Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2017	Feb. 28, 2018	Jun. 30, 2017
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, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		49,386,006
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 9,802,194

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 5,247	$ 6,183
Accounts receivable, less allowances of $13,155 and $12,783 in 2017 and 2016, respectively	50,534	54,633
Inventories	27,518	21,698
Prepaid expenses and other current assets	3,467	4,121
Total Current Assets	86,766	86,635
Property and equipment, net	4,677	4,311
Goodwill	0	0
Intangible assets, net	1,404	1,618
Deferred income taxes	362	543
Other assets	1,042	1,693
Total Assets	94,251	94,800
Current Liabilities:
Revolving credit facilities	38,467	35,905
Term loans	4,173	2,647
Accounts payable	13,459	11,927
Other current liabilities	11,451	16,414
Total Current Liabilities	67,550	66,893
Term loans, long-term portion	6,789	10,442
Series B redeemable preferred stock	18,921	17,480
Subordinated notes - related party	20,836	17,881
Other liabilities	2,312	2,800
Total Liabilities	116,408	115,496
Commitments and Contingencies
Stockholders' Equity (Deficit)
Common stock, $0.001 par value - 100,000,000 shares authorized; 49,386,006 and 49,251,336 shares issued and outstanding as of December 31, 2017 and 2016, respectively	49	49
Additional paid-in capital	148,045	146,615
Accumulated deficit	(170,048)	(166,800)
Accumulated other comprehensive loss	(203)	(560)
Total Stockholders' Equity (Deficit)	(22,157)	(20,696)
Total Liabilities and Stockholders' Equity (Deficit)	$ 94,251	$ 94,800

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Current Assets:
Allowances and discounts	$ 13,155	$ 12,783
Stockholders' Equity (Deficit)
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	49,386,006	49,251,336
Common stock shares outstanding	49,386,006	49,251,336

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Net Revenue	$ 149,135	$ 173,978	$ 162,747
Cost of Revenue	98,132	131,368	122,056
Gross Profit	51,003	42,610	40,691
Operating expenses:
Selling and marketing	24,385	28,572	31,829
Research and development	5,587	8,259	11,556
General and administrative	15,700	19,580	21,484
Goodwill and Intangible Asset Impairment	0	63,236	49,822
Restructuring charges	533	664	399
Total operating expenses	46,205	120,311	115,090
Operating income (loss)	4,798	(77,701)	(74,399)
Interest expense	7,916	7,447	5,099
Other non-operating (income) expense, net	(463)	2,421	1,016
Loss before income tax expense (benefit)	(2,655)	(87,569)	(80,514)
Income tax expense (benefit)	593	(387)	2,393
Net loss	$ (3,248)	$ (87,182)	$ (82,907)
Net loss per share :
Basic (in dollars per share)	$ (0.07)	$ (1.79)	$ (1.96)
Diluted (in dollars per share)	$ (0.07)	$ (1.79)	$ (1.96)
Weighted average number of shares:
Basic (in shares)	49,343	48,592	42,269
Diluted (in shares)	49,343	48,592	42,269

Consolidated Statements of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (3,248)	$ (87,182)	$ (82,907)
Foreign currency translation adjustment	357	(94)	(237)
Other comprehensive income (loss)	357	(94)	(237)
Comprehensive loss	$ (2,891)	$ (87,276)	$ (83,144)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,248)	$ (87,182)	$ (82,907)
Adjustments to reconcile net loss to net cash used for operating activities:
Depreciation and amortization	4,074	5,066	5,901
Amortization of intangible assets	348	4,128	2,015
Amortization of deferred financing costs	1,593	1,342	360
Stock-based compensation	1,430	3,960	5,897
Accrued interest on Series B redeemable preferred stock	1,441	1,335	1,230
Paid in kind interest	2,508	2,156	947
Deferred income taxes	181	(547)	5,414
Provision for (Reversal of) sales returns reserve	942	(1,677)	2,113
Provision for doubtful accounts	48	144	2
Provision for obsolete inventory	1,676	11,414	1,107
Loss on disposal of property and equipment	9	15	76
Loss on impairment of HyperSound assets	0	63,236	49,822
Changes in operating assets and liabilities:
Accounts receivable	3,109	4,092	1,752
Inventories	(7,496)	(6,966)	11,147
Accounts payable	1,494	(5,057)	(17,287)
Prepaid expenses and other assets	755	245	(712)
Income taxes payable	89	395	(1,700)
Other liabilities	(5,535)	2,071	(310)
Net cash provided by (used for) operating activities	3,418	(1,830)	(15,133)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(4,411)	(3,229)	(6,693)
Net cash used for investing activities	(4,411)	(3,229)	(6,693)
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings on revolving credit facilities	172,694	208,920	217,644
Repayment of revolving credit facilities	(170,132)	(205,468)	(222,054)
Repayment of capital leases	(4)	(41)	(40)
Borrowings on term loan	0	0	15,110
Repayment of term loan	(2,647)	(4,011)	(4,423)
Proceeds from sale of common stock, net of issuance costs	0	5,968	0
Proceeds from exercise of stock options	0	0	731
Debt financing costs	(73)	(1,155)	(2,134)
Proceeds from issuance of subordinated notes	0	0	16,300
Net cash provided by (used for) financing activities	(162)	4,213	21,134
Effect of exchange rate changes on cash and cash equivalents	219	(85)	(102)
Net decrease in cash and cash equivalents	(936)	(931)	(794)
Cash and cash equivalents, beginning of period	6,183	7,114	7,908
Cash and cash equivalents, end of period	5,247	6,183	7,114
SUPPLEMENTAL DISCLOSURE OF INFORMATION
Cash paid for interest	1,975	2,053	1,731
Cash paid for income taxes	0	0	16
Accrual for purchases of property and equipment	183	145	841
Issuance of warrants	$ 0	$ 0	$ 1,983

Consolidated Statement of Stockholders' Equity (Deficit) Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)
Beginning balance, shares at Dec. 31, 2014		42,028,000
Beginning balance at Dec. 31, 2014	$ 131,186	$ 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		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		42,530,000
Ending balance at Dec. 31, 2015	56,652	$ 43	136,693	(79,618)	(466)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(87,182)			(87,182)
Other comprehensive income (loss)	(94)				(94)
Sale of common stock, net of issuance costs, shares		6,700,000
Sale of common stock, net of issuance costs	5,968	$ 6	5,962
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		22,000
Issuance of warrants	0
Stock-based compensation	3,960		3,960
Ending balance, shares at Dec. 31, 2016		49,252,000
Ending balance at Dec. 31, 2016	(20,696)	$ 49	146,615	(166,800)	(560)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,248)			(3,248)
Other comprehensive income (loss)	$ 357				357
Stock options exercised, shares	0
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures		134,000
Issuance of warrants	$ 0
Stock-based compensation	1,430		1,430
Ending balance, shares at Dec. 31, 2017		49,386,000
Ending balance at Dec. 31, 2017	$ (22,157)	$ 49	$ 148,045	$ (170,048)	$ (203)

Equity Offering	12 Months Ended
Equity Offering	Dec. 31, 2017
Equity Offering [Abstract]
Equity Offering	Equity Offering and Private Placement 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, which was not exercised, to purchase up to an additional 750,000 shares of common stock at the Offering Price less the underwriting discount and estimated offering expenses payable by the Company. 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 received net proceeds from the Offering and a side by side private placement of approximately $6.0 million after deducting the underwriting discount and offering expenses of $0.7 million. The Company used 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.

Fair Value Measurement

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016, 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, 2017 and 2016:



	December 31, 2017				December 31, 2016
	Reported		Fair Value		Reported		Fair Value
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents	$	5,247	$	5,247	$	6,183	$	6,183
Credit Facility	$	38,467	$	38,467	$	35,905	$	35,905
Term Loans	$	11,721	$	11,329	$	14,367	$	14,281
Subordinated Debt	$	21,911	$	22,442	$	19,403	$	18,569

Cash equivalents are stated at amortized cost, which approximates fair value as of the consolidated balance sheet dates, due to the short period of time to maturity; and accounts receivable and accounts payable are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment. The carrying value of the Credit Facility and Term Loan Due 2018 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, 2017

Condensed Consolidated Balance Sheet Components [Abstract]

Composition of Certain Financial Statement Items

Inventories

Inventories consist of the following:



	December 31, 2017		December 31, 2016
	(in thousands)
Raw materials	$	837	$	1,680
Finished goods	26,681		20,018
Total inventories	$	27,518	$	21,698

Property and Equipment, net

Property and equipment, net consists of the following:



	December 31, 2017			December 31, 2016
	(in thousands)
Machinery and equipment	$	1,396		$	1,321
Software and software development	383			383
Furniture and fixtures	525			288
Tooling	1,968			1,581
Leasehold improvements	1,318			1,247
Demonstration units and convention booths	11,719			8,172
Total property and equipment, gross	17,309			12,992
Less: accumulated depreciation and amortization	(12,632		)	(8,681		)
Total property and equipment, net	$	4,677		$	4,311

Depreciation and amortization expense on property and equipment, for the years ended December 31, 2017, 2016 and 2015 was $4.1 million, $5.1 million and $5.9 million, respectively.

Other Current Liabilities

Other current liabilities consist of the following:



	December 31, 2017		December 31, 2016
	(in thousands)
Accrued vendor expenses	$	652	$	4,735
Accrued royalty	2,848		3,370
Accrued employee expenses	2,510		2,791
Accrued expenses	5,441		5,518
Total other current liabilities	$	11,451	$	16,414

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Changes in the carrying values of goodwill are as follows:



	(in thousands)
Balance as of January 1, 2016	$	31,152

Impairment Charge (HyperSound)	31,152
Balance as of December 31, 2016	$	—

Acquired Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2017 and December 31, 2016 consist of:



	December 31, 2017
	Gross Carrying Value			Accumulated Amortization			Asset Impairment		Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	4,173		—		1,623
Foreign Currency	(899		)	(680		)	—		(219		)
Total Intangible Assets	$	4,897		$	3,493		$	—	$	1,404



	December 31, 2016
	Gross Carrying Value			Accumulated Amortization			Asset Impairment		Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	3,737		—		2,059
Non-compete agreements	177			177			—		—
In-process Research and Development	27,100			4,074			23,026		—
Developed technology	8,880			802			8,078		—
Trade names	170			92			78		—
Patent and trademarks	967			65			902		—
Foreign Currency	(1,294		)	(853		)	—		(441		)
Total Intangible Assets	$	41,796		$	8,094		$	32,084	$	1,618

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 with the amortization being included within sales and marketing expense.

In January 2014, the merger between VTBH and Turtle Beach (f/k/a Parametric Sound Corporation) was completed. The acquired intangible assets relating to developed technology, customer relationships and trade name were subject to amortization. During 2016, the Company completed an impairment analysis under an income approach that reflected recent events in connection with the strategic options exploration, including the transition to a licensing business model. Based on additional information such as sustained slower than anticipated sales volumes in the HyperSound business and certain plans to reduce operating costs to align with current revenues, the Company materially revised certain revenue growth and margin assumptions based on estimates of future operations. As a result, in conjunction with the completion of the second step of the Company's goodwill impairment analysis, we recorded a $32.1 million impairment charge related to the developed technology, in-process research and development and trade names, which is included as a component of goodwill and intangible asset impairment.

Amortization expense related to definite lived intangible assets of $0.3 million, $4.1 million and $2.0 million for the years ended December 31, 2017, 2016 and 2015, respectively.

As of December 31, 2017, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2018	$	366
2019	307
2020	258
2021	217
2022	182
Thereafter	293
Total	$	1,623

- 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, 2017

Debt Disclosure [Abstract]

Credit Facilities and Long-Term Debt



	December 31, 2017			December 31, 2016
	(in thousands)
Revolving credit facility, maturing March 2019	$	38,467		$	35,905

Term Loan Due 2018	1,923			3,632
Term Loan Due 2019	9,798			10,735
Less unamortized deferred financing fees	759			1,278
Total Term Loans	10,962			13,089

Subordinated notes - related party	21,911			19,403
Less unamortized debt discount	1,075			1,522
Total Subordinated notes	20,836			17,881
Total outstanding debt	70,265			66,875
Less: current portion of revolving line of credit	(38,467		)	(35,905		)
Less: current portion of term loans	(4,173		)	(2,647		)
Total noncurrent portion of long-term debt	$	27,625		$	28,323

Total interest expense, inclusive of amortization of deferred financing costs, on long-term debt obligations was $5.8 million, $5.5 million and $3.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.

Amortization of deferred financing costs was $1.6 million, $1.3 million and $0.4 million for the years ended December 31, 2017, 2016 and 2015, respectively. In connection with the Term Loan Due 2019 and Amended Notes, the Company incurred $5.3 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.

Maturities as of December 31, 2017 for each of the next five years are as follows:



	(in thousands)
2018	$	4,173
2019	29,459
Thereafter	—
Total	$	33,632

Revolving Credit Facility

On March 31, 2014, Turtle Beach and certain of its subsidiaries entered into a new asset-based revolving credit agreement, most recently amended October 31, 2016 (“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 Company and its subsidiaries are required to comply with various customary covenants under the terms of the Credit Facility including, (i) maintaining minimum EBITDA in each trailing twelve month period, (ii) maintaining a Consolidated Leverage Ratio to be measured on the last day of each month, (iii) maintaining certain cash flow levels, in the aggregate and with respect to its HyperSound segment, during each rolling four week period beginning with the period ended October 31, 2016 through December 31, 2018, (iv) limitation on capital expenditures in excess of $5 million in each of the years ending December 31, 2018 and 2019 and (v) in the event the Company’s availability is less than certain specified amounts, obtaining additional funding from the issuance of a subordinated promissory note provided by SG VTB (the “Promissory Note”).

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, 2017, interest rates for outstanding borrowings were 5.75% for base rate loans and 3.74% 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 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 Credit Facility) is in effect will become effective again after the Company has complied with such ratio for six consecutive months.

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

As of December 31, 2017, the Company was in compliance with all the amended financial covenants, and excess borrowing availability was approximately $9.7 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 with Bank of America to enter in to an additional loan (the “Term Loan Due 2018”) for the repayment of $7.7 million of then existing subordinated debt and accrued interest. The Term Loan Due 2018 resulted 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 October 1, 2018, reflecting a six month waiver. Amounts so repaid are recognized by lowering the balance of the term loan tranche and increasing the lower interest rate base revolver amount, with no net impact on borrowing availability.

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, inclusive of a nine month waiver, 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 (as defined in the Term Loan Due 2019) in each trailing twelve month period, (ii) maintaining a Consolidated Leverage Ratio (as defined in the Term Loan Due 2019) to be measured on the last day of each month, (iii) maintaining certain cash flow levels, in the aggregate and with respect to its HyperSound segment, during each rolling four week period beginning with the period ended October 31, 2016 through December 31, 2018, (iv) limitation on capital expenditures in excess of $5 million in each of the years ending December 31, 2018 and 2019, (v) in the event the Company’s availability is less than certain specified amounts, obtaining additional funding from the issuance of a subordinated promissory note provided by SG VTB (the “Promissory Note”), and (vi) 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. 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 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.

As of December 31, 2017, the Company was in compliance with all the amended financial covenants, and the outstanding principal balance was $9.8 million.

Subordination Agreement

On November 16, 2015, as a condition precedent to the Company's lenders permitting the Company 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 shares 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, VTB and VTBH 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. Concurrent with entering into the November Note and Third Lien Guaranty, the Company also issued to SG VTB 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.

On October 31, 2016, in connection with certain amendments to the Credit Facility and Term Loan Due 2019, the Company and SG VTB entered into the Promissory Note, which states that in the event the Company’s availability under the Credit Facility is less than certain specified amounts, the Company may, upon request, at any time until September 29, 2019 require that SG VTB provide a $2 million subordinated loan. Upon issuance, the loan would bear interest at a rate of either (i) LIBOR plus 10.5% per annum or (ii) 12.0%, dependent upon the Company’s compliance with certain financial covenants and would be subordinated to all senior debt of the Company.

In addition, under the terms of the Promissory Note, if and when the funding occurs, as additional consideration the Company would issue to SG VTB a warrant, exercisable for a period of ten years beginning on the date of issuance, to purchase an amount of shares of the Company’s common stock equal to 2.4% of the Company’s then fully diluted shares outstanding at an exercise price equal to the closing price on that date. The warrant would not entitle the holder to any voting rights or other rights as a stockholder of the Company prior to exercise.

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.

March 2018 Amendment

On March 5, 2018, the Company amended and restated its existing Credit Facility, Term Loan Due 2019 and subordinated notes. The amended agreements, among other things, (i) reduce the applicable margin on borrowings, (ii) modify existing financial covenants under the credit facility and term loan with financial maintenance covenants including a customary consolidated leverage ratio, fixed charge coverage ratio and certain limitations on capital expenditures and disbursements

and (iii) provide for the ability to borrow additional terms loans in the future to be used for general working capital purposes (including, the ability to use the delayed draw term loans to pay down the principal amount of the subordinated notes, subject to the satisfaction of certain conditions described therein.

The Credit Facility, which extended a line of credit of up to $60 million to March 5, 2023, reduced the applicable margin to 0.50% to 1.25% for base rate loans and 1.50% to 2.25% for LIBOR loans. The Term Loan Due 2019 provides for an aggregate term loan facility of $12.5 million and extends the maturity date to March 2023, including a delayed draw commitment, and bears interest at a rate per annum equal to the 90-day LIBOR rate plus 6.75%. The subordinated notes will bear in-kind interest at a rate of (i) LIBOR plus 9.1% per annum for the first twenty-four months (or six months (or such date dated provided that the amount of such note is reduced by a specified amount by the six month anniversary of the restatement effective date) with respect to the November Note) and (ii) LIBOR plus 10.5% per annum (or 15.0% with respect to the November Note if the prepayment described above does not occur) thereafter until September 2024.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

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



	Year Ended
	December 31,
	2017		2016			2015
	(in thousands)
Federal:
Current	$	227	$	11		$	(3,218	)
Deferred	—		—			5,153
Total Federal	227		11			1,935
State and Local:
Current	185		149			197
Deferred	—		—			663
Total State and Local	185		149			860
Foreign
Current	—		—			—
Deferred	181		(547		)	(402		)
Total Foreign	181		(547		)	(402		)
Total	$	593	$	(387	)	$	2,393

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,
	2017			2016			2015
	(in thousands)
U.S. Operations	$	(3,722	)	$	(88,084	)	$	(78,643	)
Foreign Operations	1,067			515			(1,871		)
Income (loss) before income taxes	(2,655		)	(87,569		)	(80,514		)
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(929		)	(30,649		)	(28,180		)
State taxes, net of federal benefit	157			113			805
Foreign tax rate differential	(92		)	(522		)	253
Change in valuation allowance	(10,043		)	18,969			8,528
Impairment charge	—			10,903			17,438
Change in Tax Rate	10,526			—			—
Stock compensation	424			230			3,384
Interest on Series B Preferred Stock	504			467			430
Subpart F Income	502			—			—
Excess Tax Benefit Recognized	(782		)	—			—
Prior year adjustment	241			14			518
Change in unrecognized tax benefits	(27		)	(26		)	(1,024		)
Other	112			114			241
Provision (benefit) for income taxes	$	593		$	(387	)	$	2,393

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. The “Tax Cuts and Jobs Act,” enacted in December 2017, reduces the US federal corporate tax rate from 35% to 21% effective January 1, 2018. Consequently, we have re-measured our deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Act. In accordance with SAB 118, the Company recorded a decrease in its net deferred tax assets of $10.5 million with a corresponding decrease to its valuation allowance to account for this rate reduction. The Act also requires a deemed repatriation of foreign earnings and profits, determined as of either November 2, 2017 or December 31, 2017, whichever amount is greater. As such, the Company reported a deemed repatriation of foreign earnings totaling $0.5 million as of December 31, 2017 related to its European subsidiary. 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, 2017			December 31, 2016
	(in thousands)
Allowance for doubtful accounts	$	16		$	52
Inventories	1,028			3,407
Employee benefits	2,347			3,754
Net operating loss	14,766			19,246
Unrecognized tax benefits	676			649
Depreciation and amortization	(54		)	357
Intangible assets	—			209
Other	1,085			1,222
	19,864			28,896
Valuation allowance	(19,502		)	(28,353		)
Net deferred tax assets (liabilities)	$	362		$	543

At December 31, 2017, the Company has $57.4 million of net operating loss carryforwards and $30.6 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 of the Internal Revenue Code of 1986, as amended. 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 domestic deferred tax assets. However, the Company believes there is sufficient evidence to support the utilization of the Company’s international net deferred tax assets totaling $0.4 million and, therefore, no valuation allowance has been set-up against these assets.

In 2017, due to changes in the reporting of stock compensation, the Company’s previously unrecognized excess tax benefit related to the exercise of nonqualified stock options totaling $2.2 million was recognized in deferred tax assets. This increase to deferred tax assets was fully offset by the Company’s valuation allowance.

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



	December 31, 2017		December 31, 2016
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	1,468	$	1,468
Additions based on tax positions related to the current year	—		—
Decreases based on tax positions in a prior period	—		—
Gross unrecognized tax benefit, end of period	$	1,468	$	1,468

The Company recognizes only those tax positions that meet the more-likely-than-not recognition threshold, and establish tax reserves for uncertain tax positions that do not meet this threshold. To the extent these unrecognized tax benefits are ultimately recognized, approximately $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, 2017, the Company had uncertain tax positions of $2.3 million, inclusive of $0.8 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	2014 - 2016
California	2013 - 2016
New Jersey	2013 - 2016
New York	2014 - 2016
Pennsylvania	2014 - 2015
Texas	2013 - 2016
United Kingdom	2014 - 2016

Preferred Stock	12 Months Ended
Preferred Stock	Dec. 31, 2017
Equity [Abstract]
Preferred Stock	Preferred 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, 2017, 2016, and 2015, the Company recognized $1.4 million, $1.3 million and $1.2 million, respectively, of interest expense on the Preferred Stock. The redemption value was $18.9 million and $17.5 million as of December 31, 2017 and 2016, 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, 2017, 2016 and 2015. As of December 31, 2017, 2016, and 2015, 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, 2017

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,
	2017			2016			2015
	(in thousands, expect per-share data)
Net loss	$	(3,248	)	$	(87,182	)	$	(82,907	)

Weighted average common shares outstanding — Basic	49,343			48,592			42,269
Plus incremental shares from assumed conversions:
Dilutive effect of stock options, warrants, unvested awards	—			—			—
Weighted average common shares outstanding — Diluted	49,343			48,592			42,269

Net loss per share :
Basic	$	(0.07	)	$	(1.79	)	$	(1.96	)
Diluted	$	(0.07	)	$	(1.79	)	$	(1.96	)

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,
	2017	2016	2015
	(in thousands)
Stock options	6,356	6,411	6,260
Warrants	3,061	3,071	954
Unvested restricted stock awards	144	120	54
Total	9,561	9,602	7,268

Stock-Based Compensation

12 Months Ended

Dec. 31, 2017

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.

The following table presents the stock activity and the total number of shares available for grant as of December 31, 2017:



	(in thousands)
Balance at December 31, 2016	2,261
Options granted	(1,751	)
Restricted Stock granted	(167	)
Forfeited/Expired shares added back	1,206
Balance at December 31, 2017	1,549

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,
	2017			2016		2015
	(in thousands)
Cost of revenue	$	(66	)	$	557	$	889
Selling and marketing	100			90		320
Research and development	232			561		784
General and administrative	1,164			2,752		3,904
Total stock-based compensation	$	1,430		$	3,960	$	5,897

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).

None of the Company's stock options were exercised for the year ended December 31, 2017 and 2016. The associated tax benefit recognized in the Consolidated Statements of Operations for the fiscal years ended December 31, 2015 was approximately $2.1 million. In 2017, due to changes in the reporting of stock compensation, the Company’s previously unrecognized excess tax benefit related to the exercise of nonqualified stock options totaling $2.2 million was recognized in deferred tax assets.

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, 2016	6,381,447		$	1.9	7.37	$	20,033
Granted	1,750,674		0.68
Exercised	—		—
Forfeited	(1,171,794	)	2.17
Outstanding at December 31, 2017	6,960,327		$	1.55	6.64	$	6
Vested and expected to vest at December 31, 2017	6,734,078		$	1.59	6.58	$	4
Exercisable at December 31, 2017	4,081,307		$	1.95	5.30	$	—

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. There was no aggregate intrinsic value of options exercised for the year ended December 31, 2017.

As of December 31, 2017, total unrecognized compensation cost related to non-vested stock options granted to employees was $1.3 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,
	2017	2016	2015
	(in thousands)
Expected term (in years)	6.1	6.1	6.1
Risk-free interest rate	1.9% - 2.3%	1.1% - 2.3%	1.5% - 1.9%
Expected volatility	38.7%- 41.1%	40.7% - 42.2%	40.8% - 47.1%
Dividend rate	0%	0%	0%

Each of these inputs is subjective and generally requires significant judgment to determine. The risk-free rate is based on a zero-coupon U.S. Treasury rate in effect at the time of grant with maturity dates that coincide with the expected life of the options. The expected life of the options is based on a simplified weighted average taking into account the vesting conditions and 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, 2017, 2016 and 2015 was $0.29, $0.48 and $0.88, respectively. The total estimated fair value of employee options vested during the years ended December 31, 2017, 2016 and 2015 was $1.3 million, $2.4 million and $3.0 million, respectively.

Restricted Stock Activity



	Shares		Weighted Average Grant Date Fair Value Per Share
Nonvested restricted stock at December 31, 2016	135,705		$	1.84
Granted	166,665		0.90
Vested	(91,002	)	2.06
Forfeited	(43,903	)	1.16
Nonvested restricted stock at December 31, 2017	167,465		0.96

As of December 31, 2017 total unrecognized compensation cost related to the nonvested restricted stock awards granted was $0.2 million, which is expected to be recognized over a remaining weighted average vesting period of 0.3 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, 2017 and 2016, 714,347 phantom units at a weighted-average exercise price of $0.93 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, 2017, 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, 2017

Segment Reporting [Abstract]

Segment and Geographic Information

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



	December 31,
	2017			2016			2015
Net Revenues	(in thousands)
Headset	$	148,828		$	173,323		$	161,835
HyperSound	307			655			912
Total	$	149,135		$	173,978		$	162,747

Operating Income (Loss)
Headset	$	6,124		$	8,633		$	(8,698	)
HyperSound	(1,326		)	(86,334		)	(65,701		)
Total	$	4,798		$	(77,701	)	$	(74,399	)
Interest Expense	$	7,916		$	7,447		$	5,099
Other non-operating expense, net	$	(463	)	$	2,421		$	1,016
Loss before income tax expense (benefit)	$	(2,655	)	$	(87,569	)	$	(80,514	)



	December 31, 2017			December 31, 2016
Total Assets	(in thousands)
Headset	$	94,114		$	94,081
HyperSound (1)	26,787			31,233
Eliminations	(26,650		)	(30,514		)
Total	$	94,251		$	94,800

(1) At December 31, 2017, HyperSound assets excluding eliminations totaled $0.1 million.

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



	Year Ended
	December 31,
	2017		2016		2015
	(in thousands)
North America	$	103,159	$	130,371	$	117,526
United Kingdom	21,113		21,778		20,881
Europe	20,277		15,729		17,329
Other	4,586		6,100		7,011
Total net revenue	$	149,135	$	173,978	$	162,747

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



	Year Ended
	December 31,
	2017		2016
	(in thousands)
United States	$	4,504	$	3,986
International	173		325
Total	$	4,677	$	4,311

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

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 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 was appealed to the Nevada Supreme Court. On September 14, 2017, a unanimous en banc panel of the Nevada Supreme Court granted defendants’ petition for writ of mandamus and ordered the trial court to dismiss the complaint, but did provide a limited basis upon which plaintiffs could seek to amend their complaint. Plaintiffs filed an amended complaint on December 1, 2017, and motions to dismiss were filed on January 2, 2018. The court will hear those motions on March 12, 2018. 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 Series B Preferred Stock 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 preferred 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. In January of 2017, Dr. Bonanno filed a complaint in New York state court alleging breach of contract against VTBH and seeking a declaratory judgment that he is entitled to damages and specific performance, including redemption of his stock. VTBH answered the complaint on March 7, 2017. At the order of the Court, the parties filed cross-motions for summary judgment on March 31, 2017, on the sole question of whether the Merger was a defined event in the purported contract entitling Dr. Bonnano to redemption of his shares. The cross-motions for summary judgment were fully briefed and heard on July 6, 2017. On September 1, 2017, the Court denied Defendant’s motion for summary judgment and granted Plaintiff’s motion for partial summary judgment. On October 5, 2017, a status conference was held that set a pre-trial schedule such that all merits and expert discovery will conclude on May 3, 2018 and a trial readiness conference will be held on May 4, 2018. On October 11, 2017, VTBH filed a motion to reargue plaintiff’s motion defenses to liability remain available, which was granted. On the same day, Defendant filed a notice of appeal of the Court’s decision on summary judgment in its entirety. The plaintiff’s ability to recover any damages is subject to certain limitations, including, but not limited to, legally available funds. VTBH maintains that the Merger did not trigger any obligation to redeem Mr. Bonanno's preferred stock.

Commercial Dispute: On July 20, 2016, Bigben Interactive S.A. (“BigBen”) filed a statement of claim before the Regional Court of Berlin, Germany against VTB, which statement of claim was formally serviced upon VTB on June 28, 2017. The statement of claim alleges that VTB’s termination of a distribution agreement by and between BigBen and VTB breached the terms thereof and was invalid, and that BigBen is entitled to damages amounting to damages amounting to €5.0 million plus accrued interests thereon plus certain additional damages as a result of such invalid termination. VTB filed its statement of defense with the court on September 21, 2017. VTB maintains that its termination of the agreement was valid and that BigBen’s claims against it are without merit. VTB's statement of defense was submitted to the plaintiff and the court has granted the option to submit a further written statement in reply to the statement of defense.

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, 2017 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, 2017, are as follows:



	(in thousands)
2018	$	984
2019	789
2020	505
2021	281
2022	104
Total	$	2,663

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,
	2017			2016			2015
	(in thousands)
Warranty, beginning of period	$	639		$	580		$	493
Warranty costs accrued	310			702			693
Settlements of warranty claims	(477		)	(643		)	(606		)
Warranty, end of period	$	472		$	639		$	580

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, 2017 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 has attempted to notify directly each of the affected purchasers to instruct them to participate in the recall. By letter dated August 23, 2017, CPSC staff notified the Company that the staff does not intend to seek penalties against the Company at this time for the post-recall sale, offer for sale or distribution in commerce of recalled headsets.

Selected Quarterly Financial Data - Unaudited

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Data - Unaudited



Fiscal 2017	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	14,352		$	19,112		$	35,975		$	79,696
Gross Margin	2,216			6,301			12,538			29,948
Net Income (Loss)	(9,926		)	(7,061		)	(492		)	14,231
Earnings (Loss) Per Share
Basic	$	(0.20	)	$	(0.14	)	$	(0.01	)	$	0.29
Diluted	$	(0.20	)	$	(0.14	)	$	(0.01	)	$	0.29



Fiscal 2016	Quarter
	First			Second (1)			Third (1)			Fourth
	(in thousands, except per share data)
Net Revenue	$	24,028		$	29,362		$	38,384		$	82,204
Gross Margin	3,362			5,113			3,927			30,208
Net Income (Loss)	(12,011		)	(42,573		)	(44,799		)	12,201
Earnings (Loss) Per Share
Basic	$	(0.26	)	$	(0.86	)	$	(0.91	)	$	0.25
Diluted	$	(0.26	)	$	(0.86	)	$	(0.91	)	$	0.25

(1) Includes goodwill and other intangible impairment charges related to the HyperSound business of $32.1 million and $31.2 million for the three months ended June 30, 2016 and September 30, 2016, respectively.

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2017

Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Turtle Beach Corporation

Schedule II - Valuation and Qualifying Accounts

Years ended December 31, 2017, 2016 and 2015




Description	Balance - Begin		Additions		Deductions / Other			Balance - End
Year Ended December 31, 2017:	(in thousands)
Allowance for sales returns	$	4,591	$	10,457	$	(9,515	)	$	5,533
Allowance for cash discounts	8,056		17,967		(18,464		)	7,559
Allowance for doubtful accounts	136		49		(122		)	63
								$	13,155
Year Ended December 31, 2016:
Allowance for sales returns	$	6,268	$	12,819	$	(14,496	)	$	4,591
Allowance for cash discounts	7,459		16,678		(16,081		)	8,056
Allowance for doubtful accounts	102		144		(110		)	136
								$	12,783
Year Ended December 31, 2015:
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

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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.

Use of Estimates

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

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.

Sales Return Reserve

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;
Global supply chain personnel costs;		Sales commissions, advertising and marketing costs.
Product royalty 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.

Cooperative Advertising

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.

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 “Other non-operating (income) expense, net.”

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.

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 its merger in 2014, the Company performed a valuation of the acquired goodwill and intangible assets and recorded $81.0 million of goodwill and $36.4 million of intangible assets based on the fair values of the assets acquired and liabilities assumed. During 2016 and 2015, as a result of the Company's impairment assessments, the Company recorded a $63.2 million goodwill and other intangibles impairment charge and a $49.8 million goodwill impairment charge, respectively, which resulted in no remaining carrying value as of December 31, 2016.

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, based on enacted tax laws and statutory tax rates applicable to the periods in which the Company expects the temporary differences to reverse. 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, 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.

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 (income) 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 43% of our gross sales in the aggregate for the year ended December 31, 2017, or individually 16%, 14% and 13%, compared to 16%, 17% and 17% in 2016 and 14%, 15% and 18% in 2015. In addition, two customers accounted for 25% and 29% of accounts receivable as of December 31, 2017 and 30% and 27% for December 31, 2016.

Concentrations of credit risk with respect to accounts receivable are mitigated 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.

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. In July 2015, the FASB deferred the effective date of the standard by one year to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. The new standard will require certain price concessions and right of return arrangements to be recorded as part of the transaction price determination. The Company has identified, and is in the process of implementing, appropriate changes to its business processes, systems and controls to support recognition and disclosure under the new standard. The Company will adopt the new standard on January 1, 2018 under the the modified retrospective method of adoption, reflecting the cumulative effect of initially applying the new standard to revenue recognition in the first quarter of 2018. Based on the information we have evaluated to date, we do not believe the standard will materially impact our recognition of revenue from our headset business. That said the Company estimates the adjustment will result in a reduction to the opening balance of retained earnings of approximately $0.5 million.

In February 2016, the FASB issued ASU No. 2016-02, Leases, that introduces the recognition of a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term and, a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis for all leases (with the exception of short-term leases). The guidance will be effective for public companies for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company has not yet selected a transition method or determined the effect on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation, which requires excess tax benefits and tax deficiencies, which arise due to differences between the measure of compensation expense and the amount deductible for tax purposes, to be recorded directly through earnings as a component of income tax expense. Previously, these differences were generally recorded in additional paid-in capital and thus had no impact on net income. Additionally, this guidance permits entities to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards. Forfeitures can be estimated, as allowed under previous standards, or recognized when they occur. The standard was effective for interim and annual reporting periods beginning after December 15, 2016. The Company adopted this standard on January 1, 2017 and the standard did not have a material impact on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), which attempts to reduce the existing diversity in practice with respect to reporting the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company on January 1, 2018. The Company does not believe the guidance will have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting to provide clarity and reduce diversity in practice and cost and complexity when applying the guidance to a change to the terms or conditions of a share-based payment award. The amendments state that an entity will not have to account for the effects of a modification if: (i) the fair value of the modified award is the same immediately before and after the modification; (ii) the vesting conditions of the modified award are the same immediately before and after the modification; and (iii) the classification of the modified award as either an equity instrument or liability instrument is the same immediately before and after the modification. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period. The adoption of this guidance is not expected to have a material impact upon our financial condition or results of operations.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017			December 31, 2016
	(in thousands)
Machinery and equipment	$	1,396		$	1,321
Software and software development	383			383
Furniture and fixtures	525			288
Tooling	1,968			1,581
Leasehold improvements	1,318			1,247
Demonstration units and convention booths	11,719			8,172
Total property and equipment, gross	17,309			12,992
Less: accumulated depreciation and amortization	(12,632		)	(8,681		)
Total property and equipment, net	$	4,677		$	4,311

Fair Value Measurement (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016:



	December 31, 2017				December 31, 2016
	Reported		Fair Value		Reported		Fair Value
	(in thousands)
Financial Assets and Liabilities:
Cash and cash equivalents	$	5,247	$	5,247	$	6,183	$	6,183
Credit Facility	$	38,467	$	38,467	$	35,905	$	35,905
Term Loans	$	11,721	$	11,329	$	14,367	$	14,281
Subordinated Debt	$	21,911	$	22,442	$	19,403	$	18,569

Composition of Certain Financial Statement Items (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Consolidated Balance Sheet Components [Abstract]

Schedule of inventory

Inventories consist of the following:



	December 31, 2017		December 31, 2016
	(in thousands)
Raw materials	$	837	$	1,680
Finished goods	26,681		20,018
Total inventories	$	27,518	$	21,698

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, 2017			December 31, 2016
	(in thousands)
Machinery and equipment	$	1,396		$	1,321
Software and software development	383			383
Furniture and fixtures	525			288
Tooling	1,968			1,581
Leasehold improvements	1,318			1,247
Demonstration units and convention booths	11,719			8,172
Total property and equipment, gross	17,309			12,992
Less: accumulated depreciation and amortization	(12,632		)	(8,681		)
Total property and equipment, net	$	4,677		$	4,311

Other Current Liabilities [Table Text Block]

Other current liabilities consist of the following:



	December 31, 2017		December 31, 2016
	(in thousands)
Accrued vendor expenses	$	652	$	4,735
Accrued royalty	2,848		3,370
Accrued employee expenses	2,510		2,791
Accrued expenses	5,441		5,518
Total other current liabilities	$	11,451	$	16,414

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying values of goodwill are as follows:



	(in thousands)
Balance as of January 1, 2016	$	31,152

Impairment Charge (HyperSound)	31,152
Balance as of December 31, 2016	$	—

Schedule of Intangible Assets

Acquired identifiable intangible assets, and related accumulated amortization, as of December 31, 2017 and December 31, 2016 consist of:



	December 31, 2017
	Gross Carrying Value			Accumulated Amortization			Asset Impairment		Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	4,173		—		1,623
Foreign Currency	(899		)	(680		)	—		(219		)
Total Intangible Assets	$	4,897		$	3,493		$	—	$	1,404



	December 31, 2016
	Gross Carrying Value			Accumulated Amortization			Asset Impairment		Net Book Value
	(in thousands)
Customer relationships	$	5,796		$	3,737		—		2,059
Non-compete agreements	177			177			—		—
In-process Research and Development	27,100			4,074			23,026		—
Developed technology	8,880			802			8,078		—
Trade names	170			92			78		—
Patent and trademarks	967			65			902		—
Foreign Currency	(1,294		)	(853		)	—		(441		)
Total Intangible Assets	$	41,796		$	8,094		$	32,084	$	1,618

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

As of December 31, 2017, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:



	(in thousands)
2018	$	366
2019	307
2020	258
2021	217
2022	182
Thereafter	293
Total	$	1,623

Credit Facilities and Long-Term Debt (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments



	December 31, 2017			December 31, 2016
	(in thousands)
Revolving credit facility, maturing March 2019	$	38,467		$	35,905

Term Loan Due 2018	1,923			3,632
Term Loan Due 2019	9,798			10,735
Less unamortized deferred financing fees	759			1,278
Total Term Loans	10,962			13,089

Subordinated notes - related party	21,911			19,403
Less unamortized debt discount	1,075			1,522
Total Subordinated notes	20,836			17,881
Total outstanding debt	70,265			66,875
Less: current portion of revolving line of credit	(38,467		)	(35,905		)
Less: current portion of term loans	(4,173		)	(2,647		)
Total noncurrent portion of long-term debt	$	27,625		$	28,323

- 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=84159872&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=75038535&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=64930739&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=84159872&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=84159872&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=64930785&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=64930785&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=84159872&loc=d3e21521-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule of income tax (benefit)

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



	Year Ended
	December 31,
	2017		2016			2015
	(in thousands)
Federal:
Current	$	227	$	11		$	(3,218	)
Deferred	—		—			5,153
Total Federal	227		11			1,935
State and Local:
Current	185		149			197
Deferred	—		—			663
Total State and Local	185		149			860
Foreign
Current	—		—			—
Deferred	181		(547		)	(402		)
Total Foreign	181		(547		)	(402		)
Total	$	593	$	(387	)	$	2,393

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,
	2017			2016			2015
	(in thousands)
U.S. Operations	$	(3,722	)	$	(88,084	)	$	(78,643	)
Foreign Operations	1,067			515			(1,871		)
Income (loss) before income taxes	(2,655		)	(87,569		)	(80,514		)
Federal statutory rate	35		%	35		%	35		%
Provision for income taxes at federal statutory rate	(929		)	(30,649		)	(28,180		)
State taxes, net of federal benefit	157			113			805
Foreign tax rate differential	(92		)	(522		)	253
Change in valuation allowance	(10,043		)	18,969			8,528
Impairment charge	—			10,903			17,438
Change in Tax Rate	10,526			—			—
Stock compensation	424			230			3,384
Interest on Series B Preferred Stock	504			467			430
Subpart F Income	502			—			—
Excess Tax Benefit Recognized	(782		)	—			—
Prior year adjustment	241			14			518
Change in unrecognized tax benefits	(27		)	(26		)	(1,024		)
Other	112			114			241
Provision (benefit) for income taxes	$	593		$	(387	)	$	2,393

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, 2017			December 31, 2016
	(in thousands)
Allowance for doubtful accounts	$	16		$	52
Inventories	1,028			3,407
Employee benefits	2,347			3,754
Net operating loss	14,766			19,246
Unrecognized tax benefits	676			649
Depreciation and amortization	(54		)	357
Intangible assets	—			209
Other	1,085			1,222
	19,864			28,896
Valuation allowance	(19,502		)	(28,353		)
Net deferred tax assets (liabilities)	$	362		$	543

Schedule of unrecognized tax benefits roll forward

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



	December 31, 2017		December 31, 2016
	(in thousands)
Gross unrecognized tax benefit, beginning of period	$	1,468	$	1,468
Additions based on tax positions related to the current year	—		—
Decreases based on tax positions in a prior period	—		—
Gross unrecognized tax benefit, end of period	$	1,468	$	1,468

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	2014 - 2016
California	2013 - 2016
New Jersey	2013 - 2016
New York	2014 - 2016
Pennsylvania	2014 - 2015
Texas	2013 - 2016
United Kingdom	2014 - 2016

Net Income (Loss) Per Share (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
	(in thousands, expect per-share data)
Net loss	$	(3,248	)	$	(87,182	)	$	(82,907	)

Weighted average common shares outstanding — Basic	49,343			48,592			42,269
Plus incremental shares from assumed conversions:
Dilutive effect of stock options, warrants, unvested awards	—			—			—
Weighted average common shares outstanding — Diluted	49,343			48,592			42,269

Net loss per share :
Basic	$	(0.07	)	$	(1.79	)	$	(1.96	)
Diluted	$	(0.07	)	$	(1.79	)	$	(1.96	)

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,
	2017	2016	2015
	(in thousands)
Stock options	6,356	6,411	6,260
Warrants	3,061	3,071	954
Unvested restricted stock awards	144	120	54
Total	9,561	9,602	7,268

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017:



	(in thousands)
Balance at December 31, 2016	2,261
Options granted	(1,751	)
Restricted Stock granted	(167	)
Forfeited/Expired shares added back	1,206
Balance at December 31, 2017	1,549

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,
	2017			2016		2015
	(in thousands)
Cost of revenue	$	(66	)	$	557	$	889
Selling and marketing	100			90		320
Research and development	232			561		784
General and administrative	1,164			2,752		3,904
Total stock-based compensation	$	1,430		$	3,960	$	5,897

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, 2016	6,381,447		$	1.9	7.37	$	20,033
Granted	1,750,674		0.68
Exercised	—		—
Forfeited	(1,171,794	)	2.17
Outstanding at December 31, 2017	6,960,327		$	1.55	6.64	$	6
Vested and expected to vest at December 31, 2017	6,734,078		$	1.59	6.58	$	4
Exercisable at December 31, 2017	4,081,307		$	1.95	5.30	$	—

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,
	2017	2016	2015
	(in thousands)
Expected term (in years)	6.1	6.1	6.1
Risk-free interest rate	1.9% - 2.3%	1.1% - 2.3%	1.5% - 1.9%
Expected volatility	38.7%- 41.1%	40.7% - 42.2%	40.8% - 47.1%
Dividend rate	0%	0%	0%

Unvested restricted stock awards

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

Stock option activity



	Shares		Weighted Average Grant Date Fair Value Per Share
Nonvested restricted stock at December 31, 2016	135,705		$	1.84
Granted	166,665		0.90
Vested	(91,002	)	2.06
Forfeited	(43,903	)	1.16
Nonvested restricted stock at December 31, 2017	167,465		0.96

Segment and Geographical Information (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
Net Revenues	(in thousands)
Headset	$	148,828		$	173,323		$	161,835
HyperSound	307			655			912
Total	$	149,135		$	173,978		$	162,747

Operating Income (Loss)
Headset	$	6,124		$	8,633		$	(8,698	)
HyperSound	(1,326		)	(86,334		)	(65,701		)
Total	$	4,798		$	(77,701	)	$	(74,399	)
Interest Expense	$	7,916		$	7,447		$	5,099
Other non-operating expense, net	$	(463	)	$	2,421		$	1,016
Loss before income tax expense (benefit)	$	(2,655	)	$	(87,569	)	$	(80,514	)

Total Assets by Segment



	December 31, 2017			December 31, 2016
Total Assets	(in thousands)
Headset	$	94,114		$	94,081
HyperSound (1)	26,787			31,233
Eliminations	(26,650		)	(30,514		)
Total	$	94,251		$	94,800

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,
	2017		2016		2015
	(in thousands)
North America	$	103,159	$	130,371	$	117,526
United Kingdom	21,113		21,778		20,881
Europe	20,277		15,729		17,329
Other	4,586		6,100		7,011
Total net revenue	$	149,135	$	173,978	$	162,747

Property and Equipment Based on Location

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



	Year Ended
	December 31,
	2017		2016
	(in thousands)
United States	$	4,504	$	3,986
International	173		325
Total	$	4,677	$	4,311

Commitment and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases



	(in thousands)
2018	$	984
2019	789
2020	505
2021	281
2022	104
Total	$	2,663

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,
	2017			2016			2015
	(in thousands)
Warranty, beginning of period	$	639		$	580		$	493
Warranty costs accrued	310			702			693
Settlements of warranty claims	(477		)	(643		)	(606		)
Warranty, end of period	$	472		$	639		$	580

Selected Quarterly Financial Data - Unaudited (Tables)

12 Months Ended

Dec. 31, 2017

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Financial Information - Unaudited



Fiscal 2017	Quarter
	First			Second			Third			Fourth
	(in thousands, except per share data)
Net Revenue	$	14,352		$	19,112		$	35,975		$	79,696
Gross Margin	2,216			6,301			12,538			29,948
Net Income (Loss)	(9,926		)	(7,061		)	(492		)	14,231
Earnings (Loss) Per Share
Basic	$	(0.20	)	$	(0.14	)	$	(0.01	)	$	0.29
Diluted	$	(0.20	)	$	(0.14	)	$	(0.01	)	$	0.29



Fiscal 2016	Quarter
	First			Second (1)			Third (1)			Fourth
	(in thousands, except per share data)
Net Revenue	$	24,028		$	29,362		$	38,384		$	82,204
Gross Margin	3,362			5,113			3,927			30,208
Net Income (Loss)	(12,011		)	(42,573		)	(44,799		)	12,201
Earnings (Loss) Per Share
Basic	$	(0.26	)	$	(0.86	)	$	(0.91	)	$	0.25
Diluted	$	(0.26	)	$	(0.86	)	$	(0.91	)	$	0.25

Summary of Significant Accounting Policies - Basis of Presentation (Details) - USD ($) $ / shares in Units, $ in Millions	Jan. 01, 2018	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 0.5
Common stock par value (in dollars per share)		$ 0.001	$ 0.001

Summary of Significant Accounting Policies - Property and Equipment, Net (Details)	12 Months Ended
	Dec. 31, 2017
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	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Impairment of Intangible Assets (Excluding Goodwill)		$ 31,152	$ 32,100
Goodwill and Intangible Asset Impairment				$ 0	$ 63,236	$ 49,822
Goodwill				$ 0	$ 0	$ 31,152
Merger of VTB Holdings, Inc. and Parametric Sound Corporation
Business Acquisition [Line Items]
Goodwill acquired	$ 81,000
Indefinite-lived Intangible Assets Acquired	$ 36,400

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017 USD ($) customer	Dec. 31, 2016 USD ($) customer	Dec. 31, 2015 USD ($) customer	Dec. 31, 2014 USD ($)
Revenue, Major Customer [Line Items]
Cash and cash equivalents \| $	$ 5,247	$ 6,183	$ 7,114	$ 7,908
Foreign Countries
Revenue, Major Customer [Line Items]
Cash and cash equivalents \| $	$ 100	$ 200
Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Number of customers \| customer	3	3	3
Concentration risk, percentage	43.00%
Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Number of customers \| customer	2	2	2
Customer One \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	16.00%	16.00%	14.00%
Customer One \| Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	29.00%	27.00%
Customer Two \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	14.00%		15.00%
Customer Three \| Sales Revenue, Net \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	13.00%	17.00%	18.00%
Customer Three \| Accounts Receivable \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Concentration risk, percentage	25.00%	30.00%

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, 2017	Dec. 31, 2016	Dec. 31, 2015
Equity Offering [Line Items]
Proceeds from sale of common stock, net of issuance costs		$ 6,000		$ 0	$ 5,968	$ 0
Payments of Stock Issuance Costs		$ 700
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
30-day option granted to underwriters to purchase additional stock
Equity Offering [Line Items]
Number of shares issued in transaction	750,000
Private placement
Equity Offering [Line Items]
Number of shares issued in transaction			1,700,000
Share price (in dollars per share)			$ 1.00

Fair Value Measurement (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 5,247	$ 6,183
Reported Value Measurement \| Revolving credit facilities \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	38,467	35,905
Reported Value Measurement \| Term loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	11,721	14,367
Reported Value Measurement \| Subordinated Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	21,911	19,403
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	5,247	6,183
Estimate of Fair Value Measurement \| Revolving credit facilities \| Revolving credit facility
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	38,467	35,905
Estimate of Fair Value Measurement \| Term loans
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	11,329	14,281
Estimate of Fair Value Measurement \| Subordinated Debt
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Debt instruments	$ 22,442	$ 18,569

Allowance for Sales Returns - Summary of Allowance for Sales Returns (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 12,783	$ 13,829
Balance, end of period	13,155	12,783	$ 13,829
Allowance for sales returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	4,591	6,268	4,155
Reserve accrual	10,457	12,819	17,108
Recoveries and deductions, net	(9,515)	(14,496)	(14,995)
Balance, end of period	$ 5,533	$ 4,591	$ 6,268

Composition of Certain Financial Statement Items - Inventory (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheet Components [Abstract]
Raw materials	$ 837	$ 1,680
Finished goods	26,681	20,018
Total inventories	$ 27,518	$ 21,698

Composition of Certain Financial Statement Items - Property and equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 17,309	$ 12,992
Less: accumulated depreciation and amortization	(12,632)	(8,681)
Total property and equipment, net	4,677	4,311
Depreciation and amortization	4,074	5,066	$ 5,901
Machinery and equipment
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,396	1,321
Software and software development
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	383	383
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	525	288
Tooling
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,968	1,581
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	1,318	1,247
Demonstration units and convention booths
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 11,719	$ 8,172

Composition of Certain Financial Statement Items -Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Condensed Consolidated Balance Sheet Components [Abstract]
Accrued Vendor Expenses, Current	$ 652	$ 4,735
Accrued Royalties, Current	2,848	3,370
Employee-related Liabilities, Current	2,510	2,791
Other Accrued Liabilities, Current	5,441	5,518
Other current liabilities	$ 11,451	$ 16,414

Goodwill and Other Intangible Assets - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets
Accumulated Amortization	$ 3,493	$ 8,094
Intangible, Impaired, Accumulated Impairment Loss	0	32,084
Total	1,623
Indefinite-Lived Intangible Assets
Total intangible assets, gross carrying value	4,897	41,796
Total intangible assets, net book value	1,404	1,618
Customer relationships
Finite-Lived Intangible Assets
Gross Carrying Value	5,796	5,796
Accumulated Amortization	4,173	3,737
Intangible, Impaired, Accumulated Impairment Loss	0	0
Total	1,623	2,059
Non-compete agreements
Finite-Lived Intangible Assets
Gross Carrying Value		177
Accumulated Amortization		177
Intangible, Impaired, Accumulated Impairment Loss		0
Total		0
In-process research and development (IPR&D)
Finite-Lived Intangible Assets
Gross Carrying Value		27,100
Accumulated Amortization		4,074
Intangible, Impaired, Accumulated Impairment Loss		23,026
Total		0
Developed technology
Finite-Lived Intangible Assets
Gross Carrying Value		8,880
Accumulated Amortization		802
Intangible, Impaired, Accumulated Impairment Loss		8,078
Total		0
Trade names
Finite-Lived Intangible Assets
Gross Carrying Value		170
Accumulated Amortization		92
Intangible, Impaired, Accumulated Impairment Loss		78
Total		0
Patent and trademarks
Finite-Lived Intangible Assets
Gross Carrying Value		967
Accumulated Amortization		65
Intangible, Impaired, Accumulated Impairment Loss		902
Total		0
Foreign Currency
Finite-Lived Intangible Assets
Gross Carrying Value	(899)	(1,294)
Accumulated Amortization	(680)	(853)
Intangible, Impaired, Accumulated Impairment Loss	0	0
Total	$ (219)	$ (441)

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract]
2016	$ 366
2017	307
2018	258
2019	217
2020	182
Thereafter	293
Total	$ 1,623

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 31, 2012	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Impairment of Intangible Assets (Excluding Goodwill)		$ 31,152	$ 32,100
Intangible, Impaired, Accumulated Impairment Loss				$ 0	$ 32,084
Amortization of intangible assets				348	4,128	$ 2,015
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible, Impaired, Accumulated Impairment Loss				$ 0	0
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Intangible, Impaired, Accumulated Impairment Loss					0
Developed technology
Finite-Lived Intangible Assets [Line Items]
Intangible, Impaired, Accumulated Impairment Loss					8,078
Trade names
Finite-Lived Intangible Assets [Line Items]
Intangible, Impaired, Accumulated Impairment Loss					78
In-process research and development (IPR&D)
Finite-Lived Intangible Assets [Line Items]
Intangible, Impaired, Accumulated Impairment Loss					$ 23,026
Acquisition of Lygo International Limited \| Customer relationships
Finite-Lived Intangible Assets [Line Items]
Useful life (in years)	13 years

Credit Facilities and Long-Term Debt - Summary of Credit Facilities and Long-Term Debt (Details) - USD ($)				12 Months Ended
	Mar. 05, 2018	Jul. 22, 2015	Mar. 31, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 16, 2015
Debt Instrument [Line Items]
Total outstanding debt				$ 70,265,000	$ 66,875,000
Total noncurrent portion of long-term debt				27,625,000	28,323,000
Interest expense				5,800,000	5,500,000	$ 3,500,000
Amortization of deferred financing costs				$ 1,593,000	1,342,000	$ 360,000
Financing costs		$ 5,300,000
Fair value of warrants		2,000,000
Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Date				Mar. 31, 2019
Revolving credit facilities \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Total outstanding debt				$ 38,467,000	35,905,000
Current maturities of outstanding debt				(38,467,000)	(35,905,000)
Term loans
Debt Instrument [Line Items]
Total outstanding debt				10,962,000	13,089,000
Current maturities of outstanding debt				(4,173,000)	(2,647,000)
Subordinated Debt
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount				1,075,000	1,522,000
Total outstanding debt				21,911,000	19,403,000
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
Total outstanding debt				20,836,000	17,881,000
Term Loan Due 2018 [Member]
Debt Instrument [Line Items]
Total outstanding debt				1,923,000	3,632,000
Term Loan Due 2019
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense				759,000	1,278,000
Total outstanding debt		$ 15,000,000		$ 9,798,000	$ 10,735,000
Subsequent Event [Member] \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Line of Credit Facility, Expiration Date	Mar. 05, 2023
Subsequent Event [Member] \| Term Loan Due 2019
Debt Instrument [Line Items]
Total outstanding debt	$ 12,500,000.0
Maximum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate			2.50%
Minimum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%
London Interbank Offered Rate (LIBOR) [Member] \| Term Loan Due 2019
Debt Instrument [Line Items]
Basis spread on variable rate		10.25%
London Interbank Offered Rate (LIBOR) [Member] \| Subsequent Event [Member] \| Term Loan Due 2019
Debt Instrument [Line Items]
Basis spread on variable rate	6.75%
London Interbank Offered Rate (LIBOR) [Member] \| Maximum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate				2.50%
London Interbank Offered Rate (LIBOR) [Member] \| Maximum \| Subsequent Event [Member] \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate	2.25%
London Interbank Offered Rate (LIBOR) [Member] \| Minimum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate				2.00%
London Interbank Offered Rate (LIBOR) [Member] \| Minimum \| Subsequent Event [Member] \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
Base rate \| Maximum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate				1.50%
Base rate \| Maximum \| Subsequent Event [Member] \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Base rate \| Minimum \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate				1.00%
Base rate \| Minimum \| Subsequent Event [Member] \| Revolving credit facility, maturing March 2019
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
Chief Executive Officer, Director,and Shareholder \| VTB Holdings, Inc \| London Interbank Offered Rate (LIBOR) [Member] \| Subordinated Debt
Debt Instrument [Line Items]
Basis spread on variable rate		10.50%
Chief Executive Officer, Director,and Shareholder \| VTB Holdings, Inc \| Initial Term [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Subsequent Event [Member] \| Subordinated Debt
Debt Instrument [Line Items]
Basis spread on variable rate	9.10%
Chief Executive Officer, Director,and Shareholder \| VTB Holdings, Inc \| Subsequent Term [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Subsequent Event [Member] \| Subordinated Debt
Debt Instrument [Line Items]
Basis spread on variable rate	10.50%
Issuance of November Note \| Chief Executive Officer, Director,and Shareholder \| VTB Holdings, Inc \| Subordinated Debt
Debt Instrument [Line Items]
Stated interest rate							15.00%
Issuance of November Note \| Chief Executive Officer, Director,and Shareholder \| VTB Holdings, Inc \| Subsequent Event [Member] \| Subordinated Debt
Debt Instrument [Line Items]
Stated interest rate	15.00%

Credit Facilities and Long-Term Debt - Revolving Credit Facility (Details) - Revolving credit facility, maturing March 2019		12 Months Ended
	Mar. 31, 2014	Dec. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Line of Credit Facility, Expiration Date		Mar. 31, 2019
Maximum borrowing capacity		$ 60,000,000
Debt instrument, covenant, current fixed charge ratio required, minimum		1.15
Remaining borrowing capacity		$ 9,700,000
Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.00%
Unused commitment fee, percent		0.25%
Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Unused commitment fee, percent		0.50%
Base rate
Line of Credit Facility [Line Items]
Interest rate at period end		5.75%
Base rate \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.00%
Base rate \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		1.50%
London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Interest rate at period end		3.74%
London Interbank Offered Rate (LIBOR) [Member] \| Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.00%
London Interbank Offered Rate (LIBOR) [Member] \| Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate		2.50%
UK Borrower
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 10,000,000

Credit Facilities and Long-Term Debt - Term Loans (Details) - USD ($) $ / shares in Units, shares in Millions					12 Months Ended
	Nov. 02, 2015	Jul. 22, 2015	Jun. 17, 2015	Dec. 29, 2014	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 08, 2015
Line of Credit Facility [Line Items]
Outstanding debt					$ 70,265,000	$ 66,875,000
Repayments of loans					2,647,000	4,011,000	$ 4,423,000
Warrants outstanding		1.7
Exercise price of warrants (in dollars per share)		$ 2.54
Term Loan Due 2019
Line of Credit Facility [Line Items]
Outstanding debt		$ 15,000,000			9,798,000	10,735,000
Maturity date		Jun. 28, 2019
Repayments of loans	$ 2,500,000
Term Loan Due 2019 \| Years Ended December 31, 2016, 2017, 2018, 2019
Line of Credit Facility [Line Items]
Maximum capital expenditures		$ 5,000,000
Subordinated Debt
Line of Credit Facility [Line Items]
Outstanding debt					$ 21,911,000	$ 19,403,000
London Interbank Offered Rate (LIBOR) [Member] \| 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%
Term loans
Line of Credit Facility [Line Items]
Principal amount permitted to be repaid				$ 7,700,000
Term loans \| London Interbank Offered Rate (LIBOR) [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate				5.00%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Subordinated Debt
Line of Credit Facility [Line Items]
Maturity date		Sep. 29, 2019
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| London Interbank Offered Rate (LIBOR) [Member] \| Subordinated Debt
Line of Credit Facility [Line Items]
Basis spread on variable rate		10.50%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of June Note \| Subordinated Debt
Line of Credit Facility [Line Items]
Outstanding debt								$ 9,000,000
Maturity date			Sep. 17, 2015

Credit Facilities and Long-Term Debt - Subordinated Notes - Related Party (Details) $ / shares in Units, shares in Millions	Oct. 31, 2016 USD ($)	Nov. 16, 2015 USD ($)	Jul. 22, 2015 $ / shares shares	Jun. 17, 2015 USD ($) extension	May 13, 2015 USD ($) extension	Apr. 23, 2015 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Jul. 08, 2015 USD ($)
Debt Instrument [Line Items]
Outstanding debt							$ 70,265,000	$ 66,875,000
Warrants outstanding \| shares			1.7
Exercise price of warrants (in dollars per share) \| $ / shares			$ 2.54
Subordinated Debt
Debt Instrument [Line Items]
Outstanding debt							$ 21,911,000	$ 19,403,000
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 \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate			10.50%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Promissory Note [Member]
Debt Instrument [Line Items]
Stated interest rate	12.00%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Promissory Note [Member] \| London Interbank Offered Rate (LIBOR) [Member]
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%
VTB Holdings, Inc \| Chief Executive Officer, Director,and Shareholder \| Issuance of November Note \| Promissory Note [Member]
Debt Instrument [Line Items]
Debt amount	$ 2,000,000

Income Taxes - Schedule of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Federal:
Current	$ 227	$ 11	$ (3,218)
Deferred	0	0	5,153
Total Federal	227	11	1,935
State and Local:
Current	185	149	197
Deferred	0	0	663
Total State and Local	185	149	860
Foreign
Current	0	0	0
Deferred	181	(547)	(402)
Total Foreign	181	(547)	(402)
Total	$ 593	$ (387)	$ 2,393

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Deferred Tax Assets, Tax Credit Carryforwards, Foreign	$ 400
Foreign Earnings Repatriated	500
Unrecognized Tax Benefits	1,468	$ 1,468	$ 1,468
Unrecognized tax benefits that would impact effective tax rate	1,500
Unrecognized tax benefits inclusive of interest and penalties	2,300
Interest and penalties	800
2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	57,400
State and Local Jurisdiction \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	30,600
Domestic Tax Authority \| 2029
Operating Loss Carryforwards [Line Items]
NOL available to offset future income	$ 12,700

Income Taxes - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Percent [Abstract]
U.S. Operations	$ (3,722)	$ (88,084)	$ (78,643)
Foreign Operations	1,067	515	(1,871)
Loss before income tax expense (benefit)	$ (2,655)	$ (87,569)	$ (80,514)
Federal statutory rate	35.00%	35.00%	35.00%
Provision for income taxes at federal statutory rate	$ (929)	$ (30,649)	$ (28,180)
State taxes, net of federal benefit	157	113	805
Foreign tax rate differential	(92)	(522)	253
Change in valuation allowance	(10,043)	18,969	8,528
Impairment charge	0	10,903	17,438
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	10,526	0	0
Stock compensation	424	230	3,384
Interest on Series B Preferred Stock	504	467	430
hear_EffectiveIncomeTaxRateReconciliationSubpartFIncome	502	0	0
hear_EffectiveIncomeTaxRateReconciliationExcessTaxBenefits	(782)	0	0
Prior year adjustment	241	14	518
Change in unrecognized tax benefits	(27)	(26)	(1,024)
Other	112	114	241
Total	$ 593	$ (387)	$ 2,393

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred Tax Assets:
Intangible Assets	$ 0	$ 209
Allowance for doubtful accounts	16	52
Inventories	1,028	3,407
Employee benefits	2,347	3,754
Net operating loss	14,766	19,246
Unrecognized tax benefits	676	649
Other	1,085	1,222
Total deferred tax assets	19,864	28,896
Valuation allowance	(19,502)	(28,353)
Deferred Tax Liabilities:
Depreciation and amortization	(54)
Deferred Tax Assets, Property, Plant and Equipment		357
Net deferred tax assets (liabilities)	$ 362	$ 543

Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefit, beginning of period	$ 1,468	$ 1,468
Additions based on tax positions related to the current year	0	0
Decreases based on tax positions in a prior period	0	0
Gross unrecognized tax benefit, end of period	$ 1,468	$ 1,468

Preferred Stock - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Sep. 30, 2010	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Class of Stock [Line Items]
Series B redeemable preferred stock		$ 18,921,000	$ 17,480,000
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		$ 1,400,000	1,300,000	$ 1,200,000
Series B redeemable preferred stock		18,900,000	17,500,000
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

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, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Basic and diluted:
Net loss	$ 14,231	$ (492)	$ (7,061)	$ (9,926)	$ 12,201	$ (44,799)	$ (42,573)	$ (12,011)	$ (3,248)	$ (87,182)	$ (82,907)
Basic:
Weighted-average common shares outstanding, basic (in shares)									49,343	48,592	42,269
Dilutive effect of stock options, warrants, unvested awards									0	0	0
Diluted:
Weighted-average common shares outstanding, diluted (in shares)									49,343	48,592	42,269
Net loss per share :
Basic (in dollars per share)	$ 0.29	$ (0.01)	$ (0.14)	$ (0.20)	$ 0.25	$ (0.91)	$ (0.86)	$ (0.26)	$ (0.07)	$ (1.79)	$ (1.96)
Diluted (in dollars per share)	$ 0.29	$ (0.01)	$ (0.14)	$ (0.20)	$ 0.25	$ (0.91)	$ (0.86)	$ (0.26)	$ (0.07)	$ (1.79)	$ (1.96)

Net Income (Loss) Per Share - Antidilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	9,561	9,602	7,268
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	6,356	6,411	6,260
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	3,061	3,071	954
Unvested restricted stock awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share	144	120	54

Stock Based Compensation - Shares Available for Grant (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Shares Available for Grant [Roll Forward]
Balance at December 31, 2016	2,261
Options granted	(1,751)
Restricted Stock granted	(167)
Forfeited/Expired shares added back	1,206
Balance at December 31, 2017	1,549

Stock Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 1,430	$ 3,960	$ 5,897
Cost of revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	(66)	557	889
Selling and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	100	90	320
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	232	561	784
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 1,164	$ 2,752	$ 3,904

Stock Based Compensation - Stock Option Activity (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding beginning of period (in shares)	6,381,447
Granted (in shares)	1,750,674
Exercised (in shares)	0
Forfeited (in shares)	(1,171,794)
Outstanding end of period (in shares)	6,960,327	6,381,447
Vested and expected to vest (in shares)	6,734,078
Exercisable (in shares)	4,081,307
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding beginning of period (in dollars per share)	$ 1.90
Granted (in dollars per share)	0.68
Exercised (in dollars per share)	0.00
Forfeited (in dollars per share)	2.17
Outstanding end of period (in dollars per share)	1.55	$ 1.90
Vested and expected to vest (in dollars per share)	1.59
Exercisable (in dollars per share)	$ 1.95
Outstanding, weighted average remaining contractual term	7 years 4 months 15 days	7 years 10 months 21 days
Vested and expected to vest, weighted average remaining contractual term	7 years 4 months 15 days
Exercisable, weighted average remaining contractual term	7 years 3 months 28 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Outstanding, intrinsic value	$ 6	$ 20,033
Vested and expected to vest, intrinsic value	4
Exercisable, intrinsic value	$ 0

Stock Based Compensation - Weighted-Average Assumptions (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected term (in years)	6 years 1 month 18 days	6 years 1 month 18 days	6 years 1 month 18 days
Risk-free interest rate, minimum (as a percentage)	1.90%	1.50%	1.80%
Risk-free interest rate, maximum (as a percentage)	2.30%	1.90%	2.00%
Expected volatility, minimum (as a percentage)	38.70%	40.80%	47.50%
Expected volatility, maximum (as a percentage)	41.10%	47.10%	49.80%
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, 2017 $ / 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)	167,000
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)	135,705
Granted (in shares)	166,665
Outstanding end of period (in shares)	167,465
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	$ 1.84
Granted (in dollars per share) \| $ / shares	0.90
Outstanding end of period (in dollars per share) \| $ / shares	$ 0.96
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(91,002)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value \| $ / shares	$ 2.06

Stock Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Jul. 22, 2015	Nov. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 16, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Forfeiture period after ending employment			90 days
Outstanding stock options (in shares)			6,960,327	6,381,447
Stock-based compensation			$ 1,430	$ 3,960	$ 5,897
Amortization period of unrecognized compensation costs			4 years
Forfeited (in shares)			1,171,794
Forfeited/Expired shares added back			1,206,000
Related income tax benefit					2,100
Proceeds from exercise of stock options			$ 0	$ 0	$ 731
Options exercised, intrinsic value			0
Total unrecognized compensation cost related to stock options			$ 1,300
Weighted average grant date fair value of options granted (in dollars per share)			$ 0.29	$ 0.48	$ 0.88
Estimated grant date fair value of options vested			$ 1,300	$ 2,400	$ 3,000
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%
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
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			4 months
Total unrecognized compensation cost related to non-vested options			$ 200
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
Weighted average exercise price of options granted and outstanding (in dollars per share)			$ 0.93

Segment and Geographical Information - Net Revenues, Operating Income, and Total Assets by Segments (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2017 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Sep. 30, 2016 USD ($)	Jun. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2017 USD ($) segment	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Segment Reporting [Abstract]
Number of operating segments \| segment									2
Segment Reporting Information [Line Items]
Net Revenue	$ 79,696	$ 35,975	$ 19,112	$ 14,352	$ 82,204	$ 38,384	$ 29,362	$ 24,028	$ 149,135	$ 173,978	$ 162,747
Operating income (loss)									4,798	(77,701)	(74,399)
Interest expense									7,916	7,447	5,099
Other non-operating (income) expense, net									(463)	2,421	1,016
Loss before income tax expense (benefit)									(2,655)	(87,569)	(80,514)
Total Assets	94,251				94,800				94,251	94,800
Consolidation, Eliminations
Segment Reporting Information [Line Items]
Total Assets	(26,650)				(30,514)				(26,650)	(30,514)
Operating Segments \| Headset
Segment Reporting Information [Line Items]
Net Revenue									148,828	173,323	161,835
Operating income (loss)									6,124	8,633	(8,698)
Total Assets	94,114				94,081				94,114	94,081
Operating Segments \| HyperSound (1)
Segment Reporting Information [Line Items]
Net Revenue									307	655	912
Operating income (loss)									(1,326)	(86,334)	$ (65,701)
Total Assets	$ 26,787				$ 31,233				$ 26,787	$ 31,233

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, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue	$ 79,696	$ 35,975	$ 19,112	$ 14,352	$ 82,204	$ 38,384	$ 29,362	$ 24,028	$ 149,135	$ 173,978	$ 162,747
Property and equipment, net	4,677				4,311				4,677	4,311
North America
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									103,159	130,371	117,526
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									21,113	21,778	20,881
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									20,277	15,729	17,329
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	4,504				3,986				4,504	3,986
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Revenue									4,586	6,100	$ 7,011
Property and equipment, net	$ 173				$ 325				$ 173	$ 325

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, 2017 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 984
2019	789
2020	505
2021	281
2022	104
Total	$ 2,663

Commitments and Contingencies - Warranties (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Warranty, beginning of period	$ 639	$ 580	$ 493
Warranty costs accrued	310	702	693
Settlements of warranty claims	(477)	(643)	(606)
Warranty, end of period	$ 472	$ 639	$ 580

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, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
Net Revenue	$ 79,696	$ 35,975	$ 19,112	$ 14,352	$ 82,204	$ 38,384	$ 29,362	$ 24,028	$ 149,135	$ 173,978	$ 162,747
Gross Margin	29,948	12,538	6,301	2,216	30,208	3,927	5,113	3,362	51,003	42,610	40,691
Net Income (Loss)	$ 14,231	$ (492)	$ (7,061)	$ (9,926)	$ 12,201	$ (44,799)	$ (42,573)	$ (12,011)	$ (3,248)	$ (87,182)	$ (82,907)
Earnings (Loss) Per Share
Basic (in dollars per share)	$ 0.29	$ (0.01)	$ (0.14)	$ (0.20)	$ 0.25	$ (0.91)	$ (0.86)	$ (0.26)	$ (0.07)	$ (1.79)	$ (1.96)
Diluted (in dollars per share)	$ 0.29	$ (0.01)	$ (0.14)	$ (0.20)	$ 0.25	$ (0.91)	$ (0.86)	$ (0.26)	$ (0.07)	$ (1.79)	$ (1.96)
Impairment of Intangible Assets (Excluding Goodwill)						$ 31,152	$ 32,100

Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	$ 12,783	$ 13,829
Balance, end of period	13,155	12,783	$ 13,829
Allowance for sales returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	4,591	6,268	4,155
Additions	10,457	12,819	17,108
Deductions / Other	(9,515)	(14,496)	(14,995)
Balance, end of period	5,533	4,591	6,268
Allowance for cash discounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	8,056	7,459	5,451
Additions	17,967	16,678	17,904
Deductions / Other	(18,464)	(16,081)	(15,896)
Balance, end of period	7,559	8,056	7,459
Allowance for doubtful accounts
Movement in Valuation Allowances and Reserves [Roll Forward]
Balance, beginning of period	136	102	200
Additions	49	144	157
Deductions / Other	(122)	(110)	(255)
Balance, end of period	$ 63	$ 136	$ 102

Summary of Significant Accounting Policies - Marketing Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Advertising expense	$ 4.2	$ 6.2	$ 5.3
Cooperative advertising expense	$ 3.1	$ 4.0	$ 3.6

Summary of Significant Accounting Policies - Segment Information (Details)	12 Months Ended
	Dec. 31, 2017 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2

Goodwill and Other Intangible Assets - Carrying Values of Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2016	Jun. 30, 2016
Goodwill [Line Items]
Impairment of Intangible Assets (Excluding Goodwill)	$ 31,152	$ 32,100