Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | Turtle Beach Corporation | |
Entity Central Index Key | 0001493761 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 14,630,799 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 10,156 | $ 7,078 |
Accounts receivable, net | 12,461 | 52,797 |
Inventories | 44,480 | 49,472 |
Prepaid expenses and other current assets | 4,785 | 4,469 |
Total Current Assets | 71,882 | 113,816 |
Property and equipment, net | 5,215 | 5,856 |
Intangible assets, net | 997 | 1,036 |
Other assets | 3,831 | 1,212 |
Total Assets | 81,925 | 121,920 |
Current Liabilities: | ||
Revolving credit facility | 0 | 37,385 |
Accounts payable | 13,073 | 17,724 |
Other current liabilities | 16,580 | 18,488 |
Total Current Liabilities | 29,653 | 73,597 |
Deferred income taxes | 187 | 187 |
Financial Instrument Obligation | 0 | 7,848 |
Other liabilities | 4,677 | 2,792 |
Total Liabilities | 34,517 | 84,424 |
Stockholders’ Equity | ||
Common stock, $0.001 par value - 100,000,000 shares authorized; 14,575,365 and 14,268,184 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | 14 | 14 |
Additional paid-in capital | 176,113 | 169,421 |
Accumulated deficit | (128,408) | (131,463) |
Accumulated other comprehensive loss | (311) | (476) |
Total Stockholders’ Equity | 47,408 | 37,496 |
Total Liabilities and Stockholders’ Equity | $ 81,925 | $ 121,920 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Stockholders’ Equity | ||
Common stock par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 14,575,365 | 14,268,184 |
Common stock shares outstanding | 14,575,365 | 14,268,184 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 44,846,000 | $ 40,886,000 |
Cost of revenue | 30,059,000 | 25,857,000 |
Gross profit | 14,787,000 | 15,029,000 |
Operating expenses: | ||
Selling and marketing | 6,881,000 | 5,929,000 |
Research and development | 1,456,000 | 1,329,000 |
General and administrative | 4,649,000 | 3,985,000 |
Total operating expenses | 12,986,000 | 11,243,000 |
Operating income | 1,801,000 | 3,786,000 |
Interest expense | 244,000 | 2,005,000 |
Other non-operating expense (income), net | (1,662,000) | (245,000) |
Income before income tax | 3,219,000 | 2,026,000 |
Income tax expense | 164,000 | 64,000 |
Net income | $ 3,055,000 | $ 1,962,000 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.21 | $ 0.16 |
Diluted (in dollars per share) | $ 0.09 | $ 0.16 |
Weighted average number of shares: | ||
Basic (in shares) | 14,336 | 12,347 |
Diluted (in shares) | 16,260 | 12,369 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 3,055 | $ 1,962 |
Foreign currency translation adjustment | 165 | 155 |
Other comprehensive income | 165 | 155 |
Comprehensive income | $ 3,220 | $ 2,117 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,055 | $ 1,962 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,040 | 948 |
Amortization of intangible assets | 62 | 79 |
Amortization of debt financing costs | 47 | 394 |
Stock-based compensation | 522 | 223 |
Accrued interest on Series B redeemable preferred stock | 0 | 376 |
Paid-in-kind interest | 0 | 665 |
Deferred income taxes | 0 | (21) |
Provision for (reversal of) sales returns reserve | (2,532) | (1,273) |
Provision for doubtful accounts | 0 | 131 |
Provision for obsolete inventory | 783 | 582 |
Debt and Equity Securities, Gain (Loss) | (1,601) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 42,868 | 29,320 |
Inventories | 4,210 | 11,120 |
Accounts payable | (4,493) | (3,597) |
Prepaid expenses and other assets | (317) | (68) |
Income taxes payable | 132 | 0 |
Other liabilities | (2,814) | (2,796) |
Net cash provided by operating activities | 40,962 | 38,045 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (557) | (354) |
Net cash used for investing activities | (557) | (354) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Borrowings on revolving credit facilities | 48,119 | 37,571 |
Repayment of revolving credit facilities | (85,504) | (73,396) |
Repayment of term loan | 0 | (2,485) |
Proceeds from exercise of stock options and warrants | 23 | 0 |
Repurchase of common stock to satisfy employee tax withholding obligations | (101) | 0 |
Debt financing costs | 0 | (175) |
Net cash used for financing activities | (37,463) | (38,485) |
Effect of exchange rate changes on cash and cash equivalents | 136 | (118) |
Net increase (decrease) in cash and cash equivalents | 3,078 | (912) |
Cash and cash equivalents, beginning of period | 7,078 | |
Cash and cash equivalents, end of period | 10,156 | |
SUPPLEMENTAL DISCLOSURE OF INFORMATION | ||
Cash paid for interest | 268 | 482 |
Cash paid for income taxes | 0 | 0 |
Reclassification of financial instrument obligation | $ 6,248 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity Statement - USD ($) | Total | Common stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income | Series B Preferred Stock [Member]Common stock | Warrant [Member]Common stock | Warrant [Member]Additional Paid-in Capital |
Beginning balance, shares at Dec. 31, 2017 | 12,349,000 | |||||||
Beginning balance at Dec. 31, 2017 | $ (22,157,000) | $ 12,000 | $ 148,082,000 | $ (170,048,000) | $ (203,000) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,962,000 | 1,962,000 | ||||||
Cumulative Effect on Retained Earnings, Net of Tax | (605,000) | (605,000) | ||||||
Other comprehensive income | 155,000 | 155,000 | ||||||
Share-based compensation | 223,000 | 223,000 | ||||||
Ending balance, shares at Mar. 31, 2018 | 12,349,000 | |||||||
Ending balance at Mar. 31, 2018 | (20,422,000) | $ 12,000 | 148,305,000 | (168,691,000) | (48,000) | |||
Beginning balance, shares at Dec. 31, 2018 | 14,268,000 | |||||||
Beginning balance at Dec. 31, 2018 | 37,496,000 | $ 14,000 | 169,421,000 | (131,463,000) | (476,000) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,055,000 | |||||||
Stock Issued During Period, Value, Series B Exchange | 6,248,000 | 6,248,000 | $ 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Period Increase (Decrease) | 12,000 | |||||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | 0 | $ 0 | 0 | |||||
Stock Repurchased and Retired During Period, Shares | (6,000) | |||||||
Stock Repurchased and Retired During Period, Value | (101,000) | $ 0 | (101,000) | |||||
Other comprehensive income | 165,000 | 165,000 | ||||||
Stock Issued During Period, Shares, Other | 0 | 295,000 | ||||||
Stock Issued During Period, Value, Other | $ 0 | $ 0 | $ 0 | |||||
Stock options exercised and related tax activity, shares | 5,529 | 6,000 | ||||||
Stock Issued During Period, Value, Stock Options Exercised | $ 23,000 | $ 0 | 23,000 | |||||
Share-based compensation | 522,000 | 522,000 | ||||||
Ending balance, shares at Mar. 31, 2019 | 14,575,000 | |||||||
Ending balance at Mar. 31, 2019 | $ 47,408,000 | $ 14,000 | $ 176,113,000 | $ (128,408,000) | $ (311,000) |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 with applications in digital signage and consumer electronics. VTB Holdings, Inc. (“VTBH”), a wholly-owned subsidiary of Turtle Beach and the owner of Voyetra Turtle Beach, Inc. (“VTB”) and Turtle Beach Europe Limited (“TB Europe”), was incorporated in the state of Delaware in 2010. VTB was incorporated in the state of Delaware in 1975 with operations principally located in Valhalla, New York. Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2018 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 18, 2019 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company's businesses and financial statement presentations. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
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 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 Company adopted this standard on its effective date of January 1, 2019, using the optional alternative approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods. As part of the adoption of the new standard, the Company elected the package of practical expedients that permits entities to not reassess prior conclusions regarding lease identification, lease classification, and initial direct costs under the new standard. Upon adoption of the new standard as it relates to the Company's accounting for real estate operating leases, assets and liabilities increased by approximately $3.3 million . Refer to Note 12 , “Commitments and Contingencies” for further details. In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting , that expands the scope of Topic 718, Compensation—Stock Compensation , to include share-based payments issued to non-employees for goods or services and substantially aligned the accounting for share-based payments to non-employees and employees. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is evaluating the effect that this guidance will have on the financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement , that removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
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, debt instruments and certain warrants. As of March 31, 2019 and December 31, 2018 , the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted, and the only outstanding financial assets and liabilities recorded at fair value on a recurring basis were the wholly-funded warrants reported as a financial instrument obligation. The following is a summary of the carrying amounts and estimated fair values of our financial instruments at March 31, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 10,156 $ 10,156 $ 7,078 $ 7,078 Revolving credit facility $ — $ — $ 37,385 $ 37,385 Financial instrument obligation $ — $ — $ 7,848 $ 7,848 Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying value of the revolving credit facility equals fair value as the stated interest rate approximates market rates currently available to the Company, which are considered Level 2 inputs. The liability-classified warrants reported as a financial instrument obligation were classified within Level 3 because the Company uses a Black-Scholes pricing model to estimate the fair value based on inputs that are not observable in any market. |
Allowance for Sales Return
Allowance for Sales Return | 3 Months Ended |
Mar. 31, 2019 | |
Allowance for Sales Returns [Abstract] | |
Allowance for Sales Returns | Allowance for Sales Returns The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended March 31, 2019 2018 (in thousands) Balance, beginning of period $ 9,212 $ 5,533 Reserve accrual 2,621 3,257 Recoveries and deductions, net (5,153 ) (4,530 ) Balance, end of period $ 6,680 $ 4,260 |
Composition of Certain Financia
Composition of Certain Financial Statement Items | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 December 31, 2018 (in thousands) Raw materials $ 1,359 $ 1,410 Finished goods 43,121 48,062 Total inventories $ 44,480 $ 49,472 Property and Equipment, net Property and equipment, net, consists of the following: March 31, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 1,656 $ 1,616 Software and software development 367 306 Furniture and fixtures 540 535 Tooling 4,161 3,925 Leasehold improvements 1,326 1,325 Demonstration units and convention booths 11,715 11,659 Total property and equipment, gross 19,765 19,366 Less: accumulated depreciation and amortization (14,550 ) (13,510 ) Total property and equipment, net $ 5,215 $ 5,856 Other Current Liabilities Other current liabilities consist of the following: March 31, 2019 December 31, 2018 (in thousands) Accrued royalty $ 2,480 $ 4,069 Accrued employee expenses 4,763 4,570 Accrued legal 1,275 443 Accrued expenses 8,062 9,406 Total other current liabilities $ 16,580 $ 18,488 Other non-operating expense (income), net Other non-operating expense (income), net consists of the following: March 31, 2019 March 31, 2018 (in thousands) Unrealized loss (gain) on financial instrument obligation $ (1,601 ) $ — Other non-operating expense (income) (61 ) (245 ) Total other non-operating expense (income),net $ (1,662 ) $ (245 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2019 and December 31, 2018 consist of: March 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 4,616 $ 1,180 Foreign currency (1,059 ) (876 ) (183 ) Total Intangible Assets $ 4,737 $ 3,740 $ 997 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 4,539 $ 1,257 Foreign currency (1,158 ) (937 ) (221 ) Total Intangible Assets $ 4,638 $ 3,602 $ 1,036 In connection with the October 2012 acquisition of TB Europe, the acquired intangible asset related to customer relationships is being amortized over an estimated useful life of thirteen years with the amortization being included within sales and marketing expense. Amortization expense related to definite lived intangible assets of $0.1 million and $0.1 million was recognized for the three months ended March 31, 2019 and 2018 , respectively. As of March 31, 2019 , estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2019 $ 230 2020 258 2021 217 2022 182 2023 153 Thereafter 140 Total $ 1,180 |
Credit Facilities and Long-Term
Credit Facilities and Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Credit Facilities and Long-Term Debt | Credit Facility and Long-Term Debt March 31, 2019 December 31, 2018 (in thousands) Revolving credit facility, maturing March 2024 $ — $ 37,385 Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $0.2 million and $1.5 million for three months ended March 31, 2019 and 2018 , respectively. This includes no related party interest for the three months ended March 31, 2019 , and $0.7 million of related party interest for the three months ended March 31, 2018 , in connection with the subordinated notes. Amortization of deferred financing costs was $47,000 for the three months ended March 31, 2019 , and $0.4 million for the three months ended March 31, 2018 . Revolving Credit Facility On December 17, 2018, Turtle Beach and certain of its subsidiaries entered into an amended and restated loan, guaranty and security agreement (“Credit Facility”) with Bank of America, N.A. (“Bank of America”), as Agent, Sole Lead Arranger and Sole Bookrunner, which replaced the then existing asset-based revolving loan agreement. The Credit Facility, which expires on March 5, 2024 , provides for a line of credit of up to $80 million inclusive of a sub-facility limit of $12 million for TB Europe, a wholly-owned subsidiary of Turtle Beach. In addition, the Credit Facility provides for a $40 million accordion feature and the ability to increase the borrowing base with a FILO Loan of up to $6.8 million . The maximum credit availability for loans and letters of credit under the Credit Facility is governed by a borrowing base determined by the application of specified percentages to certain eligible assets, primarily eligible trade accounts receivable and inventories, and is subject to discretionary reserves and revaluation adjustments. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes. Amounts outstanding under the Credit Facility bear interest at a rate equal to either a rate published by Bank of America or the LIBOR rate, plus in each case, an applicable margin, which is between 0.50% to 1.25% for base rate loans and between 1.25% to 2.00% for U.S. LIB OR loans and U.K. loans, and between 2.0% . to 2.75% for the FILO loan. In addition, Turtle Beach is required to pay a commitment fee on the unused revolving loan commitment at a rate ranging from 0.25% to 0.50% , and letter of credit fees and agent fees. As of March 31, 2019 , interest rates for outstanding borrowings were 6.00% for base rate loans and 3.75% for LIBOR rate loans. The Company is subject to quarterly financial covenant testing if certain availability thresholds are not met or certain other events occur (as defined in the Credit Facility). The Credit Facility requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the last day of each fiscal quarter. The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including the Company ’ s ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and transactions with affiliates, and encumber and dispose of assets. Obligations under the Credit Facility are secured by a security interest and lien upon substantially all of the Company ’ s assets. As of March 31, 2019 , the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $30.0 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
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. The following table presents our income tax expense and effective income tax rate: Three Months Ended March 31, 2019 2018 (in thousands) Income tax expense $ 164 $ 64 Effective income tax rate 5.1 % 3.2 % Income tax expense for the three months ended March 31, 2019 was $0.2 million at an effective tax rate of 5.1% and, $0.1 million at an effective tax rate of 3.2% for the three months ended March 31, 2018 . The effective tax rate was primarily impacted by the full valuation allowance on domestic earnings, foreign entity tax benefits and certain state tax expense. The Company is subject to income taxes domestically and in various foreign jurisdictions. Significant judgment is required in evaluating uncertain tax positions and determining the provision for income taxes. The Company recognizes only those tax positions that meet the more-likely-than-not recognition threshold, and establishes tax reserves for uncertain tax positions that do not meet this threshold. Interest and penalties associated with income tax matters are included in the provision for income taxes in the condensed consolidated statement of operations. As of March 31, 2019 , the Company had uncertain tax positions of $2.8 million , inclusive of $1.1 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 2016 through 2017, and the state tax years open under the statute of limitations are 2014 through 2017. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 (in thousands) Cost of revenue $ (125 ) $ 18 Selling and marketing 116 25 Research and development 74 30 General and administrative 457 150 Total stock-based compensation $ 522 $ 223 The following table presents the stock activity and the total number of shares available for grant as of March 31, 2019 : (in thousands) Balance at December 31, 2018 1,201 Options granted (11 ) Forfeited/Expired shares added back 17 Balance at March 31, 2019 1,207 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, 2018 1,654,729 $ 6.41 7.36 $ 14,374,572 Granted 11,050 13.90 Exercised (5,529 ) 4.20 Forfeited (17,334 ) 12.37 Outstanding at March 31, 2019 1,642,916 $ 6.41 7.10 $ 9,869,975 Vested and expected to vest at March 31, 2019 1,595,081 $ 6.34 7.04 $ 9,633,213 Exercisable at March 31, 2019 785,510 $ 6.68 5.36 $ 3,903,627 Stock options are time-based and the majority are exercisable within 10 years of the date of grant, but only to the extent they have vested. The options generally vest as specified in the option agreements subject to acceleration in certain circumstances. In the event participants in the plan cease to be employed or engaged by the Company, 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. The aggregate intrinsic value of options exercised was $0.1 million for the three months ended March 31, 2019 . 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 the assumptions for options granted during the three months ended March 31, 2019 . Expected term (in years) 6.1 Risk-free interest rate 2.3% - 2.7% Expected volatility 38.3%- 39.3% 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, 2019 was $5.76 . The total estimated fair value of employee options vested during the three months ended March 31, 2019 was $0.1 million . As of March 31, 2019 , total unrecognized compensation cost related to non-vested stock options granted to employees was $2.0 million , which is expected to be recognized over a remaining weighted average vesting period of 2.5 years . Restricted Stock Activity Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2018 265,635 $ 19.29 Granted — — Vested (12,515 ) 22.23 Nonvested restricted stock at March 31, 2019 253,120 $ 19.14 As of March 31, 2019 , total unrecognized compensation cost related to the nonvested restricted stock awards was $4.3 million , which will be recognized over a remaining weighted average vesting period of 1.9 years . Stock Warrants In connection with certain subordinated notes, the Company issued warrants to purchase an aggregate 0.4 million shares and 0.3 million shares of the Company’s common stock at an exercise price of $10.16 and $8.00 per share, respectively, to SG VTB Holdings, LLC, all of which were settled through cashless exercises during the three months ended March 31, 2019. In connection with the retirement of the Series B Preferred Stock in April 2018, the Company issued fully-funded warrants exercisable for an aggregate of 0.5 million shares of its common stock. Under the terms of the warrants, the holders had the right to receive, at their option, a cash payment for the remaining unexercised portion of the warrants upon the Company consummating a Fundamental Transaction (as defined in the warrant agreement, and including any merger, consolidation, sale or other reorganization event in which its common stock is converted into or exchanged for securities, cash or other property). If so elected by the warrant holders, the cash payment will be based on a Black-Scholes pricing model and will be made upon the consummation of a Fundamental Transaction or during the ensuing 30-day period thereafter. As a result of these terms regarding the possible future cash payment, the Company has accounted for the warrants issued in connection with the retirement of the Series B Preferred Stock as a financial instrument obligation that is marked to market each period, with subsequent changes in fair value reported in earnings. On March 30, 2019, the Company and the warrant holders entered into an amendment to the warrant agreement that revises the terms under which warrant holders may exercise their rights under a Fundamental Transaction. As a result of this amendment, the warrants are no longer accounted for as a financial instrument obligation and reported as a liability that is marked to market each period with changes in fair value reported in earnings. The warrants were marked to market through March 30, 2019, the execution date of the amendment, at which time the warrants are accounted for as an equity instrument. The fair value on that date of $6.2 million was reclassified to additional paid-in-capital. For the three months ended March 31, 2019 , the Company recognized an unrealized gain on the warrants of $1.6 million that is included in “Other non-operating expense (income), net” in the Consolidated Statement of Operations. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended March 31, 2019 2018 (in thousands, except per-share data) Net income $ 3,055 $ 1,962 Unrealized gain on financial instrument obligation (1,601 ) — Net income- diluted $ 1,454 $ 1,962 Weighted average common shares outstanding — Basic 14,336 12,347 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock 55 3 Dilutive effect of stock options 1,053 19 Dilutive effect of warrants 816 — Weighted average common shares outstanding — Diluted 16,260 12,369 Net income per share: Basic $ 0.21 $ 0.16 Diluted $ 0.09 $ 0.16 Incremental shares from stock options and restricted stock awards are computed using the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Three Months Ended March 31, 2019 2018 (in thousands) Stock options 145 1,678 Warrants — 765 Unvested restricted stock awards 201 14 Total 346 2,457 |
Segment and Geographical Inform
Segment and Geographical Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Geographical Information | Geographic Information The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2019 2018 (in thousands) North America $ 35,107 $ 32,984 United Kingdom 4,312 4,029 Europe 4,192 3,247 Other 1,235 626 Total net revenues $ 44,846 $ 40,886 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Loss Contingencies [Line Items] | |
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 Sound Corporation) announced that they had entered into the Merger Agreement pursuant to which VTBH would acquire an approximately 80% ownership interest and existing shareholders would maintain an approximately 20% ownership interest in the combined company. Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a merger that allegedly undervalued the Company. VTBH and the Company were named as defendants in these lawsuits under the theory that they had aided and abetted the Company’s Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which, by agreement, was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada case denied the plaintiffs’ motion for a preliminary injunction. Following the closing of the Merger, the Nevada plaintiffs filed a second amended complaint, which made essentially the same allegations and sought monetary damages as well as an order rescinding the Merger. The California plaintiffs dismissed their action without prejudice, and sought to intervene in the Nevada action, which was granted. Subsequent to the intervention, the plaintiffs filed a third amended complaint, which made essentially the same allegations as prior complaints and sought monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. On September 14, 2017, a unanimous en banc panel of the Nevada Supreme Court granted defendants’ petition for writ of mandamus and ordered the trial court to dismiss the complaint but provided a limited basis upon which plaintiffs could seek to amend their complaint. Plaintiffs amended their complaint on December 1, 2017 to assert the same claims in a derivative capacity on behalf of the Company, as a well as in a direct capacity, against VTBH, Stripes Group, LLC, SG VTB Holdings, LLC, and the former members of the Company’s Board of Directors. All defendants moved to dismiss this amended complaint on January 2, 2018, and those motions were denied on March 13, 2018. Defendants petitioned the Nevada Supreme Court to reverse this ruling on April 18, 2018. On June 15, 2018, the Nevada Supreme Court denied defendants’ writ petition without prejudice. The district court subsequently entered a pretrial schedule and set trial for November 2019. On January 18, 2019, the district court certified a class of shareholders of the Company as of January 15, 2014. Commercial Dispute : On July 20, 2016, Bigben Interactive S.A. (“BigBen”) filed a statement of claim before the Regional Court of Berlin, Germany against VTB, which statement of claim was formally serviced upon VTB on June 28, 2017. The statement of claim alleges that VTB’s termination of a distribution agreement by and between BigBen and VTB breached the terms thereof and was invalid, and that BigBen is entitled to damages amounting to €5.0 million plus accrued interest thereon plus certain additional damages as a result of such invalid termination. VTB filed its statement of defense with the court on September 21, 2017. On January 7, 2019, the Regional Court of Berlin issued its judgment on this dispute, dismissing BigBen's claim in its entirety. On February 7, 2019, BigBen Interactive S.A. has filed an appeal against the judgment of the Regional Court of Berlin of January 7, 2019 (the "Judgment"). On April 15, 2019, Big Ben provided the reasoning for its appeal against the Judgment. The Higher Regional Court of Berlin has set VTB a deadline for the reply to the reasoning for the appeal until May 24, 2019. The Higher Regional Court of Berlin will review and decide the provisions of the Judgment specifically relating to preliminary enforceability of the Judgment in separate proceedings and before the appellate proceedings regarding the main part of the Judgment. The Higher Regional Court of Berlin has scheduled an oral hearing regarding the provisions of the Judgment on the preliminary enforceability for June 11, 2019. 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, 2019 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 warranty reserve, which are included in accrued liabilities: Three Months Ended March 31, 2019 2018 (in thousands) Warranty, beginning of period $ 668 $ 472 Warranty costs accrued 243 234 Settlements of warranty claims (207 ) (172 ) Warranty, end of period $ 704 $ 534 Operating Leases - Right of Use Assets The Company adopted ASU 2016-02, Leases , on January 1, 2019. The Company determines whether an arrangement is a lease at inception. The Company leases office spaces that provide for future minimum rental lease payments under non-cancelable operating leases that have remaining lease terms of one year to nine years, and do not contain any material residual value guarantees or material restrictive covenants. The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification March 31, 2019 (in thousands) Right-of-use assets Other assets $ 2,946 Lease liability obligations, current Other current liabilities 1,361 Lease liability obligations, noncurrent Other liabilities 1,885 Total lease liability obligations $ 3,246 Weighted-average remaining lease term (in years) 2.10 Weighted-average discount rate 3.75 % During the three months ended March 31, 2019 , the Company recognized approximately $0.2 million of lease costs in operating expenses and operating cash flows from operating leases of approximately $0.4 million . Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of March 31, 2019 , are as follows: (in thousands) 2019 $ 1,194 2020 1,233 2021 434 2022 117 2023 103 Thereafter 397 Total minimum payments $ 3,478 Less: Imputed interest $ (232 ) Total $ 3,246 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2018 Condensed Consolidated Balance Sheet has been derived from the Company’s audited financial statements included in its Annual Report on Form 10-K filed with the SEC on March 18, 2019 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company's businesses and financial statement presentations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 Company adopted this standard on its effective date of January 1, 2019, using the optional alternative approach, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods. As part of the adoption of the new standard, the Company elected the package of practical expedients that permits entities to not reassess prior conclusions regarding lease identification, lease classification, and initial direct costs under the new standard. Upon adoption of the new standard as it relates to the Company's accounting for real estate operating leases, assets and liabilities increased by approximately $3.3 million . Refer to Note 12 , “Commitments and Contingencies” for further details. In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting , that expands the scope of Topic 718, Compensation—Stock Compensation , to include share-based payments issued to non-employees for goods or services and substantially aligned the accounting for share-based payments to non-employees and employees. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is evaluating the effect that this guidance will have on the financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement , that removes certain disclosure requirements related to the fair value hierarchy, modifies existing disclosure requirements related to measurement uncertainty and adds new disclosure requirements. The new disclosure requirements include disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The provisions of this ASU are effective for years beginning after December 15, 2019, with early adoption permitted. Certain disclosures in the new guidance will need to be applied on a retrospective basis and others on a prospective basis. |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 : March 31, 2019 December 31, 2018 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 10,156 $ 10,156 $ 7,078 $ 7,078 Revolving credit facility $ — $ — $ 37,385 $ 37,385 Financial instrument obligation $ — $ — $ 7,848 $ 7,848 |
Allowance for Sales Return (Tab
Allowance for Sales Return (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Allowance for Sales Returns [Abstract] | |
Schedule of allowances for sales returns | The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended March 31, 2019 2018 (in thousands) Balance, beginning of period $ 9,212 $ 5,533 Reserve accrual 2,621 3,257 Recoveries and deductions, net (5,153 ) (4,530 ) Balance, end of period $ 6,680 $ 4,260 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Items (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Consolidated Balance Sheet Components [Abstract] | |
Schedule of inventory | Inventories consist of the following: March 31, 2019 December 31, 2018 (in thousands) Raw materials $ 1,359 $ 1,410 Finished goods 43,121 48,062 Total inventories $ 44,480 $ 49,472 |
Schedule of property and equipment | Property and equipment, net, consists of the following: March 31, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 1,656 $ 1,616 Software and software development 367 306 Furniture and fixtures 540 535 Tooling 4,161 3,925 Leasehold improvements 1,326 1,325 Demonstration units and convention booths 11,715 11,659 Total property and equipment, gross 19,765 19,366 Less: accumulated depreciation and amortization (14,550 ) (13,510 ) Total property and equipment, net $ 5,215 $ 5,856 |
Other Current Liabilities | Other current liabilities consist of the following: March 31, 2019 December 31, 2018 (in thousands) Accrued royalty $ 2,480 $ 4,069 Accrued employee expenses 4,763 4,570 Accrued legal 1,275 443 Accrued expenses 8,062 9,406 Total other current liabilities $ 16,580 $ 18,488 Other non-operating expense (income), net Other non-operating expense (income), net consists of the following: March 31, 2019 March 31, 2018 (in thousands) Unrealized loss (gain) on financial instrument obligation $ (1,601 ) $ — Other non-operating expense (income) (61 ) (245 ) Total other non-operating expense (income),net $ (1,662 ) $ (245 ) |
Other non-operating expense (income), net | Other non-operating expense (income), net consists of the following: March 31, 2019 March 31, 2018 (in thousands) Unrealized loss (gain) on financial instrument obligation $ (1,601 ) $ — Other non-operating expense (income) (61 ) (245 ) Total other non-operating expense (income),net $ (1,662 ) $ (245 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |
Schedule of Intangible Assets | Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2019 and December 31, 2018 consist of: March 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 4,616 $ 1,180 Foreign currency (1,059 ) (876 ) (183 ) Total Intangible Assets $ 4,737 $ 3,740 $ 997 December 31, 2018 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 5,796 $ 4,539 $ 1,257 Foreign currency (1,158 ) (937 ) (221 ) Total Intangible Assets $ 4,638 $ 3,602 $ 1,036 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | As of March 31, 2019 , estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2019 $ 230 2020 258 2021 217 2022 182 2023 153 Thereafter 140 Total $ 1,180 |
Credit Facilities and Long-Te_2
Credit Facilities and Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | March 31, 2019 December 31, 2018 (in thousands) Revolving credit facility, maturing March 2024 $ — $ 37,385 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax benefit | The following table presents our income tax expense and effective income tax rate: Three Months Ended March 31, 2019 2018 (in thousands) Income tax expense $ 164 $ 64 Effective income tax rate 5.1 % 3.2 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 (in thousands) Cost of revenue $ (125 ) $ 18 Selling and marketing 116 25 Research and development 74 30 General and administrative 457 150 Total stock-based compensation $ 522 $ 223 |
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, 2019 : (in thousands) Balance at December 31, 2018 1,201 Options granted (11 ) Forfeited/Expired shares added back 17 Balance at March 31, 2019 1,207 |
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, 2018 1,654,729 $ 6.41 7.36 $ 14,374,572 Granted 11,050 13.90 Exercised (5,529 ) 4.20 Forfeited (17,334 ) 12.37 Outstanding at March 31, 2019 1,642,916 $ 6.41 7.10 $ 9,869,975 Vested and expected to vest at March 31, 2019 1,595,081 $ 6.34 7.04 $ 9,633,213 Exercisable at March 31, 2019 785,510 $ 6.68 5.36 $ 3,903,627 |
Schedule of weighted-average assumptions | The following are the assumptions for options granted during the three months ended March 31, 2019 . Expected term (in years) 6.1 Risk-free interest rate 2.3% - 2.7% Expected volatility 38.3%- 39.3% Dividend rate 0% |
Restricted stock awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock activity | Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2018 265,635 $ 19.29 Granted — — Vested (12,515 ) 22.23 Nonvested restricted stock at March 31, 2019 253,120 $ 19.14 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 income (loss) per share of common stock attributable to common stockholders: Three Months Ended March 31, 2019 2018 (in thousands, except per-share data) Net income $ 3,055 $ 1,962 Unrealized gain on financial instrument obligation (1,601 ) — Net income- diluted $ 1,454 $ 1,962 Weighted average common shares outstanding — Basic 14,336 12,347 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock 55 3 Dilutive effect of stock options 1,053 19 Dilutive effect of warrants 816 — Weighted average common shares outstanding — Diluted 16,260 12,369 Net income per share: Basic $ 0.21 $ 0.16 Diluted $ 0.09 $ 0.16 |
Schedule of antidilutive securities excluded from computation of diluted net income per share of common stock | Three Months Ended March 31, 2019 2018 (in thousands) Stock options 145 1,678 Warrants — 765 Unvested restricted stock awards 201 14 Total 346 2,457 |
Segment and Geographical Info_2
Segment and Geographical Information Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Geographic Information [Abstract] | |
Revenue from External Customers by Geographic Areas [Table Text Block] | The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2019 2018 (in thousands) North America $ 35,107 $ 32,984 United Kingdom 4,312 4,029 Europe 4,192 3,247 Other 1,235 626 Total net revenues $ 44,846 $ 40,886 |
Commitment and Contingencies (T
Commitment and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Operating Leased Assets [Line Items] | |
Schedule of Product Warranty Liability | The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended March 31, 2019 2018 (in thousands) Warranty, beginning of period $ 668 $ 472 Warranty costs accrued 243 234 Settlements of warranty claims (207 ) (172 ) Warranty, end of period $ 704 $ 534 |
Lessee, Operating Lease, Disclosure | Balance Sheet Classification March 31, 2019 (in thousands) Right-of-use assets Other assets $ 2,946 Lease liability obligations, current Other current liabilities 1,361 Lease liability obligations, noncurrent Other liabilities 1,885 Total lease liability obligations $ 3,246 Weighted-average remaining lease term (in years) 2.10 Weighted-average discount rate 3.75 % |
Schedule of Future Minimum Rental Payments for Operating Leases | Approximate future minimum lease payments for our right of use assets over the remaining lease periods as of March 31, 2019 , are as follows: (in thousands) 2019 $ 1,194 2020 1,233 2021 434 2022 117 2023 103 Thereafter 397 Total minimum payments $ 3,478 Less: Imputed interest $ (232 ) Total $ 3,246 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Operating Lease, Liability | $ 3,246 | $ 3,300 |
Fair Value Measurement (Details
Fair Value Measurement (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instrument Obligation | $ 0 | $ 7,848 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 10,156 | 7,078 |
Financial Instrument Obligation | 0 | 7,848 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 10,156 | 7,078 |
Financial Instrument Obligation | 7,848 | |
Revolving credit facility, maturing March 2024 | Line of Credit [Member] | Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 37,385 |
Revolving credit facility, maturing March 2024 | 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 | $ 0 | $ 37,385 |
Allowance for Sales Return (Det
Allowance for Sales Return (Details) - Sales Returns and Allowances [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Sales returns reserve, beginning balance | $ 9,212 | $ 5,533 |
Reserve accrual | 2,621 | 3,257 |
Recoveries and deductions, net | (5,153) | (4,530) |
Sales returns reserve, ending balance | $ 6,680 | $ 4,260 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Items Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheet Components [Abstract] | ||
Raw materials | $ 1,359 | $ 1,410 |
Finished goods | 43,121 | 48,062 |
Total inventories | $ 44,480 | $ 49,472 |
Composition of Certain Financ_4
Composition of Certain Financial Statement Items Property and equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 19,765 | $ 19,366 |
Less: accumulated depreciation and amortization | (14,550) | (13,510) |
Total property and equipment, net | 5,215 | 5,856 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,656 | 1,616 |
Software and software development | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 367 | 306 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 540 | 535 |
Tooling | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 4,161 | 3,925 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,326 | 1,325 |
Demonstration units and convention booths | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 11,715 | $ 11,659 |
Composition of Certain Financ_5
Composition of Certain Financial Statement Items Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Condensed Consolidated Balance Sheet Components [Abstract] | ||
Accrued royalty | $ 2,480 | $ 4,069 |
Accrued employee expenses | 4,763 | 4,570 |
Accrued legal | 1,275 | 443 |
Accrued expenses | 8,062 | 9,406 |
Other current liabilities | $ 16,580 | $ 18,488 |
Composition of Certain Financ_6
Composition of Certain Financial Statement Items Unrealized Gain (Loss) on Financial Instrument Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Non-Operating Expense (Income) [Line Items] | ||
Debt and Equity Securities, Gain (Loss) | $ (1,601) | $ 0 |
Total other non-operating expense (income),net | 1,662 | 245 |
Other Nonoperating Income (Expense) [Member] | ||
Schedule of Non-Operating Expense (Income) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), Unrealized | (61) | (245) |
Debt and Equity Securities, Gain (Loss) | (1,601) | 0 |
Total other non-operating expense (income),net | $ (1,662) | $ (245) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Finite-lived Intangible Assets [Roll Forward] | ||
Total intangible assets, gross carrying value | $ 4,737 | $ 4,638 |
Finite-lived intangible assets, accumulated amortization | 3,740 | 3,602 |
Total intangible assets, net book value | 997 | 1,036 |
Total | 1,180 | |
Foreign currency | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Finite-lived intangible assets, gross carrying value | (1,059) | (1,158) |
Finite-lived intangible assets, accumulated amortization | (876) | (937) |
Total | (183) | (221) |
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 | 4,616 | 4,539 |
Total | $ 1,180 | $ 1,257 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2019 | $ 230 |
2020 | 258 |
2021 | 217 |
2022 | 182 |
2023 | 153 |
Thereafter | 140 |
Total | $ 1,180 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 62 | $ 79 |
Acquisition of Lygo International Limited | Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful life | 13 years |
Credit Facilities and Long-Te_3
Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Interest Expense, Debt | $ 200 | $ 1,500 | |
Interest Expense, Related Party | 0 | 700 | |
Amortization of debt financing costs | 47 | $ 394 | |
Revolving credit facilities | Revolving credit facility, maturing March 2024 | |||
Debt Instrument [Line Items] | |||
Total outstanding debt | $ 0 | $ 37,385 |
Credit Facilities and Long-Te_4
Credit Facilities and Long-Term Debt - Credit Facility (Details) - Revolving credit facility, maturing March 2024 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | ||
Expiration date | Mar. 5, 2024 | |
Maximum borrowing capacity | $ 80,000,000 | |
Line of Credit Facility, Capacity Available for Trade Purchases | 6,800,000 | |
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 40,000,000 | |
Debt Instrument, Covenant, Current Fixed Charge Ratio Required, Minimum | 1 | |
Remaining borrowing capacity | $ 30,000,000 | |
Minimum | ||
Line of Credit Facility [Line Items] | ||
Unused commitment fee, percent | 0.25% | |
Maximum | ||
Line of Credit Facility [Line Items] | ||
Unused commitment fee, percent | 0.50% | |
Base rate | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 6.00% | |
Base rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 0.50% | |
Base rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 1.25% | |
London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Adjustable Rate Loans [Member] | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.00% | |
Adjustable Rate Loans [Member] | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate | 2.75% | |
UK Borrower | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 12,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Loss Carryforwards [Line Items] | ||
Income tax expense | $ 164,000 | $ 64,000 |
Effective tax rate | 5.10% | 3.20% |
Unrecognized Tax Benefits, Inclusive of Interest and Penalties | $ 2,800,000 | |
Interest and penalties | $ 1,100,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,642,916 | 1,654,729 | |
Stock-based compensation | $ 522 | $ 223 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 17,334 | ||
Forfeited/Expired shares added back | 17,000 | ||
Cost of revenue | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ (125) | 18 | |
Selling and marketing | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 116 | 25 | |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 74 | 30 | |
General and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 457 | $ 150 |
Stock-Based Compensation - Shar
Stock-Based Compensation - Shares Available for Grant (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward] | |
Balance, beginning of period (in shares) | 1,201 |
Options granted (in shares) | 11 |
Forfeited/Expired shares added back | 17 |
Balance, end of period (in shares) | 1,207 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding beginning of period (in shares) | 1,654,729 | |
Granted (in shares) | 11,050 | |
Exercised (in shares) | (5,529) | |
Forfeited (in shares) | (17,334) | |
Outstanding end of period (in shares) | 1,642,916 | 1,654,729 |
Vested and expected to vest (in shares) | 1,595,081 | |
Exercisable (in shares) | 785,510 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding beginning of period (in dollars per share) | $ 6.41 | |
Granted (in dollars per share) | 13.90 | |
Exercised (in dollars per share) | 4.20 | |
Forfeited (in dollars per share) | 12.37 | |
Outstanding end of period (in dollars per share) | 6.41 | $ 6.41 |
Vested and expected to vest (in dollars per share) | 6.34 | |
Exercisable (in dollars per share) | $ 6.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted average remaining contractual term | 7 years 1 month 7 days | 7 years 4 months 11 days |
Vested and expected to vest, weighted average remaining contractual term | 7 years 14 days | |
Exercisable, weighted average remaining contractual term | 5 years 3 months 40 days | |
Outstanding, intrinsic value | $ 9,869,975 | $ 14,374,572 |
Vested and expected to vest, intrinsic value | 9,633,213 | |
Exercisable, intrinsic value | $ 3,903,627 | |
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 6 months 10 days |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate, minimum | 2.30% |
Risk-free interest rate, maximum | 2.70% |
Expected volatility, minimum | 38.30% |
Expected volatility, maximum | 39.30% |
Expected dividend rate | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected term (in years) | 6 years 1 month |
Stock-Based Compensation - RSA
Stock-Based Compensation - RSA Activity (Details) - Restricted stock awards | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
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 | 265,635 |
Restricted stock granted (in shares) | shares | 0 |
Vested (in shares) | shares | (12,515) |
Outstanding end of period (in shares) | shares | 253,120 |
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 | $ 19.29 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 22.23 |
Outstanding end of period (in dollars per share) | $ / shares | $ 19.14 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 30 days |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Narrative) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Nov. 30, 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 | $ 0.1 | |
Weighted average grant date fair value of options granted (in dollars per share) | $ 5.76 | |
Estimated grant date fair value of options vested | $ 0.1 | |
Total unrecognized compensation cost related to stock options | $ 2 | |
VTB Holdings, Inc | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Class of Warrant or Right, Outstanding | 0.3 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 8 | |
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 Income (Loss) Per Share - C
Net Income (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, 2019 | Mar. 31, 2018 | |
Basic and diluted: | ||
Net income | $ 3,055 | $ 1,962 |
Unrealized loss (gain) on financial instrument obligation | 1,601 | 0 |
Net Income (Loss) Attributable to Parent, Diluted | $ 1,454 | $ 1,962 |
Basic: | ||
Weighted-average common shares outstanding, basic (in shares) | 14,336 | 12,347 |
Incremental Common Shares Attributable to Dilutive Effect of Restricted Stock Awards | 55 | 3 |
Dilutive effect of stock options | 1,053 | 19 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 816 | 0 |
Diluted: | ||
Weighted-average common shares outstanding, diluted (in shares) | 16,260 | 12,369 |
Net income per share: | ||
Basic (in dollars per share) | $ 0.21 | $ 0.16 |
Diluted (in dollars per share) | $ 0.09 | $ 0.16 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Antidilutive Securities (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 346 | 2,457 |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 145 | 1,678 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 0 | 765 |
Restricted stock awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share | 201 | 14 |
Segment and Geographical Info_3
Segment and Geographical Information - Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 44,846 | $ 40,886 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 35,107 | 32,984 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 4,312 | 4,029 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 4,192 | 3,247 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 1,235 | $ 626 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | Aug. 05, 2013 | |
Operating Leased Assets [Line Items] | ||||
Operating Leases, Future Minimum Payments Due | $ 1,194 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 1,233 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 434 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 117 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 103 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 397 | |||
Total minimum lease payments | 3,478 | |||
Less: Imputed interest | (232) | |||
Operating Lease, Liability | 3,246 | $ 3,300 | ||
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty accrual, beginning balance | 668 | $ 472 | ||
Warranty costs accrued | 243 | 234 | ||
Settlements of warranty claims | (207) | (172) | ||
Warranty accrual, ending balance | $ 704 | $ 534 | ||
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | VTB Holdings, Inc | ||||
Operating Leased Assets [Line Items] | ||||
Ownership percentage | 80.00% | |||
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | Parametric Sound Corporation | ||||
Operating Leased Assets [Line Items] | ||||
Ownership percentage | 20.00% |
Commitments and Contingencies O
Commitments and Contingencies Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Expense | $ 200 | |
Operating Lease, Payments | 400 | |
Finance Lease, Right-of-Use Asset | 2,946 | |
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months | 1,361 | |
Operating Lease, Liability, Noncurrent | 1,885 | |
Operating Lease, Liability | $ 3,246 | $ 3,300 |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 1 month 5 days | |
Weighted Average [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 3.75% |