Turtle Beach (TBCH) 10-Q 5 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Oct. 31, 2020
Document Information [Line Items]
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	Sep. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		15,187,576
Entity Shell Company	false
Trading Symbol	HEAR
Entity Current Reporting Status	Yes
Entity File Number	001-35465
Entity Tax Identification Number	27-2767540
Entity Address, Address Line One	44 South Broadway
Entity Address, Address Line Two	4th Floor
Entity Address, City or Town	White Plains
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10601
City Area Code	888
Local Phone Number	496-8001
Entity Incorporation, State or Country Code	NV
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock, par value $0.001
Security Exchange Name	NASDAQ
Former Address
Document Information [Line Items]
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

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current Assets:
Cash and cash equivalents	$ 27,265	$ 8,249
Accounts receivable, net	53,825	44,530
Inventories	79,453	45,711
Prepaid expenses and other current assets	8,451	4,057
Total Current Assets	168,994	102,547
Property and equipment, net	5,004	3,962
Deferred income taxes	7,800	7,439
Goodwill	8,178	8,515
Intangible assets, net	5,325	6,011
Other assets	6,230	2,877
Total Assets	201,531	131,351
Current Liabilities:
Revolving credit facility		15,655
Accounts payable	63,699	22,511
Other current liabilities	34,432	26,422
Total Current Liabilities	98,131	64,588
Deferred income taxes	140	153
Other liabilities	7,524	3,223
Total Liabilities	105,795	67,964
Commitments and Contingencies
Stockholders’ Equity
Common stock, $0.001 par value - 25,000,000 shares authorized; 15,186,990 and 14,488,182 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively	15	14
Additional paid-in capital	187,065	176,776
Accumulated deficit	(91,076)	(113,519)
Accumulated other comprehensive income (loss)	(268)	116
Total Stockholders’ Equity	95,736	63,387
Total Liabilities and Stockholders’ Equity	$ 201,531	$ 131,351

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 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	15,186,990	14,488,182
Common stock shares outstanding	15,186,990	14,488,182

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Net revenue	$ 112,494	$ 46,723	$ 227,181	$ 132,899
Cost of revenue	66,358	31,680	141,033	89,898
Gross profit	46,136	15,043	86,148	43,001
Operating expenses:
Selling and marketing	11,857	10,150	29,064	24,581
Research and development	3,260	2,198	8,688	5,388
General and administrative	6,799	5,214	19,232	16,057
Total operating expenses	21,916	17,562	56,984	46,026
Operating income (loss)	24,220	(2,519)	29,164	(3,025)
Interest expense	103	240	355	595
Other non-operating expense (income), net	(101)	302	(1,520)	(1,430)
Income (loss) before income tax	24,218	(3,061)	30,329	(2,190)
Income tax expense	6,424	63	7,886	252
Net income (loss)	$ 17,794	$ (3,124)	$ 22,443	$ (2,442)
Net income (loss) per share
Basic (in dollars per share)	$ 1.20	$ (0.22)	$ 1.53	$ (0.17)
Diluted (in dollars per share)	$ 1.04	$ (0.22)	$ 1.41	$ (0.17)
Weighted average number of shares:
Basic (in shares)	14,845	14,506	14,642	14,477
Diluted (in shares)	17,154	14,506	15,961	14,477

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 17,794	$ (3,124)	$ 22,443	$ (2,442)
Foreign currency translation adjustment	548	(330)	(384)	(323)
Other comprehensive income (loss)	548	(330)	(384)	(323)
Comprehensive income (loss)	$ 18,342	$ (3,454)	$ 22,059	$ (2,765)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 22,443,000	$ (2,442,000)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,302,000	3,477,000
Amortization of intangible assets	665,000	413,000
Amortization of debt financing costs	142,000	142,000
Stock-based compensation	3,977,000	2,555,000
Deferred income taxes	(375,000)
Change in sales returns reserve	2,173,000	(4,262,000)
Provision for obsolete inventory	2,216,000	2,081,000
Provision for doubtful accounts		(8,000)
Unrealized gain on financial instrument obligation		(1,601,000)
Increase in fair value of contingent consideration	510,000
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable	(11,468,000)	30,017,000
Inventories	(35,957,000)	(12,622,000)
Accounts payable	40,763,000	14,426,000
Prepaid expenses and other assets	(4,322,000)	(1,005,000)
Income taxes payable	6,769,000	(1,569,000)
Other liabilities	1,800,000	(2,298,000)
Net cash provided by operating activities	32,638,000	27,304,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(3,918,000)	(1,628,000)
Acquisition of a business, net of cash acquired		(12,667,000)
Net cash used for investing activities	(3,918,000)	(14,295,000)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	185,486,000	148,087,000
Repayment of revolving credit facilities	(201,141,000)	(158,911,000)
Proceeds from sale of equity securities	4,372,000
Proceeds from exercise of stock options and warrants	2,155,000	214,000
Repurchase of common stock		(1,941,000)
Repurchase of common stock to satisfy employee tax withholding obligations	(215,000)	(201,000)
Net cash used for financing activities	(9,343,000)	(12,752,000)
Effect of exchange rate changes on cash and cash equivalents	(361,000)	(298,000)
Net increase (decrease) in cash and cash equivalents	19,016,000	(41,000)
Cash and cash equivalents - beginning of period	8,249,000	7,078,000
Cash and cash equivalents - end of period	27,265,000	7,037,000
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	245,000	488,000
Cash paid for income taxes	$ 800,000	447,000
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, 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)	(2,442)
Other comprehensive income (loss), net of tax	(323)
Ending Balance at Sep. 30, 2019	41,606	$ 15	176,295	(133,905)	(799)
Ending Balance, shares at Sep. 30, 2019		14,513,000
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 (loss), 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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(3,124)			(3,124)
Other comprehensive income (loss), net of tax	(330)				(330)
Issuance of restricted stock		$ 1	(1)
Issuance of restricted stock, shares		43,000
Repurchase of common stock and retirement of related treasury shares	(56)		(56)
Repurchase of common stock and retirement of related treasury shares, shares		(6,000)
Common stock buyback	(442)		(442)
Common stock buyback, shares		(50,000)
Stock options exercised	120		120
Stock options exercised, shares		33,000
Stock-based compensation	1,030		1,030
Ending Balance at Sep. 30, 2019	41,606	$ 15	176,295	(133,905)	(799)
Ending Balance, shares at Sep. 30, 2019		14,513,000
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		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
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)	22,443
Other comprehensive income (loss), net of tax	$ (384)
Stock options exercised, shares	342,542
Ending Balance at Sep. 30, 2020	$ 95,736	$ 15	187,065	(91,076)	(268)
Ending Balance, shares at Sep. 30, 2020		15,187,000
Beginning Balance at Mar. 31, 2020	59,983	$ 15	177,745	(117,074)	(703)
Beginning Balance, shares at Mar. 31, 2020		14,506,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	8,204			8,204
Other comprehensive income (loss), net of tax	(113)				(113)
Issuance of restricted stock, shares		85,000
Repurchase of common stock and retirement of related treasury shares	(60)		(60)
Repurchase of common stock and retirement of related treasury shares, shares		(6,000)
Stock options exercised	41		41
Stock options exercised, shares		9,000
Stock-based compensation	1,406		1,406
Ending Balance at Jun. 30, 2020	69,461	$ 15	179,132	(108,870)	(816)
Ending Balance, shares at Jun. 30, 2020		14,594,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	17,794			17,794
Other comprehensive income (loss), net of tax	548				548
Issuance of restricted stock, shares		34,000
Repurchase of common stock and retirement of related treasury shares	(107)		(107)
Repurchase of common stock and retirement of related treasury shares, shares		(6,000)
Stock options exercised	2,096		2,096
Stock options exercised, shares		327,000
Proceeds of sales of equity securities	4,372		4,372
Proceeds of sales of equity securities, shares		238,000
Stock-based compensation	1,572		1,572
Ending Balance at Sep. 30, 2020	$ 95,736	$ 15	$ 187,065	$ (91,076)	$ (268)
Ending Balance, shares at Sep. 30, 2020		15,187,000

Background and Basis of Present

Background and Basis of Presentation	9 Months Ended
	Sep. 30, 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 White Plains, New York and incorporated in the state of Nevada in 2010, is a premier audio and gaming technology company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach® 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 White Plains, New York. Basis of Presentation The accompanying interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. All intercompany accounts and transactions have been eliminated in consolidation. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), have been condensed or omitted pursuant to those rules and regulations. The Company believes that the disclosures made are adequate to make the information presented not misleading. The results of operations for the interim periods are not necessarily indicative of the results of operations for the entire fiscal year. The December 31, 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 continues to affect the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. During the first nine months of 2020, we experienced a significant increase in demand for our products due to the COVID-19-related stay-at-home orders, which resulted in increased revenue. Nonetheless, we continue to actively monitor and assess the impact of the pandemic on our business, operations, and financial condition.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 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 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes,

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 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 ROCCAT purchase price allocation is shown in the following table: (In thousands) Amount Receivables $ 1,366 Inventories 6,986 Property and equipment 1,110 Intangible assets 5,589 Other long-term assets 461 Accounts payable (5,399 ) Accrued and other current liabilities (3,704 ) Contingent consideration (1,592 ) Other non-current liabilities (328 ) Total identifiable net assets 4,489 Goodwill 8,178 Total consideration $ 12,667 The fair value of ROCCAT’s assets and liabilities was determined based on estimates and assumptions that management believes are reasonable. These adjustments primarily relate to certain short-term assets, intangible assets, and certain liabilities including contingent consideration. The Company and the sellers of ROCCAT have agreed to settle an amount related to sales returns and allowances for approximately $1.8 million, which is included in “Accrued and other current liabilities” in the table above. 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 fair value of ROCCAT’s identifiable intangible assets was determined 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 and nine months ended September 30, 2020, revenue related to ROCCAT products was $9.6 million and $22.0 million, respectively. 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 has increased as a result of current year revenue performance.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 30, 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 September 30, 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 September 30, 2020 December 31, 2019 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 27,265 $ 27,265 $ 8,249 $ 8,249 Revolving credit facility $ — $ — $ 15,655 $ 15,655 Contingent consideration liabilities $ 1,631 $ 1,631 $ 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	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 7,608 $ 4,046 $ 8,815 $ 9,212 Reserve accrual 7,243 4,477 14,731 9,757 Recoveries and deductions, net (3,863 ) (3,573 ) (12,558 ) (14,019 ) Balance, end of period $ 10,988 $ 4,950 $ 10,988 $ 4,950

Composition of Certain Financia

Composition of Certain Financial Statement Items	9 Months Ended
	Sep. 30, 2020
Condensed Consolidated Balance Sheet Components [Abstract]
Composition of Certain Financial Statement Items	Note Inventories Inventories consist of the following: September 30, 2020 December 31, 2019 (in thousands) Raw materials $ 1,106 $ 1,288 Finished goods 78,347 44,423 Total inventories $ 79,453 $ 45,711 Property and Equipment, net Property and equipment, net, consists of the following: September 30, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 2,116 $ 1,783 Software and software development 963 439 Furniture and fixtures 1,083 601 Tooling 6,203 5,340 Leasehold improvements 1,687 1,326 Demonstration units and convention booths 13,803 12,051 Total property and equipment, gross 25,855 21,540 Less: accumulated depreciation and amortization (20,851 ) (17,578 ) Total property and equipment, net $ 5,004 $ 3,962 Other Current Liabilities Other current liabilities consist of the following: September 30, 2020 December 31, 2019 (in thousands) Accrued royalty 3,690 3,880 Accrued freight 4,701 1,977 Accrued employee expenses 4,171 3,674 Accrued marketing 3,467 3,695 Accrued expenses 18,403 13,196 Total other current liabilities $ 34,432 $ 26,422 Other non-operating expense (income), net Other non-operating expense (income), net consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Unrealized gain on financial instrument obligation $ — $ — $ — $ (1,601 ) Acquisition-related settlement — — (1,702 ) — Other non-operating expense (income) (276 ) 302 (328 ) 171 Change in fair value of contingent consideration 175 — 510 — Total other non-operating expense (income),net $ (101 ) $ 302 $ (1,520 ) $ (1,430 ) In the nine months ended September 30, 2020, the Company recorded income of approximately $1.7 million for a settlement of claims unrelated to purchase price pursuant to a previously closed acquisition.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	9 Months Ended
	Sep. 30, 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 September 30, 2020 and December 31, 2019 consist of: September 30, 2020 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,444 $ 2,471 Tradenames 2,686 358 2,328 Developed technology 784 149 635 Foreign currency (1,111 ) (1,002 ) (109 ) Total Intangible Assets $ 10,274 $ 4,949 $ 5,325 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 and $0.7 million was recognized for the three and nine months ended September 30, 2020, respectively, and $0.2 million and $0.4 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2020 $ 237 2021 901 2022 866 2023 837 2024 813 Thereafter 1,780 Total $ 5,434 Changes in the carrying values of goodwill for the nine months ended September 30, 2020 are as follows: (in thousands) Balance as of January 1, 2020 $ 8,515 ROCCAT acquisition opening balance adjustment (337 ) Balance as of September 30, 2020 $ 8,178

Revolving Credit Facility and L

Revolving Credit Facility and Long-Term Debt	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Revolving Credit Facility and Long-Term Debt	Note September 30, 2020 December 31, 2019 (in thousands) Revolving credit facility, maturing March 2024 $ - $ 15,655 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 nine months ended September 30, 2020, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2019, respectively. Amortization of deferred financing costs was $47,000 and $0.1 million for the three and nine months ended September 30, 2020, respectively, and $47,000 and $0.1 million for the three and nine months ended September 30, 2019, 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 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 September 30, 2020, interest rates for outstanding borrowings were 3.75% for base rate loans and 3.00% for LIBOR rate loans. As of September 30, 2020, there were no outstanding borrowings under the Credit Facility. 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 September 30, 2020, the Company was in compliance with all financial covenants under the Credit Facility, as amended, and excess borrowing availability was approximately $79.8 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Income tax expense $ 6,424 $ 63 $ 7,886 $ 252 Effective income tax rate 26.5 % (2.1 %) 26.0 % (11.5 %) Income tax expense for the three and nine months ended September 30, 2020 was $6.4 million at an effective tax rate of 26.5% and $7.9 million at an effective tax rate of 26.0%, respectively. Income tax expense for the three and nine months ended September 30, 2019 was $63 thousand at an effective tax rate of (2.1%) and $0.3 million at an effective tax rate of (11.5%), respectively. The effective tax rate for the three and nine months ended September 30, 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 September 30, 2020, the Company had uncertain tax positions of $2.9 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 201 7 through 201 9 , and the state tax years open under the statute of limitations are 201 5 through 201 9 . 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	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 284 $ 108 $ 622 $ 76 Selling and marketing 331 200 809 490 Research and development 196 123 492 311 General and administrative 761 599 2,054 1,678 Total stock-based compensation $ 1,572 $ 1,030 $ 3,977 $ 2,555 The following table presents the stock activity and the total number of shares available for grant as of September 30, 2020: (in thousands) Balance at December 31, 2019 1,777 Options granted (894 ) Options cancelled 45 Restricted stock granted (425 ) Forfeited/Expired restricted stock added back 9 Balance at September 30, 2020 512 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 894,254 7.12 Exercised (342,542 ) 6.29 Forfeited (45,463 ) 9.71 Outstanding at September 30, 2020 2,649,174 $ 7.76 7.53 $ 28,415,143 Vested and expected to vest at September 30, 2020 2,571,844 $ 7.78 7.48 $ 27,650,352 Exercisable at September 30, 2020 1,111,996 $ 7.38 5.59 $ 12,566,658 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 $3.9 million for the nine months ended September 30, 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 nine months ended September 30, 2020. Expected term (in years) 6.1 Risk-free interest rate 0.4%- 1.4% Expected volatility 50.1%- 58.9% 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 nine months ended September 30, 2020 was $3.70. The total estimated fair value of employee options vested during the nine months ended September 30, 2020 was $1.4 million. As of September 30, 2020, total unrecognized compensation cost related to nonvested stock options granted to employees was $5.7 million, which is expected to be recognized over a remaining weighted average vesting period of 2.8 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 424,952 7.18 Vested (141,424 ) 16.33 Shares forfeited (8,789 ) 9.88 Nonvested restricted stock at September 30, 2020 696,229 $ 10.06 As of September 30, 2020, total unrecognized compensation costs related to the nonvested restricted stock awards was $6.5 million, which will be recognized over a remaining weighted average vesting period of 2.8 years.

Stockholder's Equity

Stockholder's Equity	9 Months Ended
	Sep. 30, 2020
Equity [Abstract]
Stockholder's Equity	Note 11. Stockholder’s Equity At-the-Market Common Stock Issuance  On August 7, 2020, the Company entered into an ATM Equity Offering Sales Agreement (the “Sales Agreement”) with BofA Securities, Inc. (the “Sales Agent”). Pursuant to the terms of the Sales Agreement, the Company may sell from time to time through the Sales Agent shares of the Company’s common stock, par value $0.001 per share, having an aggregate offering price of up to $30 million. The Company intends to use the net proceeds from the offering, after deducting the Sales Agent’s commissions and the Company’s offering expenses, to support its strategic growth plans, as well as for general corporate purposes. During the three months ended September 30, 2020, the Company sold a total of 237,813 shares of its common stock under the Sales Agreement in the open market at an average gross selling price of $18.39 per share for net proceeds of $4.4 million.

Net Income (Loss) Per Share

Net Income (Loss) Per Share	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands, except per-share data) Net income (loss) $ 17,794 $ (3,124 ) $ 22,443 $ (2,442 ) Weighted average common shares outstanding — Basic 14,845 14,506 14,642 14,477 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock 364 — 179 — Dilutive effect of stock options 1,396 — 774 — Dilutive effect of warrants 550 — 367 — Weighted average common shares outstanding — Diluted 17,154 14,506 15,961 14,477 Net income (loss) per share: Basic $ 1.20 $ (0.22 ) $ 1.53 $ (0.17 ) Diluted $ 1.04 $ (0.22 ) $ 1.41 $ (0.17 ) 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Stock options 126 2,135 783 1,961 Warrants — 550 — 729 Unvested restricted stock awards 79 404 129 330 Total 205 3,089 912 3,020

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2020
Segment Reporting [Abstract]
Segment Information	Note The following table represents total net revenues based on where customers are physically located: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) North America $ 84,597 $ 33,295 $ 166,779 $ 97,019 United Kingdom 11,498 4,965 24,506 13,111 Europe 12,219 6,489 26,800 18,065 Other 4,180 1,974 9,096 4,704 Total net revenues $ 112,494 $ 46,723 $ 227,181 $ 132,899

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 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 (the “Merger”). Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a merger that allegedly undervalued the Company. VTBH and the Company were named as defendants in these lawsuits under the theory that they had aided and abetted the Company’s Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which, by agreement, was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada case denied the plaintiffs’ motion for a preliminary injunction. Following the closing of the Merger, the Nevada plaintiffs filed a second amended complaint, which made essentially the same allegations and sought monetary damages as well as an order rescinding the Merger. The California plaintiffs dismissed their action without prejudice, and sought to intervene in the Nevada action, which was granted. Subsequent to the intervention, the plaintiffs filed a third amended complaint, which made essentially the same allegations as prior complaints and sought monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. On September 14, 2017, a unanimous en banc panel of the Nevada Supreme Court granted defendants’ petition for writ of mandamus and ordered the trial court to dismiss the complaint but provided a limited basis upon which plaintiffs could seek to amend their complaint. Plaintiffs amended their complaint on December 1, 2017 to assert the same claims in a derivative capacity on behalf of the Company, as a well as in a direct capacity, against VTBH, Stripes Group, LLC, SG VTB Holdings, LLC, and the former members of the Company’s Board of Directors. All defendants moved to dismiss this amended complaint on January 2, 2018, and those motions were denied on March 13, 2018. Defendants petitioned the Nevada Supreme Court to reverse this ruling on April 18, 2018. On June 15, 2018, the Nevada Supreme Court denied defendants’ writ petition without prejudice. The district court subsequently entered a pretrial schedule and set trial for November 2019. On January 18, 2019, the district court certified a class of shareholders of the Company as of January 15, 2014. On October 11, 2019, the parties notified the district court that they had reached a settlement that would resolve the pending action if ultimately approved by the Court. On January 13, 2020, the district court preliminarily approved the settlement between the plaintiffs and all defendants. A final approval hearing was held on May 18, 2020, wherein the Court approved the settlement and entered final judgment. On May 22, 2020, PAMTP LLC, which purports to hold the claims of eight shareholders who opted out of the class settlement described above, brought suit against the Company, the Company’s CEO, Juergen Stark, Stripes Group, LLC, SG VTB Holdings, LLC, Kenneth Fox, and former members of the Company’s Board of Directors in Nevada state court. This opt-out action asserts the same direct claims that were asserted by the class of shareholders described above. The defendants filed two motions to dismiss this complaint, which were heard on August 10, 2020. The Court denied those motions by order of August 20, 2020. Discovery is ongoing and the case is scheduled for trial in August 2021. Commercial Dispute : On July 20, 2016, BigBen Interactive S.A. (“BigBen”) filed a statement of claim against VTB before the Regional Court of Berlin, Germany. The statement of claim alleged that VTB’s termination of a distribution agreement by and between BigBen and VTB breached the terms thereof and was invalid, and that BigBen was entitled to damages as a result. On September 30, 2020, the Company and BigBen mutually agreed to resolve this claim. 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 continued closure of the Court, the April 6, 2020 trial date was vacated and the current trial date is February 26, 2021. Settlement of Disputes : On May 5, 2020, Jöllenbeck GmbH and First Wise Media GmbH, two of our distributors and affiliates of the sellers of the ROCCAT business, filed for insolvency in Germany. On June 30, 2020, the Company entered into a Settlement Agreement with those companies and the sellers of the ROCCAT business pursuant to which, among other things, the Company received a payment for certain outstanding claims and accounts receivable. On July 1, 2020, the insolvency proceedings for the two companies formally commenced. The Company has filed a claim in those proceedings for approximately € 130,000 with respect to the remaining outstanding accounts receivable. 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 September 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Warranty, beginning of period $ 813 $ 752 $ 743 $ 668 Warranty costs accrued 464 162 1,022 663 Settlements of warranty claims (316 ) (169 ) (804 ) (586 ) Warranty, end of period $ 961 $ 745 $ 961 $ 745 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 September 30, 2020 (in thousands) Right-of-use assets Other assets $ 5,297 Lease liability obligations, current Other current liabilities $ 684 Lease liability obligations, noncurrent Other liabilities 4,764 Total lease liability obligations $ 5,448 Weighted-average remaining lease term (in years) 6.5 Weighted-average discount rate 3.75 % During the nine months ended September 30, 2020, the Company recognized approximately $1.0 million of lease costs in operating expenses and approximately $0.5 million of operating cash flows from operating leases. Approximate future minimum lease payments for the Company’s right of use assets over the remaining lease periods as of September 30, 2020, are as follows: (in thousands) 2020 $ 164 2021 981 2022 671 2023 556 2024 564 Thereafter 3,506 Total minimum payments 6,442 Less: Imputed interest (994 ) Total $ 5,448

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 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 continues to affect the Company’s business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict. During the first nine months of 2020, we experienced a significant increase in demand for our products due to the COVID-19-related stay-at-home orders, which resulted in increased revenue. Nonetheless, we continue to actively monitor and assess the impact of the pandemic on our business, operations, and financial condition.
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 In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes,

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2020
Business Combinations [Abstract]
Summary of ROCCAT Purchase Price Allocation	The ROCCAT purchase price allocation is shown in the following table: (In thousands) Amount Receivables $ 1,366 Inventories 6,986 Property and equipment 1,110 Intangible assets 5,589 Other long-term assets 461 Accounts payable (5,399 ) Accrued and other current liabilities (3,704 ) Contingent consideration (1,592 ) Other non-current liabilities (328 ) Total identifiable net assets 4,489 Goodwill 8,178 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)	9 Months Ended
	Sep. 30, 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 September 30, 2020 and December 31, 2019 September 30, 2020 December 31, 2019 Reported Fair Value Reported Fair Value (in thousands) Financial Assets and Liabilities: Cash and cash equivalents $ 27,265 $ 27,265 $ 8,249 $ 8,249 Revolving credit facility $ — $ — $ 15,655 $ 15,655 Contingent consideration liabilities $ 1,631 $ 1,631 $ 1,121 $ 1,121

Allowance for Sales Returns (Ta

Allowance for Sales Returns (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Balance, beginning of period $ 7,608 $ 4,046 $ 8,815 $ 9,212 Reserve accrual 7,243 4,477 14,731 9,757 Recoveries and deductions, net (3,863 ) (3,573 ) (12,558 ) (14,019 ) Balance, end of period $ 10,988 $ 4,950 $ 10,988 $ 4,950

Composition of Certain Financ_2

Composition of Certain Financial Statement Items (Tables)	9 Months Ended
	Sep. 30, 2020
Condensed Consolidated Balance Sheet Components [Abstract]
Schedule of Inventory	Inventories consist of the following: September 30, 2020 December 31, 2019 (in thousands) Raw materials $ 1,106 $ 1,288 Finished goods 78,347 44,423 Total inventories $ 79,453 $ 45,711
Schedule of Property and Equipment	Property and equipment, net, consists of the following: September 30, 2020 December 31, 2019 (in thousands) Machinery and equipment $ 2,116 $ 1,783 Software and software development 963 439 Furniture and fixtures 1,083 601 Tooling 6,203 5,340 Leasehold improvements 1,687 1,326 Demonstration units and convention booths 13,803 12,051 Total property and equipment, gross 25,855 21,540 Less: accumulated depreciation and amortization (20,851 ) (17,578 ) Total property and equipment, net $ 5,004 $ 3,962
Other Current Liabilities	Other current liabilities consist of the following: September 30, 2020 December 31, 2019 (in thousands) Accrued royalty 3,690 3,880 Accrued freight 4,701 1,977 Accrued employee expenses 4,171 3,674 Accrued marketing 3,467 3,695 Accrued expenses 18,403 13,196 Total other current liabilities $ 34,432 $ 26,422
Other Non-operating Expense (Income), Net	Other non-operating expense (income), net consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Unrealized gain on financial instrument obligation $ — $ — $ — $ (1,601 ) Acquisition-related settlement — — (1,702 ) — Other non-operating expense (income) (276 ) 302 (328 ) 171 Change in fair value of contingent consideration 175 — 510 — Total other non-operating expense (income),net $ (101 ) $ 302 $ (1,520 ) $ (1,430 )

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	Acquired identifiable intangible assets, and related accumulated amortization, as of September 30, 2020 and December 31, 2019 consist of: September 30, 2020 Gross Carrying Value Accumulated Amortization Net Book Value (in thousands) Customer relationships $ 7,915 $ 5,444 $ 2,471 Tradenames 2,686 358 2,328 Developed technology 784 149 635 Foreign currency (1,111 ) (1,002 ) (109 ) Total Intangible Assets $ 10,274 $ 4,949 $ 5,325 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 September 30, 2020, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows: (in thousands) 2020 $ 237 2021 901 2022 866 2023 837 2024 813 Thereafter 1,780 Total $ 5,434
Schedule of Changes in Carrying Values of Goodwill	Changes in the carrying values of goodwill for the nine months ended September 30, 2020 are as follows: (in thousands) Balance as of January 1, 2020 $ 8,515 ROCCAT acquisition opening balance adjustment (337 ) Balance as of September 30, 2020 $ 8,178

Revolving Credit Facility and_2

Revolving Credit Facility and Long-Term Debt (Tables)	9 Months Ended
	Sep. 30, 2020
Debt Disclosure [Abstract]
Schedule of Long-Term Debt Instruments	September 30, 2020 December 31, 2019 (in thousands) Revolving credit facility, maturing March 2024 $ - $ 15,655

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Income tax expense $ 6,424 $ 63 $ 7,886 $ 252 Effective income tax rate 26.5 % (2.1 %) 26.0 % (11.5 %)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Cost of revenue $ 284 $ 108 $ 622 $ 76 Selling and marketing 331 200 809 490 Research and development 196 123 492 311 General and administrative 761 599 2,054 1,678 Total stock-based compensation $ 1,572 $ 1,030 $ 3,977 $ 2,555
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 September 30, 2020: (in thousands) Balance at December 31, 2019 1,777 Options granted (894 ) Options cancelled 45 Restricted stock granted (425 ) Forfeited/Expired restricted stock added back 9 Balance at September 30, 2020 512
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 894,254 7.12 Exercised (342,542 ) 6.29 Forfeited (45,463 ) 9.71 Outstanding at September 30, 2020 2,649,174 $ 7.76 7.53 $ 28,415,143 Vested and expected to vest at September 30, 2020 2,571,844 $ 7.78 7.48 $ 27,650,352 Exercisable at September 30, 2020 1,111,996 $ 7.38 5.59 $ 12,566,658
Schedule of Weighted-Average Assumptions	The following are the assumptions for options granted during the nine months ended September 30, 2020 Expected term (in years) 6.1 Risk-free interest rate 0.4%- 1.4% Expected volatility 50.1%- 58.9% 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 424,952 7.18 Vested (141,424 ) 16.33 Shares forfeited (8,789 ) 9.88 Nonvested restricted stock at September 30, 2020 696,229 $ 10.06

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands, except per-share data) Net income (loss) $ 17,794 $ (3,124 ) $ 22,443 $ (2,442 ) Weighted average common shares outstanding — Basic 14,845 14,506 14,642 14,477 Plus incremental shares from assumed conversions: Dilutive effect of restricted stock 364 — 179 — Dilutive effect of stock options 1,396 — 774 — Dilutive effect of warrants 550 — 367 — Weighted average common shares outstanding — Diluted 17,154 14,506 15,961 14,477 Net income (loss) per share: Basic $ 1.20 $ (0.22 ) $ 1.53 $ (0.17 ) Diluted $ 1.04 $ (0.22 ) $ 1.41 $ (0.17 )
Schedule of Antidilutive Securities Excluded from Computation of Diluted Net Income per Share of Common Stock	Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Stock options 126 2,135 783 1,961 Warrants — 550 — 729 Unvested restricted stock awards 79 404 129 330 Total 205 3,089 912 3,020

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) North America $ 84,597 $ 33,295 $ 166,779 $ 97,019 United Kingdom 11,498 4,965 24,506 13,111 Europe 12,219 6,489 26,800 18,065 Other 4,180 1,974 9,096 4,704 Total net revenues $ 112,494 $ 46,723 $ 227,181 $ 132,899

Commitment and Contingencies (T

Commitment and Contingencies (Tables)	9 Months Ended
	Sep. 30, 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (in thousands) Warranty, beginning of period $ 813 $ 752 $ 743 $ 668 Warranty costs accrued 464 162 1,022 663 Settlements of warranty claims (316 ) (169 ) (804 ) (586 ) Warranty, end of period $ 961 $ 745 $ 961 $ 745
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 September 30, 2020 (in thousands) Right-of-use assets Other assets $ 5,297 Lease liability obligations, current Other current liabilities $ 684 Lease liability obligations, noncurrent Other liabilities 4,764 Total lease liability obligations $ 5,448 Weighted-average remaining lease term (in years) 6.5 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 September 30, 2020, are as follows: (in thousands) 2020 $ 164 2021 981 2022 671 2023 556 2024 564 Thereafter 3,506 Total minimum payments 6,442 Less: Imputed interest (994 ) Total $ 5,448

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details)	Sep. 30, 2020
ASU 2017-04
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2020
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true
ASU 2019-12
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adoption Date	Jan. 1, 2020
Change in Accounting Principle, Accounting Standards Update, Adopted [true false]	true
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false]	true

Acquisitions - Additional Infor

Acquisitions - Additional Information (Details) - USD ($)	May 31, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Net of cash	$ 12,700,000
Potential earn outs payments						$ 3,400,000
Revenue		$ 112,494,000	$ 46,723,000	$ 227,181,000	$ 132,899,000
Fair value of contingent consideration						$ 1,600,000
ROCCAT
Business Acquisition [Line Items]
Acquisition costs	3,900,000
Revenue		9,600,000		22,000,000
Fair value of contingent consideration	1,592,000
General and Administrative Expenses | ROCCAT
Business Acquisition [Line Items]
Acquisition costs		$ 0		$ 400,000
Accrued and Other Current Liabilities | ROCCAT
Business Acquisition [Line Items]
Sales returns and allowance	1,800,000
Maximum
Business Acquisition [Line Items]
Potential earn outs payments	$ 3,400,000

Acquisitions - Summary of ROCCA

Acquisitions - Summary of ROCCAT Purchase Price Allocation (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	May 31, 2019
Business Acquisition [Line Items]
Contingent consideration		$ (1,600)
Goodwill	$ 8,178	$ 8,515
ROCCAT
Business Acquisition [Line Items]
Receivables			$ 1,366
Inventories			6,986
Property and equipment			1,110
Intangible assets			5,589
Other long-term assets			461
Accounts payable			(5,399)
Accrued and other current liabilities			(3,704)
Contingent consideration			(1,592)
Other non-current liabilities			(328)
Total identifiable net assets			4,489
Goodwill			8,178
Total consideration			$ 12,667

Acquisitions - Summary of Under

Acquisitions - Summary of Underlying Intangible Assets Related to ROCCAT (Details) - ROCCAT $ in Thousands	9 Months Ended
	Sep. 30, 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	Sep. 30, 2020	Dec. 31, 2019
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	$ 27,265	$ 8,249
Contingent consideration liabilities, fair value disclosure	1,631	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		15,655
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value disclosure	27,265	8,249
Contingent consideration liabilities, fair value disclosure	$ 1,631	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		$ 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 7,608	$ 4,046	$ 8,815	$ 9,212
Reserve accrual	7,243	4,477	14,731	9,757
Recoveries and deductions, net	(3,863)	(3,573)	(12,558)	(14,019)
Balance, end of period	$ 10,988	$ 4,950	$ 10,988	$ 4,950

Composition of Certain Financ_3

Composition of Certain Financial Statement Items - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 1,106	$ 1,288
Finished goods	78,347	44,423
Total inventories	$ 79,453	$ 45,711

Composition of Certain Financ_4

Composition of Certain Financial Statement Items - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 25,855	$ 21,540
Less: accumulated depreciation and amortization	(20,851)	(17,578)
Total property and equipment, net	5,004	3,962
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,116	1,783
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	963	439
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,083	601
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	6,203	5,340
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,687	1,326
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 13,803	$ 12,051

Composition of Certain Financ_5

Composition of Certain Financial Statement Items - Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheet Components [Abstract]
Accrued royalty	$ 3,690	$ 3,880
Accrued freight	4,701	1,977
Accrued employee expenses	4,171	3,674
Accrued marketing	3,467	3,695
Accrued expenses	18,403	13,196
Total other current liabilities	$ 34,432	$ 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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized gain on financial instrument obligation				$ (1,601)
Total other non-operating expense (income),net	$ (101)	$ 302	$ (1,520)	(1,430)
Other Nonoperating Income (Expense)
Schedule of Non-Operating Expense (Income) [Line Items]
Unrealized gain on financial instrument obligation				(1,601)
Acquisition-related settlement			(1,702)
Other non-operating expense (income)	(276)	302	(328)	171
Change in fair value of contingent consideration	175		510
Total other non-operating expense (income),net	$ (101)	$ 302	$ (1,520)	$ (1,430)

Composition of Certain Financ_7

Composition of Certain Financial Statement Items - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)
Condensed Consolidated Balance Sheet Components [Abstract]
Previously closed acquisition settlement income	$ 1.7

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Finite-lived Intangible Assets [Roll Forward]
Total intangible assets, gross carrying value	$ 10,274	$ 10,381
Finite-lived intangible assets, accumulated amortization	4,949	4,370
Total intangible assets, net book value	5,325	6,011
Total	5,434
Finite-lived intangible assets, gross carrying value	(1,111)	(1,004)
Finite-lived intangible assets, accumulated amortization	(1,002)	(876)
Total	(109)	(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	5,444	5,024
Total	2,471	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	358	157
Total	2,328	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	149	65
Total	$ 635	$ 719

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2012	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets		$ 200	$ 200	$ 665	$ 413
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	Sep. 30, 2020USD ($)
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract]
2020	$ 237
2021	901
2022	866
2023	837
2024	813
Thereafter	1,780
Total	$ 5,434

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Values of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2020USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Balance as of January 1, 2020	$ 8,515
ROCCAT acquisition opening balance adjustment	(337)
Balance as of September 30, 2020	$ 8,178

Revolving Credit Facility and_3

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

Revolving Credit Facility and_4

Revolving Credit Facility and Long-Term Debt - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2018	May 31, 2019
Debt Instrument [Line Items]
Interest expense, debt	$ 100,000	$ 200,000	$ 400,000	$ 600,000
Amortization of debt financing costs	47,000	$ 47,000	142,000	$ 142,000
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
Outstanding borrowings	$ 0		$ 0
Debt instrument, covenant, current fixed charge ratio required, minimum	1.00%		1.00%
Remaining borrowing capacity	$ 79,800,000		$ 79,800,000
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 6,424	$ 63	$ 7,886	$ 252
Effective income tax rate	26.50%	(2.10%)	26.00%	(11.50%)

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ 6,424	$ 63	$ 7,886	$ 252
Effective income tax rate	26.50%	(2.10%)	26.00%	(11.50%)
Unrecognized tax benefits inclusive of interest and penalties	$ 2,900		$ 2,900
Interest and penalties	$ 700		$ 700

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 1,572	$ 1,030	$ 3,977	$ 2,555
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	284	108	622	76
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	331	200	809	490
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	196	123	492	311
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 761	$ 599	$ 2,054	$ 1,678

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Activity and Total Number of Shares Available for Grant (Details)	9 Months Ended
	Sep. 30, 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	(894,254)
Options cancelled	45,463
Restricted stock granted	(425,000)
Forfeited/Expired restricted stock added back	9,000
Balance, end of period	512,000

Stock-Based Compensation - St_3

Stock-Based Compensation - Stock Option Activity (Details)	9 Months Ended	12 Months Ended
	Sep. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares) | shares	2,142,925
Granted (in shares) | shares	894,254
Exercised (in shares) | shares	(342,542)
Forfeited (in shares) | shares	(45,463)
Outstanding end of period (in shares) | shares	2,649,174	2,142,925
Vested and expected to vest (in shares) | shares	2,571,844
Exercisable (in shares) | shares	1,111,996
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share) | $ / shares	$ 7.83
Granted (in dollars per share) | $ / shares	7.12
Exercised (in dollars per share) | $ / shares	6.29
Forfeited (in dollars per share) | $ / shares	9.71
Outstanding end of period (in dollars per share) | $ / shares	7.76	$ 7.83
Vested and expected to vest (in dollars per share) | $ / shares	7.78
Exercisable (in dollars per share) | $ / shares	$ 7.38
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, weighted average remaining contractual term	7 years 6 months 10 days	7 years 1 month 17 days
Vested and expected to vest, weighted average remaining contractual term	7 years 5 months 23 days
Exercisable, weighted average remaining contractual term	5 years 7 months 2 days
Outstanding, intrinsic value | $	$ 28,415,143	$ 6,545,982
Vested and expected to vest, intrinsic value | $	27,650,352
Exercisable, intrinsic value | $	$ 12,566,658

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture period after ending employment	90 days
Options exercised, intrinsic value	$ 3.9
Weighted average grant date fair value of options granted (in dollars per share) | $ / shares	$ 3.70
Estimated grant date fair value of options vested	$ 1.4
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period	10 years
Total unrecognized compensation cost	$ 5.7
Compensation cost not yet recognized, period for recognition	2 years 9 months 18 days
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation cost	$ 6.5
Compensation cost not yet recognized, period for recognition	2 years 9 months 18 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)	9 Months Ended
	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate, minimum	0.40%
Risk-free interest rate, maximum	1.40%
Expected volatility, minimum	50.10%
Expected volatility, maximum	58.90%
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)	9 Months Ended
	Sep. 30, 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)	425,000
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)	424,952
Vested (in shares)	(141,424)
Forfeited (in shares)	(8,789)
Outstanding end of period (in shares)	696,229
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
Granted (in dollars per share) | $ / shares	7.18
Vested (in dollars per share) | $ / shares	16.33
Forfeited (in dollars per share) | $ / shares	9.88
Outstanding end of period (in dollars per share) | $ / shares	$ 10.06

Stockholder's Equity - Addition

Stockholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	Aug. 07, 2020	Sep. 30, 2020	Dec. 31, 2019
Class Of Stock [Line Items]
Common stock par value (in dollars per share)		$ 0.001	$ 0.001
Aggregate offering price of common stock		$ 4,372
ATM Equity Offering Sales Agreement
Class Of Stock [Line Items]
Stock issued during period, shares		237,813
Shares issued, price per share		$ 18.39
Net proceeds from issuance of common stock		$ 4,400
ATM Equity Offering Sales Agreement | BofA Securities, Inc.
Class Of Stock [Line Items]
Common stock par value (in dollars per share)	$ 0.001
ATM Equity Offering Sales Agreement | BofA Securities, Inc. | Maximum
Class Of Stock [Line Items]
Aggregate offering price of common stock	$ 30,000

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						9 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic and diluted:
Net income (loss)	$ 17,794	$ 8,204	$ (3,555)	$ (3,124)	$ (2,373)	$ 3,055	$ 22,443	$ (2,442)
Basic:
Weighted-average common shares outstanding, basic (in shares)	14,845			14,506			14,642	14,477
Dilutive effect of restricted stock	364						179
Dilutive effect of stock options	1,396						774
Dilutive effect of warrants	550						367
Diluted:
Weighted-average common shares outstanding, diluted (in shares)	17,154			14,506			15,961	14,477
Net income (loss) per share:
Basic (in dollars per share)	$ 1.20			$ (0.22)			$ 1.53	$ (0.17)
Diluted (in dollars per share)	$ 1.04			$ (0.22)			$ 1.41	$ (0.17)

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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	205	3,089	912	3,020
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	126	2,135	783	1,961
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		550		729
Restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	79	404	129	330

Segment Information - Schedule

Segment Information - Schedule of Total Net Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 112,494	$ 46,723	$ 227,181	$ 132,899
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	84,597	33,295	166,779	97,019
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	11,498	4,965	24,506	13,111
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	12,219	6,489	26,800	18,065
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 4,180	$ 1,974	$ 9,096	$ 4,704

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)	Aug. 10, 2020Motion	Jul. 01, 2020EUR (€)Company	May 22, 2020Claim	May 05, 2020Distributor	Aug. 05, 2013
Operating Leased Assets [Line Items]
Number of shareholder claims | Claim				8
Number of motions | Motion		2
Number of distributors | Distributor					2
Number of companies | Company			2
Accounts receivable, outstanding | €			€ 130,000
Operating lease, expense	$ 1
Operating lease, payments	$ 0.5
Minimum
Operating Leased Assets [Line Items]
Operating lease remaining lease term	1 year
Maximum
Operating Leased Assets [Line Items]
Operating lease remaining lease term	9 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation | VTB Holdings, Inc
Operating Leased Assets [Line Items]
Ownership percentage						80.00%
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		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 813	$ 752	$ 743	$ 668
Warranty costs accrued	464	162	1,022	663
Settlements of warranty claims	(316)	(169)	(804)	(586)
Warranty, end of period	$ 961	$ 745	$ 961	$ 745

Commitments and Contingencies_3

Commitments and Contingencies - Components of the Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands	Sep. 30, 2020USD ($)
Lessee, Lease, Description [Line Items]
Right-of-use assets	$ 5,297
Lease liability obligations, current	684
Lease liability obligations, noncurrent	4,764
Total lease liability obligations	$ 5,448
Weighted-average remaining lease term (in years)	6 years 6 months
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	Sep. 30, 2020USD ($)
Commitments And Contingencies Disclosure [Abstract]
2020	$ 164
2021	981
2022	671
2023	556
2024	564
Thereafter	3,506
Total minimum payments	6,442
Less: Imputed interest	(994)
Total	$ 5,448