Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2014	Feb. 28, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	Turtle Beach Corporation
Entity Central Index Key	0001493761
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		42,027,991
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 387,212,549

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 7,908	$ 6,509
Accounts receivable, less allowances for $9,806 and $8,980 in 2014 and 2013, respectively	61,059	48,542
Inventories, net	38,400	49,643
Deferred income taxes	4,930	2,214
Prepaid income taxes	1,482	2,925
Prepaid expenses and other current assets	3,818	3,561
Total Current Assets	117,597	113,394
Property and equipment, net	6,722	7,369
Goodwill	80,974	0
Intangible assets, net	39,726	3,972
Deferred income taxes	1,128	827
Other assets	821	1,745
Total Assets	246,968	127,307
Current Liabilities:
Revolving credit facilities	36,863	39,736
Term loan	1,923	14,500
Accounts payable	35,546	44,136
Due to shareholders	0	3,125
Other current liabilities	14,525	9,712
Total Current Liabilities	88,857	111,209
Term loan, long-term portion	5,769	0
Series B redeemable preferred stock	14,916	13,713
Deferred income taxes	648	850
Subordinated notes - related party	0	10,342
Other liabilities	5,592	1,986
Total Liabilities	115,782	138,100
Series A convertible preferred stock, $0.01 par value - 50,000,000 shares authorized; 48,689,555 shares issued and outstanding as of December 31, 2013	0	24,345
Stockholders' Equity (Deficit)
Common stock, $0.001 par value - 50,000,000 shares authorized; 42,027,991 and 12,700,460 shares issued and outstanding as of December 31, 2014 and 2013, respectively	42	13
Additional paid-in capital	128,084	(54,031)
Retained earnings	3,289	18,775
Accumulated other comprehensive income (loss)	(229)	105
Total Stockholders' Equity (Deficit)	131,186	(35,138)
Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit)	$ 246,968	$ 127,307

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity (Deficit)
Preferred stock par value (in dollars per share)	$ 0	$ 0.01
Preferred stock shares authorized	0	50,000,000
Preferred stock shares issued	0	48,689,555
Preferred stock shares outstanding	0	48,689,555
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	50,000,000	50,000,000
Common stock shares issued	42,027,991	12,700,460
Common stock shares outstanding	42,027,991
Current Assets:
Allowances and discounts	$ 9,806	$ 8,980

Consolidated Statements of Operations (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Statement [Abstract]
Net Revenue	$ 186,176	$ 178,470	$ 207,136
Cost of Revenue	135,509	128,141	132,795
Gross Profit	50,667	50,329	74,341
Operating expenses:
Selling and marketing	33,442	31,645	22,837
Research and development	9,400	4,873	2,099
General and administrative	17,159	8,349	6,153
Business transaction costs	3,744	3,864	342
Restructuring charges	747	0	0
Total operating expenses	64,492	48,731	31,431
Operating income (loss)	(13,825)	1,598	42,910
Interest expense	7,209	6,626	4,738
Other non-operating expense, net	724	45	7
Gain on bargain purchase from acquisition	0	0	(2,303)
Earnings (Loss) before income tax expense (benefit)	(21,758)	(5,073)	40,468
Income tax expense (benefit)	(6,272)	1,090	14,008
Net income (loss)	(15,486)	(6,163)	26,460
Net income (loss) attributable to common stockholders	$ (15,486)	$ (6,163)	$ 1,611
Net earnings (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ (0.39)	$ (0.49)	$ 0.13
Diluted (in dollars per share)	$ (0.39)	$ (0.49)	$ 0.13
Weighted average number of shares:
Basic (in shares)	39,665	12,700	12,700
Diluted (in shares)	39,665	12,700	12,700

Consolidated Statements of Comprehensive Income (Loss) Statement (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (15,486)	$ (6,163)	$ 26,460
Foreign currency translation adjustment	(334)	184	(79)
Other comprehensive income (loss)	(334)	184	(79)
Comprehensive income (loss)	$ (15,820)	$ (5,979)	$ 26,381

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ (15,486)	$ (6,163)	$ 26,460
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:
Depreciation and amortization	5,800	4,422	1,858
Amortization of intangible assets	1,066	923	748
Amortization of deferred financing costs	2,621	1,556	835
Stock-based compensation	5,194	2,563	985
Accrued interest on Series B redeemable preferred stock	1,203	1,010	1,032
Paid in kind interest	1,138	342	0
Gain on bargain purchase from acquisition	0	0	(2,303)
Deferred income taxes	(9,998)	3,353	(1,598)
Provision for (Reversal of) sales returns reserve	(2,111)	(1,482)	1,596
Provision for (Reversal of) doubtful accounts	37	(235)	358
Provision for obsolete inventory	532	93	588
Loss on disposal of property and equipment	9	108	47
Changes in operating assets and liabilities:
Accounts receivable	(10,396)	18,761	(23,461)
Inventories	11,363	(9,030)	(857)
Accounts payable	(10,552)	19,946	4,123
Due to shareholders	(3,125)	(3,125)	(3,125)
Prepaid expenses and other assets	(212)	(1,778)	(1,203)
Income taxes payable	4,704	(9,780)	(534)
Other liabilities	3,379	(3,194)	1,428
Net cash provided by (used for) operating activities	(14,834)	18,290	6,977
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(3,536)	(6,167)	(5,945)
Cash acquired (cash paid) in business combinations	4,093	0	(5,335)
Net cash provided by (used for) investing activities	557	(6,167)	(11,280)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	157,982	51,250	48,000
Repayment of revolving credit facilities	(160,855)	(44,514)	(27,000)
Repayment of capital leases	(34)	0	0
Borrowings on term loan	7,692	0	45,000
Repayment of term loan	(14,500)	(26,750)	(28,950)
Repayment of subordinated notes	(18,481)	0	0
Proceeds from sale of common stock, net of issuance costs	37,230	0	0
Proceeds from exercise of stock options	1,618	0	0
Debt financing costs	(1,683)	(1,003)	(2,391)
Proceeds from issuance of subordinated notes	7,000	10,000	0
Dividends paid on common and preferred stock	0	0	(41,000)
Net cash provided by (used for) financing activities	15,969	(11,017)	(6,341)
Effect of exchange rate changes on cash and cash equivalents	(293)	184	(79)
Net increase (decrease) in cash and cash equivalents	1,399	1,290	(10,723)
Cash and cash equivalents, beginning of period	6,509	5,219	15,942
Cash and cash equivalents, end of period	7,908	6,509	5,219
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	3,209	3,694	4,716
Cash paid for income taxes	554	8,224	16,749
Accrual for purchases of property and equipment	1,420	1,104	457
Value of shares issued to acquire HyperSound business	113,782	0	0
Conversion of Series A Preferred Stock	24,345	0	0
Settlement of accounts receivable related to acquisition	$ 0	$ 0	$ 8,920

Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) Statement (USD $) In Thousands, except Share data, unless otherwise specified	Total	Series A Convertible Preferred Stock	Common stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income
Beginning balance at Dec. 31, 2011	$ (20,065)	$ 24,345	$ 13	$ (57,579)	$ 37,501	$ 0
Beginning balance, shares at Dec. 31, 2011		48,690,000	12,700,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	26,460				26,460
Other comprehensive income (loss)	(79)					(79)
Stock-based compensation	985			985
Cash dividends ($0.46 per share)	(39,023)				(39,023)
Ending balance at Dec. 31, 2012	(31,722)	24,345	13	(56,594)	24,938	(79)
Ending balance, shares at Dec. 31, 2012		48,690,000	12,700,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(6,163)				(6,163)
Other comprehensive income (loss)	184					184
Stock-based compensation	2,563			2,563
Ending balance at Dec. 31, 2013	(35,138)	24,345	13	(54,031)	18,775	105
Beginning balance, shares at Dec. 31, 2013		48,690,000	12,700,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(15,486)				(15,486)
Other comprehensive income (loss)	(334)					(334)
Stock-based compensation	5,194			5,194
Adjustment for reverse merger, shares			7,275,000
Adjustment for reverse merger	113,782		7	113,775
Conversion of stock, shares		(48,690,000)	17,527,000
Conversion of stock	24,345	(24,345)	18	24,327
Cashless exercise of warrants, shares			24,000
Sale of common stock, net of issuance costs, shares			4,000,000
Sale of common stock, net of issuance costs	37,230		4	37,226
Stock options exercised and related tax activity, shares	502,087		502,000
Stock options exercised and related tax activity	1,593			1,593
Ending balance at Dec. 31, 2014	$ 131,186	$ 0	$ 42	$ 128,084	$ 3,289	$ (229)
Ending balance, shares at Dec. 31, 2014		0	42,028,000

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Organization

Turtle Beach Corporation (“Turtle Beach” or the “Company”) is a premier audio innovation company with expertise and experience in developing, commercializing and marketing audio technologies across a range of large addressable markets under the Turtle Beach® and HyperSound® brands. Turtle Beach is a worldwide leading provider of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers, Macintosh computers, tablets and mobile devices. HyperSound is a novel patent-protected sound delivery technology that delivers immersive, directional audio offering unique benefits in a variety of commercial and consumer audio devices, including improved clarity and comprehension for hard of hearing listeners.

Turtle Beach (f/k/a Parametric Sound Corporation “Parametric”) is headquartered in San Diego, California and was incorporated in the state of Nevada in 2010.

VTB Holdings, Inc. (“VTBH”), the parent holding company of the historical business of Voyetra Turtle Beach, Inc. (“VTB”), was incorporated in the state of Delaware in 2010 and is headquartered in Valhalla, New York. Voyetra Turtle Beach, Inc. was incorporated in the state of Delaware in 1975.

In October 2012, VTB acquired Lygo International Limited (“Lygo”), a private limited company organized under the laws of England and Wales, which was subsequently renamed Turtle Beach Europe Limited (“TB Europe”).

Merger with Parametric Sound

On January 15, 2014 (the “Closing Date”), VTB Holdings, Inc., which operated the Turtle Beach business, and Parametric, which operated the HyperSound business, completed the merger (the “Merger”) of Paris Acquisition Corporation (“Merger Sub”) with and into VTBH in accordance with the terms and conditions of the Agreement and Plan of Merger dated August 5, 2013, by and among Parametric, Merger Sub and VTBH (the “Merger Agreement”). As a result of the Merger, VTBH, the accounting acquirer and surviving entity, became a wholly-owned subsidiary of Parametric, a publicly-traded company.

In connection with the Merger, Parametric issued to the former holders of VTBH common stock and Series A Preferred Stock an aggregate of 30,227,100 shares of Parametric Common Stock, par value $0.001 per share (“Parametric Common Stock”). The number of shares of Parametric Common Stock issued was computed in accordance with a formula specified in the Merger Agreement using an exchange ratio of 0.35997 shares of Parametric Common Stock for every one share of VTBH common stock or Series A Preferred Stock. Accordingly, all historical equity accounts and shares have been retroactively adjusted to reflect this exchange ratio. In addition, in accordance with the terms of the Merger Agreement, all outstanding options to purchase shares of VTBH common stock were converted into options to purchase shares of Parametric Common Stock and were assumed by Parametric. These newly issued shares of Parametric Common Stock, together with the converted options, represented approximately 80% of the total issued and outstanding shares of Parametric Common Stock, on a fully-diluted basis, as of the closing date of the Merger.

As a result of the 0.35997 exchange ratio pursuant to the Merger, the 35,282,286 shares of VTBH Common Stock presented on its previously filed balance sheet as of December 31, 2013, are presented herein as 12,700,460 shares. On January 15, 2014, upon the close of the Merger, VTBH's Series A Preferred Stock was converted into 17,526,640 shares of Parametric Common Stock, which when added to the outstanding 12,700,460 shares of VTBH common stock then outstanding, comprised the 30,227,100 shares of Parametric Common Stock issued to the former holders discussed above. These shares were combined with 7,274,622 shares of outstanding Parametric Common Stock, to arrive at a total of 37,501,722 shares issued and outstanding as of the closing date of the Merger.

For accounting purposes, the Merger was treated as a “reverse acquisition” and VTBH was considered the accounting acquirer. Accordingly, VTBH’s historical results of operations replace Parametric’s historical results of operations for all periods prior to the Merger, and for all periods following the Merger, the results of operations of both companies will be included.

On May 20, 2014, Parametric filed a Certificate of Amendment to its Articles of Incorporation to change the company's name from “Parametric Sound Corporation” to “Turtle Beach Corporation” effective May 28, 2014.

Basis of Presentation

The accompanying 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.

Since VTBH was considered the accounting acquirer, the December 31, 2013 balance sheet and the comparative information for the years ended December 31, 2013 and December 31, 2012 contain the results of VTBH only. The results of operations as of, and for the year ended December 31, 2014 contain the results of the Turtle Beach business and HyperSound business from the January 15, 2014 acquisition date forward.

Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2014 presentation.

Uses of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting period. The significant estimates and assumptions used by management affect: sales return reserve, allowances for cash discounts, warranty reserve, valuation of inventory, valuation of long-lived assets, goodwill and other intangible assets, depreciation and amortization of long-lived assets, valuation of deferred tax assets, determination of fair value of stock-based awards and share based compensation. The Company evaluates estimates and assumptions on an ongoing basis using historical experience and other factors and adjusts those estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ from these estimates, and those differences could be material to the consolidated financial statements.

Revenue Recognition and Sales Return Reserve

Net revenue consists primarily of revenue from the sale of gaming headsets and accessories to wholesalers, retailers and to a lesser extent, on-line customers. Revenue from products is recognized when the product has been delivered to a customer, the sales price is fixed and determinable, and collection is reasonably assured. Product is considered delivered to the customer upon passage of title and risk of loss to the customer. Change in title to the product and recognition of revenue occurs upon delivery to the customer when sales terms are free on board (“FOB”) destination and at the time of shipment when the sales terms are FOB shipping point and there is no right of return. Net revenue for on-line purchases is recognized when products are shipped from the Company’s distribution facilities. The Company excludes sales taxes collected from customers from “Net Revenue” in its Consolidated Statements of Operations.

Provisions for cash discounts, quantity rebates, and sales returns are recognized in the period the sale is recorded, based upon our prior experience and current trends, as a reduction of revenue. These revenue reductions are established by the Company based upon management’s best estimates at the time of sale following the historical trend, adjusted to reflect known changes in the factors that impact such reserves and allowances, and the terms of agreements with customers.

Cost of Revenue and Operating Expenses

The following table illustrates the primary costs classified in each major expense category:



Cost of Revenue		Operating Expenses
Cost to manufacture products;		Payroll, bonus and benefit costs;
Freight costs associated with moving product from suppliers to distribution center and to customers;		Costs incurred in the research and development of new products and enhancements to existing products;
Costs associated with the movement of merchandise through customs;		Depreciation related to demonstration units;
Costs associated with material handling and warehousing;		Legal, finance, information systems and other corporate overhead costs;
Product royalty costs.		Advertising and marketing costs.

Product Warranty Obligations

The Company provides for product warranties in accordance with the contract terms given to various customers by accruing estimated warranty costs at the time of revenue recognition. Warranties are generally fulfilled by replacing defective products with new products.

Marketing Costs

Costs associated with the production of advertising, such as print and other costs, as well as costs associated with communicating advertising that has been produced, such as magazine ads, are expensed when the advertising first appears in public. Advertising costs were approximately $4.8 million, $7.7 million and $8.2 million for the years ended December 31, 2014, 2013 and 2012.

The Company also incurs co-operative advertising costs that represent reimbursements to customers for shared marketing expenses for sale of its products. These reimbursements are recorded as reductions of net revenue based on a percentage of sales for all period presented. Co-operative advertising reimbursements were approximately $6.4 million, $4.3 million and $3.8 million for the years ended December 31, 2014, 2013 and 2012.

Deferred Financing Costs

Deferred financing costs represent costs incurred in conjunction with our debt financing activities and are capitalized and amortized over the life of the related financing arrangements. If the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired and are recorded in the statement of operations under the caption “Interest expense.”

Stock-Based Compensation

Compensation costs related to stock options and restricted stock grants are calculated based on the fair value of the stock-based

awards on the date of grant, net of estimated forfeitures. The grant date fair value of awards is determined using the Black-Scholes option-pricing model and the related stock-based compensation is recognized on a straight-line basis, over the period in which an employee is required to provide service in exchange for the award, which is generally four years.

The Company estimates its forfeiture rate based on an analysis of actual forfeitures and will continue to evaluate the adequacy of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover behavior, and other factors. The impact from any forfeiture rate adjustment would be recognized in the period of adjustment and if the actual number of future forfeitures differs from estimates, the Company might be required to record adjustments to stock-based compensation expense.

For stock-based awards issued to non-employees, including consultants, compensation expense is based on the fair value of the

awards calculated using the Black-Scholes option-pricing model over the service performance period. The fair value of options

granted to non-employees for each reporting period is re-measured over the vesting period and recognized as an expense over the period the services are received.

Exit and Disposal Costs

Management-approved restructuring activities are periodically initiated to achieve cost savings through reduced operational redundancies and to position the Company strategically in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as lease termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change.

Net Earnings (Loss) per Common Share

Basic earnings (loss) per share is calculated by dividing net income (loss) associated with common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share assumes the issuance of additional shares of common stock by the Company upon exercise of all outstanding stock options and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method.

Current period and historical weighted-average shares amounts reflect the application of a 0.35997 conversion ratio to historical VTBH share and weighted-average share amounts.

Cash Equivalents

Cash and short-term highly liquid investments with original maturity dates of three months or less at time of purchase and no redemption restrictions are considered cash and cash equivalents. Cash and cash equivalents consist of cash on hand and money market accounts.

Inventories, net

Inventories consist primarily of finished goods and related component parts, and are stated at the lower of weighted average cost or market value (estimated net realizable value). The Company maintains an inventory allowance for returned goods, slow-moving and unused inventories based on the historical trend and estimates. Inventory write-downs, once established, are not reversed as they establish a new cost basis for the inventory. Inventory write-downs are included as a component of cost of revenues in the accompanying consolidated statements of operations.

Property and Equipment, net

Property and equipment are presented at cost less accumulated depreciation and amortization. Repairs and maintenance expenditures are expensed as incurred. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:



		Estimated Life
Machinery and equipment		3 years
Software and software development		2-3 years
Furniture and fixtures		5 years
Tooling		2 years
Leasehold improvements		5 years or term of lease, if shorter
Demonstration units and convention booths		2 years

Valuation of Long-Lived and Intangible Assets and Goodwill

At acquisition, we estimate and record the fair value of purchased intangible assets, which primarily consists of in-process research and development, customer relationships, trademarks and trade names, and patents. The fair values of these intangible assets are estimated based on our assessment. Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. Goodwill and certain other intangible assets having indefinite lives are not amortized to earnings, but instead are subject to periodic testing for impairment. Intangible assets determined to have definite lives are amortized over their remaining useful lives.

Long-lived and intangible assets and goodwill are assessed for the potential impairment of intangible and fixed assets whenever events or changes in circumstances indicate that full recoverability of net asset balances through future cash flows is in question. Goodwill and indefinite-lived intangible assets are assessed at least annually, but also whenever events or changes in circumstances indicate the carrying values may not be recoverable. Factors that could trigger an impairment review, include (a) significant underperformance relative to historical or projected future operating results; (b) significant changes in the manner of or use of the acquired assets or the strategy for our overall business; (c) significant negative industry or economic trends; (d) significant decline in our stock price for a sustained period; and a decline in our market capitalization below net book value.

Assessment for possible impairment is based on the Company’s ability to recover the carrying value of the long-lived asset from the expected future pre-tax cash flows. The expected future pre-tax cash flows are estimated based on historical experience, knowledge and market data. Estimates of future cash flows require the Company to make assumptions and to apply judgment, including forecasting future sales and expenses and estimating the useful lives of assets. If the expected future cash flows related to the long-lived assets are less than the assets’ carrying value, an impairment charge is recognized for the difference between estimated fair value and carrying value.

When performing our evaluation of goodwill for impairment, if we conclude qualitatively that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount, then the two-step impairment test is not required. If we are unable to reach this conclusion, then we would perform the two-step impairment test. Initially, the fair value of the reporting unit is compared to its carrying amount. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit; we are required to perform a second step, as this is an indication that the reporting unit goodwill may be impaired. In this step, we compare the implied fair value of the reporting unit goodwill with the carrying amount of the reporting unit goodwill and recognize a charge for impairment to the extent the carrying value exceeds the implied fair value. The implied fair value of goodwill is determined by allocating the fair value of the reporting unit to all of the assets (recognized and unrecognized) and liabilities of the reporting unit in a manner similar to a purchase price allocation. The residual fair value after this allocation is the implied fair value of the reporting unit goodwill. In addition, identifiable intangible assets, except for the IPR&D asset, having indefinite lives are reviewed for impairment on an annual basis using a methodology consistent with that used to evaluate goodwill.

There are inherent assumptions and estimates used in developing future cash flows requiring management judgment in applying these assumptions and estimates to the analysis of identifiable intangible assets and long‑lived asset impairment including projecting revenues, interest rates and the cost of capital. Many of the factors used in assessing fair value are outside our control and it is reasonably likely that assumptions and estimates will change in future periods. These changes can result in future impairments. In the event our planning assumptions were modified resulting in impairment to our assets, the associated expense would be included in the Consolidated Statements of Operations, which could materially impact our business, financial condition and results of operations.

In connection with the Merger, the Company performed a valuation of the acquired goodwill and intangible assets and recorded $81.0 million of goodwill based on the fair values of the assets acquired and liabilities assumed. The Company conducted its annual impairment assessment on November 1, 2014 taking a qualitative evaluation approach to determine if there were any adverse market factors or changes in circumstances that would indicate that the carrying value of goodwill as determined in connection with the current year Merger may not be recoverable. Management noted that the markets have not limited access to capital that could potentially alter our investment in and/or development of the HyperSound technology; that the Company has received clearance from the U.S. Food and Drug Administration to market the HyperSound Audio System to improve the clarity and comprehension of sounds from various sources for listeners with hearing loss; and that the Company completed supply chain improvements and product development efforts that have reduced projected cost structures as well as established the framework to generate revenue starting in 2015 with the anticipated hearing health care product launch. However, due to a significant decline in the Company's stock price subsequent to our evaluation, management further conducted a qualitative assessment and concluded that the market capitalization of $242.9 million resulted in an implied control premium of 7% and that goodwill was not impaired. Accordingly, management determined that no events or changes in circumstances indicated that the carrying value may not be recoverable and further consideration of potential goodwill impairment was not considered necessary.

In addition, in-process research and development acquired in connection with the Merger is considered an indefinite-lived intangible asset until the completion or abandonment of the associated efforts. Accordingly, during the development period, the IPR&D is not amortized but rather subject to impairment review, and based on the above qualitative factors, no impairment indicators were noted.

Management's forecasts of planned revenue are largely dependent on the final development and launch of the HyperSound hearing healthcare product to generate the projected revenue in subsequent years. If the performance of our HyperSound products in the hearing healthcare market does not meet expectations based on recent market data, a future impairment charge could result for a portion or all of the goodwill noted previously as the change in fair value would occur outside the purchase price allocation period. The amount of any impairment is dependent on the performance of the business which is dependent upon a number of variables which cannot be predicted with certainty.

Income Taxes

The Company accounts for income taxes in accordance with the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized based on the differences between the financial statement carrying value of existing assets and liabilities and their respective tax bases. The Company had elected to record a “deferred charge” for basis differences relating to intra-entity profits as recognition as a deferred tax asset is prohibited.

A valuation allowance is established for deferred tax assets when management anticipates that it is more likely than not that all, or a portion of these assets would not be realized. In determining whether a valuation allowance is warranted, all positive and negative evidence and all sources of taxable income such as prior earnings history, expected future earnings, carryback and carryforward periods and tax strategies are considered to estimate if sufficient future taxable income will be generated to realize the deferred tax asset. The assessment of the adequacy of a valuation allowance is based on estimates of taxable income by jurisdiction and the period over which deferred tax assets will be recoverable. In the event that actual results differ from these estimates, or these estimates are adjusted in future periods for current trends or expected changes in assumptions, the Company may need to modify the level of valuation allowance which could materially impact our business, financial condition and results of operations.

The tax effects of uncertain tax positions taken or expected to be taken in income tax returns are recognized only if they are “more likely-than-not” to be sustained on examination by the taxing authorities, based on the technical merits as of the reporting date. The tax benefits recognized in the financial statements from such positions are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The Company recognizes estimated accrued interest and penalties related to uncertain tax positions in income tax expense.

The Company and its domestic subsidiaries file a consolidated federal income tax return, while the Company’s foreign subsidiary files in its respective local jurisdictions.

Fair Value of Financial Instruments

The Company determines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company uses a hierarchical structure to prioritize the inputs used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), then to quoted market prices for similar assets or liabilities in active or inactive markets (Level 2) and gives the lowest priority to unobservable inputs (Level 3).

Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, derivative instruments, revolving line of credit and long-term debt. Cash equivalents are stated at amortized cost, which approximated 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 revolving line of credit and long-term debt are stated at the carrying value as the stated interest rate approximates market rates currently available to the Company, which are considered Level 2 inputs.

The Company did not have any non-financial assets or non-financial liabilities recognized at fair value on a recurring basis at December 31, 2014 and 2013.

Foreign Currency Translation

Balance Sheet accounts of the Company’s Europe subsidiary operations are translated at the exchange rate in effect at the end of each period. Statement of Operations accounts are translated using the weighted average of the prevailing exchange rates during each period. Gains or losses resulting from foreign currency transactions are included in the Company’s Consolidated Statements of Operations under the caption “Other non-operating expense, net” whereas, translation adjustments are reflected in the Consolidated Statements of Comprehensive Income (Loss) under the caption “Foreign currency translation adjustment.”

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of investments in cash, cash equivalents and accounts receivables. The Company is exposed to credit risks and liquidity in the event of default by the financial institutions or issuers of investments in excess of FDIC insured limits. The Company performs periodic evaluations of the relative credit standing of these financial institutions and limits the amount of credit exposure with any institution.

Accounts receivable are unsecured and represent amounts due based on contractual obligations of customers. Our three largest individual customers accounted for approximately 45% of our gross sales in the aggregate for the year ended December 31, 2014, or individually 15%, 15% and 15%, compared to 16%, 15% and 14% in 2013 and 18%, 16% and 12% in 2012. In addition, two customers accounted for 26% and 23%, respectively, of accounts receivable as of December 31, 2014 and 24% and 20%, respectively, for December 31, 2013.

Concentrations of credit risk with respect to accounts receivable are mitigated due to the large number of customers, and by . performing ongoing credit evaluations of customers to assess the probability of collection based on a number of factors, including past transaction experience with the customer, evaluation of their credit history, limiting the credit extended, and review of the invoicing terms of the contract. In addition the Company has credit insurance in place through a third party insurer against defaults by certain domestic and international customers, subject to policy limits. The Company generally does not require customers to provide collateral to support accounts receivable. The Company has recorded an allowance for doubtful accounts for those receivables that were determined not to be collectible.

Foreign cash balances at December 31, 2014 and 2013 were $2.5 million and $1.4 million, respectively.

Segment Information

The Company has determined it has two operating segments - Voyetra Turtle Beach and HyperSound. The Company’s operating segments are similar in nature of product, as both operate in the audio technologies market offering a variety of commercial and consumer audio devices. The entire business is managed by a single management team whose Chief Operating Decision Maker is the the Chief Executive Officer. Accordingly, the Company has aggregated its operating segments based on the aggregation criteria, which states that two or more operating segments may be aggregated into a single reportable segment if the segments have similar economic characteristics, products, production processes, regulatory environments, clients and methods of distribution.

Recent Accounting Pronouncements

In August 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, which defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires entities to recognize revenue in a way that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The new guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The amendment is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. The Company is currently evaluating the impact, if any, this new standard will have on our consolidated financial statements and has not yet determined the method of adoption.

In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and “represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results.” The new standard applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The amendment is effective for annual reporting periods beginning after December 15, 2014 and interim periods within those annual periods. The adoption of this guidance is not expected to have a significant impact on the Company's consolidated financial statements.

- Definition

The entire disclosure for the organization, consolidation and basis of presentation of financial statements disclosure, and significant accounting policies of the reporting entity. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements.

+ References+ Details

Business Combinations

12 Months Ended

Dec. 31, 2014

Business Combinations [Abstract]

Business Combinations

Merger with Parametric Sound

On January 15, 2014, VTBH completed the Merger with and into a wholly-owned subsidiary of Turtle Beach (f/k/a Parametric), a publicly-traded audio technology company focused on developing new directed audio products for commercial, consumer and health care markets, in an all-stock, tax-free reorganization pursuant to the Merger Agreement. VTBH entered into the Merger to acquire and commercialize Parametric’s technology and gain access to capital market opportunities as a public company. The results of Parametric’ operations, including $0.7 million of revenue and $13.5 million of pre-tax loss, have been included in the consolidated statements of operations from the date of acquisition.

Business Transaction Costs

Business transaction costs as a result of the merger of $3.7 million and $3.9 million were recognized for the years ended December 31, 2014 and December 31, 2013, respectively. The components of business transaction costs are presented below.



	Year Ended
	December 31,
	2014		2013
	(in thousands)
Legal fees	$	786	$	1,452
Accounting fees	84		2,254
Advisory fees	2,219		—
Termination and severance	450		—
Other	205		158
Total Transaction Costs	$	3,744	$	3,864

Advisory fees include success based fees payable to investment bankers for both merger parties.

Purchase Consideration and Net Assets Acquired

The fair value of Parametric Common Stock used in determining the purchase price was $14.30 per share, the closing market price on January 15, 2014. The fair value of outstanding stock options included in the purchase consideration was determined by calculating the cumulative vesting attributable to Parametric employees for periods prior to the Merger, using the Black-Scholes option pricing model. Assumptions used in Black-Scholes calculations during such periods included: volatility ranging from 87% to 90%; risk-free interest rates ranging between 0.47% and 0.92%; forfeiture rates ranging from 1.1% to 4.1%; and expected lives ranging from 3.28 to 4.61 years.

The purchase price is as follows:



	(in thousands)
Fair Value of Parametric shares outstanding	$	104,027
Fair Value of Parametric stock options	9,755
Purchase Price	$	113,782

The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed:



	(in thousands)
Cash and cash equivalents	$	4,093
Accounts receivable	47
Deferred tax asset	6,696
Other current assets	710
Property and equipment	206
Intangible assets:
In-process research and development (IPR&D)	27,100
Developed technology	8,880
Customer relationships	270
Trade name	170
Goodwill	80,974
Accounts payable and accrued liabilities	(1,769		)
Capital lease obligation	(120		)
Deferred tax liabilities	(13,475		)
Total Net Assets Acquired	$	113,782

The amount allocated to in-process research and development represents an estimate of the fair value of purchased in-process technology for research projects (“IPR&D”), primarily related to directed audio solutions that beam sound to a specific listening area without the ambient noise of traditional speakers. IPR&D is considered an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Accordingly, during the development period, the IPR&D is not amortized but rather subject to impairment review. No amortization of the IPR&D has been reflected in the combined consolidated financial statements as the assets are considered indefinite-lived.

The acquired intangible assets relating to developed technology, customer relationships and trade name are subject to amortization. Developed technology is being amortized over an estimated useful life of approximately seven years with the amortization being included within cost of revenue. Customer relationships and trade name are being amortized over an estimated useful life of two years and five years with the amortization being included within sales and marketing expense.

The excess purchase consideration over the fair values of assets acquired and liabilities assumed is recorded as goodwill. Goodwill is not amortized but tested for impairment on an annual basis or when the indicator for impairment exists.

The goodwill recorded is not tax deductible since the transaction was structured as a tax-free exchange.

Amounts allocated to deferred tax assets of $6.7 million and deferred tax liabilities of $13.5 million relate to acquired net operating loss carryforwards and indefinite lived intangible assets, respectively.

Pro Forma Financial Information (Unaudited)

The following table summarizes certain supplemental pro forma financial information which was prepared as if the Merger had occurred as of January 1, 2013. The unaudited pro forma financial information was prepared for comparative purposes only and is not necessarily indicative of what would have occurred had the acquisition been made at that time or of results which may occur in the future.



	Year Ended						Year Ended
	December 31, 2014						December 31, 2013
	Reported			Proforma			Reported			Proforma
	(in thousands)
Net Revenue	$	186,176		$	186,176		$	178,470		$	178,992
Net Loss	$	(15,486	)	$	(17,576	)	$	(6,163	)	$	(15,536	)

Pro forma results for the year ended December 31, 2014 include $1.2 million in pre-merger business transaction costs in addition to the $3.7 million in merger-related business transaction costs recorded in the Consolidated Financial Statements.

Pro forma results for the year ended December 31, 2013 include $2.3 million in pre-merger business transaction costs in addition to the $3.9 million in merger-related business transaction costs recorded in the Consolidated Financial Statements.

Acquisition of Lygo

In October 2012, VTB acquired all of the common stock of Lygo International Limited (“Lygo”) for a purchase price of $14.4 million, which included $5.5 million in cash and the effective settlement of $8.9 million of accounts receivable from Lygo, in order to increase its market share by leveraging certain distribution channels to reach new customers and expand to new international markets. Lygo had historically been VTB’s sole distributor in Europe. Subsequent to the acquisition the Lygo business formally changed its name to Turtle Beach Europe (“TB Europe”), and the results of operations are included prospectively from October 1, 2012.

The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed:



	(in thousands)
Cash	$	133
Accounts receivable	4,046
Inventory	9,957
Other current assets	321
Property and equipment	12
Intangible assets:
Customer relationships	5,526
Non-compete agreement	177
Accounts payable and accrued liabilities	(223		)
Other liabilities	(1,889		)
Derivative liability	(1,369		)
Total Net Assets Acquired	16,691
Purchase Price	(14,388		)
Gain on Bargain Purchase	$	2,303

The excess of the net assets acquired over consideration transferred was $2.3 million, which is recorded as a gain on bargain purchase from acquisition. As a result of the bargain purchase, the Company reassessed the recognition and measurement of identifiable assets acquired and liabilities assumed and concluded that the valuation procedures and resulting measures were appropriate. The bargain purchase gain was primarily driven from the exclusive nature of the arrangement between the two companies prior to the acquisition whereby Lygo did not generate significant revenue from other vendors’ products. As a result, the value of the customer relationships, the primary intangible asset acquired, was attributed to the difference between the cash flows associated with owning the asset versus building the asset.

For tax purposes, the acquired intangible assets are not amortized. Accordingly, a deferred tax liability was recorded on the acquisition date for the difference between the book and cost basis related to the acquired intangible assets.

In connection with the acquisition, the Company issued 398,010 phantom units under the 2011 Phantom Equity Appreciation Plan, which had an exercise price of $2.01 per share, to continuing employees of Lygo. The phantom units will vest upon the occurrence of a performance condition and upon the satisfaction of service conditions. These equity awards were not included in the Company’s determination of the total purchase consideration as these equity awards have post-acquisition performance and service conditions.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

Equity Offering	12 Months Ended
Equity Offering	Dec. 31, 2014
Equity Offering [Abstract]
Equity Offering	Equity Offering On April 24, 2014, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Needham & Company, LLC, as representative for the several other underwriters named therein, relating to an underwritten public offering (the “Offering”) of 4,000,000 shares of our common stock, at a price to the public of $10.00 per share (the “Offering Price”). Under the terms of the Underwriting Agreement, the Company also granted the underwriters a 30-day option to purchase up to an additional 600,000 shares of common stock at the Offering Price less the underwriting discount and estimated offering expenses payable by Turtle Beach. Total net proceeds received from the Offering totaled approximately $37.2 million after deducting the underwriting discount and offering expenses. The net proceeds from the Offering were used to repay certain indebtedness, including $10 million then outstanding under the revolving credit agreement as contemplated upon the occurrence of a public offering, and for working capital and other general corporate purposes. See Note 8, “Credit Facilities and Long-Term Debt” for further information.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Fair Value Measurement

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurement

Cash equivalents are stated at amortized cost, which approximated fair value as of the consolidated balance sheet dates, due to the short period of time to maturity. Cash, 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 revolving credit facilities and long-term debt and subordinated notes are stated at the carrying value, which also approximates fair value as the stated interest rate approximates market rates currently available to the Company. As of December 31, 2014 and 2013, the Company has not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted.

The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy:



	December 31, 2013
	Level I		Level II			Level III		Total
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	$	19	$	—		$	—	$	19
Total financial assets	$	19	$	—		$	—	$	19

Other current liabilities - derivative liabilities	$	—	$	(392	)	$	—	$	(392	)
Total financial liabilities	$	—	$	(392	)	$	—	$	(392	)

At December 31, 2014, there were no outstanding financial assets and liabilities recorded at fair value on a recurring basis.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References+ Details

Composition of Certain Financial Statement Items

12 Months Ended

Dec. 31, 2014

Condensed Consolidated Balance Sheet Components [Abstract]

Composition of Certain Financial Statement Items

Inventories, net

Inventories, net consist of the following:



	December 31, 2014		December 31, 2013
	(in thousands)
Raw materials	$	2,065	$	5,499
Finished goods	36,335		44,144
Total inventories, net	$	38,400	$	49,643

Property and Equipment, net

Property and equipment, net consists of the following:



	December 31, 2014			December 31, 2013
	(in thousands)
Machinery and equipment	$	599		$	249
Software and software development	847			581
Furniture and fixtures	226			144
Tooling	2,417			1,756
Leasehold improvements	104			59
Demonstration units and convention booths	13,702			10,014
Total property and equipment, gross	17,895			12,803
Less: accumulated depreciation and amortization	(11,173		)	(5,434		)
Total property and equipment, net	$	6,722		$	7,369

Depreciation and amortization expense on property and equipment, for the years ended December 31, 2014, 2013 and 2012 was $5.8 million, $4.4 million and $1.9 million, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill

Changes in the carrying values of goodwill for the year ended December 31, 2014 are as follows:



	(in thousands)
Balance as of January 1, 2014	$	—
Activity in 2014
Acquisition of HyperSound business	$	80,974
Balance as of December 31, 2014	$	80,974

Acquired Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2014 and December 31, 2013 consist of:



	December 31, 2014
	Gross Carrying Value		Accumulated Amortization		Net Book Value
	(in thousands)
Customer relationships	$	5,597	$	2,323	$	3,274
Non-compete agreements	171		171		—
In-process Research and Development	27,100		—		27,100
Developed technology	8,880		104		8,776
Trade names	170		33		137
Patent and trademarks	439		—		439
Total Intangible Assets	$	42,357	$	2,631	$	39,726


	December 31, 2013
	Gross Carrying Value		Accumulated Amortization		Net Book Value
	(in thousands)
Customer relationships	$	5,526	$	1,623	$	3,903
Non-compete agreements	177		108		69
Total	$	5,703	$	1,731	$	3,972

In October 2012, VTB acquired Lygo International Limited, subsequently renamed TB Europe. The acquired intangible assets relating to customer relationships and non-compete agreements are being amortized over an estimated useful life of thirteen years and two years, respectively, with the amortization being included within sales and marketing expense.

In January 2014, the merger between VTBH and Parametric was completed. The acquired intangible assets relating to developed technology, customer relationships and trade name are subject to amortization. Developed technology is being amortized over an estimated economic useful life of approximately seven years with the amortization being included within cost of revenue. Customer relationships and trade name are being amortized over an estimated useful life of two years and five years, respectively, with the amortization being included within sales and marketing expense. IPR&D is considered an indefinite-lived intangible asset until the completion or abandonment of the associated research and development efforts. Accordingly, during the development period, the IPR&D is not amortized but rather subject to impairment review. No impairment indicators were noted.

Amortization expense related to definite lived intangible assets of $1.1 million, $0.9 million and $0.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

As of December 31, 2014, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2015	$	2,603
2016	2,030
2017	1,866
2018	1,789
2019	1,697
Thereafter	2,202
Total	$	12,187

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details

Credit Facilities and Long-Term Debt

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Credit Facilities and Long-Term Debt



	December 31, 2014			December 31, 2013
	(in thousands)
Revolving credit facility, maturing March 2019	$	36,863		$	—
Revolving line of credit, repaid in March 2014	—			39,736
Term loans	7,692			14,500
Subordinated notes	—			10,342
Total outstanding debt	44,555			64,578
Less: current portion of revolving line of credit	(36,863		)	(39,736		)
Less: current portion of term loan	(1,923		)	(14,500		)
Total noncurrent portion of long-term debt	$	5,769		$	10,342

Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $6.0 million, $5.6 million and $3.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Amortization of deferred financing costs was $2.6 million, $1.6 million and $0.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. The amount for the year ended December 31, 2014 includes the write-off of $2.2 million in deferred financing costs associated with the repayment of the Company's former loan and security agreement (see below). Included for the years ended December 31, 2013 and 2012 were the write-offs of $0.4 million and $0.3 million, respectively, in deferred financing costs related to the partial extinguishment of term notes.

Revolving Credit Facility

On March 31, 2014, Turtle Beach and certain of its subsidiaries entered into a new asset-based revolving credit agreement (“Credit Facility”) with Bank of America, N.A., as Agent, Sole Lead Arranger and Sole Bookrunner, which replaced the then existing loan and security agreement (“the Credit Agreement” as described below). The Credit Facility, which expires on March 31, 2019, provides for a line of credit of up to $60 million inclusive of a sub-facility limit of $10 million for TB Europe, a wholly owned subsidiary of Turtle Beach. The Credit Facility may be used for working capital, the issuance of bank guarantees, letters of credit and other corporate purposes.

The actual credit availability for loans and letters of credit under Credit Facility is governed by a borrowing base determined by the application of specified percentages to certain eligible assets, primarily eligible trade accounts receivable and inventories, and is subject to discretionary reserves and revaluation adjustments.

Amounts outstanding under the Credit Facility bear interest at a rate equal to either a rate published by Bank of America or the LIBOR rate, plus in each case, an applicable margin, which is between 1.00% to 1.50% for U.S. base rate loans and between 2.00% to 2.50% for U.S. LIBOR loans and U.K. loans. As of December 31, 2014, interest rates for outstanding borrowings were 4.75% for base rate loans and 2.67% for LIBOR rate loans. In addition, Turtle Beach is required to pay a commitment fee on the unused revolving loan commitment at a rate ranging from 0.25% to 0.50%, and letter of credit fees and agent fees.

If certain availability thresholds are not met, meaning that the Company does not have receivables and inventory which are eligible to borrow on under the Credit Facility in excess of amounts borrowed, the Credit Facility requires the Company and its restricted subsidiaries to maintain a fixed charge coverage ratio. The fixed charge ratio is defined as the ratio, determined on a consolidated basis for the most recent four fiscal quarters, of (a) EBITDA minus capital expenditures, excluding those financed through other instruments, and cash taxes paid, and (b) Fixed Charges defined as the sum of cash interest expense plus scheduled principal payments.

The Credit Facility also contains affirmative and negative covenants that, subject to certain exceptions, limit our ability to take certain actions, including our ability to incur debt, pay dividends and repurchase stock, make certain investments and other payments, enter into certain mergers and consolidations, engage in sale leaseback transactions and transactions with affiliates and encumber and dispose of assets. Obligations under the Credit Facility are secured by a security interest and lien upon substantially all of the Company's assets.

As of December 31, 2014, excess borrowing availability was approximately $15.0 million.

In March 2015, Bank of America notified the Company that certain events of default had occurred and were continuing under the Credit Agreement, including (i) the Company’s failure to deliver in a timely matter certain monthly financial statements in accordance with the Credit Agreement, (ii) the Company’s failure to deliver in a timely matter certain financial projections in accordance with the Credit Agreement, (iii) the Company’s failure to repay an over-advance of approximately $100,000 that existed between March 6, 2015 and March 9, 2015, and (iv) the Company’s failure to satisfy the fixed charge coverage ratio under the Credit Agreement for certain measurement dates during the fourth quarter of 2014 (in part as a result of certain retroactive changes to the calculation of such ratio pursuant to the second amendment, dated December 29, 2014) (the “Existing Events of Default”).

Amendments

On December 29, 2014, the Company amended the Credit Facility to permit the repayment of $7.7 million of existing subordinated debt and accrued interest (see the “January Note” below) with the proceeds of an additional loan (the “Term Loan”). The Term Loan will result in modified financial covenants while it is outstanding, will bear interest at a rate of LIBOR for the applicable interest period plus 5% and will be repaid in equal monthly installments beginning on April 1, 2015 and ending on April 1, 2018.

On March 16, 2015, the Company entered into a third amendment (the “Third Amendment”) to the Credit Facility pursuant to which Bank of America and the lenders under the Credit Facility agreed to waive the Existing Events of Default. In addition, the Third Amendment amends certain other provisions of the agreement and requires that we maintain an EBITDA ratio at the end of each month beginning April 30, 2015 on a cumulative basis through the remainder of 2015 and thereafter on a trailing twelve-month basis, our EBITDA (as defined under the Credit Facility) must be in an amount equal to at least 75% of our monthly projected EBITDA as set forth in projections delivered pursuant to the Credit Facility. The current fixed charge coverage ratio of at least 1.15 to 1.00 on the last day of each month while a Covenant Trigger Period (as defined in the agreement) is in effect will become effective again after the Company has complied with such ratio for six consecutive months.

Credit Agreement

In August 2012, VTBH entered into a loan and security agreement with various financial institutions, which amended and restated the then existing $28 million term loan and $15 million credit facility. The Credit Agreement, which was to expire on August 22, 2015, increased the borrowing capacity to $55 million and provided for a $45 million term loan that bore interest at VTBH’s option at (i) the Adjusted Base Rate plus the applicable margin ranging from 2.50% to 3.25% as determined by VTBH’s total leverage ratio, or (ii) LIBOR, plus the applicable margin ranging from 3.50% to 4.25%. The Applicable Base Rate is equal to the highest of (a) the Prime Rate as determined by the syndication agent, (b) the federal funds rate plus 0.5% and (c) the LIBOR rate plus 1.0%. VTBH’s obligations under the Credit Agreement were secured by a first priority lien against substantially all of VTBH’s assets. The revolving line of credit was subject to limitations based on specific percentages of eligible accounts receivables and inventory.

2013 Amendments

VTBH entered into amendments to the Credit Agreement in July 2013 and August 2013 (the “2013 Amendments”). The 2013 Amendments waived certain defaults of the fixed charge coverage ratio and also provided for a new minimum EBITDA financial covenant, modifications of the fixed charge coverage ratio and maximum total leverage ratio for periods ending on or after September 28, 2013, and a modification of annual clean-down requirements with which VTBH would need to comply in order to provide for an increase in the eligible amount outstanding under the facility. In addition, the 2013 Amendments amended the interest rate on the outstanding term loans and required the issuance of $10 million of subordinated notes to reduce the outstanding borrowings on the term loan.

2014 Amendments

On January 15, 2014, in connection with the consummation of the Merger, the Company entered into a Third Amendment to the Credit Agreement in which Parametric became an obligor and guarantor under the loan and security agreement, and to (i) allow the Company to incur an additional $7 million of subordinated indebtedness, (ii) provide for the repayment of the term loan portion of the facility by February 28, 2014, (iii) change the maturity of the revolving line of credit portion of the facility to September 27, 2014, (iv) reduce the commitments under the revolving line of credit to $35 million after March 1, 2014, (v) increase the margin pursuant to which interest on outstanding amounts under the Credit Agreement were calculated by 0.75%, and (vi) modify the financial covenants contained in the Credit Agreement.

On March 13, 2014, the Company entered into a Fourth Amendment to the Credit Agreement to (i) increase the maximum principal amount of the lenders’ revolving loan commitment between February 28, 2014 and April 15, 2014 from $35 million to approximately $39 million, (ii) provide that the borrowers, on or prior to April 15, 2014, would reduce the aggregate dollar amount of revolving loans outstanding under the Credit Agreement to the lesser of $35 million or the Company’s borrowing base as of such date, (iii) waive the Company’s obligation to deliver certain certificates regarding its liquidity and borrowing base for the fiscal month ended February 28, 2014, and to specify the delivery date of such certificates during March 2014 and April 2014, (iv) eliminate a requirement that the borrowers reduce the aggregate dollar amount of revolving loans and swing loans outstanding to an amount no greater than $25 million for a thirty consecutive day period during the first fiscal quarter of each fiscal year, and (v) eliminate the lenders’ obligation to make additional revolving loan commitments after February 28, 2014.

In connection with the above, on January 15, 2014, we repaid $7.0 million of the term loan with proceeds from the issuance of a subordinated note, and on February 28, 2014 repaid the remaining $7.5 million principal balance with funds from operations, as required by the “2014 Amendments.”

Invoice Factoring

TB Europe utilized accounts receivable factoring arrangements with a third-party financial institution in order to accelerate its cash collections from product sales. These arrangements provided for the transfer of ownership of eligible trade accounts receivable up to a maximum of £5.0 million at any time, without recourse, to the third-party financial institution in exchange for cash. This invoice factoring arrangement was terminated on March 31, 2014, and related borrowings were fully paid with proceeds from the Credit Facility described above.

As of December 31, 2013, TB Europe had sold $5.7 million of trade accounts receivable to the third-party financial institution, which were netted against accounts receivable on the accompanying Consolidated Balance Sheet.

Subordinated Notes - Related Party

On August 30, 2013, VTBH issued $10 million of subordinated notes (the “August Notes”) to SG VTB Holdings, LLC (“SG VTB”), VTBH's largest shareholder, Ronald Doornink, a director of Turtle Beach, and Juergen Stark, Chief Executive Officer, that bore interest at a rate of (i) 10% per annum for the first year and (ii) 20% per annum for all periods thereafter, with interest accruing and being added to the principal amount of the August Notes quarterly. Principal and interest on the August Notes are due upon maturity, which was to occur on the one year anniversary of the later of (i) the term loan maturity date under the Credit Agreement or (ii) the revolving line of credit termination date thereunder. The proceeds from the August Notes were used to repay an equivalent portion of the then outstanding term loans. In June 2014, we repaid the $10 million outstanding principal amount plus related accrued interest of the August Notes with proceeds from an equity offering.

In connection with the Third Amendment to the Credit Agreement, on January 15, 2014, the Company issued an additional $7 million subordinated note (the “January Note”) to SG VTB, the proceeds of which were applied against the outstanding balance of the term loan under the Credit Agreement. The January Note bears interest at a rate of (i) 10% per annum until December 31, 2014 (which is the maturity date of the January Note) and (ii) 20% per annum for all periods thereafter, with interest accruing and being added to the principal amount of the January Note quarterly. The other terms of the January Note are substantially similar to the terms of the August Notes. In December 2014, we repaid the $7 million outstanding principal amount plus related accrued interest of the January Notes with proceeds from an additional loan drawn under the Credit Facility.

Income Taxes

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

The provision (benefit) for income taxes consists of the following:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
Federal:
Current	$	3,271		$	(2,456	)	$	13,660
Deferred	(9,424		)	3,574			(1,148		)
Total Federal	(6,153		)	1,118			12,512
State and Local:
Current	455			54			1,510
Deferred	(347		)	190			(120		)
Total State and Local	108			244			1,390
Foreign
Current	—			233			436
Deferred	(227		)	(505		)	(330		)
Total Foreign	(227		)	(272		)	106
Total	$	(6,272	)	$	1,090		$	14,008

The reconciliation between the provision (benefit) for income taxes and the expected provision (benefit) for income taxes at the U.S. federal statutory rate of 35% is as follows:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
U.S. Operations	$	(21,639	)	$	(6,026	)	$	39,626
Foreign Operations	(119		)	953			842
Income (loss) before income taxes	(21,758		)	(5,073		)	40,468
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(7,615		)	(1,776		)	14,164
State taxes, net of federal benefit	37			158			904
Foreign tax rate differential	151			(282		)	(49		)
Research credits	(728		)	—			—
Gain on bargain purchase	—			—			(804		)
Acquisition costs	613			865			—
Interest on Series B Preferred Stock	421			353			—
Prior year adjustment	27			1,177			—
Change in unrecognized tax benefits	875			—			—
Other	(53		)	595			(207		)
Provision (benefit) for income taxes	$	(6,272	)	$	1,090		$	14,008

The income tax provision (benefit) reflects the current and deferred tax consequences of events that have been recognized in the Company’s Consolidated Financial Statements or tax returns. U.S. federal income taxes are provided on unremitted foreign earnings, except those that are considered indefinitely reinvested, which at December 31, 2014 amounted to approximately $0.7 million. However, if these earnings were not considered indefinitely reinvested, the Company believes that it has enough foreign tax credits to offset any potential tax liability. The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely reinvested outside the United States and the current plans do not demonstrate a need to repatriate them to fund our U.S. operations.

The tax effects of significant items comprising the Company’s deferred tax assets/(liabilities) are as follows:



	December 31, 2014			December 31, 2013
	(in thousands)
Deferred Tax Assets:
Allowance for doubtful accounts	73			$	82
Inventories	543			757
Employee benefits	3,895			2,777
Net operating loss	11,422			33
Unrecognized tax benefits	3,045			559
Other	677			(41		)
Total deferred tax assets	19,655			4,167

Deferred Tax Liabilities:
Depreciation and amortization	(734		)	(1,138		)
Intangible assets	(13,511		)	(838		)
Total deferred tax liabilities	(14,245		)	(1,976		)
Net deferred tax assets	$	5,410		$	2,191

At December 31, 2014, the Company has $29.4 million of net operating loss carryforwards and $12.8 million of state net operating loss carryforwards, which will begin to expire in 2029. An ownership change occurred on January 15, 2014, and

$12.7 million of federal net operating losses included in the above are pre-change losses subject to Section 382. The Company believes, based on the estimated Section 382 limitation and the net operating loss carryforward period, that the pre ownership change net operating losses will be fully utilized in future years.

The realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. In 2014, the Company reassessed the the realizability of deferred tax assets taking into consideration consecutive years of pre-tax losses. The analysis evaluated all available information, including the historical and forecasted pre-tax profits, as well as the scheduled reversal of deferred tax liabilities, projected taxable income and tax planning strategies in making this assessment.

The evaluation noted that while the current year resulted in both a pre-tax and net taxable loss it was driven largely by expense related to the acquisition and the initial investment in the HyperSound business as well as non-recurring incremental shipping and handling costs related to a console manufacture delay and increased air freight usage in response to the labor uncertainty at the West Coast ports. In 2014, the Company received clearance from the U.S. Food and Drug Administration to market the HyperSound Audio System, refinanced debt facilities to reduce our cost of capital, and completed supply chain improvements and product development efforts that have reduced projected cost structures and resulted in an increase in projected revenue growth rates and profitability levels. Management has noted that revenues can fluctuate significantly due to a number of factors beyond our control and as such, if the performance of our HyperSound products in the hearing healthcare market does not meet expectations and negatively impacts current estimates that sufficient taxable income will start to be generated within the next year to allow the related tax benefits to reduce taxes otherwise payable, a valuation allowance may be required.

The Company recognizes windfall tax benefits associated with the exercise of stock options directly to stockholders’ equity only when realized. Accordingly, deferred tax assets are not recognized for net operating loss carryforwards resulting from windfall tax benefits. At December 31, 2014, deferred tax assets do not include excess tax benefits from stock-based compensation of $0.7 million.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:



	December 31, 2014		December 31, 2013
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	1,468	$	1,468
Additions based on tax positions related to the current year	2,497		—
Gross unrecognized tax benefit, end of period	$	3,965	$	1,468

The Company recognizes only those tax positions that meet the more-likely-than-not recognition threshold, and establish tax reserves for uncertain tax positions that do not meet this threshold. To the extent these unrecognized tax benefits are ultimately recognized, approximately $2.5 million will impact the Company’s effective tax rate in a future period. Interest and penalties associated with income tax matters are included in the provision for income taxes. As of December 31, 2014, the Company had uncertain tax positions of $5.5 million, inclusive of $1.5 million of interest and penalties. The Company believes that it is reasonably possible that a decrease of $2.5 million in the Company’s obligations will occur within 12 months of the reporting date due to the closing of an audit with the tax authorities.

The Company files U.S., state and foreign income tax returns in jurisdictions with various statutes of limitations. Below is a summary of the filing jurisdictions and open tax years:



	Open Years
U.S. Federal	2011 - 2013
California	2010 - 2013
New Jersey	2010 - 2013
New York	2011 - 2013
Pennsylvania	2011 - 2013
Texas	2010 - 2013
United Kingdom	2012 - 2013

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References+ Details

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net loss per share of common stock attributable to common stockholders:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands, expect per-share data)
Net Income (Loss)	$	(15,486	)	$	(6,163	)	$	26,460
Noncumulative dividends on Series A Convertible Preferred Stock	—			—			(22,627		)
Undistributed earnings allocated to Series A Convertible Preferred Stock	—			—			(2,222		)
Net income (loss) attributable to common stockholders	$	(15,486	)	$	(6,163	)	$	1,611

Weighted average common shares outstanding — Basic	39,665			12,700			12,700
Plus incremental shares from assumed conversions:
Dilutive effect of stock options	—			—			—
Weighted average common shares outstanding — Diluted	39,665			12,700			12,700

Net earnings (loss) per share attributable to common stockholders:
Basic	$	(0.39	)	$	(0.49	)	$	0.13
Diluted	$	(0.39	)	$	(0.49	)	$	0.13

As described in Note 1, historical weighted-average shares amounts reflect the application of a 0.35997 conversion ratio to historical VTBH share and weighted-average share amounts.

Incremental shares from stock options and restricted stock awards are computed by 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, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises.



	Year Ended
	December 31,
	2014	2013	2012
	(in thousands)
Stock options	6,081	3,961	3,961
Warrants	36	—	—
Unvested restricted stock awards	6	—	—
Total	6,123	3,961	3,961

- Definition

The entire disclosure for earnings per share.

+ References+ Details

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2014
Equity [Abstract]
Preferred Stock	Preferred Stock Series A Convertible Preferred Stock In September 2010, VTBH issued 48,689,555 shares of its Series A Convertible Preferred Stock for aggregate proceeds of $24.3 million. In connection with the Merger, all of the issued and outstanding Series A Convertible Preferred Stock were canceled and the former holders were issued 17,526,640 shares of Parametric Common Stock. There were no dividends declared during the years ended December 31, 2014 and 2013. For the year ended December 31, 2012, $22.6 million of dividends were declared and paid. Series B Redeemable Preferred Stock In September 2010, VTBH issued 1,000,000 shares of non-voting Series B Redeemable Preferred Stock (“Preferred Stock”) with a fair value of $12.4 million. We are required to redeem the Preferred Stock on the earlier to occur of September 28, 2030 or the occurrence of a liquidation event at its original issue price of $12.425371 per share plus any accrued but unpaid dividends. Dividends are cumulative and accrue at a rate of 8.0% per annum, compounded quarterly, and payable as and when declared by the Board of Directors. The Preferred Stock does not contain any conversion rights. A liquidation event is defined as any acquisition of the Company by means of merger or other form of corporate reorganization in which the outstanding shares of the corporation are exchanged for securities or other consideration issued, or caused to be issued, by the acquiring corporation or its subsidiary (other than a reincorporation transaction) or a sale of all or substantially all of the assets of the corporation. For the years ended December 31, 2014, 2013, and 2012, the Company recognized $1.2 million, $1.0 million and $1.0 million, respectively, of interest expense on the Preferred Stock. The redemption value was $14.9 million and $13.7 million as of December 31, 2014 and 2013, respectively. The Company has recorded the Preferred Stock as a non-current liability due to its mandatory redemption provisions for all periods presented. There were no dividends declared during the years ended December 31, 2014 and 2013. During the year ended December 31, 2012, $2.0 million in dividends were declared and paid. As of December 31, 2014, 2013, and 2012, 1,000,000 shares of Series B redeemable preferred stock are authorized, issued and outstanding.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Our stock-based compensation program is a broad-based program designed to attract and retain employees while also aligning employees’ interests with the interests of our shareholders. In addition, members of our Board of Directors participate in our stock-based compensation program in connection with their service on our board.

On October 30, 2013 the Board of Directors adopted, and on December 27, 2013 the stockholders approved, the 2013 Stock-Based Incentive Compensation Plan (the “2013 Plan”), that became effective upon consummation of the Merger on January 15, 2014. The 2013 Plan succeeds the VTBH 2011 Equity Incentive Plan (the “2011 Plan”) and the Parametric 2012 Stock Option Plan (the “2012 Plan”). The total number of shares of common stock authorized for grant under the 2013 Plan is 2,250,000 shares plus 122,000 shares authorized to be granted but not issued under the 2012 Plan, plus any shares that may become available through forfeitures or otherwise terminate under the 2012 Plan.

The 2011 Plan and 2012 Plan were terminated as to new grants at the Merger but vested and unvested stock options previously granted of 3,960,783 and 1,392,854, respectively, as of the Merger continued.

Stock option awards outstanding under the Company’s Plans are time-based and granted at exercise prices which are equal to the market value of the Company’s common stock on the grant date (determined in accordance with the applicable Plan), and expire no later than ten years of the date of grant, but only to the extent they have vested. The options generally vest as specified in the option agreements subject, in some instances, to acceleration in certain circumstances. The restrictions on restricted stock generally lapse over a three-year period from the date of the grant. In the event a participant terminates employment with the Company, any unvested stock options and any restricted stock still subject to restrictions are generally forfeited if they are not exercised within 90 days.

The following table presents the stock activity and the total number of shares available for grant as of December 31, 2014:



	(in thousands)
Balance at December 31, 2013	1,439
VTBH 2011 Plan terminated at Merger	(1,439	)
2013 Plan adopted at Merger	2,372
Options granted	(2,074	)
Restricted Stock granted	(6	)
Forfeited/Expired shares added back	151
Balance at December 31, 2014	443

Total estimated stock-based compensation expense for employees and non-employees, related to all of the the Company's stock-based awards, was comprised as follows:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
Cost of revenue	$	310	$	60	$	60
Selling and marketing	866		343		281
Research and development	846		342		121
General and administrative	3,172		1,818		523
Total stock-based compensation	$	5,194	$	2,563	$	985

Forfeitures on option grants are estimated at 10% based on evaluation of historical and expected future turnover for non-executives and 0% based for executives. Stock-based compensation expense was recorded net of estimated forfeitures, such that expense was recorded only for those stock-based awards that are 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).

The associated tax benefit recognized in the Consolidated Statements of Operations for the fiscal years ended December 31, 2014, 2013 and 2012 was approximately $1.9 million, $0.9 million and $0.4 million, respectively. In addition, cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for stock-based compensation arrangements (“excess tax benefits”) are classified as financing cash flows only when realized. As such, for the fiscal year ended December 31, 2014, excess tax benefits from stock-based compensation arrangements of $0.7 million were not recognized. The Company received $1.6 million in cash from the exercise of stock options. None of the Company's stock options were exercised for the years ended December 31, 2013 and 2012.

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, 2013	3,960,793		$	4.71	8.45	$	3,031,094
Granted	2,074,377		10.81
Assumed in acquisition	1,392,854		6.02
Exercised	(502,087	)	3.22
Forfeited	(337,840	)	6.11
Outstanding at December 31, 2014	6,588,097		$	6.95	6.96	$	1,327,366
Vested and expected to vest at December 31, 2014	6,408,076		$	6.89	6.89	$	1,327,366
Exercisable at December 31, 2014	3,215,667		$	4.89	5.22	$	1,251,874

As described in Note 1, option share and exercise prices reflect the application of the 0.35997 conversion ratio to historical VTBH share and weighted-average share amounts.

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 $4.0 million for the year ended December 31, 2014.

As of December 31, 2014, total unrecognized compensation cost related to non-vested stock options granted to employees was $12.2 million, which is expected to be recognized over a remaining weighted average vesting period of 2.9 years.

Determination of Fair Value

Option valuation models require the input of highly subjective assumptions, including expected stock price volatility. The Black-Scholes option pricing model was developed for use in estimating the fair value of traded options, which have no vesting restrictions and are fully transferable. The fair value of options granted under the Company’s Plans was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:



	Year Ended
	December 31,
	2014	2013	2012
	(in thousands)
Expected term (in years)	6.1	6.0	6.0
Risk-free interest rate	1.8% - 2.0%	1.0% - 1.1%	0.8% - 1.1%
Expected volatility	47.5% - 49.8%	50.4% - 50.5%	50.5% - 51.1%
Dividend rate	0%	0%	0%

Each of these inputs is subjective and generally requires significant judgment to determine. The risk-free rate is based on a zero-coupon U.S. Treasury rate in effect at the time of grant with maturity dates that coincide with the expected life of the options. The expected life of the options is based on a study of several unrelated public peer companies within the Company’s industry that the Company considers to be comparable to its business and the historical data on employee exercises and post-vesting employment termination behavior taking into account the contractual life of the award. Since the Company has a limited trading history for its common stock, the expected volatility was derived from the historical stock volatilities of several unrelated public companies within the Company’s industry that are considered to be comparable to the Company’s business over a period equivalent to the expected term of the stock option grants.

The weighted average grant date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 was $5.27, $1.16 and $1.02, respectively. The total estimated fair value of employee options vested during the years ended December 31, 2014, 2013 and 2012 was $5.5 million, $2.8 million and $0.5 million, respectively.

Restricted Stock Activity

As of December 31, 2014 total unrecognized compensation cost related to the nonvested restricted stock awards granted was $0.1 million, which is expected to be recognized over a remaining weighted average vesting period of 3.1 years.

Phantom Equity Activity

In November 2011, VTBH adopted a 2011 Phantom Equity Appreciation Plan ("the Appreciation Plan") that covers certain employees, consultants, and directors of VTBH (“Participants”) who are entitled to phantom units, as applicable, pursuant to the provisions of their respective award agreements. The Appreciation Plan is shareholder-approved, which permits the granting of phantom units to VTBH’s Participants of up to 1,500,000 units. These units are not exercisable or convertible into shares of common stock but give the holder a right to receive a cash bonus equal to the appreciation in value between the exercise price and value of common stock at the time of a change in control event as defined in the plan.

As of December 31, 2014 and 2013, 807,578, and 1,255,280 phantom units at a weighted-average exercise price of $0.88 and $0.89 have been granted and are outstanding. Because these phantom units are not exercisable or convertible into common shares, said amounts and exercise prices were not subject to the exchange ratio provided by the Merger agreement. As of December 31, 2014, compensation expense related to the Appreciation Plan units remained unrecognized because a change in control, as defined in the plan, had not occurred.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References+ Details

Geographical Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Geographical Information

Geographic Information

The following table represents total net revenue based on where customers are physically located:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
United States	$	117,715	$	111,514	$	136,494
United Kingdom	29,425		26,439		27,100
Europe	24,082		18,565		19,116
Other	14,954		21,952		24,426
Total net revenue	$	186,176	$	178,470	$	207,136

The following table represents property and equipment based on physical location:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
United States	$	6,612	$	7,276	$	5,006
International	110		93		726
Total	$	6,722	$	7,369	$	5,732

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Litigation

The Company is subject to various legal proceedings and claims that arise in the ordinary course of its business. Although the amount of any liability that could arise with respect to these actions cannot be determined with certainty, in the Company’s opinion, any such liability will not have a material adverse effect on its consolidated financial position, consolidated results of operations or liquidity.

On August 5, 2013, VTBH and the Company (f/k/a Parametric) announced that they had entered into the Merger Agreement pursuant to which VTBH would acquire an approximately 80% ownership interest and existing shareholders would maintain an approximately 20% ownership interest in the Company. Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a Merger that allegedly undervalued the Company. VTBH and the Company were named as a defendant in these lawsuits under the theory that they had aided and abetted Company's Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which by agreement was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada cases denied the plaintiffs’ motion for a preliminary injunction. Following the closing of the Merger, the Nevada plaintiffs filed a second amended complaint, which made essentially the same allegations and seeks 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 seeks monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. That denial is currently under review by the Nevada Supreme Court and briefing was completed on February 23, 2015. The Company believes that the plaintiffs’ claims against it are without merit and intends to vigorously defend itself in the litigation. As of December 31, 2014 and the date of this report, the Company is unable to estimate a possible loss or range of possible loss in regards to this matter; therefore, no litigation reserve has been recorded in the consolidated financial statements.

On February 18, 2015, Dr. John Bonanno, a minority shareholder of VTBH, filed a complaint in Delaware Chancery Court alleging breach of contract against VTBH. According to the complaint, the Merger purportedly triggered a contractual obligation for VTBH to redeem Dr. Bonanno's stock. Dr. Bonanno requests a declaratory judgment stating that he is entitled damages including a redemption of his stock for the redemption value of $15.1 million (equal to the original issue price of his stock plus accrued dividends) as well as other costs and expenses. VTBH maintains that the Merger did not trigger any obligation to redeem Mr. Bonanno's stock and VTBH intends to vigorously defend itself in the litigation.

Operating Leases

The Company leases office and warehouse spaces under operating leases that provide for future minimum rental lease payments under non-cancelable operating leases as of December 31, 2014, are as follows:



	(in thousands)
2015	$	1,146
2016	859
2017	802
2018	733
2019	585
Thereafter	184
Total	$	4,309

In January 2015, we entered into a 5 year lease that will commence in May 2015 for an aggregate of approximately 35,000 square feet of office space in San Diego, California, that will consolidate our San Diego and Poway, California locations. The new lease will provide sufficient growth to support the HyperSound business. The initial base rent of $1.0 million per year is subject to a 3% annual increase.

Warranties

The Company warrants products against certain manufacturing and other defects. These product warranties are provided for specific periods of time depending on the nature of the product. Warranties are generally fulfilled by replacing defective products with new products. The following table provides the changes in our product warranties, which are included in other current liabilities:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
Warranty, beginning of period	$	139		$	165		$	109
Warranty costs accrued	850			614			618
Settlements of warranty claims	(496		)	(640		)	(562		)
Warranty, end of period	$	493		$	139		$	165

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details

Selected Quarterly Financial Data - Unaudited

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data - Unaudited



Fiscal 2014	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	38,288		$	22,296		$	33,325		$	92,267
Gross Margin	12,276			4,831			7,749			25,811
Net Income (Loss)	(2,906		)	(9,302		)	(5,638		)	2,360
Earnings (Loss) Per Share
Basic	$	(0.09	)	$	(0.23	)	$	(0.13	)	$	0.06
Diluted	$	(0.09	)	$	(0.23	)	$	(0.13	)	$	0.06



Fiscal 2013	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	29,533		$	24,520		$	38,299		$	86,118
Gross Margin	8,625			6,322			8,646			26,736
Net Income (Loss)	(2,304		)	(3,338		)	(1,402		)	881
Earnings (Loss) Per Share (1)
Basic	$	(0.18	)	$	(0.26	)	$	(0.11	)	$	0.07
Diluted	$	(0.18	)	$	(0.26	)	$	(0.11	)	$	0.07

(1) In connection with the Merger, the 35,282,286 shares of VTBH Common Stock presented on its previously filed balance sheet as of December 31, 2013, are presented herein as 12,700,460 shares. This share amount is being utilized to calculate earnings per share for all periods prior to the Merger.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Certain prior period amounts in the accompanying consolidated financial statements and related notes have been reclassified to conform to the 2014 presentation.

Use of Estimates

Uses of Estimates

Revenue Recognition

Revenue Recognition and Sales Return Reserve

Sales Return Reserve

Cost of Revenue and Operating Expenses

The following table illustrates the primary costs classified in each major expense category:



Cost of Revenue		Operating Expenses
Cost to manufacture products;		Payroll, bonus and benefit costs;
Freight costs associated with moving product from suppliers to distribution center and to customers;		Costs incurred in the research and development of new products and enhancements to existing products;
Costs associated with the movement of merchandise through customs;		Depreciation related to demonstration units;
Costs associated with material handling and warehousing;		Legal, finance, information systems and other corporate overhead costs;
Product royalty costs.		Advertising and marketing costs.

Product Warranty Obligations

Marketing Costs

Cooperative Advertising

Deferred Financing Costs

Stock-Based Compensation

Compensation costs related to stock options and restricted stock grants are calculated based on the fair value of the stock-based

For stock-based awards issued to non-employees, including consultants, compensation expense is based on the fair value of the

awards calculated using the Black-Scholes option-pricing model over the service performance period. The fair value of options

granted to non-employees for each reporting period is re-measured over the vesting period and recognized as an expense over the period the services are received.

Exit and Disposal Costs

Net Earnings (Loss) per Common Share

Cash Equivalents

Inventories, net

Property and Equipment, net



		Estimated Life
Machinery and equipment		3 years
Software and software development		2-3 years
Furniture and fixtures		5 years
Tooling		2 years
Leasehold improvements		5 years or term of lease, if shorter
Demonstration units and convention booths		2 years

Valuation of Long-Lived and Intangible Assets and Goodwill

Income Taxes

The Company and its domestic subsidiaries file a consolidated federal income tax return, while the Company’s foreign subsidiary files in its respective local jurisdictions.

Fair Value of Financial Instruments

The Company did not have any non-financial assets or non-financial liabilities recognized at fair value on a recurring basis at December 31, 2014 and 2013.

Foreign Currency Translation

Concentration of Credit Risk

Foreign cash balances at December 31, 2014 and 2013 were $2.5 million and $1.4 million, respectively.

Segment Information

Recent Accounting Pronouncements

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of property and equipment

Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:



		Estimated Life
Machinery and equipment		3 years
Software and software development		2-3 years
Furniture and fixtures		5 years
Tooling		2 years
Leasehold improvements		5 years or term of lease, if shorter
Demonstration units and convention booths		2 years

Property and equipment, net consists of the following:



	December 31, 2014			December 31, 2013
	(in thousands)
Machinery and equipment	$	599		$	249
Software and software development	847			581
Furniture and fixtures	226			144
Tooling	2,417			1,756
Leasehold improvements	104			59
Demonstration units and convention booths	13,702			10,014
Total property and equipment, gross	17,895			12,803
Less: accumulated depreciation and amortization	(11,173		)	(5,434		)
Total property and equipment, net	$	6,722		$	7,369

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2014

Merger of VTB Holdings, Inc. and Parametric Sound Corporation

Business Acquisition [Line Items]

Schedule of transaction costs

The components of business transaction costs are presented below.



	Year Ended
	December 31,
	2014		2013
	(in thousands)
Legal fees	$	786	$	1,452
Accounting fees	84		2,254
Advisory fees	2,219		—
Termination and severance	450		—
Other	205		158
Total Transaction Costs	$	3,744	$	3,864

Summary of purchase consideration given

The purchase price is as follows:



	(in thousands)
Fair Value of Parametric shares outstanding	$	104,027
Fair Value of Parametric stock options	9,755
Purchase Price	$	113,782

Schedule of assets acquired and liabilities assumed

The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed:



	(in thousands)
Cash and cash equivalents	$	4,093
Accounts receivable	47
Deferred tax asset	6,696
Other current assets	710
Property and equipment	206
Intangible assets:
In-process research and development (IPR&D)	27,100
Developed technology	8,880
Customer relationships	270
Trade name	170
Goodwill	80,974
Accounts payable and accrued liabilities	(1,769		)
Capital lease obligation	(120		)
Deferred tax liabilities	(13,475		)
Total Net Assets Acquired	$	113,782

Supplemental information on a pro forma



	Year Ended						Year Ended
	December 31, 2014						December 31, 2013
	Reported			Proforma			Reported			Proforma
	(in thousands)
Net Revenue	$	186,176		$	186,176		$	178,470		$	178,992
Net Loss	$	(15,486	)	$	(17,576	)	$	(6,163	)	$	(15,536	)

Acquisition of Lygo International Limited

Business Acquisition [Line Items]

Schedule of assets acquired and liabilities assumed

The following presents the allocation of the purchase consideration to the assets acquired and liabilities assumed:



	(in thousands)
Cash	$	133
Accounts receivable	4,046
Inventory	9,957
Other current assets	321
Property and equipment	12
Intangible assets:
Customer relationships	5,526
Non-compete agreement	177
Accounts payable and accrued liabilities	(223		)
Other liabilities	(1,889		)
Derivative liability	(1,369		)
Total Net Assets Acquired	16,691
Purchase Price	(14,388		)
Gain on Bargain Purchase	$	2,303

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2014

Fair Value Disclosures [Abstract]

Fair value of financial assets and liabilities

The following table sets forth the fair value of financial assets and liabilities by level within the fair value hierarchy:



	December 31, 2013
	Level I		Level II			Level III		Total
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	$	19	$	—		$	—	$	19
Total financial assets	$	19	$	—		$	—	$	19

Other current liabilities - derivative liabilities	$	—	$	(392	)	$	—	$	(392	)
Total financial liabilities	$	—	$	(392	)	$	—	$	(392	)

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References+ Details

Composition of Certain Financial Statement Items (Tables)

12 Months Ended

Dec. 31, 2014

Condensed Consolidated Balance Sheet Components [Abstract]

Schedule of inventory

Inventories, net consist of the following:



	December 31, 2014		December 31, 2013
	(in thousands)
Raw materials	$	2,065	$	5,499
Finished goods	36,335		44,144
Total inventories, net	$	38,400	$	49,643

Schedule of property and equipment

Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives:



		Estimated Life
Machinery and equipment		3 years
Software and software development		2-3 years
Furniture and fixtures		5 years
Tooling		2 years
Leasehold improvements		5 years or term of lease, if shorter
Demonstration units and convention booths		2 years

Property and equipment, net consists of the following:



	December 31, 2014			December 31, 2013
	(in thousands)
Machinery and equipment	$	599		$	249
Software and software development	847			581
Furniture and fixtures	226			144
Tooling	2,417			1,756
Leasehold improvements	104			59
Demonstration units and convention booths	13,702			10,014
Total property and equipment, gross	17,895			12,803
Less: accumulated depreciation and amortization	(11,173		)	(5,434		)
Total property and equipment, net	$	6,722		$	7,369

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying values of goodwill for the year ended December 31, 2014 are as follows:



	(in thousands)
Balance as of January 1, 2014	$	—
Activity in 2014
Acquisition of HyperSound business	$	80,974
Balance as of December 31, 2014	$	80,974

Schedule of Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2014 and December 31, 2013 consist of:



	December 31, 2014
	Gross Carrying Value		Accumulated Amortization		Net Book Value
	(in thousands)
Customer relationships	$	5,597	$	2,323	$	3,274
Non-compete agreements	171		171		—
In-process Research and Development	27,100		—		27,100
Developed technology	8,880		104		8,776
Trade names	170		33		137
Patent and trademarks	439		—		439
Total Intangible Assets	$	42,357	$	2,631	$	39,726


	December 31, 2013
	Gross Carrying Value		Accumulated Amortization		Net Book Value
	(in thousands)
Customer relationships	$	5,526	$	1,623	$	3,903
Non-compete agreements	177		108		69
Total	$	5,703	$	1,731	$	3,972

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of December 31, 2014, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2015	$	2,603
2016	2,030
2017	1,866
2018	1,789
2019	1,697
Thereafter	2,202
Total	$	12,187

Credit Facilities and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2014

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments



	December 31, 2014			December 31, 2013
	(in thousands)
Revolving credit facility, maturing March 2019	$	36,863		$	—
Revolving line of credit, repaid in March 2014	—			39,736
Term loans	7,692			14,500
Subordinated notes	—			10,342
Total outstanding debt	44,555			64,578
Less: current portion of revolving line of credit	(36,863		)	(39,736		)
Less: current portion of term loan	(1,923		)	(14,500		)
Total noncurrent portion of long-term debt	$	5,769		$	10,342

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(e),(f))

-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 55

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=34725769&loc=d3e28878-108400

Reference 3: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 45

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 835

-SubTopic 30

-Section 45

-Paragraph 1A

-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

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-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.22)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 22

-Article 5

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 6

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 8

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 470

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of income tax (benefit)

The provision (benefit) for income taxes consists of the following:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
Federal:
Current	$	3,271		$	(2,456	)	$	13,660
Deferred	(9,424		)	3,574			(1,148		)
Total Federal	(6,153		)	1,118			12,512
State and Local:
Current	455			54			1,510
Deferred	(347		)	190			(120		)
Total State and Local	108			244			1,390
Foreign
Current	—			233			436
Deferred	(227		)	(505		)	(330		)
Total Foreign	(227		)	(272		)	106
Total	$	(6,272	)	$	1,090		$	14,008

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the provision (benefit) for income taxes and the expected provision (benefit) for income taxes at the U.S. federal statutory rate of 35% is as follows:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
U.S. Operations	$	(21,639	)	$	(6,026	)	$	39,626
Foreign Operations	(119		)	953			842
Income (loss) before income taxes	(21,758		)	(5,073		)	40,468
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(7,615		)	(1,776		)	14,164
State taxes, net of federal benefit	37			158			904
Foreign tax rate differential	151			(282		)	(49		)
Research credits	(728		)	—			—
Gain on bargain purchase	—			—			(804		)
Acquisition costs	613			865			—
Interest on Series B Preferred Stock	421			353			—
Prior year adjustment	27			1,177			—
Change in unrecognized tax benefits	875			—			—
Other	(53		)	595			(207		)
Provision (benefit) for income taxes	$	(6,272	)	$	1,090		$	14,008

Schedule of deferred tax assets and liabilities

The tax effects of significant items comprising the Company’s deferred tax assets/(liabilities) are as follows:



	December 31, 2014			December 31, 2013
	(in thousands)
Deferred Tax Assets:
Allowance for doubtful accounts	73			$	82
Inventories	543			757
Employee benefits	3,895			2,777
Net operating loss	11,422			33
Unrecognized tax benefits	3,045			559
Other	677			(41		)
Total deferred tax assets	19,655			4,167

Deferred Tax Liabilities:
Depreciation and amortization	(734		)	(1,138		)
Intangible assets	(13,511		)	(838		)
Total deferred tax liabilities	(14,245		)	(1,976		)
Net deferred tax assets	$	5,410		$	2,191

Schedule of unrecognized tax benefits roll forward

A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:



	December 31, 2014		December 31, 2013
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	1,468	$	1,468
Additions based on tax positions related to the current year	2,497		—
Gross unrecognized tax benefit, end of period	$	3,965	$	1,468

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2014

Earnings Per Share [Abstract]

Schedule of computation of basic and diluted net (loss) income per share of common stock

The following table sets forth the computation of basic and diluted net loss per share of common stock attributable to common stockholders:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands, expect per-share data)
Net Income (Loss)	$	(15,486	)	$	(6,163	)	$	26,460
Noncumulative dividends on Series A Convertible Preferred Stock	—			—			(22,627		)
Undistributed earnings allocated to Series A Convertible Preferred Stock	—			—			(2,222		)
Net income (loss) attributable to common stockholders	$	(15,486	)	$	(6,163	)	$	1,611

Weighted average common shares outstanding — Basic	39,665			12,700			12,700
Plus incremental shares from assumed conversions:
Dilutive effect of stock options	—			—			—
Weighted average common shares outstanding — Diluted	39,665			12,700			12,700

Net earnings (loss) per share attributable to common stockholders:
Basic	$	(0.39	)	$	(0.49	)	$	0.13
Diluted	$	(0.39	)	$	(0.49	)	$	0.13

Schedule of antidilutive securities excluded from computation of diluted net income per share of common stock



	Year Ended
	December 31,
	2014	2013	2012
	(in thousands)
Stock options	6,081	3,961	3,961
Warrants	36	—	—
Unvested restricted stock awards	6	—	—
Total	6,123	3,961	3,961

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

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 December 31, 2014:



	(in thousands)
Balance at December 31, 2013	1,439
VTBH 2011 Plan terminated at Merger	(1,439	)
2013 Plan adopted at Merger	2,372
Options granted	(2,074	)
Restricted Stock granted	(6	)
Forfeited/Expired shares added back	151
Balance at December 31, 2014	443

Stock-based compensation cost

Total estimated stock-based compensation expense for employees and non-employees, related to all of the the Company's stock-based awards, was comprised as follows:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
Cost of revenue	$	310	$	60	$	60
Selling and marketing	866		343		281
Research and development	846		342		121
General and administrative	3,172		1,818		523
Total stock-based compensation	$	5,194	$	2,563	$	985

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, 2013	3,960,793		$	4.71	8.45	$	3,031,094
Granted	2,074,377		10.81
Assumed in acquisition	1,392,854		6.02
Exercised	(502,087	)	3.22
Forfeited	(337,840	)	6.11
Outstanding at December 31, 2014	6,588,097		$	6.95	6.96	$	1,327,366
Vested and expected to vest at December 31, 2014	6,408,076		$	6.89	6.89	$	1,327,366
Exercisable at December 31, 2014	3,215,667		$	4.89	5.22	$	1,251,874

Schedule of weighted-average assumptions

The fair value of options granted under the Company’s Plans was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:



	Year Ended
	December 31,
	2014	2013	2012
	(in thousands)
Expected term (in years)	6.1	6.0	6.0
Risk-free interest rate	1.8% - 2.0%	1.0% - 1.1%	0.8% - 1.1%
Expected volatility	47.5% - 49.8%	50.4% - 50.5%	50.5% - 51.1%
Dividend rate	0%	0%	0%

Unvested restricted stock awards

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Stock option activity

Geographical Information (Tables)

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Schedule of Total Net Revenues Based on Location

The following table represents total net revenue based on where customers are physically located:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
United States	$	117,715	$	111,514	$	136,494
United Kingdom	29,425		26,439		27,100
Europe	24,082		18,565		19,116
Other	14,954		21,952		24,426
Total net revenue	$	186,176	$	178,470	$	207,136

Property and Equipment Based on Location

The following table represents property and equipment based on physical location:



	Year Ended
	December 31,
	2014		2013		2012
	(in thousands)
United States	$	6,612	$	7,276	$	5,006
International	110		93		726
Total	$	6,722	$	7,369	$	5,732

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases



	(in thousands)
2015	$	1,146
2016	859
2017	802
2018	733
2019	585
Thereafter	184
Total	$	4,309

Schedule of Product Warranty Liability

The following table provides the changes in our product warranties, which are included in other current liabilities:



	Year Ended
	December 31,
	2014			2013			2012
	(in thousands)
Warranty, beginning of period	$	139		$	165		$	109
Warranty costs accrued	850			614			618
Settlements of warranty claims	(496		)	(640		)	(562		)
Warranty, end of period	$	493		$	139		$	165

Selected Quarterly Financial Data - Unaudited (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information - Unaudited



Fiscal 2014	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	38,288		$	22,296		$	33,325		$	92,267
Gross Margin	12,276			4,831			7,749			25,811
Net Income (Loss)	(2,906		)	(9,302		)	(5,638		)	2,360
Earnings (Loss) Per Share
Basic	$	(0.09	)	$	(0.23	)	$	(0.13	)	$	0.06
Diluted	$	(0.09	)	$	(0.23	)	$	(0.13	)	$	0.06



Fiscal 2013	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	29,533		$	24,520		$	38,299		$	86,118
Gross Margin	8,625			6,322			8,646			26,736
Net Income (Loss)	(2,304		)	(3,338		)	(1,402		)	881
Earnings (Loss) Per Share (1)
Basic	$	(0.18	)	$	(0.26	)	$	(0.11	)	$	0.07
Diluted	$	(0.18	)	$	(0.26	)	$	(0.11	)	$	0.07

Summary of Significant Accounting Policies (Details) (USD $)	12 Months Ended		12 Months Ended	0 Months Ended		0 Months Ended			0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTBH Series A Preferred Stock Converted Into Post-Merger Parametric Common Stock	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Common stock	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc	Aug. 05, 2013 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc Common stock	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc Common stock	Aug. 05, 2013 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Parametric Sound Corporation Common stock	Dec. 31, 2013 Previously Reported Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Effective date of acquisition	Jan. 15, 2014
Equity interests issued and/or issuable in the transaction (in shares)						30,227,100			30,227,100
Common stock par value (in dollars per share)	$ 0.001	$ 0.001								$ 0.001
Exchange ratio of common stock									0.35997
Ownership percentage							80.00%	80.00%			20.00%
Common stock shares issued	42,027,991	12,700,460											35,282,286
Shares converted				17,526,640
Common stock shares outstanding (in shares)	42,027,991				37,501,722							7,274,622
Date to change registered name	May 28, 2014
Acquisition of HyperSound business			$ 80,974,000
Average market capitalization			$ 242,900,000
Implied premium of fair value over carrying value			7.00%

Summary of Significant Accounting Policies - Marketing Costs (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising expense	$ 4.8	$ 7.7	$ 8.2
Cooperative advertising expense	$ 6.4	$ 4.3	$ 3.8
Amortization period of unrecognized compensation costs (in years)	4 years

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended						12 Months Ended		12 Months Ended
	Dec. 31, 2014 segment	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2014 Foreign Countries	Dec. 31, 2013 Foreign Countries	Dec. 31, 2014 Sales Revenue, Net Customer Concentration Risk customer	Dec. 31, 2014 Accounts Receivable Customer Concentration Risk customer	Dec. 31, 2014 Customer One Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2013 Customer One Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2012 Customer One Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2014 Customer One Accounts Receivable Customer Concentration Risk	Dec. 31, 2013 Customer One Accounts Receivable Customer Concentration Risk	Dec. 31, 2014 Customer Two Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2013 Customer Two Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2012 Customer Two Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2014 Customer Two Accounts Receivable Customer Concentration Risk	Dec. 31, 2013 Customer Two Accounts Receivable Customer Concentration Risk	Dec. 31, 2014 Customer Three Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2013 Customer Three Sales Revenue, Net Customer Concentration Risk	Dec. 31, 2012 Customer Three Sales Revenue, Net Customer Concentration Risk
Revenue, Major Customer [Line Items]
Number of customers							3	2
Concentration risk, percentage							45.00%		15.00%	16.00%	18.00%	26.00%	24.00%	15.00%	15.00%	16.00%	23.00%	20.00%	15.00%	14.00%	12.00%
Cash and cash equivalents	$ 7,908	$ 6,509	$ 5,219	$ 15,942	$ 2,500	$ 1,400
Number of operating segments	2

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References+ Details

Business Combinations Narrative (Details) (USD $)	12 Months Ended			0 Months Ended		0 Months Ended			1 Months Ended		0 Months Ended		1 Months Ended
Business Combinations Narrative (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Developed technology	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Customer relationships	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Trade names	Oct. 31, 2012 Acquisition of Lygo International Limited	Oct. 31, 2012 Acquisition of Lygo International Limited Customer relationships	Jan. 15, 2014 Minimum Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Maximum Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Oct. 31, 2012 2011 Phantom Equity Appreciation Plan Phantom equity Acquisition of Lygo International Limited
Business Acquisition [Line Items]
Revenue of acquiree				$ 700,000
Loss of acquiree				13,500,000
Purchase price (in dollars per share)					$ 14.30
Expected volatility, minimum (as a percentage)	47.50%	50.40%	50.50%	87.00%
Expected volatility, maximum (as a percentage)	49.80%	50.50%	51.10%	90.00%
Risk-free interest rate, minimum (as a percentage)	1.80%	1.00%	0.80%	0.47%
Risk-free interest rate, maximum (as a percentage)	2.00%	1.10%	1.10%	0.92%
Forfeitures rate, minimum (as a percentage)				1.10%
Forfeitures rate, maximum (as a percentage)				4.10%
Expected term (in years)	6 years 1 month 18 days	6 years 0 months 18 days	6 years 0 months 18 days								3 years 3 months 11 days	4 years 7 months 10 days
Useful life (in years)						7 years	2 years	5 years		13 years
Deferred tax asset	19,655,000	4,167,000			6,700,000
Deferred tax liability	14,245,000	1,976,000			13,500,000
Purchase Price				113,782,000					14,388,000
Payments to acquire business in cash									5,500,000
Effective settlement of accounts receivable									8,900,000
Gain on Bargain Purchase	$ 0	$ 0	$ 2,303,000						$ 2,303,000
Phantom units issued (in shares)	6,000												398,010
Phantom units exercise price (in dollars per share)													$ 2.01

Business Combinations - Transaction Costs (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Total Transaction Costs	$ 3,744,000	$ 3,864,000	$ 342,000
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Legal fees	786,000	1,452,000
Accounting fees	84,000	2,254,000
Advisory fees	2,219,000	0
Termination and severance	450,000	0
Other	205,000	158,000
Total Transaction Costs	3,744,000	3,864,000
Pre-acquisition transaction costs	$ 1,200,000	$ 2,300,000

Business Combinations - Consideration Given (Details) (Merger of VTB Holdings, Inc. and Parametric Sound Corporation, USD $) In Thousands, unless otherwise specified	0 Months Ended
	Jan. 15, 2014
Business Acquisition [Line Items]
Purchase Price	$ 113,782
Common stock
Business Acquisition [Line Items]
Fair Value of Parametric equity consideration	104,027
Stock options
Business Acquisition [Line Items]
Fair Value of Parametric equity consideration	$ 9,755

Business Combinations - Assets Acquired and Liabilities Assumed (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			1 Months Ended			0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Oct. 31, 2012 Acquisition of Lygo International Limited	Oct. 31, 2012 Acquisition of Lygo International Limited Customer relationships	Oct. 31, 2012 Acquisition of Lygo International Limited Non-compete agreements	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation In-process research and development (IPR&D)	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Developed technology	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Trade names	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Customer relationships
Business Acquisition [Line Items]
Cash and cash equivalents				$ 133				$ 4,093
Accounts receivable				4,046				47
Inventory				9,957
Deferred tax asset								6,696
Other current assets				321				710
Property and equipment				12				206
Intangible assets, indefinite-lived									27,100
Intangible assets, finite-lived					5,526	177				8,880	170	270
Goodwill	80,974	0						80,974
Accounts payable and accrued liabilities				(223)				(1,769)
Other liabilities				(1,889)
Derivative liability				(1,369)
Capital lease obligation								(120)
Deferred tax liabilities								(13,475)
Total Net Assets Acquired, Including Goodwill								113,782
Total Net Assets Acquired				16,691
Purchase Price				(14,388)			(113,782)
Gain on Bargain Purchase	$ 0	$ 0	$ 2,303	$ 2,303

Business Combinations - Unaudited Pro Forma (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Business Acquisition [Line Items]
Net Revenue	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 86,118	$ 38,299	$ 24,520	$ 29,533	$ 186,176	$ 178,470	$ 207,136
Net income (loss)	2,360	(5,638)	(9,302)	(2,906)	881	(1,402)	(3,338)	(2,304)	(15,486)	(6,163)	26,460
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Net Revenue									186,176	178,992
Net Loss									$ (17,576)	$ (15,536)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Equity Offering (Details) (USD $)	12 Months Ended			0 Months Ended		0 Months Ended	1 Months Ended
Equity Offering (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Apr. 24, 2014 Underwritten public offering	Apr. 24, 2014 Underwritten public offering	Apr. 24, 2014 30-day option granted to underwriters to purchase additional stock	Jun. 30, 2014 Subordinated Debt Chief Executive Officer, Director,and Shareholder VTB Holdings, Inc Issuance of August Notes
Equity Offering [Line Items]
Number of shares issued in transaction				4,000,000		600,000
Share price (in dollars per share)					$ 10.00
Proceeds from sale of common stock, net of issuance costs	$ 37,230,000	$ 0	$ 0
Repayment of debt							$ 10,000,000

Fair Value Measurement (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Total
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	$ 19
Total financial assets	19
Other current liabilities - derivative liabilities	(392)
Total financial liabilities	(392)
Level I
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	19
Total financial assets	19
Other current liabilities - derivative liabilities	0
Total financial liabilities	0
Level II
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	0
Total financial assets	0
Other current liabilities - derivative liabilities	(392)
Total financial liabilities	(392)
Level III
Financial Assets and Liabilities:
Cash and cash equivalents - money market funds	0
Total financial assets	0
Other current liabilities - derivative liabilities	0
Total financial liabilities	$ 0

- Definition

Fair value, after the effects of master netting arrangements, of a financial liability or contract with one or more underlyings, notional amount or payment provision or both, and the contract can be net settled by means outside the contract or delivery of an asset. Includes liabilities not subject to a master netting arrangement and not elected to be offset.

+ References+ Details

Allowance for Sales Return (Details) (Allowance for Sales Returns, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Allowance for Sales Returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 6,266	$ 7,748	$ 6,152
Reserve accrual	13,042	20,146	19,659
Recoveries and deductions, net	(15,153)	(21,628)	(18,063)
Balance, end of period	$ 4,155	$ 6,266	$ 7,748

Composition of Certain Financial Statement Items Inventory (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 2,065	$ 5,499
Finished goods	36,335	44,144
Total inventories, net	$ 38,400	$ 49,643

Composition of Certain Financial Statement Items Property and equipment (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 17,895	$ 12,803
Less: accumulated depreciation and amortization	(11,173)	(5,434)
Total property and equipment, net	6,722	7,369	5,732
Depreciation and amortization	5,800	4,422	1,858
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	599	249
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	847	581
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	226	144
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	2,417	1,756
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	104	59
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 13,702	$ 10,014

Goodwill and Other Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified											12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014 Customer relationships	Dec. 31, 2013 Customer relationships	Dec. 31, 2014 Non-compete agreements	Dec. 31, 2013 Non-compete agreements	Dec. 31, 2014 Developed technology	Dec. 31, 2014 Trade names	Dec. 31, 2014 In-process research and development (IPR&D)	Dec. 31, 2014 Patent and trademarks	Dec. 31, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 80,974	$ 0										$ 80,974
Acquisition of HyperSound business											80,974
Goodwill, ending balance	80,974	0										80,974
Finite-lived intangible assets, gross carrying value			5,597	5,526	171	177	8,880	170
Indefinite-lived intangible assets									27,100	439
Total intangible assets, gross carrying value	42,357	5,703
Finite-lived intangible assets, accumulated amortization	2,631	1,731	2,323	1,623	171	108	104	33
Total	12,187		3,274	3,903	0	69	8,776	137
Total intangible assets, net book value	$ 39,726	$ 3,972

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2015	$ 2,603
2016	2,030
2017	1,866
2018	1,789
2019	1,697
Thereafter	2,202
Total	$ 12,187

Goodwill and Other Intangible Assets - Additional Disclosures (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			1 Months Ended		0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Oct. 31, 2012 Acquisition of Lygo International Limited Customer relationships	Oct. 31, 2012 Acquisition of Lygo International Limited Non-compete agreements	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Customer relationships	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Developed technology	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Trade names
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)				13 years	2 years	2 years	7 years	5 years
Amortization of intangible assets	$ 1,066	$ 923	$ 748

Credit Facilities and Long-Term Debt (Details) (USD $)	12 Months Ended
Credit Facilities and Long-Term Debt (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Debt Instrument [Line Items]
Total outstanding debt	$ 44,555,000	$ 64,578,000
Total noncurrent portion of long-term debt	5,769,000	10,342,000
Interest expense	6,000,000	5,600,000	3,700,000
Amortization of deferred financing costs	2,621,000	1,556,000	835,000
Write off of Deferred Debt Issuance Costs	2,200,000	400,000	300,000
Revolving credit facilities \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Total outstanding debt	36,863,000	0
Revolving credit facilities \| Revolving line of credit, repaid in March 2014
Debt Instrument [Line Items]
Total outstanding debt	0	39,736,000
Current maturities of outstanding debt	(36,863,000)	(39,736,000)
Term loans
Debt Instrument [Line Items]
Total outstanding debt	7,692,000	14,500,000
Current maturities of outstanding debt	(1,923,000)	(14,500,000)
Subordinated Debt
Debt Instrument [Line Items]
Total outstanding debt	$ 0	$ 10,342,000

- Definition

Carrying amount of long-term debt, net of unamortized discount or premium, including current and noncurrent amounts. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References+ Details

Credit Facilities and Long-Term Debt - Credit Facility (Details) (USD $)	12 Months Ended				12 Months Ended			12 Months Ended			12 Months Ended			0 Months Ended
	Dec. 31, 2014 Revolving credit facility, maturing March 2019	Dec. 29, 2014 Revolving credit facility, maturing March 2019	Mar. 31, 2015 Revolving credit facility, maturing March 2019 Subsequent Event	Mar. 16, 2015 Revolving credit facility, maturing March 2019 Subsequent Event	Dec. 31, 2014 Revolving credit facility, maturing March 2019 Minimum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 Maximum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 Base rate	Dec. 31, 2014 Revolving credit facility, maturing March 2019 Base rate Minimum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 Base rate Maximum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 LIBOR	Dec. 31, 2014 Revolving credit facility, maturing March 2019 LIBOR Minimum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 LIBOR Maximum	Dec. 31, 2014 Revolving credit facility, maturing March 2019 UK Borrower	Dec. 29, 2014 Term loans LIBOR
Line of Credit Facility [Line Items]
Expiration date	Mar. 31, 2019
Maximum borrowing capacity	$ 60,000,000												$ 10,000,000
Basis spread on variable rate					2.00%	2.50%		1.00%	1.50%		2.00%	2.50%		5.00%
Interest rate at period end							4.75%			2.67%
Unused commitment fee, percent					0.25%	0.50%
Remaining borrowing capacity	15,000,000
Line of credit facility, over advance, default amount			100,000
Debt instrument, amended credit agreement, principal amount permitted to be repaid		$ 7,700,000
Debt instrument, covenant, current fixed charge ratio required, minimum				1.15

Credit Facilities and Long-Term Debt - Credit Agreement (Details) (USD $)	12 Months Ended			0 Months Ended								0 Months Ended					1 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jan. 15, 2014 Credit Agreement	Jan. 15, 2014 Credit Agreement	Mar. 13, 2014 Credit Agreement After March 1, 2014	Mar. 13, 2014 Credit Agreement Between February 28, 2014 and April 15, 2014	Mar. 13, 2014 Credit Agreement On or prior to April 15, 2013	Mar. 13, 2014 Credit Agreement Thirty consecutive day period during first quarter of each fiscal year	Aug. 31, 2012 Credit Agreement Revolving credit facilities Revolving line of credit, repaid in March 2014	Aug. 31, 2013 Credit Agreement Subordinated Debt	Feb. 28, 2014 Credit Agreement Term loans	Jan. 15, 2014 Credit Agreement Term loans	Aug. 31, 2012 Credit Agreement Term loans	Aug. 31, 2012 Credit Agreement [Member] Revolving credit facilities Revolving line of credit, repaid in March 2014	Aug. 31, 2012 Credit Agreement [Member] Term loans	Aug. 31, 2012 Credit Agreement [Member] Term loans Adjusted base rate Minimum	Aug. 31, 2012 Credit Agreement [Member] Term loans Adjusted base rate Maximum	Aug. 31, 2012 Credit Agreement [Member] Term loans Adjusted base rate - Federal funds rate	Aug. 31, 2012 Credit Agreement [Member] Term loans Adjusted base rate - LIBOR	Aug. 31, 2012 Credit Agreement [Member] Term loans LIBOR Minimum	Aug. 31, 2012 Credit Agreement [Member] Term loans LIBOR Maximum
Line of Credit Facility [Line Items]
Maximum borrowing capacity										$ 15,000,000				$ 28,000,000	$ 55,000,000	$ 45,000,000
Basis spread on variable rate																	2.50%	3.25%	0.50%	1.00%	3.50%	4.25%
Amount of subordinated notes required to reduce outstanding borrowings											10,000,000
Additional subordinated indebtedness					7,000,000
Commitment amount						35,000,000	39,000,000
Increase in interest rate margin				0.75%
Maximum allowable aggregate dollar amount of outstanding loan								35,000,000	25,000,000
Repayments of loans	$ 14,500,000	$ 26,750,000	$ 28,950,000									$ 7,500,000	$ 7,000,000

Credit Facilities and Long-Term Debt - Deferred Financing Costs, Invoice Factoring and Subordinated Notes (Details)			0 Months Ended		1 Months Ended		1 Months Ended
	Dec. 31, 2013 USD ($)	Dec. 31, 2013 GBP (£)	Jan. 15, 2014 VTB Holdings, Inc Issuance of January Note Chief Executive Officer, Director,and Shareholder	Aug. 30, 2013 VTB Holdings, Inc Subordinated Debt Issuance of August Notes Chief Executive Officer, Director,and Shareholder	Jun. 30, 2014 VTB Holdings, Inc Subordinated Debt Issuance of August Notes Chief Executive Officer, Director,and Shareholder USD ($)	Aug. 30, 2013 VTB Holdings, Inc Subordinated Debt Issuance of August Notes Chief Executive Officer, Director,and Shareholder USD ($)	Dec. 31, 2014 VTB Holdings, Inc Subordinated Debt Issuance of January Note Chief Executive Officer, Director,and Shareholder USD ($)	Jan. 15, 2014 VTB Holdings, Inc Subordinated Debt Issuance of January Note Chief Executive Officer, Director,and Shareholder USD ($)
Debt Instrument [Line Items]
Maximum transfer of ownership of eligible trade accounts receivable for cash		£ 5,000,000.0
Receivables sold to third party	5,700,000
Repayment of debt					10,000,000		7,000,000
Interest rate of initial period			10.00%	10.00%
Interest rate of subsequent period			20.00%	20.00%
Debt amount						$ 10,000,000.0		$ 7,000,000

Income Taxes (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Unremitted foreign earnings	$ 0.7
Excess tax benefit from stock-based compensation	0.7
Unrecognized tax benefits that would impact effective tax rate	2.5
Unrecognized tax benefits inclusive of interest and penalties	5.5
Interest and penalties	1.5
Decrease in unrecognized tax benefits that is reasonably possible	2.5
2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	29.4
Domestic Tax Authority \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	12.7
State and Local Jurisdiction \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	$ 12.8

- Definition

Amount of undistributed earnings of foreign subsidiaries intended to be permanently reinvested outside the country of domicile.

+ References+ Details

Schedule of Income Tax Expense (Benefit) (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Federal:
Current	$ 3,271	$ (2,456)	$ 13,660
Deferred	(9,424)	3,574	(1,148)
Total Federal	(6,153)	1,118	12,512
State and Local:
Current	455	54	1,510
Deferred	(347)	190	(120)
Total State and Local	108	244	1,390
Foreign
Current	0	233	436
Deferred	(227)	(505)	(330)
Total Foreign	(227)	(272)	106
Total	$ (6,272)	$ 1,090	$ 14,008

Income Taxes Effective Income Tax Rate Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Effective Income Tax Rate Reconciliation, Percent [Abstract]
U.S. Operations	$ (21,639)	$ (6,026)	$ 39,626
Foreign Operations	(119)	953	842
Earnings (Loss) before income tax expense (benefit)	(21,758)	(5,073)	40,468
Federal statutory rate	35.00%	35.00%	35.00%
Provision for income taxes at federal statutory rate	(7,615)	(1,776)	14,164
State taxes, net of federal benefit	37	158	904
Foreign tax rate differential	151	(282)	(49)
Research credits	(728)	0	0
Gain on bargain purchase	0	0	(804)
Acquisition costs	613	865	0
Interest on Series B Preferred Stock	421	353	0
Prior year adjustment	27	1,177	0
Change in unrecognized tax benefits	875	0	0
Other	(53)	595	(207)
Total	$ (6,272)	$ 1,090	$ 14,008

Income Taxes Deferred Tax Assets and Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Deferred Tax Assets (Liabilities):
Allowance for doubtful accounts	$ 73	$ 82
Inventories	543	757
Employee benefits	3,895	2,777
Net operating loss	11,422	33
Unrecognized tax benefits	3,045	559
Other	677	(41)
Total deferred tax assets	19,655	4,167
Depreciation and amortization	(734)	(1,138)
Intangible assets	(13,511)	(838)
Total deferred tax liabilities	(14,245)	(1,976)
Net deferred tax assets	5,410	2,191
Balance Sheet Classifications:
Deferred tax assets, current	4,930	2,214
Deferred tax assets, non-current	1,128	827
Deferred tax liabilities, non-current	(648)	(850)
Net deferred tax assets	$ 5,410	$ 2,191

Income Taxes Unrecognized Tax Benefits (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefit, beginning of period	$ 1,468	$ 1,468
Additions based on tax positions related to the current year	2,497	0
Gross unrecognized tax benefit, end of period	$ 3,965	$ 1,468

Net Income (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Basic and diluted:
Net income (loss)	$ 2,360	$ (5,638)	$ (9,302)	$ (2,906)	$ 881	$ (1,402)	$ (3,338)	$ (2,304)	$ (15,486)	$ (6,163)	$ 26,460
Noncumulative dividends on Series A Convertible Preferred Stock									0	0	(22,627)
Undistributed earnings allocated to Series A Convertible Preferred Stock									0	0	(2,222)
Net income (loss) attributable to common stockholders									$ (15,486)	$ (6,163)	$ 1,611
Basic:
Weighted-average common shares outstanding, basic (in shares)									39,665	12,700	12,700
Dilutive effect of stock options									0	0	0
Diluted:
Weighted-average common shares outstanding, diluted (in shares)									39,665	12,700	12,700
Net earnings (loss) per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ 0.07	$ (0.11)	$ (0.26)	$ (0.18)	$ (0.39)	$ (0.49)	$ 0.13
Diluted (in dollars per share)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ 0.07	$ (0.11)	$ (0.26)	$ (0.18)	$ (0.39)	$ (0.49)	$ 0.13

Net Income (Loss) Per Share - Antidilutive Securities (Details) In Thousands, unless otherwise specified	12 Months Ended												0 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014 Stock options	Dec. 31, 2013 Stock options	Dec. 31, 2012 Stock options	Dec. 31, 2014 Warrants	Dec. 31, 2013 Warrants	Dec. 31, 2012 Warrants	Dec. 31, 2014 Unvested restricted stock awards	Dec. 31, 2013 Unvested restricted stock awards	Dec. 31, 2012 Unvested restricted stock awards	Jan. 15, 2014 VTB Holdings, Inc Common stock Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Exchange ratio of common stock													0.35997
Antidilutive securities excluded from computation of earnings per share	6,123	3,961	3,961	6,081	3,961	3,961	36	0	0	6	0	0

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References+ Details

Preferred Stock (Details) (USD $)			1 Months Ended	12 Months Ended			1 Months Ended	12 Months Ended			0 Months Ended
Preferred Stock (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2010 Series A Convertible Preferred Stock	Dec. 31, 2014 Series A Convertible Preferred Stock	Dec. 31, 2013 Series A Convertible Preferred Stock	Dec. 31, 2012 Series A Convertible Preferred Stock	Sep. 30, 2010 Series B Redeemable Preferred Stock	Dec. 31, 2014 Series B Redeemable Preferred Stock	Dec. 31, 2013 Series B Redeemable Preferred Stock	Dec. 31, 2012 Series B Redeemable Preferred Stock	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTBH Series A Preferred Stock Converted Into Parametric Common Stock
Class of Stock [Line Items]
Shares issued			48,689,555				1,000,000
Proceeds from issuance of stock			$ 24,300,000
Shares converted											17,526,640
Dividends declared and paid				0	0	22,600,000		0	0	2,000,000
Stock Issued							12,400,000
Redemption price per share (in dollars per share)							$ 12.425371
Annual dividend rate (as a percentage)								8.00%
Interest expense, other								1,200,000	1,000,000	1,000,000
Series B redeemable preferred stock	$ 14,916,000	$ 13,713,000						$ 14,916,000	$ 13,713,000
Shares authorized								1,000,000	1,000,000	1,000,000
Shares Issued								1,000,000	1,000,000	1,000,000
Shares outstanding								1,000,000	1,000,000	1,000,000

Stock-Based Compensation - Shares Available for Grant (Details) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance, beginning of period (in shares)	1,439
VTBH 2011 Plan terminated at Merger (in shares)	(1,439)
Authorized and assumed in Merger (in shares)	2,372
Options granted and assumed in Merger (in shares)	(2,074)
RSAs granted (in shares)	(6)
Forfeited/Expired shares added back	151
Balance, end of period (in shares)	443

Stock-Based Compensation - Stock-based Compensation Expense (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 5,194	$ 2,563	$ 985
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	310	60	60
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	866	343	281
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	846	342	121
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 3,172	$ 1,818	$ 523

Stock-Based Compensation - Stock Option Activity (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares)	3,960,793
Granted (in shares)	2,074,377
Assumed in acquisition (in shares)	1,392,854
Exercised (in shares)	(502,087)
Forfeited (in shares)	(337,840)
Outstanding end of period (in shares)	6,588,097	3,960,793
Vested and expected to vest (in shares)	6,408,076
Exercisable (in shares)	3,215,667
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share)	$ 4.71
Granted (in dollars per share)	$ 10.81
Assumed in acquisition (in dollars per share)	$ 6.02
Exercised (in dollars per share)	$ 3.22
Forfeited (in dollars per share)	$ 6.11
Outstanding end of period (in dollars per share)	$ 6.95	$ 4.71
Vested and expected to vest (in dollars per share)	$ 6.89
Exercisable (in dollars per share)	$ 4.89
Outstanding, weighted average remaining contractual term	6 years 11 months 16 days	8 years 5 months 12 days
Vested and expected to vest, weighted average remaining contractual term	6 years 10 months 21 days
Exercisable, weighted average remaining contractual term	5 years 2 months 19 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, intrinsic value	$ 1,327,366	$ 3,031,094
Vested and expected to vest, intrinsic value	1,327,366
Exercisable, intrinsic value	$ 1,251,874

Stock-Based Compensation - Weighted-Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 18 days	6 years 0 months 18 days	6 years 0 months 18 days
Risk-free interest rate, minimum (as a percentage)	1.80%	1.00%	0.80%
Risk-free interest rate, maximum (as a percentage)	2.00%	1.10%	1.10%
Expected volatility, minimum (as a percentage)	47.50%	50.40%	50.50%
Expected volatility, maximum (as a percentage)	49.80%	50.50%	51.10%
Expected dividend rate	0.00%	0.00%	0.00%

Stock-Based Compensation - RSA Activity (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	6,000
Unvested 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)	0
Granted (in shares)	6,396
Outstanding end of period (in shares)	6,396
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)	$ 0.00
Granted (in dollars per share)	$ 15.63
Outstanding end of period (in dollars per share)	$ 15.63

Stock-Based Compensation (Details Narrative) (USD $)	12 Months Ended						0 Months Ended		12 Months Ended			12 Months Ended		0 Months Ended
Stock-Based Compensation (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2014 Stock options	Jan. 15, 2014 Stock options 2011 Plan	Jan. 15, 2014 Stock options Stock Option Plan 2012	Jan. 15, 2014 Stock options 2013 Plan	Jan. 15, 2014 Stock options 2013 Plan	Dec. 31, 2014 Unvested restricted stock awards	Dec. 31, 2014 Phantom equity 2011 Phantom Equity Appreciation Plan	Dec. 31, 2013 Phantom equity 2011 Phantom Equity Appreciation Plan	Dec. 31, 2014 Non-Executives	Dec. 31, 2014 Executives	Jan. 15, 2014 Common stock VTB Holdings, Inc Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized								2,250,000			1,500,000
Number of additional shares authorized							122,000
Outstanding stock options (in shares)	6,588,097	3,960,793			3,960,783	1,392,854
Award expiration period	10 years
Forfeiture period after ending employment	90 days
Forfeiture rate												10.00%	0.00%
Related income tax benefit	$ 1,900,000	$ 900,000	$ 400,000
Excess tax benefit from stock-based compensation	700,000
Proceeds from exercise of stock options	1,618,000	0	0
Exchange ratio of common stock														0.35997
Options exercised, intrinsic value	4,000,000
Total unrecognized compensation cost related to stock options	12,200,000
Amortization period of unrecognized compensation costs (in years)	4 years			2 years 11 months 1 day					3 years 1 month 1 day
Weighted average grant date fair value of options granted (in dollars per share)	$ 5.27	$ 1.16	$ 1.02
Estimated grant date fair value of options vested	5,500,000	2,800,000	500,000
Total unrecognized compensation cost related to non-vested options									$ 100,000
Shares granted and outstanding (in shares)										807,578	1,255,280
Weighted average exercise price of options granted and outstanding (in dollars per share)										$ 0.88	$ 0.89

Geographical Information - Revenues (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 86,118	$ 38,299	$ 24,520	$ 29,533	$ 186,176	$ 178,470	$ 207,136
Property and equipment, net	6,722				7,369				6,722	7,369	5,732
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									117,715	111,514	136,494
Property and equipment, net	6,612				7,276				6,612	7,276	5,006
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									29,425	26,439	27,100
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									24,082	18,565	19,116
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									14,954	21,952	24,426
Property and equipment, net	$ 110				$ 93				$ 110	$ 93	$ 726

Commitment and Contingencies (Details) (USD $)	12 Months Ended			1 Months Ended	0 Months Ended
Commitment and Contingencies (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Jan. 31, 2015 Subsequent Event sqft	Feb. 18, 2015 Subsequent Event Pending Litigation Bonanno vs. VTBH [Member]	Jan. 15, 2014 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc	Aug. 05, 2013 Merger of VTB Holdings, Inc. and Parametric Sound Corporation VTB Holdings, Inc	Aug. 05, 2013 Merger of VTB Holdings, Inc. and Parametric Sound Corporation Parametric Sound Corporation
Business Acquisition [Line Items]
Ownership percentage						80.00%	80.00%	20.00%
Loss Contingency, Information about Litigation Matters [Abstract]
Loss Contingency, Damages Sought, Value					$ 15,100,000
Leases, Operating [Abstract]
Term of lease (in years)				5 years
Area of leased office space (in square feet)				35,000
Base rent				1,000,000
Annual increase to base rent (as a percentage)				3.00%
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2015	1,146,000
2016	859,000
2017	802,000
2018	733,000
2019	585,000
Thereafter	184,000
Total	4,309,000
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	139,000	165,000	109,000
Warranty costs accrued	850,000	614,000	618,000
Settlements of warranty claims	(496,000)	(640,000)	(562,000)
Warranty, end of period	$ 493,000	$ 139,000	$ 165,000

Selected Quarterly Financial Data - Unaudited (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Quarterly Financial Information Disclosure [Abstract]
Net Revenue	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 86,118	$ 38,299	$ 24,520	$ 29,533	$ 186,176	$ 178,470	$ 207,136
Gross Margin	25,811	7,749	4,831	12,276	26,736	8,646	6,322	8,625	50,667	50,329	74,341
Net income (loss)	$ 2,360	$ (5,638)	$ (9,302)	$ (2,906)	$ 881	$ (1,402)	$ (3,338)	$ (2,304)	$ (15,486)	$ (6,163)	$ 26,460
Earnings (Loss) Per Share
Basic (in dollars per share)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ 0.07	$ (0.11)	$ (0.26)	$ (0.18)	$ (0.39)	$ (0.49)	$ 0.13
Diluted (in dollars per share)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ 0.07	$ (0.11)	$ (0.26)	$ (0.18)	$ (0.39)	$ (0.49)	$ 0.13
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common stock shares issued	42,027,991				12,700,460				42,027,991	12,700,460
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Previously Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Common stock shares issued					35,282,286					35,282,286

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References+ Details

Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical) (USD $)	12 Months Ended
	Dec. 31, 2012
Cash dividends paid (in dollars per share)	$ 0.46

Property and Equipment, Net (Details)	12 Months Ended
Property and Equipment, Net (Details)	Dec. 31, 2014
Machinery and equipment
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Software and software development \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Software and software development \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	3 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Tooling
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful life	5 years
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years

Weighted Average Grant Date Fair Value Per Share

Nonvested restricted stock at December 31, 2013

Nonvested restricted stock at December 31, 2014