021, respectively. Revolving Credit Facility On December 17, 2018, Turtle Beach and certain of its subsidiaries entered into an amended and restated loan, guaranty and security agreement (“Credit Facility”) with Bank of America, N.A. (“Bank of America”), as Agent, Sole Lead Arranger and Sole Bookrunner, which replaced the then existing asset-based revolving loan agreement. The Credit Facility, which expires on March 5, 2024 , provides for a line of credit of up to $ 80 million inclusive of a sub-facility limit of $ 12 million for TB Europe, a wholly-owned subsidiary of Turtle Beach. In addition, the Credit Facility provides for a $ 40 million accordion feature and the ability to increase the borrowing base with a “first-in, last-out” loan (a “FILO Loan”) of up to $ 6.8 million. On May 31, 2019, the Company amended the Credit Facility to provide for, amongst other items, (i) the addition of TBC Holding Company LLC, a wholly-owned subsidiary of VTB, as an obligor and (ii) the ability to make investments in TB Germany GmbH, a wholly-owned subsidiary of TB Europe, of up to $ 4 million in connection with the acquisition of the business of ROCCAT and up to an additional $ 4 million annually. The maximum credit availability for loans and letters of credit under the Credit Facility is governed by a borrowing base determined by the application of specified percentages to certain eligible assets, primarily eligible trade accounts receivable and inventories, and is subject to discretionary reserves and revaluation adjustments. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes. In the second quarter of 2022, the Company accessed the Credit Facility as a result of increased inventory levels driven by global supply chain delays as well as lower retail channel inventory levels. Amounts outstanding under the Credit Facility bear interest at a rate equal to either a rate published by Bank of America or the LIBOR rate, plus in each case, an applicable margin, which is between 0.50 % to 1.25 % for base rate loans and between 1.25 % to 2.00 % for U.S. LIBOR loans and U.K. loans, and between 2.00 % to 2.75 % for the FILO Loan. In addition, Turtle Beach is required to pay a commitment fee on the unused revolving loan commitment at a rate ranging from 0.25 % to 0.50 % and letter of credit fees and agent fees. As of June 30, 2022, interest rates for outstanding borrowings were 5.25 % for base rate loans and 3.00 % for LIBOR rate loans. The Company and the administrative agent entered into an amendment to the Credit Facility (the "LIBOR Transition Amendment") to replace the LIBOR rate as a reference rate available for use in the computation of interest under the Credit Agreement in favor of (i) the Applicable Rate (as defined in the Credit Facility) plus Sterling Overnight Index Average (“SONIA”) or the Euro Interbank Offered Rate (“EURIBOR”). The Company expects to enter into an additional agreement to finalize the transition of the U.S. LIBOR rate prior its expiration on June 30, 2023. The Company is subject to quarterly financial covenant testing if certain availability thresholds are not met or certain other events occur (as set forth in the Credit Facility). At such times, the Credit Facility requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the last day of each fiscal quarter. The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including the Company’s ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and transactions with affiliates, and encumber and dispose of assets. Obligations under the Credit Facility are secured by a security interest and lien upon substantially all of the Company’s assets. As of June 30, 2022, the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $ 22.0 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8. Income Taxes In order to determine the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is based on expected annual income and statutory tax rates in the various jurisdictions. However, to the extent that application of the estimated annual effective tax rate is not representative of the quarterly portion of actual tax expense expected to be recorded for the year, the Company determines the provision for income taxes based on actual year-to-date income (loss). Certain significant or unusual items are separately recognized as discrete items in the period during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The following table presents the Company’s income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Income tax expense (benefit) $ ( 4,740 ) $ ( 1,286 ) $ ( 7,379 ) $ 1,480 Effective income tax rate 21.0 % ( 295.6 %) 23.3 % 12.3 % Income tax benefit for the three months ended June 30, 2022 was $ 4.7 million at an effective tax rate of 21.0 % and income tax benefit for the six months ended June 30, 2022 was $ 7.4 million at an effective tax rate of 23.3 % . Income tax benefit for the three months ended June 30, 2021 was $ 1.3 million at an effective tax rate of ( 295.6 %) and income tax expense for the six months ended June 30, 2021 was $ 1.5 million at an effective tax rate of 12.3 % . The effective tax rate for the three and six months ended June 30, 2022 was primarily impacted by the deduction for stock option exercises, offset by certain non-deductible costs and state income tax expense. Significant judgment is required in evaluating uncertain tax positions and determining the provision for income taxes. The Company recognizes only those tax positions that meet the more-likely-than-not recognition threshold and establishes tax reserves for uncertain tax positions that do not meet this threshold. Interest and penalties associated with income tax matters are included in the provision for income taxes in the condensed consolidated statements of operations. As of June 30, 2022, the Company had uncertain tax positions of $ 3.8 million , inclusive of $ 1.1 million of interest and penalties. The Company has determined that a valuation allowance is not needed against the deferred tax asset as of June 30, 2022, with the exception of net operating losses for certain separate state filings. This analysis is performed on a quarterly basis and includes an evaluation of all positive and negative evidence to determine whether it is more-likely-than-not that the deferred tax assets will be realizable. This is based on generating earnings and taxable income in recent years, no tax attributes on hand that are at risk of expiring in the near future nor is there any history of expiring attributes, the cyclical nature of our business, and projections of future taxable income. In the event that actual results differ from these estimates, the Company may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations. The Company is subject to income taxes domestically and in various foreign jurisdictions. The Company files U.S., state and foreign income tax returns in jurisdictions with various statutes of limitations. The federal tax years open under the statute of limitations are 2018 through 2020, and the state tax years open under the statute of limitations are 2017 through 2020. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Note 9. Stock-Based Compensation Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 96 $ 90 $ 122 $ 487 Selling and marketing 539 446 937 777 Research and development 390 348 673 597 General and administrative 1,005 1,057 1,835 1,866 Total stock-based compensation $ 2,030 $ 1,941 $ 3,567 $ 3,727 The following table presents the stock activity and the total number of shares available for grant as of June 30, 2022: (in thousands) Balance at December 31, 2021 998 Options Cancelled 31 Restricted Stock Granted ( 484 ) Restricted Stock Forfeited 28 Performance Shares Unearned 7 Performance Shares Granted ( 167 ) Balance at June 30, 2022 413 Stock Option Activity Options Outstanding Number of Weighted- Weighted- Aggregate (in years) Outstanding at December 31, 2021 1,739,240 $ 7.72 7.02 $ 25,542,823 Options Granted - - Options Exercised ( 71,379 ) 7.54 Options Forfeited ( 31,181 ) 10.28 Outstanding at June 30, 2022 1,636,680 $ 7.68 6.45 $ 8,417,740 Vested and expected to vest at June 30, 2022 1,621,925 $ 7.74 6.44 $ 8,350,391 Exercisable at June 30, 2022 1,143,564 $ 7.28 5.98 $ 6,537,350 Stock options are time-based and the majority are exercisable within 10 years of the date of grant, but only to the extent they have vested. The options generally vest as specified in the option agreements subject to acceleration in certain circumstances. In the event participants in the plan cease to be employed or engaged by the Company, all vested options would be forfeited if they are not exercised within 90 days. Forfeitures on option grants are estimated at 10 % for non-executives and 0 % for executives based on evaluation of historical and expected future turnover. Stock-based compensation expense was recorded net of estimated forfeitures, such that expense was recorded only for those stock-based awards expected to vest. The Company reviews this assumption periodically and will adjust it if it is not representative of future forfeiture data and trends within employee types (executive vs. non-executive). Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of options exercised was $ 0.8 million for the six months ended June 30, 2022. The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted as of the grant date. There were no new options granted during the six months ended June 30, 2022. The total estimated fair value of employee options vested during the six months ended June 30, 2022 was $ 3.5 million . As of June 30, 2022, total unrecognized compensation cost related to non-vested stock options granted to employees was $ 2.0 million , which is expected to be recognized over a remaining weighted average vesting period of 1.6 years. Restricted Stock Activity Shares Weighted Nonvested restricted stock at December 31, 2021 788,454 $ 16.81 Granted 483,533 21.20 Vested ( 258,399 ) 16.31 Shares forfeited ( 27,854 ) 16.58 Nonvested restricted stock at June 30, 2022 985,734 $ 19.10 As of June 30, 2022, total unrecognized compensation costs related to the nonvested restricted stock awards was $ 17.6 million , which will be recognized over a remaining weighted average vesting period of 2.5 years. Performance-Based Restricted Share Units As of June 30, 2022 , the Company had 256,342 performance-based restricted share units outstanding, including 167,000 issued in 2022. The vesting of performance-based restricted share units is determined over a three-year period based on (i) the amount by which revenue growth exceeds a defined baseline market growth each year and (ii) the achievement of specified tiers of adjusted EBITDA as a percentage of net revenue each year, with the ability to earn and vest into such units ranging from 0 % to 200 %. In 2021, 37,507 performance-based restricted share units vested related to the Company's achievement of these performance measures. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 10. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands, except per-share data) Net income (loss) $ ( 17,826 ) $ 1,721 $ ( 24,302 ) $ 10,559 Weighted average common shares outstanding — Basic 16,500 15,920 16,348 15,737 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — 421 — 469 Dilutive effect of stock options — 1,438 — 1,448 Dilutive effect of warrants — 550 — 550 Weighted average common shares outstanding — Diluted 16,500 18,329 16,348 18,204 Net income (loss) per share: Basic $ ( 1.08 ) $ 0.11 $ ( 1.49 ) $ 0.67 Diluted $ ( 1.08 ) $ 0.09 $ ( 1.49 ) $ 0.58 Incremental shares from stock options and restricted stock awards are computed using the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Stock options 1,655 77 1,672 769 Unvested restricted stock awards 963 8 915 283 Warrants 550 — 550 — Total 3,168 85 3,137 1,052 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 11. Segment Information The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) North America $ 27,384 $ 50,645 $ 58,752 $ 114,780 Europe and Middle East 9,179 19,075 21,301 45,418 Asia Pacific 4,737 8,844 7,909 11,419 Total net revenues $ 41,300 $ 78,564 $ 87,962 $ 171,617 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Litigation The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the amount of any liability that could arise with respect to these actions cannot be determined with certainty, in the Company’s opinion, any such liability will not have a material adverse effect on its consolidated financial position, consolidated results of operations or liquidity. Shareholders Class Action : On August 5, 2013, VTBH and the Company (f/k/a Parametric Sound Corporation) announced that they had entered into the Merger Agreement pursuant to which VTBH would acquire an approximately 80 % ownership interest and existing shareholders would maintain an approximately 20 % ownership interest in the combined company (the “Merger”). Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a merger that allegedly undervalued the Company. VTBH and the Company were named as defendants in these lawsuits under the theory that they had aided and abetted the Company’s Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which, by agreement, was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada case denied the plaintiffs’ motion for a preliminary injunction. Following the closing of the Merger, the Nevada plaintiffs filed a second amended complaint, which made essentially the same allegations and sought monetary damages as well as an order rescinding the Merger. The California plaintiffs dismissed their action without prejudice, and sought to intervene in the Nevada action, which was granted. Subsequent to the intervention, the plaintiffs filed a third amended complaint, which made essentially the same allegations as prior complaints and sought monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. On September 14, 2017, a unanimous en banc panel of the Nevada Supreme Court granted defendants’ petition for writ of mandamus and ordered the trial court to dismiss the complaint but provided a limited basis upon which plaintiffs could seek to amend their complaint. Plaintiffs amended their complaint on December 1, 2017 to assert the same claims in a derivative capacity on behalf of the Company, as a well as in a direct capacity, against VTBH, Stripes Group, LLC, SG VTB Holdings, LLC, and the former members of the Company’s Board of Directors. All defendants moved to dismiss this amended complaint on January 2, 2018, and those motions were denied on March 13, 2018. Defendants petitioned the Nevada Supreme Court to reverse this ruling on April 18, 2018. On June 15, 2018, the Nevada Supreme Court denied defendants’ writ petition without prejudice. The district court subsequently entered a pretrial schedule and set trial for November 2019. On January 18, 2019, the district court certified a class of shareholders of the Company as of January 15, 2014. On October 11, 2019, the parties notified the district court that they had reached a settlement that would resolve the pending action if ultimately approved by the Court. On January 13, 2020, the district court preliminarily approved the settlement between the plaintiffs and all defendants. A final hearing was held on May 18, 2020, wherein the Court approved the settlement and entered final judgment. Plantiff has filed a notice of their intent to appeal the judgment. On May 22, 2020, PAMTP LLC, which purports to hold the claims of eight shareholders who opted out of the class settlement described above, brought suit against the Company, the Company’s CEO, Juergen Stark, Stripes Group, LLC, SG VTB Holdings, LLC, Kenneth Fox, and former members of the Company’s Board of Directors in Nevada state court. This opt-out action asserts the same direct claims that were asserted by the class of shareholders described above. The defendants filed two motions to dismiss this complaint, which were heard on August 10, 2020. The Court denied those motions by order of August 20, 2020. The case was tried in August 2021 and all defendants, including the Company, prevailed on all counts with final judgment entered in their favor on September 3, 2021. Employment Litigation: On April 20, 2017, a former employee filed an action in the Superior Court for the County of San Diego, State of California. The complaint alleges claims including wrongful termination, retaliation and various other provisions of the California Labor Code. The complaint seeks unspecified economic and non-economic losses, as well as allegedly unpaid wages, unreimbursed business expenses statutory penalties, interest, punitive damages and attorneys’ fees. The Company filed a cross-complaint against the former employee on May 25, 2017 for certain activities related to his employment with the Company. The matter was tried between September 24 and October 7, 2021. On October 8, 2021 a jury rendered a unanimous verdict in favor of the Company on the employment claims. The Court granted a directed verdict to the Company on its Cross- Complaint against the former employee. Judgment was entered in favor of the Company on October 27, 2021. On December 20, 2021, the former employee filed a notice of appeal of the judgment. Intellectual Property Dispute: On November 24, 2020, ABP Technology Limited (ABP) issued a claim for trademark infringement in the High Court of England and Wales against Voyetra Turtle Beach, Inc. (“VTB”) and Turtle Beach Europe Limited (“TBEU”) relating to the use by VTB and TBEU of the sign STEALTH on and in relation to gaming headsets in the UK. VTB and TBEU filed and served a Defense to the claim on February 2, 2021. On March 31, 2021, ABP filed an application for summary judgement. The summary judgment application was heard by the Court in November 2021 and was dismissed. The next stage in the main proceedings will be a Case Management Conference on November 4, 2022 at which the Court will give directions for each stage to trial. The trial is expected to be heard in April 2023. Consumer Class Action : On June 13, 2022, an individual filed a class action lawsuit against VTB in the United States District Court for the Central District of California. The complaint alleges that VTB violated the Telephone Consumer Protection Act, 47 U.S.C. § 227(b), by sending marketing-related text messages to the plaintiff and other members of the public who have registered their telephone numbers on the national Do-Not-Call Registry. The plaintiff seeks to represent a class of all persons in the United States whose telephone numbers were present on the national Do-Not-Call Registry and received text messages from VTB within the last four years. The complaint seeks statutory damages and an order enjoining VTB from sending further text messages to telephone numbers listed on the national Do-Not-Call Registry. VTB believes that the plaintiff consented to receive marketing-related text messages from VTB and maintains that it does not contact members of the public without their consent. VTB has filed an initial response to the complaint. The court has not yet set a trial date for this matter. The Company will continue to vigorously defend itself in the foregoing unresolved matters. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. The Company has not recorded any accrual at June 30, 2022 for contingent losses associated with these matters based on its belief that losses, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The unfavorable resolution of these matters could have a material adverse effect on the Company’s business, results of operations, financial condition, or cash flows. The Company is engaged in other legal actions, not described above, arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these other legal actions will not have a material adverse effect on its business, results of operations, financial condition, or cash flows. Warranties The Company warrants its products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. Warranties are generally fulfilled by replacing defective products with new products. The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Warranty, beginning of period $ 789 $ 1,118 $ 856 $ 1,039 Warranty costs accrued 72 119 193 453 Settlements of warranty claims ( 143 ) ( 215 ) ( 331 ) ( 470 ) Warranty, end of period $ 718 $ 1,022 $ 718 $ 1,022 Operating Leases - Right of Use Assets The Company adopted ASU 2016-02, Leases , on January 1, 2019. The Company determines whether an arrangement is a lease at inception. The Company leases office spaces that provide for future minimum rental lease payments under non-cancelable operating leases that have remaining lease terms of one year to nine years , and do not contain any material residual value guarantees or material restrictive covenants. The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2022 (in thousands) Right-of-use assets Other assets $ 7,619 Lease liability obligations, current Other current liabilities $ 1,069 Lease liability obligations, noncurrent Other liabilities 7,134 Total lease liability obligations $ 8,203 Weighted-average remaining lease term (in years) 5.4 Weighted-average discount rate 5.25 % During the six months ended June 30, 2022, the Company recognized approximately $ 0.7 million of lease costs in operating expenses and approximately $ 0.5 million of operating cash flows from operating leases. Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2022, are as follows: (in thousands) 2022 $ 660 2023 1,285 2024 1,306 2025 1,293 2026 1,200 Thereafter 3,674 Total minimum payments 9,418 Less: Imputed interest ( 1,215 ) Total $ 8,203 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2021 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 2, 2022 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company’s businesses and financial statement presentations. |
Use of Estimates | Use of estimates : The preparation of accompanying unaudited consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions 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 reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following is a summary of the carrying amounts and estimated fair values of our financial instruments as of June 30, 2022 and December 31, 2021. June 30, 2022 December 31, 2021 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 10,877 $ 10,877 $ 37,720 $ 37,720 Revolving credit facility $ 15,707 $ 15,707 $ — $ — |
Allowance for Sales Returns (Ta
Allowance for Sales Returns (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Allowance For Sales Returns [Abstract] | |
Schedule of Allowances for Sales Returns | The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Balance, beginning of period $ 5,713 $ 11,910 $ 8,998 $ 11,233 Reserve accrual 2,792 4,212 5,475 9,977 Recoveries and deductions, net ( 4,499 ) ( 9,075 ) ( 10,467 ) ( 14,163 ) Balance, end of period $ 4,006 $ 7,047 $ 4,006 $ 7,047 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Items (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Condensed Consolidated Balance Sheet Components [Abstract] | |
Schedule of Inventory | Inventories consist of the following: June 30, December 31, (in thousands) Finished goods $ 119,612 $ 101,446 Raw materials 1,082 487 Total inventories $ 120,694 $ 101,933 |
Schedule of Property and Equipment | Property and equipment, net, consists of the following: June 30, December 31, (in thousands) Machinery and equipment $ 2,383 $ 2,255 Software and software development 2,400 2,404 Furniture and fixtures 1,440 1,257 Tooling 8,494 7,855 Leasehold improvements 1,708 1,794 Demonstration units and convention booths 15,199 14,493 Total property and equipment, gross 31,624 30,058 Less: accumulated depreciation and amortization ( 25,480 ) ( 23,103 ) Total property and equipment, net $ 6,144 $ 6,955 |
Other Current Liabilities | Other current liabilities consist of the following: June 30, December 31, (in thousands) Accrued legal 3,846 1,126 Accrued marketing 2,792 3,723 Accrued employee expenses 2,650 4,114 Accrued royalty 1,651 11,582 Accrued freight 1,819 6,251 Accrued expenses 6,698 10,897 Total other current liabilities $ 19,456 $ 37,693 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2022 and December 31, 2021 consist of: June 30, 2022 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,355 $ 6,667 $ 1,688 Tradenames 3,066 884 2,182 Developed technology 1,884 574 1,310 Foreign currency ( 1,363 ) ( 1,309 ) ( 54 ) Total Intangible Assets $ 11,942 $ 6,816 $ 5,126 December 31, 2021 Gross Accumulated Net Book (in thousands) Customer relationships $ 8,355 $ 6,315 $ 2,040 Tradenames 3,066 730 2,336 Developed technology 1,884 440 1,444 Foreign currency ( 896 ) ( 865 ) ( 32 ) Total Intangible Assets $ 12,409 $ 6,620 $ 5,788 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of June 30, 2022, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2022 $ 638 2023 1,041 2024 1,008 2025 889 2026 637 Thereafter 967 Total $ 5,180 |
Revolving Credit Facility and_2
Revolving Credit Facility and Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | June 30, December 31, (in thousands) Revolving credit facility, maturing March 2024 $ 15,707 $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense and Effective Income Tax Rate | The following table presents the Company’s income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Income tax expense (benefit) $ ( 4,740 ) $ ( 1,286 ) $ ( 7,379 ) $ 1,480 Effective income tax rate 21.0 % ( 295.6 %) 23.3 % 12.3 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock-based Compensation Expense | Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was as follows: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Cost of revenue $ 96 $ 90 $ 122 $ 487 Selling and marketing 539 446 937 777 Research and development 390 348 673 597 General and administrative 1,005 1,057 1,835 1,866 Total stock-based compensation $ 2,030 $ 1,941 $ 3,567 $ 3,727 |
Stock Activity and Total Number of Shares Available for Grant | The following table presents the stock activity and the total number of shares available for grant as of June 30, 2022: (in thousands) Balance at December 31, 2021 998 Options Cancelled 31 Restricted Stock Granted ( 484 ) Restricted Stock Forfeited 28 Performance Shares Unearned 7 Performance Shares Granted ( 167 ) Balance at June 30, 2022 413 |
Stock Option Activity | Options Outstanding Number of Weighted- Weighted- Aggregate (in years) Outstanding at December 31, 2021 1,739,240 $ 7.72 7.02 $ 25,542,823 Options Granted - - Options Exercised ( 71,379 ) 7.54 Options Forfeited ( 31,181 ) 10.28 Outstanding at June 30, 2022 1,636,680 $ 7.68 6.45 $ 8,417,740 Vested and expected to vest at June 30, 2022 1,621,925 $ 7.74 6.44 $ 8,350,391 Exercisable at June 30, 2022 1,143,564 $ 7.28 5.98 $ 6,537,350 |
Restricted stock awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted Stock Activity | Shares Weighted Nonvested restricted stock at December 31, 2021 788,454 $ 16.81 Granted 483,533 21.20 Vested ( 258,399 ) 16.31 Shares forfeited ( 27,854 ) 16.58 Nonvested restricted stock at June 30, 2022 985,734 $ 19.10 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (loss) per Share of Common Stock | The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands, except per-share data) Net income (loss) $ ( 17,826 ) $ 1,721 $ ( 24,302 ) $ 10,559 Weighted average common shares outstanding — Basic 16,500 15,920 16,348 15,737 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — 421 — 469 Dilutive effect of stock options — 1,438 — 1,448 Dilutive effect of warrants — 550 — 550 Weighted average common shares outstanding — Diluted 16,500 18,329 16,348 18,204 Net income (loss) per share: Basic $ ( 1.08 ) $ 0.11 $ ( 1.49 ) $ 0.67 Diluted $ ( 1.08 ) $ 0.09 $ ( 1.49 ) $ 0.58 |
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock | Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Stock options 1,655 77 1,672 769 Unvested restricted stock awards 963 8 915 283 Warrants 550 — 550 — Total 3,168 85 3,137 1,052 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Total Net Revenues | The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) North America $ 27,384 $ 50,645 $ 58,752 $ 114,780 Europe and Middle East 9,179 19,075 21,301 45,418 Asia Pacific 4,737 8,844 7,909 11,419 Total net revenues $ 41,300 $ 78,564 $ 87,962 $ 171,617 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2022 2021 2022 2021 (in thousands) Warranty, beginning of period $ 789 $ 1,118 $ 856 $ 1,039 Warranty costs accrued 72 119 193 453 Settlements of warranty claims ( 143 ) ( 215 ) ( 331 ) ( 470 ) Warranty, end of period $ 718 $ 1,022 $ 718 $ 1,022 |
Components of the Right-of-Use Assets and Lease Liabilities | The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2022 (in thousands) Right-of-use assets Other assets $ 7,619 Lease liability obligations, current Other current liabilities $ 1,069 Lease liability obligations, noncurrent Other liabilities 7,134 Total lease liability obligations $ 8,203 Weighted-average remaining lease term (in years) 5.4 Weighted-average discount rate 5.25 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2022, are as follows: (in thousands) 2022 $ 660 2023 1,285 2024 1,306 2025 1,293 2026 1,200 Thereafter 3,674 Total minimum payments 9,418 Less: Imputed interest ( 1,215 ) Total $ 8,203 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value disclosure | $ 10,877 | $ 37,720 |
Revolving credit facility, fair value disclosure | 15,707 | |
Estimate of Fair Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value disclosure | 10,877 | $ 37,720 |
Revolving credit facility, fair value disclosure | $ 15,707 |
Allowance for Sales Returns - S
Allowance for Sales Returns - Schedule of Allowances for Sales Returns (Details) - Sales Returns and Allowances - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance, beginning of period | $ 5,713 | $ 11,910 | $ 8,998 | $ 11,233 |
Reserve accrual | 2,792 | 4,212 | 5,475 | 9,977 |
Recoveries and deductions, net | (4,499) | (9,075) | (10,467) | (14,163) |
Balance, end of period | $ 4,006 | $ 7,047 | $ 4,006 | $ 7,047 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Items - Schedule of Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheet Components [Abstract] | ||
Finished goods | $ 119,612 | $ 101,446 |
Raw materials | 1,082 | 487 |
Total inventories | $ 120,694 | $ 101,933 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 31,624 | $ 30,058 |
Less: accumulated depreciation and amortization | (25,480) | (23,103) |
Total property and equipment, net | 6,144 | 6,955 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 2,383 | 2,255 |
Software and software development | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 2,400 | 2,404 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,440 | 1,257 |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 8,494 | 7,855 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,708 | 1,794 |
Demonstration units and convention booths | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 15,199 | $ 14,493 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Items - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheet Components [Abstract] | ||
Accrued legal | $ 3,846 | $ 1,126 |
Accrued marketing | 2,792 | 3,723 |
Accrued employee expenses | 2,650 | 4,114 |
Accrued royalty | 1,651 | 11,582 |
Accrued freight | 1,819 | 6,251 |
Accrued expenses | 6,698 | 10,897 |
Total other current liabilities | $ 19,456 | $ 37,693 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-lived Intangible Assets [Roll Forward] | ||
Total intangible assets, gross carrying value | $ 11,942 | $ 12,409 |
Finite-lived intangible assets, accumulated amortization | 6,816 | 6,620 |
Total intangible assets, net book value | 5,126 | 5,788 |
Total | 5,180 | |
Finite-lived intangible assets, gross carrying value | (1,363) | (896) |
Finite-lived intangible assets, accumulated amortization | (1,309) | (865) |
Total | (54) | (32) |
Customer Relationships | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite-lived intangible assets, gross carrying value | 8,355 | 8,355 |
Finite-lived intangible assets, accumulated amortization | 6,667 | 6,315 |
Total | 1,688 | 2,040 |
Trade Names | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite-lived intangible assets, gross carrying value | 3,066 | 3,066 |
Finite-lived intangible assets, accumulated amortization | 884 | 730 |
Total | 2,182 | 2,336 |
Developed Technology | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite-lived intangible assets, gross carrying value | 1,884 | 1,884 |
Finite-lived intangible assets, accumulated amortization | 574 | 440 |
Total | $ 1,310 | $ 1,444 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2012 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite Lived Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 300,000 | $ 300,000 | $ 623,000 | $ 625,000 | |
Changes in carrying values of goodwill | $ 0 | ||||
Acquisition of Lygo International Limited | Customer Relationships | |||||
Finite Lived Intangible Assets [Line Items] | |||||
Useful life | 13 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2022 | $ 638 |
2023 | 1,041 |
2024 | 1,008 |
2025 | 889 |
2026 | 637 |
Thereafter | 967 |
Total | $ 5,180 |
Revolving Credit Facility and_3
Revolving Credit Facility and Long-Term Debt - Schedule Of Debt (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Revolving Credit Facility, Maturing March 2024 | |
Debt Instrument [Line Items] | |
Revolving credit facility, maturing March 2024 | $ 15,707 |
Revolving Credit Facility and_4
Revolving Credit Facility and Long-Term Debt - Schedule Of Debt (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Debt instrument maturity term | 2024-03 |
Revolving Credit Facility and_5
Revolving Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2018 | May 31, 2019 | |
Debt Instrument [Line Items] | ||||||
Interest expense, debt | $ 100,000 | $ 100,000 | $ 200,000 | $ 200,000 | ||
Amortization of debt financing costs | $ 47,000 | $ 47,000 | $ 94,000 | $ 95,000 | ||
Revolving Credit Facility, Maturing March 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Expiration date | Mar. 05, 2024 | |||||
Maximum borrowing capacity | $ 80,000,000 | |||||
Line of credit facility, capacity available for trade purchases | 6,800,000 | |||||
Line of credit facility, capacity available for specific purpose other than for trade purchases | 40,000,000 | |||||
Debt instrument, covenant, current fixed charge ratio required, minimum | 1% | 1% | ||||
Remaining borrowing capacity | $ 22,000,000 | $ 22,000,000 | ||||
Revolving Credit Facility, Maturing March 2024 | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 5.25% | |||||
Revolving Credit Facility, Maturing March 2024 | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 3% | |||||
Revolving Credit Facility, Maturing March 2024 | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused commitment fee, percent | 0.25% | |||||
Revolving Credit Facility, Maturing March 2024 | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Revolving Credit Facility, Maturing March 2024 | Minimum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Revolving Credit Facility, Maturing March 2024 | Minimum | Adjustable Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Revolving Credit Facility, Maturing March 2024 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused commitment fee, percent | 0.50% | |||||
Revolving Credit Facility, Maturing March 2024 | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
Revolving Credit Facility, Maturing March 2024 | Maximum | London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2% | |||||
Revolving Credit Facility, Maturing March 2024 | Maximum | Adjustable Rate Loans | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Revolving Credit Facility, Maturing March 2024 | UK Borrower | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 12,000,000 | |||||
Revolving Credit Facility, Maturing March 2024 | TB Germany GmbH | Maximum | ROCCAT | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit to make investments | $ 4,000,000 | |||||
Line of credit to make additional investments | $ 4,000,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense and Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (4,740) | $ (1,286) | $ (7,379) | $ 1,480 |
Effective income tax rate | 21% | (295.60%) | 23.30% | 12.30% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (4,740) | $ (1,286) | $ (7,379) | $ 1,480 |
Effective income tax rate | 21% | (295.60%) | 23.30% | 12.30% |
Unrecognized tax benefits inclusive of interest and penalties | $ 3,800 | $ 3,800 | ||
Interest and penalties | $ 1,100 | $ 1,100 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 2,030 | $ 1,941 | $ 3,567 | $ 3,727 |
Cost of revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 96 | 90 | 122 | 487 |
Selling and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 539 | 446 | 937 | 777 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | 390 | 348 | 673 | 597 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation | $ 1,005 | $ 1,057 | $ 1,835 | $ 1,866 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Activity and Total Number of Shares Available for Grant (Details) | 6 Months Ended |
Jun. 30, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward] | |
Balance, beginning of period | 998,000 |
Options Cancelled | 31,181 |
Performance Shares Unearned | 7,000 |
Performance Shares Granted | (167,000) |
Balance, end of period | 413,000 |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward] | |
Stock Granted | (483,533) |
Stock Forfeited | 27,854 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Option Activity (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding beginning of period (in shares) | shares | 1,739,240 | |
Options 'Exercised (in shares) | shares | (71,379) | |
Options Forfeited (in shares) | shares | (31,181) | |
Outstanding end of period (in shares) | shares | 1,636,680 | 1,739,240 |
Vested and expected to vest (in shares) | shares | 1,621,925 | |
Exercisable (in shares) | shares | 1,143,564 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period (in dollars per share) | $ / shares | $ 7.72 | |
Options 'Exercised (in dollars per share) | $ / shares | 7.54 | |
Options Forfeited (in dollars per share) | $ / shares | 10.28 | |
Outstanding end of period (in dollars per share) | $ / shares | 7.68 | $ 7.72 |
Vested and expected to vest (in dollars per share) | $ / shares | 7.74 | |
Exercisable (in dollars per share) | $ / shares | $ 7.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted average remaining contractual term | 6 years 5 months 12 days | 7 years 7 days |
Vested and expected to vest, weighted average remaining contractual term | 6 years 5 months 8 days | |
Exercisable, weighted average remaining contractual term | 5 years 11 months 23 days | |
Outstanding, intrinsic value | $ | $ 8,417,740 | $ 25,542,823 |
Vested and expected to vest, intrinsic value | $ | 8,350,391 | |
Exercisable, intrinsic value | $ | $ 6,537,350 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forfeiture period after ending employment | 90 days | |
Options exercised, intrinsic value | $ 0.8 | |
Estimated grant date fair value of options vested | $ 3.5 | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award expiration period | 10 years | |
Total unrecognized compensation cost | $ 2 | |
Compensation cost not yet recognized, period for recognition | 1 year 7 months 6 days | |
Restricted Stock Awards | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total unrecognized compensation cost | $ 17.6 | |
Compensation cost not yet recognized, period for recognition | 2 years 6 months | |
Outstanding balance | 985,734 | 788,454 |
Shares issued | 483,533 | |
Shares vested | 258,399 | |
Performance Based Restricted Stock | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Outstanding balance | 256,342 | |
Shares issued | 167,000 | |
Shares vested | 37,507 | |
Vesting period | 3 years | |
Performance Based Restricted Stock | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Adjusted EBITDA percentage | 0% | |
Performance Based Restricted Stock | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Adjusted EBITDA percentage | 200% | |
Non-Executives | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forfeiture rate | 10% | |
Executive Officer | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Forfeiture rate | 0% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Outstanding beginning of period (in shares) | shares | 788,454 |
Granted (in shares) | shares | 483,533 |
Vested (in shares) | shares | (258,399) |
Forfeited (in shares) | shares | (27,854) |
Outstanding end of period (in shares) | shares | 985,734 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding beginning of period (in dollars per share) | $ / shares | $ 16.81 |
Granted (in dollars per share) | $ / shares | 21.20 |
Vested (in dollars per share) | $ / shares | 16.31 |
Forfeited (in dollars per share) | $ / shares | 16.58 |
Outstanding end of period (in dollars per share) | $ / shares | $ 19.10 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net Income (loss) per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Basic and diluted: | ||||||
Net income (loss) | $ (17,826) | $ (6,476) | $ 1,721 | $ 8,838 | $ (24,302) | $ 10,559 |
Basic: | ||||||
Weighted-average common shares outstanding, basic (in shares) | 16,500 | 15,920 | 16,348 | 15,737 | ||
Incremental Common Shares Attributable to Dilutive Effect of Restricted Stock Awards | 421 | 469 | ||||
Dilutive effect of stock options | 1,438 | 1,448 | ||||
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 550 | 550 | ||||
Diluted: | ||||||
Weighted-average common shares outstanding, diluted (in shares) | 16,500 | 18,329 | 18,204 | 16,348 | 18,204 | |
Net income (loss) per share: | ||||||
Basic (in dollars per share) | $ (1.08) | $ 0.11 | $ (1.49) | $ 0.67 | ||
Diluted (in dollars per share) | $ (1.08) | $ 0.09 | $ (1.49) | $ 0.58 |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 3,168 | 85 | 3,137 | 1,052 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 1,655 | 77 | 1,672 | 769 |
Restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 963 | 8 | 915 | 283 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 550 | 550 |
Segment Information - Schedule
Segment Information - Schedule of Total Net Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 41,300 | $ 78,564 | $ 87,962 | $ 171,617 |
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | 27,384 | 50,645 | 58,752 | 114,780 |
Europe and Middle East | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | 9,179 | 19,075 | 21,301 | 45,418 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 4,737 | $ 8,844 | $ 7,909 | $ 11,419 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Aug. 10, 2020 Motion | May 22, 2020 Claim | Aug. 05, 2013 | |
Operating Leased Assets [Line Items] | ||||
Number of shareholder claims | Claim | 8 | |||
Number of motions | Motion | 2 | |||
Operating lease, expense | $ 0.7 | |||
Operating lease, payments | $ 0.5 | |||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease remaining lease term | 1 year | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease remaining lease term | 9 years | |||
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | VTB Holdings, Inc | ||||
Operating Leased Assets [Line Items] | ||||
Ownership percentage | 80% | |||
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Parametric Sound Corporation | ||||
Operating Leased Assets [Line Items] | ||||
Ownership percentage | 20% |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty, beginning of period | $ 789 | $ 1,118 | $ 856 | $ 1,039 |
Warranty costs accrued | 72 | 119 | 193 | 453 |
Settlements of warranty claims | (143) | (215) | (331) | (470) |
Warranty, end of period | $ 718 | $ 1,022 | $ 718 | $ 1,022 |
Commitments and Contingencies_3
Commitments and Contingencies - Components of the Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
Right-of-use assets | $ 7,619 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
Lease liability obligations, current | $ 1,069 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities |
Lease liability obligations, noncurrent | $ 7,134 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities |
Total lease liability obligations | $ 8,203 |
Weighted-average remaining lease term (in years) | 5 years 4 months 24 days |
Weighted Average | |
Lessee, Lease, Description [Line Items] | |
Weighted-average discount rate | 5.25% |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 660 |
2023 | 1,285 |
2024 | 1,306 |
2025 | 1,293 |
2026 | 1,200 |
Thereafter | 3,674 |
Total minimum payments | 9,418 |
Less: Imputed interest | (1,215) |
Total | $ 8,203 |