Composition of Certain Financial Statement Items

12 Months Ended

Dec. 31, 2024

Condensed Consolidated Balance Sheet Components [Abstract]

Composition of Certain Financial Statement Items

Note 4. Composition of Certain Financial Statement Items

Inventories

Inventories consist of the following:


	December 31, 2024		December 31, 2023
	(in thousands)
Finished goods	$	67,145	$	43,579
Raw materials		4,106		440
Total inventories	$	71,251	$	44,019

One of the Company’s third-party logistics providers experienced a loss of Turtle Beach inventory during the fourth quarter of 2024 while in transit to one of the Company’s customers which impacted the result of operations for the twelve months ended December 31, 2024. The Company recorded the loss of inventory in the amount of $3.4 million within “Cost of revenue” on the consolidated statement of operations.

Property and Equipment, net

Property and equipment, net consists of the following:


	December 31, 2024			December 31, 2023
	(in thousands)
Machinery and equipment	$	2,761		$	2,597
Software and software development		2,858			2,438
Furniture and fixtures		1,679			1,700
Tooling		14,062			11,250
Leasehold improvements		2,323			1,988
Demonstration units and convention booths		17,818			15,767
Total property and equipment, gross		41,501			35,740
Less: accumulated depreciation and amortization		(35,657	)		(30,916	)
Total property and equipment, net	$	5,844		$	4,824

Depreciation and amortization expense on property and equipment for the years ended December 31, 2024, 2023 and 2022 was $4.4 million, $3.8 million and $4.6 million, respectively.

Other Current Liabilities

Other current liabilities consist of the following:


	December 31, 2024		December 31, 2023
	(in thousands)
Accrued royalty	$	11,326	$	5,275
Accrued tax-related payables		7,123		5,206
Accrued employee expenses		3,714		3,944
Accrued marketing		3,045		3,335
Accrued freight		1,635		2,917
Accrued expenses		11,328		8,747
Term loan, short term		1,250		-
Total other current liabilities	$	39,421	$	29,424