Redeemable Noncontrolling Interest (“RNCI”)

12 Months Ended

Dec. 31, 2022

Income Amounts Attributable To Noncontrolling Interest Disclosures [Abstract]

Redeemable Noncontrolling Interest (“RNCI”)

17. Redeemable Noncontrolling Interest (“RNCI”)

Under the Shareholders Agreement between Corsair and the iDisplay Seller a put option was provided to the iDisplay Seller to transfer to Corsair (i) 14% of their ownership interest in iDisplay upon the first anniversary of the Closing Date of the iDisplay Acquisition, and (ii) an additional 15% of their ownership interest in iDisplay upon the second anniversary of the Closing Date. The put option will expire after January 1, 2025. The exercise price of the put option is based on multiples of iDisplay’s historical TTM EBITDA less any debt. The put option makes this portion of the noncontrolling interest redeemable and therefore, the RNCI are classified as temporary equity on our consolidated balance sheets and carried at the greater of the initial carrying amount, increased or decreased, for the RNCI share of comprehensive income (loss), contributions and distributions, or the redemption value. The change in redemption value is recognized through retained earnings.

As of the Closing Date of the iDisplay Acquisition, the fair value of the total 49% noncontrolling interest in iDisplay was estimated to be $29.6 million, of which $17.5 million is attributable to the 29% RNCI and classified within temporary equity and $12.1 million is attributable to the 20% noncontrolling interest classified within permanent equity on our consolidated balance sheets.

The following table presents the changes in RNCI for the period presented (in thousands):

	Year Ended December 31, 2022
Balance at beginning of period	$	—
Initial carrying amount estimated at iDisplay's Closing Date		17,522
Share of net income		261
Share of other comprehensive loss		(400	)
Dividend paid		(2,552	)
Change in redemption value (1)		6,536
Balance at end of period	$	21,367

(1) This amount represents a $6.5 million increase in redemption value over the carrying value for the year ended December 31, 2022. This amount was recorded as an offset to retained earnings and increased the net loss attributable to common stockholders of Corsair Gaming, Inc. used in the calculation of net loss per share for this period.