Turtle Beach (TBCH) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document And Entity Information
Entity Registrant Name	Turtle Beach Corporation
Entity Central Index Key	1,493,761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		49,229,502

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 3,228	$ 7,114
Accounts receivable, net	15,813	57,192
Inventories	25,838	26,146
Prepaid income taxes	260	260
Prepaid expenses and other current assets	4,906	4,191
Total Current Assets	50,045	94,903
Property and equipment, net	6,394	6,859
Goodwill	31,152	31,152
Intangible assets, net	36,790	37,956
Other assets	1,715	1,590
Total Assets	126,096	172,460
Current Liabilities:
Revolving credit facilities	533	32,453
Term loan	4,814	4,814
Accounts payable	12,535	17,680
Other current liabilities	10,084	14,236
Total Current Liabilities	27,966	69,183
Loans Payable, Noncurrent	11,076	12,174
Series B redeemable preferred stock	16,468	16,145
Deferred income taxes	4	4
Subordinated Long-term Debt, Noncurrent	15,962	15,365
Other liabilities	2,884	2,937
Total Liabilities	74,360	115,808
Stockholders' Equity
Common stock, $0.001 par value - 100,000,000 and 50,000,000 shares authorized; 49,229,502 and 42,529,502 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	49	43
Additional paid-in capital	143,803	136,693
Retained earnings (accumulated deficit)	(91,629)	(79,618)
Accumulated other comprehensive loss	(487)	(466)
Total Stockholders' Equity	51,736	56,652
Total Liabilities and Stockholders' Equity	$ 126,096	$ 172,460

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Stockholders' Equity
Preferred stock par value (in dollars per share)	$ 0	$ 0
Preferred stock shares authorized	0	0
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	100,000,000	50,000,000
Common stock shares issued	42,437,116	42,027,991
Common stock shares outstanding	42,437,116	42,027,991

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net Revenue	$ 24,028	$ 19,689
Cost of Revenue	20,666	16,573
Gross Profit	3,362	3,116
Operating expenses:
Selling and marketing	5,600	7,746
Research and development	2,024	2,854
General and administrative	5,283	4,740
Restructuring Charges	225	325
Total operating expenses	13,132	15,665
Operating loss	(9,770)	(12,549)
Interest expense	1,779	784
Other non-operating expense, net	365	628
Loss before income tax expense (benefit)	(11,914)	(13,961)
Income tax expense (benefit)	97	(3,368)
Net loss	$ (12,011)	$ (10,593)
Net loss per share:
Basic (in dollars per share)	$ (0.26)	$ (0.25)
Diluted (in dollars per share)	$ (0.26)	$ (0.25)
Weighted average number of shares:
Basic (in shares)	46,624	42,039
Diluted (in shares)	46,624	42,039

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (12,011)	$ (10,593)
Foreign currency translation adjustment	(21)	(327)
Other comprehensive loss	(21)	(327)
Comprehensive loss	$ (12,032)	$ (10,920)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (12,011)	$ (10,593)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	1,260	1,585
Amortization of intangible assets	1,229	222
Amortization of debt financing costs	324	49
Stock-based compensation	1,127	1,325
Accrued interest on Series B redeemable preferred stock	323	296
Paid in kind interest	515	0
Deferred income taxes	0	(3,414)
Reversal of sales returns reserve	(2,741)	(2,976)
Reversal of doubtful accounts	(90)	(55)
Provision for obsolete inventory	699	699
Changes in operating assets and liabilities:
Accounts receivable	44,210	48,642
Inventories	(391)	1,500
Accounts payable	(4,628)	(14,212)
Prepaid expenses and other assets	(405)	(360)
Income taxes payable	5	65
Other liabilities	(4,429)	(5,097)
Net cash provided by operating activities	24,997	17,676
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(1,311)	(2,007)
Net cash used for investing activities	(1,311)	(2,007)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	49,854	46,328
Repayment of revolving credit facilities	(81,774)	(67,652)
Repayment of capital leases	(3)	(10)
Repayment of term loan	(1,203)	0
Proceeds from Issuance of Common Stock	5,989	0
Proceeds from exercise of stock options	0	146
Debt financing costs	(574)	(75)
Net cash used for financing activities	(27,711)	(21,263)
Effect of exchange rate changes on cash and cash equivalents	139	(173)
Net decrease in cash and cash equivalents	(3,886)	(5,767)
Cash and cash equivalents, beginning of period	7,114	7,908
Cash and cash equivalents, end of period	3,228	2,141
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	568	299
Cash paid for income taxes	$ 0	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statement of Stockholders' Equity Statement - 3 months ended Mar. 31, 2016 - USD ($) $ in Thousands	Total	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance, shares at Dec. 31, 2015		42,530,000
Beginning balance at Dec. 31, 2015	$ 56,652	$ 43	$ 136,693	$ (79,618)	$ (466)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(12,011)			(12,011)
Other comprehensive income	(21)				(21)
Stock Issued During Period, Shares, New Issues		6,700,000
Stock Issued During Period, Value, New Issues	$ 5,989	$ 6	5,983
Stock options exercised and related tax activity, shares	0
Share-based compensation	$ 1,127		1,127
Ending balance, shares at Mar. 31, 2016		49,230,000
Ending balance at Mar. 31, 2016	$ 51,736	$ 49	$ 143,803	$ (91,629)	$ (487)

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Background and Basis of Presentation	Background and Basis of Presentation Organization Turtle Beach Corporation (“Turtle Beach” or the “Company”), headquartered in San Diego, California and incorporated in the state of Nevada in 2010, is a premier audio technology company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach® and HyperSound® brands. Turtle Beach is a worldwide leading provider of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices. HyperSound technology is an innovative patent-protected sound technology that delivers immersive, directional audio offering unique potential benefits in a variety of commercial settings and consumer devices, including improved clarity and comprehension for listeners with hearing loss with the HyperSound Clear™ 500P product. VTB Holdings, Inc. (“VTBH”), the parent holding company of the historical business of the headset business, was incorporated in the state of Delaware in 2010 with operations principally located in Valhalla, New York. Voyetra Turtle Beach, Inc. (“VTB”) was incorporated in the state of Delaware in 1975. In October 2012, VTB acquired Lygo International Limited (“Lygo”), a private limited company organized under the laws of England and Wales, which was subsequently renamed Turtle Beach Europe Limited (“TB Europe”). 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. We believe 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, 2015 Condensed Consolidated Balance Sheet has been derived from the Company's most recent audited financial statements included in its Annual Report on Form 10-K. These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 30, 2016 (“Annual Report”) that contains information useful to understanding the Company's businesses and financial statement presentations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The preparation of consolidated annual and quarterly financial statements in conformity with generally accepted accounting principles 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 our 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 critical accounting policies and estimates from the information provided in Note 1 of the notes to our consolidated financial statements in our Annual Report. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB agreed to a one-year deferral of the effective date to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods, but will permit public business entities to adopt the standard as of the original effective date (annual reporting periods beginning after December 15, 2016). The Company is currently evaluating the impact, if any, this new standard will have on its consolidated financial statements and has not yet determined the method of adoption. In April 2015, the FASB issued ASU No. 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. ASU 2015-15 further clarified that debt issuance costs related to line-of-credit arrangements may continue to be presented as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendment is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods with early adoption permitted. The Company adopted this guidance on a retrospective basis as required and as such reclassified $1.4 millio n of deferred financing fees from “Other Assets” to “Term Loan, long term portion” on the Condensed Consolidated Balance Sheet at December 31, 2015. Refer to Note 8 , “Credit Facilities and Long-Term Debt” for further information. In February 2016, the FASB issued ASU No. 2016-02, Leases , that introduces the recognition of a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). The guidance will be effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company has not yet selected a transition method or determined the effect on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation , which modifies current guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. This amendment also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently evaluating the impact, if any, this new standard will have on its consolidated financial statements.

Equity Offering

Equity Offering	3 Months Ended
	Mar. 31, 2016
Equity Offering [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	Equity Offering and Private Placement On February 2, 2016, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Oppenheimer & Co. Inc., as representative of the several other underwriters named therein, relating to an underwritten public offering (the “Offering”) of 5,000,000 shares of our common stock, at a price to the public of $1.00 per share (the “Offering Price”). Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock at the Offering Price less the underwriting discount and estimated offering expenses payable by the Company, which was not exercised. In addition, on February 1, 2016, the Company entered into a separate, concurrent, side-by-side private placement of 1,700,000 shares of its common stock at a price of $1.00 per share. The Company received net proceeds from the Offering and a side by side private placement of approximately $6.0 million after deducting the underwriting discount and offering expenses of $0.7 million . The Company used all net proceeds from the Offering to pay down amounts outstanding under its working capital line of credit, which is consistent with past practice and required under the terms of our Credit Facility and Term Loan Due 2019.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurement	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 and certain debt instruments. As of March 31, 2016 and December 31, 2015 , there were no outstanding financial assets and liabilities recorded at fair value on a recurring basis and 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 at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 3,228 $ 3,228 $ 7,114 $ 7,114 Credit Facility 533 533 32,453 32,453 Term Loans 17,176 17,113 18,379 18,179 Subordinated Debt 17,762 16,611 17,247 15,892 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 Credit Facility and Term Loan Due 2018 carrying value equals fair value as the stated interest rate approximates market rates currently available to the Company, which are considered Level 2 inputs. The fair values of our Term Loan Due 2019 and Subordinated Debt are based upon an estimated market value calculation that factors principal, time to maturity, interest rate and current cost of debt, which is considered a Level 3 input.

Allowance for Sales Return

Allowance for Sales Return	3 Months Ended
	Mar. 31, 2016
Allowance for Sales Returns [Abstract]
Allowance for Sales Returns	Allowance for Sales Returns The following tables provide the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended March 31, 2016 2015 (in thousands) Balance, beginning of period $ 6,268 $ 4,155 Reserve accrual 2,133 1,666 Recoveries and deductions, net (4,874 ) (4,642 ) Balance, end of period $ 3,527 $ 1,179

Composition of Certain Financia

Composition of Certain Financial Statement Items	3 Months Ended
	Mar. 31, 2016
Condensed Consolidated Balance Sheet Components [Abstract]
Composition of Certain Financial Statement Items	Composition of Certain Financial Statement Items Inventories Inventories consist of the following: March 31, 2016 December 31, 2015 (in thousands) Raw materials $ 1,511 $ 1,481 Finished goods 24,327 24,665 Total inventories $ 25,838 $ 26,146 Property and Equipment, net Property and equipment, net, consists of the following: March 31, 2016 December 31, 2015 (in thousands) Machinery and equipment $ 1,335 $ 1,238 Software and software development 411 1,022 Furniture and fixtures 268 284 Tooling 2,048 3,395 Leasehold improvements 1,253 1,255 Demonstration units and convention booths 6,601 16,531 Total property and equipment, gross 11,916 23,725 Less: accumulated depreciation and amortization (5,522 ) (16,866 ) Total property and equipment, net $ 6,394 $ 6,859

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets At acquisition, the Company estimates and records the fair value of purchased intangible assets. The fair values of these intangible assets are estimated based on our assessment. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives. We assess the impairment of long‑lived assets, intangibles assets and goodwill whenever events or changes in circumstances indicate that full recoverability of net asset balances through future cash flows is in question. Goodwill and indefinite-lived intangible assets are assessed at least annually, but also whenever events or changes in circumstances indicate the carrying values may not be recoverable. Factors that could trigger an impairment review include: (a) significant underperformance relative to historical or projected future operating results; (b) significant changes in the manner of use of the acquired assets or the strategy for our overall business; (c) significant negative industry or economic trends; (d) significant decline in our stock price for a sustained period; and (e) a decline in our market capitalization below net book value. No impairment indicators were noted in the first quarter of 2016 which would trigger the need for testing for both definite and indefinite lived assets. Management's forecasts of planned revenue are largely dependent on the market acceptance and continued channel expansion of the Company's recently launched HyperSound Clear™ 500P product to generate the projected revenue in subsequent years. If the performance of the Company's HyperSound Clear 500P product in the hearing healthcare market does not meet expectations based on initial market data, a future impairment charge could result for a portion or all of the remaining goodwill. The amount of any impairment is dependent on the performance of the business which is dependent upon a number of variables which cannot be predicted with certainty. Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2016 and December 31, 2015 consist of: March 31, 2016 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 3,377 $ 2,419 Non-compete agreements 177 177 — In-process Research and Development 27,100 2,037 25,063 Developed technology 8,880 268 8,612 Trade names 170 75 95 Patent and trademarks 864 46 818 Foreign Currency $ (598 ) $ (381 ) $ (217 ) Total Intangible Assets $ 42,389 $ 5,599 $ 36,790 December 31, 2015 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 3,213 $ 2,583 Non-compete agreements 177 177 — In-process Research and Development 27,100 1,018 26,082 Developed technology 8,880 225 8,655 Trade names 170 67 103 Patent and trademarks 730 37 693 Foreign Currency $ (463 ) $ (303 ) $ (160 ) Total Intangible Assets $ 42,390 $ 4,434 $ 37,956 In October 2012, VTB acquired Lygo International Limited, subsequently renamed TB Europe Ltd. The acquired intangible assets relating to customer relationships and non-compete agreements are being amortized over an estimated useful life of thirteen years and two years, respectively, with the amortization being included within sales and marketing expense. In January 2014, the merger between VTBH and Turtle Beach (f/k/a Parametric Sound Corporation) was completed. The acquired intangible assets relating to developed technology, customer relationships and trade name are subject to amortization. Developed technology is being amortized over an estimated economic useful life of approximately seven years with the amortization being included within cost of revenue. Customer relationships and trade name are being amortized over an estimated useful life of two years and five years, respectively, with the amortization being included within sales and marketing expense. In-process Research and Development (“IPR&D”) was considered an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. In October 2015, the purchased in-process technology for research projects, primarily related to directed audio solutions that beam sound to a specific listening area without the ambient noise of traditional speakers, reached technological feasibility and was reclassified as an amortizable finite-lived asset and is being amortized over an estimated useful life of approximately eight years with the amortization being included within cost of revenue. Amortization expense related to definite lived intangible assets of $1.2 million and $0.2 million was recognized in the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016 , estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2016 $ 7,160 2017 6,526 2018 6,024 2019 5,601 2020 4,907 Thereafter 6,789 Total $ 37,007 Goodwill Changes in the carrying values of goodwill for the three months ended March 31, 2016 are as follows: (in thousands) Balance as of January 1, 2016 $ 31,152 — Balance as of March 31, 2016 $ 31,152

Credit Facilities and Long-Term

Credit Facilities and Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Credit Facilities and Long-Term Debt	Credit Facilities and Long-Term Debt March 31, 2016 December 31, 2015 (in thousands) Revolving credit facility, maturing March 2019 $ 533 $ 32,453 Term Loan Due 2018 5,128 5,769 Term Loan Due 2019 12,048 12,610 Less unamortized deferred financing fees 1,286 1,391 Total Term Loans 15,890 16,988 Subordinated notes 17,762 17,247 Less unamortized debt discount 1,800 1,882 Total Subordinated notes 15,962 15,365 Total outstanding debt 32,385 64,806 Less: current portion of revolving line of credit (533 ) (32,453 ) Less: current portion of term loans (4,814 ) (4,814 ) Total noncurrent portion of long-term debt $ 27,038 $ 27,539 Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $1.3 million and $0.4 million for the three months ended March 31, 2016 and 2015 , respectively. Amortization of deferred financing costs was $0.3 million for the three months ended March 31, 2016 and $49.0 thousand for the three months ended March 31, 2015 . Revolving Credit Facility On March 31, 2014, Turtle Beach and certain of its subsidiaries entered into a new asset-based revolving credit 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 loan and security agreement. The Credit Facility, which expires on March 31, 2019 , provides for a line of credit of up to $60 million inclusive of a sub-facility limit of $10 million for TB Europe, a wholly owned subsidiary of Turtle Beach. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes. 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. 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 1.00% to 1.50% for U.S. base rate loans and between 2.00% to 2.50% for U.S. LIBOR loans and U.K. loans. As of March 31, 2016 , interest rates for outstanding borrowings were 5.00% for base rate loans and approximately 2.92% for LIBOR rate loans. 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. If certain availability thresholds are not met, meaning that the Company does not have receivables and inventory which are eligible to borrow on under the Credit Facility in excess of amounts borrowed, the Credit Facility requi res the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio. The fixed charge ratio is defined as the ratio, determined on a consolidated basis for the most recent four fiscal quarters, of (a) EBITDA minus capital expenditures, excluding those financed through other instruments, and cash taxes paid, and (b) Fixed Charges defined as the sum of cash interest expense plus scheduled principal payments. The current fixed charge coverage ratio of at least 1.15 to 1.00 on the last day of each month while a Covenant Trigger Period (as defined in the Credit Facility) is in effect will become effective again after the Company has complied with such ratio for six consecutive months. The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including our 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. On November 2, 2015, the Company entered into a sixth amendment (the “Sixth Amendment”) to the Credit Facility pursuant to which Bank of America and the lenders amended certain provisions of the Credit Facility to, among other things, modify certain provisions to provide (i) that the Company will make certain periodic reports with respect to certain financial metrics and (ii) that the loan availability is decreased by an additional block. On December 1, 2015, in connection with the sixth amendment, the Company amended the definition of EBITDA to exclude certain non-recurring expenses and replaced certain financial covenants by amended EBITDA levels each month beginning with the month ended December 31, 2015 through (and including) the month ending March 31, 2017 (with revised financial covenants to be agreed upon based on new financial projections after such date) on both an overall and segment-by-segment basis. On February 1, 2016, the Company further amended certain provisions of the Credit Facility to, among other things, provide that, on or prior to February 5, 2016, the Company receive net proceeds of not less than $6.0 million of additional equity capital or additional third lien debt financing and apply such proceeds against the outstanding principal balance of the working capital line of credit, amend the definition of EBITDA to exclude certain non-recurring expenses and replace certain financial covenants by amended EBITDA levels. The Company satisfied its paydown obligation with the proceeds from the Offering and private placement. Refer to Note 3 , “Equity Offering and Private Placement,” for further details. As of March 31, 2016 , the Company was in compliance with all the amended financial covenants, and excess borrowing availability was approximately $3.1 million , net of the outstanding Term Loan Due 2018 (as defined below) that is considered to be an additional outstanding amount under the Credit Facility. Term Loans Term Loan Due 2018 On December 29, 2014, the Company amended the Credit Facility (the “December Amendment”) to permit the repayment of $7.7 million of then existing subordinated debt and accrued interest with the proceeds of an additional loan (the “Term Loan Due 2018”). The Term Loan Due 2018 resulted in modified financial covenants while it is outstanding, will bear interest at a rate of LIBOR for the applicable interest period plus 5% and will be repaid in equal monthly installments beginning on April 1, 2015 and ending on April 1, 2018. Amounts so repaid are recognized by lowering the balance of the term loan tranche and increasing the lower interest rate base revolver amount, with no net impact on borrowing availability. Term Loan Due 2019 On July 22, 2015, the Company and its subsidiaries, entered into a term loan, guaranty and security agreement (the “Term Loan Due 2019”) with Crystal Financial LLC, as agent, sole lead arranger and sole bookrunner, Crystal Financial SPV LLC and the other persons party thereto (“Crystal”), which provides for an aggregate term loan commitment of $15 million that bears interest at a rate per annum equal to the 90-day LIBOR rate plus 10.25% . Under the terms of the Term Loan Due 2019, the Company is required to make payments of interest in arrears on the first day of each month beginning August 1, 2015 and will repay the principal in monthly payments beginning January 1, 2016, with a final payment on June 28, 2019 , the maturity date. The Term Loan Due 2019 is secured by a security interest in substantially all of the Company and each of its subsidiaries' working capital assets and is subject to the first-priority lien of Bank of America, as agent, under the Credit Facility, other than with respect to equipment, fixtures, real property interests, intellectual property, intercompany property, intercompany indebtedness, equity interest in their subsidiaries, and certain other assets specified in an inter-creditor agreement between Bank of America and Crystal. The Company and its subsidiaries are required to comply with various customary covenants including, (i) maintaining minimum EBITDA and Headset EBITDA (each as defined in the Term Loan Due 2019) in each trailing twelve month period beginning August 31, 2015, (ii) maintaining a Consolidated Leverage Ratio (as defined in the Term Loan Due 2019) to be measured on the last day of each month while the term loans are outstanding of no more than 5.75 :1 beginning December 31, 2015 with periodic step-downs to 3.00 :1 on January 31, 2017, (iii) not making capital expenditures in excess of $11 million in the year ending December 31, 2015 and in excess of $7 million in each of the years ending December 31, 2016, 2017, 2018 and 2019, (iv) restrictions on the Company’s and its subsidiaries ability to prepay its subordinated notes, pay dividends, incur debt, create or suffer liens and engage in certain fundamental transactions and (v) an obligation to provide certain financial and other information. The agreement permits certain equity holders of the Company to contribute funds to the Company to cure certain financial covenant defaults. In connection with certain amendments, the testing of the consolidated leverage ratio covenants has been suspended through April 2017. The Term Loan Due 2019 contains customary representations, mandatory prepayment events and events of default, including defaults triggered by the failure to make payments when due, breaches of covenants and representations, material impairment in the perfection of Crystal’s security interest in the collateral and events related to bankruptcy and insolvency of the Company and its subsidiaries. Upon an event of default, Crystal may declare all outstanding obligations immediately due and payable (along with a prepayment fee), a default rate of an additional 2.0% may be applied to amounts outstanding and may take other actions including collecting or taking such other action with respect to the collateral pledged in connection with the term loan. On February 1, 2016, the Company entered into a third amendment (the “Term Loan Amendment”) to the Term Loan Due 2019 to, among other things, amend the definition of EBITDA to exclude certain non-recurring expenses and replace certain financial covenants by amended EBITDA levels each month beginning with the month ended December 31, 2015 and on a trailing twelve-month period basis beginning with the period ending October 31, 2016, through the termination date on both an overall and segment-by-segment basis. As of March 31, 2016 , the Company was in compliance with all the amended financial covenants. Subordination Agreement On November 16, 2015, as a condition precedent to the Company's lenders permitting the Company to enter into certain subordinated notes, the Company entered into a subordination agreement with and between Bank of America and Crystal, pursuant to which the parties agreed that the Company's obligations under any such notes would be subordinate in right of payment to the payment in full of all the Company’s obligations under the Credit Facility and Term Loan Due 2019. Subordinated Notes - Related Party O n April 23, 2015, the Company issued a $5.0 million subordinated note (the “April Note”) to SG VTB Holdings, LLC, the Company’s largest stockholder (“SG VTB”). The April Note was issued with an interest rate of (i) 10% per annum for the first year and (ii) 20% per annum for all periods thereafter, with interest accruing and being added to the principal amount of the note quarterly. On May 13, 2015, the Company issued subordinated notes (the “May Notes”) with an aggregate principal amount of $3.8 million to SG VTB, and a trust affiliated with Ronald Doornink, the Chairman of the Company's board of directors (the “Board”). The May Notes were issued with an interest rate of 10% per annum until the maturity date of the May Notes (which was August 13, 2015 but could be extended up to two additional 90 day periods upon the written agreement of the Company and the noteholder), with interest accruing and being added to the principal amount of the May Notes quarterly. Following the maturity date, the interest rate would have increased to 20% per annum. On June 17, 2015, the Company issued a subordinated note (the “June Note”) with an aggregate principal amount of $3.0 million to SG VTB. The June Note was issued at an interest rate of 10% per annum until the maturity date of the June Note (which was September 17, 2015 but could be extended up to two additional 90 day periods upon the written agreement of the Company and the noteholder), with interest accruing and being added to the principal amount of the June Note quarterly. Following the maturity date, the interest rate would have increased to 20% per annum. In addition, the Company had the option to request that SG VTB make, in SG VTB’s sole discretion, additional advances from time to time up to an aggregate principal amount of $15.0 million . Prior to the amendment (see below), following an additional advance of $6.0 million on July 8, 2015, $9.0 million was outstanding under the June Note. Concurrently with the completion of the Term Loan Due 2019, the Company amended and restated each of its outstanding subordinated notes (the “Amended Notes”). The obligations of the Company under the Amended Notes are subordinate and junior to the prior payment of amounts due under the Credit Facility and Term Loan Due 2019. In addition, the stated maturity date of the Amended Notes was extended to September 29, 2019 , subject to acceleration in certain circumstances, such as a change of control of the Company. The Amended Notes bear interest at a rate per annum equal to LIBOR plus 10.5% and shall be paid-in-kind by adding the amount to the principal amount due. Further, as consideration for the concessions in the Amended Notes, the Company issued warrants to purchase 1.7 million of the Company’s common stock at an exercise price of $2.54 per share. On November 16, 2015, the Company issued a $2.5 million subordinated note (the “November Note”) to SG VTB, the proceeds of which, as set forth in the amendment to the Term Loan Due 2019, were applied against the outstanding balance of the Term Loan Due 2019. The November Note will bear interest at a rate of 15% per annum until its maturity date, which is September 29, 2019 , and is subordinated to all senior debt of the Company. In consideration of the credit extended under the November Note, VTB and VTBH entered into a Third Lien Continuing Guaranty, (as amended, the “Third Lien Guaranty”), under which they guarantee and promise to pay to Stripes, any and all obligations of the Company under the November Note. To secure our obligations under the November Note and the Third Lien Guaranty, the Company entered into a Third Lien Security Agreement, dated as of November 16, 2015, pursuant to which Stripes was granted a security interest upon all property of the VTB and VTBH until the payment in full of the Subordinated Note or the release of the guarantee or collateral, as applicable. Concurrent with entering into the November Note and Third Lien Guaranty, the Company also issued to SG VTB a warrant to purchase 1.4 million shares of the Company’s common stock at an exercise price of $2.00 per share. SG VTB is an affiliate of Stripes Group LLC (“Stripes”), a private equity firm focused on internet, software, healthcare IT and branded consumer products businesses. Kenneth A. Fox, one of our directors, is the managing general partner of Stripes and the sole manager of SG VTB and Ronald Doornink, our Chairman of the Board, is an operating partner of Stripes.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes In order to determine the quarterly provision for income taxes, we use an estimated annual effective tax rate (“ETR”), 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, we determine the quarterly 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 quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. As a result of cumulative losses in recent years primarily due to incremental costs associated with the console transition, acquisition costs and initial investments in the HyperSound business, the Company concluded that a full valuation allowance is required on its net deferred tax assets. The following table presents our income tax expense (benefit) and effective income tax rate: Three Months Ended March 31, 2016 2015 (in thousands) Income tax expense (benefit) $ 97 $ (3,368 ) Effective income tax rate (0.8 )% 24.1 % Income tax expense for the three months ended March 31, 2016 was $0.1 million at an effective tax rate of (0.8)% . The effective tax rate was primarily impacted by certain minimum state tax payments and the full valuation allowance. Income tax benefit for the three months ended March 31, 2015 was $3.4 million at an effective tax rate of 24.1% . The effective tax rate was impacted by differences in book and tax treatment of transaction costs, interest on the Series B Redeemable Preferred Stock and other non-deductible expenses. At December 31, 2015 , the Company had $44.6 million of net operating loss carryforwards and $20.6 million of state net operating loss carryforwards, which will begin to expire in 2029. An ownership change occurred on January 15, 2014 as a result of the Merger, and $12.7 million of federal net operating losses included in the above are pre-change losses subject to Section 382. Based on the estimated Section 382 limitation and the net operating loss carryforward period, the Company believes that the pre-ownership change net operating losses can be fully utilized in future years if there is sufficient taxable income in such carryforward period. The Company is subject to income taxes domestically and in various foreign jurisdictions. Significant judgment is required in evaluating uncertain tax positions and determining its 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 statement of operations. As of March 31, 2016 , the Company had uncertain tax positions of $2.3 million , inclusive of $0.8 million of interest and penalties. 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 2012 through 2014, and the state tax years open under the statute of limitations are 2011 through 2014.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	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 comprised as follows: Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenue $ 121 $ 218 Selling and marketing 21 144 Research and development 144 205 General and administrative 841 758 Total stock-based compensation $ 1,127 $ 1,325 The following table presents the stock activity and the total number of shares available for grant as of March 31, 2016 : (in thousands) Balance at December 31, 2015 3,258 Options granted (41 ) Forfeited/Expired shares added back 425 Balance at March 31, 2016 3,642 Stock Option Activity Options Outstanding Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding at December 31, 2015 5,613,384 2.19 7.89 628,833 Granted 40,500 1.58 Exercised — — Forfeited (424,431 ) 2.60 Outstanding at March 31, 2016 5,229,453 2.15 7.58 720 Vested and expected to vest at March 31, 2016 5,052,493 2.19 7.53 583 Exercisable at March 31, 2016 2,414,579 2.25 6.33 — 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, in some instances, to acceleration in certain circumstances. In the event participants in the 2013 Plan cease to be employed or engaged by the Company, then all of the 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. There were no option exercises during the three months ended March 31, 2016 . The Company uses the Black-Scholes option-pricing model to estimate the fair value of options granted as of the grant date. The following are assumptions for the three months ended March 31, 2016 . Expected term (in years) 6.1 Risk-free interest rate 1.4% - 1.9% Expected volatility 40.7% - 42.2% Dividend rate 0% Each of these inputs is subjective and generally requires significant judgment to determine. The weighted average grant date fair value of options granted during the three months ended March 31, 2016 was $0.66 . The total estimated fair value of employee options vested during the three months ended March 31, 2016 was $0.5 million . As of March 31, 2016 , total unrecognized compensation cost related to non-vested stock options granted to employees was $5.8 million , which is expected to be recognized over a remaining weighted average vesting period of 2.7 years . Restricted Stock Activity Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2015 71,898 $ 3.48 Granted — — Nonvested restricted stock at March 31, 2016 71,898 3.48 As of March 31, 2016 , total unrecognized compensation cost related to the nonvested restricted stock awards granted was $0.1 million , which is expected to be recognized over a remaining weighted average vesting period of 1.8 years . Stock Warrants In connection with and as consideration for the concessions in the Amended Notes, the Company issued to SG VTB and a trust affiliated with Ronald Doornink warrants to purchase 1.7 million shares of the Company’s common stock at an exercise price of $2.54 per share. The warrants are exercisable for a period of five years beginning on the date of issuance, July 22, 2015. The exercise price and the number of shares of Common Stock purchasable are subject to adjustment and do not carry any voting rights or other rights as a stockholder of the Company prior to exercise. The shares issuable upon exercise are also subject to the “demand” and “piggyback” registration rights set forth in the in the Company’s Stockholder Agreement, dated August 5, 2013, as amended July 10, 2014. In connection with the November Note, the Company issued a warrant to purchase 1.4 million shares of the Company’s common stock at an exercise price of $2.00 per share to SG VTB. The exercise price and the number of shares are subject to standard anti-dilution adjustments and do not carry any voting rights as a stockholder of the Company prior to exercise. The warrant is exercisable for a period of ten years beginning on the date of issuance and does not entitle the holder to any voting rights or other rights as a stockholder of the Company prior to exercise. The warrants meet the requirements for classification within equity as warrants entitle the holder to purchase a stated amount of shares of common stock at a fixed exercise price that are not puttable (either the warrant or the shares) to the Company or redeemable for cash. Series B Redeemable Preferred Stock In September 2010, VTBH issued 1,000,000 shares of its Series B Redeemable Preferred Stock with a fair value of $12.4 million . The Series B Redeemable Preferred Stock is required to be redeemed on the earlier of September 28, 2030, or the occurrence of a liquidation event at its original issue price of $12.425371 per share plus any accrued but unpaid dividends. The redemption value was $16.5 million and $16.1 million as of March 31, 2016 and December 31, 2014, respectively. On February 18, 2015, the holder of the Series B Redeemable Preferred Stock, filed a complaint in Delaware Chancery Court alleging breach of contract against VTBH. According to the complaint, the Merger purportedly triggered a contractual obligation for VTBH to redeem the stock. Refer to Note 13 , “Commitments and Contingencies” for further information. Phantom Equity Activity In November 2011, VTBH adopted a 2011 Phantom Equity Appreciation Plan (the “Appreciation Plan”) that covers certain employees, consultants, and directors of VTBH (“Participants”) who are entitled to phantom units, as applicable, pursuant to the provisions of their respective award agreements. The Appreciation Plan is shareholder-approved, which permits the granting of phantom units to VTBH’s Participants of up to 1,500,000 units. These units are not exercisable or convertible into shares of common stock but give the holder a right to receive a cash bonus equal to the appreciation in value between the exercise price and value of common stock at the time of a change in control event as defined in the plan. As of March 31, 2016 and December 31, 2015, 714,347 phantom units at a weighted-average exercise price of $0.93 have been granted and are outstanding. Because these phantom units are not exercisable or convertible into common shares, said amounts and exercise prices were not subject to the exchange ratio provided by the Merger agreement. As of March 31, 2016 , compensation expense related to the Appreciation Plan units remained unrecognized because as of those dates a change in control, as defined in the plan, had not occurred and is not probable to occur. In July 2015, the Appreciation Plan was terminated as to new grants, but vested and unvested phantom units will continue.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share of common stock attributable to common stockholders: Three Months Ended March 31, 2016 2015 (in thousands, except per-share data) Net Loss $ (12,011 ) $ (10,593 ) Weighted average common shares outstanding — Basic 46,624 42,039 Plus incremental shares from assumed conversions: Dilutive effect of stock options — — Weighted average common shares outstanding — Diluted 46,624 42,039 Net loss per share: Basic $ (0.26 ) $ (0.25 ) Diluted $ (0.26 ) $ (0.25 ) Incremental shares from stock options, restricted stock awards and warrants 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, warrants and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Three Months Ended March 31, 2016 2015 (in thousands) Stock options 5,543 6,615 Warrants 3,079 31 Unvested restricted stock awards 72 6 Total 8,694 6,652

Segment and Geographical Inform

Segment and Geographical Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Geographical Information	Geographic Information The following tables show our net revenues, operating income and total assets by our reporting segments: Three Months Ended March 31, 2016 2015 Net Revenues (in thousands) Headset $ 23,747 $ 19,598 HyperSound 281 91 Total $ 24,028 $ 19,689 Operating Loss Headset $ (5,280 ) $ (9,239 ) HyperSound (4,490 ) (3,310 ) Total $ (9,770 ) $ (12,549 ) Interest Expense $ 1,779 $ 784 Other non-operating expense, net $ 365 $ 628 Loss before income tax expense (benefit) $ (11,914 ) $ (13,961 ) March 31, December 31, Total Assets (in thousands) Headset $ 49,829 $ 96,444 HyperSound 113,751 111,490 Eliminations $ (37,484 ) $ (35,474 ) Total $ 126,096 $ 172,460 The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2016 2015 (in thousands) North America $ 18,891 $ 14,159 United Kingdom 2,587 2,374 Europe 1,473 1,368 International 1,077 1,788 Total net revenues $ 24,028 $ 19,689

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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) 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. 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 cases 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. That denial is currently under review by the Nevada Supreme Court, which held a hearing on the Company's petition for review on September 1, 2015. After the hearing, the Nevada Supreme Court requested supplemental briefing, which the parties completed on October 13, 2015. The Nevada Supreme Court also invited the Business Law Section of the Nevada State Bar to submit an amicus brief by December 3, 2015 and briefing was completed on February 23, 2016. The Company believes that the plaintiffs’ claims against it are without merit. Dr. John Bonanno Complaint: On February 18, 2015, Dr. John Bonanno, a minority shareholder of VTBH, filed a complaint in Delaware Chancery Court alleging breach of contract against VTBH. According to the complaint, the Merger purportedly triggered a contractual obligation for VTBH to redeem Dr. Bonanno's stock. Dr. Bonanno requests a declaratory judgment stating that he is entitled to damages including a redemption of his stock for the redemption value of $15.1 million (equal to the original issue price of his stock plus accrued dividends) as well as other costs and expenses. On February 8, 2016, the Delaware Chancery Court granted VTBH's motion to dismiss for improper venue, and Dr. Bonnano's complaint was dismissed without prejudice. VTBH maintains that the Merger did not trigger any obligation to redeem Mr. Bonanno's stock. The Company will continue to vigorously defend itself in the foregoing 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 March 31, 2016 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 We warrant our 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 warranties, which are included in accrued liabilities: Three Months Ended March 31, 2016 2015 (in thousands) Warranty, beginning of period $ 580 $ 493 Warranty costs accrued 239 — Settlements of warranty claims (159 ) (113 ) Warranty, end of period $ 660 $ 380 XO FOUR Stealth Product Recall: I n August 2015, the Company received a limited number of reports from consumers and retailers that certain EAR FORCE ® XO FOUR Stealth headsets appeared to have a white substance or spots on the ear pads. Upon receiving the reports, the Company promptly stopped shipping any units of the XO FOUR Stealth headsets and notified our retail customers to stop sales pending the results of the Company’s investigation. An outside laboratory engaged by the Company identified the substance as mold. In cooperation with the U.S. Consumer Product Safety Commission (“CPSC”), the Company is voluntarily recalling certain units of the headsets. As of March 31, 2016 and the date of this report, the Company has not received notice of any law suits against the Company in connection with the recall and is working with the contract manufacturer to collect reimbursement for certain related costs. On February 3, 2016, the Company notified CPSC promptly upon discovery that a vendor had mistakenly shipped certain recalled headsets to fill online orders. The Company is contacting the affected purchasers directly to instruct them to participate in the recall.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting	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. We believe 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, 2015 Condensed Consolidated Balance Sheet has been derived from the Company's most recent audited financial statements included in its Annual Report on Form 10-K. These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 30, 2016 (“Annual Report”) that contains information useful to understanding the Company's businesses and financial statement presentations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , which requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. On July 9, 2015, the FASB agreed to a one-year deferral of the effective date to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods, but will permit public business entities to adopt the standard as of the original effective date (annual reporting periods beginning after December 15, 2016). The Company is currently evaluating the impact, if any, this new standard will have on its consolidated financial statements and has not yet determined the method of adoption. In April 2015, the FASB issued ASU No. 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. ASU 2015-15 further clarified that debt issuance costs related to line-of-credit arrangements may continue to be presented as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendment is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods with early adoption permitted. The Company adopted this guidance on a retrospective basis as required and as such reclassified $1.4 millio n of deferred financing fees from “Other Assets” to “Term Loan, long term portion” on the Condensed Consolidated Balance Sheet at December 31, 2015. Refer to Note 8 , “Credit Facilities and Long-Term Debt” for further information. In February 2016, the FASB issued ASU No. 2016-02, Leases , that introduces the recognition of a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). The guidance will be effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company has not yet selected a transition method or determined the effect on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation , which modifies current guidance related to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. This amendment also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently evaluating the impact, if any, this new standard will have on its consolidated financial statements.

Fair Value Measurement Fair Val

Fair Value Measurement Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The following is a summary of the carrying amounts and estimated fair values of our financial instruments at March 31, 2016 and December 31, 2015 : March 31, 2016 December 31, 2015 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 3,228 $ 3,228 $ 7,114 $ 7,114 Credit Facility 533 533 32,453 32,453 Term Loans 17,176 17,113 18,379 18,179 Subordinated Debt 17,762 16,611 17,247 15,892

Allowance for Sales Return (Tab

Allowance for Sales Return (Tables)	3 Months Ended
	Mar. 31, 2016
Allowance for Sales Returns [Abstract]
Schedule of allowances for sales returns	The following tables provide the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended March 31, 2016 2015 (in thousands) Balance, beginning of period $ 6,268 $ 4,155 Reserve accrual 2,133 1,666 Recoveries and deductions, net (4,874 ) (4,642 ) Balance, end of period $ 3,527 $ 1,179

Composition of Certain Financ24

Composition of Certain Financial Statement Items (Tables)	3 Months Ended
	Mar. 31, 2016
Condensed Consolidated Balance Sheet Components [Abstract]
Schedule of inventory	Inventories consist of the following: March 31, 2016 December 31, 2015 (in thousands) Raw materials $ 1,511 $ 1,481 Finished goods 24,327 24,665 Total inventories $ 25,838 $ 26,146
Schedule of property and equipment	Property and equipment, net, consists of the following: March 31, 2016 December 31, 2015 (in thousands) Machinery and equipment $ 1,335 $ 1,238 Software and software development 411 1,022 Furniture and fixtures 268 284 Tooling 2,048 3,395 Leasehold improvements 1,253 1,255 Demonstration units and convention booths 6,601 16,531 Total property and equipment, gross 11,916 23,725 Less: accumulated depreciation and amortization (5,522 ) (16,866 ) Total property and equipment, net $ 6,394 $ 6,859

Goodwill and Other Intangible25

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	Changes in the carrying values of goodwill for the three months ended March 31, 2016 are as follows: (in thousands) Balance as of January 1, 2016 $ 31,152 — Balance as of March 31, 2016 $ 31,152
Schedule of Intangible Assets	Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2016 and December 31, 2015 consist of: March 31, 2016 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 3,377 $ 2,419 Non-compete agreements 177 177 — In-process Research and Development 27,100 2,037 25,063 Developed technology 8,880 268 8,612 Trade names 170 75 95 Patent and trademarks 864 46 818 Foreign Currency $ (598 ) $ (381 ) $ (217 ) Total Intangible Assets $ 42,389 $ 5,599 $ 36,790 December 31, 2015 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 3,213 $ 2,583 Non-compete agreements 177 177 — In-process Research and Development 27,100 1,018 26,082 Developed technology 8,880 225 8,655 Trade names 170 67 103 Patent and trademarks 730 37 693 Foreign Currency $ (463 ) $ (303 ) $ (160 ) Total Intangible Assets $ 42,390 $ 4,434 $ 37,956
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of March 31, 2016 , estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2016 $ 7,160 2017 6,526 2018 6,024 2019 5,601 2020 4,907 Thereafter 6,789 Total $ 37,007

Credit Facilities and Long-Te26

Credit Facilities and Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	March 31, 2016 December 31, 2015 (in thousands) Revolving credit facility, maturing March 2019 $ 533 $ 32,453 Term Loan Due 2018 5,128 5,769 Term Loan Due 2019 12,048 12,610 Less unamortized deferred financing fees 1,286 1,391 Total Term Loans 15,890 16,988 Subordinated notes 17,762 17,247 Less unamortized debt discount 1,800 1,882 Total Subordinated notes 15,962 15,365 Total outstanding debt 32,385 64,806 Less: current portion of revolving line of credit (533 ) (32,453 ) Less: current portion of term loans (4,814 ) (4,814 ) Total noncurrent portion of long-term debt $ 27,038 $ 27,539

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax benefit	The following table presents our income tax expense (benefit) and effective income tax rate: Three Months Ended March 31, 2016 2015 (in thousands) Income tax expense (benefit) $ 97 $ (3,368 ) Effective income tax rate (0.8 )% 24.1 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation cost	Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company's stock-based awards, was comprised as follows: Three Months Ended March 31, 2016 2015 (in thousands) Cost of revenue $ 121 $ 218 Selling and marketing 21 144 Research and development 144 205 General and administrative 841 758 Total stock-based compensation $ 1,127 $ 1,325
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 March 31, 2016 : (in thousands) Balance at December 31, 2015 3,258 Options granted (41 ) Forfeited/Expired shares added back 425 Balance at March 31, 2016 3,642
Stock option activity	Options Outstanding Number of Shares Underlying Outstanding Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (In years) Outstanding at December 31, 2015 5,613,384 2.19 7.89 628,833 Granted 40,500 1.58 Exercised — — Forfeited (424,431 ) 2.60 Outstanding at March 31, 2016 5,229,453 2.15 7.58 720 Vested and expected to vest at March 31, 2016 5,052,493 2.19 7.53 583 Exercisable at March 31, 2016 2,414,579 2.25 6.33 —
Schedule of weighted-average assumptions	The following are assumptions for the three months ended March 31, 2016 . Expected term (in years) 6.1 Risk-free interest rate 1.4% - 1.9% Expected volatility 40.7% - 42.2% Dividend rate 0%
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option activity	Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2015 71,898 $ 3.48 Granted — — Nonvested restricted stock at March 31, 2016 71,898 3.48

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of computation of basic and diluted net (loss) income per share of common stock	The following table sets forth the computation of basic and diluted net loss per share of common stock attributable to common stockholders: Three Months Ended March 31, 2016 2015 (in thousands, except per-share data) Net Loss $ (12,011 ) $ (10,593 ) Weighted average common shares outstanding — Basic 46,624 42,039 Plus incremental shares from assumed conversions: Dilutive effect of stock options — — Weighted average common shares outstanding — Diluted 46,624 42,039 Net loss per share: Basic $ (0.26 ) $ (0.25 ) Diluted $ (0.26 ) $ (0.25 )
Schedule of antidilutive securities excluded from computation of diluted net income per share of common stock	Incremental shares from stock options, restricted stock awards and warrants 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, warrants and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises. Three Months Ended March 31, 2016 2015 (in thousands) Stock options 5,543 6,615 Warrants 3,079 31 Unvested restricted stock awards 72 6 Total 8,694 6,652

Segment and Geographical Info30

Segment and Geographical Information (Tables) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Segment Reporting Information [Line Items]
Other Nonoperating Income (Expense)	$ (365)	$ (628)
Operating Income (Loss)	(9,770)	(12,549)
Interest expense	1,779	784
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	$ (11,914)	$ (13,961)
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	March 31, December 31, Total Assets (in thousands) Headset $ 49,829 $ 96,444 HyperSound 113,751 111,490 Eliminations $ (37,484 ) $ (35,474 ) Total $ 126,096 $ 172,460
Schedule of Segment Reporting Information, by Segment [Table Text Block]	The following tables show our net revenues, operating income and total assets by our reporting segments: Three Months Ended March 31, 2016 2015 Net Revenues (in thousands) Headset $ 23,747 $ 19,598 HyperSound 281 91 Total $ 24,028 $ 19,689 Operating Loss Headset $ (5,280 ) $ (9,239 ) HyperSound (4,490 ) (3,310 ) Total $ (9,770 ) $ (12,549 ) Interest Expense $ 1,779 $ 784 Other non-operating expense, net $ 365 $ 628 Loss before income tax expense (benefit) $ (11,914 ) $ (13,961 )
Schedule of total revenues based on where customers are physically located	The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2016 2015 (in thousands) North America $ 18,891 $ 14,159 United Kingdom 2,587 2,374 Europe 1,473 1,368 International 1,077 1,788 Total net revenues $ 24,028 $ 19,689

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of Product Warranty Liability	The following table provides the changes in our product warranties, which are included in accrued liabilities: Three Months Ended March 31, 2016 2015 (in thousands) Warranty, beginning of period $ 580 $ 493 Warranty costs accrued 239 — Settlements of warranty claims (159 ) (113 ) Warranty, end of period $ 660 $ 380

Background and Basis of Prese32

Background and Basis of Presentation(Details) - shares	Mar. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Common stock shares authorized	100,000,000	50,000,000

Equity Offering Equity Offering

Equity Offering Equity Offering (Details) - USD ($) $ / shares in Units, $ in Thousands	Feb. 02, 2016	Feb. 02, 2016	Feb. 01, 2016	Mar. 31, 2016	Mar. 31, 2015
Schedule of Equity Method Investments [Line Items]
Proceeds from Issuance of Common Stock	$ 6,000			$ 5,989	$ 0
Payments of Stock Issuance Costs				$ 700
Underwritten Public Offering [Member]
Schedule of Equity Method Investments [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		5,000,000
Sale of Stock, Price Per Share	$ 1	$ 1
Over-Allotment Option [Member]
Schedule of Equity Method Investments [Line Items]
Sale of Stock, Number of Shares Issued in Transaction		750,000
Private Placement [Member]
Schedule of Equity Method Investments [Line Items]
Sale of Stock, Number of Shares Issued in Transaction			1,700,000

Fair Value Measurement (Details

Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 3,228	$ 7,114
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	3,228	7,114
Loans Payable [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	17,176	18,379
Loans Payable [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	17,113	18,179
Subordinated Debt [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	17,762	17,247
Subordinated Debt [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	16,611	15,892
Revolving credit facility, maturing March 2019 | Line of Credit [Member] | Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	533	32,453
Revolving credit facility, maturing March 2019 | Line of Credit [Member] | Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt Instrument, Fair Value Disclosure	$ 533	$ 32,453

Allowance for Sales Return (Det

Allowance for Sales Return (Details) - Allowance for Sales Returns - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Sales returns reserve, beginning balance	$ 6,268	$ 4,155
Reserve accrual	2,133	1,666
Valuation Allowances and Reserves, Deductions	(4,874)	(4,642)
Sales returns reserve, ending balance	$ 3,527	$ 1,179

Composition of Certain Financ36

Composition of Certain Financial Statement Items Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 1,511	$ 1,481
Finished goods	24,327	24,665
Total inventories	$ 25,838	$ 26,146

Composition of Certain Financ37

Composition of Certain Financial Statement Items Property and equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 11,916	$ 23,725
Less: accumulated depreciation and amortization	(5,522)	(16,866)
Total property and equipment, net	6,394	6,859
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,335	1,238
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	411	1,022
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	268	284
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,048	3,395
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,253	1,255
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 6,601	$ 16,531

Goodwill and Other Intangible38

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Finite-lived Intangible Assets [Roll Forward]
Total intangible assets, gross carrying value	$ 42,389		$ 42,390
Finite-lived intangible assets, accumulated amortization	5,599		4,434
Total intangible assets, net book value	36,790		37,956
Total	37,007
Foreign Currency [Member]
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	(598)		(463)
Finite-lived intangible assets, accumulated amortization	(381)		(303)
Total	(217)		(160)
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	5,796		5,796
Finite-lived intangible assets, accumulated amortization	3,377		3,213
Total	2,419		2,583
Non-compete agreements
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	177		177
Finite-lived intangible assets, accumulated amortization	177		177
Total	0		0
In-process research and development (IPR&D)
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	27,100		27,100
Finite-lived intangible assets, accumulated amortization	2,037		1,018
Total	25,063		26,082
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	8,880		8,880
Finite-lived intangible assets, accumulated amortization	268		225
Total	8,612		8,655
Trade name
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	170		170
Finite-lived intangible assets, accumulated amortization	75		67
Total	95		103
Patent and trademarks
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	864		730
Finite-lived intangible assets, accumulated amortization	46		37
Total	$ 818		$ 693
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Customer relationships
Schedule of Goodwill, Finite and Indefinite-lived Intangible Assets [Line Items]
Useful life	2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | In-process research and development (IPR&D)
Schedule of Goodwill, Finite and Indefinite-lived Intangible Assets [Line Items]
Useful life		8 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Developed technology
Schedule of Goodwill, Finite and Indefinite-lived Intangible Assets [Line Items]
Useful life	7 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Trade name
Schedule of Goodwill, Finite and Indefinite-lived Intangible Assets [Line Items]
Useful life	5 years

Goodwill and Other Intangible39

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2016USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2,014	$ 7,160
2,015	6,526
2,016	6,024
2,017	5,601
2,018	4,907
Thereafter	6,789
Total	$ 37,007

Goodwill and Other Intangible40

Goodwill and Other Intangible Assets - Additional Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 1,229	$ 222
Acquisition of Lygo International Limited | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	13 years
Acquisition of Lygo International Limited | Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Useful life	2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Developed technology
Finite-Lived Intangible Assets [Line Items]
Useful life	7 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life	2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Trade name
Finite-Lived Intangible Assets [Line Items]
Useful life	5 years

Goodwill and Other Intangible41

Goodwill and Other Intangible Assets Goodwill Rollforward (Details) $ in Thousands	Mar. 31, 2016USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 31,152
Goodwill, ending balance	$ 31,152

Credit Facilities and Long-Te42

Credit Facilities and Long-Term Debt (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jul. 22, 2015
Debt Instrument [Line Items]
Debt Instrument, Agreement Provision, Minimum Net Proceeds Of Additional Equity Capital To Apply To Balance	$ 6,000,000
Total outstanding debt	32,385,000		$ 64,806,000
Total noncurrent portion of long-term debt	27,038,000		27,539,000
Interest Expense, Debt	1,300,000	$ 400,000
Amortization of debt financing costs	324,000	$ 49,000
Revolving credit facilities | Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Total outstanding debt	533,000		32,453,000
Current maturities of outstanding debt	(533,000)		(32,453,000)
Term Loan Due 2018 [Member]
Debt Instrument [Line Items]
Total outstanding debt	5,128,000		5,769,000
Loans Payable
Debt Instrument [Line Items]
Total outstanding debt	15,890,000		16,988,000
Current maturities of outstanding debt	(4,814,000)		(4,814,000)
Term Loan Due 2019
Debt Instrument [Line Items]
Total outstanding debt	12,048,000		12,610,000	$ 15,000,000
Unamortized Debt Issuance Expense	1,286,000		1,391,000
Subordinated Debt
Debt Instrument [Line Items]
Total outstanding debt	17,762,000		17,247,000
Debt Instrument, Unamortized Discount	$ 1,800,000		$ 1,882,000

Credit Facilities and Long-Te43

Credit Facilities and Long-Term Debt - Credit Facility (Details)	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 16, 2015	Dec. 29, 2014USD ($)
Line of Credit Facility [Line Items]
Expiration date	Mar. 31, 2019
Revolving credit facility, maturing March 2019
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 60,000,000
Remaining borrowing capacity	$ 3,100,000
Debt Instrument, Covenant, Current Fixed Charge Ratio Required, Minimum		1.15
Revolving credit facility, maturing March 2019 | Minimum
Line of Credit Facility [Line Items]
Unused commitment fee, percent	0.25%
Revolving credit facility, maturing March 2019 | Maximum
Line of Credit Facility [Line Items]
Unused commitment fee, percent	0.50%
Revolving credit facility, maturing March 2019 | Base rate
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.00%
Revolving credit facility, maturing March 2019 | Base rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Revolving credit facility, maturing March 2019 | Base rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
Revolving credit facility, maturing March 2019 | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.92%
Revolving credit facility, maturing March 2019 | London Interbank Offered Rate (LIBOR) [Member] | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Revolving credit facility, maturing March 2019 | London Interbank Offered Rate (LIBOR) [Member] | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Revolving credit facility, maturing March 2019 | UK Borrower
Line of Credit Facility [Line Items]
Maximum borrowing capacity	$ 10,000,000
Loans Payable
Line of Credit Facility [Line Items]
Debt Instrument, Amended Credit Agreement, Principal Amount Permitted to be Repaid			$ 7,700,000
Loans Payable | London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate	5.00%

Credit Facilities and Long-Te44

Credit Facilities and Long-Term Debt - Subordinated Note (Details) - USD ($) $ / shares in Units, shares in Millions	Jul. 22, 2015	Mar. 31, 2016	Aug. 13, 2015	Apr. 21, 2016	Dec. 31, 2015	Nov. 30, 2015	Nov. 16, 2015	Jul. 08, 2015	Apr. 23, 2015
Line of Credit Facility [Line Items]
Risk-free interest rate, minimum		1.40%
Total outstanding debt		$ 32,385,000			$ 64,806,000
Subordinated Debt
Line of Credit Facility [Line Items]
Total outstanding debt		$ 17,762,000			$ 17,247,000
Chief Executive Officer, Director, and Shareholder | VTB Holdings, Inc | Issuance Of Debt, April Notes [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Related Party Transaction, Rate, Initial Period				10.00%
Related Party Transaction, Rate, Subsequent Period				20.00%
Chief Executive Officer, Director, and Shareholder | VTB Holdings, Inc | Issuance Of Debt, May Notes [Member]
Line of Credit Facility [Line Items]
Related Party Transaction, Rate, Initial Period			10.00%
Chief Executive Officer, Director, and Shareholder | VTB Holdings, Inc | Issuance Of Debt, May Notes [Member] | Subsequent Event [Member]
Line of Credit Facility [Line Items]
Related Party Transaction, Rate, Subsequent Period				20.00%
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc
Line of Credit Facility [Line Items]
Debt Instrument, Maturity Date	Sep. 29, 2019
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc | Issuance Of Debt, April Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount									$ 5,000,000
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc | Issuance Of Debt, May Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount									3,800,000
Debt Instrument, Maturity Date		Aug. 13, 2015
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc | Issuance Of Debt, June Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount									$ 3,000,000
Debt Instrument, Maturity Date		Sep. 17, 2015
hear_Debt Instrument, Maximum Capacity		$ 15,000,000
Total outstanding debt	$ 9,000,000
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc | Issuance Of Debt, Additional June Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount								$ 6,000,000
Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc | Issuance Of Debt, November Notes [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount							$ 2,500,000
Debt Instrument, Interest Rate, Stated Percentage							15.00%
London Interbank Offered Rate (LIBOR) [Member] | Chief Executive Officer, Director, and Shareholder | Subordinated Debt | VTB Holdings, Inc
Line of Credit Facility [Line Items]
Basis spread on variable rate		10.50%
VTB Holdings, Inc
Line of Credit Facility [Line Items]
Class of Warrant or Right, Outstanding	1.7					1.4
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 2.54					$ 2

Credit Facilities and Long-Te45

Credit Facilities and Long-Term Debt - Term Loan Due 2019 (Details)	Jul. 22, 2015USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Line of Credit Facility [Line Items]
Total outstanding debt		$ 32,385,000		$ 64,806,000
Repayments of Notes Payable		1,203,000	$ 0
Term Loan Due 2019
Line of Credit Facility [Line Items]
Total outstanding debt	$ 15,000,000	$ 12,048,000		$ 12,610,000
Debt Instrument, Maturity Date	Jun. 28, 2019
London Interbank Offered Rate (LIBOR) [Member] | Term Loan Due 2019
Line of Credit Facility [Line Items]
Basis spread on variable rate	10.25%
Additional Default Rate [Member] | Term Loan Due 2019
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Year Ended December 31, 2015 [Member] | Term Loan Due 2019
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Consolidated Leverage Ratio	5.75
hear_Capital Expenditures, Maximum	$ 11,000,000
Year Ended December 31, 2017 [Member] | Term Loan Due 2019
Line of Credit Facility [Line Items]
Debt Instrument, Covenant, Consolidated Leverage Ratio	3
Years Ended December 31, 2016, 2017, 2018, 2019 [Member] | Term Loan Due 2019
Line of Credit Facility [Line Items]
hear_Capital Expenditures, Maximum	$ 7,000,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating Loss Carryforwards [Line Items]
Income tax expense (benefit)	$ 97	$ (3,368)
Effective tax rate	(0.80%)	24.10%
Unrecognized Tax Benefits, Inclusive of Interest and Penalties	$ 2,300
Interest and penalties	800
2029 [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	44,600
State and Local Jurisdiction [Member] | 2029 [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	20,600
Domestic Tax Authority [Member] | 2029 [Member]
Operating Loss Carryforwards [Line Items]
Operating Loss Carryforwards	$ 12,700

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	5,229,453		5,613,384
Stock-based compensation	$ 1,127	$ 1,325
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	424,431
Forfeited/Expired shares added back	425,000
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 121	218
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	21	144
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	144	205
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 841	$ 758

Stock-Based Compensation - Shar

Stock-Based Compensation - Shares Available for Grant (Details)	3 Months Ended
	Mar. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance, beginning of period (in shares)	3,258,000
Options granted	(40,500)
Forfeited/Expired shares added back	425,000
Balance, end of period (in shares)	3,642,000

Stock-Based Compensation - St49

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares)	5,613,384
Options granted	40,500
Exercised (in shares)	0
Forfeited (in shares)	(424,431)
Outstanding end of period (in shares)	5,229,453
Vested and expected to vest (in shares)	5,052,493
Exercisable (in shares)	2,414,579
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share)	$ 2.19
Granted (in dollars per share)	1.58
Exercised (in dollars per share)	0
Forfeited (in dollars per share)	2.60
Outstanding end of period (in dollars per share)	2.15
Vested and expected to vest (in dollars per share)	2.19
Exercisable (in dollars per share)	$ 2.25
Outstanding, weighted average remaining contractual term	7 years 6 months 30 days	7 years 10 months 20 days
Vested and expected to vest, weighted average remaining contractual term	7 years 6 months 10 days
Exercisable, weighted average remaining contractual term	6 years 3 months 30 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, intrinsic value	$ 720		$ 628,833
Vested and expected to vest, intrinsic value	583
Exercisable, intrinsic value	$ 0
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years 8 months

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted-Average Assumptions (Details)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	1.40%
Risk-free interest rate, maximum	1.90%
Expected volatility, minimum	40.70%
Expected volatility, maximum	42.20%
Expected dividend rate	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 18 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 18 days

Stock-Based Compensation - RSA

Stock-Based Compensation - RSA Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $	$ 0.1
Restricted stock awards
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	71,898
Granted (in shares) | shares	0
Outstanding end of period (in shares) | shares	71,898
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	$ 3.48
Granted (in dollars per share) | $ / shares	0
Outstanding end of period (in dollars per share) | $ / shares	$ 3.48
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months

Stock-Based Compensation (Detai

Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	Sep. 30, 2010	Mar. 31, 2016	Dec. 31, 2015	Nov. 30, 2015	Jul. 22, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period		10 years
Forfeiture Period after Ending Employment		90 days
Options exercised, intrinsic value		$ 0
Weighted average grant date fair value of options granted (in dollars per share)		$ 0.66
Estimated grant date fair value of options vested		$ 500
Total unrecognized compensation cost related to stock options		5,800
Series B redeemable preferred stock		$ 16,468	$ 16,145
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 8 months
Restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 10 months
Phantom equity | 2011 Phantom Equity Appreciation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share authorized (in shares)			1,500,000
Shares granted and outstanding (in shares)		714,347
Weighted average exercise price of options granted and outstanding (in dollars per share)		$ 0.93
VTB Holdings, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of Warrant or Right, Outstanding				1,400,000	1,700,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 2	$ 2.54
Series B Redeemable Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued	1,000,000
Fair value of shares issued	$ 12,400
Par value (in dollars per share)		$ 12.425371
Non-Executives [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate		10.00%
Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate		0.00%

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic and diluted:
Net loss	$ (12,011)	$ (10,593)
Basic:
Weighted-average common shares outstanding, basic (in shares)	46,624	42,039
Dilutive effect of stock options	0	0
Diluted:
Weighted-average common shares outstanding, diluted (in shares)	46,624	42,039
Net loss per share:
Basic (in dollars per share)	$ (0.26)	$ (0.25)
Diluted (in dollars per share)	$ (0.26)	$ (0.25)

Net Loss Per Share - Antidiluti

Net Loss Per Share - Antidilutive Securities (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	8,694	6,652
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	5,543	6,615
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,079	31
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	72	6

Segment and Geographical Info55

Segment and Geographical Information - Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets	$ 126,096		$ 172,460
Revenues	24,028	$ 19,689
Operating Income (Loss)	(9,770)	(12,549)
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	18,891	14,159
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,077	1,788
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,587	2,374
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	1,473	1,368
Headset Business [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets	49,829		96,444
Revenues	23,747	19,598
Operating Income (Loss)	(5,280)	(9,239)
HyperSound Business [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets	113,751		111,490
Revenues	281	91
Operating Income (Loss)	(4,490)	$ (3,310)
Consolidation, Eliminations [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Assets	$ (37,484)		$ (35,474)

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Feb. 18, 2015	Mar. 31, 2016	Mar. 31, 2015	Aug. 05, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty accrual, beginning balance		$ 580	$ 493
Warranty costs accrued		239	0
Settlements of warranty claims		(159)	(113)
Warranty accrual, ending balance		$ 660	$ 380
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | VTB Holdings, Inc
Business Acquisition [Line Items]
Ownership percentage				80.00%
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Parametric Sound Corporation
Business Acquisition [Line Items]
Ownership percentage				20.00%
Pending Litigation [Member] | Bonanno vs. VTBH [Member]
Movement in Standard Product Warranty Accrual [Roll Forward]
Loss Contingency, Damages Sought, Value	$ 15,100