Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Feb. 29, 2016	Jun. 30, 2015
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	Smaller Reporting Company
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		49,229,502
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 28,386,531

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 7,114	$ 7,908
Accounts receivable, less allowances for $13,829 and $9,806 in 2015 and 2014, respectively	57,192	61,059
Inventories	26,146	38,400
Deferred income taxes	0	4,930
Prepaid income taxes	260	1,482
Prepaid expenses and other current assets	4,191	3,818
Total Current Assets	94,903	117,597
Property and equipment, net	6,859	6,722
Goodwill	31,152	80,974
Intangible assets, net	37,956	39,726
Deferred income taxes	0	1,128
Other assets	2,981	821
Total Assets	173,851	246,968
Current Liabilities:
Revolving credit facilities	32,453	36,863
Term loans	4,814	1,923
Accounts payable	17,680	35,546
Other current liabilities	14,236	14,525
Total Current Liabilities	69,183	88,857
Term loans, long-term portion	13,565	5,769
Series B redeemable preferred stock	16,145	14,916
Deferred income taxes	4	648
Subordinated notes - related party	15,365	0
Other liabilities	2,937	5,592
Total Liabilities	$ 117,199	$ 115,782
Commitments and Contingencies
Stockholders' Equity
Common stock, $0.001 par value - 100,000,000 and 50,000,000 shares authorized; 42,529,502 and 42,027,991 shares issued and outstanding as of December 31, 2015 and 2014, respectively	$ 43	$ 42
Additional paid-in capital	136,693	128,084
Retained earnings (accumulated deficit)	(79,618)	3,289
Accumulated other comprehensive loss	(466)	(229)
Total Stockholders' Equity	56,652	131,186
Total Liabilities and Stockholders' Equity	$ 173,851	$ 246,968

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current Assets:
Allowances and discounts	$ 13,829	$ 9,806
Stockholders' Equity
Common stock par value (in dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized	100,000,000	50,000,000
Common stock shares issued	42,529,502	42,027,991
Common stock shares outstanding	42,529,502	42,027,991

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Net Revenue	$ 162,747	$ 186,176	$ 178,470
Cost of Revenue	122,056	135,509	128,141
Gross Profit	40,691	50,667	50,329
Operating expenses:
Selling and marketing	31,829	33,442	31,645
Research and development	11,556	9,400	4,873
General and administrative	21,484	17,159	8,349
Goodwill impairment	49,822	0	0
Restructuring charges	399	747	0
Business transaction costs	0	3,744	3,864
Total operating expenses	115,090	64,492	48,731
Operating income (loss)	(74,399)	(13,825)	1,598
Interest expense	5,099	7,209	6,626
Other non-operating expense, net	1,016	724	45
Loss before income tax expense (benefit)	(80,514)	(21,758)	(5,073)
Income tax expense (benefit)	2,393	(6,272)	1,090
Net loss	$ (82,907)	$ (15,486)	$ (6,163)
Net loss per share :
Basic (in dollars per share)	$ (1.96)	$ (0.39)	$ (0.49)
Diluted (in dollars per share)	$ (1.96)	$ (0.39)	$ (0.49)
Weighted average number of shares:
Basic (in shares)	42,269	39,665	12,700
Diluted (in shares)	42,269	39,665	12,700

Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (82,907)	$ (15,486)	$ (6,163)
Foreign currency translation adjustment	(237)	(334)	184
Other comprehensive income (loss)	(237)	(334)	184
Comprehensive loss	$ (83,144)	$ (15,820)	$ (5,979)

- 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	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (82,907)	$ (15,486)	$ (6,163)
Adjustments to reconcile net loss to net cash provided by (used for) operating activities:
Depreciation and amortization	5,901	5,800	4,422
Amortization of intangible assets	2,015	1,066	923
Amortization of deferred financing costs	360	2,621	1,556
Stock-based compensation	5,897	5,194	2,563
Accrued interest on Series B redeemable preferred stock	1,230	1,203	1,010
Paid in kind interest	947	1,138	342
Deferred income taxes	5,414	(9,998)	3,353
Provision for (Reversal of) sales returns reserve	2,113	(2,111)	(1,482)
Provision for (Reversal of) doubtful accounts	2	37	(235)
Provision for obsolete inventory	1,107	532	93
Loss on disposal of property and equipment	76	9	108
Loss on impairment of assets	49,822	0	0
Changes in operating assets and liabilities:
Accounts receivable	1,752	(10,396)	18,761
Inventories	11,147	11,363	(9,030)
Accounts payable	(17,287)	(10,552)	19,946
Due to shareholders	0	(3,125)	(3,125)
Prepaid expenses and other assets	(712)	(212)	(1,778)
Income taxes payable	(1,700)	4,704	(9,780)
Other liabilities	(310)	3,379	(3,194)
Net cash provided by (used for) operating activities	(15,133)	(14,834)	18,290
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(6,693)	(3,536)	(6,167)
Cash acquired in business combinations	0	4,093	0
Net cash provided by (used for) investing activities	(6,693)	557	(6,167)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	217,644	157,982	51,250
Repayment of revolving credit facilities	(222,054)	(160,855)	(44,514)
Repayment of capital leases	(40)	(34)	0
Borrowings on term loan	15,110	7,692	0
Repayment of term loan	(4,423)	(14,500)	(26,750)
Repayment of subordinated notes	0	(18,481)	0
Proceeds from sale of common stock, net of issuance costs	0	37,230	0
Proceeds from exercise of stock options	731	1,618	0
Debt financing costs	(2,134)	(1,683)	(1,003)
Proceeds from issuance of subordinated notes	16,300	7,000	10,000
Net cash provided by (used for) financing activities	21,134	15,969	(11,017)
Effect of exchange rate changes on cash and cash equivalents	(102)	(293)	184
Net increase (decrease) in cash and cash equivalents	(794)	1,399	1,290
Cash and cash equivalents, beginning of period	7,908	6,509	5,219
Cash and cash equivalents, end of period	7,114	7,908	6,509
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	1,731	3,209	3,694
Cash paid for income taxes	16	554	8,224
Accrual for purchases of property and equipment	841	1,420	1,104
Value of shares issued to acquire HyperSound business	0	113,782	0
Conversion of Series A Preferred Stock	0	24,345	0
Issuance of warrants	$ 1,983	$ 0	$ 0

Consolidated Statement of Convertible Preferred Stock and Stockholders' Equity (Deficit) Statement - USD ($) $ in Thousands	Total	Series A Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance, shares at Dec. 31, 2012		48,690,000	12,700,000
Beginning balance at Dec. 31, 2012	$ (31,722)	$ 24,345	$ 13	$ (56,594)	$ 24,938	$ (79)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,163)				(6,163)
Other comprehensive income (loss)	184					184
Issuance of warrants	0
Stock-based compensation	2,563			2,563
Ending balance, shares at Dec. 31, 2013		48,690,000	12,700,000
Ending balance at Dec. 31, 2013	(35,138)	$ 24,345	$ 13	(54,031)	18,775	105
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(15,486)				(15,486)
Other comprehensive income (loss)	(334)					(334)
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 Series A Preferred	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, shares			502,000
Stock options exercised	1,593			1,593
Issuance of warrants	0
Stock-based compensation	5,194			5,194
Ending balance, shares at Dec. 31, 2014		0	42,028,000
Ending balance at Dec. 31, 2014	131,186	$ 0	$ 42	128,084	3,289	(229)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(82,907)				(82,907)
Other comprehensive income (loss)	$ (237)					(237)
Stock options exercised, shares	501,511		502,000
Stock options exercised	$ 730		$ 1	729
Issuance of warrants	1,983			1,983
Stock-based compensation	5,897			5,897
Ending balance, shares at Dec. 31, 2015		0	42,530,000
Ending balance at Dec. 31, 2015	$ 56,652	$ 0	$ 43	$ 136,693	$ (79,618)	$ (466)

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Significant Accounting Policies

Organization

Turtle Beach Corporation (“Turtle Beach” or the “Company”), headquartered in San Diego, California and incorporated in the state of Nevada in 2010, is a premier audio technology company with expertise and experience in developing, commercializing and marketing innovative products across a range of large addressable markets under the Turtle Beach® and HyperSound® brands. Turtle Beach is a worldwide leading provider of feature-rich headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices. HyperSound technology is an innovative patent-protected sound technology that delivers immersive, directional audio offering unique potential benefits in a variety of commercial settings and consumer devices, including improved clarity and comprehension for listeners with hearing loss.

VTB Holdings, Inc. (“VTBH”), the parent holding company of the historical business of the headset business, was incorporated in the state of Delaware in 2010 with operations principally located in Valhalla, New York. Voyetra Turtle Beach, Inc. (“VTB”) 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”).

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.

On January 15, 2014 the Company completed the merger (the “Merger”) with VTB Holdings, Inc. which was treated as a “reverse acquisition” with VTBH considered the accounting acquirer and surviving entity, as a wholly-owned subsidiary of the Company (f/k/a Parametric Sound Corporation), a publicly-traded company. Accordingly, VTBH's historical results of operations on a stand-alone basis replace Parametric’s historical results of operations for all periods on or prior to January 15, 2014, and for all periods following the Merger, the results of operations of both companies have been included.

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.

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, stock warrants 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.		Sales commissions, 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 $5.0 million, $4.8 million and $7.7 million for the years ended December 31, 2015, 2014 and 2013.

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 $3.6 million, $6.4 million and $4.3 million for the years ended December 31, 2015, 2014 and 2013.

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, stock warrants and contingently issuable securities if the effect is dilutive, in accordance with the treasury stock method.

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

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) using the first in, first out (“FIFO”) method. 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		Term of lease or economic life of asset, 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 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 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 as of November 1, 2015, and due to a shortfall in planned revenue in the fourth quarter of 2015, elected to bypass the qualitative analysis step and perform the Step 1 analysis. Step 1 of the goodwill impairment test was performed with the assistance of an independent valuation specialist using the discounted cash flow method. Based on this analysis, it was determined that the Company’s net book value exceeded its fair value thereby necessitating the performance of Step 2 of the goodwill impairment test. As a result, the Company recorded a $49.8 million goodwill impairment charge, which resulted in a $31.2 million remaining carrying value as of December 31, 2015. The goodwill impairment can be attributed to planned revenues reflective of certain operational decisions, including a slower roll-out to ensure customer satisfaction, an increase to the risk factor that is included in the discount rate used to calculate the discounted cash flows and continued deterioration of the stock price. Prior to completing the goodwill impairment test, the Company tested the recoverability of the HyperSound long-lived assets (other than goodwill) and concluded that such assets were not impaired.

Management's forecasts of planned revenue are largely dependent on the market acceptance and continued channel expansion of the Company's recently launched HyperSound Clear 500P product to generate the projected revenue in subsequent years. If the performance of the Company's HyperSound Clear 500P product in the hearing healthcare market does not meet expectations based on initial market data, a future impairment charge could result for a portion or all of the remaining goodwill. 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.

During 2015, as a result of cumulative losses in recent years primarily due to incremental costs associated with the console transition, acquisition costs and initial investments in the HyperSound business, the Company concluded that a full valuation allowance is required on its net deferred tax assets. 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, 2015 and 2014.

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 47% of our gross sales in the aggregate for the year ended December 31, 2015, or individually 18%, 15% and 14%, compared to 15%, 15% and 15% in 2014 and 16%, 15% and 14% in 2013. In addition, two customers accounted for 19% and 24% of accounts receivable as of December 31, 2015 and, 23% and 20% for December 31, 2014.

Concentrations of credit risk with respect to accounts receivable are mitigated due 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, 2015 and 2014 were $0.2 million and $2.5 million, respectively.

Segment Information

In 2014, following the merger, the Company aggregated its two operating segments - Voyetra Turtle Beach (“Headset”) and HyperSound. In light of the subsequent development and launch of the HyperSound Clear 500P product, the Company evaluated whether its operating segments should continue to be aggregated for reporting purposes and determined that as a result of the new hearing healthcare product, the HyperSound operating segment will no longer have similar economic characteristics, production processes, clients or methods of distribution. As such, the Company has disclosed the Headset and HyperSound operating segments separately. The entire business is managed by a single management team whose Chief Operating Decision Maker is the Chief Executive Officer.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. On July 9, 2015, the FASB agreed to a one-year deferral of the effective date to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods, but will permit public business entities to adopt the standard as of the original effective date (annual reporting periods beginning after December 15, 2016). The Company is currently evaluating the impact, if any, this new standard will have on its consolidated financial statements and has not yet determined the method of adoption.

In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-15 further clarified that debt issuance costs related to line-of-credit arrangements may continue to be presented as an asset and amortized ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The amendment is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those annual periods with early adoption permitted. The adoption of this guidance is not expected to have a material impact on the Company's financial condition or results of operations.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which states that inventory should be measured at the lower of cost and “net realizable value.” Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis.

The amendment is effective for interim and annual periods beginning after December 15, 2016. Early application is permitted and should be applied prospectively. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption will have on the Company's financial position or results of operations.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement to restate prior period financial statements for measurement period adjustments related to business acquisitions. The new guidance requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. In addition, ASU 2015-16 requires that companies present separately on the face of the income statement, or disclose in the notes, the portion of the adjustment recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment had been recognized as of the acquisition date. The new standard is effective for periods beginning after December 15, 2015 and should be applied prospectively to measurement period adjustments that occur after the effective date. Early adoption is permitted. Upon adoption, we will apply the new standard to measurement period adjustments related to business acquisitions.

In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes. ASU 2015-17 provides presentation requirements to classify deferred tax assets and liabilities as noncurrent in a classified statement of financial position. The standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company early adopted ASU 2015-17, as permitted for any interim and annual financial statements that have not yet been issued, effective December 31, 2015, prospectively. Accordingly, the deferred tax assets for the year ended December 31, 2014 were not retrospectively adjusted for this new standard.

In February 2016, the FASB issued ASU 2016-02, Leases, which amends various aspects of existing guidance for leases and requires an entity to recognize assets and liabilities arising from a lease for both financing and operating leases, along with additional qualitative and quantitative disclosures. The primary difference between previous guidance is the recognition of lease assets and lease liabilities by lessees on the balance sheet for those leases classified as operating leases. As a result, the Company will have to recognize a liability representing its lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. The new standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. Management is evaluating the provisions of this statement, including which period to adopt, and has not determined what impact the adoption will have on the Company's financial position or results of operations.

Business Combinations

12 Months Ended

Dec. 31, 2015

Business Combinations [Abstract]

Business Combinations

Merger with Parametric Sound

On January 15, 2014, the Company completed the Merger with and into VTBH, pursuant to which VTBH became a wholly-owned subsidiary of the Company (f/k/a Parametric), in an all-stock, tax-free reorganization. VTBH entered into the Merger to acquire and commercialize certain technology and gain access to capital market opportunities as a public company.

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's 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 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, respectively, with the amortization being included within sales and marketing expense.

During the year-ended December 31, 2015, the purchased in-process technology for research projects, primarily related to directed audio solutions that beam sound to a specific listening area without the ambient noise of traditional speakers, reached technological feasibility and was reclassified as an amortizable finite-lived asset and is being amortized over an estimated useful life of approximately eight years with the amortization being included within cost of revenue.

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.

- 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).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1500-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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-URI http://asc.fasb.org/extlink&oid=56956515&loc=d3e1524-128463

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=56956791&loc=d3e4926-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Fair Value Measurement

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Measurement

The Company follows a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:


•	Level 1 — Quoted prices in active markets for identical assets or liabilities.


•	Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data.


•	Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

Financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, and debt instruments. As of December 31, 2015 and 2014, the Company has not elected the fair value option for any financial assets and liabilities for which such an election would have been permitted, and there were no outstanding financial assets and liabilities recorded at fair value on a recurring basis.

The following is a summary of the carrying amounts and estimated fair values of our financial instruments at December 31, 2015 and 2014:



	December 31, 2015				December 31, 2014
	Reported		Fair Value		Reported		Fair Value
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents	$	7,114	$	7,114	$	7,908	$	7,908
Credit Facility	32,453		32,453		36,863		36,863
Term Loans	18,379		18,179		7,692		7,692
Subordinated Debt	17,247		15,892		—		—

Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The Credit Facility and Term Loan Due 2018 carrying value equals fair value as the stated interest rate approximates market rates currently available to the Company, which are considered Level 2 inputs. The fair values of our Term Loan Due 2019 and Subordinated Debt are based upon an estimated market value calculation that factors principal, time to maturity, interest rate and current cost of debt, which is considered a Level 3 input.

- 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, 2015

Condensed Consolidated Balance Sheet Components [Abstract]

Composition of Certain Financial Statement Items

Inventories

Inventories, net consist of the following:



	December 31, 2015		December 31, 2014
	(in thousands)
Raw materials	$	1,481	$	2,065
Finished goods	24,665		36,335
Total inventories	$	26,146	$	38,400

Property and Equipment, net

Property and equipment, net consists of the following:



	December 31, 2015			December 31, 2014
	(in thousands)
Machinery and equipment	$	1,238		$	599
Software and software development	1,022			847
Furniture and fixtures	284			226
Tooling	3,395			2,417
Leasehold improvements	1,255			104
Demonstration units and convention booths	16,531			13,702
Total property and equipment, gross	23,725			17,895
Less: accumulated depreciation and amortization	(16,866		)	(11,173		)
Total property and equipment, net	$	6,859		$	6,722

Depreciation and amortization expense on property and equipment, for the years ended December 31, 2015, 2014 and 2013 was $5.9 million, $5.8 million and $4.4 million, respectively.

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

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, 2015 are as follows:



	(in thousands)
Balance as of January 1, 2015	$	80,974

Impairment Charge (HyperSound)	49,822
Balance as of December 31, 2015	$	31,152

Acquired Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2015 and December 31, 2014 consist of:



	December 31, 2015
	Gross Carrying Value			Accumulated Amortization			Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	3,213		2,583
Non-compete agreements	177			177			—
In-process Research and Development	27,100			1,018			26,082
Developed technology	8,880			225			8,655
Trade names	170			67			103
Patent and trademarks	730			37			693
Foreign Currency	(463		)	(303		)	(160		)
Total Intangible Assets	$	42,390		$	4,434		$	37,956



	December 31, 2014
	Gross Carrying Value			Accumulated Amortization			Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	2,458		3,338
Non-compete agreements	177			177			—
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
Foreign Currency	$	(205	)	$	(141	)	$	(64	)
Total Intangible Assets	$	42,357		$	2,631		$	39,726

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 was not amortized but rather subjected to impairment review.

Amortization expense related to definite lived intangible assets of $2.0 million, $1.1 million and $0.9 million for the years ended December 31, 2015, 2014 and 2013, respectively.

As of December 31, 2015, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2016	$	8,402
2017	6,523
2018	6,021
2019	5,597
2020	1,348
Thereafter	10,225
Total	$	38,116

- 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, 2015

Debt Disclosure [Abstract]

Credit Facilities and Long-Term Debt



	December 31, 2015			December 31, 2014
	(in thousands)
Revolving credit facility, maturing March 2019	$	32,453		$	36,863
Term loans	18,379			7,692
Subordinated notes	15,365			—
Total outstanding debt	66,197			44,555
Less: current portion of revolving line of credit	(32,453		)	(36,863		)
Less: current portion of term loan	(4,814		)	(1,923		)
Total noncurrent portion of long-term debt	$	28,930		$	5,769

Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $3.5 million, $6.0 million and $5.6 million for the years ended December 31, 2015, 2014 and 2013, respectively.

Amortization of deferred financing costs was $0.4 million, $2.6 million and $1.6 million for the years ended December 31, 2015, 2014 and 2013, 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. In connection with the Term Loan Due 2019 and Amended Notes, the Company incurred $4.1 million of financing costs, including $2.0 million related to the fair value of the warrants issued recorded as debt discount, which has been deferred and will be recognized over the term of the respective agreements.

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

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, 2015, interest rates for outstanding borrowings were 5.00% for base rate loans and 2.92% 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.

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”).

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.

On July 22, 2015, in connection with the Term Loan Due 2019 (as defined below), the Company and its subsidiaries entered into a fifth amendment (the ‘Fifth Amendment”) to the Credit Facility that modified the borrowing base pursuant to which availability of loans under the Credit Facility is determined, provided for additional mandatory prepayment events and modified certain covenants, including to permit the Company to enter into the term loan. In addition, the Fifth Amendment permits certain equity holders of the Company to contribute funds to the Company to cure financial covenant defaults.

The Company determined that it would not meet the existing minimum EBITDA covenants under the Term Loan Due 2019 for September 30, 2015. Based on this determination, the Company began discussions in September 2015 with its lenders and secured an amendment dated November 2, 2015 (see below) to the Term Loan Due 2019 and the Credit Facility to suspend testing of the existing EBITDA covenants and to add certain amended covenants for the period from September 2015 through November 2015.

On November 2, 2015, the Company entered into a sixth amendment to the Credit Facility that modified certain provisions to provide (i) that the Company will make certain periodic reports with respect to certain financial metrics, (ii) that the existing financial covenants are suspended and replaced by amended EBITDA levels during the months ended September 30, 2015 through the month ending November 30, 2015, and (iii) that the loan availability is decreased by an additional block.

On December 1, 2015, in connection with the sixth amendment, the Company further amended certain provisions of the Credit Facility to, among other things, provide that, prior to January 29, 2016, the Company raise additional equity capital or third lien debt financing and apply such proceeds against the outstanding principal balance of the Credit Facility and amend the definition of EBITDA to exclude certain non-recurring expenses and replace certain financial covenants by amended EBITDA levels each month beginning with the month ended December 31, 2015 through (and including) the month ending March 31, 2017 (with revised financial covenants to be agreed based on new financial projections after such date) on both an overall and segment-by-segment basis.

On February 1, 2016, the Company further amended certain provisions of the Credit Facility to, among other things, provide that, on or prior to February 5, 2016, the Company receive net proceeds of not less than $6.0 million of additional equity capital or additional third lien debt financing and apply such proceeds against the outstanding principal balance of the working capital line of credit, amend the definition of EBITDA to exclude certain non-recurring expenses and replace certain financial covenants by amended EBITDA levels. The Company satisfied its paydown obligation with the proceeds from the recent offering and private placement. Refer to Note 15, “Equity Offering” for further details.

As of December 31, 2015, the Company was in compliance with all the amended financial covenants, and excess borrowing availability was approximately $3.8 million, net of the outstanding Term Loan Due 2018 (as defined below) that is considered to be an additional outstanding amount under the Credit Facility.

Term Loans

Term Loan Due 2018

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.

Term Loan Due 2019

On July 22, 2015, the Company and its subsidiaries, entered into a term loan, guaranty and security agreement (the “Term Loan Due 2019”) with Crystal Financial LLC, as agent, sole lead arranger and sole bookrunner, Crystal Financial SPV LLC and the other persons party thereto (“Crystal”), which provides for an aggregate term loan commitment of $15 million that bears interest at a rate per annum equal to the 90-day LIBOR rate plus 10.25%. Under the terms of the Term Loan Due 2019, the Company is required to make payments of interest in arrears on the first day of each month beginning August 1, 2015 and will repay the principal in monthly payments beginning January 1, 2016, with a final payment on June 28, 2019, the maturity date.

The Term Loan Due 2019 is secured by a security interest in substantially all of the Company and each of its subsidiaries' working capital assets and is subject to the first-priority lien of Bank of America , N.A., as agent, under the Credit Facility, other than with respect to equipment, fixtures, real property interests, intellectual property, intercompany property, intercompany indebtedness, equity interest in their subsidiaries, and certain other assets specified in an inter-creditor agreement between Bank of America and Crystal.

The Company and its subsidiaries are required to comply with various customary covenants including, (i) maintaining minimum EBITDA and Headset EBITDA (each as defined in the Term Loan Due 2019) in each trailing twelve month period beginning August 31, 2015, (ii) maintaining a Consolidated Leverage Ratio (as defined in the Term Loan Due 2019) to be measured on the last day of each month while the term loans are outstanding of no more than 5.75:1 beginning December 31, 2015 with periodic step-downs to 3.00:1 on January 31, 2017, (iii) not making capital expenditures in excess of $11 million in the year ending December 31, 2015 and in excess of $7 million in each of the years ending December 31, 2016, 2017, 2018 and 2019, (iv) restrictions on the Company’s and its subsidiaries ability to prepay its subordinated notes, pay dividends, incur debt, create or suffer liens and engage in certain fundamental transactions and (v) an obligation to provide certain financial and other information. The agreement permits certain equity holders of the Company to contribute funds to the Company to cure certain financial covenant defaults.

The Term Loan Due 2019 contains customary representations, mandatory prepayment events and events of default, including defaults triggered by the failure to make payments when due, breaches of covenants and representations, material impairment in the perfection of Crystal’s security interest in the collateral and events related to bankruptcy and insolvency of the Company and its subsidiaries. Upon an event of default, Crystal may declare all outstanding obligations immediately due and payable (along with a prepayment fee), a default rate of an additional 2.0% may be applied to amounts outstanding and may take other actions including collecting or taking such other action with respect to the collateral pledged in connection with the term loan.

On November 2, 2015, the Company entered into an amendment to the Term Loan Due 2019 to, among other things, provide (i) that upon receipt all the proceeds from the future issuance of subordinated notes will immediately be used to prepay outstanding principal in an amount equal to $2.5 million, (ii) that the Company will make certain periodic reports with respect to certain financial metrics, (iii) that the existing financial covenants are suspended and replaced by amended EBITDA levels during the months ended September 30, 2015 through the month ending November 30, 2015.

On December 1, 2015, in connection with the first amendment, the Company further amended certain provisions of the Term Loan Due 2019 to, among other things, (i) that, prior to January 29, 2016, the Company raise additional equity capital or third lien debt financing and apply such proceeds against the outstanding principal balance of the Credit Facility, (ii) replace certain financial covenants by amended EBITDA levels each month beginning with the month ended December 31, 2015 through the termination date of the agreement on both an overall and segment-by-segment basis, (iii) that the testing of the consolidated leverage ratio covenants would be suspended through April 2017 and (iv) that the existing loan availability block remain in place.

On February 1, 2016, the Company entered into a third amendment to amend certain provisions to, among other things, provide that net proceeds from additional equity capital or additional third lien debt financing are applied against the outstanding principal balance of the working capital line of credit, amend the definition of EBITDA to exclude certain non-recurring expenses and replace certain financial covenants by amended EBITDA levels each month beginning with the month ended December 31, 2015 and on a trailing twelve-month period basis beginning with the period ending October 31, 2016, through the termination date on both an overall and segment-by-segment basis.

Subordination Agreement

On November 16, 2015, as a condition precedent to the Company's lenders permitting us to enter into certain subordinated notes, the Company entered into a subordination agreement with and between Bank of America and Crystal, pursuant to which the parties agreed that the Company's obligations under any such notes would be subordinate in right of payment to the payment in full of all the Company’s obligations under the Credit Facility and Term Loan Due 2019.

Subordinated Notes - Related Party

On April 23, 2015, the Company issued a $5.0 million subordinated note (the “April Note”) to SG VTB Holdings, LLC, the Company’s largest stockholder (“SG VTB”). The April Note was issued with an interest 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 note quarterly.

On May 13, 2015, the Company issued subordinated notes (the “May Notes”) with an aggregate principal amount of $3.8 million to SG VTB, and a trust affiliated with Ronald Doornink, the Chairman of the Company's board of directors (the “Board”). The May Notes were issued with an interest rate of 10% per annum until the maturity date of the May Notes (which was August 13, 2015 but could be extended up to two additional 90 day periods upon the written agreement of the Company and the noteholder), with interest accruing and being added to the principal amount of the May Notes quarterly. Following the maturity date, the interest rate would have increased to 20% per annum.

On June 17, 2015, the Company issued a subordinated note (the “June Note”) with an aggregate principal amount of $3.0 million to SG VTB. The June Note was issued at an interest rate of 10% per annum until the maturity date of the June Note (which was September 17, 2015 but could be extended up to two additional 90 day periods upon the written agreement of the Company and the noteholder), with interest accruing and being added to the principal amount of the June Note quarterly. Following the maturity date, the interest rate would have increased to 20% per annum. In addition, the Company had the option to request that SG VTB make, in SG VTB’s sole discretion, additional advances from time to time up to an aggregate principal amount of $15.0 million. Prior to the amendment (see below), after an additional advance of $6.0 million on July 8, 2015, $9.0 million was outstanding under the June Note.

Concurrently with the completion of the Term Loan Due 2019, the Company amended and restated each of its outstanding subordinated notes (the “Amended Notes”). The obligations of the Company under the Amended Notes is subordinate and junior to the prior payment of amounts due under the Credit Facility and Term Loan Due 2019. In addition, the stated maturity date of the Amended Notes was extended to September 29, 2019, subject to acceleration in certain circumstances, such as a change of control in the Company. The Amended Notes bear interest at a rate per annum equal to LIBOR plus 10.5% and shall be paid-in-kind by adding the amount to the principal amount due. Further, as consideration for the concessions in the Amended Notes, the Company issued warrants to purchase 1.7 million of the Company’s common stock at an exercise price of $2.54 per share.

On November 16, 2015, the Company issued a $2.5 million subordinated note (the “November Note”) to SG VTB, the proceeds of which, as set forth in the amendment to the Term Loan Due 2019, were applied against the outstanding balance of the Term Loan Due 2019. The November Note will bear interest at a rate of 15% per annum until its maturity date, which is September 29, 2019, and is subordinated to all senior debt of the Company.

In consideration of the credit extended under the November Note, the Company entered into a Third Lien Continuing Guaranty, (as amended, the “Third Lien Guaranty”), under which they guarantee and promise to pay to Stripes, any and all obligations of the Company under the November Note. To secure our obligations under the November Note and the Third Lien Guaranty, the Company entered into a Third Lien Security Agreement, dated as of November 16, 2015, pursuant to which Stripes was granted a security interest upon all property of the VTB and VTBH until the payment in full of the Subordinated Note or the release of the guarantee or collateral, as applicable.

SG VTB is an affiliate of Stripes Group LLC (“Stripes”), a private equity firm focused on internet, software, healthcare IT and branded consumer products businesses. Kenneth A. Fox, one of our directors, is the managing general partner of Stripes and the sole manager of SG VTB and Ronald Doornink, our Chairman of the Board, is an operating partner of Stripes.

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Taxes

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



	Year Ended
	December 31,
	2015			2014			2013
	(in thousands)
Federal:
Current	$	(3,218	)	$	3,271		$	(2,456	)
Deferred	5,153			(9,424		)	3,574
Total Federal	1,935			(6,153		)	1,118
State and Local:
Current	197			455			54
Deferred	663			(347		)	190
Total State and Local	860			108			244
Foreign
Current	—			—			233
Deferred	(402		)	(227		)	(505		)
Total Foreign	(402		)	(227		)	(272		)
Total	$	2,393		$	(6,272	)	$	1,090

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,
	2015			2014			2013
	(in thousands)
U.S. Operations	$	(78,643	)	$	(21,639	)	$	(6,026	)
Foreign Operations	(1,871		)	(119		)	953
Income (loss) before income taxes	(80,514		)	(21,758		)	(5,073		)
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(28,180		)	(7,615		)	(1,776		)
State taxes, net of federal benefit	805			37			158
Foreign tax rate differential	253			151			(282		)
Research credits	—			(728		)	—
Change in valuation allowance	8,528			—			—
Impairment charge	17,438			—			—
Acquisition costs	—			613			865
Stock compensation	3,384			—			—
Interest on Series B Preferred Stock	430			421			353
Prior year adjustment	518			27			1,177
Change in unrecognized tax benefits	(1,024		)	875			—
Other	241			(53		)	595
Provision (benefit) for income taxes	$	2,393		$	(6,272	)	$	1,090

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, 2015 amounted to approximately $0.4 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, 2015			December 31, 2014
	(in thousands)
Deferred Tax Assets:
Allowance for doubtful accounts	$	38		$	73
Inventories	914			543
Employee benefits	2,360			3,895
Net operating loss	16,992			11,422
Unrecognized tax benefits	623			3,045
Other	1,672			677
	22,599			19,655
Valuation allowance	(9,366		)	—
Total deferred tax assets	13,233			19,655

Deferred Tax Liabilities:
Depreciation and amortization	(151		)	(734		)
Intangible assets	(13,086		)	(13,511		)
Total deferred tax liabilities	(13,237		)	(14,245		)
Net deferred tax assets (liabilities)	$	(4	)	$	5,410

At December 31, 2015, the Company has $44.6 million of net operating loss carryforwards and $20.6 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 can be fully utilized in future years if there is sufficient taxable income in such carryforward period.

The realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences are deductible. During 2015, as a result of cumulative losses in recent years primarily due to incremental costs associated with the console transition, acquisition costs and initial investments in the HyperSound business, the Company concluded that a full valuation allowance is required on its net deferred tax assets.

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.

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



	December 31, 2015			December 31, 2014
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	3,965		$	1,468
Additions based on tax positions related to the current year	—			2,497
Decreases based on tax positions in a prior period	(2,497		)	—
Gross unrecognized tax benefit, end of period	$	1,468		$	3,965

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 $1.5 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 $2.2 million, inclusive of $0.7 million of interest and penalties.

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



	Open Years
U.S. Federal	2012 - 2014
California	2011 - 2014
New Jersey	2011 - 2014
New York	2012 - 2014
Pennsylvania	2012 - 2014
Texas	2011 - 2014
United Kingdom	2012 - 2014

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2015
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. 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, 2015, 2014, and 2013, the Company recognized $1.2 million, $1.2 million and $1.0 million, respectively, of interest expense on the Preferred Stock. The redemption value was $16.1 million and $14.9 million as of December 31, 2015 and 2014, 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, 2015, 2014 and 2013. As of December 31, 2015, 2014, and 2013, 1,000,000 shares of Series B redeemable preferred stock are authorized, issued and outstanding.

Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2015

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,
	2015			2014			2013
	(in thousands, expect per-share data)
Net loss	$	(82,907	)	$	(15,486	)	$	(6,163	)

Weighted average common shares outstanding — Basic	42,269			39,665			12,700
Plus incremental shares from assumed conversions:
Dilutive effect of stock options, warrants, unvested awards	—			—			—
Weighted average common shares outstanding — Diluted	42,269			39,665			12,700

Net loss per share :
Basic	$	(1.96	)	$	(0.39	)	$	(0.49	)
Diluted	$	(1.96	)	$	(0.39	)	$	(0.49	)

As described in Note 1, historical weighted-average shares amounts reflect the application of a 0.35997 conversion ratio to historical VTBH shares 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,
	2015	2014	2013
	(in thousands)
Stock options	6,260	6,081	3,961
Warrants	954	36	—
Unvested restricted stock awards	54	6	—
Total	7,268	6,123	3,961

Stock-Based Compensation

12 Months Ended

Dec. 31, 2015

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

Stock-Based Compensation

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. 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.

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 vested stock options and any restricted stock still subject to restrictions are generally forfeited if they are not exercised within 90 days.

In April 2015, the Company commenced an exchange offer (the “Exchange Offer”) to allow employees, executive officers and certain consultants the opportunity to voluntarily exchange their eligible stock options having an exercise price per share equal to or greater than $5.00 for replacement options having a market value exercise price and covering a smaller number of shares. Each Replacement Option has a term equal to the remaining contractual term of the corresponding eligible stock option it replaced, and (i) with respect to the portion of the eligible stock option that had vested, a proportionate amount of the replacement option vested upon the issuance thereof and (ii) with respect to the portion of the eligible stock option that had not vested, the period over which such portion was scheduled to vest in equal installments was extended by six months.

Pursuant to the Exchange Offer, eligible option holders tendered, and the Company accepted for cancellation, eligible stock options to purchase an aggregate of 4,382,918 shares of common stock and in exchange granted new options to purchase 2,624,657 shares of common stock (the “Replacement Options”). The exercise price per share of the new options granted in the exchange offer was $1.93, the last reported sale price per share of the Company’s common stock on the new stock option grant date, which was May 20, 2015.

The exchange was treated as a modification of the terms or conditions of the existing option awards. Accordingly, the Company will recognize incremental compensation costs of $0.8 million ratably over the vesting period of the Replacement Options, of which $0.5 million was recognized for the year ended December 31, 2015 and, the remainder is expected to be recognized over a remaining weighted average vesting period of 1.7 years.

In addition to reducing our equity award overhang by 1.8 million options, the exchange returned approximately 1.1 million shares related to the 2012 Plan or the 2013 Plan shares terminated in connection with the exchange to the 2013 Plan reserve. The following table presents the stock activity and the total number of shares available for grant as of December 31, 2015:



	(in thousands)
Balance at December 31, 2014	443
Plan Amendment	3,200
Options Exchange shares returned	1,111
Options granted	(2,480	)
Restricted Stock granted	(66	)
Forfeited/Expired shares added back	1,050
Balance at December 31, 2015	3,258

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



	Year Ended
	December 31,
	2015		2014		2013
	(in thousands)
Cost of revenue	$	889	$	310	$	60
Selling and marketing	320		866		343
Research and development	784		846		342
General and administrative	3,904		3,172		1,818
Total stock-based compensation	$	5,897	$	5,194	$	2,563

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, 2015, 2014 and 2013 was approximately $2.1 million, $1.9 million and $0.9 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, 2015 and 2014, excess tax benefits from stock-based compensation arrangements of $0.1 million and $0.7 million, respectively, were not recognized. The Company received $0.7 million and $1.6 million in cash from the exercise of stock options during the years ended December 31, 2015 and 2014, respectively. None of the Company's stock options were exercised for the year ended December 31, 2013.

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, 2014	6,588,097		$	5.08	6.96	$	1,327,366
Option Exchange	(1,758,261	)	10.31
Granted	2,480,152		2.02
Exercised	(501,511	)	1.46
Forfeited	(1,195,093	)	6.12
Outstanding at December 31, 2015	5,613,384		$	2.19	7.89	$	628,833
Vested and expected to vest at December 31, 2015	5,408,277		$	2.29	7.84	$	606,304
Exercisable at December 31, 2015	2,255,162		$	2.25	6.39	$	287,058

Aggregate intrinsic value represents the difference between the estimated fair value of the underlying common stock and the exercise price of outstanding, in-the-money options. The aggregate intrinsic value of options exercised was $0.4 million for the year ended December 31, 2015.

As of December 31, 2015, total unrecognized compensation cost related to non-vested stock options granted to employees was $7.3 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,
	2015	2014	2013
	(in thousands)
Expected term (in years)	6.1	6.1	6.0
Risk-free interest rate	1.5% - 1.9%	1.8% - 2.0%	1.0% - 1.1%
Expected volatility	40.8% - 47.1%	47.5% - 49.8%	50.4% - 50.5%
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, 2015, 2014 and 2013 was $0.88, $5.27 and $1.16, respectively. The total estimated fair value of employee options vested during the years ended December 31, 2015, 2014 and 2013 was $3.0 million, $5.5 million and $2.8 million, respectively.

Restricted Stock Activity

As of December 31, 2015 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 0.4 years.

Stock Warrants

In connection with and as consideration for the concessions in the Amended Notes, the Company issued to SG VTB and a trust affiliated with Ronald Doornink warrants to purchase 1.7 million shares of the Company’s common stock at an exercise price of $2.54 per share. The warrants are exercisable for a period of five years beginning on the date of issuance, July 22, 2015. The exercise price and the number of shares of Common Stock purchasable are subject to standard anti-dilution adjustments and do not carry any voting rights or other rights as a stockholder of the Company prior to exercise. The shares issuable upon exercise are also subject to the “demand” and “piggyback” registration rights set forth in the in the Company’s Stockholder Agreement, dated August 5, 2013, as amended July 10, 2014.

In connection with the November Note, the Company issued a warrant to purchase 1.4 million shares of the Company’s common stock at an exercise price of $2.00 per share to SG VTB. The exercise price and the number of shares are subject to standard anti-dilution adjustments and do not carry any voting rights as a stockholder of the Company prior to exercise. The warrant is exercisable for a period of ten years beginning on the date of issuance and does not entitle the holder to any voting rights or other rights as a stockholder of the Company prior to exercise.

The warrants meet the requirements for classification within equity as warrants entitle the holder to purchase a stated amount of shares of common stock at a fixed exercise price that are not puttable (either the warrant or the shares) to the Company or redeemable for cash.

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, 2015 and 2014, 714,347, and 807,578 phantom units at a weighted-average exercise price of $0.93 and $0.88 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, 2015, compensation expense related to the Appreciation Plan units remained unrecognized because a change in control, as defined in the plan, had not occurred and is not anticipated by the Company. In July 2015, the Appreciation Plan was terminated as to new grants, but vested and unvested phantom units will continue.

Segment and Geographical Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment and Geographic Information

In 2014, following the merger, the Company aggregated its two operating segments - Voyetra Turtle Beach (“Headset”) and HyperSound. During 2015, in light of the subsequent development and launch of the HyperSound Clear 500P product, the Company evaluated whether its operating segments should continue to be aggregated for reporting purposes and determined that as a result of the new hearing healthcare product, the HyperSound operating segment will no longer have similar economic characteristics, production processes, clients or methods of distribution. As such, the Company has disclosed the Headset and HyperSound operating segments separately. The entire business is managed by a single management team whose Chief Operating Decision Maker is the Chief Executive Officer.

The following tables show net revenues, operating income and total assets by reporting segments:



	December 31,
	2015			2014			2013
Net Revenues	(in thousands)
Headset	$	161,835		$	185,469		$	178,470
HyperSound	912			707			—
Total	$	162,747		$	186,176		$	178,470

Operating Income (Loss)
Headset	$	(8,698	)	$	(311	)	$	1,598
HyperSound	(65,701		)	(13,514		)	—
Total	$	(74,399	)	$	(13,825	)	$	1,598
Interest Expense	$	5,099		$	7,209		$	6,626
Other non-operating expense, net	$	1,016		$	724		$	45
Loss before income tax expense (benefit)	$	(80,514	)	$	(21,758	)	$	(5,073	)



	December 31, 2015		December 31, 2014
Total Assets	(in thousands)
Headset	$	62,361	$	82,798
HyperSound	111,490		164,170
Total	$	173,851	$	246,968

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



	Year Ended
	December 31,
	2015		2014		2013
	(in thousands)
North America	$	117,526	$	123,908	$	123,224
United Kingdom	20,881		29,425		26,439
Europe	17,329		24,082		18,565
Other	7,011		8,761		10,242
Total net revenue	$	162,747	$	186,176	$	178,470

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



	Year Ended
	December 31,
	2015		2014
	(in thousands)
United States	$	5,749	$	6,612
International	1,110		110
Total	$	6,859	$	6,722

- 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

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2015

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.

Shareholders Class Action: 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 combined company. Following the announcement, several shareholders filed class action lawsuits in California and Nevada seeking to enjoin the Merger. The plaintiffs in each case alleged that members of the Company’s Board of Directors breached their fiduciary duties to the shareholders by agreeing to a Merger that allegedly undervalued the Company. VTBH and the Company were named as defendants in these lawsuits under the theory that they had aided and abetted the Company's Board of Directors in allegedly violating their fiduciary duties. The plaintiffs in both cases sought a preliminary injunction seeking to enjoin closing of the Merger, which by agreement was heard by the Nevada court with the California plaintiffs invited to participate. On December 26, 2013, the court in the Nevada 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 sought monetary damages as well as an order rescinding the Merger. The California plaintiffs dismissed their action without prejudice, and sought to intervene in the Nevada action, which was granted. Subsequent to the intervention, the plaintiffs filed a third amended complaint, which made essentially the same allegations as prior complaints and sought monetary damages. On June 20, 2014, VTBH and the Company moved to dismiss the action, but that motion was denied on August 28, 2014. That denial is currently under review by the Nevada Supreme Court, which held a hearing on the Company's petition for review on September 1, 2015. After the hearing, the Nevada Supreme Court requested a supplemental briefing, which the parties completed on October 13, 2015. The Nevada Supreme Court also invited the Business Law Section of the Nevada State Bar to submit an amicus brief by December 3, 2015 and briefing was completed on February 23, 2016. The Company believes that the plaintiffs’ claims against it are without merit.

Dr. John Bonanno Complaint: 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. On February 8, 2016, the Delaware Chancery Court granted VTBH's motion to dismiss for improper venue, and Dr. Bonnano's complaint was dismissed without prejudice. VTBH maintains that the Merger did not trigger any obligation to redeem Mr. Bonanno's stock.

The Company will continue to vigorously defend itself in the foregoing matters. However, litigation and investigations are inherently uncertain. Accordingly, the Company cannot predict the outcome of these matters. The Company has not recorded any accrual at December 31, 2015 for contingent losses associated with these matters based on its belief that losses, while possible, are not probable. Further, any possible range of loss cannot be reasonably estimated at this time. The unfavorable resolution of these matters could have a material adverse effect on the Company’s business, results of operations, financial condition or cash flows. The Company is engaged in other legal actions not described above arising in the ordinary course of its business and, while there can be no assurance, believes that the ultimate outcome of these other legal actions will not have a material adverse effect on its business, results of operations, financial condition or cash flows.

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, 2015, are as follows:



	(in thousands)
2016	$	1,608
2017	1,709
2018	1,660
2019	1,521
2020	839
Thereafter	1,413
Total	$	8,750

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,
	2015			2014			2013
	(in thousands)
Warranty, beginning of period	$	493		$	139		$	165
Warranty costs accrued	693			850			614
Settlements of warranty claims	(606		)	(496		)	(640		)
Warranty, end of period	$	580		$	493		$	139

XO FOUR Stealth Product Recall: In August 2015, the Company received a limited number of reports from consumers and retailers that certain EAR FORCE® XO FOUR Stealth headsets appeared to have a white substance or spots on the ear pads. Upon receiving the reports, the Company promptly stopped shipping any units of the XO FOUR Stealth headsets and notified our retail customers to stop sales pending the results of the Company’s investigation. An outside laboratory engaged by the Company identified the substance as mold. In cooperation with the U.S. Consumer Product Safety Commission (“CPSC”), the Company is voluntarily recalling certain units of the headsets. As of December 31, 2015 and the date of this report, the Company has not received notice of any law suits against the Company in connection with the recall and is working with the contract manufacturer to collect reimbursement for certain related costs.

On February 3, 2016, the Company notified CPSC promptly upon discovery that a vendor had mistakenly shipped certain recalled headsets to fill online orders. The Company is contacting the affected purchasers directly to instruct them to participate in the recall.

Selected Quarterly Financial Data - Unaudited

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data - Unaudited



Fiscal 2015	Quarter
	First			Second			Third			Fourth (1)
	(in thousands, except per share data)
Net Revenue	$	19,689		$	22,612		$	35,887		$	84,559
Gross Margin	3,116			3,402			9,564			24,609
Net Income (Loss)	(10,593		)	(9,898		)	(15,880		)	(46,536		)
Earnings (Loss) Per Share
Basic	$	(0.25	)	$	(0.23	)	$	(0.38	)	$	(1.09	)
Diluted	$	(0.25	)	$	(0.23	)	$	(0.38	)	$	(1.09	)



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

(1) Includes goodwill impairment charge of $49.8 million

Equity Offering	12 Months Ended
Equity Offering	Dec. 31, 2015
Equity Offering [Abstract]
Equity Offering	Equity Offering On February 2, 2016, the Company entered into an Underwriting Agreement (the “Underwriting Agreement”) with Oppenheimer & Co. Inc., as representative of the several other underwriters named therein, relating to an underwritten public offering (the “Offering”) of 5,000,000 shares of our common stock, at a price to the public of $1.00 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 750,000 shares of common stock at the Offering Price less the underwriting discount. In addition, on February 1, 2016, the Company entered into a separate, concurrent, side-by-side private placement of 1,700,000 shares of its common stock at a price of $1.00 per share. The Company expects to receive net proceeds from the Offering and a side by side private placement of approximately $6.2 million after deducting the underwriting discount and offering expenses. The Company will use all net proceeds from the Offering to pay down amounts outstanding under its working capital line of credit, which is consistent with past practice and required under the terms of our Credit Facility and Term Loan Due 2019.

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2015

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Turtle Beach Corporation

Schedule II - Valuation and Qualifying Accounts

Years ended December 31, 2015, 2014 and 2013




Description	Balance - Begin		Additions		Deductions / Other			Balance - End
Year Ended December 31, 2015:	(in thousands)
Allowance for sales returns	$	4,155	$	17,108	$	(14,995	)	$	6,268
Allowance for cash discounts	5,451		$	17,904	$	(15,896	)	7,459
Allowance for doubtful accounts	200		$	157	$	(255	)	102
								$	13,829
Year Ended December 31, 2014:
Allowance for sales returns	$	6,266	$	13,042	$	(15,153	)	$	4,155
Allowance for cash discounts	2,489		18,488		(15,526		)	5,451
Allowance for doubtful accounts	225		$	37	$	(62	)	200
								$	9,806
Year Ended December 31, 2013:
Allowance for sales returns	$	7,748	$	20,146	$	(21,628	)	$	6,266
Allowance for cash discounts	6,196		15,347		(19,054		)	2,489
Allowance for doubtful accounts	460		125		(360		)	225
								$	8,980

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of 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.		Sales commissions, 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

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		Term of lease or economic life of asset, 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

Foreign Currency Translation

Concentration of Credit Risk

Segment Information

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

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		Term of lease or economic life of asset, if shorter
Demonstration units and convention booths		2 years

Property and equipment, net consists of the following:



	December 31, 2015			December 31, 2014
	(in thousands)
Machinery and equipment	$	1,238		$	599
Software and software development	1,022			847
Furniture and fixtures	284			226
Tooling	3,395			2,417
Leasehold improvements	1,255			104
Demonstration units and convention booths	16,531			13,702
Total property and equipment, gross	23,725			17,895
Less: accumulated depreciation and amortization	(16,866		)	(11,173		)
Total property and equipment, net	$	6,859		$	6,722

Business Combinations (Tables) - Merger of VTB Holdings, Inc. and Parametric Sound Corporation

12 Months Ended

Dec. 31, 2015

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

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Summary of carrying amounts and estimated fair values

The following is a summary of the carrying amounts and estimated fair values of our financial instruments at December 31, 2015 and 2014:



	December 31, 2015				December 31, 2014
	Reported		Fair Value		Reported		Fair Value
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents	$	7,114	$	7,114	$	7,908	$	7,908
Credit Facility	32,453		32,453		36,863		36,863
Term Loans	18,379		18,179		7,692		7,692
Subordinated Debt	17,247		15,892		—		—

Composition of Certain Financial Statement Items (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Consolidated Balance Sheet Components [Abstract]

Schedule of inventory

Inventories, net consist of the following:



	December 31, 2015		December 31, 2014
	(in thousands)
Raw materials	$	1,481	$	2,065
Finished goods	24,665		36,335
Total inventories	$	26,146	$	38,400

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		Term of lease or economic life of asset, if shorter
Demonstration units and convention booths		2 years

Property and equipment, net consists of the following:



	December 31, 2015			December 31, 2014
	(in thousands)
Machinery and equipment	$	1,238		$	599
Software and software development	1,022			847
Furniture and fixtures	284			226
Tooling	3,395			2,417
Leasehold improvements	1,255			104
Demonstration units and convention booths	16,531			13,702
Total property and equipment, gross	23,725			17,895
Less: accumulated depreciation and amortization	(16,866		)	(11,173		)
Total property and equipment, net	$	6,859		$	6,722

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying values of goodwill for the year ended December 31, 2015 are as follows:



	(in thousands)
Balance as of January 1, 2015	$	80,974

Impairment Charge (HyperSound)	49,822
Balance as of December 31, 2015	$	31,152

Schedule of Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2015 and December 31, 2014 consist of:



	December 31, 2015
	Gross Carrying Value			Accumulated Amortization			Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	3,213		2,583
Non-compete agreements	177			177			—
In-process Research and Development	27,100			1,018			26,082
Developed technology	8,880			225			8,655
Trade names	170			67			103
Patent and trademarks	730			37			693
Foreign Currency	(463		)	(303		)	(160		)
Total Intangible Assets	$	42,390		$	4,434		$	37,956



	December 31, 2014
	Gross Carrying Value			Accumulated Amortization			Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	2,458		3,338
Non-compete agreements	177			177			—
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
Foreign Currency	$	(205	)	$	(141	)	$	(64	)
Total Intangible Assets	$	42,357		$	2,631		$	39,726

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of December 31, 2015, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2016	$	8,402
2017	6,523
2018	6,021
2019	5,597
2020	1,348
Thereafter	10,225
Total	$	38,116

Credit Facilities and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments



	December 31, 2015			December 31, 2014
	(in thousands)
Revolving credit facility, maturing March 2019	$	32,453		$	36,863
Term loans	18,379			7,692
Subordinated notes	15,365			—
Total outstanding debt	66,197			44,555
Less: current portion of revolving line of credit	(32,453		)	(36,863		)
Less: current portion of term loan	(4,814		)	(1,923		)
Total noncurrent portion of long-term debt	$	28,930		$	5,769

- 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 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 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

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

Reference 4: 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 5: 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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: 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

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

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

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of income tax (benefit)

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



	Year Ended
	December 31,
	2015			2014			2013
	(in thousands)
Federal:
Current	$	(3,218	)	$	3,271		$	(2,456	)
Deferred	5,153			(9,424		)	3,574
Total Federal	1,935			(6,153		)	1,118
State and Local:
Current	197			455			54
Deferred	663			(347		)	190
Total State and Local	860			108			244
Foreign
Current	—			—			233
Deferred	(402		)	(227		)	(505		)
Total Foreign	(402		)	(227		)	(272		)
Total	$	2,393		$	(6,272	)	$	1,090

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,
	2015			2014			2013
	(in thousands)
U.S. Operations	$	(78,643	)	$	(21,639	)	$	(6,026	)
Foreign Operations	(1,871		)	(119		)	953
Income (loss) before income taxes	(80,514		)	(21,758		)	(5,073		)
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(28,180		)	(7,615		)	(1,776		)
State taxes, net of federal benefit	805			37			158
Foreign tax rate differential	253			151			(282		)
Research credits	—			(728		)	—
Change in valuation allowance	8,528			—			—
Impairment charge	17,438			—			—
Acquisition costs	—			613			865
Stock compensation	3,384			—			—
Interest on Series B Preferred Stock	430			421			353
Prior year adjustment	518			27			1,177
Change in unrecognized tax benefits	(1,024		)	875			—
Other	241			(53		)	595
Provision (benefit) for income taxes	$	2,393		$	(6,272	)	$	1,090

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, 2015			December 31, 2014
	(in thousands)
Deferred Tax Assets:
Allowance for doubtful accounts	$	38		$	73
Inventories	914			543
Employee benefits	2,360			3,895
Net operating loss	16,992			11,422
Unrecognized tax benefits	623			3,045
Other	1,672			677
	22,599			19,655
Valuation allowance	(9,366		)	—
Total deferred tax assets	13,233			19,655

Deferred Tax Liabilities:
Depreciation and amortization	(151		)	(734		)
Intangible assets	(13,086		)	(13,511		)
Total deferred tax liabilities	(13,237		)	(14,245		)
Net deferred tax assets (liabilities)	$	(4	)	$	5,410

Schedule of unrecognized tax benefits roll forward

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



	December 31, 2015			December 31, 2014
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	3,965		$	1,468
Additions based on tax positions related to the current year	—			2,497
Decreases based on tax positions in a prior period	(2,497		)	—
Gross unrecognized tax benefit, end of period	$	1,468		$	3,965

Summary of income tax examinations

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	2012 - 2014
California	2011 - 2014
New Jersey	2011 - 2014
New York	2012 - 2014
Pennsylvania	2012 - 2014
Texas	2011 - 2014
United Kingdom	2012 - 2014

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2015

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,
	2015			2014			2013
	(in thousands, expect per-share data)
Net loss	$	(82,907	)	$	(15,486	)	$	(6,163	)

Weighted average common shares outstanding — Basic	42,269			39,665			12,700
Plus incremental shares from assumed conversions:
Dilutive effect of stock options, warrants, unvested awards	—			—			—
Weighted average common shares outstanding — Diluted	42,269			39,665			12,700

Net loss per share :
Basic	$	(1.96	)	$	(0.39	)	$	(0.49	)
Diluted	$	(1.96	)	$	(0.39	)	$	(0.49	)

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

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,
	2015	2014	2013
	(in thousands)
Stock options	6,260	6,081	3,961
Warrants	954	36	—
Unvested restricted stock awards	54	6	—
Total	7,268	6,123	3,961

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

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, 2015:



	(in thousands)
Balance at December 31, 2014	443
Plan Amendment	3,200
Options Exchange shares returned	1,111
Options granted	(2,480	)
Restricted Stock granted	(66	)
Forfeited/Expired shares added back	1,050
Balance at December 31, 2015	3,258

Stock-based compensation cost

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



	Year Ended
	December 31,
	2015		2014		2013
	(in thousands)
Cost of revenue	$	889	$	310	$	60
Selling and marketing	320		866		343
Research and development	784		846		342
General and administrative	3,904		3,172		1,818
Total stock-based compensation	$	5,897	$	5,194	$	2,563

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, 2014	6,588,097		$	5.08	6.96	$	1,327,366
Option Exchange	(1,758,261	)	10.31
Granted	2,480,152		2.02
Exercised	(501,511	)	1.46
Forfeited	(1,195,093	)	6.12
Outstanding at December 31, 2015	5,613,384		$	2.19	7.89	$	628,833
Vested and expected to vest at December 31, 2015	5,408,277		$	2.29	7.84	$	606,304
Exercisable at December 31, 2015	2,255,162		$	2.25	6.39	$	287,058

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,
	2015	2014	2013
	(in thousands)
Expected term (in years)	6.1	6.1	6.0
Risk-free interest rate	1.5% - 1.9%	1.8% - 2.0%	1.0% - 1.1%
Expected volatility	40.8% - 47.1%	47.5% - 49.8%	50.4% - 50.5%
Dividend rate	0%	0%	0%

Unvested restricted stock awards

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

Stock option activity

Segment and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Schedule of Net Revenues and Operating Income by Segment

The following tables show net revenues, operating income and total assets by reporting segments:



	December 31,
	2015			2014			2013
Net Revenues	(in thousands)
Headset	$	161,835		$	185,469		$	178,470
HyperSound	912			707			—
Total	$	162,747		$	186,176		$	178,470

Operating Income (Loss)
Headset	$	(8,698	)	$	(311	)	$	1,598
HyperSound	(65,701		)	(13,514		)	—
Total	$	(74,399	)	$	(13,825	)	$	1,598
Interest Expense	$	5,099		$	7,209		$	6,626
Other non-operating expense, net	$	1,016		$	724		$	45
Loss before income tax expense (benefit)	$	(80,514	)	$	(21,758	)	$	(5,073	)

Total Assets by Segment



	December 31, 2015		December 31, 2014
Total Assets	(in thousands)
Headset	$	62,361	$	82,798
HyperSound	111,490		164,170
Total	$	173,851	$	246,968

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,
	2015		2014		2013
	(in thousands)
North America	$	117,526	$	123,908	$	123,224
United Kingdom	20,881		29,425		26,439
Europe	17,329		24,082		18,565
Other	7,011		8,761		10,242
Total net revenue	$	162,747	$	186,176	$	178,470

Property and Equipment Based on Location

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



	Year Ended
	December 31,
	2015		2014
	(in thousands)
United States	$	5,749	$	6,612
International	1,110		110
Total	$	6,859	$	6,722

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases



	(in thousands)
2016	$	1,608
2017	1,709
2018	1,660
2019	1,521
2020	839
Thereafter	1,413
Total	$	8,750

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,
	2015			2014			2013
	(in thousands)
Warranty, beginning of period	$	493		$	139		$	165
Warranty costs accrued	693			850			614
Settlements of warranty claims	(606		)	(496		)	(640		)
Warranty, end of period	$	580		$	493		$	139

Selected Quarterly Financial Data - Unaudited (Tables)

12 Months Ended

Dec. 31, 2015

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information - Unaudited



Fiscal 2015	Quarter
	First			Second			Third			Fourth (1)
	(in thousands, except per share data)
Net Revenue	$	19,689		$	22,612		$	35,887		$	84,559
Gross Margin	3,116			3,402			9,564			24,609
Net Income (Loss)	(10,593		)	(9,898		)	(15,880		)	(46,536		)
Earnings (Loss) Per Share
Basic	$	(0.25	)	$	(0.23	)	$	(0.38	)	$	(1.09	)
Diluted	$	(0.25	)	$	(0.23	)	$	(0.38	)	$	(1.09	)



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

(1) Includes goodwill impairment charge of $49.8 million

Summary of Significant Accounting Policies - Basis of Presentation (Details)		12 Months Ended
	Jan. 15, 2014 $ / shares shares	Dec. 31, 2015 $ / shares	Dec. 31, 2014 $ / shares
Business Acquisition [Line Items]
Effective date of acquisition		Jan. 15, 2014
Common stock par value (in dollars per share)		$ 0.001	$ 0.001
VTB Holdings, Inc \| Common Stock \| Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Equity interests issued and/or issuable in the transaction (in shares) \| shares	30,227,100
Common stock par value (in dollars per share)	$ 0.001
Exchange ratio of common stock	0.35997

Summary of Significant Accounting Policies - Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2015
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
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Estimated useful life	2 years

Summary of Significant Accounting Policies - Valuation of Long-Lived and Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
	Jan. 15, 2014	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Goodwill impairment		$ 49,822	$ 49,822	$ 0	$ 0
Goodwill		$ 31,152	$ 31,152	$ 80,974
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Goodwill acquired	$ 81,000
Goodwill	$ 80,974

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2015 USD ($) customer	Dec. 31, 2014 USD ($) customer	Dec. 31, 2013 USD ($) customer	Dec. 31, 2012 USD ($)
Revenue, Major Customer [Line Items]
Cash and cash equivalents \| $	$ 7,114	$ 7,908	$ 6,509	$ 5,219
Foreign Countries
Revenue, Major Customer [Line Items]
Cash and cash equivalents \| $	$ 200	$ 2,500
Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Number of customers \| customer	3	3	3
Concentration risk, percentage	47.00%
Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Number of customers \| customer	2	2
Customer One \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	18.00%	15.00%	16.00%
Customer One \| Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	19.00%	23.00%
Customer Two \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	15.00%	15.00%	15.00%
Customer Two \| Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	24.00%	20.00%
Customer Three \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	14.00%	15.00%	14.00%

Business Combinations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jan. 15, 2014	Jan. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Business transaction costs			$ 0	$ 3,744	$ 3,864
Expected volatility, minimum (as a percentage)			40.80%	47.50%	50.40%
Expected volatility, maximum (as a percentage)			47.10%	49.80%	50.50%
Risk-free interest rate, minimum (as a percentage)			1.50%	1.80%	1.00%
Risk-free interest rate, maximum (as a percentage)			1.90%	2.00%	1.10%
Expected term (in years)			6 years 1 month 18 days	6 years 1 month 6 days	6 years 18 days
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Business transaction costs			$ 3,744	$ 3,864
Purchase price (in dollars per share)	$ 14.30
Expected volatility, minimum (as a percentage)	87.00%
Expected volatility, maximum (as a percentage)	90.00%
Risk-free interest rate, minimum (as a percentage)	0.47%
Risk-free interest rate, maximum (as a percentage)	0.92%
Expected forfeitures rate, minimum (as a percentage)	1.10%
Expected forfeitures rate, maximum (as a percentage)	4.10%
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Developed technology
Business Acquisition [Line Items]
Useful life (in years)		7 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Customer relationships
Business Acquisition [Line Items]
Useful life (in years)		2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Trade names
Business Acquisition [Line Items]
Useful life (in years)		5 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| In-process research and development (IPR&D)
Business Acquisition [Line Items]
Useful life (in years)			8 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Minimum
Business Acquisition [Line Items]
Expected term (in years)	3 years 3 months 11 days
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Maximum
Business Acquisition [Line Items]
Expected term (in years)	4 years 7 months 10 days

Business Combinations - Transaction Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Business Acquisition [Line Items]
Total Transaction Costs	$ 0	$ 3,744	$ 3,864
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Legal fees	786	1,452
Accounting fees	84	2,254
Advisory fees	2,219	0
Termination and severance	450	0
Other	205	158
Total Transaction Costs	$ 3,744	$ 3,864

Business Combinations - Consideration Given (Details) - Merger of VTB Holdings, Inc. and Parametric Sound Corporation $ in Thousands	Jan. 15, 2014 USD ($)
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	Dec. 31, 2015	Dec. 31, 2014	Jan. 15, 2014
Business Acquisition [Line Items]
Goodwill	$ 31,152	$ 80,974
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Cash and cash equivalents			$ 4,093
Accounts receivable			47
Deferred tax asset			6,696
Other current assets			710
Property and equipment			206
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
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| In-process research and development (IPR&D)
Business Acquisition [Line Items]
Intangible assets, indefinite-lived			27,100
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Developed technology
Business Acquisition [Line Items]
Intangible assets, finite-lived			8,880
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Customer relationships
Business Acquisition [Line Items]
Intangible assets, finite-lived			270
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Trade names
Business Acquisition [Line Items]
Intangible assets, finite-lived			$ 170

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 7,114	$ 7,908
Reported Value Measurement \| Revolving credit facilities \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	32,453	36,863
Reported Value Measurement \| Term loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	18,379	7,692
Reported Value Measurement \| Subordinated Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	17,247	0
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	7,114	7,908
Estimate of Fair Value Measurement \| Revolving credit facilities \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	32,453	36,863
Estimate of Fair Value Measurement \| Term loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	18,179	7,692
Estimate of Fair Value Measurement \| Subordinated Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 15,892	$ 0

Allowance for Sales Returns - Summary of Allowance for Sales Returns (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 9,806	$ 8,980
Balance, end of period	13,829	9,806	$ 8,980
Allowance for sales returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	4,155	6,266	7,748
Reserve accrual	17,108	13,042	20,146
Recoveries and deductions, net	(14,995)	(15,153)	(21,628)
Balance, end of period	$ 6,268	$ 4,155	$ 6,266

Composition of Certain Financial Statement Items - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 1,481	$ 2,065
Finished goods	24,665	36,335
Total inventories	$ 26,146	$ 38,400

Composition of Certain Financial Statement Items - Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 23,725	$ 17,895
Less: accumulated depreciation and amortization	(16,866)	(11,173)
Total property and equipment, net	6,859	6,722
Depreciation and amortization	5,901	5,800	$ 4,422
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,238	599
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,022	847
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	284	226
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	3,395	2,417
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,255	104
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 16,531	$ 13,702

Goodwill and Other Intangible Assets - Carrying Values of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Goodwill [Roll Forward]
Goodwill, beginning balance		$ 80,974
Impairment Charge (HyperSound)	$ 49,822	49,822	$ 0	$ 0
Goodwill, ending balance	$ 31,152	$ 31,152	$ 80,974

Goodwill and Other Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets
Accumulated Amortization	$ 4,434	$ 2,631
Total	38,116
Indefinite-Lived Intangible Assets
Total intangible assets, gross carrying value	42,390	42,357
Total intangible assets, net book value	37,956	39,726
Customer relationships
Finite-Lived Intangible Assets
Gross Carrying Value	5,796	5,796
Accumulated Amortization	3,213	2,458
Total	2,583	3,338
Non-compete agreements
Finite-Lived Intangible Assets
Gross Carrying Value	177	177
Accumulated Amortization	177	177
Total	0	0
In-process research and development (IPR&D)
Finite-Lived Intangible Assets
Gross Carrying Value	27,100
Accumulated Amortization	1,018
Total	26,082
Developed technology
Finite-Lived Intangible Assets
Gross Carrying Value	8,880	8,880
Accumulated Amortization	225	104
Total	8,655	8,776
Trade names
Finite-Lived Intangible Assets
Gross Carrying Value	170	170
Accumulated Amortization	67	33
Total	103	137
Patent and trademarks
Finite-Lived Intangible Assets
Gross Carrying Value	730
Accumulated Amortization	37
Total	693
Foreign Currency
Finite-Lived Intangible Assets
Gross Carrying Value	(463)	(205)
Accumulated Amortization	(303)	(141)
Total	$ (160)	(64)
Patent and trademarks
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets		439
In-process research and development (IPR&D)
Indefinite-Lived Intangible Assets
Indefinite-lived intangible assets		$ 27,100

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2016	$ 8,402
2017	6,523
2018	6,021
2019	5,597
2020	1,348
Thereafter	10,225
Total	$ 38,116

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended		12 Months Ended
	Jan. 31, 2014	Oct. 31, 2012	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]
Amortization of intangible assets			$ 2,015	$ 1,066	$ 923
Acquisition of Lygo International Limited \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)		13 years
Acquisition of Lygo International Limited \| Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)		2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	2 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Developed technology
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	7 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Trade names
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	5 years
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| In-process research and development (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)			8 years

Credit Facilities and Long-Term Debt - Summary of Credit Facilities and Long-Term Debt (Details) - USD ($) $ in Thousands		12 Months Ended
	Jul. 22, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total outstanding debt		$ 66,197	$ 44,555
Total noncurrent portion of long-term debt		28,930	5,769
Interest expense		3,500	6,000	$ 5,600
Amortization of deferred financing costs		360	2,621	$ 1,556
Write off of Deferred Debt Issuance Costs			2,200
Financing costs	$ 4,100
Fair value of warrants	$ 2,000
Revolving credit facilities \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Total outstanding debt		32,453	36,863
Current maturities of outstanding debt		(32,453)	(36,863)
Term loans
Debt Instrument [Line Items]
Total outstanding debt		18,379	7,692
Current maturities of outstanding debt		(4,814)	(1,923)
Subordinated Debt
Debt Instrument [Line Items]
Total outstanding debt		$ 15,365	$ 0

Credit Facilities and Long-Term Debt - Revolving Credit Facility (Details)				12 Months Ended
	Feb. 01, 2016 USD ($)	Mar. 16, 2015	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)
Subsequent Event
Line of Credit Facility [Line Items]
Minimum net proceeds from additional equity capital to be applied to outstanding balance	$ 6,000,000.0
Revolving credit facility, maturing March 2019
Line of Credit Facility [Line Items]
Expiration date			Mar. 31, 2019
Maximum borrowing capacity			$ 60,000,000
Line of credit facility, over advance, default amount					$ 100,000
Percentage of monthly projected EBITDA		75.00%
Debt instrument, covenant, current fixed charge ratio required, minimum		1.15
Coverage ratio compliance period		6 months
Remaining borrowing capacity				$ 3,800,000
Revolving credit facility, maturing March 2019 \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.00%
Unused commitment fee, percent				0.25%
Revolving credit facility, maturing March 2019 \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.50%
Unused commitment fee, percent				0.50%
Revolving credit facility, maturing March 2019 \| Base rate
Line of Credit Facility [Line Items]
Interest rate at period end				5.00%
Revolving credit facility, maturing March 2019 \| Base rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Revolving credit facility, maturing March 2019 \| Base rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.50%
Revolving credit facility, maturing March 2019 \| LIBOR
Line of Credit Facility [Line Items]
Interest rate at period end				2.92%
Revolving credit facility, maturing March 2019 \| LIBOR \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.00%
Revolving credit facility, maturing March 2019 \| LIBOR \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate			2.50%
Revolving credit facility, maturing March 2019 \| UK Borrower
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 10,000,000

Credit Facilities and Long-Term Debt - Term Loans (Details)				12 Months Ended
	Nov. 02, 2015 USD ($)	Jul. 22, 2015 USD ($)	Dec. 29, 2014 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Line of Credit Facility [Line Items]
Outstanding debt				$ 66,197,000	$ 44,555,000
Repayments of loans				$ 4,423,000	$ 14,500,000	$ 26,750,000
Term Loan Due 2019
Line of Credit Facility [Line Items]
Outstanding debt		$ 15,000,000
Maturity date		Jun. 28, 2019
Repayments of loans	$ 2,500,000
Term Loan Due 2019 \| Year Ended December 31, 2015
Line of Credit Facility [Line Items]
Consolidated leverage ratio		5.75
Maximum capital expenditures		$ 11,000,000
Term Loan Due 2019 \| Year Ended December 31, 2017
Line of Credit Facility [Line Items]
Consolidated leverage ratio		3.00
Term Loan Due 2019 \| Years Ended December 31, 2016, 2017, 2018, 2019
Line of Credit Facility [Line Items]
Maximum capital expenditures		$ 7,000,000
LIBOR \| Term Loan Due 2019
Line of Credit Facility [Line Items]
Basis spread on variable rate		10.25%
Additional Default Rate \| Term Loan Due 2019
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.00%
Revolving credit facility
Line of Credit Facility [Line Items]
Principal amount permitted to be repaid			$ 7,700,000
Term loans \| LIBOR
Line of Credit Facility [Line Items]
Basis spread on variable rate			5.00%

Credit Facilities and Long-Term Debt - Subordinated Notes - Related Party (Details) $ / shares in Units, shares in Millions						9 Months Ended
	Nov. 16, 2015 USD ($)	Jul. 22, 2015 $ / shares shares	Jun. 17, 2015 USD ($) extension	May. 13, 2015 USD ($) extension	Apr. 23, 2015 USD ($)	Sep. 30, 2015	Dec. 31, 2015 USD ($)	Jul. 08, 2015 USD ($)	Dec. 31, 2014 USD ($)
Debt Instrument [Line Items]
Outstanding debt							$ 66,197,000		$ 44,555,000
Warrants outstanding \| shares		1.7
Exercise price of warrants (in dollars per share) \| $ / shares		$ 2.54
Subordinated Debt
Debt Instrument [Line Items]
Outstanding debt							15,365,000		$ 0
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Subordinated Debt
Debt Instrument [Line Items]
Maturity date		Sep. 29, 2019
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Subordinated Debt \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		10.50%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of April Note
Debt Instrument [Line Items]
Interest rate of initial period					10.00%
Interest rate of subsequent period					20.00%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of April Note \| Subordinated Debt
Debt Instrument [Line Items]
Debt amount					$ 5,000,000.0
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of May Notes
Debt Instrument [Line Items]
Interest rate of initial period				10.00%
Interest rate of subsequent period				20.00%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of May Notes \| Subordinated Debt
Debt Instrument [Line Items]
Debt amount				$ 3,800,000.0
Maturity date				Aug. 13, 2015
Number of maturity date extensions \| extension				2
Maturity date extension period				90 days
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of June Note
Debt Instrument [Line Items]
Interest rate of initial period			10.00%
Interest rate of subsequent period			20.00%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of June Note \| Subordinated Debt
Debt Instrument [Line Items]
Debt amount			$ 3,000,000.0
Maturity date						Sep. 17, 2015
Number of maturity date extensions \| extension			2
Maturity date extension period			90 days
Maximum capacity			$ 15,000,000
Outstanding debt							$ 9,000,000
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of Additional June Note \| Subordinated Debt
Debt Instrument [Line Items]
Debt amount								$ 6,000,000.0
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of November Note \| Subordinated Debt
Debt Instrument [Line Items]
Debt amount	$ 2,500,000.0
Maturity date	Sep. 29, 2019
Stated interest rate	15.00%

Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Federal:
Current	$ (3,218)	$ 3,271	$ (2,456)
Deferred	5,153	(9,424)	3,574
Total Federal	1,935	(6,153)	1,118
State and Local:
Current	197	455	54
Deferred	663	(347)	190
Total State and Local	860	108	244
Foreign
Current	0	0	233
Deferred	(402)	(227)	(505)
Total Foreign	(402)	(227)	(272)
Total	$ 2,393	$ (6,272)	$ 1,090

Income Taxes - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Unremitted foreign earnings	$ 0.4
Operating Loss Carryforwards [Line Items]
Excess tax benefit from stock-based compensation	0.1	$ 0.7
Unrecognized tax benefits that would impact effective tax rate	1.5
Unrecognized tax benefits inclusive of interest and penalties	2.2
Interest and penalties	0.7
2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	44.6
State and Local Jurisdiction \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	20.6
Domestic Tax Authority \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	$ 12.7

Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Effective Income Tax Rate Reconciliation, Percent [Abstract]
U.S. Operations	$ (78,643)	$ (21,639)	$ (6,026)
Foreign Operations	(1,871)	(119)	953
Loss before income tax expense (benefit)	$ (80,514)	$ (21,758)	$ (5,073)
Federal statutory rate	35.00%	35.00%	35.00%
Provision for income taxes at federal statutory rate	$ (28,180)	$ (7,615)	$ (1,776)
State taxes, net of federal benefit	805	37	158
Foreign tax rate differential	253	151	(282)
Research credits	0	(728)	0
Change in valuation allowance	8,528	0	0
Impairment charge	17,438	0	0
Acquisition costs	0	613	865
Stock compensation	3,384	0	0
Interest on Series B Preferred Stock	430	421	353
Prior year adjustment	518	27	1,177
Change in unrecognized tax benefits	(1,024)	875	0
Other	241	(53)	595
Total	$ 2,393	$ (6,272)	$ 1,090

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred Tax Assets:
Allowance for doubtful accounts	$ 38	$ 73
Inventories	914	543
Employee benefits	2,360	3,895
Net operating loss	16,992	11,422
Unrecognized tax benefits	623	3,045
Other	1,672	677
Total deferred tax assets	22,599	19,655
Valuation allowance	(9,366)	0
Total deferred tax assets	13,233	19,655
Deferred Tax Liabilities:
Depreciation and amortization	(151)	(734)
Intangible assets	(13,086)	(13,511)
Total deferred tax liabilities	(13,237)	(14,245)
Net deferred tax liabilities	$ (4)
Net deferred tax assets		$ 5,410

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefit, beginning of period	$ 3,965	$ 1,468
Additions based on tax positions related to the current year	0	2,497
Decreases based on tax positions in a prior period	(2,497)	0
Gross unrecognized tax benefit, end of period	$ 1,468	$ 3,965

Preferred Stock - Additional Information (Details) - USD ($)		1 Months Ended	12 Months Ended
	Jan. 15, 2014	Sep. 30, 2010	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Class of Stock [Line Items]
Series B redeemable preferred stock			$ 16,145,000	$ 14,916,000
Series A Convertible Preferred Stock
Class of Stock [Line Items]
Shares issued		48,689,555
Proceeds from issuance of stock		$ 24,300,000
Series B Redeemable Preferred Stock
Class of Stock [Line Items]
Shares issued		1,000,000
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	1,200,000	$ 1,000,000
Series B redeemable preferred stock			16,100,000	14,900,000
Dividends declared and paid			$ 0	$ 0	$ 0
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
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 converted	17,526,640

Net Income (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Basic and diluted:
Net loss	$ (46,536)	$ (15,880)	$ (9,898)	$ (10,593)	$ 2,360	$ (5,638)	$ (9,302)	$ (2,906)	$ (82,907)	$ (15,486)	$ (6,163)
Basic:
Weighted-average common shares outstanding, basic (in shares)									42,269	39,665	12,700
Dilutive effect of stock options, warrants, unvested awards									0	0	0
Diluted:
Weighted-average common shares outstanding, diluted (in shares)									42,269	39,665	12,700
Net loss per share :
Basic (in dollars per share)	$ (1.09)	$ (0.38)	$ (0.23)	$ (0.25)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ (1.96)	$ (0.39)	$ (0.49)
Diluted (in dollars per share)	$ (1.09)	$ (0.38)	$ (0.23)	$ (0.25)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ (1.96)	$ (0.39)	$ (0.49)

Net Income (Loss) Per Share - Antidilutive Securities (Details) shares in Thousands		12 Months Ended
	Jan. 15, 2014	Dec. 31, 2015 shares	Dec. 31, 2014 shares	Dec. 31, 2013 shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		7,268	6,123	3,961
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		6,260	6,081	3,961
Warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		954	36	0
Unvested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share		54	6	0
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

Stock Based Compensation - Shares Available for Grant (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance at December 31, 2014	443
Plan Amendment	3,200
Options Exchange shares returned	1,111
Options granted	(2,480)
Restricted Stock granted	(66)
Forfeited/Expired shares added back	1,050
Balance at December 31, 2015	3,258

Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 5,897	$ 5,194	$ 2,563
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	889	310	60
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	320	866	343
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	784	846	342
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 3,904	$ 3,172	$ 1,818

Stock Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares)	6,588,097
Assumed in acquisition (in shares)	(1,758,261)
Granted (in shares)	2,480,152
Exercised (in shares)	(501,511)
Forfeited (in shares)	(1,195,093)
Outstanding end of period (in shares)	5,613,384	6,588,097
Vested and expected to vest (in shares)	5,408,277
Exercisable (in shares)	2,255,162
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share)	$ 5.08
Assumed in acquisition (in dollars per share)	10.31
Granted (in dollars per share)	2.02
Exercised (in dollars per share)	1.46
Forfeited (in dollars per share)	6.12
Outstanding end of period (in dollars per share)	2.19	$ 5.08
Vested and expected to vest (in dollars per share)	2.29
Exercisable (in dollars per share)	$ 2.25
Outstanding, weighted average remaining contractual term	7 years 10 months 21 days	6 years 11 months 16 days
Vested and expected to vest, weighted average remaining contractual term	7 years 10 months 2 days
Exercisable, weighted average remaining contractual term	6 years 4 months 21 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, intrinsic value	$ 628,833	$ 1,327,366
Vested and expected to vest, intrinsic value	606,304
Exercisable, intrinsic value	$ 287,058

Stock Based Compensation - Weighted-Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	6 years 1 month 18 days	6 years 1 month 6 days	6 years 18 days
Risk-free interest rate, minimum (as a percentage)	1.50%	1.80%	1.00%
Risk-free interest rate, maximum (as a percentage)	1.90%	2.00%	1.10%
Expected volatility, minimum (as a percentage)	40.80%	47.50%	50.40%
Expected volatility, maximum (as a percentage)	47.10%	49.80%	50.50%
Expected dividend rate	0.00%	0.00%	0.00%

Stock Based Compensation - RSA Activity (Details)	12 Months Ended
Stock Based Compensation - RSA Activity (Details)	Dec. 31, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted (in shares)	66,000
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)	6,396
Granted (in shares)	65,502
Outstanding end of period (in shares)	71,898
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding beginning of period (in dollars per share) \| $ / shares	$ 15.63
Granted (in dollars per share) \| $ / shares	2.29
Outstanding end of period (in dollars per share) \| $ / shares	$ 3.48

Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		12 Months Ended
	Jul. 22, 2015	Nov. 30, 2015	Apr. 30, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	May. 20, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture period after ending employment				90 days
Outstanding stock options (in shares)				5,613,384	6,588,097
Stock-based compensation				$ 5,897	$ 5,194	$ 2,563
Amortization period of unrecognized compensation costs				4 years
Assumed in acquisition (in shares)				1,758,261
Options Exchange shares returned				1,111,000
Forfeited (in shares)				1,195,093
Forfeited/Expired shares added back				1,050,000
Related income tax benefit				$ 2,100	1,900	900
Excess tax benefit from stock-based compensation				100	700
Proceeds from exercise of stock options				731	$ 1,618	$ 0
Options exercised, intrinsic value				400
Total unrecognized compensation cost related to stock options				$ 7,300
Weighted average grant date fair value of options granted (in dollars per share)				$ 0.88	$ 5.27	$ 1.16
Estimated grant date fair value of options vested				$ 3,000	$ 5,500	$ 2,800
Warrants outstanding	1,700,000
Exercise price of warrants (in dollars per share)	$ 2.54
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| VTB Holdings, Inc
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants outstanding		1,400,000
Exercise price of warrants (in dollars per share)		$ 2.00
Warrant exercisable period	5 years	10 years
Non-Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate				10.00%
Executives
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture rate				0.00%
Replacement options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding stock options (in shares)							2,624,657
Incremental compensation costs							$ 800
Stock-based compensation				$ 500
Amortization period of unrecognized compensation costs				1 year 8 months
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award expiration period				10 years
Amortization period of unrecognized compensation costs				2 years 11 months 1 day
Unvested restricted stock awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award restriction period				3 years
Amortization period of unrecognized compensation costs				5 months
Total unrecognized compensation cost related to non-vested options				$ 100
Phantom equity \| 2011 Phantom Equity Appreciation Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized					1,500,000
Shares granted and outstanding (in shares)				714,347	807,578
Weighted average exercise price of options granted and outstanding (in dollars per share)				$ 0.93	$ 0.88
Exchange Eligible Options \| Replacement options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price (in dollars per share)			$ 5.00				$ 1.93
Additional award vesting period			6 months
Outstanding stock options (in shares)							4,382,918

Segment and Geographical Information - Net Revenues, Operating Income, and Total Assets by Segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Jun. 30, 2014 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2015 USD ($) segment	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment									2
Segment Reporting Information [Line Items]
Net Revenue	$ 84,559	$ 35,887	$ 22,612	$ 19,689	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 162,747	$ 186,176	$ 178,470
Operating income (loss)									(74,399)	(13,825)	1,598
Interest expense									5,099	7,209	6,626
Other non-operating expense, net									1,016	724	45
Loss before income tax expense (benefit)									(80,514)	(21,758)	(5,073)
Total Assets	173,851				246,968				173,851	246,968
Operating Segments \| Headset
Segment Reporting Information [Line Items]
Net Revenue									161,835	185,469	178,470
Operating income (loss)									(8,698)	(311)	1,598
Total Assets	62,361				82,798				62,361	82,798
Operating Segments \| HyperSound
Segment Reporting Information [Line Items]
Net Revenue									912	707	0
Operating income (loss)									(65,701)	(13,514)	$ 0
Total Assets	$ 111,490				$ 164,170				$ 111,490	$ 164,170

Segment and Geographical Information - Net Revenues and Property and Equipment by Geographical Location (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	$ 84,559	$ 35,887	$ 22,612	$ 19,689	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 162,747	$ 186,176	$ 178,470
Property and equipment, net	6,859				6,722				6,859	6,722
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									117,526	123,908	123,224
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									20,881	29,425	26,439
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									17,329	24,082	18,565
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	5,749				6,612				5,749	6,612
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									7,011	8,761	$ 10,242
Property and equipment, net	$ 1,110				$ 110				$ 1,110	$ 110

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Feb. 18, 2015	Aug. 05, 2013
Pending Litigation \| Bonanno vs. VTBH [Member]
Loss Contingency, Information about Litigation Matters [Abstract]
Damages sought	$ 15.1
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| VTB Holdings, Inc
Business Acquisition [Line Items]
Ownership percentage		80.00%
Merger of VTB Holdings, Inc. and Parametric Sound Corporation \| Parametric Sound Corporation
Business Acquisition [Line Items]
Ownership percentage		20.00%

Commitments and Contingencies - Operating Leases (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016	$ 1,608
2017	1,709
2018	1,660
2019	1,521
2020	839
Thereafter	1,413
Total	$ 8,750

Commitments and Contingencies - Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 493	$ 139	$ 165
Warranty costs accrued	693	850	614
Settlements of warranty claims	(606)	(496)	(640)
Warranty, end of period	$ 580	$ 493	$ 139

Selected Quarterly Financial Data - Unaudited - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]
Net Revenue	$ 84,559	$ 35,887	$ 22,612	$ 19,689	$ 92,267	$ 33,325	$ 22,296	$ 38,288	$ 162,747	$ 186,176	$ 178,470
Gross Margin	24,609	9,564	3,402	3,116	25,811	7,749	4,831	12,276	40,691	50,667	50,329
Net Income (Loss)	$ (46,536)	$ (15,880)	$ (9,898)	$ (10,593)	$ 2,360	$ (5,638)	$ (9,302)	$ (2,906)	$ (82,907)	$ (15,486)	$ (6,163)
Earnings (Loss) Per Share
Basic (in dollars per share)	$ (1.09)	$ (0.38)	$ (0.23)	$ (0.25)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ (1.96)	$ (0.39)	$ (0.49)
Diluted (in dollars per share)	$ (1.09)	$ (0.38)	$ (0.23)	$ (0.25)	$ 0.06	$ (0.13)	$ (0.23)	$ (0.09)	$ (1.96)	$ (0.39)	$ (0.49)
Goodwill impairment	$ 49,822								$ 49,822	$ 0	$ 0

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

+ References + Details

Equity Offering - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				12 Months Ended
	Feb. 02, 2016	Feb. 02, 2016	Feb. 01, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Equity Offering [Line Items]
Proceeds from sale of common stock, net of issuance costs				$ 0	$ 37,230	$ 0
Subsequent Event
Equity Offering [Line Items]
Proceeds from sale of common stock, net of issuance costs	$ 6,200
Subsequent Event \| Underwritten public offering
Equity Offering [Line Items]
Number of shares issued in transaction		5,000,000
Share price (in dollars per share)	$ 1.00	$ 1.00
Subsequent Event \| 30-day option granted to underwriters to purchase additional stock
Equity Offering [Line Items]
Number of shares issued in transaction		750,000
Subsequent Event \| Private placement
Equity Offering [Line Items]
Number of shares issued in transaction			1,700,000
Share price (in dollars per share)			$ 1.00

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 9,806	$ 8,980
Balance, end of period	13,829	9,806	$ 8,980
Allowance for sales returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	4,155	6,266	7,748
Additions	17,108	13,042	20,146
Deductions / Other	(14,995)	(15,153)	(21,628)
Balance, end of period	6,268	4,155	6,266
Allowance for cash discounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	5,451	2,489	6,196
Additions	17,904	18,488	15,347
Deductions / Other	(15,896)	(15,526)	(19,054)
Balance, end of period	7,459	5,451	2,489
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	200	225	460
Additions	157	37	125
Deductions / Other	(255)	(62)	(360)
Balance, end of period	$ 102	$ 200	$ 225

Summary of Significant Accounting Policies - Marketing Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising expense	$ 5.0	$ 4.8	$ 7.7
Cooperative advertising expense	$ 3.6	$ 6.4	$ 4.3

Summary of Significant Accounting Policies - Segment Information (Details)	12 Months Ended
	Dec. 31, 2015 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2

Weighted Average Grant Date Fair Value Per Share

Nonvested restricted stock at December 31, 2014

Nonvested restricted stock at December 31, 2015