Quarterly Report (10-q)
November 05 2020 - 05:03PM
Edgar (US Regulatory)
0001493761 --12-31 Q3 false true true
true true P7Y1M17D P7Y6M10D P7Y5M23D P5Y7M2D P6Y1M6D 0.004 0.501
0.014 0.589 P6Y6M 0001493761 2020-01-01 2020-09-30 xbrli:shares
0001493761 2020-10-31 0001493761 dei:FormerAddressMember 2020-01-01
2020-09-30 iso4217:USD 0001493761 2020-09-30 0001493761 2019-12-31
iso4217:USD xbrli:shares 0001493761 2020-07-01 2020-09-30
0001493761 2019-07-01 2019-09-30 0001493761 2019-01-01 2019-09-30
0001493761 2018-12-31 0001493761 2019-09-30 0001493761
us-gaap:CommonStockMember 2019-12-31 0001493761
us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0001493761
us-gaap:RetainedEarningsMember 2019-12-31 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-12-31
0001493761 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31
0001493761 2020-01-01 2020-03-31 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-01-01
2020-03-31 0001493761 us-gaap:CommonStockMember 2020-01-01
2020-03-31 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-01-01 2020-03-31 0001493761 us-gaap:CommonStockMember
2020-03-31 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-03-31 0001493761 us-gaap:RetainedEarningsMember 2020-03-31
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-03-31 0001493761 2020-03-31 0001493761
us-gaap:RetainedEarningsMember 2020-04-01 2020-06-30 0001493761
2020-04-01 2020-06-30 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-04-01
2020-06-30 0001493761 us-gaap:CommonStockMember 2020-04-01
2020-06-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-04-01 2020-06-30 0001493761 us-gaap:CommonStockMember
2020-06-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-06-30 0001493761 us-gaap:RetainedEarningsMember 2020-06-30
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-06-30 0001493761 2020-06-30 0001493761
us-gaap:RetainedEarningsMember 2020-07-01 2020-09-30 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2020-07-01
2020-09-30 0001493761 us-gaap:CommonStockMember 2020-07-01
2020-09-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-07-01 2020-09-30 0001493761 us-gaap:CommonStockMember
2020-09-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2020-09-30 0001493761 us-gaap:RetainedEarningsMember 2020-09-30
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2020-09-30 0001493761 us-gaap:CommonStockMember 2018-12-31
0001493761 us-gaap:AdditionalPaidInCapitalMember 2018-12-31
0001493761 us-gaap:RetainedEarningsMember 2018-12-31 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31
0001493761 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31
0001493761 2019-01-01 2019-03-31 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-01-01
2019-03-31 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-01-01 2019-03-31 0001493761 us-gaap:CommonStockMember
2019-01-01 2019-03-31 0001493761 us-gaap:CommonStockMember
2019-03-31 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-03-31 0001493761 us-gaap:RetainedEarningsMember 2019-03-31
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-03-31 0001493761 2019-03-31 0001493761
us-gaap:RetainedEarningsMember 2019-04-01 2019-06-30 0001493761
2019-04-01 2019-06-30 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-04-01
2019-06-30 0001493761 us-gaap:CommonStockMember 2019-04-01
2019-06-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-04-01 2019-06-30 0001493761 us-gaap:CommonStockMember
2019-06-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-06-30 0001493761 us-gaap:RetainedEarningsMember 2019-06-30
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-06-30 0001493761 2019-06-30 0001493761
us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0001493761
us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-07-01
2019-09-30 0001493761 us-gaap:CommonStockMember 2019-07-01
2019-09-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-07-01 2019-09-30 0001493761 us-gaap:CommonStockMember
2019-09-30 0001493761 us-gaap:AdditionalPaidInCapitalMember
2019-09-30 0001493761 us-gaap:RetainedEarningsMember 2019-09-30
0001493761 us-gaap:AccumulatedOtherComprehensiveIncomeMember
2019-09-30 0001493761 us-gaap:RestrictedStockMember 2020-01-01
2020-09-30 0001493761 us-gaap:AccountingStandardsUpdate201704Member
2020-09-30 0001493761 us-gaap:AccountingStandardsUpdate201912Member
2020-09-30 0001493761 2019-05-31 2019-05-31 0001493761
srt:MaximumMember 2019-05-31 0001493761
hear:ROCCATGMBHAndSubsidiariesMember 2019-05-31 2019-05-31
0001493761 us-gaap:GeneralAndAdministrativeExpenseMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-07-01 2020-09-30
0001493761 us-gaap:GeneralAndAdministrativeExpenseMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-01-01 2020-09-30
0001493761 hear:ROCCATGMBHAndSubsidiariesMember 2019-05-31
0001493761 hear:ROCCATGMBHAndSubsidiariesMember
hear:AccruedAndOtherCurrentLiabilitiesMember 2019-05-31 0001493761
us-gaap:CustomerRelationshipsMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-01-01 2020-09-30
0001493761 us-gaap:TradeNamesMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-01-01 2020-09-30
0001493761 us-gaap:DevelopedTechnologyRightsMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-01-01 2020-09-30
0001493761 us-gaap:CustomerRelationshipsMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-09-30 0001493761
us-gaap:TradeNamesMember hear:ROCCATGMBHAndSubsidiariesMember
2020-09-30 0001493761 us-gaap:DevelopedTechnologyRightsMember
hear:ROCCATGMBHAndSubsidiariesMember 2020-09-30 0001493761
hear:ROCCATGMBHAndSubsidiariesMember 2020-09-30 0001493761
hear:ROCCATGMBHAndSubsidiariesMember 2020-07-01 2020-09-30
0001493761 hear:ROCCATGMBHAndSubsidiariesMember 2020-01-01
2020-09-30 0001493761
us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-09-30
0001493761 us-gaap:EstimateOfFairValueFairValueDisclosureMember
2020-09-30 0001493761
us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31
0001493761 us-gaap:EstimateOfFairValueFairValueDisclosureMember
2019-12-31 0001493761
us-gaap:CarryingReportedAmountFairValueDisclosureMember
us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember
2019-12-31 0001493761
us-gaap:EstimateOfFairValueFairValueDisclosureMember
us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember
2019-12-31 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2020-06-30 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2019-06-30 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2019-12-31 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2018-12-31 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2020-07-01 2020-09-30 0001493761
us-gaap:SalesReturnsAndAllowancesMember 2019-07-01 2019-09-30
0001493761 us-gaap:SalesReturnsAndAllowancesMember 2020-01-01
2020-09-30 0001493761 us-gaap:SalesReturnsAndAllowancesMember
2019-01-01 2019-09-30 0001493761
us-gaap:SalesReturnsAndAllowancesMember 2020-09-30 0001493761
us-gaap:SalesReturnsAndAllowancesMember 2019-09-30 0001493761
us-gaap:MachineryAndEquipmentMember 2020-09-30 0001493761
us-gaap:MachineryAndEquipmentMember 2019-12-31 0001493761
us-gaap:SoftwareAndSoftwareDevelopmentCostsMember 2020-09-30
0001493761 us-gaap:SoftwareAndSoftwareDevelopmentCostsMember
2019-12-31 0001493761 us-gaap:FurnitureAndFixturesMember 2020-09-30
0001493761 us-gaap:FurnitureAndFixturesMember 2019-12-31 0001493761
us-gaap:ToolsDiesAndMoldsMember 2020-09-30 0001493761
us-gaap:ToolsDiesAndMoldsMember 2019-12-31 0001493761
us-gaap:LeaseholdImprovementsMember 2020-09-30 0001493761
us-gaap:LeaseholdImprovementsMember 2019-12-31 0001493761
hear:MarketingAndTradeShowEquipmentMember 2020-09-30 0001493761
hear:MarketingAndTradeShowEquipmentMember 2019-12-31 0001493761
us-gaap:OtherNonoperatingIncomeExpenseMember 2019-01-01 2019-09-30
0001493761 us-gaap:OtherNonoperatingIncomeExpenseMember 2020-01-01
2020-09-30 0001493761 us-gaap:OtherNonoperatingIncomeExpenseMember
2020-07-01 2020-09-30 0001493761
us-gaap:OtherNonoperatingIncomeExpenseMember 2019-07-01 2019-09-30
0001493761 us-gaap:CustomerRelationshipsMember 2020-09-30
0001493761 us-gaap:TradeNamesMember 2020-09-30 0001493761
us-gaap:DevelopedTechnologyRightsMember 2020-09-30 0001493761
us-gaap:CustomerRelationshipsMember 2019-12-31 0001493761
us-gaap:TradeNamesMember 2019-12-31 0001493761
us-gaap:DevelopedTechnologyRightsMember 2019-12-31 0001493761
hear:AcquisitionOfLygoInternationalLimitedMember
us-gaap:CustomerRelationshipsMember 2012-10-01 2012-10-31
0001493761 us-gaap:LineOfCreditMember
us-gaap:RevolvingCreditFacilityMember 2019-12-31 0001493761
us-gaap:RevolvingCreditFacilityMember 2018-01-01 2018-12-31
0001493761 us-gaap:RevolvingCreditFacilityMember 2018-12-31
0001493761 hear:UKBorrowerMember
us-gaap:RevolvingCreditFacilityMember 2018-12-31 0001493761
srt:MaximumMember hear:ROCCATGMBHAndSubsidiariesMember
hear:TBGermanyGmbHMember us-gaap:RevolvingCreditFacilityMember
2019-05-31 xbrli:pure 0001493761 us-gaap:BaseRateMember
srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01
2020-09-30 0001493761 us-gaap:BaseRateMember srt:MaximumMember
us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30
0001493761 us-gaap:LondonInterbankOfferedRateLIBORMember
srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01
2020-09-30 0001493761 us-gaap:LondonInterbankOfferedRateLIBORMember
srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01
2020-09-30 0001493761 us-gaap:AdjustableRateLoansMember
srt:MinimumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01
2020-09-30 0001493761 us-gaap:AdjustableRateLoansMember
srt:MaximumMember us-gaap:RevolvingCreditFacilityMember 2020-01-01
2020-09-30 0001493761 srt:MinimumMember
us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30
0001493761 srt:MaximumMember us-gaap:RevolvingCreditFacilityMember
2020-01-01 2020-09-30 0001493761 us-gaap:BaseRateMember
us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30
0001493761 us-gaap:LondonInterbankOfferedRateLIBORMember
us-gaap:RevolvingCreditFacilityMember 2020-01-01 2020-09-30
0001493761 us-gaap:RevolvingCreditFacilityMember 2020-09-30
0001493761 us-gaap:CostOfSalesMember 2020-07-01 2020-09-30
0001493761 us-gaap:CostOfSalesMember 2019-07-01 2019-09-30
0001493761 us-gaap:CostOfSalesMember 2020-01-01 2020-09-30
0001493761 us-gaap:CostOfSalesMember 2019-01-01 2019-09-30
0001493761 us-gaap:SellingAndMarketingExpenseMember 2020-07-01
2020-09-30 0001493761 us-gaap:SellingAndMarketingExpenseMember
2019-07-01 2019-09-30 0001493761
us-gaap:SellingAndMarketingExpenseMember 2020-01-01 2020-09-30
0001493761 us-gaap:SellingAndMarketingExpenseMember 2019-01-01
2019-09-30 0001493761 us-gaap:ResearchAndDevelopmentExpenseMember
2020-07-01 2020-09-30 0001493761
us-gaap:ResearchAndDevelopmentExpenseMember 2019-07-01 2019-09-30
0001493761 us-gaap:ResearchAndDevelopmentExpenseMember 2020-01-01
2020-09-30 0001493761 us-gaap:ResearchAndDevelopmentExpenseMember
2019-01-01 2019-09-30 0001493761
us-gaap:GeneralAndAdministrativeExpenseMember 2020-07-01 2020-09-30
0001493761 us-gaap:GeneralAndAdministrativeExpenseMember 2019-07-01
2019-09-30 0001493761 us-gaap:GeneralAndAdministrativeExpenseMember
2020-01-01 2020-09-30 0001493761
us-gaap:GeneralAndAdministrativeExpenseMember 2019-01-01 2019-09-30
0001493761 2019-01-01 2019-12-31 0001493761
us-gaap:EmployeeStockOptionMember 2020-01-01 2020-09-30 0001493761
hear:NonExecutivesMember 2020-01-01 2020-09-30 0001493761
srt:ExecutiveOfficerMember 2020-01-01 2020-09-30 0001493761
srt:MaximumMember 2020-01-01 2020-09-30 0001493761
us-gaap:EmployeeStockOptionMember 2020-09-30 0001493761
us-gaap:RestrictedStockMember 2019-12-31 0001493761
us-gaap:RestrictedStockMember 2020-09-30 0001493761
hear:ATMEquityOfferingSalesAgreementMember
hear:BofASecuritiesIncMember 2020-08-07 0001493761
hear:ATMEquityOfferingSalesAgreementMember
hear:BofASecuritiesIncMember srt:MaximumMember 2020-08-07
2020-08-07 0001493761 hear:ATMEquityOfferingSalesAgreementMember
2020-07-01 2020-09-30 0001493761
hear:ATMEquityOfferingSalesAgreementMember 2020-09-30 0001493761
us-gaap:StockOptionMember 2020-07-01 2020-09-30 0001493761
us-gaap:StockOptionMember 2019-07-01 2019-09-30 0001493761
us-gaap:StockOptionMember 2020-01-01 2020-09-30 0001493761
us-gaap:StockOptionMember 2019-01-01 2019-09-30 0001493761
hear:StockPurchaseWarrantsMember 2019-07-01 2019-09-30 0001493761
hear:StockPurchaseWarrantsMember 2019-01-01 2019-09-30 0001493761
us-gaap:RestrictedStockMember 2020-07-01 2020-09-30 0001493761
us-gaap:RestrictedStockMember 2019-07-01 2019-09-30 0001493761
us-gaap:RestrictedStockMember 2020-01-01 2020-09-30 0001493761
us-gaap:RestrictedStockMember 2019-01-01 2019-09-30 0001493761
country:US 2020-07-01 2020-09-30 0001493761 country:US 2019-07-01
2019-09-30 0001493761 country:US 2020-01-01 2020-09-30 0001493761
country:US 2019-01-01 2019-09-30 0001493761 country:GB 2020-07-01
2020-09-30 0001493761 country:GB 2019-07-01 2019-09-30 0001493761
country:GB 2020-01-01 2020-09-30 0001493761 country:GB 2019-01-01
2019-09-30 0001493761 srt:EuropeMember 2020-07-01 2020-09-30
0001493761 srt:EuropeMember 2019-07-01 2019-09-30 0001493761
srt:EuropeMember 2020-01-01 2020-09-30 0001493761 srt:EuropeMember
2019-01-01 2019-09-30 0001493761 hear:OtherCountriesMember
2020-07-01 2020-09-30 0001493761 hear:OtherCountriesMember
2019-07-01 2019-09-30 0001493761 hear:OtherCountriesMember
2020-01-01 2020-09-30 0001493761 hear:OtherCountriesMember
2019-01-01 2019-09-30 0001493761
hear:MergerOfVTBHoldingsIncAndParametricSoundCorporationMember
hear:VTBHoldingsIncMember 2013-08-05 0001493761
hear:MergerOfVTBHoldingsIncAndParametricSoundCorporationMember
hear:ParametricSoundCorporationMember 2013-08-05 hear:Claim
0001493761 2020-05-22 hear:Motion 0001493761 2020-08-10
hear:Distributor 0001493761 2020-05-05 hear:Company 0001493761
2020-07-01 iso4217:EUR 0001493761 srt:MinimumMember 2020-09-30
0001493761 srt:MaximumMember 2020-09-30 0001493761
srt:WeightedAverageMember 2020-09-30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
☒ QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended September 30, 2020
or
☐ TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from
to
Commission File Number: 001-35465
TURTLE BEACH CORPORATION
(Exact name of registrant as specified in its charter)
|
Nevada
|
27-2767540
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification Number)
|
|
|
|
|
44 South Broadway, 4th
Floor
White Plains, New York
|
10601
|
|
(Address of principal executive offices)
|
(Zip Code)
|
(888) 496-8001
(Registrant’s telephone number, including area code)
11011 Via Frontera, Suite A/B, San Diego, CA 92127
(Former name, former address and former fiscal year, if changed
since last report)
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class
|
Trading Symbols
|
Name of each exchange on which registered
|
|
Common Stock, par value $0.001
|
HEAR
|
Nasdaq
|
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing
requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted
electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter)
during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files). ☒ Yes
☐ No
Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, a
smaller reporting company or an emerging growth company. See the
definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule
12b-2 of the Exchange Act.
|
Large accelerated filer
|
☐
|
|
Accelerated filer
|
☒
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☒
|
|
Emerging growth company
|
☐
|
|
|
|
If an emerging growth company, indicate by check mark if the
registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act). ☐ Yes
☒ No
The number of shares of the registrant’s Common Stock, par value
$0.001 per share, outstanding on October 31,2020 was
15,187,576.
INDEX
2
PART I.
FINANCIAL INFORMATION
Item 1.
Financial Statements.
Turtle Beach Corporation
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
ASSETS
|
|
(in thousands, except par value and share amounts)
|
|
|
Current Assets:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
27,265
|
|
|
$
|
8,249
|
|
|
Accounts receivable, net
|
|
|
53,825
|
|
|
|
44,530
|
|
|
Inventories
|
|
|
79,453
|
|
|
|
45,711
|
|
|
Prepaid expenses and other current assets
|
|
|
8,451
|
|
|
|
4,057
|
|
|
Total Current Assets
|
|
|
168,994
|
|
|
|
102,547
|
|
|
Property and equipment, net
|
|
|
5,004
|
|
|
|
3,962
|
|
|
Deferred income taxes
|
|
|
7,800
|
|
|
|
7,439
|
|
|
Goodwill
|
|
|
8,178
|
|
|
|
8,515
|
|
|
Intangible assets, net
|
|
|
5,325
|
|
|
|
6,011
|
|
|
Other assets
|
|
|
6,230
|
|
|
|
2,877
|
|
|
Total Assets
|
|
$
|
201,531
|
|
|
$
|
131,351
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
Revolving credit facility
|
|
$
|
—
|
|
|
$
|
15,655
|
|
|
Accounts payable
|
|
|
63,699
|
|
|
|
22,511
|
|
|
Other current liabilities
|
|
|
34,432
|
|
|
|
26,422
|
|
|
Total Current Liabilities
|
|
|
98,131
|
|
|
|
64,588
|
|
|
Deferred income taxes
|
|
|
140
|
|
|
|
153
|
|
|
Other liabilities
|
|
|
7,524
|
|
|
|
3,223
|
|
|
Total Liabilities
|
|
|
105,795
|
|
|
|
67,964
|
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value - 25,000,000 shares authorized;
15,186,990 and 14,488,182 shares issued and outstanding as of
September 30, 2020 and December 31, 2019, respectively
|
|
|
15
|
|
|
|
14
|
|
|
Additional paid-in capital
|
|
|
187,065
|
|
|
|
176,776
|
|
|
Accumulated deficit
|
|
|
(91,076
|
)
|
|
|
(113,519
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
|
(268
|
)
|
|
|
116
|
|
|
Total Stockholders’ Equity
|
|
|
95,736
|
|
|
|
63,387
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
201,531
|
|
|
$
|
131,351
|
|
See accompanying Notes to the Condensed Consolidated Financial
Statements (unaudited)
3
Turtle Beach Corporation
Condensed Consolidated Statements of Operations
(unaudited)
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
September 30,
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
(in thousands, except per-share data)
|
|
|
Net revenue
|
|
$
|
112,494
|
|
|
$
|
46,723
|
|
|
$
|
227,181
|
|
|
$
|
132,899
|
|
|
Cost of revenue
|
|
|
66,358
|
|
|
|
31,680
|
|
|
|
141,033
|
|
|
|
89,898
|
|
|
Gross profit
|
|
|
46,136
|
|
|
|
15,043
|
|
|
|
86,148
|
|
|
|
43,001
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
11,857
|
|
|
|
10,150
|
|
|
|
29,064
|
|
|
|
24,581
|
|
|
Research and development
|
|
|
3,260
|
|
|
|
2,198
|
|
|
|
8,688
|
|
|
|
5,388
|
|
|
General and administrative
|
|
|
6,799
|
|
|
|
5,214
|
|
|
|
19,232
|
|
|
|
16,057
|
|
|
Total operating expenses
|
|
|
21,916
|
|
|
|
17,562
|
|
|
|
56,984
|
|
|
|
46,026
|
|
|
Operating income (loss)
|
|
|
24,220
|
|
|
|
(2,519
|
)
|
|
|
29,164
|
|
|
|
(3,025
|
)
|
|
Interest expense
|
|
|
103
|
|
|
|
240
|
|
|
|
355
|
|
|
|
595
|
|
|
Other non-operating expense (income), net
|
|
|
(101
|
)
|
|
|
302
|
|
|
|
(1,520
|
)
|
|
|
(1,430
|
)
|
|
Income (loss) before income tax
|
|
|
24,218
|
|
|
|
(3,061
|
)
|
|
|
30,329
|
|
|
|
(2,190
|
)
|
|
Income tax expense
|
|
|
6,424
|
|
|
|
63
|
|
|
|
7,886
|
|
|
|
252
|
|
|
Net income (loss)
|
|
$
|
17,794
|
|
|
$
|
(3,124
|
)
|
|
$
|
22,443
|
|
|
$
|
(2,442
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.20
|
|
|
$
|
(0.22
|
)
|
|
$
|
1.53
|
|
|
$
|
(0.17
|
)
|
|
Diluted
|
|
$
|
1.04
|
|
|
$
|
(0.22
|
)
|
|
$
|
1.41
|
|
|
$
|
(0.17
|
)
|
|
Weighted average number of shares:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
14,845
|
|
|
|
14,506
|
|
|
|
14,642
|
|
|
|
14,477
|
|
|
Diluted
|
|
|
17,154
|
|
|
|
14,506
|
|
|
|
15,961
|
|
|
|
14,477
|
|
See accompanying Notes to the Condensed Consolidated Financial
Statements (unaudited)
4
Turtle Beach Corporation
Condensed Consolidated Statements of Comprehensive Income
(Loss)
(unaudited)
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
September 30,
2020
|
|
|
September 30,
2019
|
|
|
|
|
(in thousands)
|
|
|
Net income (loss)
|
|
$
|
17,794
|
|
|
$
|
(3,124
|
)
|
|
$
|
22,443
|
|
|
$
|
(2,442
|
)
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustment
|
|
|
548
|
|
|
|
(330
|
)
|
|
|
(384
|
)
|
|
|
(323
|
)
|
|
Other comprehensive income (loss)
|
|
|
548
|
|
|
|
(330
|
)
|
|
|
(384
|
)
|
|
|
(323
|
)
|
|
Comprehensive income (loss)
|
|
$
|
18,342
|
|
|
$
|
(3,454
|
)
|
|
$
|
22,059
|
|
|
$
|
(2,765
|
)
|
See accompanying Notes to the Condensed Consolidated Financial
Statements (unaudited)
5
Turtle Beach Corporation
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
Nine Months Ended
|
|
|
|
|
September 30, 2020
|
|
|
September 30, 2019
|
|
|
|
|
(in thousands)
|
|
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
22,443
|
|
|
$
|
(2,442
|
)
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
3,302
|
|
|
|
3,477
|
|
|
Amortization of intangible assets
|
|
|
665
|
|
|
|
413
|
|
|
Amortization of debt financing costs
|
|
|
142
|
|
|
|
142
|
|
|
Stock-based compensation
|
|
|
3,977
|
|
|
|
2,555
|
|
|
Deferred income taxes
|
|
|
(375
|
)
|
|
|
—
|
|
|
Change in sales returns reserve
|
|
|
2,173
|
|
|
|
(4,262
|
)
|
|
Provision for obsolete inventory
|
|
|
2,216
|
|
|
|
2,081
|
|
|
Provision for doubtful accounts
|
|
|
—
|
|
|
|
(8
|
)
|
|
Unrealized gain on financial instrument obligation
|
|
|
—
|
|
|
|
(1,601
|
)
|
|
Increase in fair value of contingent consideration
|
|
|
510
|
|
|
|
—
|
|
|
Changes in operating assets and liabilities, net of
acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(11,468
|
)
|
|
|
30,017
|
|
|
Inventories
|
|
|
(35,957
|
)
|
|
|
(12,622
|
)
|
|
Accounts payable
|
|
|
40,763
|
|
|
|
14,426
|
|
|
Prepaid expenses and other assets
|
|
|
(4,322
|
)
|
|
|
(1,005
|
)
|
|
Income taxes payable
|
|
|
6,769
|
|
|
|
(1,569
|
)
|
|
Other liabilities
|
|
|
1,800
|
|
|
|
(2,298
|
)
|
|
Net cash provided by operating activities
|
|
|
32,638
|
|
|
|
27,304
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(3,918
|
)
|
|
|
(1,628
|
)
|
|
Acquisition of a business, net of cash acquired
|
|
|
—
|
|
|
|
(12,667
|
)
|
|
Net cash used for investing activities
|
|
|
(3,918
|
)
|
|
|
(14,295
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
Borrowings on revolving credit facilities
|
|
|
185,486
|
|
|
|
148,087
|
|
|
Repayment of revolving credit facilities
|
|
|
(201,141
|
)
|
|
|
(158,911
|
)
|
|
Proceeds from sale of equity securities
|
|
|
4,372
|
|
|
|
—
|
|
|
Proceeds from exercise of stock options and warrants
|
|
|
2,155
|
|
|
|
214
|
|
|
Repurchase of common stock
|
|
|
—
|
|
|
|
(1,941
|
)
|
|
Repurchase of common stock to satisfy employee tax withholding
obligations
|
|
|
(215
|
)
|
|
|
(201
|
)
|
|
Net cash used for financing activities
|
|
|
(9,343
|
)
|
|
|
(12,752
|
)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
(361
|
)
|
|
|
(298
|
)
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
19,016
|
|
|
|
(41
|
)
|
|
Cash and cash equivalents - beginning of period
|
|
|
8,249
|
|
|
|
7,078
|
|
|
Cash and cash equivalents - end of period
|
|
$
|
27,265
|
|
|
$
|
7,037
|
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF INFORMATION
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
245
|
|
|
$
|
488
|
|
|
Cash paid for income taxes
|
|
$
|
800
|
|
|
$
|
447
|
|
|
Reclassification of financial instrument obligation
|
|
$
|
—
|
|
|
$
|
6,248
|
|
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to the Condensed Consolidated Financial
Statements (unaudited)
6
Turtle Beach Corporation
Condensed Consolidated Statement of Stockholders’ Equity (Deficit)
(unaudited)
|
|
|
Common Stock
|
|
|
Additional
Paid-In
|
|
|
Accumulated
|
|
|
Accumulated
Other
Comprehensive
|
|
|
|
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Deficit
|
|
|
Income (Loss)
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
Balance at December 31, 2019
|
|
|
14,488
|
|
|
$
|
14
|
|
|
$
|
176,776
|
|
|
$
|
(113,519
|
)
|
|
$
|
116
|
|
|
$
|
63,387
|
|
|
Net loss
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(3,555
|
)
|
|
|
—
|
|
|
|
(3,555
|
)
|
|
Other comprehensive loss, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(819
|
)
|
|
|
(819
|
)
|
|
Issuance of restricted stock
|
|
|
19
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
Repurchase of common stock and retirement of related treasury
shares
|
|
|
(7
|
)
|
|
|
—
|
|
|
|
(48
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(48
|
)
|
|
Stock options exercised
|
|
|
6
|
|
|
|
—
|
|
|
|
18
|
|
|
|
—
|
|
|
|
—
|
|
|
|
18
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
999
|
|
|
|
—
|
|
|
|
—
|
|
|
|
999
|
|
|
Balance at March 31, 2020
|
|
|
14,506
|
|
|
$
|
15
|
|
|
$
|
177,745
|
|
|
$
|
(117,074
|
)
|
|
$
|
(703
|
)
|
|
$
|
59,983
|
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
8,204
|
|
|
|
—
|
|
|
|
8,204
|
|
|
Other comprehensive income, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(113
|
)
|
|
|
(113
|
)
|
|
Issuance of restricted stock
|
|
|
85
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Repurchase of common stock and retirement of related treasury
shares
|
|
|
(6
|
)
|
|
|
—
|
|
|
|
(60
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(60
|
)
|
|
Stock options exercised
|
|
|
9
|
|
|
|
—
|
|
|
|
41
|
|
|
|
—
|
|
|
|
—
|
|
|
|
41
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
1,406
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,406
|
|
|
Balance at June 30, 2020
|
|
|
14,594
|
|
|
|
15
|
|
|
|
179,132
|
|
|
|
(108,870
|
)
|
|
|
(816
|
)
|
|
|
69,461
|
|
|
Net income
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
17,794
|
|
|
|
—
|
|
|
|
17,794
|
|
|
Other comprehensive income, net of tax
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
548
|
|
|
|
548
|
|
|
Issuance of restricted stock
|
|
|
34
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Repurchase of common stock and retirement of related treasury
shares
|
|
|
(6
|
)
|
|
|
—
|
|
|
|
(107
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(107
|
)
|
|
Stock options exercised
|
|
|
327
|
|
|
|
—
|
|
|
|
2,096
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,096
|
|
|
Proceeds of sales of equity securities
|
|
|
238
|
|
|
|
—
|
|
|
|
4,372
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,372
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
—
|
|
|
|
1,572
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,572
|
|
|
Balance at September 30, 2020
|
|
|
15,187
|
|
|
$
|
15
|
|
|
$
|
187,065
|
|
|
$
|
(91,076
|
)
|
|
$
|
(268
|
)
|
|
$
|
95,736
|
|
7
Turtle Beach Corporation
Condensed Consolidated Statement of Stockholders’ Equity (Deficit)
(unaudited)
|
|
|
Common Stock
|
|
|
|
|
Additional
Paid-In
|
|
|
|
|
Accumulated
|
|
|
|
|
Accumulated
Other
Comprehensive
|
|
|
|
|
|
|
|
|
|
|
Shares
|
|
|
|
|
Amount
|
|
|
|
|
Capital
|
|
|
|
|
Deficit
|
|
|
|
|
Income (Loss)
|
|
|
|
|
Total
|
|
|
|
|
(in thousands)
|
|
|
Balance at December 31, 2018
|
|
|
14,268
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
169,421
|
|
|
|
|
$
|
(131,463
|
)
|
|
|
|
$
|
(476
|
)
|
|
|
|
$
|
37,496
|
|
|
Net income
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
3,055
|
|
|
|
|
|
—
|
|
|
|
|
|
3,055
|
|
|
Other comprehensive income, net of tax
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
165
|
|
|
|
|
|
165
|
|
|
Reclassification of financial instrument obligation
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
6,248
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
6,248
|
|
|
Issuance of restricted stock
|
|
|
12
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
Repurchase of common stock and retirement of related treasury
shares
|
|
|
(6
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(101
|
)
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(101
|
)
|
|
Issuance of common stock upon exercise of warrants
|
|
|
295
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
Stock options exercised
|
|
|
6
|
|
|
|
|
|
—
|
|
|
|
|
|
23
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
23
|
|
|
Stock-based compensation
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
522
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
522
|
|
|
Balance at March 31, 2019
|
|
|
14,575
|
|
|
|
|
$
|
14
|
|
|
|
|
$
|
176,113
|
|
|
|
|
$
|
(128,408
|
)
|
|
|
|
$
|
(311
|
)
|
|
|
|
$
|
47,408
|
|
|
Net loss
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(2,373
|
)
|
|
|
|
|
—
|
|
|
|
|
|
(2,373
|
)
|
|
Other comprehensive income, net of tax
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|
(158
|
)
|
|
|
|
|
(158
|
)
|
|
Issuance of restricted stock
|
|
|
56
|
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
|