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Business Combinations | 3 Months Ended
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Mar. 31, 2025
Business Combinations [Abstract] |
Business Combinations | Note 3. Business Combinations Performance Designed Products, LLC Acquisition On March 13, 2024, the Company acquired all the issued and outstanding equity of PDP for consideration that included cash and common stock. PDP was a privately held gaming accessories leader that designs and distributes video game accessories, including controllers, headsets, power supplies, cases, and other accessories. As a result of the acquisition, the Company strengthened its leadership position in hardware gaming accessories and expanded its product portfolio. Consideration for the transaction consisted of the issuance of 3.45 million shares of Company common stock and approximately $78.9 million in cash, subject to customary post-closing adjustments for working capital, closing cash, closing debt and closing third party expenses. On a fully-diluted basis, issued stock represented approximately 16.4% of the total issued and outstanding shares of the Company as of the closing date. The fair value of the 3.45 million common shares issued as part of the consideration was determined on the basis of the closing market price of the Company’s common shares on the acquisition date, or $11.03 per share. As a result, the total final purchase consideration was $114.4 million, partially funded by borrowing on the new term loan facility (see Note 7). Additionally, the Company recognized $4.9 million of acquisition-related costs that were expensed during the three months ended March 31, 2024, and are included as a component of general & administrative expenses in the unaudited Condensed Consolidated Statement of Operations. The following table summarizes the allocation of the consideration transferred to the assets acquired and liabilities assumed at the acquisition date:
(In thousands) |  | Amount |
Cash |  |  | 1,562 |
Accounts Receivable |  |  | 23,888 |
Inventory |  |  | 22,721 |
Prepaid and Other Current Assets |  |  | 3,195 |
Property, Plant & Equipment |  |  | 1,161 |
Other Assets |  |  | 3,478 |
Intangible Assets |  |  | 47,769 |
Accounts Payable |  |  | (12,535 | )
Accrued Liabilities |  |  | (6,268 | )
Lease Payable |  |  | (2,726 | )
Deferred Tax Liability |  |  | (7,592 | )
Total identifiable net assets |  |  | 74,653 |
Goodwill |  |  | 39,741 |
Total consideration |  | $ | 114,394 |
On January 28, 2025, the Company finalized the post-closing adjustments related to the acquisition of PDP, resulting in a $2.5 million payment from the sellers to the Company. The payment was received by the Company in January 2025 and accounted for as a reduction of purchase consideration in the first quarter of 2025. The goodwill from the acquisition, which is fully deductible for tax purposes, consists largely of synergies and economies of scale expected from adding the operations of PDP's and the Company’s existing business and supply channels. PDP's net revenue has been integrated in the Company's unaudited condensed consolidated financial statements in the three months ended March 31, 2025. PDP's net revenue included in the Company’s consolidated results was $5.9 million for the three months ended March 31, 2024. Pro Forma Financial Information (Unaudited) The following table reflects the unaudited pro forma operating results of the Company for the three months ended March 31, 2024, which give effect to the acquisition of PDP as if it had occurred on January 1, 2023.
|  | Three Months Ended |
|  | March 31, |
|  | 2024 |
|  | (in thousands) |
Net revenue |  | $ | 77,832 |
Net (loss) |  | $ | (2,516 | )
The unaudited pro forma results are based on assumptions that the Company believes are reasonable under the circumstances and are not necessarily indicative of the operating results that would have occurred had the acquisition been effective January 1, 2023, nor are they intended to be indicative of results that may occur in the future. Unaudited pro forma information includes adjustments primarily related to acquisition related costs, incremental costs related to fair value adjustments on acquired inventory, amortization of acquired intangible assets, recognition of benefit related to acquired net deferred tax liabilities, interest expense on transaction financing, and accounting policy alignment.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 805 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479907/805-20-50-5 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 805 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/805/tableOfContent + Details
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