Turtle Beach (TBCH) 10-Q 9 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 31, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Turtle Beach Corporation
Entity Central Index Key	0001493761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		14,497,016
Entity Shell Company	false
Trading Symbol	HEAR
Entity Current Reporting Status	Yes
Entity File Number	001-35465
Entity Tax Identification Number	272767540
Entity Address, Address Line One	11011 Via Frontera
Entity Address, Address Line Two	Suite A/B
Entity Address, City or Town	San Diego
Entity Address, State or Province	California
Entity Address, Postal Zip Code	92127
City Area Code	888
Local Phone Number	496-8001

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Cash and cash equivalents	$ 3,446	$ 7,078
Accounts receivable, net	18,402	52,797
Inventories	50,420	49,472
Prepaid expenses and other current assets	5,418	4,469
Total Current Assets	77,686	113,816
Property and equipment, net	5,717	5,856
Goodwill	5,940
Intangible assets, net	8,324	1,036
Other assets	4,158	1,212
Total Assets	101,825	121,920
Current Liabilities:
Revolving credit facility	10,802	37,385
Accounts payable	22,116	17,724
Other current liabilities	19,649	18,488
Total Current Liabilities	52,567	73,597
Deferred income taxes	187	187
Financial instrument obligation		7,848
Other liabilities	4,663	2,792
Total Liabilities	57,417	84,424
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value - 100,000,000 shares authorized; 14,493,544 and 14,268,184 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively	14	14
Additional paid-in capital	175,644	169,421
Accumulated deficit	(130,781)	(131,463)
Accumulated other comprehensive loss	(469)	(476)
Total Stockholders’ Equity	44,408	37,496
Total Liabilities and Stockholders’ Equity	$ 101,825	$ 121,920

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
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	14,493,544	14,268,184
Common stock shares outstanding	14,493,544	14,268,184

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Net revenue	$ 41,330,000	$ 60,805,000	$ 86,176,000	$ 101,691,000
Cost of revenue	28,159,000	40,528,000	58,218,000	66,385,000
Gross profit	13,171,000	20,277,000	27,958,000	35,306,000
Operating expenses:
Selling and marketing	7,550,000	6,818,000	14,431,000	12,747,000
Research and development	1,734,000	1,327,000	3,190,000	2,656,000
General and administrative	6,194,000	3,863,000	10,843,000	7,848,000
Total operating expenses	15,478,000	12,008,000	28,464,000	23,251,000
Operating income (loss)	(2,307,000)	8,269,000	(506,000)	12,055,000
Interest expense	111,000	1,258,000	355,000	3,263,000
Other non-operating expense (income), net	(70,000)	9,029,000	(1,732,000)	8,784,000
Income (loss) before income tax	(2,348,000)	(2,018,000)	871,000	8,000
Income tax expense	25,000	300,000	189,000	364,000
Net income (loss)	$ (2,373,000)	$ (2,318,000)	$ 682,000	$ (356,000)
Net income (loss) per share
Basic (in dollars per share)	$ (0.16)	$ (0.17)	$ 0.05	$ (0.03)
Diluted (in dollars per share)	$ (0.16)	$ (0.17)	$ (0.06)	$ (0.03)
Weighted average number of shares:
Basic (in shares)	14,586	13,401	14,462	12,877
Diluted (in shares)	14,586	13,401	15,699	12,877

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (2,373)	$ (2,318)	$ 682	$ (356)
Foreign currency translation adjustment	(158)	(270)	7	(115)
Other comprehensive income (loss)	(158)	(270)	7	(115)
Comprehensive income (loss)	$ (2,531)	$ (2,588)	$ 689	$ (471)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 682,000	$ (356,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,180,000	2,204,000
Amortization of intangible assets	221,000	156,000
Amortization of debt financing costs	94,000	642,000
Stock-based compensation	1,525,000	822,000
Accrued interest on Series B redeemable preferred stock		501,000
Paid-in-kind interest		1,256,000
Deferred income taxes		235,000
Reversal of sales returns reserve	(5,166,000)	(489,000)
Provision for doubtful accounts		144,000
Provision for obsolete inventory	1,602,000	1,766,000
Loss on disposal of property and equipment		93,000
Unrealized loss (gain) on financial instrument obligation	(1,601,000)	8,619,000
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	40,979,000	15,692,000
Inventories	4,461,000	(2,291,000)
Accounts payable	(1,066,000)	16,461,000
Prepaid expenses and other assets	(950,000)	(1,723,000)
Income taxes payable	(405,000)	293,000
Other liabilities	(4,384,000)	2,316,000
Net cash provided by operating activities	38,172,000	46,341,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(1,007,000)	(402,000)
Acquisition of a business, net of cash acquired	(12,667,000)
Net cash used for investing activities	(13,674,000)	(402,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	99,453,000	81,991,000
Repayment of revolving credit facilities	(126,036,000)	(120,458,000)
Proceeds of term loan		3,265,000
Repayment of term loan		(2,485,000)
Repayment of subordinated notes - related party		(3,265,000)
Proceeds from exercise of stock options and warrants	94,000	734,000
Repurchase of common stock	(1,499,000)
Repurchase of common stock to satisfy employee tax withholding obligations	(145,000)
Debt financing costs		(405,000)
Net cash used for financing activities	(28,133,000)	(42,013,000)
Effect of exchange rate changes on cash and cash equivalents	3,000	(65,000)
Net increase (decrease) in cash and cash equivalents	(3,632,000)	3,861,000
Cash and cash equivalents - beginning of period	7,078,000	5,247,000
Cash and cash equivalents - end of period	3,446,000	9,108,000
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	308,000	763,000
Cash paid for income taxes	447,000
Reclassification of financial instrument obligation	$ 6,248,000
Series B Preferred Stock
CASH FLOWS FROM FINANCING ACTIVITIES
Settlement of Series B Preferred Stock		(1,390,000)
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Exchange of Series B Preferred Stock		$ 18,032,000

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Series B Preferred Stock	Common stock	Common stockSeries B Preferred Stock	Additional Paid-in Capital	Additional Paid-in CapitalSeries B Preferred Stock	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2017	$ (22,157)		$ 12		$ 148,082		$ (170,048)	$ (203)
Beginning Balance, shares at Dec. 31, 2017			12,349,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of the adoption of ASC 606	(605)						(605)
Net income (loss)	1,962						1,962
Other comprehensive income, net of tax	155							155
Stock-based compensation	223				223
Ending Balance at Mar. 31, 2018	(20,422)		$ 12		148,305		(168,691)	(48)
Ending Balance, shares at Mar. 31, 2018			12,349,000
Beginning Balance at Dec. 31, 2017	(22,157)		$ 12		148,082		(170,048)	(203)
Beginning Balance, shares at Dec. 31, 2017			12,349,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(356)
Other comprehensive income, net of tax	(115)
Ending Balance at Jun. 30, 2018	(6,202)		$ 14		165,111		(171,009)	(318)
Ending Balance, shares at Jun. 30, 2018			13,794,000
Beginning Balance at Mar. 31, 2018	(20,422)		$ 12		148,305		(168,691)	(48)
Beginning Balance, shares at Mar. 31, 2018			12,349,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2,318)						(2,318)
Other comprehensive income, net of tax	(270)							(270)
Stock issued during period, value, series B exchange		$ 15,475		$ 1		$ 15,474
Stock issued during period, shares, series B exchange				1,307,000
Issuance of restricted stock, shares			28,000
Stock options exercised	734		$ 1		733
Stock options exercised, shares			110,000
Stock-based compensation	599				599
Ending Balance at Jun. 30, 2018	(6,202)		$ 14		165,111		(171,009)	(318)
Ending Balance, shares at Jun. 30, 2018			13,794,000
Beginning Balance at Dec. 31, 2018	37,496		$ 14		169,421		(131,463)	(476)
Beginning Balance, shares at Dec. 31, 2018			14,268,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	3,055						3,055
Other comprehensive income, net of tax	165							165
Reclassification of financial instrument obligation	6,248				6,248
Issuance of restricted stock, shares			12,000
Repurchase of common stock and retirement of related treasury shares	(101)				(101)
Repurchase of common stock and retirement of related treasury shares, shares			(6,000)
Issuance of common stock upon exercise of warrants, shares			295,000
Stock options exercised	23				23
Stock options exercised, shares			6,000
Stock-based compensation	522				522
Ending Balance at Mar. 31, 2019	47,408		$ 14		176,113		(128,408)	(311)
Ending Balance, shares at Mar. 31, 2019			14,575,000
Beginning Balance at Dec. 31, 2018	37,496		$ 14		169,421		(131,463)	(476)
Beginning Balance, shares at Dec. 31, 2018			14,268,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	682
Other comprehensive income, net of tax	$ 7
Stock options exercised, shares	27,225
Ending Balance at Jun. 30, 2019	$ 44,408		$ 14		175,644		(130,781)	(469)
Ending Balance, shares at Jun. 30, 2019			14,493,000
Beginning Balance at Mar. 31, 2019	47,408		$ 14		176,113		(128,408)	(311)
Beginning Balance, shares at Mar. 31, 2019			14,575,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(2,373)						(2,373)
Other comprehensive income, net of tax	(158)							(158)
Issuance of restricted stock, shares			56,000
Repurchase of common stock and retirement of related treasury shares	(44)				(44)
Repurchase of common stock and retirement of related treasury shares, shares			(4,000)
Common stock buyback	(1,499)				(1,499)
Common stock buyback, shares			(156,000)
Stock options exercised	71				71
Stock options exercised, shares			22,000
Stock-based compensation	1,003				1,003
Ending Balance at Jun. 30, 2019	$ 44,408		$ 14		$ 175,644		$ (130,781)	$ (469)
Ending Balance, shares at Jun. 30, 2019			14,493,000

Background and Basis of Present

Background and Basis of Presentation	6 Months Ended
	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Background and Basis of Presentation	Note 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 gaming accessory company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach® and ROCCAT® 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. ROCCAT is a leading provider of gaming keyboards, mice and other accessories focused in the personal computer peripherals market. 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	6 Months Ended
	Jun. 30, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 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 the Company’s consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. The Company can give no assurance that actual results will not differ from those estimates. There have been no material changes to the 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 In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting Topic 718, Compensation—Stock Compensation In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Acquisitions	Note 3. Acquisitions ROCCAT On May 31, 2019, the Company completed its acquisition of the business and assets of ROCCAT, a provider of gaming keyboards, mice and other accessories for a purchase price of approximately revenues for the years ended December 31, 2019 and 2020 as provided in the asset purchase agreement The preliminary ROCCAT purchase price allocation as of May 31, 2019, is shown in the following table: (In thousands) Amount Receivables $ 1,418 Inventories 7,012 Property and equipment 1,110 Intangible assets 7,511 Other long-term assets 461 Accounts payable (5,535 ) Accrued and other current liabilities (3,211 ) Contingent consideration (1,711 ) Other non-current liabilities (328 ) Total identifiable net assets 6,727 Goodwill 5,940 Total consideration $ 12,667 The fair values of ROCCAT’s assets and liabilities are provisional and were determined based on preliminary estimates and assumptions that management believes are reasonable. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation. These adjustments will primarily relate to certain short-term assets, intangible assets, and certain liabilities including contingent consideration. The final determination of the fair value of certain assets and liabilities will be completed as soon as the necessary information is available, including the completion of a valuation of the tangible and intangible assets and the contingent consideration, but no later than one year from the acquisition date. The goodwill from the acquisition of ROCCAT, which is fully deductible for tax purposes, consists largely of synergies and economies of scale expected from combing the operations of ROCCAT and the Company’s existing business. The estimate of fair value of ROCCAT’s identifiable intangible assets was determined primarily using the “income approach,” which requires a forecast of all of the expected future cash flows either through the use of the multi-period excess earnings method or the relief-from-royalty method. Some of the more significant assumptions inherent in the development of intangible asset values include: the amount and timing of projected future cash flows, the discount rate selected to measure the risks inherent in the future cash flows, the assessment of the intangible asset’s life cycle, as well as other factors. The following table summarizes key information underlying intangible assets related to the ROCCAT acquisition: (In thousands) Life Amount Customer relationships 7 Years $ 5,028 Tradenames 5 Years 1,602 Developed technology 7 Years 833 Non-compete agreements 3 Years 48 Total $ 7,511 For the three and six months ended June 30, 2019, ROCCAT had revenue and an operating loss of $1.3 million and $0.4 million, respectively.

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurement	Note 4. Fair Value Measurement The Company follows a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, debt instruments and certain warrants. As of June 30, 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 as of December 31, 2018 June 30, 2019 December 31, 2018 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 3,446 $ 3,446 $ 7,078 $ 7,078 Revolving credit facility $ 10,802 $ 10,802 $ 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 Returns

Allowance for Sales Returns	6 Months Ended
	Jun. 30, 2019
Allowance For Sales Returns [Abstract]
Allowance for Sales Returns	Note The following table provides the changes in our sales return reserve, which is classified as a reduction of accounts receivable: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 6,680 $ 4,260 $ 9,212 $ 5,533 Reserve accrual 2,659 5,184 5,280 8,441 Recoveries and deductions, net (5,293 ) (4,400 ) (10,446 ) (8,930 ) Balance, end of period $ 4,046 $ 5,044 $ 4,046 $ 5,044

Composition of Certain Financia

Composition of Certain Financial Statement Items	6 Months Ended
	Jun. 30, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Composition of Certain Financial Statement Items	Note Inventories Inventories consist of the following: June 30, 2019 December 31, 2018 (in thousands) Raw materials $ 3,039 $ 1,410 Finished goods 47,381 48,062 Total inventories $ 50,420 $ 49,472 Property and Equipment, net Property and equipment, net, consists of the following: June 30, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 1,687 $ 1,616 Software and software development 537 306 Furniture and fixtures 564 535 Tooling 5,313 3,925 Leasehold improvements 1,325 1,325 Demonstration units and convention booths 11,981 11,659 Total property and equipment, gross 21,407 19,366 Less: accumulated depreciation and amortization (15,690 ) (13,510 ) Total property and equipment, net $ 5,717 $ 5,856 Other Current Liabilities Other current liabilities consist of the following: June 30, 2019 December 31, 2018 (in thousands) Accrued customer fees $ 3,699 $ 570 Accrued royalty 2,506 4,069 Accrued employee expenses 2,423 4,570 Contingent consideration 1,711 — Accrued freight 1,497 1,044 Accrued expenses 7,813 8,235 Total other current liabilities $ 19,649 $ 18,488 Other non-operating expense (income), net Other non-operating expense (income), net consists of the following: June 30, 2019 June 30, 2018 (in thousands) Unrealized loss (gain) on financial instrument obligation $ (1,601 ) $ 8,619 Other non-operating expense (income) (131 ) 165 Total other non-operating expense (income),net $ (1,732 ) $ 8,784

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets	Note Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2019 and December 31, 2018 consist of: June 30, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 10,824 $ 4,753 $ 6,071 Tradenames 1,602 27 1,575 Developed technology 833 10 823 Non-compete agreement 48 1 47 Foreign currency (1,173 ) (982 ) (192 ) Total Intangible Assets $ 12,134 $ 3,809 $ 8,324 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. In May 2019, the Company completed its acquisition of ROCCAT. The acquired intangible assets relating to developed technology, customer relationships, trade name and non-compete agreement are subject to amortization. Refer to Note 3, “Acquisitions” for additional information related to ROCCAT’s identifiable intangible assets. Amortization expense related to definite lived intangible assets of $0.2 million and $0.2 million was recognized for the three and six months ended June 30, 2019, respectively, and $0.1 million and $0.2 million for the three and six months ended June 30, 2018, respectively. As of June 30, 2019, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2019 $ 643 2020 1,431 2021 1,390 2022 1,347 2023 1,310 Thereafter 2,395 Total $ 8,516 Changes in the carrying values of goodwill for six months ended June 30, 2019 are: (in thousands) Balance as of January 1, 2019 $ — ROCCAT Acquisition 5,940 Balance as of June 30, 2019 $ 5,940

Revolving Credit Facility and L

Revolving Credit Facility and Long-Term Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Revolving Credit Facility and Long-Term Debt	Note June 30, 2019 December 31, 2018 (in thousands) Revolving credit facility, maturing March 2024 $ 10,802 $ 37,385 Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $0.1 million and $0.4 million for the three and six months ended June 30, 2019, respectively, and $1.0 million and $2.5 million for the three and six months ended June 30, 2018, respectively. This includes no related party interest for the three and six months ended June 30, 2019, and $0.7 million and $1.3 million of related party interest for the three and six months ended June 30, 2018, respectively, in connection with the subordinated notes. Amortization of deferred financing costs was $47,000 and $0.1 million for the three and six months ended June 30, 2019, respectively, and $0.2 million and $0.6 million for the three and six months ended June 30, 2018, respectively. Revolving Credit Facility On December 17, 2018, Turtle Beach and certain of its subsidiaries entered into an amended and restated loan, guaranty and security agreement (“Credit Facility”) with Bank of America, N.A. (“Bank of America”), as Agent, Sole Lead Arranger and Sole Bookrunner, which replaced the then existing asset-based revolving loan agreement. The Credit Facility, which expires on March 5, 2024, provides for a line of credit of up to $80 million inclusive of a sub-facility limit of $12 million for TB Europe, a wholly-owned subsidiary of Turtle Beach. In addition, the Credit Facility provides for a $40 million accordion feature and the ability to increase the borrowing base with a FILO Loan of up to $6.8 million. On May 31, 2019, the Company amended the Credit Facility to provide for, amongst other items, (i) the addition of TBC Holding Company LLC, a wholly-owned subsidiary of VTB, as an obligor and (ii) the ability to make investments in TB Germany GmbH, a wholly-owned subsidiary of TB Europe, of up to $4 million in connection with the acquisition of ROCCAT and up to an additional $4 million annually. The maximum credit availability for loans and letters of credit under the Credit Facility is governed by a borrowing base determined by the application of specified percentages to certain eligible assets, primarily eligible trade accounts receivable and inventories, and is subject to discretionary reserves and revaluation adjustments. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes. Amounts outstanding under the Credit Facility bear interest at a rate equal to either a rate published by Bank of America or the LIBOR rate, plus in each case, an applicable margin, which is between 0.50% to 1.25% for base rate loans and between 1.25% to 2.00% for U.S. LIBOR loans and U.K. loans, and between 2.00% to 2.75% for the FILO loan. In addition, Turtle Beach is required to pay a commitment fee on the unused revolving loan commitment at a rate ranging from 0.25% to 0.50% and letter of credit fees and agent fees. As of June 30, 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 June 30, 2019, the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $20.0 million.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note In order to determine the quarterly provision for income taxes, the Company uses 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, the Company determines the provision for income taxes based on actual year-to-date income (loss). Certain significant or unusual items are separately recognized as discrete items in the period during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The following table presents our income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Income tax expense $ 25 $ 300 $ 189 $ 364 Effective income tax rate (1.1 %) (14.9 %) 21.7 % 4,550.0 % Income tax expense for the three and six months ended June 30, 2019 was $25,000 at an effective tax rate of (1.1%) and $0.2 million at an effective tax rate of 21.7%, respectively. Income tax expense for the three and six months ended June 30, 2018 was $0.3 million at an effective tax rate of (14.9%) and $0.4 million at an effective tax rate of 4,550.0%. The effective tax rate was primarily impacted by the full valuation allowance on domestic earnings, foreign entity tax benefits, certain state tax expense, and the unrealized loss (gain) on a financial instrument obligation. 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 statements of operations. As of June 30, 2019, the Company had uncertain tax positions of $3.0 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	6 Months Ended
	Jun. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Cost of revenue $ 93 $ 313 $ (32 ) $ 331 Selling and marketing 174 30 290 55 Research and development 114 33 188 63 General and administrative 622 223 1,079 373 Total stock-based compensation $ 1,003 $ 599 $ 1,525 $ 822 The following table presents the stock activity and the total number of shares available for grant as of June 30, 2019: (in thousands) Balance at December 31, 2018 1,202 Plan amendment 1,440 Options granted (492 ) Restricted stock granted (230 ) Forfeited/Expired shares added back 19 Balance at June 30, 2019 1,939 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 491,540 11.99 Exercised (27,225 ) 3.45 Forfeited (18,748 ) 12.19 Outstanding at June 30, 2019 2,100,296 $ 7.71 7.51 $ 10,033,921 Vested and expected to vest at June 30, 2019 2,041,848 $ 7.66 7.46 $ 9,827,413 Exercisable at June 30, 2019 966,075 $ 6.14 5.74 $ 5,488,709 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 $0.2 million for the six months ended June 30, 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 six months ended June 30, 2019. Expected term (in years) 6.1 Risk-free interest rate 1.8% - 2.8% Expected volatility 37.8% - 38.6% 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 six months ended June 30, 2019 was $4.94. The total estimated fair value of employee options vested during the six months ended June 30, 2019 was $0.4 million. As of June 30, 2019, total unrecognized compensation cost related to non-vested stock options granted to employees was $4.0 million, which is expected to be recognized over a remaining weighted average vesting period of 2.97 years. Restricted Stock Activity Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2018 265,636 $ 19.29 Granted 230,478 12.10 Vested (68,932 ) 8.90 Nonvested restricted stock at June 30, 2019 427,182 $ 17.08 As of June 30, 2019, total unrecognized compensation cost related to the nonvested restricted stock awards was $6.5 million, which will be recognized over a remaining weighted average vesting period of 2.84 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 six months ended June 30, 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 six months ended June 30, 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 Condensed Consolidated Statement of Operations.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Net Income (Loss) Per Share	Note The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands, except per-share data) Net income (loss) $ (2,373 ) $ (2,318 ) $ 682 $ (356 ) Unrealized gain on financial instrument obligation — — (1,601 ) — Net income (loss) - diluted $ (2,373 ) $ (2,318 ) $ (919 ) $ (356 ) Weighted average common shares outstanding — Basic 14,586 13,401 14,462 12,877 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — — 27 — Dilutive effect of stock options — — 527 — Dilutive effect of warrants — — 683 — Weighted average common shares outstanding — Diluted 14,586 13,401 15,699 12,877 Net income (loss) per share: Basic $ (0.16 ) $ (0.17 ) $ 0.05 $ (0.03 ) Diluted $ (0.16 ) $ (0.17 ) $ (0.06 ) $ (0.03 ) Incremental shares from stock options and restricted stock awards are computed using the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises and unrecognized compensation expense for outstanding awards. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Stock options 2,086 1,945 457 1,833 Warrants 550 1,314 — 965 Unvested restricted stock awards 435 62 192 52 Total 3,071 3,321 649 2,850

Geographic Information

Geographic Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Geographic Information	Note The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) North America $ 28,617 $ 45,967 $ 63,724 $ 78,951 United Kingdom 3,834 7,628 8,146 11,657 Europe 7,384 5,858 11,576 9,105 Other 1,495 1,352 2,730 1,978 Total net revenues $ 41,330 $ 60,805 $ 86,176 $ 101,691

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 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 on January 7, 2019 (the "Judgment"). On April 15, 2019, Big Ben provided the reasoning for its appeal against the Judgment. On June 21, VTB replied to the reasoning for the appeal. Upon Big Ben’s application, the Higher Regional Court of Berlin has reviewed 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. On July 9, 2019, the Higher Regional Court of Berlin completely rejected Big Ben’s applications with regard to the suspension of the preliminary enforceability of the Judgment. The Higher Regional Court of Berlin has scheduled an oral hearing on the main part of Big Ben’s appeal of the Judgment for November 19, 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 June 30, 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 The Company warrants its products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. Warranties are generally fulfilled by replacing defective products with new products. The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Warranty, beginning of period $ 704 $ 534 $ 668 $ 472 Warranty costs accrued 258 210 501 444 Settlements of warranty claims (210 ) (162 ) (417 ) (334 ) Warranty, end of period $ 752 $ 582 $ 752 $ 582 Operating Leases - Right of Use Assets The Company adopted ASU 2016-02, Leases The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2019 (in thousands) Right-of-use assets Other assets $ 3,034 Lease liability obligations, current Other current liabilities $ 1,439 Lease liability obligations, noncurrent Other liabilities 1,871 Total lease liability obligations $ 3,310 Weighted-average remaining lease term (in years) 2.2 Weighted-average discount rate 3.75 % During the six months ended June 30, 2019, the Company recognized approximately $0.4 million of lease costs in operating expenses and operating cash flows from operating leases of approximately $0.8 million. Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2019, are: (in thousands) 2019 $ 848 2020 1,365 2021 566 2022 216 2023 103 Thereafter 397 Total minimum payments 3,495 Less: Imputed interest (185 ) Total $ 3,310

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 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 In June 2018, the FASB issued ASU 2018-07, Improvements to Non-employee Share-Based Payment Accounting Topic 718, Compensation—Stock Compensation In August 2018, the FASB issued ASU No. 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2019
Business Combinations [Abstract]
Summary of Preliminary ROCCAT Purchase Price Allocation	The preliminary ROCCAT purchase price allocation as of May 31, 2019, is shown in the following table: (In thousands) Amount Receivables $ 1,418 Inventories 7,012 Property and equipment 1,110 Intangible assets 7,511 Other long-term assets 461 Accounts payable (5,535 ) Accrued and other current liabilities (3,211 ) Contingent consideration (1,711 ) Other non-current liabilities (328 ) Total identifiable net assets 6,727 Goodwill 5,940 Total consideration $ 12,667
Summary of Underlying Intangible Assets Related to ROCCAT	The following table summarizes key information underlying intangible assets related to the ROCCAT acquisition: (In thousands) Life Amount Customer relationships 7 Years $ 5,028 Tradenames 5 Years 1,602 Developed technology 7 Years 833 Non-compete agreements 3 Years 48 Total $ 7,511

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments	The following is a summary of the carrying amounts and estimated fair values of our financial instruments at June 30, 2019 and December 31, 2018: June 30, 2019 December 31, 2018 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 3,446 $ 3,446 $ 7,078 $ 7,078 Revolving credit facility $ 10,802 $ 10,802 $ 37,385 $ 37,385 Financial instrument obligation $ — $ — $ 7,848 $ 7,848

Allowance for Sales Returns (Ta

Allowance for Sales Returns (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 6,680 $ 4,260 $ 9,212 $ 5,533 Reserve accrual 2,659 5,184 5,280 8,441 Recoveries and deductions, net (5,293 ) (4,400 ) (10,446 ) (8,930 ) Balance, end of period $ 4,046 $ 5,044 $ 4,046 $ 5,044

Composition of Certain Financ_2

Composition of Certain Financial Statement Items (Tables)	6 Months Ended
	Jun. 30, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Schedule of Inventory	Inventories consist of the following: June 30, 2019 December 31, 2018 (in thousands) Raw materials $ 3,039 $ 1,410 Finished goods 47,381 48,062 Total inventories $ 50,420 $ 49,472
Schedule of Property and Equipment	Property and equipment, net, consists of the following: June 30, 2019 December 31, 2018 (in thousands) Machinery and equipment $ 1,687 $ 1,616 Software and software development 537 306 Furniture and fixtures 564 535 Tooling 5,313 3,925 Leasehold improvements 1,325 1,325 Demonstration units and convention booths 11,981 11,659 Total property and equipment, gross 21,407 19,366 Less: accumulated depreciation and amortization (15,690 ) (13,510 ) Total property and equipment, net $ 5,717 $ 5,856
Other Current Liabilities	Other current liabilities consist of the following: June 30, 2019 December 31, 2018 (in thousands) Accrued customer fees $ 3,699 $ 570 Accrued royalty 2,506 4,069 Accrued employee expenses 2,423 4,570 Contingent consideration 1,711 — Accrued freight 1,497 1,044 Accrued expenses 7,813 8,235 Total other current liabilities $ 19,649 $ 18,488
Other Non-operating Expense (Income), Net	Other non-operating expense (income), net consists of the following: June 30, 2019 June 30, 2018 (in thousands) Unrealized loss (gain) on financial instrument obligation $ (1,601 ) $ 8,619 Other non-operating expense (income) (131 ) 165 Total other non-operating expense (income),net $ (1,732 ) $ 8,784

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Acquired identifiable intangible assets, and related accumulated amortization, as of June 30, 2019 and December 31, 2018 consist of: June 30, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 10,824 $ 4,753 $ 6,071 Tradenames 1,602 27 1,575 Developed technology 833 10 823 Non-compete agreement 48 1 47 Foreign currency (1,173 ) (982 ) (192 ) Total Intangible Assets $ 12,134 $ 3,809 $ 8,324 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 June 30, 2019, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2019 $ 643 2020 1,431 2021 1,390 2022 1,347 2023 1,310 Thereafter 2,395 Total $ 8,516
Schedule of Changes in Carrying Values of Goodwill	Changes in the carrying values of goodwill for six months ended June 30, 2019 are: (in thousands) Balance as of January 1, 2019 $ — ROCCAT Acquisition 5,940 Balance as of June 30, 2019 $ 5,940

Revolving Credit Facility and_2

Revolving Credit Facility and Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	June 30, 2019 December 31, 2018 (in thousands) Revolving credit facility, maturing March 2024 $ 10,802 $ 37,385

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Summary of Income Tax Expense and Effective Income Tax Rate	The following table presents our income tax expense and effective income tax rate: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Income tax expense $ 25 $ 300 $ 189 $ 364 Effective income tax rate (1.1 %) (14.9 %) 21.7 % 4,550.0 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based Compensation Expense	Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was comprised as follows: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Cost of revenue $ 93 $ 313 $ (32 ) $ 331 Selling and marketing 174 30 290 55 Research and development 114 33 188 63 General and administrative 622 223 1,079 373 Total stock-based compensation $ 1,003 $ 599 $ 1,525 $ 822
Stock Activity and Total Number of Shares Available for Grant	The following table presents the stock activity and the total number of shares available for grant as of June 30, 2019: (in thousands) Balance at December 31, 2018 1,202 Plan amendment 1,440 Options granted (492 ) Restricted stock granted (230 ) Forfeited/Expired shares added back 19 Balance at June 30, 2019 1,939
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 491,540 11.99 Exercised (27,225 ) 3.45 Forfeited (18,748 ) 12.19 Outstanding at June 30, 2019 2,100,296 $ 7.71 7.51 $ 10,033,921 Vested and expected to vest at June 30, 2019 2,041,848 $ 7.66 7.46 $ 9,827,413 Exercisable at June 30, 2019 966,075 $ 6.14 5.74 $ 5,488,709
Schedule of Weighted-Average Assumptions	The following are the assumptions for options granted during the six months ended June 30, 2019 Expected term (in years) 6.1 Risk-free interest rate 1.8% - 2.8% Expected volatility 37.8% - 38.6% 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 265,636 $ 19.29 Granted 230,478 12.10 Vested (68,932 ) 8.90 Nonvested restricted stock at June 30, 2019 427,182 $ 17.08

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 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 Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands, except per-share data) Net income (loss) $ (2,373 ) $ (2,318 ) $ 682 $ (356 ) Unrealized gain on financial instrument obligation — — (1,601 ) — Net income (loss) - diluted $ (2,373 ) $ (2,318 ) $ (919 ) $ (356 ) Weighted average common shares outstanding — Basic 14,586 13,401 14,462 12,877 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — — 27 — Dilutive effect of stock options — — 527 — Dilutive effect of warrants — — 683 — Weighted average common shares outstanding — Diluted 14,586 13,401 15,699 12,877 Net income (loss) per share: Basic $ (0.16 ) $ (0.17 ) $ 0.05 $ (0.03 ) Diluted $ (0.16 ) $ (0.17 ) $ (0.06 ) $ (0.03 )
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock	Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Stock options 2,086 1,945 457 1,833 Warrants 550 1,314 — 965 Unvested restricted stock awards 435 62 192 52 Total 3,071 3,321 649 2,850

Geographic Information (Tables)

Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2019
Geographic Information [Abstract]
Schedule of Total Net Revenues	The following table represents total net revenues based on where customers are physically located: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) North America $ 28,617 $ 45,967 $ 63,724 $ 78,951 United Kingdom 3,834 7,628 8,146 11,657 Europe 7,384 5,858 11,576 9,105 Other 1,495 1,352 2,730 1,978 Total net revenues $ 41,330 $ 60,805 $ 86,176 $ 101,691

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2019
Commitments And Contingencies Disclosure [Abstract]
Schedule of Product Warranty Liability	The following table provides the changes in our product warranty reserve, which are included in accrued liabilities: Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 (in thousands) Warranty, beginning of period $ 704 $ 534 $ 668 $ 472 Warranty costs accrued 258 210 501 444 Settlements of warranty claims (210 ) (162 ) (417 ) (334 ) Warranty, end of period $ 752 $ 582 $ 752 $ 582
Lessee, Operating Lease, Disclosure	The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification June 30, 2019 (in thousands) Right-of-use assets Other assets $ 3,034 Lease liability obligations, current Other current liabilities $ 1,439 Lease liability obligations, noncurrent Other liabilities 1,871 Total lease liability obligations $ 3,310 Weighted-average remaining lease term (in years) 2.2 Weighted-average discount rate 3.75 %
Schedule of Future Minimum Rental Payments for Operating Leases	Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of June 30, 2019, are: (in thousands) 2019 $ 848 2020 1,365 2021 566 2022 216 2023 103 Thereafter 397 Total minimum payments 3,495 Less: Imputed interest (185 ) Total $ 3,310

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Accounting Policies [Abstract]
Operating lease, liability	$ 3,310	$ 3,300

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	May 31, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Business Acquisition [Line Items]
Net of cash	$ 12,700
Revenue		$ 41,330	$ 60,805	$ 86,176	$ 101,691
Operating loss		2,307	$ (8,269)	506	$ (12,055)
ROCCAT
Business Acquisition [Line Items]
Revenue		1,300		1,300
Operating loss		400		400
General and Administrative Expenses | ROCCAT
Business Acquisition [Line Items]
Acquisition costs		$ 1,500		$ 2,300
Maximum
Business Acquisition [Line Items]
Potential earn outs payments	$ 3,400

Acquisitions - Summary of Preli

Acquisitions - Summary of Preliminary ROCCAT Purchase Price Allocation (Details) - USD ($) $ in Thousands	Jun. 30, 2019	May 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 5,940
ROCCAT
Business Acquisition [Line Items]
Receivables		$ 1,418
Inventories		7,012
Property and equipment		1,110
Intangible assets		7,511
Other long-term assets		461
Accounts payable		(5,535)
Accrued and other current liabilities		(3,211)
Contingent consideration		(1,711)
Other non-current liabilities		(328)
Total identifiable net assets		6,727
Goodwill		5,940
Total consideration		$ 12,667

Acquisitions - Summary of Under

Acquisitions - Summary of Underlying Intangible Assets Related to ROCCAT (Details) - ROCCAT $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 7,511
Customer Relationships
Business Acquisition [Line Items]
Intangible assets useful life	7 years
Intangible assets	$ 5,028
Trade Names
Business Acquisition [Line Items]
Intangible assets useful life	5 years
Intangible assets	$ 1,602
Developed Technology
Business Acquisition [Line Items]
Intangible assets useful life	7 years
Intangible assets	$ 833
Non-compete Agreements
Business Acquisition [Line Items]
Intangible assets useful life	3 years
Intangible assets	$ 48

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Financial instrument obligation		$ 7,848
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	$ 3,446	7,078
Financial instrument obligation		7,848
Reported Value Measurement | Revolving Credit Facility, Maturing March 2024 | Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	10,802	37,385
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	3,446	7,078
Financial instrument obligation		7,848
Estimate of Fair Value Measurement | Revolving Credit Facility, Maturing March 2024 | Line of Credit
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instrument, fair value disclosure	$ 10,802	$ 37,385

Allowance for Sales Returns - S

Allowance for Sales Returns - Schedule of Allowances for Sales Returns (Details) - Sales Returns and Allowances - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 6,680	$ 4,260	$ 9,212	$ 5,533
Reserve accrual	2,659	5,184	5,280	8,441
Recoveries and deductions, net	(5,293)	(4,400)	(10,446)	(8,930)
Balance, end of period	$ 4,046	$ 5,044	$ 4,046	$ 5,044

Composition of Certain Financ_3

Composition of Certain Financial Statement Items - Schedule of Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 3,039	$ 1,410
Finished goods	47,381	48,062
Total inventories	$ 50,420	$ 49,472

Composition of Certain Financ_4

Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 21,407	$ 19,366
Less: accumulated depreciation and amortization	(15,690)	(13,510)
Total property and equipment, net	5,717	5,856
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,687	1,616
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	537	306
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	564	535
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	5,313	3,925
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,325	1,325
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 11,981	$ 11,659

Composition of Certain Financ_5

Composition of Certain Financial Statement Items - Other Current Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheet Components [Abstract]
Accrued customer fees	$ 3,699	$ 570
Accrued royalty	2,506	4,069
Accrued employee expenses	2,423	4,570
Contingent consideration	1,711
Accrued freight	1,497	1,044
Accrued expenses	7,813	8,235
Total other current liabilities	$ 19,649	$ 18,488

Composition of Certain Financ_6

Composition of Certain Financial Statement Items - Other Non-operating Expense (Income), Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized loss (gain) on financial instrument obligation			$ 1,601	$ (8,619)
Total other non-operating expense (income),net	$ 70	$ (9,029)	1,732	(8,784)
Other Nonoperating Income (Expense)
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized loss (gain) on financial instrument obligation			(1,601)	8,619
Other non-operating expense (income)			(131)	165
Total other non-operating expense (income),net			$ (1,732)	$ 8,784

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, accumulated amortization	$ 3,809	$ 3,602
Total	8,516
Total intangible assets, gross carrying value	12,134	4,638
Total intangible assets, net book value	8,324	1,036
Finite-lived intangible assets, gross carrying value	(1,173)	(1,158)
Finite-lived intangible assets, accumulated amortization	(982)	(937)
Total	(192)	(221)
Customer relationships
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	10,824	5,796
Finite-lived intangible assets, accumulated amortization	4,753	4,539
Total	6,071	$ 1,257
Trade Names
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	1,602
Finite-lived intangible assets, accumulated amortization	27
Total	1,575
Developed technology
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	833
Finite-lived intangible assets, accumulated amortization	10
Total	823
Non-compete Agreements
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	48
Finite-lived intangible assets, accumulated amortization	1
Total	$ 47

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 200	$ 100	$ 221	$ 156
Acquisition of Lygo International Limited | Customer Relationships
Finite Lived Intangible Assets [Line Items]
Useful life			13 years

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands	Jun. 30, 2019USD ($)
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract]
2019	$ 643
2020	1,431
2021	1,390
2022	1,347
2023	1,310
Thereafter	2,395
Total	$ 8,516

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Values of Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
ROCCAT Acquisition	$ 5,940
Balance as of June 30, 2019	$ 5,940

Revolving Credit Facility and_3

Revolving Credit Facility and Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Revolving credit facilities | Revolving Credit Facility, Maturing March 2024
Debt Instrument [Line Items]
Total outstanding debt	$ 10,802	$ 37,385

Revolving Credit Facility and_4

Revolving Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	May 31, 2019
Debt Instrument [Line Items]
Interest expense, debt	$ 100,000	$ 1,000,000	$ 400,000	$ 2,500,000
Interest expense, related party	0	700,000	0	1,300,000
Amortization of debt financing costs	$ 47,000	$ 200,000	$ 94,000	$ 642,000
Revolving Credit Facility, Maturing March 2024
Debt Instrument [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	1.00%		1.00%
Remaining borrowing capacity	$ 20,000,000		$ 20,000,000
Revolving Credit Facility, Maturing March 2024 | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			6.00%
Revolving Credit Facility, Maturing March 2024 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			3.75%
Revolving Credit Facility, Maturing March 2024 | Minimum
Debt Instrument [Line Items]
Unused commitment fee, percent			0.25%
Revolving Credit Facility, Maturing March 2024 | Minimum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Revolving Credit Facility, Maturing March 2024 | Minimum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Revolving Credit Facility, Maturing March 2024 | Minimum | Adjustable Rate Loans
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%
Revolving Credit Facility, Maturing March 2024 | Maximum
Debt Instrument [Line Items]
Unused commitment fee, percent			0.50%
Revolving Credit Facility, Maturing March 2024 | Maximum | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Revolving Credit Facility, Maturing March 2024 | Maximum | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%
Revolving Credit Facility, Maturing March 2024 | Maximum | Adjustable Rate Loans
Debt Instrument [Line Items]
Basis spread on variable rate			2.75%
Revolving Credit Facility, Maturing March 2024 | UK Borrower
Debt Instrument [Line Items]
Maximum borrowing capacity					$ 12,000,000
Revolving Credit Facility, Maturing March 2024 | TB Germany GmbH | Maximum | ROCCAT
Debt Instrument [Line Items]
Line of credit to make investments						$ 4,000,000
Line of credit to make additional investments						$ 4,000,000

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expense and Effective Income Tax Rate (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 25,000	$ 300,000	$ 189,000	$ 364,000
Effective income tax rate	(1.10%)	(14.90%)	21.70%	4550.00%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 25,000	$ 300,000	$ 189,000	$ 364,000
Effective income tax rate	(1.10%)	(14.90%)	21.70%	4550.00%
Unrecognized tax benefits, inclusive of interest and penalties	$ 3,000,000		$ 3,000,000
Interest and penalties	$ 1,100,000		$ 1,100,000

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 1,003	$ 599	$ 1,525	$ 822
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	93	313	(32)	331
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	174	30	290	55
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	114	33	188	63
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 622	$ 223	$ 1,079	$ 373

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Activity and Total Number of Shares Available for Grant (Details)	6 Months Ended
	Jun. 30, 2019shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance, beginning of period	1,202,000
Plan amendment	1,440,000
Options granted	(491,540)
Restricted stock granted	(230,000)
Forfeited/Expired shares added back	19,000
Balance, end of period	1,939,000

Stock-Based Compensation - St_3

Stock-Based Compensation - Stock Option Activity (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares) | shares	1,654,729
Granted (in shares) | shares	491,540
Exercised (in shares) | shares	(27,225)
Forfeited (in shares) | shares	(18,748)
Outstanding end of period (in shares) | shares	2,100,296	1,654,729
Vested and expected to vest (in shares) | shares	2,041,848
Exercisable (in shares) | shares	966,075
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share) | $ / shares	$ 6.41
Granted (in dollars per share) | $ / shares	11.99
Exercised (in dollars per share) | $ / shares	3.45
Forfeited (in dollars per share) | $ / shares	12.19
Outstanding end of period (in dollars per share) | $ / shares	7.71	$ 6.41
Vested and expected to vest (in dollars per share) | $ / shares	7.66
Exercisable (in dollars per share) | $ / shares	$ 6.14
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term	7 years 6 months 3 days	7 years 4 months 9 days
Vested and expected to vest, weighted average remaining contractual term	7 years 5 months 15 days
Exercisable, weighted average remaining contractual term	5 years 8 months 26 days
Outstanding, intrinsic value | $	$ 10,033,921	$ 14,374,572
Vested and expected to vest, intrinsic value | $	9,827,413
Exercisable, intrinsic value | $	$ 5,488,709

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Apr. 30, 2018	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	$ 200
Weighted average grant date fair value of options granted (in dollars per share)	$ 4.94
Estimated grant date fair value of options vested	$ 400
Fully-funded warrants exercisable			0.5
Fair value reclassified to additional paid-in-capital	6,200
Unrealized gain on the warrants	1,601	$ (8,619)
Other Non-operating Expense (Income), Net [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrealized gain on the warrants	$ 1,600
VTB Holdings, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Class of warrant or right, outstanding	0.4			0.3
Class of warrant or right, exercise price of warrants or rights	$ 10.16			$ 8
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 4,000
Compensation cost not yet recognized, period for recognition	2 years 11 months 19 days
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 6,500
Compensation cost not yet recognized, period for recognition	2 years 10 months 2 days
Non-Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate	10.00%
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate	0.00%

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Weighted-Average Assumptions (Details)	6 Months Ended
	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	1.80%
Risk-free interest rate, maximum	2.80%
Expected volatility, minimum	37.80%
Expected volatility, maximum	38.60%
Dividend rate	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock Activity (Details)	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	230,000
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)	265,636
Granted (in shares)	230,478
Vested (in shares)	(68,932)
Outstanding end of period (in shares)	427,182
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	12.10
Vested (in dollars per share) | $ / shares	8.90
Outstanding end of period (in dollars per share) | $ / shares	$ 17.08

Net Income (Loss) Per Share - S

Net Income (Loss) Per Share - Schedule of Computation of Basic and Diluted Net (loss) Income per Share of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Basic and diluted:
Net income (loss)	$ (2,373)	$ 3,055	$ (2,318)	$ 1,962	$ 682	$ (356)
Unrealized gain on financial instrument obligation					(1,601)	8,619
Net income (loss) - diluted	$ (2,373)		$ (2,318)		$ (919)	$ (356)
Basic:
Weighted-average common shares outstanding, basic (in shares)	14,586		13,401		14,462	12,877
Incremental Common Shares Attributable to Dilutive Effect of Restricted Stock Awards					27
Dilutive effect of stock options					527
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants					683
Diluted:
Weighted-average common shares outstanding, diluted (in shares)	14,586		13,401		15,699	12,877
Net income (loss) per share:
Basic (in dollars per share)	$ (0.16)		$ (0.17)		$ 0.05	$ (0.03)
Diluted (in dollars per share)	$ (0.16)		$ (0.17)		$ (0.06)	$ (0.03)

Net Income (Loss) Per Share -_2

Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,071	3,321	649	2,850
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,086	1,945	457	1,833
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	550	1,314	0	965
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	435	62	192	52

Geographic Information - Schedu

Geographic Information - Schedule of Total Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenue	$ 41,330	$ 60,805	$ 86,176	$ 101,691
United States
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenue	28,617	45,967	63,724	78,951
United Kingdom
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenue	3,834	7,628	8,146	11,657
Europe
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenue	7,384	5,858	11,576	9,105
Other
Revenues From External Customers And Long Lived Assets [Line Items]
Net revenue	$ 1,495	$ 1,352	$ 2,730	$ 1,978

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) € in Millions, $ in Millions	Jul. 20, 2016EUR (€)	Jun. 30, 2019USD ($)	Aug. 05, 2013
Operating Leased Assets [Line Items]
Operating lease, expense		$ 0.4
Operating lease, payments		$ 0.8
Bigben Interactive S A
Operating Leased Assets [Line Items]
Loss contingency,additional damages | €	€ 5
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_2

Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 704	$ 534	$ 668	$ 472
Warranty costs accrued	258	210	501	444
Settlements of warranty claims	(210)	(162)	(417)	(334)
Warranty, end of period	$ 752	$ 582	$ 752	$ 582

Commitments and Contingencies_3

Commitments and Contingencies - Components of the Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 3,034
Lease liability obligations, current	1,439
Lease liability obligations, noncurrent	1,871
Total lease liability obligations	$ 3,310	$ 3,300
Weighted-average remaining lease term (in years)	2 years 2 months 12 days
Weighted Average
Lessee, Lease, Description [Line Items]
Weighted-average discount rate	3.75%

Commitments and Contingencies_4

Commitments and Contingencies - Schedule of Future Minimum Rental Payments for Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Commitments And Contingencies Disclosure [Abstract]
2019	$ 848
2020	1,365
2021	566
2022	216
2023	103
Thereafter	397
Total minimum payments	3,495
Less: Imputed interest	(185)
Total	$ 3,310	$ 3,300