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Cover	9 Months Ended
Cover	Sep. 30, 2020
Cover [Abstract]
Document Type	S-1
Amendment Flag	false
Entity Registrant Name	Corsair Gaming, Inc.
Entity Central Index Key	0001743759
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false

Combined Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash	$ 116,185	$ 48,165	$ 25,639
Restricted cash	3,726	3,552	2,281
Accounts receivable, net	259,542	202,334	122,042
Inventories	210,151	151,063	149,022
Prepaid expenses and other current assets	38,014	24,696	17,298
Total current assets	627,618	429,810	316,282
Property and equipment, net	15,404	15,365	12,473
Goodwill	311,573	312,750	226,679
Intangible assets, net	265,446	291,027	247,812
Restricted cash, noncurrent	230	230
Other assets	35,449	10,536	7,747
TOTAL ASSETS	1,255,720	1,059,718	810,993
Current liabilities:
Accounts payable	274,771	182,025	154,842
Borrowings from credit lines			27,000
Current portion of debt, net		2,364	1,611
Other liabilities and accrued expenses	169,586	115,541	35,630
Total current liabilities	444,357	299,930	219,083
Debt, net including related party balance	370,090	503,448	394,106
Deferred tax liabilities	30,655	33,820	34,690
Other liabilities, noncurrent	22,066	5,745	412
TOTAL LIABILITIES	867,168	842,943	648,291
Commitments and Contingencies (Note 9)
Stockholders' Equity:
Preferred stock, $0.0001 par value: 5,000 shares authorized, nil and nil shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
Common stock, value	9	8	8
Additional paid-incapital	437,207	324,968	258,238
Accumulated deficit	(45,856)	(106,030)	(93,161)
Accumulated other comprehensive loss	(2,808)	(2,171)	(2,383)
Total Stockholders' Equity	388,552	216,775	162,702
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,255,720	$ 1,059,718	$ 810,993

Combined Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt, net, related party balance		$ 5,779	$ 7,641
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000	100,000,000
Common stock, shares issued	91,914,000	84,079,366	75,896,147
Common stock, shares outstanding	91,914,000	84,079,366	75,896,147
Previously Reported
Common stock, shares authorized		100,000,000

Combined Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619	$ 1,097,174	$ 937,553
Cost of revenue	329,159	224,145	834,398	616,785	872,887	744,858
Gross profit	127,944	60,227	311,630	153,834	224,287	192,695
Operating expenses:
Product development	12,902	9,454	36,285	28,353	37,547	31,990
Sales, general and administrative	65,321	39,811	175,877	115,992	163,033	138,915
Total operating expenses	78,223	49,265	212,162	144,345	200,580	170,905
Operating income	49,721	10,962	99,468	9,489	23,707	21,790
Other (expense) income:
Interest expense	(10,170)	(9,119)	(29,116)	(27,063)	(35,548)	(32,680)
Other (expense) income, net	23	(399)	(29)	(1,477)	(1,558)	183
Total other expense, net	(10,147)	(9,518)	(29,145)	(28,540)	(37,106)	(32,497)
Income (loss) before income taxes	39,574	1,444	70,323	(19,051)	(13,399)	(10,707)
Income tax (expense) benefit	(3,217)	75	(10,149)	4,645	5,005	(3,013)
Net income (loss)	$ 36,357	$ 1,519	$ 60,174	$ (14,406)	$ (8,394)	$ (13,720)
Net income (loss) per share
Basic	$ 0.43	$ 0.02	$ 0.71	$ (0.19)	$ (0.11)	$ (0.18)
Diluted	$ 0.40	$ 0.02	$ 0.69	$ (0.19)	$ (0.11)	$ (0.18)
Weighted-average shares used to compute net income (loss) per share
Basic	84,870,837	75,939,443	84,352,415	75,928,057	76,223,451	75,457,693
Diluted	90,083,949	77,883,754	87,498,519	75,928,057	76,223,451	75,457,693

Combined Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 36,357	$ 1,519	$ 60,174	$ (14,406)	$ (8,394)	$ (13,720)
Other comprehensive gain (loss):
Foreign currency translation adjustments, net of zero tax	2,378	(54)	(1,217)	(52)	490	(706)
Unrealized foreign exchange loss from long-term intercompany loans, net of tax benefit	691	(682)	580	(704)	(278)	(1,520)
Comprehensive income (loss)	$ 39,426	$ 783	$ 59,537	$ (15,162)	$ (8,182)	$ (15,946)

- Definition

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

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+ Details

Combined Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Foreign currency translation adjustments, net of tax	$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Unrealized foreign exchange gain (loss) from long-term intercompany loans, net of tax benefit (expense)	$ (128)	$ 134	$ (24)	$ 139	$ 55	$ 300

Combined Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect of Adoption of New Accounting	Common Stock	Additional Paid-in Capital	Retained Earnings (Accumulated Deficit)	Retained Earnings (Accumulated Deficit) Cumulative Effect of Adoption of New Accounting	Accumulated Other Comprehensive Loss
Beginning Balance at Dec. 31, 2017	$ 254,661		$ 8	$ 249,251	$ 5,559		$ (157)
Beginning Balance, shares at Dec. 31, 2017			75,024,637
Issuance of common stock in relation to acquisitions	6,226			6,226
Issuance of common stock in relation to acquisitions, shares			868,260
Issuance of common stock for stock option exercises	$ 10			10
Issuance of common stock for stock option exercises, shares	3,250		3,250
Dividends paid to common stockholders	$ (85,000)				(85,000)
Stock-based compensation	2,751			2,751
Other comprehensive gain (loss)	(2,226)						(2,226)
Net income (loss)	(13,720)				(13,720)
Ending Balance at Dec. 31, 2018	162,702		$ 8	258,238	(93,161)		(2,383)
Ending Balance, shares at Dec. 31, 2018			75,896,147
Issuance of common stock in relation to acquisitions	2,000			2,000
Issuance of common stock in relation to acquisitions, shares			267,000
Issuance of common stock for stock option exercises	80			80
Issuance of common stock for stock option exercises, shares			14,000
Repurchase of common stock (Note 11)	(1,531)			(1,257)	(274)
Repurchase of common stock (Note 11), shares			(88,000)
Stock-based compensation	2,813			2,813
Other comprehensive gain (loss)	(756)						(756)
Net income (loss)	(14,406)				(14,406)
Ending Balance at Sep. 30, 2019	147,216	$ (3,686)	$ 8	261,874	(111,527)	$ (3,686)	(3,139)
Ending Balance, shares at Sep. 30, 2019			76,089,000
Beginning Balance at Dec. 31, 2018	162,702		$ 8	258,238	(93,161)		(2,383)
Beginning Balance, shares at Dec. 31, 2018			75,896,147
Issuance of common stock in relation to acquisitions	10,000			10,000
Issuance of common stock in relation to acquisitions, shares			1,322,075
Issuance of common stock for stock option exercises	$ 124			124
Issuance of common stock for stock option exercises, shares	34,000		34,000
Issuance of common stock	$ 53,500			53,500
Issuance of common stock, shares			7,046,049
Repurchase of common stock (Note 11)	(1,531)			(742)	(789)
Repurchase of common stock (Note 11), shares			(218,905)
Stock-based compensation	3,848			3,848
Other comprehensive gain (loss)	212						212
Net income (loss)	(8,394)				(8,394)
Ending Balance at Dec. 31, 2019	216,775	(3,686)	$ 8	324,968	(106,030)	(3,686)	(2,171)
Ending Balance, shares at Dec. 31, 2019			84,079,366
Beginning Balance at Jun. 30, 2019	143,513		$ 8	258,954	(113,046)		(2,403)
Beginning Balance, shares at Jun. 30, 2019			75,815,000
Issuance of common stock in relation to acquisitions	2,000			2,000
Issuance of common stock in relation to acquisitions, shares			267,000
Issuance of common stock for stock option exercises	53			53
Issuance of common stock for stock option exercises, shares			7,000
Stock-based compensation	867			867
Other comprehensive gain (loss)	(736)						(736)
Net income (loss)	1,519				1,519
Ending Balance at Sep. 30, 2019	147,216	(3,686)	$ 8	261,874	(111,527)	(3,686)	(3,139)
Ending Balance, shares at Sep. 30, 2019			76,089,000
Beginning Balance at Dec. 31, 2019	216,775	$ (3,686)	$ 8	324,968	(106,030)	$ (3,686)	(2,171)
Beginning Balance, shares at Dec. 31, 2019			84,079,366
Issuance of common stock to directors, shares			20,000
Issuance of common stock for stock option exercises	$ 1,224			1,224
Issuance of common stock for stock option exercises, shares	306,000		306,000
Issuance of common stock upon vesting of restricted stock units, shares			9,000
Issuance of common stock	$ 106,730		$ 1	106,729
Issuance of common stock, shares			7,500,000
Stock-based compensation	4,286			4,286
Other comprehensive gain (loss)	(637)						(637)
Net income (loss)	60,174				60,174
Ending Balance at Sep. 30, 2020	388,552		$ 9	437,207	(45,856)		(2,808)
Ending Balance, shares at Sep. 30, 2020			91,914,000
Beginning Balance at Jun. 30, 2020	240,506		$ 8	328,588	(82,213)		(5,877)
Beginning Balance, shares at Jun. 30, 2020			84,349,000
Issuance of common stock for stock option exercises	259			259
Issuance of common stock for stock option exercises, shares			56,000
Issuance of common stock upon vesting of restricted stock units, shares			9,000
Issuance of common stock	106,730		$ 1	106,729
Issuance of common stock, shares			7,500,000
Stock-based compensation	1,631			1,631
Other comprehensive gain (loss)	3,069						3,069
Net income (loss)	36,357				36,357
Ending Balance at Sep. 30, 2020	$ 388,552		$ 9	$ 437,207	$ (45,856)		$ (2,808)
Ending Balance, shares at Sep. 30, 2020			91,914,000

Combined Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net income (loss)	$ 60,174	$ (14,406)	$ (8,394)	$ (13,720)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Stock-based compensation	4,286	2,813	3,848	2,751
Depreciation	6,706	5,448	7,384	5,670
Amortization of intangible assets	25,344	23,551	30,123	30,893
Debt issuance costs amortization	1,990	2,281	2,989	3,420
Accretion of deferred purchase consideration				327
Loss on debt extinguishment	3,256
Change in fair value of contingent earn-out consideration			(592)
Loss on disposal of property and equipment			52	357
Deferred income taxes	(6,892)	(7,257)	(11,535)	(3,017)
Loss (gain) on foreign exchange			26	(957)
Other	1,070	598
Provision for doubtful accounts			167	237
Changes in operating assets and liabilities:
Accounts receivable	(58,067)	(10,573)	(48,033)	(7,339)
Inventories	(60,886)	(13,021)	15,711	(29,753)
Prepaid expenses and other assets	(20,431)	(3,312)	(1,619)	(10,869)
Accounts payable	92,772	2,065	16,203	25,835
Other liabilities and accrued expenses	51,002	12,947	30,773	(3,413)
Net cash provided by operating activities	100,324	1,134	37,103	422
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(836)	(4,846)	(126,104)	(30,210)
Payment of deferred consideration		(10,300)	(10,300)
Purchase of property and equipment	(5,072)	(7,003)	(8,848)	(8,345)
Purchase of intangible asset			(175)
Net cash used in investing activities	(5,908)	(22,149)	(145,427)	(38,555)
Cash flows from financing activities:
Proceeds from issuance of debt, net			113,885	113,575
Repayment of debt	(140,394)	(2,775)	(3,969)	(3,088)
Payment of debt issuance costs	(194)	(150)	(2,450)	(1,836)
Borrowings from (repayments of) line of credit, net		8,700	(27,000)	27,000
Proceeds from initial public offering and private placement, net of underwriting discounts and commissions	118,575
Payment of other offering costs	(5,582)	(108)	(245)	(3,307)
Proceeds from issuance of common stock to common stockholders			53,500
Cash dividends paid to common stockholders				(85,000)
Repurchase of common stock		(569)	(1,531)
Proceeds from exercise of stock options	1,224	80	124	10
Net cash provided by (used in) financing activities	(26,371)	5,178	132,314	47,354
Effect of exchange rate changes on cash	149	46	37	(331)
Net increase (decrease) in cash and restricted cash	68,194	(15,791)	24,027	8,890
Cash and restricted cash at the beginning of the period	51,947	27,920	27,920	19,030
Cash and restricted cash at the end of the period	120,141	12,129	51,947	27,920
Supplemental cash flow disclosures:
Cash paid for interest	23,397	24,799	32,842	28,865
Cash paid for (refund of) income taxes	7,276	372	571	6,122
Supplemental schedule of non-cash investing and financing activities:
Equipment purchased and unpaid at period end	2,331	1,353	927	2,660
Issuance of common stock relating to business acquisitions		2,000	10,000	6,226
Deferred purchase consideration (Note 5)	145	6,003	7,641	10,331
Measurement period adjustment relating to business acquisitions	1,834
Forward contract on common stock repurchase		962
Deferred offering costs included in accounts payable and accrued expenses	$ 2,710	$ 2,346	$ 2,255	$ 1,989

Description of Business

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business

1. Description of Business and Basis of Presentation

Description of Business

Corsair Gaming, Inc., a Delaware corporation, together with its subsidiaries (collectively, “Corsair” the “Company”, “we”, “us”, or “our”), is a global provider and innovator of high-performance gear for gamers, streamers and content creators.

Corsair is organized into two reportable segments:

•

Gamer and creator peripherals. Includes our high-performance gaming keyboards, mice, headsets and controllers, as well as our streaming gear including capture cards, studio accessories, and microphones, among others.

•

Gaming components and systems. Includes our high-performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others.

Reorganization

On September 15, 2020, a corporate reorganization (the “Reorganization”) was consummated whereby we now own directly and indirectly all of the operating subsidiaries and assets that were formerly owned by Corsair Group (Cayman), LP (the “Parent”) and Corsair Group (US), LLC, a minority interest holder. The Parent is a limited partnership domiciled in the Cayman Islands. The Parent and Corsair Group (US), LLC are under common control of the affiliates of EagleTree Capital, LP, a private equity investment firm. Prior to the Reorganization, the North American and international operations of Corsair were conducted by certain operating subsidiaries held by separate entities, Corsair Gaming, Inc. and Corsair Holdings (Lux) S.à r.l. (or “Corsair Luxco”), respectively, each of which was substantially owned by and under common control of the Parent.

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

In order for management and certain other partnership unit holders of the Parent to hold Corsair’s common stock directly, we entered into exchange agreements with such holders to exchange the Parent’s units for shares of Corsair’s common stock on a pro rata basis relative to their holdings in the Parent prior to the Reorganization.

•

The Parent’s 2017 Equity Incentive Program was assumed by Corsair and all of the outstanding options to acquire units under the Parent’s 2017 Equity Incentive Program were converted into options to purchase Corsair’s common stock on a pro rata basis with an adjusted exercise price to reflect the assumption.

•

We implemented a 1-for-28,693.596843964 stock split resulting in there being 84,405,366 shares of Corsair’s common stock outstanding and 10,029,388 options outstanding to purchase Corsair’s common stock as of the date of the Reorganization.

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Unless otherwise indicated, the accompanying condensed combined consolidated financial statements and related notes that reference Corsair’s capitalization, including other matters relating to equity, share, and per share information, have been retroactively revised to reflect the Reorganization for all periods presented. Accordingly, references in the footnotes related to transactions entered into by the Parent involving the Parent’s units or options to purchase the Parent’s units have been revised as common share equivalents of Corsair and options to purchase shares of Corsair’s common stock using the ratio of Corsair’s issued and outstanding shares immediately post-Reorganization to the Parent’s issued and outstanding units immediately post-Reorganization but prior to the unit exchanges described above.

Initial Public Offering

On September 25, 2020, we completed our initial public offering (IPO). In connection with the IPO, we sold 7,500,000 shares of common stock at $17.00 per share, resulting in proceeds of $118.6 million, net of the underwriting discounts and commissions and before offering costs. In connection with the IPO, certain stockholders sold 6,500,000 shares of common stock at $17.00 per share. Subsequent to the IPO, certain stockholders further sold 1,135,375 shares pursuant to the underwriters’ exercise of their option to purchase additional shares. We did not receive any of the proceeds from the sale of shares by the selling stockholders.

Deferred offering costs consist primarily of accounting, legal, and other fees related to the IPO. Prior to the IPO, all deferred offering costs were capitalized in other assets in the condensed combined consolidated balance sheets. After the IPO, $11.8 million of deferred offering costs were reclassified into stockholders’ equity as a reduction of the IPO proceeds in the condensed combined consolidated balance sheets. The amount of deferred offering costs capitalized as of December 31, 2019 was $5.8 million.

Basis of Presentation

Our interim condensed combined consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. The condensed combined consolidated balance sheet as of December 31, 2019, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed combined or omitted pursuant to such rules and regulations. Therefore, these interim condensed combined consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the final prospectus dated and filed on September 24, 2020 (the “Prospectus”) with the SEC pursuant to Rule 424(b)(4) under the Securities Act of 1933, as amended, (the “Securities Act”).

The interim condensed combined consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of our condensed combined consolidated balance sheet as of September 30, 2020 and our results of operations for the three and nine months ended September 30, 2020 and 2019. The results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results expected for the current fiscal year or any other future periods.

Except as described elsewhere to the condensed combined consolidated financial statements, there have been no material changes to our significant accounting policies as described in Note 2 “Summary of Significant Accounting Policies” in the Notes to the consolidated financial statements in our Prospectus.

Principles of Consolidation

The accompanying condensed combined consolidated financial statements include the accounts of Corsair and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

1. Description of Business

The term “Company,” as used in these notes, means Corsair Gaming, Inc.

Corsair Gaming, Inc. (formerly known as Corsair Acquisition (US), Inc.), a Delaware corporation, together with its subsidiaries (“Corsair” or the “Company”), designs, markets and distributes gaming peripherals including keyboards, mice and gaming headsets, computer cases, power supply units, cooling systems and fans, high-performance DRAM modules, USB flash drives, solid-state drives, console gaming accessories, gaming personal computer systems, gaming laptops and accessories. The Company’s products are primarily sold through a network of distributors and retailers (including etailers), and some direct to consumers through its websites.

Reorganization

On September 15, 2020, a corporate reorganization (the “Reorganization”) was consummated whereby the Company now owns directly and indirectly all of the operating subsidiaries and assets of Corsair that had been owned by Corsair Group (Cayman), LP (the “Parent”) and Corsair Group (US), LLC, a minority interest holder. The Parent is a limited partnership domiciled in the Cayman Islands. The Parent and Corsair Group (US), LLC are under common control of the affiliates of EagleTree Capital, LP, a private equity investment firm. Prior to the Reorganization, the North American and international operations of the Company were conducted by certain operating subsidiaries held by separate entities, Corsair Gaming, Inc. and Corsair Holdings (Lux) S.à r.l. (or “Corsair Luxco”), respectively, each of which was substantially owned by and under common control of the Parent.

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

In order for management and certain other partnership unit holders of the Parent to hold the Company’s common stock directly, the Company entered into exchange agreements with such holders to exchange the Parent’s units for shares of the Company’s common stock on a pro rata basis to their holdings in the Parent prior to the Reorganization.

•

The Parent’s 2017 Equity Incentive Program was assumed by the Company and all of the outstanding options to acquire units under the Parent’s 2017 Equity Incentive Program were converted into options to purchase the Company’s common stock on a pro rata basis with an adjusted exercise price to reflect the assumption.

•

The Company implemented a 1-for-28,693.596843964 stock split resulting in there being 84,405,366 shares of our common stock outstanding and 10,029,388 options outstanding to purchase the Company’s common stock as of September 15, 2020.

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Unless otherwise indicated, the accompanying combined consolidated financial statements and related notes that reference the Company’s capitalization, including other matters relating to equity, share, and per share information, have been retroactively revised to reflect the Reorganization for all periods presented. Accordingly, references in the footnotes related to transactions entered into by the Parent involving the Parent’s units or options to purchase the Parent’s units have been revised as common share equivalents of the Company and options to purchase shares of the Company’s common stock using the ratio of the Company’s issued and outstanding shares immediately post-Reorganization to the Parent’s issued and outstanding units immediately post-Reorganization but prior to the unit exchanges described above.

Summary of Significant Accounting Policies

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of condensed combined consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the valuation of intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, deferred income tax, and common stock (prior to the IPO completed in September 2020). These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

Risks and Uncertainties related to the COVID-19 Pandemic

Due to the COVID-19 pandemic, there has been and will continue to be uncertainty and disruption in the global economy and financial markets. Since early 2020, we have experienced some business disruptions due to COVID-19 including the stoppage in our factories in early 2020, disruption in our supply chain and increased distribution costs, which led to increase in operating costs. This negative financial impact has been offset by strong revenue growth year-over-year partly due to an increase in demand for our gear as more people in more countries are under shelter-in-place restrictions. The increase in demand has continued into the third quarter of 2020 and we expect it to continue through the remainder of the year as the COVID-19 pandemic continues. However, as the global economic activity slows down, the demand for our gear could decline despite these trends. The extent to which the COVID-19 outbreak ultimately impacts our business, sales, results of operations and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including, but not limited to, the duration and spread of the outbreak, its severity, the actions to contain the virus or treat its impact, and how quickly and to what extent normal economic and operating conditions can resume. Even after the COVID-19 outbreak has subsided, we may continue to experience significant impacts to our business as a result of its global economic impact, including any economic downturn or recession that has occurred or may occur in the future.

As of the date of issuance of these condensed combined consolidated financial statements, we are not aware of any specific event or circumstance that would require updates to our estimates and judgments or revisions due to COVID-19 to the carrying value of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the condensed combined consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the condensed combined consolidated financial statements.

Advertising Costs

Advertising costs are expensed as incurred and are included as a component of sales, general and administrative expense in the condensed combined consolidated statements of operations. Advertising and promotion expenses were $4.1 million and $2.6 million for the three months ended September 30, 2020 and 2019, respectively, and $12.3 million and $7.4 million for nine months ended September 30, 2020 and 2019, respectively.

Nonmonetary Transactions

We have sales and repurchases of inventory with our manufacturers, which are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by Corsair, we will record prepaid inventories and accrued liabilities as a nonmonetary transaction. When the reciprocal purchase of inventory from the manufacturer is transacted, a payable to the manufacturer at the repurchase price will be recorded, which replaces the initial nonmonetary transaction and inventory will be reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory. As of September 30, 2020, we recognized $2.1 million prepaid inventory and $2.4 million accrued liabilities in the condensed combined consolidated balance sheet for such nonmonetary transactions with our manufacturers.

Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Recently Adopted Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which was further updated and clarified by the FASB through issuance of additional related ASUs. ASU 2016-13 replaces the incurred-loss impairment methodology and requires immediate recognition of estimated credit losses expected to occur for most financial assets, including trade receivables. We adopted this standard effective January 1, 2020 using a modified retrospective approach. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. We adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), to modify certain disclosure requirements on fair value measurements in Topic 820. We adopted this standard effective January 1, 2020. The adoption of this new standard did not have a material impact on our condensed combined consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), and subsequent updates (collectively, referred to as Accounting Standard Codification 842 or Topic 842). Topic 842 requires a lessee to recognize right of use (“ROU”) assets and lease liabilities for a lease with terms longer than 12 months on the consolidated balance sheets and to disclose key information related to the leasing arrangements.

On January 1, 2020, we adopted Topic 842 using the modified retrospective method, applying Topic 842 to all leases existing at the date of initial application. We elected to use the effective date as the date of initial application. Consequently, prior period balances and disclosures have not been restated. We elected the package of transitional practical expedients, which among other provisions, allows us to carry forward prior conclusions about lease identification and classification. In addition, for operating leases, we elected to account for lease and non-lease components as a single lease component. We also made an accounting policy election not to apply the recognition guidance of Topic 842 to record all leases that, at the lease commencement date, have a lease term of 12 months or less on the consolidated balance sheet.

The adoption of Topic 842 had a material impact to our condensed combined consolidated balance sheet but did not have an impact on our condensed combined consolidated statement of operations or cash flows. As a result of adopting Topic 842 as of January 1, 2020, we recognized lease liabilities of $17.9 million and corresponding ROU assets of $17.7 million. See Note 16, Leases, for additional information.

Accounting Pronouncements Issued but Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), to simplify various aspects related to the accounting for income taxes. The new guidance is effective for us beginning in year 2021. We are in the process of evaluating the effects of this new guidance on our condensed combined consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), to provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new guidance is effective, at our election, beginning March 12, 2020 through December 31, 2022. Our term loan and revolving line of credit have interest payments that are correlated to a reference rate, and we are currently evaluating the impact of adopting this guidance and the potential effects it could have on our condensed combined consolidated financial statements.

2. Summary of Significant Accounting Policies

Basis of Presentation

The Company’s combined consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”). These combined consolidated financial statements include the accounts of the Company and its subsidiaries and have been prepared using the Company’s historical basis in determining the assets and liabilities and the results of the Company’s operations. All significant intercompany balances and transactions have been eliminated. The Company has no involvement with variable interest entities.

Use of Estimates

The preparation of combined consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the combined consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates include, but are not limited to, the valuation of common stock, intangible assets, accounts receivable, sales return reserves, reserves for customer incentives, warranty reserves, inventory, derivative instruments, stock-based compensation, and the valuation of deferred income tax. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment. The Company adjusts such estimates and assumptions when facts and circumstances dictate. Illiquid credit markets, volatile equity, foreign currency, declines in consumer spending and global health emergencies increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.

In January 2020, a novel strain of coronavirus was identified in China, resulting in shutdowns of manufacturing and commerce, as well as global travel restrictions to contain the virus. The impact has since extended to other regions around the world. As of the date of issuance of the combined consolidated financial statements, the Company is not aware of any specific event or circumstance that would require updates to the Company’s estimates and judgments or revisions to the carrying value of its assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the combined consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to the combined consolidated financial statements.

Corrections of Immaterial Errors

Certain amounts previously reported as of December 31, 2017 have been corrected as a result of several immaterial misstatements that were identified during the preparation of the Company’s 2018 and 2019 combined consolidated financial statements. These corrections, in aggregate, resulted in a $3.7 million increase in the retained earnings as of December 31, 2017.

Segments

The Company defines its segments as those operations the chief operating decision maker (“CODM”), determined to be the Chief Executive Officer of the Company, regularly reviews to analyze performance and allocate resources. The Company measures the results of segments using each segment’s net revenue and gross profit, as determined by the information regularly reviewed by the CODM.

The Company continually monitors and reviews its segment reporting structure in accordance with ASC 280, Segment Reporting, (“Topic 280”) to determine whether any changes have occurred that would impact its reportable segments. With effect from the fourth quarter of 2019, as a result of a change in the way the Company’s CODM reviews and allocates resources to the operating segments, the Company’s segment reporting assessment concluded that its gaming PC memory operating segment no longer met the definition of an operating segment under Topic 280 and became a component within the gaming PC components operating segment. Therefore, to align with the objective of Topic 280 and present the Company’s disaggregated financial information consistent with the management approach, beginning with fiscal year 2019, the Company reports its financial performance, including revenue and gross profit based on two reportable segments:

•

Gamer and Creator Peripherals (previously defined as Gaming PC Peripherals), which includes keyboards, mice, mousepads, gaming headsets and gaming chairs, gamer and creator streaming gear including game and video capture hardware, video production accessories and docking stations, and following our SCUF acquisition, console gaming accessories including controllers; and

•

Gaming Components and Systems (now includes the Gaming PC Memory component), which includes PSUs, cooling solutions including custom cooling products, computer cases, prebuilt and custom built gaming PCs and laptops, and high performance memory components such as DRAM modules.

Comparative period financial information for fiscal year 2018 by reportable segment has been recast to conform with current presentation. Refer to Note 15 for further information.

Cash and Restricted Cash

The Company had $2.3 million and $3.8 million of total restricted cash deposits as of December 31, 2018 and December 31, 2019, respectively. The restricted cash serves as collateral for certain bank guarantees, customer deposits and security deposits.

The following table provides a reconciliation of cash and restricted cash reported within the combined consolidated balance sheets that sums to the total as shown in the combined consolidated statements of cash flows.


	December 31, 2018		December 31, 2019
	December 31, 2018		December 31, 2019

	(In thousands)
Cash	$	25,639	$	48,165
Restricted cash—short term		2,281		3,552
Restricted cash—noncurrent		—		230

Total cash and restricted cash	$	27,920	$	51,947

Accounts Receivable, net

The Company records accounts receivable from contracts with customers at the invoiced amount when it has an unconditional right to consideration, net of an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The Company bases its allowance on regular assessments of its customers’ liquidity and financial condition through analysis of information obtained from credit rating agencies, financial statement review and historical collection trends.

Under ASC 605, “Revenue Recognition” (“Topic 605”), sales return reserves of $9.4 million was included within accounts receivable, net as of December 31, 2018. Subsequent to the adoption of ASC 606, “Revenue from Contracts with Customers” (“Topic 606”), such balances are presented on a gross basis as refund liability of $15.1 million included in other liabilities and accrued expenses and as sales return asset of $5.7 million included in prepaid and other current assets.

Under Topic 605, revenue reserves for certain customer incentive programs totaling $17.1 million were included within accounts receivable, net as of December 31, 2018. Subsequent to the adoption of Topic 606, such balances are presented as accrued customer incentive programs included in other liabilities and accrued expenses. Refer to subsection “Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606” in this footnote for a detailed discussion on the impact of adopting the new accounting standard.

The allowance is recorded as sales, general and administrative expense in the Company’s combined consolidated statements of operations. Additional allowances may be required if the liquidity or financial condition of its customers were to deteriorate.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash and accounts receivable. The Company maintains cash with various financial institutions that may at times exceed federally insured limits. Management believes that the financial institutions are financially sound and the Company has not experienced any losses.

The Company’s customers that accounted for 10% of total accounts receivable, net were as follows:


	As of December 31, 2018			As of December 31, 2019

Customer A		35	%		34	%
Customer B		13	%		20	%

The Company had one customer that accounted for 10% of more of total net revenue as follows:


	Year ended December 31, 2018			Year ended December 31, 2019

Customer A		22	%		25	%

Inventories

Inventories primarily consist of finished goods and to a lesser extent component parts, which are purchased from contract manufacturers and component suppliers. Inventories are stated at lower of cost and net realizable value using the weighted average cost method of accounting. The Company assesses the valuation of inventory balances including an assessment to determine potential excess and/or obsolete inventory. The Company may be required to write down the value of inventory if estimates of future demand and market conditions indicate estimated excess or obsolete inventory. For the periods presented, the Company has not experienced significant write-downs.

Fair Value of Financial Instruments

Fair value accounting is applied to all financial assets and liabilities that are recognized or disclosed at fair value in the combined consolidated financial statements on a recurring basis. The carrying amounts of the Company’s financial instruments, including cash, restricted cash, accounts receivable, accounts payable, borrowings from credit lines and other liabilities and accrued expenses approximate fair value due to their short-term maturities. Management believes that the long-term debt bearing variable interest rates represents the prevailing market rates for instruments with similar characteristics; accordingly, the carrying value of this instrument approximates its fair value. Refer to note 3 regarding the fair value of the Company’s other financial assets and liabilities.

Property and Equipment, net

Property and equipment additions are recorded at cost, less accumulated depreciation. Major improvements that extend the life, capacity or improve the safety of an asset are capitalized, while maintenance and repairs are expensed as incurred. Depreciation is calculated on the straight-line method over the estimated useful lives of the assets:


Manufacturing equipment		2 – 5 years
Computer equipment, software and office equipment		3 – 5 years
Furniture and fixtures		2 – 7 years
Leasehold improvements		Shorter of lease term or the useful lives of the improvements

Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment charge will be recognized in the event the net book value of such assets exceeds the future undiscounted cash flows attributable to the asset group. No impairment charges were recorded in the periods presented.

Business Combinations

The Company accounts for acquisitions using the acquisition method of accounting, which requires that the assets acquired, liabilities assumed, contractual contingencies and contingent consideration are recorded at the date of acquisition at their respective fair values. Goodwill is recorded when consideration paid in a purchase acquisition exceeds the fair value of the net assets acquired.

Goodwill and Intangible Assets

Goodwill represents the excess purchase price over the estimated fair value of net assets acquired in a business combination. Identifiable intangible assets with finite lives are carried at cost and amortized using a method that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up or, if that pattern cannot be reliably determined, using a straight-line amortization method. Amortization expense related to patents is included in cost of revenues. Amortization expense related to developed technology is included in product development costs. Amortization expense related to customer relationships, trade name and non-compete agreements is included in sales, general and administrative costs.

For definite-live intangible assets, the Company evaluates the recoverability of intangible assets for impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If the carrying amount exceeds the fair value, an impairment charge is recognized in an amount equal to that excess. No such impairment charges were recorded in the periods presented.

The Company tests for goodwill impairment at the reporting unit level on an annual basis at October 1, or more frequently if events or changes in circumstances indicate that the asset is more likely than not impaired. For the annual goodwill impairment test, the Company elects to perform the quantitative impairment test. The ultimate outcome of the goodwill impairment test for a reporting unit should be the same whether the Company chooses to perform the qualitative assessment or proceeds directly to the quantitative impairment test.

The quantitative impairment test compares the recoverability of goodwill measured at the reporting unit level to the reporting unit’s carrying amount, including goodwill. The fair value of the reporting unit, which is measured based upon, among other factors, market multiples for comparable companies as well as a discounted cash flow analysis. If the recorded value of the assets, including goodwill, and liabilities (“net carrying value”) of each reporting unit exceeds its fair value, an impairment loss may be required to be recognized. Further, to the extent the net carrying value of the Company as a whole is greater than its fair value in the aggregate, all, or a significant portion of its goodwill may be considered impaired. The Company performed its 2019 annual goodwill impairment assessment and determined that no impairment existed as of the date of the impairment test.

No impairment charges were recorded in the periods presented. Refer to note 6 for additional information regarding the Company’s goodwill and intangible assets.

Warranty Reserve

All of the Company’s products are covered by warranty to be free from defects in material and workmanship for periods ranging from six months to five years, and for life-time for memory products. The Company’s warranty does not provide a service beyond assuring that the product complies with agreed-upon specifications and is generally not sold separately. At the time of sale, an estimate of future warranty costs is recorded as a component of cost of revenue and a warranty liability is recorded for estimated costs to satisfy the warranty obligation. The Company’s estimate of costs to fulfill its warranty obligations is based on historical experience and expectations of future costs to repair or replace.

Derivative Instruments and Hedging Activities

From time to time, the Company enters into derivative instruments such as foreign currency forward contracts, to minimize the short-term impact of foreign currency exchange rate fluctuations on certain foreign currency denominated assets and liabilities, and interest rate cap contracts, to minimize the Company’s exposure to interest rate movements on the Company’s variable rate debts. The foreign currency forward contracts generally mature within three to four months and the interest rate cap contracts mature within two years. The Company does not enter into derivative instruments for trading purposes. The derivative instruments are recorded at fair value in prepaid expenses and other current assets or other liabilities and accrued expenses on the combined consolidated balance sheets. The Company does not designate such instruments as hedges for accounting purposes, accordingly, changes in the value of these contracts are recognized in each reporting period in other (expense) income, net in the combined consolidated statements of operations.

Deferred Issuance Costs and Debt Discounts

Costs incurred in obtaining long-term financing paid to parties other than creditors are considered a debt issuance cost. Amounts paid to creditors are recorded as a reduction in the proceeds received by the creditor and are considered a discount on the issuance of debt. Deferred issuance costs and debt discounts are amortized over the terms of the long-term financing agreements using the effective-interest method and recorded as a deduction of the carrying amount of the debt in the combined consolidated balance sheets. Deferred issuance costs of the Company’s revolving line of credit are recorded in prepaid expenses and other current assets and other assets, according to the timing of amortization.

Deferred Offering Costs

Deferred offering costs, which include legal, accounting, printer and filing fees, related to Initial Public Offering (“IPO”) are capitalized. The deferred offering costs will be offset against proceeds from the IPO upon the effectiveness of the offering. In the event the offering is terminated, all capitalized deferred offering costs will be immediately expensed. As of December 31, 2018 and December 31, 2019, $5.3 million and $5.8 million of deferred offering costs were capitalized, respectively, which are included in the other assets on the combined consolidated balance sheets.

Revenue Recognition

The Company’s products are primarily sold through a network of distributors and retailers (including etailers), and some direct to consumers. The Company sells mainly hardware products, such as gamer and creator peripherals, gaming components and systems and gaming PC memory, which may include embedded software that function together. Hardware devices are generally plug and play, requiring no configuration and little or no installation.

Under Topic 605, the Company recognized revenue when persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, the price becomes fixed or determinable and collectability is reasonably assured. Evidence of an arrangement existed when there is a customer contract or a standard customer purchase order. The Company considered delivery complete when title and risk of loss transfer to the customer, which is generally upon shipment, but no later than physical receipt by the customer. The Company’s revenue recognition policies were consistent worldwide.

On January 1, 2019 the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of December 31, 2018. Results for reporting periods beginning after December 31, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported under Topic 605. Under Topic 606, the Company determines revenue recognition through the following steps:

•

identification of the contract, or contracts, with the customer

•

identification of the performance obligations in the contract

•

determination of the transaction price

•

allocation of the transaction price to the performance obligations in the contract, and

•

recognition of revenue when, or as the performance obligation is fulfilled

With the adoption of Topic 606, the Company recognizes revenue when it satisfies performance obligations under the terms of its contracts, and control of its products is transferred to its customers in an amount that reflects the consideration the Company expects to receive from its customers in exchange for those products or services.

Revenue is recognized at a point in time when control of the products is transferred to the customer which generally occurs upon shipment or delivery to customer. The Company’s revenue recognition policies are consistent worldwide.

The impact of the adoption of Topic 606 on the Company’s combined consolidated financial statements is discussed in the “Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606” section below.

The Company’s products are primarily sold through a network of distributors and retailers (including etailers) worldwide. Substantially all revenue recognized by the Company relates to contracts with distributors and retailers to sell gamer and creator peripherals and gaming components and systems. These products are hardware devices, which may include embedded software that function together, and are considered as one performance obligation. Hardware devices are generally plug and play, requiring no configuration and little or no installation. Revenue is recognized at a point in time when control of the products is transferred to the customer which generally occurs upon shipment or delivery to customer. The Company reports revenue net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as other liabilities and accrued expenses until remitted to the relevant government authority. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included as part of the Company’s distribution costs recorded under sales, general and administrative expenses. The Company generally provides a warranty on products that provides assurance that our products conform to published specifications. Such assurance-type warranties are not deemed to be separate performance obligations from the product, and costs associated with providing the warranties are accrued in accordance with ASC 460-10, Guarantees.

The Company offers return rights and customer incentive programs. Customer incentive programs include special pricing arrangements, promotions, rebates and volume-based incentives.

The Company has agreements with certain customers that contain terms allowing price protection credits to be issued in the event of a subsequent price reduction. The Company’s decision to make price reductions is influenced by product life cycle stage, market acceptance of products, the competitive environment, new product introductions and other factors. Accruals for estimated expected future pricing actions are recognized at the time of sale based on analysis of historical pricing actions by customer and by product, inventories owned by and located at distributors and retailers, current customer demand, current operating conditions, and other relevant customer and product information, such as stage of product life-cycle.

The transaction price received by the Company from sales to its distributors and retailers is calculated as selling price net of variable consideration which may include product returns, price protection, and the Company’s estimate of claims for customer incentive programs related to current period product revenue.

Rights of return vary by customer and range from the right to return products to limited stock rotation rights allowing the exchange of a percentage of the customer’s quarterly purchases. Estimates of expected future product returns qualify as variable consideration and are recorded as a reduction of the transaction price of the contract at the time of sale based on historical return trends. Return trends are influenced by product life cycle status, new product introductions, market acceptance of products, sales levels, the type of customer, seasonality, product quality issues, competitive pressures, operational policies and procedures, and other factors. Return rates can fluctuate over time but are sufficiently predictable to allow the Company to estimate expected future product returns.

The Company normally requires payments from customers within 30 to 90 days from invoice date. The Company does not generally modify payment terms on existing receivables. The Company’s contracts with customers typically do not include significant financing components as the period between the satisfaction of the performance obligations and timing of payment are generally within one year.

Customer incentive programs are considered variable consideration, which the Company estimates and records as a reduction to revenue at the time of sale based on historical experience and forecasted incentives. Certain customer incentives require management to estimate the percentage of those programs which will not be claimed or will not be earned by customers based on historical experience and on the specific terms and conditions of particular programs. The percentage of these customer programs that will not be claimed or earned is commonly referred to as “breakage”. The Company accounts for breakage as part of variable consideration, subject to constraint, and records the estimated impact in the same period when revenue is recognized at the expected value. Significant management judgment and estimates are used to determine the amount of variable consideration to be recognized, as well as any subsequent adjustments to it, such that it is probable that a significant reversal of revenue will not occur.

During the year ended December 31, 2019, the Company did not recognize any material revenue adjustment related to performance obligations satisfied in prior periods as a result of changes in estimated variable consideration. Because performance obligations in the Company’s contracts with customers relate to contracts with a duration of less than one year, the Company has elected to apply the optional exemption to not disclose the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period.

Cost of Revenue

Cost of revenue consists of product costs (including costs of contract manufacturers), inbound freight costs from manufacturers to the Company’s distribution hubs, as well as inter-hubs shipments, duties and tariffs, warranty replacement costs, costs to process and rework returned items, depreciation of tooling equipment, warehousing costs, excess and obsolete inventory write-downs, certain allocated costs related to facilities and IT department, and personnel-related expenses and other operating expenses related to supply chain logistics.

Distribution Costs

Distribution costs, recorded as a component of sales, general and administrative expenses, include the costs to operate two of the Company’s distribution hubs internally and the costs paid to third party logistics providers to operate the Company’s remaining four distribution hubs. Distribution costs also include the costs of shipping products to customers through third party carriers. Amounts billed to customers for shipping and handling of products are recorded in net revenue. The Company does not consider distribution costs to be part of the costs to bring its products to the finished condition and therefore records such distribution costs as sales, general and administrative expense rather than in cost of revenue.

Product Development Costs

Product development costs are generally expensed as incurred and reported in the combined consolidated statements of operations. Product development costs consist primarily of the costs associated with the design and testing of new products and improvements to existing products. These costs relate primarily to compensation of personnel and consultants involved with product design, definition, compatibility testing and qualification. To date, almost all of the software development costs have been expensed as incurred because the period between achieving technological feasibility and the release of the software has been short and development costs qualifying for capitalization have been insignificant.

Advertising Costs

Advertising costs are expensed as incurred and are included as a component of sales, general and administrative expense in the combined consolidated statements of operations. Advertising and promotion expenses were $8.7 million and $11.3 million for the years ended December 31, 2018 and 2019, respectively.

Stock-Based Compensation

U.S. GAAP requires the measurement and recognition of compensation expense for all stock-based awards, including options, using a fair-value based method. The Company estimates the fair value of option awards on the date of grant using a Black-Scholes-Merton option-pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period based on awards ultimately expected to vest. The Company has elected to recognize actual forfeitures by reducing the employee stock-based compensation in the same period as the forfeitures occur.

Nonmonetary Transactions

The Company has sales and purchases of inventory with its manufacturers, which are accounted for as nonmonetary transactions. Upon sale of raw materials to the manufacturer, for the inventories on-hand with the manufacturer where there is an anticipated reciprocal purchase by the Company, the Company will record prepaid inventories and accrued liabilities as a nonmonetary transaction. When the Company transacts the reciprocal purchase of inventory from the manufacturer, the Company will record payable to the manufacturer at the repurchase price, which replaces the initial nonmonetary transaction and inventory will be reflected at carrying value, which includes the costs for the raw materials and the incremental costs charged by the manufacturer for additional work performed on the inventory.

Because the transactions are nonmonetary, they have not been included in the combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Employee Benefit Plan

The Company has a 401(k) defined contribution plan covering all eligible employees. The 401(k) plan allows for voluntary contributions by plan participants and provides for discretionary contributions by the Company as determined annually by the board of directors. The discretionary amounts may comprise a matching contribution (a designated percentage of a participant’s voluntary contribution) and/or a discretionary profit sharing contribution based on participant compensation. The Company contributed $0.9 million and $1.1 million for the years ended December 31, 2018 and 2019, respectively.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the tax and financial reporting bases of the Company’s assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in future years in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced through the establishment of a valuation allowance, if, based upon available evidence, it is determined that it is more likely than not that the deferred tax assets will not be realized. The Company is subject to foreign income taxes on its foreign operations. All deferred tax assets and liabilities are classified as non-current in the combined consolidated financial statements.

Uncertain Tax Positions

The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained on examination based on the technical merit of the position. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount, which is more than 50% likely of being realized upon ultimate settlement.

The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments. The Company recognizes interest charges and penalties related to unrecognized tax benefits as a component of the income tax (expense) benefit.

Foreign Currency

For subsidiaries that have non-U.S. dollar functional currencies, the Company translates the assets and liabilities of these subsidiaries using period-end exchange rates. Revenues and expenses are translated using average exchange rates in effect during the reporting period. Cumulative translation gains and losses are included as a component of stockholders’ equity in accumulated other comprehensive loss.

The Company remeasures monetary assets or liabilities denominated in currencies other than the functional currency using exchange rates prevailing on the balance sheet date. Foreign currency remeasurement gains and losses are included in other (expense) income, net in the combined consolidated statements of operations and the amounts were $(0.4) million and $1.4 million for the years ended December 31, 2018 and 2019, respectively. Gains and losses on long-term intercompany loans not intended to be repaid in the foreseeable future are recorded in other comprehensive loss.

Net Income (Loss) per Share

Basic net income (loss) per share and diluted net income (loss) per share are computed by dividing net income (loss) by the weighted-average number of shares outstanding during the period, without consideration of potential dilutive securities. Diluted net income per share is computed based on the weighted-average number of shares outstanding during the period, adjusted to include the incremental shares expected to be issued for assumed exercise of options under the treasury stock method.

Emerging Growth Company Status

The Company was and remained an emerging growth company (“EGC”), as defined in the JOBS Act, up to December 31, 2019 although its 2019 annual gross revenue exceeded $1.07 billion. According to the rule under the Securities Act of 1933, the Company will continue to be treated as an EGC for the purposes of disclosure requirement accommodations in its initial registration statement until the earlier of:

(a)

The date on which the Company consummates its initial public offering, or

(b)

The end of the one-year period beginning on December 31, 2019.

Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. Through December 31, 2019, the Company had elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date it (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, the Company’s combined consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Beginning on January 1, 2020, the Company adopts new or revised accounting standards issued by their respective effective dates for public companies.

Refer to the “Other Recently Adopted Accounting Pronouncements” section below for the Company’s recently adopted accounting pronouncements.

Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606

The Company adopted Topic 606 using the cumulative effect method for all contracts not completed as of January 1, 2019. As a result, the Company recognized the cumulative effect of applying the new revenue standard as an adjustment to the opening balance of retained earnings as of January 1, 2019. Prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under ASC 605, Revenue Recognition (Topic 605).

Results for reporting periods beginning after December 31, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historic accounting standards under Topic 605.

As a result of the adoption of the new standard, the Company recorded a reduction to accumulated deficit as of January 1, 2019 and reclassified accrued sales return liabilities and accrued customer incentive programs from accounts receivable, net to accrued and other current liabilities and other current assets.

The cumulative effect of the changes to the combined consolidated balance sheet from the adoption of Topic 606 were as follows (in thousands):


	As of December 31, 2018			Effect of Adoption of Topic 606			As of January 1, 2019
Assets:
Accounts receivable, net	$	122,042		$	26,527		$	148,569
Prepaid expenses and other current assets		17,298			5,674			22,972
Deferred Tax Assets		445			746			1,191
Liability and Stockholders’ Equity:
Income Tax Payable		3,572			(333	)		3,239
Other liabilities and accrued expenses		32,058			36,966			69,024
Accumulated deficit	$	(93,161	)	$	(3,686	)	$	(96,847	)

Net Reduction to Accumulated Deficit as of January 1, 2019

Under Topic 605, accrued customer incentive programs were recognized as a reduction of revenue at the later of when the related revenue was recognized or when the program was offered to the customer. Under Topic 606, these programs qualify as variable consideration and are recorded as a reduction of the transaction price at the contract inception based on the expected value method. The Company is required to estimate for these programs ahead of commitment date if customary business practice creates an implied expectation that such activities will occur in the future.

Under Topic 606, variable consideration must be estimated at the outset of the arrangement, subject to the constraint guidance to ensure that a significant revenue reversal will not occur. As a result, upon adoption of Topic 606, estimated breakage for accruals of certain customer incentive programs is recognized sooner as compared to Topic 605.

Balance Sheet Reclassifications

Under Topic 605, the gross amount of accrued revenue reserves for sales returns of $15.1 million, net of expected returned inventory and rework costs of $5.7 million, was included within accounts receivable, net as of December 31, 2018. Subsequent to the adoption of Topic 606, such balances are presented in the combined consolidated balance sheet, on a gross basis as accrued liability from returns of $15.1 million included in other liabilities and accrued expenses and as returned assets of $5.7 million included in prepaid expenses and other current assets.

Under Topic 605, revenue reserves for certain customer incentive programs totaling $17.1 million, were included within accounts receivable, net as of December 31, 2018. Subsequent to the adoption of Topic 606, such balances are presented as accrued customer incentive programs included in other liabilities and accrued expenses in the combined consolidated balance sheet.

The adoption of Topic 606 did not have an impact over the total cash flows from operating, investing, or financing activities.

Contract Assets

Contract assets represent amounts that have been recognized as revenue but for which the Company did not have the unconditional right to invoice the customer. The Company did not have contract assets as of January 1, 2019 and December 31, 2019.

Contract Liabilities (Deferred Revenue and Unearned Revenue)

The Company’s deferred revenue consists primarily of amounts that have been shipped and invoiced but not recognized as revenue as of period end because control of the inventory has not passed to the customer. Revenue will be recognized when the customer has obtained control of the inventory sold. The Company did not have any deferred revenue as of January 1, 2019, and the balance as of December 31, 2019 was $3.3 million. This increase is due to the Company’s recent acquisitions.

The Company’s unearned revenue consists of payments received from customers in advance of product shipment for webstore orders. These orders are generally shipped within two weeks from order date. The unearned revenue balance as of December 31, 2019 was $1.3 million.

Deferred revenue and unearned revenue are included in other liabilities and accrued expenses on the combined consolidated balance sheets.

Impact on Combined Consolidated Financial Statements

The following tables summarize the impact of adopting Topic 606 on the Company’s combined consolidated statement of operations for the year ended December 31, 2019 and combined consolidated balance sheet as of December 31, 2019 (in thousands, unaudited):


	Year Ended December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Net Revenue	$	1,097,174	$	1,098,018	$	(844	)


	As of December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Assets:
Accounts receivable, net	$	202,334	$	157,934	$	44,400
Prepaid and other current assets		24,696		13,514		11,182
Deferred tax assets		1,646		900		746
Liabilities and Stockholders’ Equity:
Income tax payable		8,524		8,857		(333	)
Other liabilities and accrued expenses		107,017		45,825		61,192
Total stockholders’ equity	$	216,775	$	221,306	$	(4,531	)

Other Recently Adopted Accounting Pronouncements

In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments, which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted the new standard on a prospective basis effective January 1, 2018. Prior periods were not retrospectively adjusted. The adoption of the ASU did not have a material effect on the Company’s combined consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred income taxes by requiring that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The Company adopted this standard effective January 1, 2018, and retrospectively applied the standard to all periods presented. The adoption of the ASU did not have a material impact on the Company’s combined consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU change aspects of accounting for share-based payment award transactions including accounting for income taxes, the classification of excess tax benefits and the classification of employee taxes paid when shares are withheld for tax-withholding purposes on the combined consolidated statement of cash flows, forfeitures, and minimum statutory tax withholding requirements. The Company adopted this standard effective January 1, 2018 and has elected to record forfeitures when they occur. The change in accounting principle with regards to forfeitures was adopted using a modified retrospective approach. As a result of the adoption, the Company no longer records the excess tax benefits related to equity compensation as an increase to additional paid-in-capital and records such excess tax benefits as a reduction of income tax expense. The adoption of the ASU did not have a material impact on the Company’s combined consolidated financial statements.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. It requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory. The Company adopted this standard effective January 1, 2019. The adoption did not have a material impact on its combined consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist with evaluating when a set of transferred assets and activities is a business. The Company adopted this standard effective January 1, 2019. The adoption did not have a material impact on the Company’s combined consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company adopted this standard effective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s combined consolidated financial statements.

In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements. ASU No. 2018-09 provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in ASU No. 2018-09 do not require transition guidance and were effective upon issuance of ASU No. 2018-09. However, many of the amendments do have transition guidance with effective dates for annual periods beginning after December 15, 2018. The Company adopted this standard effective January 1, 2019. The adoption did not have a material impact on the Company’s combined consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. As permitted by ASU 2018-15, the Company early-adopted this standard on a prospective basis beginning January 1, 2019. The adoption of this ASU did not have a material impact on the Company’s combined consolidated financial statements.

In July 2019, the FASB issued ASU No. 2019-07, Codification Updates to SEC Sections — Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization and Miscellaneous Updates (SEC Update). ASU 2019-07 aligns the guidance in various SEC sections of the Codification with the requirements of certain SEC final rules. ASU 2019-07 was effective immediately upon issuance. The adoption of ASU 2019-07 did not have a material impact on the Company’s combined consolidated financial statements.

Recently Issued Accounting Pronouncements, Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements and ASU No. 2019-01, Codification Improvements to Topic 842, Leases. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the combined consolidated statements of operations. The new standard is effective for the Company on January 1, 2020. The Company adopted the new standard on January 1, 2020 and used the effective date as the date of initial application. The Company adopted the new standard on January 1, 2020 using a modified retrospective transition approach as of the effective date as permitted by the amendments in ASU 2018-11. As a result, the Company will not adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption.

The Company plans on electing the package of transitional practical expedients upon adoption which, among other provisions, allows the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct cost for any existing leases on the adoption date. In addition, for all leases, the Company intends to elect to account for lease and nonlease components as a single lease component. The Company will also make an accounting policy election not to apply the recognition guidance of Topic 842 to record all leases that, at the lease commencement date, have a lease term of 12 months or less on the combined consolidated balance sheet. The Company has substantially completed its evaluation of the effect that the adoption of this new standard will have on its combined consolidated financial statements. In connection with the adoption of the new guidance, the Company expects to recognize ROU assets and lease liabilities in the range of $18 million to $19 million on its combined consolidated balance sheet for operating leases, with an immaterial impact to its results of operations and cash flows. The Company believes that substantially all of its undiscounted future minimum operating lease commitments based on its current lease portfolio that were not recognized on its combined consolidated balance sheet as of December 31, 2019 and as disclosed in Note 9 to the combined consolidated financial statements, will be subject to the new standard.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU simplifies the subsequent measurement of goodwill by eliminating the second step of the goodwill impairment test. The second step measures goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under the new guidance, a company will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The new guidance is effective for the Company beginning in year 2022. Early adoption is permitted for interim or annual goodwill impairment tests performed on test dates after January 1, 2017. The Company does not anticipate adoption of this standard will have a material impact on its combined consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), to modify certain disclosure requirements on fair value measurements in Topic 820. This new guidance is effective for the Company beginning in year 2020. The Company does not anticipate the adoption of this new standard will have a material impact on its combined consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), to simplify various aspects related to the accounting for income taxes. The new guidance is effective for the Company beginning in year 2021. The Company is in the process of evaluating the effects of this new guidance on its combined consolidated financial statements.

Fair Value Measurement

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurement

3. Fair Value Measurement

U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy is broken down into the following three levels of inputs that may be used to measure fair value:

Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the measurement date.

Level 2—Pricing inputs are other than quoted prices in active market, which are either directly or indirectly observable as of the report date. The nature of these securities includes investments for which quoted prices are available but traded less frequently and investments that are fair valued using other securities, the parameters of which can be directly observed.

Level 3—Securities that have little to no pricing observability as of the report date. These securities are measured using management’s best estimate of fair value, where the inputs into the determination of fair value are not observable and require significant management judgment or estimation.

The following tables summarize our financial assets and liabilities that were measured at fair value on a recurring basis, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value:


	September 30, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets:
Interest rate cap contract⁽⁴⁾	$	—	$	45	$	—	$	45
Foreign currency forward contracts⁽⁴⁾		—		88		—		88

Total assets	$	—	$	133	$	—	$	133

Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	2,078	$	2,078
Contingent consideration in connection with an immaterial business acquisition		—		—		9		9
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,481		1,481
Foreign currency forward contracts⁽⁴⁾		—		378		—		378

Total liabilities	$	—	$	378	$	5,206	$	5,584


	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335

Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

The fair value of the Origin earn-out liability (Refer to Note 5 for further details on this acquisition) is estimated using a Monte Carlo Simulation, a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the expected future standalone EBITDA growth of Origin during the earn-out period, appropriately discounted by a risk adjustment factor, considering the uncertainties associated with the obligation, its associated volatility, and calculated in accordance with the terms of the Unit Purchase Agreement for this acquisition. Significant changes of these significant inputs, in isolation or in combination, would result in a material change in fair value estimates. The interrelationship between these inputs is not considered significant. The fair value of the Origin earn-out liability is remeasured at every reporting period and the change in fair value is recorded to sales, general and administrative expenses. During the year ended December 31, 2019, a $0.6 million credit to sales, general and administrative expenses was recorded resulting from a reduction in the fair value remeasurement. The earn-out liability of $2.4 million contingent upon Origin’s 2019 standalone EBITDA was fully paid in April 2020. During the nine months ended September 30, 2020, there was no material change in the fair value of the remaining earn-out liability that is contingent upon Origin’s 2020 standalone EBITDA results. The Origin contingent consideration balance as of September 30, 2020 also included $0.3 million related to the finalization of pre-acquisition sales tax liabilities owed to Origin’s sellers according to the terms of the Origin Unit Purchase Agreement and this balance will be settled together with the Origin 2020 earn-out liability in 2021.

(2)

The fair value of the SCUF contingent consideration was determined based on the estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement. These estimates involved inputs unobservable in the markets and thus represent a level 3 fair value measurement. The measurement of this liability was provisional at the SCUF Acquisition Date (as defined in Note 5) and as of September 30, 2020 and will be finalized in the fourth quarter of 2020. The amount is subject to update upon filing the tax returns for 2019 through 2021. Refer to Note 5 for further details on this acquisition.

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated our borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

3. Fair Value Measurement

U.S. GAAP established a framework for measuring fair value and a fair value hierarchy based on the inputs used to measure fair value. This framework maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the observable inputs be used when available. Fair value is defined 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. It applies to both items recognized and reported at fair value in the combined consolidated financial statements and items disclosed at fair value in the notes to the combined consolidated financial statements.

Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from independent sources. Unobservable inputs reflect assumptions that market participants would use in pricing the asset or liability based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the transparency of inputs as follow:

Level 1—Quoted prices are available in active markets for identical assets or liabilities as of the measurement date. A quoted price for an identical asset or liability in an active market provides the most reliable fair value measurement because it is directly observable to the market.

A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The categorization of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company’s perceived risk of that instrument.

Goodwill, intangible assets, and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur (or tested at least annually for goodwill) such that a non-financial instrument is required to be evaluated for impairment and an impairment is recorded to reduce the non-financial instrument’s carrying value to the fair value as a result of such triggering events, the non-financial assets and liabilities are measured at fair value for the period such triggering events occur. See Note 2 to the combined consolidated financial statements for additional information about how the Company tests various asset classes for impairment.

The following tables summarize the hierarchy of fair value measurements of the Company’s financial assets and liabilities measured on a recurring basis:


	Fair Value Measurements as of December 31, 2018
	Quoted Prices in Active Markets using Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Liabilities:
Deferred cash consideration in connection with a business acquisition—Elgato⁽¹⁾	$	—	$	—	$	10,448	$	10,448
Foreign currency forward contracts⁽²⁾		—		131		—		131

Total liabilities	$	—	$	131	$	10,448	$	10,579

(1)

The fair value of Elgato deferred cash consideration (Refer to note 5 for further details on this acquisition) is determined using a discount rate of 6.6%. This discount rate approximated the Company’s borrowing rate under the revolving line of credit and represents a Level 3 input under the fair value hierarchy.

(2)	The fair value of the forward contracts is based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.


	Fair Value Measurements as of December 31, 2019
	Quoted Prices in Active Markets using Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335

Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

The fair value of the Origin earn-out liability (Refer to note 5 for further details on this acquisition) is estimated using a Monte Carlo Simulation, a simulation-based measurement technique with significant inputs that are not observable in the market and thus represents a level 3 fair value measurement. The significant inputs in the fair value measurement not supported by market activity included the expected future standalone EBITDA growth of Origin during the earn-out period, appropriately discounted by a risk adjustment factor, considering the uncertainties associated with the obligation, its associated volatility, and calculated in accordance with the terms of the Unit Purchase Agreement for this acquisition. Significant changes of these significant inputs, in isolation or in combination, would result in a material change in fair value estimates. The interrelationship between these inputs is not considered significant. The fair value of the Origin earn-out liability is remeasured at every reporting period and the change in fair value is recorded to sales, general and administrative expenses. During the year ended December 31, 2019, the Company recorded $0.6 million credit to sales, general and administrative expenses resulting from a reduction in the fair value remeasurement. The earn-out liability of $2.4 million contingent upon Origin’s 2019 standalone EBITDA was fully paid in April 2020.

(2)

The fair value of the SCUF contingent consideration was determined based on the Company’s estimates of acquired tax benefits owed to SCUF’s sellers according to the merger agreement. These estimates involved inputs unobservable in the markets and thus represents a level 3 fair value measurement. The measurement of this liability was provisional at the SCUF acquisition date and will be finalized within one year of the acquisition date. The amount is subject to update upon filing the Company’s tax returns for 2019 through 2021. Refer to note 5 for further details on this acquisition.

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated the Company’s borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

- 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

Derivative Financial Instruments	9 Months Ended	12 Months Ended
Derivative Financial Instruments	Sep. 30, 2020	Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	4. Derivative Financial Instruments We are exposed to foreign currency risk relating to our ongoing business operations and use derivative financial instruments, principally foreign currency forward contracts, to reduce the risk. The notional principal amount of outstanding foreign exchange forward contracts was $21.5 million and $18.3 million as of September 30, 2020 and December 31, 2019, respectively, none of which have been designated as hedging instruments during the periods presented. The fair value gain (loss) recognized in other (expense) income, net in relation to these derivative instruments was $(1.1) million and $0.9 million for the three months ended September 30, 2020 and 2019, respectively, and $(1.2) million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively. In April 2020, we purchased interest rate cap contracts for $0.5 million with a notional amount of $465 million to manage our exposure to interest rate movements on our variable rate debt when 3-month LIBOR exceeds 1.0%. Refer to Note 8 for further information relating to the interest rates on our debts. The interest rate cap contracts mature on June 30, 2022 and none of which have been designated as hedging instruments. Accordingly, we recognized $55 thousand and $0.5 million net loss for the change in fair value of the interest rate contracts in interest expense for the three and nine months ended September 30, 2020, respectively.	4. Derivative Financial Instruments The Company is exposed to foreign currency risk relating to its ongoing business operations and uses derivative financial instruments, principally foreign currency forward contracts, to reduce the risk. The notional principal amount of outstanding foreign exchange forward contracts was $8.0 million and $18.3 million as of December 31, 2018 and December 31, 2019, respectively, none of which have been designated as hedging instruments during the periods presented. The fair value gain (loss) recognized in other (expense) income, net in relation to these derivative instruments was $0.1 million and $(0.2) million for the years ended December 31, 2018 and 2019, respectively.

Business Combinations

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Business Combinations [Abstract]

Business Combinations

5. Business Combinations

2020 Immaterial Acquisition

On August 31, 2020, we completed an acquisition that is not material to our consolidated financial position, results of operations or cash flows. We believe that the acquisition will enhance the product offering in our gamer and creator peripherals segment. The purchase consideration was $1.0 million and consisted of $0.8 million of cash and $0.2 million of additional cash earn-out based on the achievement of certain net revenue targets of the acquiree from the acquisition date through December 31, 2021. We acquired intangibles of $0.7 million, goodwill of $0.2 million and accounts receivable of $0.1 million. These intangibles will be amortized over a weighted-average estimated useful life of 3.1 years.

SCUF Acquisition

On December 19, 2019 (the “SCUF Acquisition Closing Date”), one of our subsidiaries entered into an Agreement and Plan of Merger with Scuf Holdings, Inc. and subsidiaries (collectively “SCUF”) and acquired 100% of their equity interests (the “SCUF Acquisition”). SCUF, headquartered in Georgia, U.S., specializes in delivering high-performance accessories and customized gaming controllers for consoles and PCs used by top professionals as well as casual gamers. We believe that the SCUF Acquisition will enhance our product and service offerings to both console and PC gamers.

Because the acquired companies met the definition of a business, the SCUF Acquisition has been accounted for as a business combination using the acquisition method of accounting.

Subsequent to the SCUF Acquisition Closing Date, we recorded measurement period adjustments which reduced purchase price, inventories and goodwill by $1.5 million, $0.5 million and $1.0 million, respectively, and accordingly, the SCUF Acquisition total adjusted purchase consideration was $136.3 million. The SCUF Acquisition purchase consideration consisted of (i) $128.2 million cash consideration (including the payment of SCUF’s transaction costs and debt on behalf of SCUF), (ii) $8.0 million equity consideration (an issuance of approximately 2.1 million units of the Parent which was equivalent to approximately 1.1 million shares of Corsair common stock immediately post-Reorganization and prior to the exchange agreements described in Note 1), (iii) $1.6 million estimated contingent cash consideration relating to the our expected utilization of the acquired SCUF tax liabilities or tax benefits relating to pre-acquisition SCUF results over the next 4 years of tax filings, (iv) additional cash earn-out based on the achievement of certain SCUF standalone EBITDA targets for 2019 and the ability of SCUF to renew a licensing agreement with a certain vendor, and these contingent cash earn-outs were determined to have zero value based on the assessment of the outcome of these contingent events on the SCUF Acquisition Closing Date, and (v) net of $1.5 million contingent cash consideration paid on the SCUF Acquisition Closing Date that is expected to be returned by the sellers to us to fund an incentive payment to certain ex-SCUF employees who joined Corsair and are required to remain employed through a contractual service period. The purchase price is subject to further adjustments of certain net working capital items within 12 months of the SCUF Acquisition Closing Date.

Preliminary purchase price allocation

The following table summarizes the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the SCUF Acquisition Closing Date. The allocation of the purchase price was based upon a preliminary valuation, and the estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price allocation that are not yet finalized consist of federal and state income tax and other tax considerations and the valuation of identifiable intangible assets acquired. We will continue to reflect measurement period adjustments to purchase price allocation, if any, in the period in which the adjustments are recognized. Final determination of the fair values may result in adjustments to the values presented in the following table:


	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		12,800
Prepaid and other assets		1,377
Identifiable intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)

Net identifiable net assets acquired	$	63,670
Goodwill		72,642

Net assets acquired	$	136,312

The excess of the purchase price over the preliminary net tangible assets and preliminary intangible assets was recorded as goodwill. Goodwill of $72.6 million, derived from the SCUF Acquisition, is primarily related to the value of the acquired workforce and the ability to design and generate revenue from future technology and customers. The goodwill and identifiable intangible assets are not deductible for tax purposes.

The fair value of the inventory acquired was estimated using the expected selling price of the inventory, then deducting direct selling expenses and a reasonable allocation of profit to a likely buyer. The difference between the fair value of the inventories and the amount recorded by SCUF immediately before the acquisition date is $1.5 million, which is recognized in cost of revenue in the condensed combined consolidated statements of operations upon the sale of the acquired inventory.

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the SCUF Acquisition Closing Date:


	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15

Total identifiable intangible assets	$	71,890

Intangible assets acquired as a result of the SCUF Acquisition are being amortized over their estimated useful lives using the straight-line method of amortization, which reflect the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. Amortization of patent and developed technology are included in cost of revenue and product development expense, respectively. Amortization of customer relationships and trade names are included in sales, general and administrative expense in the condensed combined consolidated statements of operations.

Origin Acquisition

On July 22, 2019 (the “Origin Closing Date”), one of our subsidiaries acquired all the equity interests in Origin PC Corporation (“Origin” and such acquisition, the “Origin Acquisition”). Origin, based in Florida, U.S., specializes in delivering hand-built, personalized PCs. We believe the integration of Origin’s expertise in personalized custom gaming systems and Corsair’s strength in performance PC hardware and the iCUE software ecosystems enhances and expands our product and service offerings to PC gamers.

Origin met the definition of a business, and therefore this acquisition is accounted for as a business combination.

Subsequent to the Origin Closing Date, we recorded measurement period adjustments which increased the purchase price by $0.2 million and reduced other liabilities and accrued expenses by $0.3 million and goodwill by $0.1 million, and accordingly, the Origin Acquisition total adjusted purchase consideration was $13.8 million. The Origin Acquisition purchase consideration consisted of (i) $5.5 million cash consideration (including the payment of Origin’s transaction costs and debt on behalf of Origin), (ii) $2.0 million equity consideration provided by Corsair, which was immediately exchanged for approximately 0.5 million units of the Parent, which was equivalent to approximately 0.2 million shares of Corsair common stock immediately post-Reorganization and prior to the exchange agreements described in Note 1), (iii) $1.4 million deferred cash consideration payable 18 months after closing, not contingent on any future conditions, (iv) $4.6 million of additional cash earn-out based on the achievement of certain Origin standalone EBITDA targets for 2019 and 2020, and (v) $0.3 million estimated contingent cash consideration relating to the finalization of pre-acquisition sales tax liabilities owed to Origin’s sellers according to the terms of the Origin Unit Purchase Agreement.

The final allocation of the Origin Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:


	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,033	)
Other liabilities, noncurrent		(447	)

Net identifiable assets acquired		1,499
Goodwill		12,270

Net assets acquired	$	13,769

The goodwill and identifiable intangible assets are deductible for tax purposes.

The estimated fair value of Origin’s contingent earn-out decreased from $4.6 million at the Origin Closing Date to $4.0 million at December 31, 2019, primarily resulting from Origin’s lower-than-expected EBITDA for the projected 2020 earn-out period. The reduction in fair value of $0.6 million was recorded as a reduction to sales and general administrative expenses in the condensed combined consolidated statement of operations in the fourth quarter of 2019. The earn-out liability of $2.4 million contingent upon Origin’s 2019 standalone EBITDA was fully paid in April 2020. During the nine months ended September 30, 2020, there was no material change in the fair value of the remaining earn-out liability that is contingent upon Origin’s 2020 standalone EBITDA results.

Acquisition-related costs

We incurred acquisition-related costs of approximately $0.3 million and $1.1 million for the three months ended September 30, 2020 and 2019, respectively, and $0.8 million and $1.4 million for the nine months ended September 30, 2020 and 2019, respectively, and these costs are recorded in sales, general and administrative expenses in the condensed combined consolidated statement of operations.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information combines the unaudited condensed combined consolidated results of operations as if the SCUF Acquisition had occurred as of January 1, 2019:


	Three months Ended September 30, 2019			Nine months Ended September 30, 2019
	(in thousands)
Net revenue	$	299,130		$	815,432
Net loss		(3,101	)		(25,040	)

The unaudited pro forma adjustments primarily include amortization for intangible assets acquired, the purchase accounting effect on contract liabilities assumed and inventory acquired, acquisition-related costs and interest expense related to financing arrangements. The unaudited pro forma condensed combined consolidated information is provided for informational purposes only and is not indicative of the results of operations that would have been achieved if the SCUF Acquisition and any borrowings undertaken to finance the SCUF Acquisition had taken place at the beginning of the periods presented.

Pro forma financial information for the Origin Acquisition and the 2020 immaterial acquisition have not been prepared because the effects of these acquisitions were not material to our condensed combined consolidated statements of operations individually or in aggregate for all periods presented.

5. Business Combinations

2019 Acquisitions

SCUF Acquisition

On December 19, 2019 (the “SCUF Closing date”), one of the Company’s subsidiaries entered into an Agreement and Plan of Merger with Scuf Holdings, Inc. and its subsidiaries (collectively “SCUF”) and acquired 100% of their equity interests. SCUF, headquartered in Georgia, U.S., specializes in delivering high-performance accessories and customized gaming controllers for console and PC used by top professional as well as casual gamers. The Company believes that the SCUF Acquisition will enhance the Company’s product and service offering to both console and PC gamers.

At the SCUF Closing date, the total purchase consideration was approximately $137.8 million, consisting of (i) $128.2 million cash consideration (including the payment of SCUF’s transaction costs and debt on behalf of SCUF), (ii) $8.0 million equity consideration (an issuance of 2,110,818 units of the Parent, which following the Reorganization represents 1,055,408 shares of the Company), (iii) $1.6 million estimated contingent cash consideration relating to the Company’s expected utilization of the acquired SCUF tax liabilities or tax benefits relating to pre-acquisition SCUF results over the next 4 years of tax filings, (iv) additional cash earn-out based on the achievement of certain SCUF standalone EBITDA target for 2019 and the ability of SCUF to renew a licensing agreement with a certain vendor, and these contingent cash earn-outs were determined to have zero value based on the assessment of the outcome of these contingent events on the acquisition date. The purchase price is subject to further adjustments of certain net working capital items within 12 months of the SCUF Closing date.

Because the acquired companies met the definition of a business, the acquisition is accounted for as a business combination and the financial results of SCUF have been included in the Company’s combined consolidated financial statements since the date of acquisition. For the year ended December 31, 2019, SCUF contributed $6.4 million of revenue and $1.7 million of net loss.

Preliminary purchase price allocation

The following table summarizes the preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date. The allocation of the purchase price was based upon a preliminary valuation, and the Company’s estimates and assumptions are subject to change within the measurement period. The primary areas of the purchase price allocation that are not yet finalized consist of inventory valuation, federal and state income tax and other tax considerations and the valuation of identifiable intangible assets acquired.


	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		13,307
Prepaid and other assets		1,377
Identifiable Intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)

Net identifiable net assets acquired	$	64,177
Goodwill		73,665

Net assets acquired	$	137,842

The excess of the purchase price over the preliminary net tangible assets and preliminary intangible assets was recorded as goodwill. Goodwill of $73.7 million, derived from the SCUF acquisition, is primarily related to the value of the acquired workforce and the ability to design and generate revenue from future technology and customers. The goodwill and identifiable intangible assets are not deductible for tax purposes.

The fair value of the inventory acquired was estimated using the expected selling price of the inventory, then deducting direct selling expenses and a reasonable allocation of profit to a likely buyer. The difference between the fair value of the inventories and the amount recorded by SCUF immediately before the acquisition date is $2.0 million, which is recognized in cost of revenue in the combined consolidated statements of operations upon the sale of the acquired inventory.

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the acquisition date:


	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15

Total identifiable intangible assets	$	71,890

The fair value of licensed portfolio was estimated using the excess earnings method, which converts projected revenues and costs into cash flows. The unlicensed patent portfolio was valued using royalty rates method. The economic useful life was determined based on the remaining life of the patents. The fair value assigned to developed technology was determined using the multi-period excess-earnings method. The developed technology relates to existing SCUF products. The economic useful life was determined based on the technology cycle related to developed technology of existing SCUF products, as well as the cash flows anticipated over the forecasted periods. Customer relationships represent the fair value of future projected revenue that will be derived from sales of products to existing customers of SCUF. The economic useful life was determined based on historical customer attrition rates and industry benchmarks. Trade name relates to the “SCUF” brand. The economic useful life was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The fair values of trade name were estimated using the relief-from-royalty method, which estimates the cost savings that accrue to the owner of the intangible assets that would otherwise be payable as royalties or license fees on revenues earned through the use of the asset. The Company believes the fair value of the intangible assets recorded above approximates the amounts a market participant would pay for these intangible assets as of the acquisition date.

Origin Acquisition

On July 22, 2019 (the “Origin closing date”), one of the Company’s subsidiaries acquired all the equity interests in Origin PC Corporation (“Origin”). Origin, based in Florida, U.S., specializes in delivering hand-built, personalized PCs. The Company believes the integration of Origin’s expertise in personalized custom gaming systems and Corsair’s strength in performance PC hardware and the iCUE software ecosystems enhances and expands the Company’s product and service offering to PC gamers.

Origin met the definition of a business, and therefore this acquisition is accounted for as a business combination.

At the Origin closing date, the fair value of the total purchase consideration was approximately $13.5 million, consisting of (i) $5.5 million cash consideration (including the payment of Origin’s transaction costs and debt on behalf of Origin), (ii) $2.0 million equity consideration provided by the Company (which was immediately exchanged for 533,333 units of the Parent, which following the Reorganization represents 266,667 shares of the Company), (iii) $1.4 million deferred cash consideration payable 18 months after closing, not contingent on any future conditions, (iv) $4.6 million of additional cash earn-out based on the achievement of certain Origin standalone EBITDA targets for 2019 and 2020.

The preliminary allocation of the purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date, subject to the finalization of the estimate for certain tax liabilities assumed, which Origin filed an extension for as of the date that this report is available to be issued, is as follows:


	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,384	)
Other liabilities, noncurrent		(447	)

Net identifiable assets acquired		1,148
Goodwill		12,353

Net assets acquired	$	13,501

The goodwill and identifiable intangible assets are deductible for tax purposes.

The estimated fair value of Origin’s contingent earn-out decreased from $4.6 million at acquisition date to $4.0 million at December 31, 2019, primarily resulted from Origin’s lower-than-expected EBITDA for the projected 2020 earn-out period. The reduction in fair value of $0.6 million is recorded as a reduction to sales and general administrative expenses in the combined consolidated statement of operations for the year ended December 31, 2019.

2018 Acquisition

Elgato Acquisition

On June 6, 2018, the Company and its subsidiaries entered into an Asset Purchase Agreement (“APA”) with Elgato Systems GmbH and Elgato Systems LLC (collectively “Elgato Sellers”) for the purchase of certain assets and the assumption of certain liabilities related to Elgato’s gaming business. Elgato is the leading provider of hardware and software for content creators, based in Munich, Germany. The addition of Elgato’s portfolio of gamer and creator streaming accessory products and solutions allows the Company to enter into the game streaming and video production market.

Elgato met the definition of business, and therefore this acquisition is accounted for as a business combination.

The Elgato acquisition consummated on July 2, 2018 (the “Elgato closing date”) and the fair value of the total purchase consideration was approximately $46.6 million, consisting of (i) $30.2 million cash consideration, (ii) $6.2 million equity consideration (an issuance of 1,736,521 units of the Parent, which following the Reorganization represents 868,260 shares of the Company), and (iii) $10.2 million deferred cash consideration payable 6 months after closing, not contingent on any future conditions. The deferred cash consideration was paid out in January 2019.

Revenue and gross margin associated with the acquired Elgato business from the date of acquisition through December 31, 2018 was approximately $25.4 million and $11.0 million, respectively. It is not practicable to determine net income included in the Company’s 2018 statement of operations relating to Elgato since the date of acquisition because it has been fully integrated into the Company’s operations, and the operating results of Elgato can therefore not be separately identified.

The final allocation of the Elgato purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:


	(In thousands)
Assets acquired:
Inventories	$	4,283
Prepaid and other assets		548
Identifiable Intangible assets		19,342
Liabilities assumed:
Sales return reserves		(500	)
Other current liabilities and accrued expenses		(540	)

Net identifiable assets acquired		23,133
Goodwill		23,487

Net assets acquired	$	46,620

Measurement period adjustments recorded for Elgato acquisition were not material.

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of acquisition date:


	Fair Value		Useful Life
	(In thousands)		(In years)
Developed technology	$	10,769		5
In-process research and development		748		5
Trade name		7,825		15

Total identifiable intangible assets	$	19,342

The fair value assigned to developed technology and in-process research and development were determined using the multi-period excess-earnings method. The economic useful life was determined based on the expected life of the developed technology and the cash flows anticipated over the forecasted periods. The fair value assigned to trade name was determined using the relief-from-royalty approach, where the owner of the asset realizes a benefit from owning the intangible asset rather than paying a rental or royalty rate for use of the asset. The economic useful life of trade name relates to the “Elgato” brand was determined based on the expected life of the trade name and the cash flows anticipated over the forecasted periods. The acquired identifiable intangible assets are being amortized on a straight-line basis over the estimated useful life, which approximates the pattern in which these assets are utilized. Goodwill of $23.5 million, derived from the Elgato acquisition, is primarily related to synergies arising from the acquisition and the value of the acquired workforce. The goodwill and identifiable intangible assets are deductible for tax purposes.

Acquisition-related costs

The Company incurred acquisition-related costs of approximately $1.5 million and $2.0 million for the years ended December 31, 2018 and 2019, respectively, and these costs are recorded in sales, general and administrative expenses in the combined consolidated statements of operations.

Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information combines the unaudited combined consolidated results of operations as if the acquisition of SCUF had occurred at the beginning of the periods presented:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(unaudited)
	(in thousands)
Net revenue	$	1,013,761		$	1,165,502
Net loss		(19,362	)		(24,598	)

The unaudited pro forma adjustments primarily include amortization for intangible assets acquired, the purchase accounting effect on contract liabilities assumed and inventory acquired, acquisition-related costs and interest expense related to financing arrangements. The unaudited pro forma combined consolidated information is provided for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition and any borrowings undertaken to finance the acquisition had taken place at the beginning of the periods presented.

Pro forma financial information for Origin acquisition is not included in the table above because the effects of the acquisition is not material to the Company’s combined consolidated statements of operations individually or in aggregate for each year.

Goodwill and Intangible Assets

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill by reportable segment:


	Gaming Components and Systems			Gamer and Creator Peripherals			Total
	(In thousands)
Balance as of December 31, 2019	$	145,375		$	167,375		$	312,750
Addition from business acquisition		—			185			185
Measurement period adjustments		(47	)		(1,023	)		(1,070	)
Effect of foreign currency exchange rates		284			(576	)		(292	)

Balance as of September 30, 2020	$	145,612		$	165,961		$	311,573

Intangible assets, net

The following table is a summary of intangible assets, net:


	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)
Developed technology	$	44,883	$	21,606	$	23,277	$	44,243	$	17,536	$	26,707
Trade name		30,128		2,388		27,740		30,253		833		29,420
Customer relationships		218,456		67,397		151,059		218,459		50,916		167,543
Patent		29,989		3,007		26,982		30,721		130		30,591
Non-competition agreements		3,110		2,152		958		3,110		1,774		1,336

Total finite-life intangibles		326,566		96,550		230,016		326,786		71,189		255,597
Indefinite life trade name		35,430		—		35,430		35,430		—		35,430

Total intangible assets	$	361,996	$	96,550	$	265,446	$	362,216	$	71,189	$	291,027

For the three months and nine months ended September 30, 2020, the gross amount for intangible assets increased $0.7 million as a result of an immaterial acquisition. Refer to Note 5 for additional information on our business acquisitions.

The gross carrying amounts of intangible assets are removed when fully amortized.

The estimated future amortization expense of intangible assets as of September 30, 2020 is as follows:


	Amounts
	(in thousands)
2020 (remaining three months)	$	8,484
2021		33,938
2022		33,761
2023		32,359
2024		30,913
Thereafter		90,561

Total	$	230,016

6. Goodwill and Intangible Assets

Goodwill represents the difference between the purchase price and the estimated fair value of the identifiable assets acquired and liabilities assumed. Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment. The Company has four reporting units: Gaming Peripherals, Gaming Components, Gaming Memory and Gaming Systems. The Gamer and Creator Peripherals segment represents the Gaming Peripherals reporting unit, and the Gaming Components and Systems segment represents the Gaming Components, Gaming Memory and Gaming Systems reporting units.

The following table summarizes the activity in the Company’s goodwill by reportable segment (in thousands):


	Gaming Components and Systems			Gamer and Creator Peripherals			Total
December 31, 2017⁽¹⁾	$	133,045		$	70,077		$	203,122
Addition from business acquisition		57			23,574			23,631
Effect of foreign currency exchange rates		(39	)		(35	)		(74	)

December 31, 2018	$	133,063		$	93,616		$	226,679
Addition from business acquisitions		12,317			73,778			86,095
Effect of foreign currency exchange rates		(5	)		(19	)		(24	)

December 31, 2019	$	145,375		$	167,375		$	312,750

(1)	The balances as of December 31, 2017 have been corrected for immaterial misstatements. Refer to Note 2 “Summary of Significant Accounting Policies—Corrections of Immaterial Errors” for more information.

Intangible assets, net consist of the following:


	December 31, 2018
	Weighted Average Useful Life		Weighted Average Remaining Amortization Period in Years		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
					(In thousands)
Intangible assets:
Developed technology		3.3 years		3.3	$	25,153	$	10,578	$	14,575
Trade name		15 years		14.5		7,825		261		7,564
Customer relationships		10 years		8.7		216,869		29,153		187,716
Non-competition agreements		4.4 years		3.4		3,110		1,074		2,036

Total finite-life intangibles				8.4		252,957		41,066		211,891
In-process research and development		n/a		n/a		491		—		491
Indefinite life trade name		Indefinite life		—		35,430		—		35,430

Total intangible assets					$	288,878	$	41,066	$	247,812

For the year ended December 31, 2018, the gross amount of intangible assets increased $19.3 million as a result of the Elgato acquisition.


	December 31, 2019
	Weighted Average Useful Life		Weighted Average Remaining Amortization Period in Years		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
					(In thousands)
Developed technology		4.5 years		3.4	$	44,243	$	17,536	$	26,707
Trade name		15.0 years		14.6		30,253		833		29,420
Customer relationships		10.0 years		7.6		218,459		50,916		167,543
Patent		7.9 years		7.9		30,721		130		30,591
Non-competition agreements		4.4 years		2.6		3,110		1,774		1,336

Total finite-life intangibles				7.7		326,786		71,189		255,597
Indefinite life trade name		Indefinite life		—		35,430		—		35,430

Total intangible assets					$	362,216	$	71,189	$	291,027

For the year ended December 31, 2019, the gross amount for intangible assets increased $1.0 million and $72.2 million as a result of the Origin and SCUF acquisitions, respectively.

The Company recognized amortization expense of intangible assets in the accompanying combined consolidated statements of operations as follows:


	Year Ended December 31, 2018		Year Ended December 31, 2019
	Year Ended December 31, 2018		Year Ended December 31, 2019
	(In thousands)
Cost of revenue	$	—	$	130
Product development		8,147		6,958
Sales, general and administrative		22,746		23,035

Amortization of intangible assets	$	30,893	$	30,123

The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows:


	Amounts
	(In thousands)
2020	$	33,832
2021		33,832
2022		33,655
2023		32,324
2024		31,021
Thereafter		90,933

Total	$	255,597

Balance Sheet Components

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Balance Sheet Components

7. Balance Sheet Components

Cash and Restricted Cash


	September 30, 2020		December 31, 2019
	(In thousands)
Cash	$	116,185	$	48,165
Restricted cash—short term		3,726		3,552
Restricted cash—noncurrent		230		230

Total cash and restricted cash	$	120,141	$	51,947

Accounts Receivable, net:


	September 30, 2020			December 31, 2019
	(In thousands)
Accounts receivable	$	260,476		$	202,546
Allowance for doubtful accounts		(934	)		(212	)

Accounts receivable, net	$	259,542		$	202,334

As of September 30, 2020, and December 31, 2019, two customers each represented 10% or more of our consolidated accounts receivable, net.

Inventories


	September 30, 2020		December 31, 2019
	(In thousands)
Raw materials	$	29,937	$	25,547
Work in progress		17,842		2,690
Finished goods		162,372		122,826

Inventories	$	210,151	$	151,063

Property and Equipment, Net


	September 30, 2020			December 31, 2019
	(In thousands)
Manufacturing equipment	$	18,939		$	15,291
Computer equipment, software and office equipment		9,489			6,958
Furniture and fixtures		3,342			2,602
Leasehold improvements		3,951			3,544

Total property and equipment	$	35,721		$	28,395
Less: Accumulated depreciation and amortization		(20,317	)		(13,030	)

Property and equipment, net	$	15,404		$	15,365

Other Liabilities and Accrued Expenses


	September 30, 2020		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs	$	40,318	$	36,582
Accrued reserves for sales return		29,805		24,610
Accrued payroll and related expense		22,474		10,638
Income tax payable		20,929		8,524
Operating lease liabilities, current		8,883		—
Other		47,177		35,187

Other liabilities and accrued expenses	$	169,586	$	115,541

Contract Balances

Contract assets represent amounts that have been recognized as revenue but for which we did not have the unconditional right to invoice the customer yet. There were no unbilled accounts receivable recorded within our accounts receivable, net on the condensed combined consolidated balance sheets as of September 30, 2020 and December 31, 2019.

Contract liabilities consist of deferred revenue and unearned revenue.

Deferred revenue consists primarily of amounts that have been shipped and invoiced, but the control of the inventory has not been passed to the customer yet. The current portion of deferred revenue balances are recognized over the next 12 months. As of September 30, 2020, the current and long-term portion of our deferred revenue was $1.1 million and $0.4 million, respectively. As of December 31, 2019, the current and long-term portion of our deferred revenue was $3.3 million and $0.4 million, respectively.

Unearned revenue consists of payments received from customers in advance of product shipment for our webstore orders. These orders are generally shipped within two weeks from order date. The unearned revenue balance as of September 30, 2020 and December 31, 2019 was $4.1 million and $1.3 million, respectively.

Unearned revenue and the current portion of deferred revenue are included in other liabilities and accrued expenses, and the long-term portion of deferred revenue is included in other liabilities on the condensed combined consolidated balance sheets.

7. Balance Sheet Components

Accounts Receivable, net:


	December 31, 2018			December 31, 2019
	(In thousands)
Accounts receivable	$	148,917		$	202,546
Allowance for doubtful accounts		(349	)		(212	)
Rebates⁽¹⁾		(17,119	)		—
Sales return reserves⁽¹⁾		(9,407	)		—

Accounts receivable, net	$	122,042		$	202,334

(1)

As of December 31, 2018, under Topic 605, reserves for certain customer incentive programs and the reserves for sales returns, on a net basis, were included within accounts receivable, net. As of December 31, 2019, under Topic 606, such balances are presented on a gross basis in other liabilities and accrued expenses in the combined consolidated balance sheet. Refer to Note 2, Summary of Significant Accounting policies—Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606, for detailed information on the impact on the balance sheet reclassifications from the adoption of Topic 606.

Inventories


	December 31, 2018		December 31, 2019
	(In thousands)
Raw materials	$	22,514	$	25,547
Work in progress		5,366		2,690
Finished goods		121,142		122,826

Inventories	$	149,022	$	151,063

Property and Equipment, Net


	December 31, 2018			December 31, 2019
	(In thousands)
Manufacturing equipment	$	11,917		$	15,291
Computer equipment, software and office equipment		4,417			6,958
Furniture and fixtures		875			2,602
Leasehold improvements		1,676			3,544

Total property and equipment	$	18,885		$	28,395
Less: Accumulated depreciation and amortization		(6,412	)		(13,030	)

Property and equipment, net	$	12,473		$	15,365

Other Liabilities and Accrued Expenses


	December 31, 2018		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs⁽¹⁾	$	—	$	36,582
Accrued reserves for sales return⁽¹⁾		—		24,610
Accrued payroll and related expense		8,353		10,638
Deferred and unearned revenue		—		4,222
Income tax payable		3,573		8,524
Sales and use taxes and value-added tax liabilities		995		8,591
Lease liabilities, current		—		—
Warranty reserves		2,581		3,991
Deferred and contingent purchase consideration⁽²⁾⁽³⁾		10,448		2,397
Other		9,680		15,986

Other liabilities and accrued expenses	$	35,630	$	115,541

(1)

As of December 31, 2018, under Topic 605, reserves for certain customer incentive programs and the reserves for sales returns, on a net basis, were included within accounts receivable, net. As of December 31, 2019, under Topic 606, such balances are presented on a gross basis in other liabilities and accrued expenses in the combined consolidated balance sheet. Refer to Note 2, Summary of Significant Accounting policies—Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606, for detailed information on the impact on the balance sheet reclassifications from the adoption of Topic 606.

(2)	As of December 31, 2018, the deferred cash consideration of €9.0 million related to the Elgato acquisition, which was not contingent on any future conditions, was paid on January 3, 2019. Refer to note 5 for further details.

(3)	As of December 31, 2019, the estimated obligation for the Origin earn-out payment related to Origin’s 2019 standalone financial target of $2.4 million was fully paid in the second quarter of 2020.

Warranty Reserve

Changes in warranty obligation, which are included as a component of accrued liabilities in the combined consolidated balance sheets, are as follows:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands)
Warranty obligation at beginning of period⁽¹⁾	$	2,570		$	2,581
Balance assumed from business combinations		167			595
Warranty provision related to products shipped		2,410			5,996
Deductions for warranty claims processed		(2,566	)		(5,181	)

Warranty obligation at end of period	$	2,581		$	3,991

(1)	The beginning balance for the year ended December 31, 2018 has been corrected for immaterial misstatements. Refer to Note 2 “Summary of Significant Accounting Policies—Corrections of Immaterial Errors” for more information.

Debt

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

8. Debt

First Lien Credit and Guaranty Agreement

On August 28, 2017, we entered into a syndicated First Lien Credit and Guaranty Agreement (“First Lien”) with various financial institutions. The First Lien originally provided a $235 million term loan (“First Lien Term Loan”) for a business acquisition and to repay existing indebtedness of the acquired company and a $50 million revolving line-of-credit (“Revolver”). The First Lien and the Revolver matures on August 28, 2024 and August 28, 2022, respectively. Subsequently, we entered into several amendments to the First Lien and the principal amount of the First Lien Term Loan was increased by $10 million in 2017 and increased by $115 million in each of 2018 and 2019, primarily to fund various business acquisitions and operation needs.

The First Lien Term Loan initially carried interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus a margin of 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. The Revolver initially bore interest at a rate equal to, at our election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. As a result of the First Lien amendment in October 2018, the First Lien term loan and Revolver margin were both changed to range from 2.75% to 3.25% for base rate loans and to range from 3.75% to 4.25% for Eurodollar loans, based on our net leverage ratio.

Additionally, new contingent repayment provisions were added in the First Lien amendment in October 2018. Five business days after the initial public offering (“IPO”) of our stock, we were required to prepay all amounts (principal and interest) outstanding under the Second Lien term loan. Concurrently, we also were required to prepay the First Lien Term Loan in an amount equal to the IPO proceeds, less the amount used to repay the Second Lien Term Loan, multiplied by 50%. Accordingly, in September 2020, with the IPO proceeds, we repaid the mandatory minimum amount of $55.8 million and made an additional $30.8 million voluntary repayment.

We may prepay the First Lien Term Loan and the Revolver at any time without premium or penalty other than customary LIBOR breakage. According to the Consolidated Excess Cash Flow clause as defined in the First Lien, in April 2020, we prepaid $2.6 million of the First Lien Term Loan.

The amendments to the First Lien were accounted for as loan modifications.

The following table summarizes the carrying value of the First Lien Term Loan:


	September 30, 2020			December 31, 2019
	(In thousands)
Principal amount outstanding	$	376,938		$	467,332
Less: Debt discount, net of amortization		(2,623	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,225	)		(5,825	)

Carrying amount	$	370,090		$	457,657

Our obligation under the First Lien is secured by substantially all of our personal property assets and those of our United States-organized subsidiaries, including intellectual property. The First Lien Term Loan includes customary restrictive covenants that impose operating and financial restrictions on Corsair, including restrictions on our ability to take actions that could be in our best interests. These restrictive covenants include operating covenants restricting, among other things, our ability to incur additional indebtedness, effect certain acquisitions or make other fundamental changes. As of September 30, 2020, we were in compliance with all covenants.

In addition, the First Lien contains events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, material judgments and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, interest on the obligations may accrue at an increased rate in the case of a non-payment or bankruptcy and insolvency and the lenders may accelerate our obligations under the First Lien Term Loan, except that acceleration will be automatic in the case of bankruptcy and insolvency events of default.

Second Lien Credit and Guaranty Agreement

On August 28, 2017, we also entered into a syndicated Second Lien Credit and Guaranty Agreement (“Second Lien”) with various financial institutions. The Second Lien initially provided a $65 million term loan (“Second Lien Term Loan”), with a maturity date of August 28, 2025, for a business acquisition and for general corporate operations purposes. The Second Lien Term Loan initially carried interest at a base rate equal to that of the First Lien loan, plus a margin of 7.25% for base rate loans and 8.25% for Eurodollar loans. In October 2017, we entered into an amendment to the Second Lien and the principal amount of the Second Lien Term Loan was reduced to $50 million and the applicable interest rate margins for both the base rate loans and Eurodollar loans were increased by 0.25%. The amendment to the Second Lien was accounted for as a loan modification.

We had the ability to prepay the Second Lien Term Loan any time after the first and second anniversary without premium or penalty. In the second and third quarter of 2020, with excess cash on hand, we repaid an aggregate of $50 million of the outstanding principal balance of the Second Lien Term Loan and following these repayments, the Second Lien Term Loan was fully repaid and all obligations and covenants thereunder were terminated.

The following table summarizes the carrying value of the Second Lien Term Loan:


	September 30, 2020		December 31, 2019
	(In thousands)
Principal amount outstanding	$	—	$	50,000
Less: Debt discount, net of amortization		—		(471	)
Less: Debt issuance costs, net of amortization		—		(1,374	)

Carrying amount	$	—	$	48,155

The following table summarizes the interest expense recognized for the First Lien and Second Lien:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	6,408	$	7,582	$	22,914	$	22,662
Contractual interest expense for Revolver		—		789		16		2,099
Amortization of debt discount		219		216		672		700
Amortization of debt issuance costs		489		514		1,401		1,583
Loss on debt extinguishment		2,864		—		3,256		—

Total interest expense recognized	$	9,980	$	9,101	$	28,259	$	27,044

The estimated future principal payments under our total long-term debt as of September 30, 2020 are as follows:


	Amounts
	(In thousands)
2020 (remaining three months)	$	—
2021		—
2022		—
2023		—
2024		376,938
Thereafter		—

Total debt	$	376,938
Less: Discount and debt issuance costs		(6,848	)

Total Debt, net of discount and debt issuance costs	$	370,090

Presented on the condensed combined consolidated balance sheet under:
Current portion of debt, net	$	—

Debt, net	$	370,090

8. Debt

First Lien Credit and Guaranty Agreement

On August 28, 2017, the Company entered into a syndicated First Lien Credit and Guaranty Agreement (“First Lien”) with various financial institutions. The First Lien originally provided a $235 million term loan (“First Lien Term Loan”) for a business acquisition and to repay existing indebtedness of the acquired company and a $50 million revolving line-of-credit (“Revolver”). The First Lien and the Revolver matures on August 28, 2024 and August 28, 2022, respectively.

Subsequently, the Company entered into several amendments to the First Lien and the principal amount of the First Lien Term Loan was increased by $10 million in 2017 and increased by $115 million in each of 2018 and 2019, primarily to fund various business acquisitions and operation needs. The First Lien Term Loan initially carried interest at a rate equal to, at the Company’s election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus a margin of 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. The Revolver initially bore interest at a rate equal to, at the Company’s election, either the (a) greatest of (i) the prime rate, (ii) sum of the Federal Funds Effective Rate plus 0.5%, (iii) one month LIBOR plus 1.0% and (iv) 2%, plus 3.5%, or (b) the greater of (i) LIBOR and (ii) 1.0%, plus a margin of 4.5%. As a result of the First Lien amendment in October 2018, the First Lien term loan and Revolver margin were both changed to range from 2.75% to 3.25% for base rate loans and to range from 3.75% to 4.25% for Eurodollar loans, based on the Company’s net leverage ratio.

Additionally, new contingent repayment provisions were added in the First Lien amendment in October 2018. Five business days after a qualified initial public offering (“IPO”) of the Company’s stock, the Company will be required to prepay all amounts (principal and interest) outstanding under the Second Lien term loan. Concurrently, the Company will also be required to prepay the First Lien Term Loan in an amount equal to the IPO proceeds, less the amount used to repay the Second Lien Term Loan, multiplied by 50%.

The amendments to the First Lien were accounted for as loan modifications.

The Company may prepay the First Lien Term Loan and the Revolver at any time without premium or penalty other than customary LIBOR breakage.

The Company incurred debt issuance costs in connection with the First Lien Term Loan and its related amendments, in aggregate, of $1.0 million and $2.3 million in 2018 and 2019, respectively, and these costs are amortized over the term of the First Lien Term loan using an effective interest rate method.

The following table summarizes the carrying value of the First Lien Term Loan:


	December 31, 2018			December 31, 2019

	(In thousands)
Principal amount outstanding	$	356,300		$	467,332
Less: Debt discount, net of amortization		(3,538	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,804	)		(5,825	)

Carrying amount	$	347,958		$	457,657

Effective Interest rate		7.4	%		6.8	%

The Company also incurred debt issuance costs in connection with the Revolver of $2.0 million in 2017 and additional $150 thousand each in 2018 and 2019. These costs are recorded in prepaid expenses and other current assets and other assets in the combined consolidated balance sheets and amortized on a straight-line basis over the term of the Revolver. The debt issuance costs for Revolver, net of amortization was $1.4 million and $1.1 million as of December 31, 2018 and December 31, 2019, respectively.

The following table summarizes the draws and repayments of the Revolver:


	Year Ended December 31, 2018			Year Ended December 31, 2019

	(In thousands)
Beginning balance	$	—		$	27,000
Draws		364,300			475,300
Repayments		(337,300	)		(502,300	)

Ending balance	$	27,000		$	—

The Company recorded interest expense of $2.0 million and $3.3 million, including amortization of issuance costs of $0.5 million and $0.5 million, for the years ended December 31, 2018 and 2019, respectively, under the Revolver.

Second Lien Credit and Guaranty Agreement

On August 28, 2017, the Company also entered into a syndicated Second Lien Credit and Guaranty Agreement (“Second Lien”) with various financial institutions. The Second Lien initially provided a $65 million term loan (“Second Lien Term Loan”), with a maturity date of August 28, 2025, for a business acquisition and for general corporate operations purposes. The Second Lien Term Loan initially carried interest at a base rate equal to that of the First Lien loan, plus a margin of 7.25% for base rate loans and 8.25% for Eurodollar loans.

In October 2017, the Company entered into an amendment to the Second Lien and the principal amount of the Second Lien Term Loan was reduced by $15 million and the applicable interest rate margins for both the base rate loans and Eurodollar loans were increased by 0.25%. The amendment to the Second Lien was accounted for as a loan modification.

The Company may prepay the Second Lien Term Loan any time after the first and second anniversary without premium or penalty.

The Company incurred debt issuance costs in connection with the Second Lien Term Loan and its related amendment of $2.2 million in 2017 and these costs are amortized over the term of the Second Lien Term loan using an effective interest rate method.

The following table summarizes the carrying value of the Second Lien Term Loan:


	December 31, 2018			December 31, 2019

	(In thousands)
Principal amount outstanding	$	50,000		$	50,000
Less: Debt discount, net of amortization		(572	)		(471	)
Less: Debt issuance costs, net of amortization		(1,669	)		(1,374	)

Carrying amount	$	47,759		$	48,155

Effective Interest rate		11.9	%		11.4	%

The Company recorded interest expense of $24.4 million and $26.3 million, including amortization of debt issuance costs and debt discounts of $2.5 million and $2.1 million for the years ended December 31, 2018 and 2019 under First Lien Term Loan. The Company recorded interest expense of $5.7 million and $5.9 million, including amortization of debt issuance costs and debt discounts of $0.3 million and $0.4 million for the years ended December 31, 2018 and 2019 under the Second Lien Term Loan.

The Company’s obligations under the First Lien and Second Lien are secured by substantially all of its personal property assets and those of its subsidiaries, including their intellectual property. Also pledged as security are all shares held in the majority-owned subsidiaries. The First Lien and Second Lien Term Loans include customary restrictive covenants that impose operating and financial restrictions on the Company, including restrictions on its ability to take actions that could be in the Company’s best interests. These restrictive covenants include operating covenants restricting, among other things, the Company’s ability to incur additional indebtedness, effect certain acquisitions or make other fundamental changes. The Company was in compliance with all of the covenants as of December 31, 2019.

In addition, the First Lien and Second Lien contain events of default that include, among others, non-payment of principal, interest or fees, breach of covenants, inaccuracy of representations and warranties, cross defaults to certain other indebtedness, bankruptcy and insolvency events, material judgments and events constituting a change of control. Upon the occurrence and during the continuance of an event of default, interest on the obligations may accrue at an increased rate in the case of a non-payment or bankruptcy and insolvency and the lenders may accelerate the Company’s obligations under the First Lien Term Loan, except that acceleration will be automatic in the case of bankruptcy and insolvency events of default.

The following table summarizes the interest expense recognized for the First Lien and Second Lien:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	27,395	$	29,757
Contractual interest expense for Revolver		1,500		2,758
Amortization of debt discount		1,046		946
Amortization of debt issuance costs		2,258		2,043
Loss on partial debt extinguishment		—		—

Total interest expense recognized	$	32,199	$	35,504

The estimated future principal payments under the Company’s total long-term debt as of December 31, 2019 are as follows:


	Amounts
	(In thousands)

2020	$	4,771
2021		4,771
2022		4,771
2023		4,771
2024		448,248
Thereafter		50,000

Total debt	$	517,332

Less: Discount and debt issuance costs		(11,520	)
Less: Current portion of debt, net		(2,364	)

Debt, net	$	503,448

Commitments and Contingencies

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

Product Warranties

Changes in our warranty obligations were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(in thousands)
Beginning of the period	$	5,005		$	2,776		$	3,991		$	2,581
Balance assumed from business combinations		—			223			—			223
Warranty provision related to products shipped		1,518			1,395			4,928			4,231
Deductions for warranty claims processed		(1,400	)		(1,338	)		(3,796	)		(3,979	)

End of period	$	5,123		$	3,056		$	5,123		$	3,056

Unconditional Purchase Obligations

Our total non-cancelable purchase commitments outstanding was $103.1 million and $44.1 million as of September 30, 2020 and December 31, 2019, respectively.

Letters of Credit

The letters of credit outstanding, in aggregate, was $2.0 million and $1.5 million as of September 30, 2020 and December 31, 2019, respectively. No amounts have been drawn upon the letters of credit for all periods presented.

Indemnification

In the ordinary course of business, we may provide indemnifications of varying scope and terms with respect to certain transactions. We have entered into indemnification agreements with directors and certain officers and employees that will require Corsair, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon Corsair to provide indemnification under such agreements, and thus, there are no claims that we are aware of that could have a material effect on our condensed combined consolidated balance sheets, statements of operations, or statements of cash flows. We currently have directors’ and officers’ insurance.

9. Commitments and Contingencies

Operating Leases

The Company has entered into operating leases for certain office, corporate housing and warehouse spaces, some of which contain renewal options. Rent expense is recognized on a straight-line basis over the terms of the Company’s leases. Estimated future lease payments under all noncancelable operating leases with terms in excess of one year as of December 31, 2019 are as follows:


	Amounts
	(In thousands)

2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—

Total	$	18,621

Rent expense was $6.2 million and $7.3 million for the years ended December 31, 2018 and 2019, respectively.

Purchase Obligations

As of December 31, 2019, the Company had outstanding non-cancellable long-term purchase commitments of $1.9 million.

Letters of Credit

As of December 31, 2018 and 2019, the Company issued two letters of credit totaling $1.0 million and $1.5 million, respectively, to two suppliers in exchange for increased credit limits. No amounts have been drawn upon the letters of credit.

Indemnification

In the ordinary course of business, the Company may provide indemnifications of varying scope and terms with respect to certain transactions. The Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus, there are no claims that the Company is aware of that could have a material effect on the Company’s combined consolidated balance sheets, statements of operations, or statements of cash flows. The Company currently has directors’ and officers’ insurance.

Stockholders' Equity	9 Months Ended	12 Months Ended
Stockholders' Equity	Sep. 30, 2020	Dec. 31, 2019
Equity [Abstract]
Stockholders' Equity	10. Stockholders’ Equity On December 19, 2019, the Parent issued 14,092,098 units, which following the Reorganization and prior to the exchange agreements described in Note 1, represents 7,046,049 equivalent shares of our common stock, as a result of a capital call, for a total capital contribution of $53.5 million to fund the SCUF Acquisition. For the year ended 2019, the Parent issued an aggregate of 2,644,151 units, which following the Reorganization and prior to the exchange agreements described in Note 1, represents 1,322,075 equivalent shares of our common stock, as part of the consideration for acquisitions. The units had an estimated fair value of $10.0 million, in aggregate, at the time of issuance. Refer to Note 5 for additional information regarding our acquisitions. On September 15, 2020, we completed a Reorganization through a series of steps as discussed in Note 1. In connection with the Reorganization, we filed a certificate of amendment to our Amended and Restated Certificate of Incorporation which authorized 100,000,000 shares of our common stock for issuance, with a par value of $0.0001 per share and effected a 1-for-28,693.596843964 stock split resulting in there being 84,405,366 shares of Corsair’s common stock outstanding as of September 15, 2020. On September 25, 2020, in connection with the closing of the IPO, we filed an Amended and Restated Certificate of Incorporation which increased the authorized shares of common stock for issuance to 300,000,000 and authorized 5,000,000 shares of preferred stock, with a par value of $0.0001 per share, for issuance. There were no shares of preferred stock outstanding as of September 30, 2020.	10. Stockholders’ Equity On March 29, 2018, the Parent declared to its unitholders a special one-time cash dividend of $85.0 million, in the aggregate, based on the number of units outstanding on the declaration date. The dividend was distributed out of the Company’s assets on the same day. On December 19, 2019, the Parent issued 14,092,098 units, which following the Reorganization represents 7,046,049 shares of the Company’s common stock, as a result of a capital call, for a total capital contribution of $53.5 million to fund the acquisition of SCUF. For the years ended December 31, 2018 and 2019, the Parent issued 1,736,521 units and 2,644,151 units, which following the Reorganization represents 868,260 and 1,322,075 shares of the Company’s common stock, respectively, as part of the consideration for acquisitions. The units had an estimated fair value of $6.2 million and $10.0 million at the time of issuance, respectively. Refer to Note 5 for additional information regarding the Company’s acquisitions. As discussed in Note 1, on September 15, 2020, the Company completed a Reorganization through a series of steps. In connection with the Reorganization, the Company filed an Amended and Restated Certificate of Incorporation which authorizes 100,000,000 shares of common stock of the Company for issuance, with a par value of $0.0001 per share.

Equity Incentive Plans and Stock-Based Compensation

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Equity Incentive Plans and Stock-Based Compensation

11. Equity Incentive Plans and Stock-Based Compensation

Equity Incentive Plans

In 2017, the Parent adopted the 2017 Equity Incentive Program (the “2017 Plan”). The 2017 Plan was administered by the General Partner, EagleTree-Carbide (GP), LLC, who determines the types of awards to be granted, the number of units subject to the awards, the exercise price and the vesting requirements. Only our employees and directors participated in this program. In connection with the Reorganization discussed in Note 1, we assumed the 2017 Plan and all the outstanding options to acquire units of the Parent under the 2017 Plan were converted into options to purchase our common stock on a pro rata basis with an adjusted exercise price to reflect the assumption. No other modifications were made to the options and no further options will be granted under the 2017 Plan following the Reorganization.

In September 2020, we adopted the 2020 Incentive Award Plan (the “2020 Plan”), which became effective on September 22, 2020, the day prior to the first public trading date of our common stock. The 2020 Plan is the successor and continuation to the 2017 Plan. The 2020 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, performance awards and other forms of awards. Incentive stock options may be granted only to employees. All other awards may be granted to eligible employees, non-employee directors and consultants, at the discretion of our board of directors (the “Board”). Under the 2020 Plan, 5,125,000 shares of our common stock are initially reserved for issuance. The 2020 Plan reserve also includes any shares under the 2017 Plan and the 2020 Plan that may become available for issuance if the award terminates without the delivery of shares or if shares are tendered to satisfy the exercise price or tax withholding obligation with respect of the award. The 2020 Plan reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 4% of the shares outstanding on the last day of the immediately preceding fiscal year or (b) a smaller number of shares as determined by the Board; provided, however, no more than 75,000,000 shares of our common stock may be issued upon the exercise of incentive stock options.

All stock options under the 2017 Plan and the 2020 Plan are issued at exercise prices not less than the fair market value on the date of grant. RSUs have no exercise price. Both stock options and RSUs vest over a period of time as determined by the Board, generally four to five years, and expire ten years from date of grant. As of September 30, 2020, 4,941,580 shares were available for grant under the 2020 Plan.

Employee Stock Purchase Plan

In September 2020, we adopted the 2020 Employee Stock Purchase Plan (the “ESPP”), which became effective September 22, 2020, the day prior to the first public trading date of our common stock. The ESPP is intended to qualify under Section 423 of the U.S. Internal Revenue Service Code. The ESPP initially reserved 1,025,000 shares of our common stock for issuance. The ESPP reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 1% of the shares outstanding on the last day of the immediately preceding fiscal year or (b) a smaller number of shares as determined by the Board; provided, however, no more than 20,000,000 shares of our common stock may be issued under the ESPP.

The ESPP is designed to allow eligible employees to purchase shares of our common stock, at semi-annual intervals, with their accumulated payroll deductions. Under the ESPP, participants are offered the option to purchase shares of our common stock at a discount during a series of successive offering periods, the duration and timing of which will be determined by the ESPP administrator. The offering period may not be longer than 27 months in length. The option purchase price will be the lower of 85% of the closing trading price per share of our common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each offering period. Employees may participate through payroll deductions of 1% to 15% of their earnings. No participant may purchase more than 30,000 shares in each offering period and may not subscribe for more than $25,000 in fair market value of shares of our common stock (determined at the time the option is granted) during any calendar year. The first offering period will begin on January 1, 2021.

Stock Options Activities

The following table summarizes the stock option activities and related information for the nine months ended September 30, 2020:


	Outstanding Stock Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance as of December 31, 2019		8,790,000		$	4.86		8.1	$	24,949
Granted		1,875,161			8.59
Exercised		(306,000	)		4.05
Forfeited/cancelled		(164,000	)		6.30

Balance as of September 30, 2020		10,195,161		$	5.55		7.9	$	67,698

Vested and exercisable as of September 30, 2020		4,045,117		$	4.31		7.2	$	31,534

The weighted average grant-date fair value of the stock options granted for the nine months ended September 30, 2020 was $8.59 per share. As of September 30, 2020, the unrecognized stock-based compensation costs related to outstanding unvested stock options was $15.4 million, which is expected to be recognized over a weighted average period of 3.3 years.

RSUs Activities

The following table summarizes the RSUs activities and related information for the nine months ended September 30, 2020:


	Unvested RSUs			Weighted- Average Grant Date Fair Value Per Share
Balance as of December 31, 2019		—			—
Granted		17,647		$	17.00
Vested		(8,823	)		17.00

Balance as of September 30, 2020		8,824		$	17.00

As of September 30, 2020, the unrecognized stock-based compensation costs related to outstanding unvested RSUs was $0.1 million, which is expected to be recognized over a weighted average period of 1.0 year.

Stock-based Compensation

The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Cost of revenue	$	60	$	52	$	192	$	145
Sales, general and administrative		1,414		672		3,634		2,251
Product development		157		143		460		417

Total stock-based compensation expense	$	1,631	$	867	$	4,286	$	2,813

Valuation Assumptions

We estimate the fair value of the stock options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Weighted average grant date fair value of common stock (per share)	$	16.38		$	7.55		$	8.60		$	7.46
Expected term (years)		6.09			6.50			6.37			6.48
Expected volatility		41.7%-44.0	%		34.5%-34.9	%		35.8%-44.0	%		34.3%-34.9	%
Dividend yield		—			—			—			—
Range of risk-free interest rate		0.3%-0.4	%		1.4-1.9	%		0.3%-1.8	%		1.4%-2.6	%

11. Equity Incentive Plans and Stock-Based Compensation

Equity Option Plans

In 2017, the Parent adopted an Equity Incentive Program (the “Program”). The Program is administered by the general partner, EagleTree-Carbide (GP), LLC, unless and until the general partner delegates administration to a committee appointed by the general partner, the board of the limited partnership or the CEO, which determines the types of awards to be granted, the number of units subject to the awards, the exercise price and the vesting requirements. The Company’s employees participated in this program in the years presented. Under the Program, 16,666,667 units of the Parent’s common units have been initially reserved for the issuance of unit awards. No options will be exercisable more than 10 years after the date of grant. An exercise price per unit may not be less than 100% of the fair market value per unit on the date of grant. Options generally vest 20% annually over five years from the vesting commencement date.

On August 12, 2019, the Company’s parent further reserved 1,500,000 common units of the Parent for the issuance of unit awards to the Company’s employees under the program. Subsequently on January 3, 2020 and April 17, 2020, the Parent further reserved 1,500,000 and 650,000 common units, respectively, for the issuance of unit awards to the Company’s employees under the program.

As of December 31, 2018 and 2019, 1,150,167 and 512,167 units, respectively, were available for grant under the Program.

Unit Award Repricing

On July 18, 2018, the Parent approved a modification to all unexercised unit awards outstanding as of July 18, 2018 that were granted prior to the dividend distribution that occurred on March 29, 2018. The exercise price of the modified unit awards was reduced by $0.56 per unit. The reduction in the exercise price is equal to the one-time cash dividend, distributed on March 29, 2018, on a per unit basis. The Parent modified the exercise price of 14,570,000 unit awards, which following the Reorganization represents 7,285,000 stock options of the Company, granted as part of the 2017 Equity Incentive Program and held by 84 employees.

This modification resulted in incremental stock-based compensation expense of approximately $4.8 million, which is being recognized by the Company over the then remaining requisite service period of 4.1 years from the modification date.

Separation Agreement with an Executive

On April 30, 2019, the Company entered into a Separation agreement with an executive. The terms of the Separation agreement included cash compensation of approximately $0.7 million that was paid on November 7, 2019. In addition, certain terms of the executive’s outstanding unit awards were modified resulting in incremental stock-based compensation expense of approximately $0.4 million. The cash compensation and incremental stock-based compensation expense were fully recognized in 2019.

Common Stock Options Activity

Unless otherwise indicated, the Parent’s unit award activities and related information are summarized and presented in this section for all periods presented as the equivalents of the Company’s stock options following the Reorganization.

The following table summarizes the Company’s stock option activities and related information for the periods presented:


	Outstanding Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contract Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance, December 31, 2017		7,150,000		$	4.98		9.9	$	6,006
Options granted		737,500			7.23
Options exercised		(3,250	)		2.97
Options forfeited/cancelled		(181,250	)		4.80

Balance, December 31, 2018		7,703,000			4.18		8.9		19,615
Options granted		1,935,000			7.78
Options exercised		(34,000	)		3.63
Options forfeited/cancelled		(814,000	)		5.34

Balance, December 31, 2019		8,790,000			4.86		8.1		24,949

Exercisable, December 31, 2019		2,845,500		$	4.00		7.2	$	10,489

The weighted average grant-date fair value of the stock options granted for the years ended December 31, 2018 and December 31, 2019 was $2.51 and $2.88 per option, respectively.

As of December 31, 2018 and December 31, 2019, the unrecognized stock-based compensation costs were $13.1 million and $13.2 million, respectively, which are expected to be recognized over a weighted average period of 3.78 and 3.48 years, respectively.

The Company recognized stock-based compensation in the accompanying combined consolidated statements of operations as follows:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Cost of revenue	$	162	$	197
Product development		407		567
Sales, general and administrative		2,182		3,084

Stock-based compensation	$	2,751	$	3,848

The Company computed the fair value of the options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:


	Year Ended December 31, 2018			Year Ended December 31, 2019

Weighted average grant date fair value per common stock	$	6.88		$	7.59
Weighted average expected term in years		6.48			6.48
Range of expected volatility		33.4%-35.0	%		34.3%-36.1	%
Weighted average expected dividend yield		—			—
Range of risk free interest rate		2.7%-3.1	%		1.4%-2.6	%

Determination of Fair Value

The fair value of each common stock option grant was determined by the Company using the method and assumptions discussed below. Each of these inputs is subjective and generally requires significant judgment and estimation by management.

The estimated grant-date fair value of all of the Company’s stock-based awards was calculated based on the following assumptions:

Expected Term—The expected term represents the period that stock-based awards are expected to be outstanding. The expected term for option grants is determined using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the stock-based awards.

Expected Volatility—Since the Company does not have a trading history for its common stock, the expected volatility was derived from the historical stock volatilities of comparable peer public companies within its industry that are considered to be comparable to the Company’s business over a period equivalent to the expected term of the stock-based awards.

Risk-Free Interest Rate—The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the stock-based awards’ expected term.

Expected Dividend Rate—The expected dividend is zero as, other than the declaration and payments of a special one-time cash dividend of $85.0 million in March 2018, the Company has not paid nor does it anticipate paying any dividends on its common stock in the foreseeable future.

Fair Value of Common Stock—The fair value of the Company’s common stock is determined by the Company’s board of directors because there is no public market for the Company’s common stock. The Company’s board of directors determines the fair value of the common stock by considering a number of objective and subjective factors, including having valuations of its common stock performed by an unrelated valuation specialist, valuations of comparable peer public companies, operating and financial performance, the lack of liquidity of the Company’s stock, and general and industry-specific economic outlook.

The expense is recognized over the requisite service period.

Net Income (Loss) Per Share

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

12. Net Income (Loss) Per Share

Following the Reorganization, all share and per share information in this section has been revised as Corsair common share equivalents. The following table summarizes the calculation of basic and diluted net income (loss) per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except share and per share amounts)
Numerator
Net income (loss), basic and diluted	$	36,357	$	1,519	$	60,174	$	(14,406	)

Denominator
Weighted-average shares used to compute net income (loss) per share, basic		84,870,837		75,939,443		84,352,415		75,928,057
Effect of dilutive securities⁽¹⁾		5,213,112		1,944,311		3,146,104		—

Weighted-average shares used to compute net income (loss) per share, diluted		90,083,949		77,883,754		87,498,519		75,928,057

Net income (loss) per share:
Basic	$	0.43	$	0.02	$	0.71	$	(0.19	)

Diluted	$	0.40	$	0.02	$	0.69	$	(0.19	)

(1)	As a result of our net loss, potentially dilutive ordinary share equivalents of approximately 1.8 million options were excluded from the calculation of diluted net loss per share for the nine months ended September 30, 2019.

Share equivalents attributable to outstanding stock options and RSUs totaling approximately 22 thousand and 1.2 million for the three months ended September 30, 2020 and 2019, respectively, and 2.1 million and 1.7 million for the nine months ended September 30, 2020 and 2019, respectively, were excluded from the calculation of diluted net income per share because the combined exercise price and average unamortized grant date fair value upon exercise of the stock options or vesting of RSUs were greater than the average market price of our shares during the periods presented herein, and therefore their inclusion would have been anti-dilutive.

12. Net Loss Per Share

Following the Reorganization, all share and per share information in this section has been revised as common share equivalents of the Company. The following table summarizes the calculation of basic and diluted net income (loss) per share attributable to the Company’s common stockholders during the periods presented:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands, except share and per share amounts)

Numerator
Net loss, basic and diluted	$	(13,720	)	$	(8,394	)

Denominator
Weighted-average shares used to compute net loss per share, basic		75,457,693			76,223,451
Effect of dilutive options⁽¹⁾		—			—

Weighted-average shares used to compute net loss per share, diluted		75,457,693			76,223,451

Net loss per share, basic	$	(0.18	)	$	(0.11	)

Net loss per share, diluted	$	(0.18	)	$	(0.11	)

(1)	As a result of the Company’s net loss, dilutive ordinary share equivalents of approximately 1.3 million and 1.9 million options were excluded from the calculation of diluted net loss per share for the years ended December 31, 2018 and 2019, respectively.

Potentially dilutive securities are excluded from the calculation of diluted net income per share if their inclusion is anti-dilutive. The following table shows the weighted-average outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share:


	Year Ended December 31, 2018		Year Ended December 31, 2019

Options		2,647,008		1,673,618

Income Taxes

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(In thousands)
Income (loss) before income taxes	$	39,574		$	1,444		$	70,323		$	(19,051	)
Income tax (expense) benefit		(3,217	)		75			(10,149	)		4,645
Effective income tax rate		8.1	%		5.2	%		14.4	%		24.4	%

We are subject to income taxes in the United States and foreign jurisdictions in which we do business. These foreign jurisdictions have statutory tax rates different from those in the United States. Accordingly, our effective tax rates will vary depending on the relative proportion of foreign to United States income, the utilization of net operating loss and tax credit carry forwards, changes in geographic mix of income and expense, and changes in management’s assessment of matters such as the ability to realize deferred tax assets, and changes in tax laws.

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), enacted on March 27, 2020, provides tax relief to individuals and businesses in light of the impacts of COVID-19. Changes in tax laws or rates are accounted for in the period of enactment and as a result, additional income tax benefits of $0.6 million were recorded during the nine months ended September 30, 2020 resulting from the enactment of the CARES Act.

Our effective tax rates were tax expense of 8.1% and tax benefit of 5.2% for the three months ended September 30, 2020 and 2019, respectively, and tax expense of 14.4% and tax benefit of 24.4% for the nine months ended September 30, 2020 and 2019, respectively. The change in the effective income tax rate for the three months ended September 30, 2020, compared to the same period last year was primarily due to the mix of income and losses in the various tax jurisdictions in which we operate, as well as the recognition of a $1.5 million tax benefit in the three months ended September 30, 2019 versus a $4.3 million tax benefit recognized in the three months September 30, 2020, resulting from the change in management’s assessment of the realizability of certain deferred tax assets as a result of the Reorganization. The change in the effective tax rate for the nine months ended September 30, 2020, compared to the same period last year was primarily due to the recognition of a $4.3 million tax benefit in the nine months ended September 30, 2020 resulting from the change in management’s assessment of the realizability of certain deferred tax assets as a result of the Reorganization, and a $0.6 million one-time benefit from the change in tax law resulting from the enactment of the CARES Act in the first quarter 2020.

Unrecognized tax benefits were $0.6 million and $0.7 million as of September 30, 2020 and December 31, 2019, respectively, and if recognized, would favorably affect the effective income tax rate in future periods.

13. Income Taxes

Income (loss) before income tax consists of the following:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands)
Domestic	$	(15,887	)	$	(18,407	)
Foreign operations		5,180			5,008

Loss before income tax	$	(10,707	)	$	(13,399	)

Income tax (expense) benefit consists of the following:


	Year ended December 31, 2018			Year ended December 31, 2019
	(In thousands)
United States federal taxes:
Current	$	(1,029	)	$	(2,177	)
Deferred		(209	)		5,948
State taxes:
Current		(113	)		(529	)
Deferred		(64	)		1,421
Foreign taxes:
Current		(4,888	)		(3,824	)
Deferred		3,290			4,166

Income tax (expense) benefit	$	(3,013	)	$	5,005

The income tax (expense) benefit differs from the amount which would result by applying the applicable statutory deferral rate to income before income taxes as follows:


	Year ended December 31, 2018			Year ended December 31, 2019
	(In thousands)
Provision at federal statutory rate	$	1,581		$	2,814
State taxes		423			911
Change in valuation allowance		(5,411	)		719
Expired capital losses and tax credits		368			—
Foreign rate differential		439			300
Net operating loss		—			2,557
Effect of change in tax rate on deferred tax assets		(245	)		(469	)
Tax on undistributed foreign earnings		—			(1,520	)
Other		(168	)		(307	)

Income tax (expense) benefit	$	(3,013	)	$	5,005

The significant variations in the change in valuation allowance in 2019 represent a release of valuation allowance due to increased deferred tax liability generated by acquired intangible assets from the SCUF acquisition. The disclosure for foreign rate differential reflects the impact of the effective tax rate benefit from operations in jurisdictions where the applicable foreign tax rate is lower than the U.S. statutory rate. The Company was not subject to any tax holidays or tax holiday terminations subject to disclosure during these periods that impacted loss per share.

Deferred tax assets and liabilities comprise the following:


	As of December 31, 2018			As of December 31, 2019
	(In thousands)
Deferred tax assets:
Accrued expenses and reserves	$	3,368		$	12,516
Equity-based compensation		825			1,720
NOL and capital losses		12,917			14,461
Interest expense carryover		1,613			3,628
Tax credits		2,124			1,339
Cumulative transaction adjustment		300			355

Total deferred tax assets		21,147			34,019
Less valuation allowance		(13,335	)		(12,615	)
Deferred tax liabilities:
Intangible assets		(42,027	)		(53,382	)
Other		(31	)		(195	)

Net deferred tax liabilities	$	(34,246	)	$	(32,173	)

The Company has established a valuation allowance of $13.3 million and $12.6 million as of December 31, 2018 and 2019, respectively, against its net deferred tax assets. The Company determines its valuation allowance on deferred tax assets by considering both positive and negative evidence in order to ascertain whether it is more likely than not that deferred tax assets will be realized. Realization of deferred tax assets is dependent upon the generation of future taxable income, if any, the timing and amount of which are uncertain. Due to the history of losses the Company has generated in the past, the Company has recorded a valuation allowance on its federal, U.S. state, and Luxembourg deferred tax assets.

In December 2017, the Tax Cuts and Jobs Acts (‘Tax Act’) was enacted into law. The Act revised the business interest expense limitation. For tax years beginning after December 31, 2017, IRC §163(j) limits the deduction for business interest to the sum of business interest income and 30 percent of adjusted taxable income without regard to business interest expense or income; and net operating loss deduction. Limited interest is carried forward indefinitely. In 2019, the Company’s interest expense of $2.5 million is subject to limitation. State conformity to this provision is applied on a jurisdiction-by jurisdiction basis.

The Act extended and modified IRC §168(k) bonus depreciation provisions, allowing businesses to immediately deduct 100% of the cost of eligible property in the year it is placed in service, through 2022. The amount of allowable bonus depreciation is then phased down over four years: 80% will be allowed for property placed in service in 2023, 60% in 2024, 40% in 2025, and 20% in 2026. The Company has taken bonus depreciation of approximately $2.6 million in the current year. State conformity to this provision and is applied on a jurisdiction-by-jurisdiction basis.

On December 22, 2017, the SEC issued Staff Accounting Bulletin 118 (“SAB 118”), which provides guidance on accounting for tax effects of the Act. SAB 118’s measurement period closed on December 22, 2018, one year from the Act’s enactment. In accordance with SAB 118, the Company took a provisional amount of bonus tax depreciation following the provisions under IRC §168(k) as of December 31, 2017. Upon finalization in 2018, the provisional adjustment did not change, resulting in no adjustment to tax expense for the year ended December 31, 2018. The Act’s impact on the Company’s state income tax rate was less than 1 percent.

As of December 31, 2019, the Company had net operating loss carry forwards for federal, state and foreign tax purposes of $31.3 million, $29.8 million, and $18.2 million. The federal net operating losses will begin to expire starting in 2037. The state net operating losses will begin to expire starting in 2031. The foreign losses begin to expire in 2021. Certain tax attributes are subject to an annual limitation as a result of the Company’s investment in certain subsidiaries of its predecessor, Corsair Components (Cayman) Ltd., in August 2017, which constitutes a change of ownership as defined under Internal Revenue Code Section 382. The Company does not expect the tax attributes to be materially affected by the Company’s annual limitation.

As of December 31, 2019, the Company had $0.5 million of cumulative unrecognized tax benefits. $0.4 million of these unrecognized tax benefits will favorably impact the Company’s effective tax rate in future periods to the extent benefits are recognized. As of December 31, 2019, the Company expects to reduce its unrecognized tax benefits by $0.4 million in the next 12 months. The expected decrease to the Company’s unrecognized tax benefits is related to an income tax examination of one of our foreign subsidiaries.

The Company files income tax returns with the U.S. federal government, various U.S. states and foreign jurisdictions including China, France, Germany, Hong Kong, Luxembourg, Netherlands, Slovenia, Taiwan, United Kingdom and Vietnam. The Company’s tax returns in U.S., various U.S. states and foreign jurisdictions remain open to examination from 2013 to 2018.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted and signed into U.S. law to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Related-Party Transactions	9 Months Ended	12 Months Ended
Related-Party Transactions	Sep. 30, 2020	Dec. 31, 2019
Related Party Transactions [Abstract]
Related-Party Transactions	14. Related-Party Transactions A company affiliated with a major shareholder, EagleTree-Carbide (GP), LLC, provided management and consulting services to us. We incurred $21 thousand and $33 thousand for the three months ended September 30, 2020 and 2019, respectively, and $0.1 million for each of the nine months ended September 30, 2020 and 2019, which primarily covered travel and out-of-pocket expenses related to such services. The unpaid services were $21 thousand and $0.1 million as of September 30, 2020 and December 31, 2019, respectively. This management and consulting service agreement was terminated in September 2020. One of our directors, through one of his companies, entered into a service agreement to serve as our business management consultant. We incurred $30 thousand and $8 thousand of consulting fees under the service agreement for the three months ended September 30, 2020 and 2019, respectively, and $92 thousand and $55 thousand for the nine months ended September 30, 2020 and 2019, respectively. The unpaid services were $44 thousand and $16 thousand as of September 30, 2020 and December 31, 2019, respectively. This service agreement was terminated in September 2020. As discussed in Note 8, we had a Second Lien Term Loan outstanding as of December 31, 2019. The total net carrying value of the Second Lien Term Loan balance held by all related parties, an affiliate of the Parent and one of our directors, was $5.8 million as of December 31, 2019. As of September 30, 2020, the outstanding balance of the Second Lien Term Loan was fully repaid and as a result, there was no debt held by related parties as of September 30, 2020.	14. Related-Party Transactions One of the Company’s directors was a director of one of the Company’s vendors. On October 23, 2018, this director has notified the vendor’s board of directors of his decision to retire and leave the board and was effective at the time of notification. This director remains a director of the Company. The vendor sold inventory to the Company for which the Company paid $25.3 million for the period from January 1, 2018 to October 23, 2018. A company affiliated with the general partner, EagleTree-Carbide (GP), LLC provides management and consulting services relating to the business and operations of the Company. The Company incurred $0.3 million and $0.3 million for the years ended December 31, 2018 and 2019, respectively, which covers travel and out-of-pocket expenses related to such services. The unpaid services were $0.1 million and $0.1 million as of December 31, 2018 and December 31, 2019, respectively. One of the Company’s directors, through one of his companies, entered into a service agreement to serve as a business management consultant for the Company. The Company incurred $0.1 million and $0.1 million of consulting fees under the service agreement for the years ended December 31, 2018 and 2019, respectively. The unpaid services were $30 thousand as of December 31, 2018 and December 31, 2019, respectively. The Company entered into a lease agreement with a business entity owned by the Company’s Chief Executive Officer and recorded associated rent expense of $54 thousand for the years ended December 31, 2018 and 2019. The Company provided a security deposit of $5 thousand as collateral for the lease. As of December 31, 2018, the unpaid rent balance included in the accounts payable was $5 thousand. There were no unpaid rent balances as of December 31, 2019. As discussed in Note 8, the Company has a Second Lien Term Loan outstanding as of December 31, 2018 and 2019. The Company’s Chief Executive Officer and an affiliate of the Parent both held $4.0 million of the outstanding principal balance of the Second Lien Term Loan as of December 31, 2018. During 2019, the Company’s Chief Executive Officer disposed 50% of his principal balance to a company owned by one of the Company’s directors, and the remaining 50% to an unrelated third party. The total net carrying value of the net Second Lien Term Loan balance held by all related parties was $7.6 million and $5.8 million as of December 31, 2018 and December 31, 2019, respectively.

Segment and Geographic Information

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Segment Reporting [Abstract]

Segment and Geographic Information

15. Segment and Geographic Information

We have two reportable segments:

•

Gamer and Creator Peripherals, which includes high-performance gaming keyboards, mice, headsets and controllers, as well as our gaming gear including capture cards, studio accessories, among others.

•

Gaming Components and Systems, which includes high performance power supply units, or PSUs, cooling solutions, computer cases, and DRAM modules, as well as high-end prebuilt and custom-built gaming PCs, among others.

The segments are defined as those operations our chief operating decision maker (“CODM”) regularly reviews to analyze performance and allocate resources. Our CODM is determined to be Corsair’s Chief Executive Officer. The results of the reportable segments are derived directly from our reporting system and are based on the methods of internal reporting which are not necessarily in conformity with GAAP. Management measures net revenue and gross profit to evaluate the performance of, and allocate resources to, each of the segments.

The table below summarizes the financial information for each reportable segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	161,555	$	70,606	$	347,531	$	200,084
Gaming Components and Systems		295,548		213,766		798,497		570,535

Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

Gross Profit
Gaming and Creator Peripherals	$	60,010	$	19,948	$	120,886	$	58,234
Gaming Components and Systems		67,934		40,279		190,744		95,600

Total gross profit	$	127,944	$	60,227	$	311,630	$	153,834

The CODM manages assets on a total company basis, not by operating segments; therefore, asset information and capital expenditures by operating segments are not presented.

Geographic Information

The following table summarizes our net revenue by geographic region based on the location of the customer:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Americas	$	216,982	$	108,318	$	517,165	$	315,200
Europe and Middle East		162,615		114,118		412,349		287,502
Asia Pacific		77,506		61,936		216,514		167,917

Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

No other countries besides United States represented 10% or more of total net revenue for each of the periods presented.

One customer represented at least 10% of total net revenue for each of the periods presented.

Long-lived assets are comprised primarily of property and equipment, net. The following table summarizes property and equipment, net by country:


	September 30, 2020		December 31, 2019
	(In thousands)
United States	$	6,532	$	6,400
China		5,039		4,998
Taiwan		2,668		2,270
Other countries		1,165		1,697

Total property and equipment, net	$	15,404	$	15,365

15. Segment and Geographic Information

The Company has two reportable segments: gamer and creator peripherals and gaming components and systems.

The results of the reportable segments are derived directly from the Company’s reporting system and are based on the methods of internal reporting which are not necessarily in conformity with GAAP. Management measures net revenue and gross profit to evaluate the performance of, and allocate resources to, each of the segments. Management does not use asset information to assess performance and make decisions regarding allocation of resources.

Prior to fiscal year 2019, the Company operated its business in three reportable segments – gaming PC peripherals, gaming PC components and gaming PC memory. With effect from the fourth quarter of 2019, gaming PC memory was no longer reviewed and assessed separately by the Company’s CODM as an operating segment for resource allocation purposes. To align with the objective of Topic 280 and present the Company’s disaggregated financial information consistent with the management approach, the gaming PC memory operating segment is included as a component within the gaming PC components operating segment. Beginning with fiscal year 2019, the Company reports its financial performance based on two reportable segments:

•

Comparative period financial information for fiscal year 2018 by reportable segment has been recast to conform with current presentation.

Financial information for each reportable segment was as follows:


	Year Ended December 31, 2018⁽¹⁾		Year Ended December 31, 2019

	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	233,536	$	294,141
Gaming Components and Systems		704,017		803,033

Total net revenue	$	937,553	$	1,097,174

Gross Profit
Gaming and Creator Peripherals	$	73,489	$	81,363
Gaming Components and Systems		119,206		142,924

Total gross profit	$	192,695	$	224,287

(1)	Reclassified to conform with 2019 presentation.

The Company’s CODM manages assets on a total company basis, not by operating segments; therefore, asset information and capital expenditures by operating segments are not presented.

Geographic Information

The following table reflects revenue by geographic area by customer location:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Net revenue
United States	$	329,179	$	386,944
Other Americas		57,579		73,312
Europe and Middle East		348,798		406,435
Asia Pacific		201,997		230,483

Total net revenue	$	937,553	$	1,097,174

Long-lived assets are comprised primarily of property and equipment, net. The following table presents a summary of property and equipment, net by country:


	December 31, 2018		December 31, 2019

	(In thousands)
United States	$	4,394	$	6,400
China		6,363		4,998
Taiwan		983		2,270
Other countries		733		1,697

Property and equipment, net	$	12,473	$	15,365

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

16. Leases

Our lease portfolio consists primarily of real estate facilities under operating leases and we determine if an arrangement is or contains a lease at inception. ROU assets and lease liabilities are recognized at commencement based on the present value of the lease consideration in the contracts over the lease term. We apply the incremental borrowing rate in determining the present value of the lease consideration in the contracts, as most of our leases do not provide an implicit rate. Our incremental borrowing rate is the rate of interest we would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Because we generally do not borrow on a collateralized basis, we apply an estimate of what the collateralized credit rating would be as an input to deriving an appropriate incremental borrowing rate. Certain of our lease agreements include options to extend or renew the lease terms. Such options are excluded from the ROU assets and lease liabilities, unless they are reasonably certain to be exercised. Operating lease expense is recognized on a straight-line basis over the lease term.

Certain lease agreements contain variable lease payments, which primarily include variable costs for warehousing and distribution services related to our outsourced distribution hubs, and to a lesser extent, variable costs related to office common area maintenance charges.

The table below summarizes the components of lease expenses:


	Three Months Ended September 30, 2020		Nine months ended September 30, 2020
			(In thousands)
Operating lease expense	$	2,739	$	6,932
Variable lease expense		2,226		4,657

Total lease expense	$	4,965	$	11,589

During the three and nine months ended September 30, 2020, we made $2.6 million and $6.7 million, respectively, in payments for operating leases included within cash provided by operating activities in our condensed combined consolidated statement of cash flows.

As of September 30, 2020, the weighted-average remaining lease term was 3.6 years and the weighed-average discount rate was 4.0%.

Amounts of future undiscounted cash flows related to operating lease payments over the lease term included in the measurement of lease liabilities as of September 30, 2020 are as follows:


	Amounts
	(In thousands)
2020 (remaining three months)	$	2,310
2021		9,072
2022		6,372
2023		5,172
2024		3,999
Thereafter		1,987

Total future lease payments	$	28,912
Less: Imputed interest		(2,133	)

Present value of operating lease liabilities	$	26,779
Current portion of operating lease liabilities ⁽¹⁾	$	8,883
Long-term operating lease liabilities ⁽¹⁾	$	17,896

(1)	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows:


	Amounts
	(In thousands)
2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—

Total	$	18,621

Description of Business (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Accounting Policies [Abstract]

Reorganization

Reorganization

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Reorganization

The Reorganization was comprised of a series of steps as set forth below:

•

The Parent acquired the minority interest held by Corsair Group (US), LLC in exchange for its own units.

•

Corsair Gaming, Inc. acquired all of the outstanding capital stock of Corsair Luxco from the Parent in exchange for its own stock.

•

As all legal entities included in the Reorganization are under common control of the Parent, all steps of the Reorganization were accounted for as a combination of entities under common control.

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Corrections of Immaterial Errors

Corrections of Immaterial Errors

Segments

Segments

•

Comparative period financial information for fiscal year 2018 by reportable segment has been recast to conform with current presentation. Refer to Note 15 for further information.

Cash and Restricted Cash

Cash and Restricted Cash


	December 31, 2018		December 31, 2019
	December 31, 2018		December 31, 2019

	(In thousands)
Cash	$	25,639	$	48,165
Restricted cash—short term		2,281		3,552
Restricted cash—noncurrent		—		230

Total cash and restricted cash	$	27,920	$	51,947

Accounts Receivable, net

Accounts Receivable, net

Concentration of Credit Risk

Concentration of Credit Risk

The Company’s customers that accounted for 10% of total accounts receivable, net were as follows:


	As of December 31, 2018			As of December 31, 2019

Customer A		35	%		34	%
Customer B		13	%		20	%

The Company had one customer that accounted for 10% of more of total net revenue as follows:


	Year ended December 31, 2018			Year ended December 31, 2019

Customer A		22	%		25	%

Inventories

Inventories

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Property and Equipment, net

Property and Equipment, net


Manufacturing equipment		2 – 5 years
Computer equipment, software and office equipment		3 – 5 years
Furniture and fixtures		2 – 7 years
Leasehold improvements		Shorter of lease term or the useful lives of the improvements

Business Combinations

Business Combinations

Goodwill and Intangible Assets

Goodwill and Intangible Assets

No impairment charges were recorded in the periods presented. Refer to note 6 for additional information regarding the Company’s goodwill and intangible assets.

Warranty Reserve

Warranty Reserve

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Deferred Issuance Costs and Debt Discounts

Deferred Issuance Costs and Debt Discounts

Deferred Offering Costs

Deferred Offering Costs

Revenue Recognition

Revenue Recognition

•

identification of the contract, or contracts, with the customer

•

identification of the performance obligations in the contract

•

determination of the transaction price

•

allocation of the transaction price to the performance obligations in the contract, and

•

recognition of revenue when, or as the performance obligation is fulfilled

The Company offers return rights and customer incentive programs. Customer incentive programs include special pricing arrangements, promotions, rebates and volume-based incentives.

Cost of Revenue

Cost of Revenue

Distribution Costs

Distribution Costs

Product Development Costs

Product Development Costs

Advertising Costs

Advertising Costs

Stock-Based Compensation

Stock-Based Compensation

Nonmonetary Transactions

Nonmonetary Transactions

Because the transactions are nonmonetary, they have not been included in the combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Employee Benefit Plan

Employee Benefit Plan

Income Taxes

Income Taxes

Uncertain Tax Positions

Uncertain Tax Positions

Foreign Currency

Foreign Currency

Net Income (Loss) per Share

Net Income (Loss) per Share

Emerging Growth Company Status

Emerging Growth Company Status

(a)

The date on which the Company consummates its initial public offering, or

(b)

The end of the one-year period beginning on December 31, 2019.

Refer to the “Other Recently Adopted Accounting Pronouncements” section below for the Company’s recently adopted accounting pronouncements.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606

The cumulative effect of the changes to the combined consolidated balance sheet from the adoption of Topic 606 were as follows (in thousands):


	As of December 31, 2018			Effect of Adoption of Topic 606			As of January 1, 2019
Assets:
Accounts receivable, net	$	122,042		$	26,527		$	148,569
Prepaid expenses and other current assets		17,298			5,674			22,972
Deferred Tax Assets		445			746			1,191
Liability and Stockholders’ Equity:
Income Tax Payable		3,572			(333	)		3,239
Other liabilities and accrued expenses		32,058			36,966			69,024
Accumulated deficit	$	(93,161	)	$	(3,686	)	$	(96,847	)

Net Reduction to Accumulated Deficit as of January 1, 2019

Balance Sheet Reclassifications

The adoption of Topic 606 did not have an impact over the total cash flows from operating, investing, or financing activities.

Contract Assets

Contract Liabilities (Deferred Revenue and Unearned Revenue)

Deferred revenue and unearned revenue are included in other liabilities and accrued expenses on the combined consolidated balance sheets.

Impact on Combined Consolidated Financial Statements


	Year Ended December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Net Revenue	$	1,097,174	$	1,098,018	$	(844	)


	As of December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Assets:
Accounts receivable, net	$	202,334	$	157,934	$	44,400
Prepaid and other current assets		24,696		13,514		11,182
Deferred tax assets		1,646		900		746
Liabilities and Stockholders’ Equity:
Income tax payable		8,524		8,857		(333	)
Other liabilities and accrued expenses		107,017		45,825		61,192
Total stockholders’ equity	$	216,775	$	221,306	$	(4,531	)

Other Recently Adopted Accounting Pronouncements

In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This ASU change aspects of accounting for share-based payment award transactions including accounting for income taxes, the classification of excess tax benefits and the classification of employee taxes paid when shares are withheld for tax-withholding purposes on the combined consolidated statement of cash flows, forfeitures, and minimum statutory tax withholding requirements. The Company adopted this standard effective January 1, 2018 and has elected to record forfeitures when they occur. The change in accounting principle with regards to forfeitures was adopted using a modified retrospective approach. As a result of the adoption, the Company no longer records the excess tax benefits related to equity compensation as an increase to additional paid-in-capital and records such excess tax benefits as a reduction of income tax expense. The adoption of the ASU did not have a materialimpact on the Company’s combined consolidated financial statements.

In May 2017, the FASB issued ASU No. 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The Company adopted this standardeffective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s combined consolidated financial statements.

Accounting Pronouncements Issued but Not Yet Adopted

Accounting Pronouncements Issued but Not Yet Adopted

Recently Issued Accounting Pronouncements, Not Yet Adopted

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740), to simplify various aspects related to the accounting for income taxes. The new guidance is effective for the Company beginning in year 2021. The Company is in the process of evaluating the effects of this new guidance on its combined consolidated financial statements.

Initial Public Offering

Initial Public Offering

Principles of Consolidation

Principles of Consolidation

Risks and Uncertainties related to the COVID-19 Pandemic

Risks and Uncertainties related to the COVID-19 Pandemic

Nonmonetary Transactions

Nonmonetary Transactions

Because the transactions are nonmonetary, they have not been included in the condensed combined consolidated statements of cash flows pursuant to ASC 230, Statement of Cash Flows.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Reconciliation of Cash and Restricted Cash


	December 31, 2018		December 31, 2019
	December 31, 2018		December 31, 2019

	(In thousands)
Cash	$	25,639	$	48,165
Restricted cash—short term		2,281		3,552
Restricted cash—noncurrent		—		230

Total cash and restricted cash	$	27,920	$	51,947

Schedules of Concentration of Risk

The Company’s customers that accounted for 10% of total accounts receivable, net were as follows:


	As of December 31, 2018			As of December 31, 2019

Customer A		35	%		34	%
Customer B		13	%		20	%

The Company had one customer that accounted for 10% of more of total net revenue as follows:


	Year ended December 31, 2018			Year ended December 31, 2019

Customer A		22	%		25	%

Schedule of Property Plant and Equipment Estimated Useful Lives

Depreciation is calculated on the straight-line method over the estimated useful lives of the assets:


Manufacturing equipment		2 – 5 years
Computer equipment, software and office equipment		3 – 5 years
Furniture and fixtures		2 – 7 years
Leasehold improvements		Shorter of lease term or the useful lives of the improvements

Topic 606

Schedule of Cumulative Effect of Changes in Combined Consolidated Balance Sheet

The cumulative effect of the changes to the combined consolidated balance sheet from the adoption of Topic 606 were as follows (in thousands):


	As of December 31, 2018			Effect of Adoption of Topic 606			As of January 1, 2019
Assets:
Accounts receivable, net	$	122,042		$	26,527		$	148,569
Prepaid expenses and other current assets		17,298			5,674			22,972
Deferred Tax Assets		445			746			1,191
Liability and Stockholders’ Equity:
Income Tax Payable		3,572			(333	)		3,239
Other liabilities and accrued expenses		32,058			36,966			69,024
Accumulated deficit	$	(93,161	)	$	(3,686	)	$	(96,847	)

Summarize Impact of Adopting Topic 606 on Financial Statements


	Year Ended December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Net Revenue	$	1,097,174	$	1,098,018	$	(844	)


	As of December 31, 2019
	As reported under Topic 606		If reported under Topic 605		Effect of change
Assets:
Accounts receivable, net	$	202,334	$	157,934	$	44,400
Prepaid and other current assets		24,696		13,514		11,182
Deferred tax assets		1,646		900		746
Liabilities and Stockholders’ Equity:
Income tax payable		8,524		8,857		(333	)
Other liabilities and accrued expenses		107,017		45,825		61,192
Total stockholders’ equity	$	216,775	$	221,306	$	(4,531	)

Fair Value Measurement (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Financial Assets and Liabilities that Measured at Fair Value


	September 30, 2020
	(Level 1)		(Level 2)		(Level 3)		Total
	(in thousands)
Assets:
Interest rate cap contract⁽⁴⁾	$	—	$	45	$	—	$	45
Foreign currency forward contracts⁽⁴⁾		—		88		—		88

Total assets	$	—	$	133	$	—	$	133

Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	2,078	$	2,078
Contingent consideration in connection with an immaterial business acquisition		—		—		9		9
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,481		1,481
Foreign currency forward contracts⁽⁴⁾		—		378		—		378

Total liabilities	$	—	$	378	$	5,206	$	5,584


	December 31, 2019
	(Level 1)		(Level 2)		(Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335

Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

(2)

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated our borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

The following tables summarize the hierarchy of fair value measurements of the Company’s financial assets and liabilities measured on a recurring basis:


	Fair Value Measurements as of December 31, 2018
	Quoted Prices in Active Markets using Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Liabilities:
Deferred cash consideration in connection with a business acquisition—Elgato⁽¹⁾	$	—	$	—	$	10,448	$	10,448
Foreign currency forward contracts⁽²⁾		—		131		—		131

Total liabilities	$	—	$	131	$	10,448	$	10,579

(1)

(2)	The fair value of the forward contracts is based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.


	Fair Value Measurements as of December 31, 2019
	Quoted Prices in Active Markets using Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
	(In thousands)
Liabilities:
Contingent consideration in connection with a business acquisition—Origin⁽¹⁾	$	—	$	—	$	3,964	$	3,964
Deferred cash consideration in connection with a business acquisition—SCUF⁽²⁾		—		—		1,638		1,638
Deferred cash consideration in connection with a business acquisition—Origin⁽³⁾		—		—		1,411		1,411
Foreign currency forward contracts⁽⁴⁾		—		335		—		335

Total liabilities	$	—	$	335	$	7,013	$	7,348

(1)

(2)

(3)	The fair value of Origin’s deferred cash consideration is determined at the Origin acquisition date by using a discount rate of 6.5%. This discount rate approximated the Company’s borrowing rate under the revolving line of credit and represented a Level 3 input under the fair value hierarchy.

(4)	The fair values of the forward contracts and interest rate cap contract are based on similar exchange traded derivatives and the related asset or liability is, therefore, included within Level 2 of the fair value hierarchy.

Business Combinations (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

SCUF Acquisition

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed


	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		12,800
Prepaid and other assets		1,377
Identifiable intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)

Net identifiable net assets acquired	$	63,670
Goodwill		72,642

Net assets acquired	$	136,312


	(In thousands)
Assets acquired:
Cash	$	6,947
Accounts receivable		4,587
Inventories		13,307
Prepaid and other assets		1,377
Identifiable Intangible assets		71,890
Property and equipment		2,927
Other assets		40
Liabilities assumed:
Accounts payable		(9,182	)
Sales tax payable		(5,533	)
Deferred revenue		(3,752	)
Other liabilities and accrued expenses		(8,416	)
Deferred tax liabilities		(10,015	)

Net identifiable net assets acquired	$	64,177
Goodwill		73,665

Net assets acquired	$	137,842

Summary of Components of Identifiable Assets Acquired and Estimated Useful Lives

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the SCUF Acquisition Closing Date:


	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15

Total identifiable intangible assets	$	71,890

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of the acquisition date:


	Fair Value		Weighted Average Useful Life
	(In thousands)		(In years)
Patents	$	30,500		8
Developed technology		18,600		6
Customer Relationships		590		5
Trade name		22,200		15

Total identifiable intangible assets	$	71,890

The following table summarizes the components of identifiable intangible assets acquired and their estimated useful lives as of acquisition date:


	Fair Value		Useful Life
	(In thousands)		(In years)
Developed technology	$	10,769		5
In-process research and development		748		5
Trade name		7,825		15

Total identifiable intangible assets	$	19,342

Business Acquisition, Pro Forma Financial Information

The following unaudited pro forma financial information combines the unaudited condensed combined consolidated results of operations as if the SCUF Acquisition had occurred as of January 1, 2019:


	Three months Ended September 30, 2019			Nine months Ended September 30, 2019
	(in thousands)
Net revenue	$	299,130		$	815,432
Net loss		(3,101	)		(25,040	)

Origin Acquisition

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The final allocation of the Origin Acquisition purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:


	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,033	)
Other liabilities, noncurrent		(447	)

Net identifiable assets acquired		1,499
Goodwill		12,270

Net assets acquired	$	13,769


	(In thousands)
Assets acquired:
Cash, net of cash acquired	$	376
Accounts receivable		1,379
Inventories		4,445
Prepaid and other assets		309
Identifiable intangible assets (customer relationship with estimated 6 years of useful life)		1,000
Property and equipment		140
Liabilities assumed:
Accounts payable		(2,670	)
Other liabilities and accrued expenses		(3,384	)
Other liabilities, noncurrent		(447	)

Net identifiable assets acquired		1,148
Goodwill		12,353

Net assets acquired	$	13,501

Elgato Acquisition

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The final allocation of the Elgato purchase consideration to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date is as follows:


	(In thousands)
Assets acquired:
Inventories	$	4,283
Prepaid and other assets		548
Identifiable Intangible assets		19,342
Liabilities assumed:
Sales return reserves		(500	)
Other current liabilities and accrued expenses		(540	)

Net identifiable assets acquired		23,133
Goodwill		23,487

Net assets acquired	$	46,620

Business Acquisition, Pro Forma Financial Information


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(unaudited)
	(in thousands)
Net revenue	$	1,013,761		$	1,165,502
Net loss		(19,362	)		(24,598	)

Goodwill and Intangible Assets (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount of Goodwill by Reportable Segment

The following table summarizes the changes in the carrying amount of goodwill by reportable segment:


	Gaming Components and Systems			Gamer and Creator Peripherals			Total
	(In thousands)
Balance as of December 31, 2019	$	145,375		$	167,375		$	312,750
Addition from business acquisition		—			185			185
Measurement period adjustments		(47	)		(1,023	)		(1,070	)
Effect of foreign currency exchange rates		284			(576	)		(292	)

Balance as of September 30, 2020	$	145,612		$	165,961		$	311,573

The following table summarizes the activity in the Company’s goodwill by reportable segment (in thousands):


	Gaming Components and Systems			Gamer and Creator Peripherals			Total
December 31, 2017⁽¹⁾	$	133,045		$	70,077		$	203,122
Addition from business acquisition		57			23,574			23,631
Effect of foreign currency exchange rates		(39	)		(35	)		(74	)

December 31, 2018	$	133,063		$	93,616		$	226,679
Addition from business acquisitions		12,317			73,778			86,095
Effect of foreign currency exchange rates		(5	)		(19	)		(24	)

December 31, 2019	$	145,375		$	167,375		$	312,750

(1)	The balances as of December 31, 2017 have been corrected for immaterial misstatements. Refer to Note 2 “Summary of Significant Accounting Policies—Corrections of Immaterial Errors” for more information.

Summary of Intangible Assets, Net

The following table is a summary of intangible assets, net:


	September 30, 2020						December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In thousands)
Developed technology	$	44,883	$	21,606	$	23,277	$	44,243	$	17,536	$	26,707
Trade name		30,128		2,388		27,740		30,253		833		29,420
Customer relationships		218,456		67,397		151,059		218,459		50,916		167,543
Patent		29,989		3,007		26,982		30,721		130		30,591
Non-competition agreements		3,110		2,152		958		3,110		1,774		1,336

Total finite-life intangibles		326,566		96,550		230,016		326,786		71,189		255,597
Indefinite life trade name		35,430		—		35,430		35,430		—		35,430

Total intangible assets	$	361,996	$	96,550	$	265,446	$	362,216	$	71,189	$	291,027

Intangible assets, net consist of the following:


	December 31, 2018
	Weighted Average Useful Life		Weighted Average Remaining Amortization Period in Years		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
					(In thousands)
Intangible assets:
Developed technology		3.3 years		3.3	$	25,153	$	10,578	$	14,575
Trade name		15 years		14.5		7,825		261		7,564
Customer relationships		10 years		8.7		216,869		29,153		187,716
Non-competition agreements		4.4 years		3.4		3,110		1,074		2,036

Total finite-life intangibles				8.4		252,957		41,066		211,891
In-process research and development		n/a		n/a		491		—		491
Indefinite life trade name		Indefinite life		—		35,430		—		35,430

Total intangible assets					$	288,878	$	41,066	$	247,812

For the year ended December 31, 2018, the gross amount of intangible assets increased $19.3 million as a result of the Elgato acquisition.


	December 31, 2019
	Weighted Average Useful Life		Weighted Average Remaining Amortization Period in Years		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
					(In thousands)
Developed technology		4.5 years		3.4	$	44,243	$	17,536	$	26,707
Trade name		15.0 years		14.6		30,253		833		29,420
Customer relationships		10.0 years		7.6		218,459		50,916		167,543
Patent		7.9 years		7.9		30,721		130		30,591
Non-competition agreements		4.4 years		2.6		3,110		1,774		1,336

Total finite-life intangibles				7.7		326,786		71,189		255,597
Indefinite life trade name		Indefinite life		—		35,430		—		35,430

Total intangible assets					$	362,216	$	71,189	$	291,027

Summary of Recognized Amortization Expense of Intangible Assets

The Company recognized amortization expense of intangible assets in the accompanying combined consolidated statements of operations as follows:


	Year Ended December 31, 2018		Year Ended December 31, 2019
	Year Ended December 31, 2018		Year Ended December 31, 2019
	(In thousands)
Cost of revenue	$	—	$	130
Product development		8,147		6,958
Sales, general and administrative		22,746		23,035

Amortization of intangible assets	$	30,893	$	30,123

Schedule of Estimated Future Amortization Expense of Intangible Assets

The estimated future amortization expense of intangible assets as of September 30, 2020 is as follows:


	Amounts
	(in thousands)
2020 (remaining three months)	$	8,484
2021		33,938
2022		33,761
2023		32,359
2024		30,913
Thereafter		90,561

Total	$	230,016

The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows:


	Amounts
	(In thousands)
2020	$	33,832
2021		33,832
2022		33,655
2023		32,324
2024		31,021
Thereafter		90,933

Total	$	255,597

Balance Sheet Components (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Balance Sheet Related Disclosures [Abstract]

Summary of Accounts Receivable, Net

Accounts Receivable, net:


	September 30, 2020			December 31, 2019
	(In thousands)
Accounts receivable	$	260,476		$	202,546
Allowance for doubtful accounts		(934	)		(212	)

Accounts receivable, net	$	259,542		$	202,334

Accounts Receivable, net:


	December 31, 2018			December 31, 2019
	(In thousands)
Accounts receivable	$	148,917		$	202,546
Allowance for doubtful accounts		(349	)		(212	)
Rebates⁽¹⁾		(17,119	)		—
Sales return reserves⁽¹⁾		(9,407	)		—

Accounts receivable, net	$	122,042		$	202,334

(1)

Summary of Inventories

Inventories


	September 30, 2020		December 31, 2019
	(In thousands)
Raw materials	$	29,937	$	25,547
Work in progress		17,842		2,690
Finished goods		162,372		122,826

Inventories	$	210,151	$	151,063

Inventories


	December 31, 2018		December 31, 2019
	(In thousands)
Raw materials	$	22,514	$	25,547
Work in progress		5,366		2,690
Finished goods		121,142		122,826

Inventories	$	149,022	$	151,063

Summary of Property and Equipment, Net

Property and Equipment, Net


	September 30, 2020			December 31, 2019
	(In thousands)
Manufacturing equipment	$	18,939		$	15,291
Computer equipment, software and office equipment		9,489			6,958
Furniture and fixtures		3,342			2,602
Leasehold improvements		3,951			3,544

Total property and equipment	$	35,721		$	28,395
Less: Accumulated depreciation and amortization		(20,317	)		(13,030	)

Property and equipment, net	$	15,404		$	15,365

Property and Equipment, Net


	December 31, 2018			December 31, 2019
	(In thousands)
Manufacturing equipment	$	11,917		$	15,291
Computer equipment, software and office equipment		4,417			6,958
Furniture and fixtures		875			2,602
Leasehold improvements		1,676			3,544

Total property and equipment	$	18,885		$	28,395
Less: Accumulated depreciation and amortization		(6,412	)		(13,030	)

Property and equipment, net	$	12,473		$	15,365

Summary of Other Liabilities and Accrued Expenses

Other Liabilities and Accrued Expenses


	September 30, 2020		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs	$	40,318	$	36,582
Accrued reserves for sales return		29,805		24,610
Accrued payroll and related expense		22,474		10,638
Income tax payable		20,929		8,524
Operating lease liabilities, current		8,883		—
Other		47,177		35,187

Other liabilities and accrued expenses	$	169,586	$	115,541

Other Liabilities and Accrued Expenses


	December 31, 2018		December 31, 2019
	(In thousands)
Accrued reserves for customer incentive programs⁽¹⁾	$	—	$	36,582
Accrued reserves for sales return⁽¹⁾		—		24,610
Accrued payroll and related expense		8,353		10,638
Deferred and unearned revenue		—		4,222
Income tax payable		3,573		8,524
Sales and use taxes and value-added tax liabilities		995		8,591
Lease liabilities, current		—		—
Warranty reserves		2,581		3,991
Deferred and contingent purchase consideration⁽²⁾⁽³⁾		10,448		2,397
Other		9,680		15,986

Other liabilities and accrued expenses	$	35,630	$	115,541

(1)

As of December 31, 2018, under Topic 605, reserves for certain customer incentive programs and the reserves for sales returns, on a net basis, were included within accounts receivable, net. As of December 31, 2019, under Topic 606, such balances are presented on a gross basis in other liabilities and accrued expenses in the combined consolidated balance sheet. Refer to Note 2, Summary of Significant Accounting policies—Recently Adopted Accounting Pronouncements: Adoption of ASC Topic 606, for detailed information on the impact on the balance sheet reclassifications from the adoption of Topic 606.

(2)	As of December 31, 2018, the deferred cash consideration of €9.0 million related to the Elgato acquisition, which was not contingent on any future conditions, was paid on January 3, 2019. Refer to note 5 for further details.

(3)	As of December 31, 2019, the estimated obligation for the Origin earn-out payment related to Origin’s 2019 standalone financial target of $2.4 million was fully paid in the second quarter of 2020.

Schedule of Changes in Warranty

Changes in our warranty obligations were as follows:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(in thousands)
Beginning of the period	$	5,005		$	2,776		$	3,991		$	2,581
Balance assumed from business combinations		—			223			—			223
Warranty provision related to products shipped		1,518			1,395			4,928			4,231
Deductions for warranty claims processed		(1,400	)		(1,338	)		(3,796	)		(3,979	)

End of period	$	5,123		$	3,056		$	5,123		$	3,056

Changes in warranty obligation, which are included as a component of accrued liabilities in the combined consolidated balance sheets, are as follows:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands)
Warranty obligation at beginning of period⁽¹⁾	$	2,570		$	2,581
Balance assumed from business combinations		167			595
Warranty provision related to products shipped		2,410			5,996
Deductions for warranty claims processed		(2,566	)		(5,181	)

Warranty obligation at end of period	$	2,581		$	3,991

(1)	The beginning balance for the year ended December 31, 2018 has been corrected for immaterial misstatements. Refer to Note 2 “Summary of Significant Accounting Policies—Corrections of Immaterial Errors” for more information.

Summary of Cash and Restricted Cash

Cash and Restricted Cash


	September 30, 2020		December 31, 2019
	(In thousands)
Cash	$	116,185	$	48,165
Restricted cash—short term		3,726		3,552
Restricted cash—noncurrent		230		230

Total cash and restricted cash	$	120,141	$	51,947

Debt (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of Carrying Value of First Lien and Second Lien Term Loan

The following table summarizes the carrying value of the First Lien Term Loan:


	September 30, 2020			December 31, 2019
	(In thousands)
Principal amount outstanding	$	376,938		$	467,332
Less: Debt discount, net of amortization		(2,623	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,225	)		(5,825	)

Carrying amount	$	370,090		$	457,657

The following table summarizes the carrying value of the Second Lien Term Loan:


	September 30, 2020		December 31, 2019
	(In thousands)
Principal amount outstanding	$	—	$	50,000
Less: Debt discount, net of amortization		—		(471	)
Less: Debt issuance costs, net of amortization		—		(1,374	)

Carrying amount	$	—	$	48,155

The following table summarizes the carrying value of the First Lien Term Loan:


	December 31, 2018			December 31, 2019

	(In thousands)
Principal amount outstanding	$	356,300		$	467,332
Less: Debt discount, net of amortization		(3,538	)		(3,850	)
Less: Debt issuance costs, net of amortization		(4,804	)		(5,825	)

Carrying amount	$	347,958		$	457,657

Effective Interest rate		7.4	%		6.8	%

The following table summarizes the carrying value of the Second Lien Term Loan:


	December 31, 2018			December 31, 2019

	(In thousands)
Principal amount outstanding	$	50,000		$	50,000
Less: Debt discount, net of amortization		(572	)		(471	)
Less: Debt issuance costs, net of amortization		(1,669	)		(1,374	)

Carrying amount	$	47,759		$	48,155

Effective Interest rate		11.9	%		11.4	%

Summary of Draws and Repayment of Revolver

The following table summarizes the draws and repayments of the Revolver:


	Year Ended December 31, 2018			Year Ended December 31, 2019

	(In thousands)
Beginning balance	$	—		$	27,000
Draws		364,300			475,300
Repayments		(337,300	)		(502,300	)

Ending balance	$	27,000		$	—

Summary of Interest Expense Recognized for First Lien and Second Lien

The following table summarizes the interest expense recognized for the First Lien and Second Lien:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	6,408	$	7,582	$	22,914	$	22,662
Contractual interest expense for Revolver		—		789		16		2,099
Amortization of debt discount		219		216		672		700
Amortization of debt issuance costs		489		514		1,401		1,583
Loss on debt extinguishment		2,864		—		3,256		—

Total interest expense recognized	$	9,980	$	9,101	$	28,259	$	27,044

The following table summarizes the interest expense recognized for the First Lien and Second Lien:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Contractual interest expense for First Lien and Second Lien Term Loan	$	27,395	$	29,757
Contractual interest expense for Revolver		1,500		2,758
Amortization of debt discount		1,046		946
Amortization of debt issuance costs		2,258		2,043
Loss on partial debt extinguishment		—		—

Total interest expense recognized	$	32,199	$	35,504

Summary of Estimated Future Principal Payments under Total Long-term Debt

The estimated future principal payments under our total long-term debt as of September 30, 2020 are as follows:


	Amounts
	(In thousands)
2020 (remaining three months)	$	—
2021		—
2022		—
2023		—
2024		376,938
Thereafter		—

Total debt	$	376,938
Less: Discount and debt issuance costs		(6,848	)

Total Debt, net of discount and debt issuance costs	$	370,090

Presented on the condensed combined consolidated balance sheet under:
Current portion of debt, net	$	—

Debt, net	$	370,090

The estimated future principal payments under the Company’s total long-term debt as of December 31, 2019 are as follows:


	Amounts
	(In thousands)

2020	$	4,771
2021		4,771
2022		4,771
2023		4,771
2024		448,248
Thereafter		50,000

Total debt	$	517,332

Less: Discount and debt issuance costs		(11,520	)
Less: Current portion of debt, net		(2,364	)

Debt, net	$	503,448

Leases (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Leases [Abstract]

Future Minimum Lease Payments Under Non-cancelable Operating Leases

Future minimum lease payments under non-cancelable operating leases as of December 31, 2019, as defined under the previous lease accounting guidance of ASC Topic 840, were as follows:


	Amounts
	(In thousands)
2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—

Total	$	18,621

Estimated future lease payments under all noncancelable operating leases with terms in excess of one year as of December 31, 2019 are as follows:


	Amounts
	(In thousands)

2020	$	7,525
2021		5,786
2022		2,701
2023		1,584
2024		1,025
Thereafter		—

Total	$	18,621

Summary of Components of Lease Expenses

The table below summarizes the components of lease expenses:


	Three Months Ended September 30, 2020		Nine months ended September 30, 2020
			(In thousands)
Operating lease expense	$	2,739	$	6,932
Variable lease expense		2,226		4,657

Total lease expense	$	4,965	$	11,589

Schedule of Future Undiscounted Cash Flows Related To Operating Lease Payments

Amounts of future undiscounted cash flows related to operating lease payments over the lease term included in the measurement of lease liabilities as of September 30, 2020 are as follows:


	Amounts
	(In thousands)
2020 (remaining three months)	$	2,310
2021		9,072
2022		6,372
2023		5,172
2024		3,999
Thereafter		1,987

Total future lease payments	$	28,912
Less: Imputed interest		(2,133	)

Present value of operating lease liabilities	$	26,779
Current portion of operating lease liabilities ⁽¹⁾	$	8,883
Long-term operating lease liabilities ⁽¹⁾	$	17,896

(1)	The current portion and long-term portion of operating lease liabilities are included in “other liabilities and accrued expenses” and “other liabilities, noncurrent”, respectively, on our condensed combined consolidated balance sheets.

Equity Incentive Plans and Stock-Based Compensation (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activities and Related Information

The following table summarizes the stock option activities and related information for the nine months ended September 30, 2020:


	Outstanding Stock Options			Weighted- Average Exercise Price Per Share		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance as of December 31, 2019		8,790,000		$	4.86		8.1	$	24,949
Granted		1,875,161			8.59
Exercised		(306,000	)		4.05
Forfeited/cancelled		(164,000	)		6.30

Balance as of September 30, 2020		10,195,161		$	5.55		7.9	$	67,698

Vested and exercisable as of September 30, 2020		4,045,117		$	4.31		7.2	$	31,534

The following table summarizes the Company’s stock option activities and related information for the periods presented:


	Outstanding Options			Weighted- Average Exercise Price		Weighted- Average Remaining Contract Term		Aggregate Intrinsic Value
						(In years)		(In thousands)
Balance, December 31, 2017		7,150,000		$	4.98		9.9	$	6,006
Options granted		737,500			7.23
Options exercised		(3,250	)		2.97
Options forfeited/cancelled		(181,250	)		4.80

Balance, December 31, 2018		7,703,000			4.18		8.9		19,615
Options granted		1,935,000			7.78
Options exercised		(34,000	)		3.63
Options forfeited/cancelled		(814,000	)		5.34

Balance, December 31, 2019		8,790,000			4.86		8.1		24,949

Exercisable, December 31, 2019		2,845,500		$	4.00		7.2	$	10,489

Summary of Stock-based Compensation Expense

The following table summarizes stock-based compensation expense by line item in the accompanying condensed combined consolidated statements of operations:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Cost of revenue	$	60	$	52	$	192	$	145
Sales, general and administrative		1,414		672		3,634		2,251
Product development		157		143		460		417

Total stock-based compensation expense	$	1,631	$	867	$	4,286	$	2,813

The Company recognized stock-based compensation in the accompanying combined consolidated statements of operations as follows:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Cost of revenue	$	162	$	197
Product development		407		567
Sales, general and administrative		2,182		3,084

Stock-based compensation	$	2,751	$	3,848

Summary of Valuation Assumptions of Fair Value of Stock Options on Date of Grant

We estimate the fair value of the stock options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
Weighted average grant date fair value of common stock (per share)	$	16.38		$	7.55		$	8.60		$	7.46
Expected term (years)		6.09			6.50			6.37			6.48
Expected volatility		41.7%-44.0	%		34.5%-34.9	%		35.8%-44.0	%		34.3%-34.9	%
Dividend yield		—			—			—			—
Range of risk-free interest rate		0.3%-0.4	%		1.4-1.9	%		0.3%-1.8	%		1.4%-2.6	%

The Company computed the fair value of the options on the date of grant using the Black-Scholes-Merton pricing model, with the following valuation assumptions:


	Year Ended December 31, 2018			Year Ended December 31, 2019

Weighted average grant date fair value per common stock	$	6.88		$	7.59
Weighted average expected term in years		6.48			6.48
Range of expected volatility		33.4%-35.0	%		34.3%-36.1	%
Weighted average expected dividend yield		—			—
Range of risk free interest rate		2.7%-3.1	%		1.4%-2.6	%

Summary of RSUs Activities and Related Information

The following table summarizes the RSUs activities and related information for the nine months ended September 30, 2020:


	Unvested RSUs			Weighted- Average Grant Date Fair Value Per Share
Balance as of December 31, 2019		—			—
Granted		17,647		$	17.00
Vested		(8,823	)		17.00

Balance as of September 30, 2020		8,824		$	17.00

Net Income (Loss) Per Share (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Income (Loss) Per Share


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands, except share and per share amounts)
Numerator
Net income (loss), basic and diluted	$	36,357	$	1,519	$	60,174	$	(14,406	)

Denominator
Weighted-average shares used to compute net income (loss) per share, basic		84,870,837		75,939,443		84,352,415		75,928,057
Effect of dilutive securities⁽¹⁾		5,213,112		1,944,311		3,146,104		—

Weighted-average shares used to compute net income (loss) per share, diluted		90,083,949		77,883,754		87,498,519		75,928,057

Net income (loss) per share:
Basic	$	0.43	$	0.02	$	0.71	$	(0.19	)

Diluted	$	0.40	$	0.02	$	0.69	$	(0.19	)

(1)	As a result of our net loss, potentially dilutive ordinary share equivalents of approximately 1.8 million options were excluded from the calculation of diluted net loss per share for the nine months ended September 30, 2019.


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands, except share and per share amounts)

Numerator
Net loss, basic and diluted	$	(13,720	)	$	(8,394	)

Denominator
Weighted-average shares used to compute net loss per share, basic		75,457,693			76,223,451
Effect of dilutive options⁽¹⁾		—			—

Weighted-average shares used to compute net loss per share, diluted		75,457,693			76,223,451

Net loss per share, basic	$	(0.18	)	$	(0.11	)

Net loss per share, diluted	$	(0.18	)	$	(0.11	)

(1)	As a result of the Company’s net loss, dilutive ordinary share equivalents of approximately 1.3 million and 1.9 million options were excluded from the calculation of diluted net loss per share for the years ended December 31, 2018 and 2019, respectively.

Weighted-Average Outstanding Securities Considered Anti-dilutive and Excluded from the Computation of Diluted Net Income (Loss) Per Share

The following table shows the weighted-average outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share:


	Year Ended December 31, 2018		Year Ended December 31, 2019

Options		2,647,008		1,673,618

Income Taxes (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income tax consists of the following:


	Year Ended December 31, 2018			Year Ended December 31, 2019
	(In thousands)
Domestic	$	(15,887	)	$	(18,407	)
Foreign operations		5,180			5,008

Loss before income tax	$	(10,707	)	$	(13,399	)

Schedule of Income Tax (Expense) Benefit

Income tax (expense) benefit consists of the following:


	Year ended December 31, 2018			Year ended December 31, 2019
	(In thousands)
United States federal taxes:
Current	$	(1,029	)	$	(2,177	)
Deferred		(209	)		5,948
State taxes:
Current		(113	)		(529	)
Deferred		(64	)		1,421
Foreign taxes:
Current		(4,888	)		(3,824	)
Deferred		3,290			4,166

Income tax (expense) benefit	$	(3,013	)	$	5,005

Reconciliation of Tax Computed Applying Statutory Deferral Income Tax Rate

The income tax (expense) benefit differs from the amount which would result by applying the applicable statutory deferral rate to income before income taxes as follows:


	Year ended December 31, 2018			Year ended December 31, 2019
	(In thousands)
Provision at federal statutory rate	$	1,581		$	2,814
State taxes		423			911
Change in valuation allowance		(5,411	)		719
Expired capital losses and tax credits		368			—
Foreign rate differential		439			300
Net operating loss		—			2,557
Effect of change in tax rate on deferred tax assets		(245	)		(469	)
Tax on undistributed foreign earnings		—			(1,520	)
Other		(168	)		(307	)

Income tax (expense) benefit	$	(3,013	)	$	5,005

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities comprise the following:


	As of December 31, 2018			As of December 31, 2019
	(In thousands)
Deferred tax assets:
Accrued expenses and reserves	$	3,368		$	12,516
Equity-based compensation		825			1,720
NOL and capital losses		12,917			14,461
Interest expense carryover		1,613			3,628
Tax credits		2,124			1,339
Cumulative transaction adjustment		300			355

Total deferred tax assets		21,147			34,019
Less valuation allowance		(13,335	)		(12,615	)
Deferred tax liabilities:
Intangible assets		(42,027	)		(53,382	)
Other		(31	)		(195	)

Net deferred tax liabilities	$	(34,246	)	$	(32,173	)

Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates

The table below presents our income (loss) before income taxes, income tax (expense) benefit and effective income tax rates for all periods presented:


	Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019
	(In thousands)
Income (loss) before income taxes	$	39,574		$	1,444		$	70,323		$	(19,051	)
Income tax (expense) benefit		(3,217	)		75			(10,149	)		4,645
Effective income tax rate		8.1	%		5.2	%		14.4	%		24.4	%

Segment and Geographic Information (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2020

Dec. 31, 2019

Segment Reporting [Abstract]

Summary of Financial Information for Each Reportable Segment

The table below summarizes the financial information for each reportable segment:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	161,555	$	70,606	$	347,531	$	200,084
Gaming Components and Systems		295,548		213,766		798,497		570,535

Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

Gross Profit
Gaming and Creator Peripherals	$	60,010	$	19,948	$	120,886	$	58,234
Gaming Components and Systems		67,934		40,279		190,744		95,600

Total gross profit	$	127,944	$	60,227	$	311,630	$	153,834

Financial information for each reportable segment was as follows:


	Year Ended December 31, 2018⁽¹⁾		Year Ended December 31, 2019

	(In thousands)
Net revenue
Gaming and Creator Peripherals	$	233,536	$	294,141
Gaming Components and Systems		704,017		803,033

Total net revenue	$	937,553	$	1,097,174

Gross Profit
Gaming and Creator Peripherals	$	73,489	$	81,363
Gaming Components and Systems		119,206		142,924

Total gross profit	$	192,695	$	224,287

(1)	Reclassified to conform with 2019 presentation.

Summary of Net Revenue By Geographic Region

The following table summarizes our net revenue by geographic region based on the location of the customer:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Net revenue
Americas	$	216,982	$	108,318	$	517,165	$	315,200
Europe and Middle East		162,615		114,118		412,349		287,502
Asia Pacific		77,506		61,936		216,514		167,917

Total net revenue	$	457,103	$	284,372	$	1,146,028	$	770,619

The following table reflects revenue by geographic area by customer location:


	Year Ended December 31, 2018		Year Ended December 31, 2019

	(In thousands)
Net revenue
United States	$	329,179	$	386,944
Other Americas		57,579		73,312
Europe and Middle East		348,798		406,435
Asia Pacific		201,997		230,483

Total net revenue	$	937,553	$	1,097,174

Summary of Property And Equipment, Net by Country

The following table summarizes property and equipment, net by country:


	September 30, 2020		December 31, 2019
	(In thousands)
United States	$	6,532	$	6,400
China		5,039		4,998
Taiwan		2,668		2,270
Other countries		1,165		1,697

Total property and equipment, net	$	15,404	$	15,365

Long-lived assets are comprised primarily of property and equipment, net. The following table presents a summary of property and equipment, net by country:


	December 31, 2018		December 31, 2019

	(In thousands)
United States	$	4,394	$	6,400
China		6,363		4,998
Taiwan		983		2,270
Other countries		733		1,697

Property and equipment, net	$	12,473	$	15,365

Description of Business and Basis of Presentation - Additional Information (Detail) $ / shares in Units, $ in Millions				9 Months Ended	12 Months Ended
	Sep. 26, 2020 USD ($) shares	Sep. 25, 2020 USD ($) $ / shares shares	Sep. 15, 2020 shares	Sep. 30, 2020 Segment shares	Dec. 31, 2019 USD ($) Segment shares	Dec. 31, 2018 USD ($) Segment shares
Description Of Business And Basis Of Presentation [Line Items]
Stock split ratio			3.485
Common stock, shares outstanding			84,405,366	91,914,000	84,079,366	75,896,147
Options outstanding to purchase common stock			10,029,388
Number of reportable segments \| Segment				2	2	3
Deferred offering costs \| $	$ 11.8				$ 5.8	$ 5.3
Initial Public Offering
Description Of Business And Basis Of Presentation [Line Items]
Number of shares sold		7,500,000
Sale of stock, price per share \| $ / shares		$ 17.00
Proceeds from issuance of initial public offering, net \| $		$ 118.6
Stockholders sale of common stock shares		6,500,000
Stockholders sale of common stock shares price per share \| $ / shares		$ 17.00
Underwriters' Option
Description Of Business And Basis Of Presentation [Line Items]
Stockholders sale of common stock shares	1,135,375

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Sep. 26, 2020	Jan. 01, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Correction of error, retained earnings increase							$ 3,700,000
Total restricted cash deposits					$ 3,800,000	$ 2,300,000
Refund liability					15,100,000
Impairment charges					$ 0
Warranty description					All of the Company's products are covered by warranty to be free from defects in material and workmanship for periods ranging from six months to five years, and for life-time for memory products.
Deferred offering costs					$ 5,800,000	5,300,000		$ 11,800,000
Revenue, performance obligation, payment terms					The Company normally requires payments from customers within 30 to 90 days from invoice date. The Company does not generally modify payment terms on existing receivables. The Company's contracts with customers typically do not include significant financing components as the period between the satisfaction of the performance obligations and timing of payment are generally within one year
Advertising and promotion expenses	$ 4,100,000	$ 2,600,000	$ 12,300,000	$ 7,400,000	$ 11,300,000	8,700,000
Foreign currency remeasurement gains (losses)					(26,000)	957,000
Deferred revenue					3,300,000
Unearned revenue					1,300,000
ROU assets									$ 17,700,000
Lease liabilities	26,779,000		26,779,000						$ 17,900,000
Prepaid inventory	2,100,000		2,100,000
Accrued liabilities	$ 2,400,000		$ 2,400,000
Other (Expense) Income
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Foreign currency remeasurement gains (losses)					1,400,000	(400,000)
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Annual gross revenue					1,070,000,000
ROU assets					18,000,000
Lease liabilities					18,000,000
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
ROU assets					19,000,000
Lease liabilities					$ 19,000,000
Foreign Exchange Forward Contract \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative maturity					3 months
Foreign Exchange Forward Contract \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative maturity					4 months
Interest Rate Cap
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative maturity					2 years
Pension Plan
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Contributions					$ 1,100,000	900,000
Accounts Receivable
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales return reserves						9,400,000
Customer incentive programs						$ 17,100,000
Prepaid Expenses and Other Current Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales return asset					$ 5,700,000
ASU 2016-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2017-04
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2018-13
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted	true		true
Change in accounting principle, accounting standards update, adoption date	Jan. 01, 2020		Jan. 01, 2020
Change in accounting principle, accounting standards update, immaterial effect	true		true
ASU 2015-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2018
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2015-17
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2018
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2018
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2016-16
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2019
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2017-01
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2019
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2017-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2018
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2018-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2019
Change in accounting principle, accounting standards update, immaterial effect					true
ASU 2018-15
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2019
Change in accounting principle, accounting standards update, immaterial effect					true
Accounting Standards Update 2019-07
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Change in accounting principle, accounting standards update, adopted					true
Change in accounting principle, accounting standards update, adoption date					Jan. 01, 2019
Change in accounting principle, accounting standards update, immaterial effect					true

Summary of Significant Accounting Policies - Reconciliation of Cash and Restricted Cash (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Accounting Policies [Abstract]
Cash	$ 116,185	$ 48,165		$ 25,639
Restricted cash-short term	3,726	3,552		2,281
Restricted cash-noncurrent	230	230
Total cash and restricted cash	$ 120,141	$ 51,947	$ 12,129	$ 27,920	$ 19,030

Summary of Significant Accounting Policies - Schedules of Concentration of Risk (Detail)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Accounts Receivable \| Customer A
Concentration Risk [Line Items]
Concentration risk percentage	34.00%	35.00%
Accounts Receivable \| Customer B
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	13.00%
Revenue Benchmark \| Customer A
Concentration Risk [Line Items]
Concentration risk percentage	25.00%	22.00%

Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment Estimated Useful Lives (Detail)	12 Months Ended
	Dec. 31, 2019
Manufacturing Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Manufacturing Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Computer Equipment Software And Office Equipment \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Computer Equipment Software And Office Equipment \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Furniture and Fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated useful lives	2 years
Furniture and Fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated useful lives	7 years
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Estimated useful lives	Shorter of lease term or the useful lives of the improvements

Summary of Significant Accounting Policies - Schedule of Cumulative Effect of Changes in Combined Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Assets:
Accounts receivable, net	$ 259,542	$ 202,334		$ 122,042
Prepaid expenses and other current assets	38,014	24,696		17,298
Deferred Tax Assets		1,646
Liability and Stockholders' Equity:
Other liabilities and accrued expenses	169,586	115,541		35,630
Accumulated deficit	$ (45,856)	(106,030)		(93,161)
Topic 606
Assets:
Accounts receivable, net				122,042
Prepaid expenses and other current assets				17,298
Deferred Tax Assets				445
Liability and Stockholders' Equity:
Income Tax Payable				3,572
Other liabilities and accrued expenses				32,058
Accumulated deficit				$ (93,161)
Topic 606 \| Cumulative Effect of Adoption of New Accounting
Assets:
Accounts receivable, net		26,527
Prepaid expenses and other current assets		5,674
Deferred Tax Assets		746
Liability and Stockholders' Equity:
Income Tax Payable		(333)
Other liabilities and accrued expenses		36,966
Accumulated deficit		$ (3,686)
Topic 606 \| Cumulative Effect, Period of Adoption, Adjusted Balance
Assets:
Accounts receivable, net			$ 148,569
Prepaid expenses and other current assets			22,972
Deferred Tax Assets			1,191
Liability and Stockholders' Equity:
Income Tax Payable			3,239
Other liabilities and accrued expenses			69,024
Accumulated deficit			$ (96,847)

Summary of Significant Accounting Policies - Summarize Impact of Adopting Topic 606 on Financial Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2017
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619	$ 1,097,174	$ 937,553
Assets:
Accounts receivable, net	259,542		259,542		202,334	122,042
Prepaid and other current assets	38,014		38,014		24,696	17,298
Deferred Tax Assets					1,646
Liabilities and Stockholders' Equity
Income tax payable					8,524
Other liabilities and accrued expenses					107,017
Total stockholders' equity	$ 388,552	$ 147,216	$ 388,552	$ 147,216	216,775	$ 162,702	$ 240,506	$ 143,513	$ 254,661
Calculated under Revenue Guidance in Effect before Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue					1,098,018
Assets:
Accounts receivable, net					157,934
Prepaid and other current assets					13,514
Deferred Tax Assets					900
Liabilities and Stockholders' Equity
Income tax payable					8,857
Other liabilities and accrued expenses					45,825
Total stockholders' equity					221,306
Difference between Revenue Guidance in Effect before and after Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Net revenue					(844)
Assets:
Accounts receivable, net					44,400
Prepaid and other current assets					11,182
Deferred Tax Assets					746
Liabilities and Stockholders' Equity
Income tax payable					(333)
Other liabilities and accrued expenses					61,192
Total stockholders' equity					$ (4,531)

Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Detail) - Fair Value Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Liabilities:
Liabilities	$ 5,584	$ 7,348	$ 10,579
Assets:
Assets	133
Level 2
Liabilities:
Liabilities	378	335	131
Assets:
Assets	133
Level 3
Liabilities:
Liabilities	5,206	7,013	10,448
Contingent Consideration Business Acquisition Origin
Liabilities:
Liabilities	2,078	3,964
Contingent Consideration Business Acquisition Origin \| Level 3
Liabilities:
Liabilities	2,078	3,964
Contingent Consideration Business Acquisition Immaterial
Liabilities:
Liabilities	9
Contingent Consideration Business Acquisition Immaterial \| Level 3
Liabilities:
Liabilities	9
Deferred Cash Consideration Business Acquisition SCUF
Liabilities:
Liabilities	1,638	1,638
Deferred Cash Consideration Business Acquisition SCUF \| Level 3
Liabilities:
Liabilities	1,638	1,638
Deferred Cash Consideration Business Acquisition Origin
Liabilities:
Liabilities	1,481	1,411
Deferred Cash Consideration Business Acquisition Origin \| Level 3
Liabilities:
Liabilities	1,481	1,411
Deferred Cash Consideration in Connection With a Business Acquisition-Elgato
Liabilities:
Liabilities			10,448
Deferred Cash Consideration in Connection With a Business Acquisition-Elgato \| Level 3
Liabilities:
Liabilities			10,448
Interest Rate Contract
Assets:
Assets	45
Interest Rate Contract \| Level 2
Assets:
Assets	45
Foreign Exchange Forward Contract
Liabilities:
Liabilities	378	335	131
Assets:
Assets	88
Foreign Exchange Forward Contract \| Level 2
Liabilities:
Liabilities	378	$ 335	$ 131
Assets:
Assets	$ 88

Fair Value Measurement - Summary of Financial Assets and Liabilities that Measured at Fair Value (Parenthetical) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Sep. 30, 2020	Apr. 30, 2020	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Earn out liability			$ 2.4
Pre-acquisition sales tax liabilities		$ 0.3
Measure of Change in Fair Value \| Sales, General and Administrative
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Reduction in fair value re measurement	$ 0.6
Revolver \| Discount Rate \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value discount rate	6.50%	6.50%		6.60%

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Notional principal amount	$ 465,000,000		$ 465,000,000
Derivative, maturity date			Jun. 30, 2022
Net loss for change in fair value of interest rate contracts	55,000		$ 500,000
Designated as Hedging Instruments
Derivative, amount of hedged item					$ 0	$ 0
Other (Expense) Income
Fair value gain (loss) recognized	(1,100,000)	$ 900,000	(1,200,000)	$ 500,000	(200,000)	100,000
Foreign Exchange Forward Contract
Notional principal amount	21,500,000		21,500,000		$ 18,300,000	$ 8,000,000
Interest Rate Cap
Notional principal amount	$ 500,000		$ 500,000

Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands					1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Aug. 31, 2020	Dec. 19, 2019	Jul. 22, 2019	Jul. 02, 2018	Apr. 30, 2019	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Jul. 23, 2019	Jun. 02, 2018	Dec. 31, 2017
Date of acquisition	Aug. 31, 2020
Purchase consideration	$ 1,000
Purchase consideration paid in cash	800
Goodwill	200					$ 311,573	$ 312,750		$ 311,573		$ 312,750	$ 226,679			$ 203,122
Sales, general and administrative						65,321		$ 39,811	175,877	$ 115,992	163,033	138,915
Acquisition related costs						$ 1,100		$ 300	$ 800	$ 1,400	2,000	1,500
Purchase consideration, additional cash earn-out on achievement of net revenue targets	200						2,397				$ 2,397	$ 10,448
Acquisition of intangible assets	700
Acquisition of accounts receivable	$ 100
Weighted-average estimated useful life of acquired intangibles	3 years 1 month 6 days										7 years 8 months 12 days	8 years 4 months 24 days
SCUF Acquisition
Date of acquisition		Dec. 19, 2019
Percentage of equity interest acquired		100.00%
Purchase consideration		$ 137,800
Purchase consideration paid in cash		128,200
Purchase consideration paid in equity		$ 8,000
Purchase consideration paid in equity units		2,110,818
Purchase consideration paid in equity shares		1,055,408
Contingent cash consideration relating to finalization of pre-acquisition of tax liabilities		$ 1,600
Revenue											$ 6,400
Net loss											(1,700)
Goodwill		73,665					72,642				72,642
Inventory adjustment recognized in cost of revenue		2,000
Purchase consideration		136,300
Acquisition of intangible assets		71,890
Acquisition of accounts receivable		4,587
Measurement period adjustment, reduction in purchase price		1,500
Measurement period adjustment, reduction in inventory		500
Measurement period adjustment, reduction in goodwill		1,000
Contingent cash consideration		1,500
SCUF Acquisition \| Previously Reported
Goodwill		73,665
SCUF Acquisition \| Cost of Revenue
Inventory adjustment recognized in cost of revenue		$ 1,500
Origin Acquisition
Purchase consideration			$ 13,800
Purchase consideration paid in cash			5,500
Purchase consideration paid in equity			$ 2,000
Purchase consideration paid in equity units			533,333
Purchase consideration paid in equity shares			266,667
Contingent cash consideration relating to finalization of pre-acquisition of tax liabilities			$ 300
Goodwill			12,270
Purchase consideration			13,500
Deferred cash consideration payable			1,400
Additional cash earn-out on achievement of targets			4,600				4,000				$ 4,000		$ 4,600
Sales, general and administrative							$ 600
Acquisition of intangible assets			1,000
Acquisition of accounts receivable			1,379
Measurement period adjustment, reduction in purchase price			200
Measurement period adjustment, reduction in goodwill			100
Measurement period adjustment, reduction in other liabilities and accrued expenses			$ 300
Contingent earn-out liability paid					$ 2,400
Elgato Acquisition
Purchase consideration				$ 46,600								$ 9,000
Purchase consideration paid in cash				30,200
Purchase consideration paid in equity				$ 6,200
Purchase consideration paid in equity units				1,736,521
Purchase consideration paid in equity shares				868,260
Revenue												25,400
Net loss												$ 11,000
Goodwill				$ 23,487										$ 23,487
Deferred cash consideration payable				10,200
Acquisition of intangible assets				$ 19,342

Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Aug. 31, 2020	Dec. 31, 2019	Dec. 19, 2019	Jul. 22, 2019	Dec. 31, 2018	Jul. 02, 2018	Jun. 02, 2018	Dec. 31, 2017
Assets acquired:
Accounts receivable		$ 100
Identifiable intangible assets		700
Liabilities assumed:
Goodwill	$ 311,573	$ 200	$ 312,750			$ 226,679			$ 203,122
SCUF Acquisition
Assets acquired:
Cash				$ 6,947
Accounts receivable				4,587
Inventories				13,307
Prepaid and other assets				1,377
Identifiable intangible assets				71,890
Property and equipment				2,927
Other assets				40
Liabilities assumed:
Accounts payable				(9,182)
Sales tax payable				(5,533)
Deferred revenue				(3,752)
Other current liabilities and accrued expenses				(8,416)
Deferred tax liabilities				(10,015)
Net identifiable assets acquired				64,177
Goodwill			$ 72,642	73,665
Net assets acquired				137,842
SCUF Acquisition \| Preliminary Purchase Allocation
Assets acquired:
Cash				6,947
Accounts receivable				4,587
Inventories				12,800
Prepaid and other assets				1,377
Identifiable intangible assets				71,890
Property and equipment				2,927
Other assets				40
Liabilities assumed:
Accounts payable				(9,182)
Sales tax payable				(5,533)
Deferred revenue				(3,752)
Other current liabilities and accrued expenses				(8,416)
Deferred tax liabilities				(10,015)
Net identifiable assets acquired				63,670
Goodwill				72,642
Net assets acquired				$ 136,312
Origin Acquisition
Assets acquired:
Cash					$ 376
Accounts receivable					1,379
Inventories					4,445
Prepaid and other assets					309
Identifiable intangible assets					1,000
Property and equipment					140
Liabilities assumed:
Accounts payable					(2,670)
Other current liabilities and accrued expenses					(3,033)
Other liabilities, noncurrent					(447)
Net identifiable assets acquired					1,499
Goodwill					12,270
Net assets acquired					13,769
Origin Acquisition \| Preliminary Purchase Allocation
Assets acquired:
Cash					376
Accounts receivable					1,379
Inventories					4,445
Prepaid and other assets					309
Identifiable intangible assets					1,000
Property and equipment					140
Liabilities assumed:
Accounts payable					(2,670)
Other current liabilities and accrued expenses					(3,384)
Other liabilities, noncurrent					(447)
Net identifiable assets acquired					1,148
Goodwill					12,353
Net assets acquired					$ 13,501
Elgato Acquisition
Assets acquired:
Inventories							$ 4,283
Prepaid and other assets							548
Identifiable intangible assets							19,342
Liabilities assumed:
Sales return reserves							(500)
Other current liabilities and accrued expenses							(540)
Net identifiable assets acquired							23,133
Goodwill							23,487	$ 23,487
Net assets acquired							$ 46,620

Business Combinations - Summary of Components of Identifiable Assets Acquired and Estimated Useful Lives (Detail) - USD ($) $ in Thousands				12 Months Ended
	Aug. 31, 2020	Dec. 19, 2019	Jul. 02, 2018	Dec. 31, 2019	Dec. 31, 2018
Acquisition of intangible assets	$ 700
Weighted-average estimated useful life of acquired intangibles	3 years 1 month 6 days			7 years 8 months 12 days	8 years 4 months 24 days
SCUF Acquisition
Acquisition of intangible assets		$ 71,890
Elgato Acquisition
Acquisition of intangible assets			$ 19,342
Patents
Weighted-average estimated useful life of acquired intangibles				7 years 10 months 24 days
Patents \| SCUF Acquisition
Acquisition of intangible assets		$ 30,500
Weighted-average estimated useful life of acquired intangibles		8 years
Patents \| Elgato Acquisition
Acquisition of intangible assets			$ 10,769
Weighted-average estimated useful life of acquired intangibles			5 years
Developed Technology Rights
Weighted-average estimated useful life of acquired intangibles				3 years 4 months 24 days	3 years 3 months 18 days
Developed Technology Rights \| SCUF Acquisition
Acquisition of intangible assets		$ 18,600
Weighted-average estimated useful life of acquired intangibles		6 years
Developed Technology Rights \| Elgato Acquisition
Acquisition of intangible assets			$ 748
Weighted-average estimated useful life of acquired intangibles			5 years
Customer Relationships
Weighted-average estimated useful life of acquired intangibles				7 years 7 months 6 days	8 years 8 months 12 days
Customer Relationships \| SCUF Acquisition
Acquisition of intangible assets		$ 590
Weighted-average estimated useful life of acquired intangibles		5 years
Trade Names
Weighted-average estimated useful life of acquired intangibles				14 years 7 months 6 days	14 years 6 months
Trade Names \| SCUF Acquisition
Acquisition of intangible assets		$ 22,200
Weighted-average estimated useful life of acquired intangibles		15 years
Trade Names \| Elgato Acquisition
Acquisition of intangible assets			$ 7,825
Weighted-average estimated useful life of acquired intangibles			15 years

Business Combinations - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail)			12 Months Ended
	Aug. 31, 2020	Jul. 22, 2019	Dec. 31, 2019	Dec. 31, 2018
Weighted-average estimated useful life of acquired intangibles	3 years 1 month 6 days		7 years 8 months 12 days	8 years 4 months 24 days
Customer Relationships
Weighted-average estimated useful life of acquired intangibles			7 years 7 months 6 days	8 years 8 months 12 days
Origin Acquisition \| Customer Relationships
Weighted-average estimated useful life of acquired intangibles		6 years
Preliminary Purchase Allocation \| Origin Acquisition \| Customer Relationships
Weighted-average estimated useful life of acquired intangibles		6 years

Business Combinations - Business Acquisition, Pro Forma Financial Information (Detail) - SCUF Acquisition - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Net revenue	$ 299,130	$ 815,432	$ 1,165,502	$ 1,013,761
Net loss	$ (3,101)	$ (25,040)	$ (24,598)	$ (19,362)

Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($) Segment	Dec. 31, 2018 USD ($)
Number of reporting units \| Segment			4
Increase in gross amount of intangible assets as result of immaterial acquisition	$ 0.7	$ 0.7
Elgato Acquisition
Increase in gross amount of intangible assets as result of immaterial acquisition				$ 19.3
Origin Acquisition
Increase in gross amount of intangible assets as result of immaterial acquisition			$ 1.0
SCUF Acquisition
Increase in gross amount of intangible assets as result of immaterial acquisition			$ 72.2

Goodwill and Intangible Assets - Summary of Changes in Carrying Amount of Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Balance	$ 312,750	$ 226,679	$ 203,122
Addition from business acquisition	185	86,095	23,631
Measurement period adjustments	(1,070)
Effect of foreign currency exchange rates	(292)	(24)	(74)
Balance	311,573	312,750	226,679
Gaming Components and Systems
Balance	145,375	133,063	133,045
Addition from business acquisition		12,317	57
Measurement period adjustments	(47)
Effect of foreign currency exchange rates	284	(5)	(39)
Balance	145,612	145,375	133,063
Gaming and Creator Peripherals
Balance	167,375	93,616	70,077
Addition from business acquisition	185	73,778	23,574
Measurement period adjustments	(1,023)
Effect of foreign currency exchange rates	(576)	(19)	(35)
Balance	$ 165,961	$ 167,375	$ 93,616

Goodwill and Intangible Assets - Summary of Intangible Assets, Net (Detail) - USD ($) $ in Thousands		12 Months Ended
	Aug. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2020
Indefinite-life intangibles, Gross and Net Carrying Amount				$ 35,430
Weighted Average Remaining Amortization Period in Years	3 years 1 month 6 days	7 years 8 months 12 days	8 years 4 months 24 days
Total intangible assets, Gross Carrying Amount		$ 362,216	$ 288,878	361,996
Total finite-life intangibles, Gross Carrying Amount		326,786	252,957	326,566
Total finite-life intangibles, Accumulated Amortization		71,189	41,066	96,550
Total finite-life intangibles, Net Carrying Amount		255,597	211,891	230,016
Total intangible assets, Net Carrying Amount		$ 291,027	247,812	265,446
Trade Names
Indefinite-life intangibles, Gross and Net Carrying Amount			35,430
In Process Research and Development
Indefinite-life intangibles, Gross and Net Carrying Amount			$ 491
Developed Technology Rights
Weighted Average Useful Life		4 years 6 months	3 years 3 months 18 days
Weighted Average Remaining Amortization Period in Years		3 years 4 months 24 days	3 years 3 months 18 days
Total finite-life intangibles, Gross Carrying Amount		$ 44,243	$ 25,153	44,883
Total finite-life intangibles, Accumulated Amortization		17,536	10,578	21,606
Total finite-life intangibles, Net Carrying Amount		$ 26,707	$ 14,575	23,277
Trade Names
Weighted Average Useful Life		15 years	15 years
Weighted Average Remaining Amortization Period in Years		14 years 7 months 6 days	14 years 6 months
Total finite-life intangibles, Gross Carrying Amount		$ 30,253	$ 7,825	30,128
Total finite-life intangibles, Accumulated Amortization		833	261	2,388
Total finite-life intangibles, Net Carrying Amount		$ 29,420	$ 7,564	27,740
Customer Relationships
Weighted Average Useful Life		10 years	10 years
Weighted Average Remaining Amortization Period in Years		7 years 7 months 6 days	8 years 8 months 12 days
Total finite-life intangibles, Gross Carrying Amount		$ 218,459	$ 216,869	218,456
Total finite-life intangibles, Accumulated Amortization		50,916	29,153	67,397
Total finite-life intangibles, Net Carrying Amount		$ 167,543	$ 187,716	151,059
Patents
Weighted Average Useful Life		7 years 10 months 24 days
Weighted Average Remaining Amortization Period in Years		7 years 10 months 24 days
Total finite-life intangibles, Gross Carrying Amount		$ 30,721		29,989
Total finite-life intangibles, Accumulated Amortization		130		3,007
Total finite-life intangibles, Net Carrying Amount		$ 30,591		26,982
Noncompete Agreements
Weighted Average Useful Life		4 years 4 months 24 days	4 years 4 months 24 days
Weighted Average Remaining Amortization Period in Years		2 years 7 months 6 days	3 years 4 months 24 days
Total finite-life intangibles, Gross Carrying Amount		$ 3,110	$ 3,110	3,110
Total finite-life intangibles, Accumulated Amortization		1,774	1,074	2,152
Total finite-life intangibles, Net Carrying Amount		$ 1,336	$ 2,036	$ 958

Goodwill and Intangible Assets - Summary of Recognized Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Amortization of intangible assets	$ 25,344	$ 23,551	$ 30,123	$ 30,893
Cost of Revenue
Amortization of intangible assets			130
Product Development
Amortization of intangible assets			6,958	8,147
Sales, General and Administrative
Amortization of intangible assets			$ 23,035	$ 22,746

Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense of Intangible Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020 (remaining three months)	$ 8,484
2020	33,938	$ 33,832
2021	33,761	33,832
2022	32,359	33,655
2023	30,913	32,324
2024		31,021
Thereafter	90,561
Thereafter		90,933
Total	$ 230,016	$ 255,597	$ 211,891

Balance Sheet Components - Summary of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Sep. 30, 2020	Dec. 31, 2019
Balance Sheet Related Disclosures [Abstract]
Accounts receivable	$ 148,917	$ 260,476	$ 202,546
Allowance for doubtful accounts	(349)	(934)	(212)
Rebates	(17,119)
Sales return reserves	(9,407)
Accounts receivable, net	$ 122,042	$ 259,542	$ 202,334

Balance Sheet Components - Summary of Inventories (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 29,937	$ 25,547	$ 22,514
Work in progress	17,842	2,690	5,366
Finished goods	162,372	122,826	121,142
Inventories	$ 210,151	$ 151,063	$ 149,022

Balance Sheet Components - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Computer equipment, software and office equipment	$ 35,721	$ 28,395	$ 18,885
Less: Accumulated depreciation and amortization	(20,317)	(13,030)	(6,412)
Property and equipment, net	15,404	15,365	12,473
Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Computer equipment, software and office equipment	18,939	15,291	11,917
Computer Equipment Software And Office Equipment
Property, Plant and Equipment [Line Items]
Computer equipment, software and office equipment	9,489	6,958	4,417
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Computer equipment, software and office equipment	3,342	2,602	875
Leasehold Improvements
Property, Plant and Equipment [Line Items]
Computer equipment, software and office equipment	$ 3,951	$ 3,544	$ 1,676

Balance Sheet Components - Summary of Other Liabilities and Accrued Expenses (Detail) - USD ($)
$ in Thousands

Sep. 30, 2020

Aug. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Accrued reserves for customer incentive programs

$ 40,318

$ 36,582

Accrued reserves for sales return

29,805

24,610

Accrued payroll and related expense

22,474

10,638

$ 8,353

Deferred and unearned revenue

4,222

Income tax payable

20,929

8,524

3,573

Sales and use taxes and value-added tax liabilities

8,591

995

Operating lease liabilities, current

^[1]

8,883

Lease liabilities, current

Warranty reserves

3,991

2,581

Deferred and contingent purchase consideration

$ 200

2,397

10,448

Other

47,177

15,986

9,680

Other liabilities and accrued expenses

$ 169,586

115,541

$ 35,630

Previously Reported

Other

$ 35,187

[1]	The current portion and long-term portion of operating lease liabilities are included in "other liabilities and accrued expenses" and "other liabilities, noncurrent", respectively, on our condensed combined consolidated balance sheets.

Balance Sheet Components - Summary of Other Liabilities and Accrued Expenses (Parenthetical) (Detail) - USD ($) $ in Millions			12 Months Ended
	Aug. 31, 2020	Jul. 02, 2018	Dec. 31, 2019	Dec. 31, 2018
(2) As of December 31, 2018, the deferred cash consideration of €9.0 million	$ 1.0
Origin earn-out payment target			$ 2.4
Elgato Acquisition
(2) As of December 31, 2018, the deferred cash consideration of €9.0 million		$ 46.6		$ 9.0

Balance Sheet Components - Summary of Warranty Reserve (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Balance Sheet Related Disclosures [Abstract]
Warranty obligation at beginning of period	$ 2,581	$ 2,570
Balance assumed from business combinations	595	167
Warranty provision related to products shipped	5,996	2,410
Deductions for warranty claims processed	(5,181)	(2,566)
Warranty obligation at end of period	$ 3,991	$ 2,581

Debt - Additional Information (Detail) - USD ($)			1 Months Ended			3 Months Ended		9 Months Ended		12 Months Ended
Debt - Additional Information (Detail) - USD ($)	Oct. 31, 2017	Aug. 28, 2017	Sep. 30, 2020	Apr. 30, 2019	Oct. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
Interest expense						$ 9,980,000	$ 9,101,000	$ 28,259,000	$ 27,044,000	$ 35,504,000	$ 32,199,000
Amortization of issuance costs						489,000	514,000	1,401,000	1,583,000	2,043,000	2,258,000
Amortization of debt issuance costs and debt discounts								$ 1,990,000	2,281,000	$ 2,989,000	$ 3,420,000
First Lien Term Loan
Debt Instrument [Line Items]
Line of credit		$ 235,000,000					$ 115,000,000		$ 115,000,000			$ 115,000,000		$ 10,000,000
Debt instrument, maturity date		Aug. 28, 2024
Federal funds effective rate		0.50%								6.80%	7.40%
Debt instrument, description of variable rate basis								One month LIBOR plus		One month LIBOR plus
Multiplied percentage on loan repayment					50.00%
Debt issuance costs										$ 2,300,000	$ 1,000,000
Interest expense										26,300,000	24,400,000
Amortization of debt issuance costs and debt discounts										$ 2,100,000	2,500,000
Minimum mandatory repayments of term loans			$ 55,800,000
Voluntary repayments of term loans			$ 30,800,000
Repayments of term loans				$ 2,600,000
First Lien Term Loan \| LIBOR
Debt Instrument [Line Items]
Debt instrument, variable rate		1.00%
First Lien Term Loan \| 2%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate		3.50%
First Lien Term Loan \| 1%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate		4.50%
First Lien Term Loan \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate					2.75%
First Lien Term Loan \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate					3.25%
First Lien Term Loan \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate					3.75%
First Lien Term Loan \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate					4.25%
Revolver
Debt Instrument [Line Items]
Line of credit		$ 50,000,000
Debt instrument, maturity date		Aug. 28, 2022
Federal funds effective rate		0.50%
Debt instrument, description of variable rate basis								One month LIBOR plus		One month LIBOR plus
Debt issuance costs										$ 150,000	150,000		$ 2,000,000
Debt issuance costs, net of amortization										1,100,000	1,400,000
Interest expense										3,300,000	2,000,000
Amortization of issuance costs										$ 500,000	$ 500,000
Revolver \| LIBOR
Debt Instrument [Line Items]
Debt instrument, variable rate		1.00%
Revolver \| 2%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate		3.50%
Revolver \| 1%, Plus Margin Rate
Debt Instrument [Line Items]
Debt instrument, variable rate		4.50%
Revolver \| Base Rate \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate					2.75%
Revolver \| Base Rate \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate					3.25%
Revolver \| Eurodollar \| Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate					3.75%
Revolver \| Eurodollar \| Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate					4.25%
Second Lien Term Loan
Debt Instrument [Line Items]
Line of credit		$ 65,000,000
Debt instrument, maturity date		Aug. 28, 2025
Federal funds effective rate										11.40%	11.90%
Debt issuance costs													$ 2,200,000
Interest expense										$ 5,900,000	$ 5,700,000
Principal amount, decrease by amount	$ (15,000,000)
Amortization of debt issuance costs and debt discounts										$ 400,000	$ 300,000
Repayments of term loans						$ 50,000,000
Second Lien Term Loan \| Base Rate
Debt Instrument [Line Items]
Debt instrument, variable rate		7.25%
Debt instrument, variable rate increase	0.25%
Second Lien Term Loan \| Eurodollar
Debt Instrument [Line Items]
Debt instrument, variable rate		8.25%
Debt instrument, variable rate increase	0.25%

Debt - Summary of Carrying Value of First Lien and Second Lien Term Loan (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Aug. 28, 2017
Debt Instrument [Line Items]
Principal amount outstanding	$ 376,938	$ 517,332
Carrying amount	370,090
First Lien Term Loan
Debt Instrument [Line Items]
Principal amount outstanding	376,938	467,332	$ 356,300
Less: Debt discount, net of amortization	(2,623)	(3,850)	(3,538)
Less: Debt issuance costs, net of amortization	(4,225)	(5,825)	(4,804)
Carrying amount	$ 370,090	$ 457,657	$ 347,958
Effective Interest rate		6.80%	7.40%	0.50%
Second Lien Term Loan
Debt Instrument [Line Items]
Principal amount outstanding		$ 50,000	$ 50,000
Less: Debt discount, net of amortization		(471)	(572)
Less: Debt issuance costs, net of amortization		(1,374)	(1,669)
Carrying amount		$ 48,155	$ 47,759
Effective Interest rate		11.40%	11.90%

Debt - Summary of Draws and Repayment of Revolver (Detail) - Revolver - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Line of Credit Facility [Line Items]
Beginning balance	$ 27,000
Draws	475,300	$ 364,300
Repayments	$ (502,300)	(337,300)
Ending balance		$ 27,000

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

Debt - Summary of Interest Expense Recognized for First Lien and Second Lien (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Amortization of debt discount	$ 219	$ 216	$ 672	$ 700	$ 946	$ 1,046
Amortization of debt issuance costs	489	514	1,401	1,583	2,043	2,258
Loss on debt extinguishment	2,864		3,256
Total interest expense recognized	9,980	9,101	28,259	27,044	35,504	32,199
First Lien and Second Lien Term Loan
Debt Instrument [Line Items]
Contractual interest expense	$ 6,408	7,582	22,914	22,662	29,757	27,395
Revolver
Debt Instrument [Line Items]
Contractual interest expense		$ 789	$ 16	$ 2,099	2,758	1,500
Amortization of debt issuance costs					500	500
Total interest expense recognized					$ 3,300	$ 2,000

Debt - Summary of Estimated Future Principal Payments under Total Long-term Debt (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Debt Disclosure [Abstract]
2020		$ 4,771
2020 (remaining three months)	$ 0
2021		4,771
2022		4,771
2023		4,771
2024	376,938	448,248
Thereafter		50,000
Total debt	376,938	517,332
Less: Discount and debt issuance costs	(6,848)	(11,520)
Less: Current portion of debt, net		(2,364)
Carrying amount	370,090
Debt, net	$ 370,090	$ 503,448	$ 394,106

Commitments and Contingencies - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Lease Abstract
2020	$ 7,525
2021	5,786
2022	2,701
2023	1,584
2024	1,025
Thereafter	0
Total	$ 18,621

Commitments and Contingencies - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) Claim	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Loss Contingencies [Line Items]
Rent expense		$ 7,300,000	$ 6,200,000
Non-cancelable purchase commitments	$ 103,100,000	44,100,000
Letters of credit outstanding, amount	2,000,000	1,500,000	$ 1,000,000
Line of credit facility, current borrowing capacity	$ 0
Loss contingency, claims settled, number \| Claim	0
Loan Purchase Commitments
Loss Contingencies [Line Items]
Non-cancelable purchase commitments		$ 1,900,000

Stockholders' Equity - Additional Information (Detail) $ / shares in Units, $ in Thousands				1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 15, 2020 $ / shares shares	Dec. 19, 2019 USD ($) shares	Mar. 29, 2018 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Sep. 25, 2020 $ / shares shares
Capital Unit [Line Items]
Cash dividend \| $				$ 85,000
Stock issued, value \| $		$ 53,500			$ 106,730	$ 106,730	$ 53,500
Authorized shares of common stock for issuance	100,000,000				300,000,000	300,000,000	300,000,000	100,000,000	300,000,000
Authorized shares of common stock for issuance, par value \| $ / shares	$ 0.0001				$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Stock split ratio	3.485
Common stock shares outstanding	84,405,366				91,914,000	91,914,000	84,079,366	75,896,147
Authorized shares of common stock for issuance	100,000,000				300,000,000	300,000,000	300,000,000	100,000,000	300,000,000
Authorized shares of preferred stock for issuance					5,000,000	5,000,000	5,000,000		5,000,000
Authorized shares of common stock for issuance, par value \| $ / shares	$ 0.0001				$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001
Authorized shares of preferred stock for issuance, par value \| $ / shares					$ 0.0001	$ 0.0001	$ 0.0001		$ 0.0001
Preferred stock shares outstanding									0
SCUF Acquisition
Capital Unit [Line Items]
Stock issued, value \| $							$ 10,000
Parent
Capital Unit [Line Items]
Cash dividend \| $			$ 85,000
Stock issued		14,092,098					2,644,151	1,736,521
Stock issued, value \| $							$ 10,000	$ 6,200
Parent \| SCUF Acquisition
Capital Unit [Line Items]
Stock issued							2,644,151
Common Stock
Capital Unit [Line Items]
Stock issued					7,500,000	7,500,000	7,046,049
Stock issued, value \| $					$ 1	$ 1
Common Stock \| Shares Equivalent After Conversion
Capital Unit [Line Items]
Stock issued		7,046,049
Common Stock \| Shares Equivalent After Conversion \| SCUF Acquisition
Capital Unit [Line Items]
Stock issued							1,322,075
Common Stock \| Parent \| Shares Equivalent After Conversion
Capital Unit [Line Items]
Stock issued							1,322,075	868,260

Equity Incentive Plans and Stock-Based Compensation - Additional Information (Detail) - USD ($)			1 Months Ended	9 Months Ended	12 Months Ended
	Nov. 07, 2019	Mar. 29, 2018	Mar. 31, 2018	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Apr. 17, 2020	Jan. 03, 2020	Aug. 12, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price of modified unit awards					$ 0.56
Modified exercise price of unit awards					14,570,000
Incremental stock-based compensation expense					$ 4,800,000
Remaining requisite service period years from the modification date.					4 years 1 month 6 days
Weighted average grant-date fair value stock options granted				$ 8.59	$ 7.78	$ 7.23
Unrecognized stock-based compensation costs related to unvested stock				$ 15,400,000	$ 13,200,000	$ 13,100,000
Expected Dividend Rate			0.00%
Cash dividend			$ 85,000,000
Number of options granted				1,875,161	1,935,000	737,500
Issuance of common stock for stock option exercises				306,000	34,000	3,250
Common stock percentage				85.00%
Separation Agreement with an Executive
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Incremental stock-based compensation expense					$ 400,000
Separation agreement included cash compensation	$ 700,000
Parent
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Cash dividend		$ 85,000,000
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average grant-date fair value stock options granted					$ 2.88	$ 2.51
Expected to be recognized weighted average period				3 years 3 months 18 days	3 years 5 months 23 days	3 years 9 months 10 days
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized stock-based compensation costs related to unvested stock				$ 100,000
Expected to be recognized weighted average period				1 year
Share-based compensation, exercise price				$ 17.00
2017 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock options granted					7,285,000
Number of options granted				0
2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance				5,125,000
Number of shares available for grant				4,941,580
Share-based compensation, effective date				Sep. 22, 2020
Share-based compensation, description				Plan reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 4% of the shares outstanding on the last day of the immediately preceding fiscal year
Common stock shares reserved outstanding percentage				4.00%
2020 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock for stock option exercises				75,000,000
2017 Plan and the 2020 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, exercise price				$ 0
Share-based compensation, expiration period				10 years
2017 Plan and the 2020 Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, vesting period				5 years
2017 Plan and the 2020 Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, vesting period				4 years
2020 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance				1,025,000
Share-based compensation, effective date				Sep. 22, 2020
Share-based compensation, description				The ESPP reserve increases annually on January 1 of each calendar year, starting on January 1, 2021 through January 1, 2030, by an amount equal to the lesser of (a) 1% of the shares outstanding on the last day of the immediately preceding fiscal year
Common stock shares reserved outstanding percentage				1.00%
Employee stock purchase plan description				The option purchase price will be the lower of 85% of the closing trading price per share of our common stock on the first trading date of an offering period in which a participant is enrolled or 85% of the closing trading price per share on the purchase date, which will occur on the last trading day of each offering period.
Maximum number of shares participant expected to purchase				30,000
Minimum fair market value of shares of common stock				$ 25,000
2020 Employee Stock Purchase Plan \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Issuance of common stock for stock option exercises				20,000,000
Employee stock purchase plan offering period				27 months
Employees participate through payroll deductions percentage				15.00%
2020 Employee Stock Purchase Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Employees participate through payroll deductions percentage				1.00%
Equity Option Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance					16,666,667
Stock option exercise description					No options will be exercisable more than 10 years after the date of grant. An exercise price per unit may not be less than 100% of the fair market value per unit on the date of grant.
Options generally vest					20.00%
Share-based compensation, vesting period					5 years
Number of shares available for grant					512,167	1,150,167
Equity Option Plan \| Parent
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance									1,500,000
Equity Option Plan \| Subsequent Event \| Parent
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for issuance							650,000	1,500,000

Equity Incentive Plans and Stock-Based Compensation - Summary of Stock Option Activities and Related Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Outstanding Stock Options, Beginning balance	8,790,000	7,703,000	7,150,000
Options granted	1,875,161	1,935,000	737,500
Options exercised	(306,000)	(34,000)	(3,250)
Options forfeited/cancelled	(164,000)	(814,000)	(181,250)
Outstanding Stock Options, Ending balance	10,195,161	8,790,000	7,703,000	7,150,000
Stock Options, Vested and exercisable	4,045,117	2,845,500
Weighted-Average Exercise Price Per Share, Beginning balance	$ 4.86	$ 4.18	$ 4.98
Options granted	8.59	7.78	7.23
Options exercised	4.05	3.63	2.97
Options forfeited/cancelled	6.30	5.34	4.80
Weighted-Average Exercise Price Per Share, Ending balance	5.55	4.86	$ 4.18	$ 4.98
Weighted-Average Exercise Price Per Share, Vested and exercisable	$ 4.31	$ 4.00
Weighted-Average Remaining Contractual Term	7 years 10 months 24 days	8 years 1 month 6 days	8 years 10 months 24 days	9 years 10 months 24 days
Weighted -Average Remaining Contractual Term Vested and exercisable	7 years 2 months 12 days	7 years 2 months 12 days
Aggregate Intrinsic Value, Balance	$ 67,698	$ 24,949	$ 19,615	$ 6,006
Aggregate Intrinsic Value, Vested and exercisable	$ 31,534	$ 10,489

Equity Incentive Plans and Stock-Based Compensation - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,631	$ 867	$ 4,286	$ 2,813	$ 3,848	$ 2,751
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	60	52	192	145	197	162
Sales, General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	1,414	672	3,634	2,251	3,084	2,182
Product Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 157	$ 143	$ 460	$ 417	$ 567	$ 407

Equity Incentive Plans and Stock-Based Compensation - Summary of Valuation Assumptions of Fair Value of Stock Options on Date of Grant (Detail) - $ / shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement [Abstract]
Weighted average grant date fair value of common stock (per share)	$ 16.38	$ 7.55	$ 8.60	$ 7.46	$ 7.59	$ 6.88
Expected term (years)	6 years 1 month 2 days	6 years 6 months	6 years 4 months 13 days	6 years 5 months 23 days	6 years 5 months 23 days	6 years 5 months 23 days
Expected volatility, minimum	41.70%	34.50%	35.80%	34.30%	34.30%	33.40%
Expected volatility, maximum	44.00%	34.90%	44.00%	34.90%	36.10%	35.00%
Range of risk-free interest rate, minimum	0.30%	1.40%	0.30%	1.40%	1.40%	2.70%
Range of risk-free interest rate, maximum	0.40%	1.90%	1.80%	2.60%	2.60%	3.10%

Net Loss (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Numerator
Net income (loss), basic and diluted	$ 36,357	$ 1,519	$ 60,174	$ (14,406)	$ (8,394)	$ (13,720)
Denominator
Weighted-average shares used to compute net income (loss) per share, basic	84,870,837	75,939,443	84,352,415	75,928,057	76,223,451	75,457,693
Effect of dilutive options	5,213,112	1,944,311	3,146,104
Weighted-average shares used to compute net income (loss) per share, diluted	90,083,949	77,883,754	87,498,519	75,928,057	76,223,451	75,457,693
Net income (loss) per share:
Basic	$ 0.43	$ 0.02	$ 0.71	$ (0.19)	$ (0.11)	$ (0.18)
Diluted	$ 0.40	$ 0.02	$ 0.69	$ (0.19)	$ (0.11)	$ (0.18)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

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

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+ Details

Net Loss (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Parenthetical) (Detail) - shares	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount		1,673,618	2,647,008
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount	1,800,000	1,900,000	1,300,000

Weighted-Average Outstanding Securities Considered Anti-dilutive and Excluded from the Computation of Diluted Net Income (Loss) Per Share (Detail) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of loss per share amount	1,673,618	2,647,008

Income Taxes - Component of Income (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic					$ (18,407)	$ (15,887)
Foreign operations					5,008	5,180
Income (loss) before income taxes	$ 39,574	$ 1,444	$ 70,323	$ (19,051)	$ (13,399)	$ (10,707)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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Income Taxes - Components of Income Tax (Expense) Benefit (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Current federal taxes					$ (2,177)	$ (1,029)
Deferred federal taxes					5,948	(209)
Current state taxes					(529)	(113)
Deferred state taxes					1,421	(64)
Current foreign taxes					(3,824)	(4,888)
Deferred foreign taxes					4,166	3,290
Income tax (expense) benefit	$ (3,217)	$ 75	$ (10,149)	$ 4,645	$ 5,005	$ (3,013)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Taxes - Income Tax (Expense) Benefit Differs from the Amount which would Result by applying the Applicable Statutory Deferral Rate to Income before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Provision at federal statutory rate					$ 2,814	$ 1,581
State taxes					911	423
Change in valuation allowance					719	(5,411)
Expired capital losses and tax credits						368
Foreign rate differential					300	439
Net operating loss					2,557
Effect of change in tax rate on deferred tax assets					(469)	(245)
Tax on undistributed foreign earnings					(1,520)
Other					(307)	(168)
Income tax (expense) benefit	$ (3,217)	$ 75	$ (10,149)	$ 4,645	$ 5,005	$ (3,013)

Income Taxes - Components of Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Accrued expenses and reserves	$ 12,516	$ 3,368
Equity-based compensation	1,720	825
NOL and capital losses	14,461	12,917
Interest expense carryover	3,628	1,613
Tax credits	1,339	2,124
Cumulative transaction adjustment	355	300
Total deferred tax assets	34,019	21,147
Less valuation allowance	(12,615)	(13,335)
Deferred tax liabilities:
Intangible assets	(53,382)	(42,027)
Other	(195)	(31)
Net deferred tax liabilities	$ (32,173)	$ (34,246)

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2018
Income Taxes Disclosure [Line Items]
Valuation allowance						$ 12,615		$ 13,335
Percent of adjusted taxable income							30.00%
Interest expense subject to limitation						$ 2,500
Percentage of bonus depreciation allowance						100.00%
Bonus depreciation deduction for the current year						$ 2,600
Unrealized tax benefits	$ 600			$ 600		700
Unrecognized tax benefits will favorably impact effective tax rate in future periods						400
Unrecognized tax benefits expects to reduce in the next 12 months						$ 400
Additional income tax benefits resulting from enactment of CARES act				$ 600
Effective income tax rate	8.10%		5.20%	14.40%	24.40%
Tax benefit	$ 4,300		$ 1,500	$ 4,300
One-time benefit from change in tax law resulting from enactment of CARES act		$ 600
Earliest Tax Year
Income Taxes Disclosure [Line Items]
Open Tax Year						2013
Latest Tax Year
Income Taxes Disclosure [Line Items]
Open Tax Year						2018
Previously Reported
Income Taxes Disclosure [Line Items]
Unrealized tax benefits						$ 500
Federal
Income Taxes Disclosure [Line Items]
Net operating loss carryforwards						$ 31,300
Operating loss carryforwards expiration year						2037
State
Income Taxes Disclosure [Line Items]
Net operating loss carryforwards						$ 29,800
Operating loss carryforwards expiration year						2031
Foreign
Income Taxes Disclosure [Line Items]
Net operating loss carryforwards						$ 18,200
Operating loss carryforwards expiration year						2021
Service in 2023
Income Taxes Disclosure [Line Items]
Percentage of bonus depreciation allowance						80.00%
Service in 2024
Income Taxes Disclosure [Line Items]
Percentage of bonus depreciation allowance						60.00%
Service in 2025
Income Taxes Disclosure [Line Items]
Percentage of bonus depreciation allowance						40.00%
Service in 2026
Income Taxes Disclosure [Line Items]
Percentage of bonus depreciation allowance						20.00%

Related-Party Transactions - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended		10 Months Ended	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Oct. 23, 2018	Dec. 31, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Rent expense						$ 7,300,000	$ 6,200,000
EagleTree-Carbide (GP), LLC
Related Party Transaction [Line Items]
Related party transaction, expenses incurred	$ 21,000	$ 33,000	$ 100,000	$ 100,000		300,000	300,000
Related party transaction, unpaid amount	21,000		21,000			100,000	100,000
Director
Related Party Transaction [Line Items]
Cash paid for inventory					$ 25,300,000
Related party transaction, expenses incurred	30,000	$ 8,000	92,000	$ 55,000		100,000	100,000
Related party transaction, unpaid amount	44,000		44,000			16,000
Director \| Consulting Fees
Related Party Transaction [Line Items]
Related party transaction, unpaid amount						30,000	30,000
Affiliated Entity and Director
Related Party Transaction [Line Items]
Second lien term loan balance held by all related parties	$ 0		$ 0			5,800,000	7,600,000
Chief Executive Officer
Related Party Transaction [Line Items]
Rent expense						54,000	54,000
Security deposit for the lease						5,000
Unpaid rent balance included in the accounts payable						$ 0	5,000
Percentage of principal balance						50.00%
Affiliated Entity And Chief Executive Officer
Related Party Transaction [Line Items]
Outstanding principal balance							$ 4,000,000
Unrelated third party
Related Party Transaction [Line Items]
Percentage of principal balance						50.00%

Segment and Geographic Information - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2020 Segment Customer	Dec. 31, 2019 Segment	Dec. 31, 2018 Segment
Segment Reporting [Abstract]
Number of reportable segments \| Segment	2	2	3
Number of customer for more than minimum threshold percentage of revenue \| Customer	1

Segment and Geographic Information - Summary of Financial Information for Each Reportable Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619	$ 1,097,174	$ 937,553
Total gross profit	127,944	60,227	311,630	153,834	224,287	192,695
Gaming and Creator Peripherals
Segment Reporting Information [Line Items]
Net revenue	161,555	70,606	347,531	200,084	294,141	233,536
Total gross profit	60,010	19,948	120,886	58,234	81,363	73,489
Gaming Components and Systems
Segment Reporting Information [Line Items]
Net revenue	295,548	213,766	798,497	570,535	803,033	704,017
Total gross profit	$ 67,934	$ 40,279	$ 190,744	$ 95,600	$ 142,924	$ 119,206

- Definition

Aggregate revenue less cost of goods and services sold or operating expenses directly attributable to the revenue generation activity.

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Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Segment and Geographic Information - Summary of Net Revenue By Geographic Region (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Net revenue	$ 457,103	$ 284,372	$ 1,146,028	$ 770,619	$ 1,097,174	$ 937,553
Americas
Segment Reporting Information [Line Items]
Net revenue	216,982	108,318	517,165	315,200
Europe and Middle East
Segment Reporting Information [Line Items]
Net revenue	162,615	114,118	412,349	287,502	406,435	348,798
Asia Pacific
Segment Reporting Information [Line Items]
Net revenue	$ 77,506	$ 61,936	$ 216,514	$ 167,917	230,483	201,997
United States
Segment Reporting Information [Line Items]
Net revenue					386,944	329,179
Other Americas
Segment Reporting Information [Line Items]
Net revenue					$ 73,312	$ 57,579

- Definition

+ References

+ Details

Segment and Geographic Information - Summary of Property And Equipment, Net by Country (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Property and equipment, net	$ 15,404	$ 15,365	$ 12,473
United States
Segment Reporting Information [Line Items]
Property and equipment, net	6,532	6,400	4,394
China
Segment Reporting Information [Line Items]
Property and equipment, net	5,039	4,998	6,363
Taiwan
Segment Reporting Information [Line Items]
Property and equipment, net	2,668	2,270	983
Other Countries
Segment Reporting Information [Line Items]
Property and equipment, net	$ 1,165	$ 1,697	$ 733

Balance Sheet Components - Summary of Cash and Restricted Cash (Detail) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Balance Sheet Related Disclosures [Abstract]
Cash	$ 116,185	$ 48,165		$ 25,639
Restricted cash-short term	3,726	3,552		2,281
Restricted cash-noncurrent	230	230
Total cash and restricted cash	$ 120,141	$ 51,947	$ 12,129	$ 27,920	$ 19,030

Balance Sheet Components - Additional Information (Detail) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) Customer	Dec. 31, 2019 USD ($) Customer
Concentration Risk [Line Items]
Deferred revenue, current	$ 1.1	$ 3.3
Deferred revenue, long-term portion	0.4	0.4
Unearned revenue consists of payments received from customer	$ 4.1	$ 1.3
Credit Concentration Risk \| Accounts Receivable
Concentration Risk [Line Items]
Number of customers \| Customer	2	2

Commitments and Contingencies - Schedule of Changes in Warranty Obligations (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Beginning of the period	$ 5,005	$ 2,776	$ 3,991	$ 2,581
Balance assumed from business combinations		223		223
Warranty provision related to products shipped	1,518	1,395	4,928	4,231
Deductions for warranty claims processed	(1,400)	(1,338)	(3,796)	(3,979)
End of period	$ 5,123	$ 3,056	$ 5,123	$ 3,056

Equity Incentive Plans and Stock-Based Compensation - Summary of RSUs Activities and Related Information (Detail) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2020 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested RSUs, Granted \| shares	17,647
Unvested RSUs, Vested \| shares	(8,823)
Unvested RSUs, Ending balance \| shares	8,824
Weighted-Average Grant Date Fair Value Per Share, Granted \| $ / shares	$ 17.00
Weighted-Average Grant Date Fair Value Per Share, Vested \| $ / shares	17.00
Weighted-Average Grant Date Fair Value Per Share, Ending balance \| $ / shares	$ 17.00

Net Loss (Loss) Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount					1,673,618	2,647,008
Stock Options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of loss per share amount	22,000	1,200,000	2,100,000	1,700,000

Income Taxes - Schedule of Income (Loss) Before Income Taxes, Income Tax (Expense) Benefit and Effective Income Tax Rates (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ 39,574	$ 1,444	$ 70,323	$ (19,051)	$ (13,399)	$ (10,707)
Income tax (expense) benefit	$ (3,217)	$ 75	$ (10,149)	$ 4,645	$ 5,005	$ (3,013)
Effective income tax rate	8.10%	5.20%	14.40%	24.40%

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Leases -Summary of Components of Lease Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2020
Leases [Abstract]
Operating lease expense	$ 2,739	$ 6,932
Variable lease expense	2,226	4,657
Total lease expense	$ 4,965	$ 11,589

Leases- Additional Information (Detail) $ in Millions	3 Months Ended	9 Months Ended
Leases- Additional Information (Detail) $ in Millions	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($)
Leases [Abstract]
Payments for operating leases	$ 2.6	$ 6.7
Weighted average remaining lease term	3 years 7 months 6 days	3 years 7 months 6 days
Weighted average discount rate, percent	4.00%	4.00%

Leases - Schedule of Future Undiscounted Cash Flows Related To Operating Lease Payments (Detail) - USD ($)
$ in Thousands

Sep. 30, 2020

Jan. 01, 2020

Leases [Abstract]

2020 (remaining three months)

$ 2,310

9,072

6,372

5,172

3,999

1,987

Total future lease payments

28,912

Less: Imputed interest

(2,133)

Present value of operating lease liabilities

26,779

$ 17,900

Operating lease liabilities, current

^[1]

8,883

Long-term operating lease liabilities

^[1]

$ 17,896

[1]	The current portion and long-term portion of operating lease liabilities are included in "other liabilities and accrued expenses" and "other liabilities, noncurrent", respectively, on our condensed combined consolidated balance sheets.

Leases - Future Minimum Lease Payments Under Non-cancelable Operating Leases (Detail) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
2020	$ 7,525
2021	5,786
2022	2,701
2023	1,584
2024	1,025
Total	$ 18,621