Turtle Beach (TBCH) 10-Q 7 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Entity Registrant Name	Turtle Beach Corporation
Entity Central Index Key	0001493761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		14,572,756
Entity Shell Company	false
Trading Symbol	HEAR
Entity Current Reporting Status	Yes
Entity File Number	001-35465
Entity Tax Identification Number	27-2767540
Entity Address, Address Line One	11011 Via Frontera
Entity Address, Address Line Two	Suite A/B
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92127
City Area Code	888
Local Phone Number	496-8001
Entity Incorporation, State or Country Code	NV
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 8,733	$ 8,249
Accounts receivable, net	12,402	44,530
Inventories	39,291	45,711
Prepaid expenses and other current assets	5,172	4,057
Total Current Assets	65,598	102,547
Property and equipment, net	4,002	3,962
Deferred income taxes	9,316	7,439
Goodwill	8,515	8,515
Intangible assets, net	5,740	6,011
Other assets	2,563	2,877
Total Assets	95,734	131,351
Current Liabilities:
Revolving credit facility	301	15,655
Accounts payable	11,503	22,511
Other current liabilities	20,786	26,422
Total Current Liabilities	32,590	64,588
Deferred income taxes	140	153
Other liabilities	3,021	3,223
Total Liabilities	35,751	67,964
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value - 25,000,000 shares authorized; 14,506,140 and 14,488,152 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	15	14
Additional paid-in capital	177,745	176,776
Accumulated deficit	(117,074)	(113,519)
Accumulated other comprehensive income (loss)	(703)	116
Total Stockholders’ Equity	59,983	63,387
Total Liabilities and Stockholders’ Equity	$ 95,734	$ 131,351

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Mar. 31, 2020	Dec. 31, 2019
Statement Of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	25,000,000	25,000,000
Common stock shares issued	14,506,140	14,488,152
Common stock shares outstanding	14,506,140	14,488,152

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Net revenue	$ 35,007	$ 44,846
Cost of revenue	24,222	30,059
Gross profit	10,785	14,787
Operating expenses:
Selling and marketing	7,648	6,881
Research and development	2,427	1,456
General and administrative	5,723	4,649
Total operating expenses	15,798	12,986
Operating income (loss)	(5,013)	1,801
Interest expense	169	244
Other non-operating expense (income), net	197	(1,662)
Income (loss) before income tax	(5,379)	3,219
Income tax expense (benefit)	(1,824)	164
Net income (loss)	$ (3,555)	$ 3,055
Net income (loss) per share
Basic (in dollars per share)	$ (0.25)	$ 0.21
Diluted (in dollars per share)	$ (0.25)	$ 0.09
Weighted average number of shares:
Basic (in shares)	14,495	14,336
Diluted (in shares)	14,495	16,260

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ (3,555)	$ 3,055
Foreign currency translation adjustment	(819)	165
Other comprehensive income (loss)	(819)	165
Comprehensive income (loss)	$ (4,374)	$ 3,220

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (3,555,000)	$ 3,055,000
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,033,000	1,040,000
Amortization of intangible assets	222,000	62,000
Amortization of debt financing costs	47,000	47,000
Stock-based compensation	999,000	522,000
Deferred income taxes	(1,891,000)
Provision for (reversal of) sales returns reserve	(2,553,000)	(2,532,000)
Provision for obsolete inventory	439,000	783,000
Unrealized loss (gain) on financial instrument obligation		(1,601,000)
Increase in fair value of contingent consideration	21,000		$ 500,000
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	34,681,000	42,868,000
Inventories	5,981,000	4,210,000
Accounts payable	(11,192,000)	(4,493,000)
Prepaid expenses and other assets	(1,091,000)	(317,000)
Income taxes payable	(132,000)	132,000
Other liabilities	(5,483,000)	(2,814,000)
Net cash provided by operating activities	17,526,000	40,962,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(890,000)	(557,000)
Net cash used for investing activities	(890,000)	(557,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	48,426,000	48,119,000
Repayment of revolving credit facilities	(63,780,000)	(85,504,000)
Proceeds from exercise of stock options and warrants	18,000	23,000
Repurchase of common stock to satisfy employee tax withholding obligations	(48,000)	(101,000)
Net cash used for financing activities	(15,384,000)	(37,463,000)
Effect of exchange rate changes on cash and cash equivalents	(768,000)	136,000
Net increase in cash and cash equivalents	484,000	3,078,000
Cash and cash equivalents - beginning of period	8,249,000	7,078,000	7,078,000
Cash and cash equivalents - end of period	8,733,000	10,156,000	$ 8,249,000
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	161,000	268,000
Cash paid for income taxes	$ 175,000
Reclassification of financial instrument obligation		$ 6,248,000

Condensed Consolidated Statem_4

Condensed Consolidated Statement of Stockholders' Equity (Deficit) (Unaudited) - USD ($) $ in Thousands	Total	Common stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 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 (loss), 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, 2019	63,387	$ 14	176,776	(113,519)	116
Beginning Balance, shares at Dec. 31, 2019		14,488,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,555)			(3,555)
Other comprehensive income (loss), net of tax	(819)				(819)
Issuance of restricted stock	1	$ 1
Issuance of restricted stock, shares		19,000
Repurchase of common stock and retirement of related treasury shares	(48)		(48)
Repurchase of common stock and retirement of related treasury shares, shares		(7,000)
Stock options exercised	$ 18		18
Stock options exercised, shares	5,707	6,000
Stock-based compensation	$ 999		999
Ending Balance at Mar. 31, 2020	$ 59,983	$ 15	$ 177,745	$ (117,074)	$ (703)
Ending Balance, shares at Mar. 31, 2020		14,506,000

Background and Basis of Present

Background and Basis of Presentation	3 Months Ended
	Mar. 31, 2020
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 audio and gaming technology company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach® and ROCCAT® brands. Turtle Beach is a worldwide leader of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers (“PC”), tablets and mobile devices. ROCCAT is a gaming keyboards, mice and other accessories brand focused in the PC peripherals market. VTB Holdings, Inc. (“VTBH”), a wholly-owned subsidiary of Turtle Beach and the owner of Voyetra Turtle Beach, Inc. (“VTB”), was incorporated in the state of Delaware in 2010. VTB, the owner of Turtle Beach Europe Limited (“TB Europe”), was incorporated in the state of Delaware in 1975 with operations principally located in 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, 2019 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 13, 2020 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company's businesses and financial statement presentations. Use of estimates : The preparation of accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. The novel coronavirus (“COVID-19”) pandemic has disrupted worldwide economic markets and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. As of March 31, 2020, our liquidity and operations have not been significantly impacted. However, the Company will continue to monitor and assess the impact of the pandemic.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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 January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies how an entity is required to test goodwill for impairment. A goodwill impairment will be measured by the amount by which a reporting unit’s carrying value exceeds its fair value, with the amount of impairment not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, and must be adopted on a prospective basis. The Company adopted the ASU prospectively on January 1, 2020, which did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes,

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2020
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 ending 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 $ 1,257 Inventories 6,986 Property and equipment 1,110 Intangible assets 5,589 Other long-term assets 461 Accounts payable (5,510 ) Accrued and other current liabilities (3,821 ) Contingent consideration (1,592 ) Other non-current liabilities (328 ) Total identifiable net assets 4,152 Goodwill 8,515 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 combining 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 $ 2,119 Tradenames 10 Years 2,686 Developed technology 7 Years 784 Total $ 5,589 For the three months ended March 31, 2020, revenue related to ROCCAT products was $4.3 million. The Company is unable to provide the results of operations attributable to ROCCAT as those operations were substantially integrated into our legacy business. The Company has not presented combined pro forma financial information of the Company and the pre-acquisition ROCCAT business because the results of operations of the acquired business are considered immaterial. In connection with the $1.6 million fair value of the potential $3.4 million earn-outs, for the year ended December 31, 2019, the fair value of the contingent consideration decreased $0.5 million primarily as a result of the revenues not achieving the stated threshold in the asset purchase agreement.

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019, the Company had not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted March 31, 2020 December 31, 2019 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 8,733 $ 8,733 $ 8,249 $ 8,249 Revolving credit facility $ 301 $ 301 $ 15,655 $ 15,655 Contingent consideration liabilities $ 1,142 $ 1,142 $ 1,121 $ 1,121 Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying value of the Credit Facility equals fair value as the stated interest rate approximates market rates currently available to the Company, which is considered a Level 2 input. The Company values contingent consideration related to business combinations using a weighted probability calculation of potential payment scenarios discounted at rates reflective of the risks associated with the expected future cash flows.

Allowance for Sales Returns

Allowance for Sales Returns	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (in thousands) Balance, beginning of period $ 8,815 $ 9,212 Reserve accrual 2,651 2,621 Recoveries and deductions, net (5,204 ) (5,153 ) Balance, end of period $ 6,262 $ 6,680

Composition of Certain Financia

Composition of Certain Financial Statement Items	3 Months Ended
	Mar. 31, 2020
Condensed Consolidated Balance Sheet Components [Abstract]
Composition of Certain Financial Statement Items	Note Inventories Inventories consist of the following: March 31, 2020 December 31, 2019 (in thousands) Raw materials $ 1,502 $ 1,288 Finished goods 37,789 44,423 Total inventories $ 39,291 $ 45,711 Property and Equipment, net Property and equipment, net, consists of the following: March 31, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 1,835 $ 1,783 Software and software development 446 439 Furniture and fixtures 992 601 Tooling 5,358 5,340 Leasehold improvements 1,324 1,326 Demonstration units and convention booths 12,652 12,051 Total property and equipment, gross 22,607 21,540 Less: accumulated depreciation and amortization (18,605 ) (17,578 ) Total property and equipment, net $ 4,002 $ 3,962 Other Current Liabilities Other current liabilities consist of the following: March 31, 2020 December 31, 2019 (in thousands) Accrued customer fees $ 2,787 $ 3,147 Accrued royalty 2,436 3,880 Accrued employee expenses 4,575 3,674 Accrued marketing 2,149 3,695 Foreign tax liability 1,340 2,504 Accrued expenses 7,499 9,522 Total other current liabilities $ 20,786 $ 26,422 Other non-operating expense (income), net Other non-operating expense (income), net consists of the following: Three Months Ended March 31, 2020 2019 (in thousands) Unrealized gain on financial instrument obligation $ — $ (1,601 ) Other non-operating expense (income) 176 (61 ) Change in fair value of contingent consideration 21 — Total other non-operating expense (income),net $ 197 $ (1,662 )

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 consist of: March 31, 2020 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,163 $ 2,752 Tradenames 2,686 224 2,462 Developed technology 784 93 691 Foreign currency (1,282 ) (1,118 ) (165 ) Total Intangible Assets $ 10,103 $ 4,362 $ 5,740 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,024 $ 2,891 Tradenames $ 2,686 $ 157 $ 2,529 Developed technology $ 784 $ 65 $ 719 Foreign currency (1,004 ) (876 ) (128 ) Total Intangible Assets $ 10,381 $ 4,370 $ 6,011 In connection with the October 2012 acquisition of TB Europe, the acquired intangible assets related to customer relationships is being amortized over an estimated useful life of thirteen years with the amortization being included within sales and marketing expense. In May 2019, the Company completed its acquisition of the business and assets of ROCCAT. The acquired intangible assets relating to developed technology, customer relationships and trade name 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 was recognized for the three months ended March 31, 2020, and $0.1 million for the three months ended March 31, 2019. As of March 31, 2020, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2020 $ 708 2021 901 2022 866 2023 837 2024 813 Thereafter 1,780 Total $ 5,905

Revolving Credit Facility and L

Revolving Credit Facility and Long-Term Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Revolving Credit Facility and Long-Term Debt	Note March 31, 2020 December 31, 2019 (in thousands) Revolving credit facility, maturing March 2024 $ 301 $ 15,655 Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $0.2 million for both the three months ended March 31, 2020 and 2019. Amortization of deferred financing costs was $47,000 for both the three months ended March 31, 2020 and 2019. 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 the business and assets 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 March 31, 2020, interest rates for outstanding borrowings were 3.75% for base rate loans and 3.00% 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). At such times, the Credit Facility requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio of at least 1.00 to 1.00 as of the last day of each fiscal quarter. The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including the Company’s ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and transactions with affiliates, and encumber and dispose of assets. Obligations under the Credit Facility are secured by a security interest and lien upon substantially all of the Company’s assets. As of March 31, 2020, the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $21.4 million.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
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 the Company’s income tax expense and effective income tax rate: Three Months Ended March 31, 2020 2019 (in thousands) Income tax expense (benefit) $ (1,824 ) $ 164 Effective income tax rate 33.9 % 5.1 % Income tax benefit for the three months ended March 31, 2020 was $1.8 million at an effective tax rate of 33.9%, compared to income tax expense of $0.2 million at an effective tax rate of 5.1% for the three months ended March 31, 2019. The effective tax rate for the three months ended March 31, 2020 was primarily impacted by permanent items including global intangible low taxed income and executive compensation 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 statements of operations. As of March 31, 2020, the Company had uncertain tax positions of $2.2 million, inclusive of $0.7 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 2017 through 2018, and the state tax years open under the statute of limitations are 2015 through 2018. The Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in March 2020. The CARES Act includes several U.S. income tax provisions related to, among other things, net operating loss carrybacks, alternative minimum tax credits, modifications to the net interest deduction limitations, and technical amendments regarding the income tax depreciation of qualified improvement property placed in service after December 31, 2017. The CARES Act is not expected to have a material impact on the Company’s financial results.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
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 as follows: Three Months Ended March 31, 2020 2019 (in thousands) Cost of revenue $ 58 $ (125 ) Selling and marketing 199 116 Research and development 125 74 General and administrative 617 457 Total stock-based compensation $ 999 $ 522 The following table presents the stock activity and the total number of shares available for grant as of March 31, 2020: (in thousands) Balance at December 31, 2019 1,777 Options granted (49 ) Options cancelled 26 Restricted stock granted (3 ) Forfeited/Expired shares added back 4 Balance at March 31, 2020 1,755 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, 2019 2,142,925 $ 7.83 7.13 $ 6,545,982 Granted 49,350 5.55 Exercised (5,707 ) 3.19 Forfeited (26,190 ) 11.61 Outstanding at March 31, 2020 2,160,378 $ 7.75 6.92 $ 2,755,627 Vested and expected to vest at March 31, 2020 2,111,618 $ 7.76 6.88 $ 2,708,414 Exercisable at March 31, 2020 1,130,521 $ 6.50 5.36 $ 1,569,200 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 $11,000 for the three months ended March 31, 2020. 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, 2020. Expected term (in years) 6.1 Risk-free interest rate 0.7%- 1.4% Expected volatility 50.1%- 51.3% 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, 2020 was $2.69. The total estimated fair value of employee options vested during the three months ended March 31, 2020 was $0.2 million. As of March 31, 2020, total unrecognized compensation cost related to non-vested stock options granted to employees was $3.1 million, which is expected to be recognized over a remaining weighted average vesting period of 2.6 years. Restricted Stock Activity Shares Weighted Average Grant Date Fair Value Per Share Nonvested restricted stock at December 31, 2019 421,490 $ 15.06 Granted 3,175 — Vested (19,345 ) 23.65 Shares forfeited (4,282 ) 12.10 Nonvested restricted stock at March 31, 2020 401,038 $ 14.56 As of March 31, 2020, total unrecognized compensation costs related to the nonvested restricted stock awards was $4.8 million, which will be recognized over a remaining weighted average vesting period of 2.4 years.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (in thousands, except per-share data) Net income (loss) $ (3,555 ) $ 3,055 Unrealized gain on financial instrument obligation — (1,601 ) Net income (loss) - diluted $ (3,555 ) $ 1,454 Weighted average common shares outstanding — Basic 14,495 14,336 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — 55 Dilutive effect of stock options — 1,053 Dilutive effect of warrants — 816 Weighted average common shares outstanding — Diluted 14,495 16,260 Net income (loss) per share: Basic $ (0.25 ) $ 0.21 Diluted $ (0.25 ) $ 0.09 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, 2020 2019 (in thousands) Stock options 2,147 145 Warrants 550 — Unvested restricted stock awards 406 201 Total 3,103 346

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Segment Information	Note The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2020 2019 (in thousands) North America $ 27,020 $ 35,107 United Kingdom 1,447 4,312 Europe 4,550 4,192 Other 1,990 1,235 Total net revenues $ 35,007 $ 44,846

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
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. On October 11, 2019, the parties notified the District Court that they had reached a settlement that would resolve the pending action if ultimately approved by the Court. On January 13, 2020, the District Court preliminarily approved the settlement agreement between the plaintiffs and all defendants. A final approval hearing has been scheduled for May 18, 2020. All pending court dates and deadlines, including the trial date, have been stayed while the parties proceed with the settlement process. 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. 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, 2019, 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. On November 19, 2019, an oral hearing was held at the Higher Regional Court of Berlin on Big Ben’s appeal against the Judgement on January 7, 2019. The next oral hearing at the Higher Regional Court of Berlin is scheduled for June 5, 2020. Employment Litigation: On April 20, 2017, a former employee filed an action in the Superior Court for the County of San Diego, State of California. The complaint alleges claims including wrongful termination, retaliation and various other provisions of the California Labor Code. The complaint seeks unspecified economic and non-economic losses, as well as allegedly unpaid wages, unreimbursed business expenses, statutory penalties, interest, punitive damages and attorneys’ fees. The Company filed a cross-complaint against the former employee on May 25, 2017 for certain activities related to his employment with the Company. Discovery is closed and the case was set for trial on April 6, 2020 in San Diego County Superior Court. Due to the COVID-19 outbreak, the April 6, 2020 trial date was vacated, and a new trial date will be set. 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, 2020 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 March 31, 2020 2019 (in thousands) Warranty, beginning of period $ 743 $ 668 Warranty costs accrued 146 243 Settlements of warranty claims (177 ) (207 ) Warranty, end of period $ 712 $ 704 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 March 31, 2020 (in thousands) Right-of-use assets Other assets $ 1,577 Lease liability obligations, current Other current liabilities $ 540 Lease liability obligations, noncurrent Other liabilities 1,079 Total lease liability obligations $ 1,619 Weighted-average remaining lease term (in years) 2.9 Weighted-average discount rate 3.75 % During the three months ended March 31, 2020, the Company recognized approximately $0.3 million of lease costs in operating expenses and approximately $0.2 million of operating cash flows from operating leases. Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of March 31, 2020, are as follows: (in thousands) 2020 $ 491 2021 575 2022 220 2023 97 2024 97 Thereafter 275 Total minimum payments 1,755 Less: Imputed interest (136 ) Total $ 1,619

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	Note 14. Subsequent Events On May 5, 2020, Jöllenbeck GmbH and First Wise Media GmbH, two of our distributors and affiliates of the sellers of the ROCCAT business, submitted a bankruptcy filing in Germany. We do not believe this will have a material impact on our financial condition as we believe that the Company has a right to recover from the sellers under the ROCCAT asset purchase agreement to the extent such distributors fail to pay accounts receivable due to the Company. We will continue to monitor the situation and our conclusion on the collectability of any outstanding balances may change in the future.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 2019 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 13, 2020 (“Annual Report”). These financial statements should be read in conjunction with the annual financial statements and the notes thereto included in the Annual Report that contains information useful to understanding the Company's businesses and financial statement presentations.
Use of Estimates	Use of estimates : The preparation of accompanying unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and reported amounts of revenues and expenses during the reporting period. These estimates may change, as new events occur and additional information is obtained, and will be recognized in the consolidated financial statements in the period in which such changes occur. Future actual results could differ materially from these estimates. The novel coronavirus (“COVID-19”) pandemic has disrupted worldwide economic markets and the extent to which COVID-19 impacts the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. As of March 31, 2020, our liquidity and operations have not been significantly impacted. However, the Company will continue to monitor and assess the impact of the pandemic.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment , which simplifies how an entity is required to test goodwill for impairment. A goodwill impairment will be measured by the amount by which a reporting unit’s carrying value exceeds its fair value, with the amount of impairment not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for goodwill impairment tests in fiscal years beginning after December 15, 2019, and for interim periods within those fiscal years, and must be adopted on a prospective basis. The Company adopted the ASU prospectively on January 1, 2020, which did not have a material impact on the consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes,

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2020
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 $ 1,257 Inventories 6,986 Property and equipment 1,110 Intangible assets 5,589 Other long-term assets 461 Accounts payable (5,510 ) Accrued and other current liabilities (3,821 ) Contingent consideration (1,592 ) Other non-current liabilities (328 ) Total identifiable net assets 4,152 Goodwill 8,515 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 $ 2,119 Tradenames 10 Years 2,686 Developed technology 7 Years 784 Total $ 5,589

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 and December 31, 2019 March 31, 2020 December 31, 2019 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 8,733 $ 8,733 $ 8,249 $ 8,249 Revolving credit facility $ 301 $ 301 $ 15,655 $ 15,655 Contingent consideration liabilities $ 1,142 $ 1,142 $ 1,121 $ 1,121

Allowance for Sales Returns (Ta

Allowance for Sales Returns (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 2019 (in thousands) Balance, beginning of period $ 8,815 $ 9,212 Reserve accrual 2,651 2,621 Recoveries and deductions, net (5,204 ) (5,153 ) Balance, end of period $ 6,262 $ 6,680

Composition of Certain Financ_2

Composition of Certain Financial Statement Items (Tables)	3 Months Ended
	Mar. 31, 2020
Condensed Consolidated Balance Sheet Components [Abstract]
Schedule of Inventory	Inventories consist of the following: March 31, 2020 December 31, 2019 (in thousands) Raw materials $ 1,502 $ 1,288 Finished goods 37,789 44,423 Total inventories $ 39,291 $ 45,711
Schedule of Property and Equipment	Property and equipment, net, consists of the following: March 31, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 1,835 $ 1,783 Software and software development 446 439 Furniture and fixtures 992 601 Tooling 5,358 5,340 Leasehold improvements 1,324 1,326 Demonstration units and convention booths 12,652 12,051 Total property and equipment, gross 22,607 21,540 Less: accumulated depreciation and amortization (18,605 ) (17,578 ) Total property and equipment, net $ 4,002 $ 3,962
Other Current Liabilities	Other current liabilities consist of the following: March 31, 2020 December 31, 2019 (in thousands) Accrued customer fees $ 2,787 $ 3,147 Accrued royalty 2,436 3,880 Accrued employee expenses 4,575 3,674 Accrued marketing 2,149 3,695 Foreign tax liability 1,340 2,504 Accrued expenses 7,499 9,522 Total other current liabilities $ 20,786 $ 26,422
Other Non-operating Expense (Income), Net	Other non-operating expense (income), net consists of the following: Three Months Ended March 31, 2020 2019 (in thousands) Unrealized gain on financial instrument obligation $ — $ (1,601 ) Other non-operating expense (income) 176 (61 ) Change in fair value of contingent consideration 21 — Total other non-operating expense (income),net $ 197 $ (1,662 )

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2020 and December 31, 2019 consist of: March 31, 2020 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,163 $ 2,752 Tradenames 2,686 224 2,462 Developed technology 784 93 691 Foreign currency (1,282 ) (1,118 ) (165 ) Total Intangible Assets $ 10,103 $ 4,362 $ 5,740 December 31, 2019 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,024 $ 2,891 Tradenames $ 2,686 $ 157 $ 2,529 Developed technology $ 784 $ 65 $ 719 Foreign currency (1,004 ) (876 ) (128 ) Total Intangible Assets $ 10,381 $ 4,370 $ 6,011
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	As of March 31, 2020, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2020 $ 708 2021 901 2022 866 2023 837 2024 813 Thereafter 1,780 Total $ 5,905

Revolving Credit Facility and_2

Revolving Credit Facility and Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	March 31, 2020 December 31, 2019 (in thousands) Revolving credit facility, maturing March 2024 $ 301 $ 15,655

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Summary of Income Tax Expense and Effective Income Tax Rate	The following table presents the Company’s income tax expense and effective income tax rate: Three Months Ended March 31, 2020 2019 (in thousands) Income tax expense (benefit) $ (1,824 ) $ 164 Effective income tax rate 33.9 % 5.1 %

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based Compensation Expense	Total estimated stock-based compensation expense for employees and non-employees, related to all of the Company’s stock-based awards, was as follows: Three Months Ended March 31, 2020 2019 (in thousands) Cost of revenue $ 58 $ (125 ) Selling and marketing 199 116 Research and development 125 74 General and administrative 617 457 Total stock-based compensation $ 999 $ 522
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, 2020: (in thousands) Balance at December 31, 2019 1,777 Options granted (49 ) Options cancelled 26 Restricted stock granted (3 ) Forfeited/Expired shares added back 4 Balance at March 31, 2020 1,755
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, 2019 2,142,925 $ 7.83 7.13 $ 6,545,982 Granted 49,350 5.55 Exercised (5,707 ) 3.19 Forfeited (26,190 ) 11.61 Outstanding at March 31, 2020 2,160,378 $ 7.75 6.92 $ 2,755,627 Vested and expected to vest at March 31, 2020 2,111,618 $ 7.76 6.88 $ 2,708,414 Exercisable at March 31, 2020 1,130,521 $ 6.50 5.36 $ 1,569,200
Schedule of Weighted-Average Assumptions	The following are the assumptions for options granted during the three months ended March 31, 2020 Expected term (in years) 6.1 Risk-free interest rate 0.7%- 1.4% Expected volatility 50.1%- 51.3% 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, 2019 421,490 $ 15.06 Granted 3,175 — Vested (19,345 ) 23.65 Shares forfeited (4,282 ) 12.10 Nonvested restricted stock at March 31, 2020 401,038 $ 14.56

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
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, 2020 2019 (in thousands, except per-share data) Net income (loss) $ (3,555 ) $ 3,055 Unrealized gain on financial instrument obligation — (1,601 ) Net income (loss) - diluted $ (3,555 ) $ 1,454 Weighted average common shares outstanding — Basic 14,495 14,336 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock — 55 Dilutive effect of stock options — 1,053 Dilutive effect of warrants — 816 Weighted average common shares outstanding — Diluted 14,495 16,260 Net income (loss) per share: Basic $ (0.25 ) $ 0.21 Diluted $ (0.25 ) $ 0.09
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock	Three Months Ended March 31, 2020 2019 (in thousands) Stock options 2,147 145 Warrants 550 — Unvested restricted stock awards 406 201 Total 3,103 346

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2020
Segment Reporting [Abstract]
Schedule of Total Net Revenues	The following table represents total net revenues based on where customers are physically located: Three Months Ended March 31, 2020 2019 (in thousands) North America $ 27,020 $ 35,107 United Kingdom 1,447 4,312 Europe 4,550 4,192 Other 1,990 1,235 Total net revenues $ 35,007 $ 44,846

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 (in thousands) Warranty, beginning of period $ 743 $ 668 Warranty costs accrued 146 243 Settlements of warranty claims (177 ) (207 ) Warranty, end of period $ 712 $ 704
Components of the Right-of-Use Assets and Lease Liabilities	The components of the right-of-use assets and lease liabilities were as follows: Balance Sheet Classification March 31, 2020 (in thousands) Right-of-use assets Other assets $ 1,577 Lease liability obligations, current Other current liabilities $ 540 Lease liability obligations, noncurrent Other liabilities 1,079 Total lease liability obligations $ 1,619 Weighted-average remaining lease term (in years) 2.9 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 March 31, 2020, are as follows: (in thousands) 2020 $ 491 2021 575 2022 220 2023 97 2024 97 Thereafter 275 Total minimum payments 1,755 Less: Imputed interest (136 ) Total $ 1,619

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($) $ in Thousands	May 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Net of cash	$ 12,700
Potential earn outs payments				$ 3,400
Revenue		$ 35,007	$ 44,846
Fair value of contingent consideration				1,600
Fair value of contingent consideration decreased		21		$ 500
ROCCAT
Business Acquisition [Line Items]
Acquisition costs	3,900
Revenue		4,300
Fair value of contingent consideration	1,592
General and Administrative Expenses | ROCCAT
Business Acquisition [Line Items]
Acquisition costs		$ 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	Mar. 31, 2020	Dec. 31, 2019	May 31, 2019
Business Acquisition [Line Items]
Contingent consideration		$ (1,600)
Goodwill	$ 8,515	$ 8,515
ROCCAT
Business Acquisition [Line Items]
Receivables			$ 1,257
Inventories			6,986
Property and equipment			1,110
Intangible assets			5,589
Other long-term assets			461
Accounts payable			(5,510)
Accrued and other current liabilities			(3,821)
Contingent consideration			(1,592)
Other non-current liabilities			(328)
Total identifiable net assets			4,152
Goodwill			8,515
Total consideration			$ 12,667

Acquisitions - Summary of Under

Acquisitions - Summary of Underlying Intangible Assets Related to ROCCAT (Details) - ROCCAT $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Business Acquisition [Line Items]
Intangible assets	$ 5,589
Customer Relationships
Business Acquisition [Line Items]
Intangible assets useful life	7 years
Intangible assets	$ 2,119
Trade Names
Business Acquisition [Line Items]
Intangible assets useful life	10 years
Intangible assets	$ 2,686
Developed Technology
Business Acquisition [Line Items]
Intangible assets useful life	7 years
Intangible assets	$ 784

Fair Value Measurement - Summar

Fair Value Measurement - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	$ 8,733	$ 8,249
Contingent consideration liabilities, fair value disclosure	1,142	1,121
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	301	15,655
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	8,733	8,249
Contingent consideration liabilities, fair value disclosure	1,142	1,121
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	$ 301	$ 15,655

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
	Mar. 31, 2020	Mar. 31, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 8,815	$ 9,212
Reserve accrual	2,651	2,621
Recoveries and deductions, net	(5,204)	(5,153)
Balance, end of period	$ 6,262	$ 6,680

Composition of Certain Financ_3

Composition of Certain Financial Statement Items - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 1,502	$ 1,288
Finished goods	37,789	44,423
Total inventories	$ 39,291	$ 45,711

Composition of Certain Financ_4

Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 22,607	$ 21,540
Less: accumulated depreciation and amortization	(18,605)	(17,578)
Total property and equipment, net	4,002	3,962
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,835	1,783
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	446	439
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	992	601
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	5,358	5,340
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,324	1,326
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 12,652	$ 12,051

Composition of Certain Financ_5

Composition of Certain Financial Statement Items - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Accrued customer fees	$ 2,787	$ 3,147
Accrued royalty	2,436	3,880
Accrued employee expenses	4,575	3,674
Accrued marketing	2,149	3,695
Foreign tax liability	1,340	2,504
Accrued expenses	7,499	9,522
Total other current liabilities	$ 20,786	$ 26,422

Composition of Certain Financ_6

Composition of Certain Financial Statement Items - Other Non-operating Expense (Income), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized gain on financial instrument obligation		$ (1,601)
Total other non-operating expense (income),net	$ 197	(1,662)
Other Nonoperating Income (Expense)
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized gain on financial instrument obligation		(1,601)
Other non-operating expense (income)	176	(61)
Change in fair value of contingent consideration	21
Total other non-operating expense (income),net	$ 197	$ (1,662)

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Finite-lived Intangible Assets [Roll Forward]
Total intangible assets, gross carrying value	$ 10,103	$ 10,381
Finite-lived intangible assets, accumulated amortization	4,362	4,370
Total intangible assets, net book value	5,740	6,011
Total	5,905
Finite-lived intangible assets, gross carrying value	(1,282)	(1,004)
Finite-lived intangible assets, accumulated amortization	(1,118)	(876)
Total	(165)	(128)
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	7,915	7,915
Finite-lived intangible assets, accumulated amortization	5,163	5,024
Total	2,752	2,891
Trade Names
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	2,686	2,686
Finite-lived intangible assets, accumulated amortization	224	157
Total	2,462	2,529
Developed Technology
Finite-lived Intangible Assets [Roll Forward]
Finite-lived intangible assets, gross carrying value	784	784
Finite-lived intangible assets, accumulated amortization	93	65
Total	$ 691	$ 719

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 31, 2012	Mar. 31, 2020	Mar. 31, 2019
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 222	$ 62
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	Mar. 31, 2020USD ($)
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract]
2020	$ 708
2021	901
2022	866
2023	837
2024	813
Thereafter	1,780
Total	$ 5,905

Revolving Credit Facility and_3

Revolving Credit Facility and Long-Term Debt - Schedule of Long-Term Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revolving credit facilities | Revolving Credit Facility, Maturing March 2024
Debt Instrument [Line Items]
Total outstanding debt	$ 301	$ 15,655

Revolving Credit Facility and_4

Revolving Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018	May 31, 2019
Debt Instrument [Line Items]
Interest expense, debt	$ 200,000	$ 200,000
Amortization of debt financing costs	$ 47,000	$ 47,000
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%
Remaining borrowing capacity	$ 21,400,000
Revolving Credit Facility, Maturing March 2024 | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate	3.75%
Revolving Credit Facility, Maturing March 2024 | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	3.00%
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 ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (1,824)	$ 164
Effective income tax rate	33.90%	5.10%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ (1,824)	$ 164
Effective income tax rate	33.90%	5.10%
Unrecognized tax benefits inclusive of interest and penalties	$ 2,200
Interest and penalties	$ 700

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 999	$ 522
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	58	(125)
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	199	116
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	125	74
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 617	$ 457

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Activity and Total Number of Shares Available for Grant (Details)	3 Months Ended
	Mar. 31, 2020shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance, beginning of period	1,777,000
Options granted	(49,350)
Options cancelled	26,190
Restricted stock granted	(3,000)
Forfeited/Expired shares added back	4,000
Balance, end of period	1,755,000

Stock-Based Compensation - St_3

Stock-Based Compensation - Stock Option Activity (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares)	2,142,925
Granted (in shares)	49,350
Exercised (in shares)	(5,707)
Forfeited (in shares)	(26,190)
Outstanding end of period (in shares)	2,160,378	2,142,925
Vested and expected to vest (in shares)	2,111,618
Exercisable (in shares)	1,130,521
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share)	$ 7.83
Granted (in dollars per share)	5.55
Exercised (in dollars per share)	3.19
Forfeited (in dollars per share)	11.61
Outstanding end of period (in dollars per share)	7.75	$ 7.83
Vested and expected to vest (in dollars per share)	7.76
Exercisable (in dollars per share)	$ 6.50
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term	6 years 11 months 1 day	7 years 1 month 17 days
Vested and expected to vest, weighted average remaining contractual term	6 years 10 months 17 days
Exercisable, weighted average remaining contractual term	5 years 4 months 9 days
Outstanding, intrinsic value	$ 2,755,627	$ 6,545,982
Vested and expected to vest, intrinsic value	2,708,414
Exercisable, intrinsic value	$ 1,569,200

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture period after ending employment	90 days
Options exercised, intrinsic value	$ 11,000
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares	$ 2.69
Estimated grant date fair value of options vested	$ 200
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	10 years
Total unrecognized compensation cost	$ 3,100
Compensation cost not yet recognized, period for recognition	2 years 7 months 6 days
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 4,800
Compensation cost not yet recognized, period for recognition	2 years 4 months 24 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)	3 Months Ended
	Mar. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	0.70%
Risk-free interest rate, maximum	1.40%
Expected volatility, minimum	50.10%
Expected volatility, maximum	51.30%
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)	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	3,000
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)	421,490
Granted (in shares)	3,175
Vested (in shares)	(19,345)
Forfeited (in shares)	(4,282)
Outstanding end of period (in shares)	401,038
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	$ 15.06
Vested (in dollars per share) | $ / shares	23.65
Forfeited (in dollars per share) | $ / shares	12.10
Outstanding end of period (in dollars per share) | $ / shares	$ 14.56

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
	Mar. 31, 2020	Mar. 31, 2019
Basic and diluted:
Net income (loss)	$ (3,555)	$ 3,055
Unrealized gain on financial instrument obligation		(1,601)
Net income (loss) - diluted	$ (3,555)	$ 1,454
Basic:
Weighted-average common shares outstanding, basic (in shares)	14,495	14,336
Dilutive effect of restricted stock		55
Dilutive effect of stock options		1,053
Dilutive effect of warrants		816
Diluted:
Weighted-average common shares outstanding, diluted (in shares)	14,495	16,260
Net income (loss) per share:
Basic (in dollars per share)	$ (0.25)	$ 0.21
Diluted (in dollars per share)	$ (0.25)	$ 0.09

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
	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,103	346
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	2,147	145
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	550
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	406	201

Segment Information - Schedule

Segment Information - Schedule of Total Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 35,007	$ 44,846
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	27,020	35,107
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	1,447	4,312
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	4,550	4,192
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 1,990	$ 1,235

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) € in Millions, $ in Millions	Jul. 20, 2016EUR (€)	Mar. 31, 2020USD ($)	Aug. 05, 2013
Operating Leased Assets [Line Items]
Operating lease, expense		$ 0.3
Operating lease, payments		$ 0.2
Minimum
Operating Leased Assets [Line Items]
Operating lease remaining lease term		1 year
Maximum
Operating Leased Assets [Line Items]
Operating lease remaining lease term		9 years
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
	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 743	$ 668
Warranty costs accrued	146	243
Settlements of warranty claims	(177)	(207)
Warranty, end of period	$ 712	$ 704

Commitments and Contingencies_3

Commitments and Contingencies - Components of the Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands	Mar. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 1,577
Lease liability obligations, current	540
Lease liability obligations, noncurrent	1,079
Total lease liability obligations	$ 1,619
Weighted-average remaining lease term (in years)	2 years 10 months 24 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) $ in Thousands	Mar. 31, 2020USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 491
2021	575
2022	220
2023	97
2024	97
Thereafter	275
Total minimum payments	1,755
Less: Imputed interest	(136)
Total	$ 1,619