Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'Entertainment Gaming Asia Inc. | ' |
Entity Central Index Key | '0001004673 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'EGT | ' |
Entity Common Stock, Shares Outstanding | ' | 30,024,662 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $4,640 | $10,365 |
Accounts receivable, net | 1,390 | 1,841 |
Other receivables | 461 | 112 |
Inventories | 1,443 | 2,047 |
Prepaid expenses and other current assets | 310 | 387 |
Total current assets | 8,244 | 14,752 |
Gaming equipment, net | 9,275 | 9,724 |
Casino contracts | 6,068 | 7,982 |
Property and equipment, net | 9,170 | 6,170 |
Goodwill | 362 | 380 |
Intangible assets, net | 990 | 1,253 |
Contract amendment fees | 261 | 342 |
Deferred tax assets | 0 | 201 |
Prepaids, deposits and other assets | 2,646 | 2,914 |
Total assets | 37,016 | 43,718 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ' | ' |
Accounts payable | 557 | 3,636 |
Amounts due to a related party | 20 | 0 |
Accrued expenses | 1,749 | 2,619 |
Income tax payable | -26 | 0 |
Customer deposits and other current liabilities | 853 | 656 |
Total current liabilities | 3,153 | 6,911 |
Other liabilities | 750 | 1,078 |
Deferred tax liability | 137 | 137 |
Total liabilities | 4,040 | 8,126 |
Stockholders’ equity: | ' | ' |
Common stock, $.001 par value, 75,000,000 shares authorized; 30,024,662 and 29,974,662 shares issued and outstanding | 30 | 30 |
Additional paid-in-capital | 32,922 | 32,224 |
Accumulated other comprehensive income | 717 | 929 |
(Accumulated losses)/ retained earnings | -694 | 2,408 |
Total EGT stockholders’ equity | 32,975 | 35,591 |
Non-controlling interest | 1 | 1 |
Total stockholders’ equity | 32,976 | 35,592 |
Total liabilities and stockholders’ equity | $37,016 | $43,718 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares, Issued | 30,024,662 | 29,974,662 |
Common Stock, Shares, Outstanding | 30,024,662 | 29,974,662 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Gaming operations, gross | $4,546 | $4,480 | $15,505 | $14,634 |
Less: promotional allowances | 0 | 0 | 0 | 0 |
Gaming operations, net | 4,546 | 4,480 | 15,505 | 14,634 |
Gaming products | 1,106 | 1,718 | 2,695 | 3,228 |
Total revenues | 5,652 | 6,198 | 18,200 | 17,862 |
Operating costs and expenses: | ' | ' | ' | ' |
Gaming and property equipment depreciation | 1,175 | 1,228 | 3,580 | 3,516 |
Casino contract amortization | 613 | 617 | 1,851 | 1,847 |
Other gaming related intangibles amortization | 63 | 63 | 189 | 189 |
Other operating costs | 1,182 | 1,051 | 4,672 | 2,526 |
Cost of gaming products | 1,131 | 1,526 | 3,172 | 2,756 |
Selling, general and administrative expenses | 1,558 | 1,491 | 4,614 | 4,712 |
Stock-based compensation expenses | 109 | 123 | 554 | 675 |
Gain on dispositions | 0 | -2 | 0 | -31 |
Impairment of assets | 0 | 42 | 0 | 114 |
Product development expenses | 51 | 87 | 206 | 273 |
Depreciation and amortization | 51 | 77 | 128 | 168 |
Total operating costs and expenses | 5,933 | 6,303 | 18,966 | 16,745 |
(Loss)/income from continuing operations | -281 | -105 | -766 | 1,117 |
Other (expense)/income: | ' | ' | ' | ' |
Interest expense and finance fees | -1 | -20 | -5 | -109 |
Interest income | 0 | 4 | 4 | 32 |
Foreign currency (losses)/gains | -39 | 55 | -228 | 269 |
Other | 1 | -3 | 11 | 22 |
Total other (expense)/income | -39 | 36 | -218 | 214 |
(Loss)/income from continuing operations before income tax expense | -320 | -69 | -984 | 1,331 |
Income tax benefit/(expense) | 11 | -34 | -38 | -124 |
Net (loss)/income from continuing operations | -309 | -103 | -1,022 | 1,207 |
Net income/(loss) from discontinued operations, net of tax | 0 | 146 | -2,080 | 292 |
Net (loss)/income attributable to EGT Stockholders | -309 | 43 | -3,102 | 1,499 |
Other comprehensive income, net of tax | ' | ' | ' | ' |
Foreign currency translation adjustments | 5 | 87 | -244 | 167 |
Less: reclassification adjustments to net loss | 0 | 0 | 32 | 0 |
Foreign currency translation adjustments, net | 5 | 87 | -212 | 167 |
Other comprehensive income/(loss), net of tax | 5 | 87 | -212 | 167 |
Comprehensive (loss)/ income attributable to EGT Stockholders | ($304) | $130 | ($3,314) | $1,666 |
Basic and diluted earnings per share: | ' | ' | ' | ' |
(Loss)/earnings from continuing operations (in dollars per share) | ($0.01) | $0 | ($0.03) | $0.04 |
(Loss)/earnings from discontinued operations, net of tax (in dollars per share) | $0 | $0 | ($0.07) | $0.01 |
(Loss)/earnings (in dollars per share) | ($0.01) | $0 | ($0.10) | $0.05 |
Weighted average common shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 30,025 | 29,926 | 30,024 | 29,915 |
Diluted (in shares) | 30,025 | 29,926 | 30,024 | 30,793 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net (loss)/income | ($3,102) | $1,499 |
Adjustments to reconcile net (loss)/income to net cash (used in)/provided by operating activities: | ' | ' |
Foreign currency gains | -3 | -287 |
Depreciation of gaming equipment and property and equipment | 3,934 | 3,822 |
Amortization of casino contracts | 1,851 | 1,847 |
Amortization of intangible assets | 226 | 215 |
Amortization of contract amendment fees | 81 | 81 |
Stock-based compensation expense | 554 | 675 |
Gain on disposition of gaming equipment | 0 | -31 |
Impairment of assets | 0 | 114 |
Bad debt recoveries | -15 | -61 |
Loss on disposition of subsidiary, including property and equipment | 999 | 0 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable and other receivables | 388 | 392 |
Inventories | -258 | -190 |
Prepaid expenses and other current assets | 537 | 94 |
Prepaids, deposits and other assets | -475 | -1,226 |
Accounts payable | -1,124 | 233 |
Amounts due to a related party | 20 | -14 |
Accrued expenses and other liabilities | -887 | -38 |
Income tax payable | -26 | 30 |
Customer deposits and other current liabilities | 211 | 288 |
Net cash provided by operating activities | 2,911 | 7,443 |
Cash flows from investing activities: | ' | ' |
Construction/purchase of property and equipment | -4,088 | -2,465 |
Purchases of gaming machines and systems | -4,740 | -1,633 |
Acquisition of technical know-how | 0 | -254 |
Addition of project costs | 0 | -491 |
Proceeds from sale of subsidiary related to discontinued operations | 365 | 0 |
Proceeds from sale of gaming machines, property and equipment | 0 | 72 |
Net cash used in investing activities | -8,463 | -4,771 |
Cash flows from financing activities: | ' | ' |
Repayment of short-term debt and leases | 0 | -328 |
Repayment of notes payable | 0 | -4,629 |
Exercise of stock options | 0 | 28 |
Net cash used in financing activities | 0 | -4,929 |
Effect of exchange rate changes on cash | -173 | 128 |
Decrease in cash and cash equivalents | -5,725 | -2,129 |
Cash and cash equivalents at beginning of period | 10,365 | 12,759 |
Cash and cash equivalents at end of period | 4,640 | 10,630 |
Supplemental disclosure of cash flow information | ' | ' |
Interest paid | 0 | 136 |
Income tax paid | 0 | 68 |
Non-cash investing/financing activities | ' | ' |
Purchase of gaming machines and systems | 659 | 0 |
Issuance of restricted/performance stock | $99 | $179 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' | |||||||||||||
Note 1. Description of Business and Significant Accounting Policies | ||||||||||||||
The business activities of the Company entail the owning and leasing of electronic gaming machines (EGMs) placed in premier hotels and other venues in Cambodia and the Philippines, the development and operation of casinos and gaming establishments under the Dreamworld brand in select emerging markets in the Indo-China region and the design, manufacture and distribution of gaming chips and plaques under the Dolphin brand to major casinos primarily in Southeast Asia and Australia. Previously, the Company was engaged in the design, manufacture and distribution of other, non-gaming plastic products, primarily for the automotive industry. These operations were sold on March 28, 2013 and related historical revenues and expenses have been reclassified as discontinued operations. The accounting policies of these segments are consistent with the Company’s policies for the accompanying consolidated financial statements. | ||||||||||||||
Effective since January 1, 2012, the Company adopted the FASB issued ASU 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, as amended by ASU 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amended standards eliminate the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity and require that all changes in stockholders’ equity - except investments by, and distributions to, owners - be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The adoption of these amended standards revised the manner which entities present comprehensive income in their financial statements. In addition, the amended standards require to present the changes in accumulated other comprehensive income by component in the statement of stockholders’ equity or in the notes to the financial statements. The Company has elected to present the other comprehensive income in a single continuous statement of comprehensive income and present the changes in accumulated other comprehensive income in the statement of stockholders’ equity. The adoption of the amended standards did not have any impact on the Company’s financial position, results of operations, or earnings per share. The new presentation required by the amended standards has been applied retrospectively to all periods presented. | ||||||||||||||
Basis of Presentation | ||||||||||||||
These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 28, 2013. Certain previously reported amounts have been reclassified to conform to the current period presentation. | ||||||||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of June 12, 2012. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. | ||||||||||||||
Principles of Consolidation | ||||||||||||||
These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||
Use of Estimates | ||||||||||||||
The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. | ||||||||||||||
Discontinued Operations | ||||||||||||||
A discontinued operation is a component of an entity that either has been disposed of, or that is classified as held for sale, and (i) represents a separate major line of business or geographical area of operations; and (ii) is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively with a view to resale. | ||||||||||||||
Non-current assets held for discontinued operations are carried at the lower of carrying amount or fair value less costs to sell. Any gain or loss from disposal of a business, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Company's consolidated statements of comprehensive income and related notes for all years presented. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2013, the Company had deposits in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $4.4 million. | ||||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||
Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. | ||||||||||||||
Inventories | ||||||||||||||
Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. | ||||||||||||||
Long-Lived Assets | ||||||||||||||
The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) ASC 360, Property, Plant and Equipment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such instances, the Company estimates the undiscounted future cash flows that result from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset, determined principally using discounted cash flows. There were no impairment charges for long-lived assets for the three-month and nine-month periods ended September 30, 2013. Impairment charges of approximately $42,000 and $114,000 were recognized for long-lived assets for the three-month and nine-month periods ended September 30, 2012, respectively. | ||||||||||||||
Prepaids, Deposits and Other Assets | ||||||||||||||
Prepaids, deposits and other assets consist primarily of prepaid leases, prepaid value-added taxes in foreign countries, prepayments to suppliers, rental and utilities deposits and restricted cash as lease security. The Company had restricted cash in the amounts of $NIL and $331,000 as of September 30, 2013 and December 31, 2012, respectively, in the form of certificates of deposits as security on leases. | ||||||||||||||
Gaming Equipment | ||||||||||||||
Gaming equipment consists primarily of electronic gaming machines (EGMs) and systems. Gaming equipment is stated at cost. The Company depreciates new gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $981,000 and $1.2 million and $3.1 million and $3.5 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to twenty years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. | ||||||||||||||
Depreciation of property and equipment of approximately $194,000 and $22,000 and $475,000 and $54,000 was recorded in the cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Depreciation of property and equipment of approximately $100,000 and $22,000 and $208,000 and $55,000 was included in cost of gaming products in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Goodwill and Intangible Assets, Including Casino Contracts | ||||||||||||||
Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. | ||||||||||||||
Amortization expenses related to casino contracts were approximately $613,000 and $617,000 and $1.9 million and $1.8 million for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. Amortization expenses related to other gaming related intangibles were approximately $63,000 and $63,000 and $189,000 and $189,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as cost of gaming operations in the consolidated statements of comprehensive income. Amortization expenses related to technical know-how were approximately $7,000 and $6,000 and $20,000 and $9,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as cost of gaming products in the consolidated statements of comprehensive income. Amortization expenses related to patents and trademarks were approximately $6,000 and $6,000 and $18,000 and $18,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as selling, general and administrative expenses in the consolidated statements of comprehensive income. | ||||||||||||||
The Company measures and tests finite-lived intangibles for impairment when there are indicators of impairment in accordance with ASC 360-10-05, Property, Plant and Equipment. | ||||||||||||||
The Company measures and tests Goodwill for impairment, at least annually in accordance with ASC 350-10-05, Intangibles — Goodwill and Other. | ||||||||||||||
Impairment testing for goodwill and other intangibles requires judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Additional Paid-In-Capital | ||||||||||||||
During the nine-month period ended September, 30 2013, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation. | ||||||||||||||
Litigation and Other Contingencies | ||||||||||||||
In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The status of a significant claim is summarized in Note 16. | ||||||||||||||
ASC 450, Contingencies, requires that liabilities for contingencies be recorded when it is probable that a liability has been incurred and that the amount can be reasonably estimated. Significant management judgment is required related to contingent liabilities and the outcome of litigation because both are difficult to predict. For a contingency for which an unfavorable outcome is reasonably possible and which is significant, the Company discloses the nature of the contingency and, when feasible, an estimate of the possible loss. | ||||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes revenue when all of the following have been satisfied: | ||||||||||||||
· | Persuasive evidence of an arrangement exists; | |||||||||||||
· | The price to the customer is fixed and determinable; | |||||||||||||
· | Delivery has occurred and any acceptance terms have been fulfilled; | |||||||||||||
· | No significant contractual obligations remain; and | |||||||||||||
· | Collection is reasonably assured. | |||||||||||||
Gaming Revenue and Promotional Allowances | ||||||||||||||
The Company earns recurring gaming revenue from its slot and casino operations. | ||||||||||||||
For slot operations, the Company earns recurring gaming revenue by providing customers with EGMs and casino management systems which track game performance and provide statistics on installed EGMs owned by the Company and leased to venue owners. Revenues are recognized on the contractual terms of the slot agreements between the Company and the venue owners and are based on the Company’s share of net winnings, net of customer incentives and commitment fees. | ||||||||||||||
Revenues are recognized as earned with the exception of one of the Company’s venues in which revenues were recognized when the payment for net winnings was received as the collections from this venue were not reasonably assured. The slot contract with this venue owner was terminated on July 31, 2012 and the Company collected the balance of payments in the fourth quarter of 2012. | ||||||||||||||
Commitment fees paid to the venue operators relating to contract amendments which are not recoverable from daily net win are capitalized as assets and amortized as a reduction of revenue over the term of the amended contracts. The Company had commitment fee balances related to contract amendments of approximately $261,000 and $342,000 as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
For casino operations, the Company’s revenues are measured by the aggregate net difference between gaming wins and losses, with liabilities recognized for funds deposited by customers before gaming play occurs and for chips in the customers’ possession, if any. Cash discounts, other cash incentives related to casino play and commissions rebated through junkets or tour guides, if any, to customers are recorded as a reduction to casino revenue. Consequently, the Company’s casino revenues are reduced by discounts and commissions. | ||||||||||||||
The Company does not accrue a jackpot liability for its slot machine base and progressive jackpots because it can avoid payment of such amounts. Regulations do not prohibit removal of gaming machines from the gaming floor without payment of such jackpots. | ||||||||||||||
Promotional allowances represent goods and services, which would be accounted for as revenue if sold, that a casino gives to customers as an inducement to gamble at that establishment. Such goods and services include food and beverages. The Company includes the retail value of promotional allowances in gross revenues and deducts it from gross revenues to reach net revenues on the face of the consolidated statements of comprehensive income. | ||||||||||||||
The Company also earns recurring gaming revenue by providing customers with table game equipment and casino management services owned and rendered by the Company and leased to the gaming promoters. | ||||||||||||||
Revenues from gaming table leasing arrangements are recognised as earned over the contractual terms of the arrangement between the Company and the gaming promoters. | ||||||||||||||
Gaming Products Sales | ||||||||||||||
The Company recognizes revenue from the sale of its gaming products to end users upon shipment against customer contracts or purchase orders. | ||||||||||||||
The Company also recognizes revenue from the sale of its products to end users on bill-and-hold arrangements when all of the following have been satisfied: | ||||||||||||||
⋅ | The risk of ownership must be passed to the buyer; | |||||||||||||
⋅ | The customer must have a fixed commitment to purchase the goods; | |||||||||||||
⋅ | The buyer, not the Company, must request that the transaction be on bill and hold basis; | |||||||||||||
⋅ | There must be a fixed schedule for the delivery of goods; | |||||||||||||
⋅ | The Company must not have specific performance obligations such that the earning process is not complete; | |||||||||||||
⋅ | The ordered goods must be segregated from the Company’s inventory and not subject to being used to fill other orders, and; | |||||||||||||
⋅ | The product must be complete and ready for shipment. | |||||||||||||
There were no sales related to bill-and-hold arrangements for both the three-month and nine-month periods ended September 30, 2013 and 2012. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation, the Company recognizes stock-based compensation expenses for all service-based awards to employees and non-employee directors with graded vesting schedules on the straight-line basis over the requisite service period for the entire award. Estimates are revised if subsequent information indicates that forfeitures will differ from previous estimates, and the cumulative effect on compensation cost of a change in the estimated forfeitures is recognized in the period of the change. For non-employee awards, the Company remeasures compensation cost each period until the service condition is complete and recognizes compensation cost on the straight-line basis over the requisite service period. Option valuation models require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the fair value estimates. Judgment is required in estimating stock price volatility, forfeiture rates, expected dividends, and expected terms that options remain outstanding. For restricted stock awards with performance conditions, the Company evaluates if performance conditions are probable in each reporting period. The compensation expense of restricted awards is recognized ratably over the implicit service period if achieving performance conditions is probable. Cumulative catch-up adjustments are required in the event of changes in assessment of probability. See Note 12 for additional information relating to stock-based compensation assumptions. Stock-based compensation expense totaled approximately $109,000 and $123,000 and $554,000 and $675,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Product Development | ||||||||||||||
Product development expenses are charged to expense as incurred. Employee related costs associated with product development are included in product development expenses. Product development expenses were approximately $51,000 and $87,000 and $206,000 and $273,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The decrease was primarily a result of reduced product development activities for the gaming products division during the relocation and early operation of the new manufacturing facilities in Hong Kong during the nine-month period ended September 30, 2013. | ||||||||||||||
Leases | ||||||||||||||
Leases are classified at the inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions exists: | ||||||||||||||
⋅ | Ownership is transferred to the lessee by the end of the lease term; | |||||||||||||
⋅ | There is a bargain purchase option; | |||||||||||||
⋅ | The lease term is at least 75% of the property’s estimated remaining economic life; or | |||||||||||||
⋅ | The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | |||||||||||||
A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of September 30, 2013. | ||||||||||||||
Income Taxes | ||||||||||||||
The Company is subject to income taxes in the United States (including federal and state) and several foreign jurisdictions in which it operates. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. ASC 740, Income Taxes, requires that deferred tax assets be evaluated for future realization and reduced by a valuation allowance to the extent the Company believes a portion will not be realized. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience and expectations of future taxable income by taxing jurisdiction, the carry-forward periods available to the Company for tax reporting purposes, and other relevant factors. | ||||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach to recognizing and measuring uncertain tax positions. 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 audit, 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 to be realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes in the statements of comprehensive income. | ||||||||||||||
On December 31, 2010, the Company effected a Quasi-Reorganization. As of that date, the Company’s deferred taxes were reported in conformity with applicable income tax accounting standards described above, net of applicable valuation allowances. Deferred tax assets and liabilities were recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities with corresponding valuation allowances as appropriate. In accordance with the Quasi-Reorganization requirements, pre-existing tax benefits realized subsequent to the Quasi-Reorganization are recorded directly in equity. | ||||||||||||||
(Loss)/Earnings Per Share | ||||||||||||||
Basic (loss)/earnings per share are computed by dividing the reported net (loss)/earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive. There is no difference in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. | ||||||||||||||
Foreign Currency Translations and Transactions | ||||||||||||||
The functional currency of the Company’s international subsidiaries, except for its operations in Cambodia whose functional currency is the U.S. dollar, is generally the local currency. For these subsidiaries, the Company translates the assets and liabilities at exchange rates in effect at the balance sheet date and income and expense accounts at average exchange rates during the year. Resulting currency translation adjustments are recorded directly to accumulated other comprehensive income within stockholders’ equity. Gains and losses resulting from transactions in non-functional currencies are recorded in the consolidated statements of comprehensive income. | ||||||||||||||
Below is a summary of closing exchange rates as of September 30, 2013 and December 31, 2012 and average exchange rates for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
($1 to foreign currency) | September 30, 2013 | December 31, 2012 | ||||||||||||
Australian dollar | 1.07 | 0.96 | ||||||||||||
Philippine peso | 43.31 | 41.19 | ||||||||||||
Hong Kong dollar | 7.75 | 7.75 | ||||||||||||
Thai baht | 31.4 | 30.84 | ||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
($1 to foreign currency) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Australian dollar | 1.09 | 0.96 | 1.02 | 0.97 | ||||||||||
Philippine peso | 43.73 | 42.03 | 42.16 | 42.7 | ||||||||||
Hong Kong dollar | 7.76 | 7.76 | 7.76 | 7.76 | ||||||||||
Thai baht | 31.51 | 31.44 | 30.47 | 31.35 | ||||||||||
Fair Value Measurements | ||||||||||||||
Fair value is defined under ASC 820, Fair Value Measurements and Disclosures, as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard establishes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable. | ||||||||||||||
⋅ | Level 1 — Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. | |||||||||||||
⋅ | Level 2 — Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. | |||||||||||||
⋅ | Level 3 — Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. | |||||||||||||
As of September 30, 2013, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximate carrying values due to the short maturity of these items. | ||||||||||||||
Guarantees | ||||||||||||||
The Company recognizes a guarantee at its inception which is the greater of (i) the fair value of the guarantee and (ii) the contingent liability amount. The fair value of a guarantee is determined by using expected present value measurement techniques. The initial liability recognized is amortized over the guarantee period. The Company does not accrue any guarantee liabilities as of the balance sheet dates. | ||||||||||||||
Recently Issued Accounting Standards | ||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement when net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company has adopted this update (see Note 18 – “Accumulated Other Comprehensive Income.”) | ||||||||||||||
Segments
Segments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Segment Reporting Disclosure [Text Block] | ' | |||||||||||||
Note 2. | Segments | |||||||||||||
The Company currently conducts business in two operating segments: (i) gaming operations, which includes electronic gaming machine (EGM) participation and casino operations; and (ii) gaming products, which consist of the design, manufacture and distribution of gaming chips and plaques and, as of October 2013, the distribution of third-party gaming products in select locations in Indo-China and the Philippines. Previously, the Company was also engaged in the design, manufacture and distribution of other non-gaming plastic products, primarily for the automotive industry. These operations were sold on March 28, 2013 and the related historical revenues and expenses have been reclassified as discontinued operations. The accounting policies of these segments are consistent with the Company’s policies for the accompanying consolidated financial statements. | ||||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues: | ||||||||||||||
Gaming operations | $ | 4,546 | $ | 4,480 | $ | 15,505 | $ | 14,634 | ||||||
Gaming products | 1,106 | 1,718 | 2,695 | 3,228 | ||||||||||
Total revenues | $ | 5,652 | $ | 6,198 | $ | 18,200 | $ | 17,862 | ||||||
Operating (loss)/income: | ||||||||||||||
Gaming operations gross profit (1) | $ | 1,513 | $ | 1,479 | $ | 5,213 | $ | 6,442 | ||||||
Gaming products gross profit/(loss) | -25 | 192 | -477 | 472 | ||||||||||
Corporate and other operating costs and expenses | -1,769 | -1,776 | -5,502 | -5,797 | ||||||||||
Total operating (loss)/income | $ | -281 | $ | -105 | $ | -766 | $ | 1,117 | ||||||
Depreciation and amortization: | ||||||||||||||
Gaming operations | $ | 1,867 | $ | 1,968 | $ | 5,672 | $ | 5,668 | ||||||
Gaming products | 130 | 36 | 276 | 86 | ||||||||||
Corporate | 11 | 10 | 26 | 29 | ||||||||||
Total depreciation and amortization | $ | 2,008 | $ | 2,014 | $ | 5,974 | $ | 5,783 | ||||||
-1 | Gaming operations gross profit included impairment of assets for the three-month and nine-month periods ended September 30, 2012. | |||||||||||||
Geographic segment revenues for the three-month and nine-month periods ended September 30, 2013 and 2012 consisted of the following: | ||||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Cambodia | $ | 3,759 | $ | 3,609 | $ | 13,011 | $ | 11,971 | ||||||
Macau | 185 | 84 | 886 | 748 | ||||||||||
Philippines | 1,186 | 871 | 3,445 | 2,941 | ||||||||||
Australia | 517 | 1,610 | 680 | 2,111 | ||||||||||
Other | 5 | 24 | 178 | 91 | ||||||||||
$ | 5,652 | $ | 6,198 | $ | 18,200 | $ | 17,862 | |||||||
For the three-month and nine-month periods ended September 30, 2013 and 2012, in the gaming operations segment, the largest customer represented 66% and 70% and 63% and 73%, respectively, of total gaming operations revenue. For the three-month and nine-month periods ended September 30, 2013 and 2012, in the gaming products segment, the largest customer represented 36% and 93% and 22% and 48%, respectively, of total gaming products sales. | ||||||||||||||
Inventories
Inventories | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory Disclosure [Text Block] | ' | |||||||
Note 3. Inventories | ||||||||
Inventories consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Raw materials | $ | 887 | $ | 867 | ||||
Work-in-process | 224 | 49 | ||||||
Finished goods | 216 | 924 | ||||||
Spare parts | 90 | 106 | ||||||
Casino inventories | 26 | 101 | ||||||
$ | 1,443 | $ | 2,047 | |||||
Inventories decreased primarily due to the sale of the non-gaming operations of the Dolphin Australia business on March 28, 2013. | ||||||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | ' | |||||||
Note 4. Prepaid Expenses and Other Current Assets | ||||||||
Prepaid expenses and other current assets consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Prepayments to suppliers | $ | 252 | $ | 174 | ||||
Restricted cash | — | 168 | ||||||
Prepaid leases | 58 | 45 | ||||||
$ | 310 | $ | 387 | |||||
Receivables
Receivables | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
Note 5. Receivables | ||||||||
Accounts and other receivables consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Trade accounts | $ | 1,390 | $ | 1,856 | ||||
Other | 461 | 112 | ||||||
1,851 | 1,968 | |||||||
Less: allowance for doubtful accounts | — | -15 | ||||||
Net | $ | 1,851 | $ | 1,953 | ||||
Gaming_Equipment
Gaming Equipment | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Electronic Gaming Machines Egms and Systems Disclosure [Abstract] | ' | |||||||||
Electronic Gaming Machines EGMs and Systems [Text Block] | ' | |||||||||
Note 6. Gaming Equipment | ||||||||||
Gaming equipment is stated at cost. The major categories of gaming equipment and accumulated depreciation consisted of the following: | ||||||||||
(amounts in thousands) | Useful Life | September 30, 2013 | December 31, 2012 | |||||||
(years) | ||||||||||
(Unaudited) | ||||||||||
EGMs | 5-Mar | $ | 17,954 | $ | 16,222 | |||||
Systems | 5 | 1,625 | 1,093 | |||||||
Other gaming equipment | 5-Mar | 320 | 150 | |||||||
19,899 | 17,465 | |||||||||
Less: accumulated depreciation | -10,624 | -7,741 | ||||||||
$ | 9,275 | $ | 9,724 | |||||||
Depreciation expense of approximately $981,000 and $1.2 million and $3.1 million and $3.5 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||
Property_and_Equipment
Property and Equipment | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property and Equipment Disclosure [Abstract] | ' | |||||||||
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | ' | |||||||||
Note 7. Property and Equipment | ||||||||||
Property and equipment are stated at cost and consisted of the following: | ||||||||||
Useful Life | ||||||||||
(amounts in thousands) | (years) | September 30, 2013 | December 31, 2012 | |||||||
(Unaudited) | ||||||||||
Equipment, vehicles, furniture and fixtures | 10-Mar | $ | 4,384 | $ | 2,900 | |||||
Land and building | 20-May | 4,583 | 2,483 | |||||||
Leasehold improvements | 2-Jan | 882 | 180 | |||||||
Construction in progress | N/A | 638 | 1,477 | |||||||
10,487 | 7,040 | |||||||||
Less: accumulated depreciation | -1,317 | -870 | ||||||||
$ | 9,170 | $ | 6,170 | |||||||
Depreciation of property and equipment of approximately $194,000 and $22,000 and $475,000 and $54,000 was recorded in cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||
Depreciation of property and equipment of approximately $100,000 and $22,000 and $208,000 and $55,000 was included in cost of gaming products in the consolidated statement of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, including Casino Contracts | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | |||||||||
Note 8. Goodwill and Intangible Assets, including Casino Contracts | ||||||||||
Intangible assets, if any, are stated at cost. Intangible assets consisted of the following: | ||||||||||
Useful Life | ||||||||||
(amounts in thousands) | (years) | September 30, 2013 | December 31, 2012 | |||||||
(Unaudited) | ||||||||||
Gaming operation agreement | 5-Apr | $ | 1,193 | $ | 1,232 | |||||
Less: accumulated amortization | -504 | -315 | ||||||||
Goodwill | N/A | 362 | 380 | |||||||
Patents | 6-May | 114 | 114 | |||||||
Less: accumulated amortization | -56 | -42 | ||||||||
Trademarks | 9-May | 26 | 26 | |||||||
Less: accumulated amortization | -9 | -6 | ||||||||
Technical know-how | 10 | 261 | 259 | |||||||
Less: accumulated amortization | -35 | -15 | ||||||||
Casino contracts | 6-May | 12,819 | 12,934 | |||||||
Less: accumulated amortization | -6,751 | -4,952 | ||||||||
$ | 7,420 | $ | 9,615 | |||||||
Amortization expense for finite-lived intangible assets was approximately $688,000 and $693,000 and $2.1 million and $2.1 million for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||
Goodwill movements during the periods consisted of the following: | ||||||||||
(amounts in thousands) | 2013 | 2012 | ||||||||
(Unaudited) | ||||||||||
Balance as of January 1 | $ | 380 | $ | 357 | ||||||
Foreign currency translation adjustment | -18 | 23 | ||||||||
Balance as of September 30/December 31 | $ | 362 | $ | 380 | ||||||
Prepaids_Deposits_and_Other_As
Prepaids, Deposits and Other Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaids Deposits and Other Assets Disclosure [Abstract] | ' | |||||||
Prepaids Deposits And Other Assets Noncurrent Disclosure [Text Block] | ' | |||||||
Note 9. Prepaids, Deposits and Other Assets | ||||||||
Prepaids, deposits and other assets consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Prepaid taxes | $ | 981 | $ | 922 | ||||
Prepaid leases | 717 | 747 | ||||||
Prepayments to suppliers | 506 | 585 | ||||||
Deposits on EGM orders | 26 | 257 | ||||||
Rentals, utilities and other deposits | 416 | 240 | ||||||
Restricted cash | — | 163 | ||||||
$ | 2,646 | $ | 2,914 | |||||
As of September 30, 2013, prepaid leases consisted of land lease prepayments of approximately $224,000 and $493,000 for the casino projects located in the respective Cambodian provinces of Kampot and Pailin. | ||||||||
Accrued_Expenses
Accrued Expenses | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses Disclosure [Text Block] | ' | |||||||
Note 10. Accrued Expenses | ||||||||
Accrued expenses consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Payroll and related costs | $ | 197 | $ | 1,292 | ||||
Legal, accounting and tax | 359 | 336 | ||||||
Withholding tax expenses | 550 | 514 | ||||||
Rental expenses | 34 | — | ||||||
Raw materials | 173 | — | ||||||
Other | 436 | 477 | ||||||
$ | 1,749 | $ | 2,619 | |||||
Payroll and related costs as of December 31, 2012 included accruals of approximately $726,000 related to the Company’s prior operations in Australia. These accruals were fully settled during the three-month period ended March 31, 2013. | ||||||||
Other_Liabilities
Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities [Abstract] | ' | |||||||
Other Liabilities Disclosure [Text Block] | ' | |||||||
Note 11. Other Liabilities | ||||||||
Other liabilities consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Other tax liabilities | $ | 667 | $ | 555 | ||||
Provision for long service leave (1) | — | 369 | ||||||
Others | 83 | 154 | ||||||
$ | 750 | $ | 1,078 | |||||
-1 | Provision for long service leave was settled during the sale of the non-gaming operations in March 2013. | |||||||
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
Note 12. Stock-Based Compensation | |||||||||||||||||
Options | |||||||||||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of June 12, 2012. All historical share amounts and share price information presented in this Note 12 have been proportionally adjusted to reflect the impact of this reverse stock split. | |||||||||||||||||
At the annual shareholders meeting held on September 8, 2008, a new stock option plan, the “2008 Stock Incentive Plan” (the “2008 Plan”), was voted on and became effective on January 1, 2009, which replaced two previous plans, the Amended and Restated 1999 Stock Option Plan and the Amended and Restated 1999 Directors’ Stock Option Plan (the “Stock Option Plans”), thereby terminating both of the Stock Option Plans on December 31, 2008. | |||||||||||||||||
The 2008 Plan allows for incentive awards to eligible recipients consisting of: | |||||||||||||||||
· | Options to purchase shares of common stock that qualify as incentive stock options within the meaning of the Internal Revenue Code; | ||||||||||||||||
· | Non-statutory stock options that do not qualify as incentive options; | ||||||||||||||||
· | Restricted stock awards; and | ||||||||||||||||
· | Performance stock awards which are subject to future achievement of performance criteria or free of any performance or vesting. | ||||||||||||||||
The maximum number of shares reserved for issuance under the 2008 Plan was originally 1,250,000 shares, and in July 2010 the Company’s shareholders approved an increase in the number of shares reserved for issuance to 2,500,000 shares. At the annual shareholders meeting held on July 13, 2012, the Company’s shareholders approved a further increase in the number of shares reserved for issuance to 3,750,000 shares. The exercise price shall not be less than 100% of the fair market value of one share of common stock on the date of grant, unless the participant owns more than 10% of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company, in which case the exercise price shall then be 110% of the fair market value. The outstanding stock options generally vest from six-months and one-day to over three years and have ten-year contractual terms. | |||||||||||||||||
During the nine-month period ended September 30, 2013, stock options for the purchase of 360,000 shares of common stock were granted with a weighted average exercise price of $1.93 and weighted average fair value of $1.18(2012: $1.06) per share and will vest from six-month and one day to three-year periods. During the nine-month period ended September 30, 2013, 50,000 shares of restricted stock awards with a fair value of $1.97 per share were issued. The shares of restricted stock shall vest, subject to and upon the recipient’s achievement of key operational and financial performance milestones. For restricted stock awards with performance conditions, the Company evaluates if performance conditions are probable in each reporting period. The compensation expense of restricted awards is recognized ratably over the implicit service period if achieving performance conditions is probable. Cumulative catch-up adjustments are required in the event of any changes in the assessment of probabilities. | |||||||||||||||||
During the nine-month period ended September 30, 2013 there was no exercise of outstanding stock options. | |||||||||||||||||
Prior to January 1, 2009, the Company had two stock options plans, the Amended and Restated 1999 Stock Option Plan and the Amended and Restated 1999 Directors’ Stock Option Plan (the “Previous Stock Option Plans”), through which 3,750,000 shares and 75,000 shares were authorized, respectively. Both Previous Stock Option Plans expired on December 31, 2008. However, options granted under the Previous Stock Option Plans that were outstanding as of the date of termination remain outstanding and subject to termination according to their terms. | |||||||||||||||||
As of September 30, 2013, stock options for the purchase of 936,864 and 22,500 shares of common stock, respectively, were outstanding in relation to the Amended and Restated 1999 Stock Option Plan and the Amended and Restated 1999 Director’s Stock Option Plan. | |||||||||||||||||
As of September 30, 2013, there were no outstanding non-plan options to purchase common stock. All previously granted non-plan options had expired by December 31, 2012. The non-plan options were issued to certain employees and non-employees of EGT Entertainment Holding as approved by the Company’s stockholders in September 2007 pursuant to the initial closing of the transactions under the Securities Purchase and Product Participation Agreement dated June 12, 2007 between the Company and EGT Entertainment Holding. | |||||||||||||||||
As of September 30, 2013, stock options for the purchase of 2,340,708 shares of common stock were outstanding under the 2008 Plan. | |||||||||||||||||
As of September 30, 2013, 2,792,155 stock options were exercisable with a weighted average exercise price of $2.18, a weighted average fair value of $0.83 and an aggregate intrinsic value of approximately $738,000. The total fair value of shares vested during the nine-month period ended September 30, 2013 was approximately $747,000. The total compensation cost related to unvested shares as of September 30, 2013 was approximately $390,000. The amount is expected to be recognized over 1.83 years. | |||||||||||||||||
A summary of all current and expired plans as of September 30, 2013 and changes during the period then ended consisted of the following: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2012 | 2,956,738 | $ | 2.13 | 6.13 | $ | 2,293 | |||||||||||
Granted | 360,000 | 1.93 | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -16,666 | 2.16 | — | — | |||||||||||||
Outstanding as of September 30, 2013 | 3,300,072 | 2.11 | 5.61 | 738 | |||||||||||||
Exercisable as of September 30, 2013 | 2,792,155 | $ | 2.18 | 5.08 | $ | 738 | |||||||||||
Recognition and Measurement | |||||||||||||||||
The fair value of each stock-based award to employees and non-employee directors is estimated on the measurement date which generally is the grant date while awards to non-employees are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends and it does not expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. | |||||||||||||||||
Restricted Stock | |||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | Average | Average | |||||||||||||||
Fair Value at | Remaining | ||||||||||||||||
Grant Date | Contractual Life | ||||||||||||||||
(in years) | |||||||||||||||||
Unvested balance as of December 31, 2012 | — | $ | — | — | |||||||||||||
Granted | 50,000 | 1.97 | 0.25 | ||||||||||||||
Vested (1) | -37,500 | 1.97 | 0.25 | ||||||||||||||
Unvested balance as of September 30, 2013 | 12,500 | $ | 1.97 | 0.25 | |||||||||||||
(1) Vested shares included 37,500 shares of restricted common stock issued in 2013 for which final vesting is subject to the approval by the Company’s compensation committee. | |||||||||||||||||
The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the nine-month periods ended September 30, 2013 and 2012. | |||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Range of values: | Low | High | Low | High | |||||||||||||
Expected volatility | 73.41 | % | 76.49 | % | 79.15 | % | 127.83 | % | |||||||||
Expected dividends | — | — | — | — | |||||||||||||
Expected term (in years) | 3.73 | 9.7 | 3.73 | 9.97 | |||||||||||||
Risk free rate | 0.55 | % | 2.67 | % | 0.56 | % | 1.95 | % | |||||||||
For stock-based compensation accrued to employees and non-employee directors, the Company recognizes stock-based compensation expense for all service-based awards with graded vesting schedules on the straight-line basis over the requisite service period for the entire award. Initial accruals of compensation expense are based on the estimated number of shares for which requisite service is expected to be rendered. Estimates are revised if subsequent information indicates that forfeitures will differ from previous estimates, and the cumulative effect on compensation cost of a change in the estimated forfeitures is recognized in the period of the change. | |||||||||||||||||
For non-employee awards, the Company remeasures compensation cost each period until the service condition is complete and recognizes compensation cost on the straight-line basis over the requisite service period. | |||||||||||||||||
The Company estimates forfeitures and recognizes compensation cost only for those awards expected to vest assuming all awards would vest and reverses recognized compensation cost for forfeited awards when the awards are actually forfeited. | |||||||||||||||||
For awards with service conditions and graded vesting that were granted prior to the adoption of ASC 718, the Company estimates the requisite service period and the number of shares expected to vest, and recognizes compensation expense for each tranche on the straight-line basis over the estimated requisite service period. | |||||||||||||||||
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | |||||||||||||
Note 13. Related Party Transactions | ||||||||||||||
Effective January 1, 2010, the Company began sub-leasing office space from Melco Services Limited, a wholly-owned subsidiary of Melco International Development Limited, which is also the parent of the Company’s principal shareholder, EGT Entertainment Holding. This sub-lease expired at the end of March 2013 and, subsequently, the Company moved its principal executive office to the premises of the new Hong Kong Dolphin facilities. The relocation of the Company’s principal executive office serves to minimize costs and improve oversight of the Dolphin operations. | ||||||||||||||
On April 21, 2008, the Company entered into a Trade Credit Facility Agreement (the “Facility Agreement”) with Elixir International Limited, a company which used to be a wholly-owned subsidiary of EGT Entertainment Holding, the Company’s principal shareholder. Upon entering into the Agreement, the Company issued the first note pursuant to the terms of the Facility Agreement in the principal amount of $15.0 million. This amount extinguished a then trade payable of an equivalent amount to Elixir International with respect to EGMs previously acquired. | ||||||||||||||
As a result of the disposal of Elixir International by EGT Entertainment Holding, Elixir International Limited assigned and novated all its rights and obligations under the Facility Agreement and the related promissory note (as amended) to EGT Entertainment Holding in April 2010. | ||||||||||||||
Subsequent to its origination, the Facility Agreement was amended three times, mostly recently on May 25, 2010 on which date the Company issued a new note to replace the previous terms. Under these most recent terms, the Company paid total principal and interest of approximately $6.2 million and $143,000, respectively in equal monthly installments to EGT Entertainment Holding for the year ended December 31, 2012. As of December 31, 2012, the notes payable to EGT Entertainment Holding were fully settled. | ||||||||||||||
Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: | ||||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
EGT Entertainment Holding | ||||||||||||||
Principal and interest payments | $ | — | $ | 1,588 | $ | — | $ | 4,765 | ||||||
Melco Crown Gaming (Macau) Limited | ||||||||||||||
Trade sales of gaming products | $ | 185 | $ | — | $ | 815 | $ | 616 | ||||||
Melco Services Limited | ||||||||||||||
Technical services | $ | 1 | $ | 8 | $ | 10 | $ | 24 | ||||||
Office rental | 2 | 38 | 51 | 113 | ||||||||||
Golden Future (Management Services) Ltd | ||||||||||||||
Management services | $ | 59 | $ | — | $ | 80 | $ | — | ||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Note 14. Income Taxes | |
The Company recorded income tax benefit/(expense) of approximately $11,000 and $(34,000) and $(38,000) and $(124,000) for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The Company’s effective income tax rates were (3.4)% and 49.3% and 3.9% and (9.3)% for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The Company’s EGT Cambodia and Dreamworld Casino (Pailin) operations are tax exempt, paying a fixed monthly tax rather than a tax on income. The change in effective tax rate was mainly due to an increase in consolidated pre-tax loss. | |
The Company has been subjected to income tax examinations by tax authorities in jurisdictions in which it operates. During the years ended December 31, 2011 and 2012, the United States Internal Revenue Service (the “IRS”) conducted an audit of the Company’s 2008 and 2009 tax returns in the United States. On January 23, 2013, the IRS formally notified the Company that it had completed the review of the examination of the above-mentioned years with no changes to the Company’s tax position. | |
The Company’s 2008 to 2012 Australian income tax returns remain open to examination by the Australian Taxation Office. The Company’s 2009 to 2012 Cambodian income tax returns remain open to examination by the General Department of Taxation. The Company’s 2009 to 2012 Philippines income tax returns remain open to examination by the Philippines Bureau of Internal Revenue. | |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | |||||||||||||
Note 15. Discontinued Operations | ||||||||||||||
From July 2006 until March 2013, the Company conducted the development, manufacture and sale of gaming chips and plaques from its subsidiary, Dolphin Products Pty Limited (“Dolphin Australia”) in Melbourne, Australia. It also conducted the development, manufacture and sale of non-gaming plastic products for a number of industries, including the automotive industry, from the Melbourne facility. | ||||||||||||||
On February 22, 2013, the Company entered into a Share Sale Agreement with the then general manager of the Dolphin Australia operations, pursuant to which it agreed to sell him the portion of its business dedicated to the non-gaming plastic products, mainly automotive parts. The sale was completed on March 28, 2013. In connection with the sale of non-gaming operations, the Company relocated its gaming products operations, which included gaming chips and plaques, from Melbourne, Australia to Hong Kong. Commercial production in the new facility commenced in May 2013. | ||||||||||||||
Prior to the completion of the sale, the Company transferred out of Dolphin Australia to Elixir Gaming Technologies (Hong Kong) Limited and a newly formed Dolphin Products Limited company in Hong Kong, both of which are subsidiaries wholly-owned by the Company, all inventory on hand and all assets and operations relating to the Company’s gaming chips and plaques operations, including all trademarks, patent rights and other intellectual property. | ||||||||||||||
The purchase price received pursuant to the Share Sale Agreement was AUD350,000. The Company also agreed to assume Dolphin Australia’s liabilities for (i) severance under Australian labor laws for those employees to be terminated by Dolphin Australia as part of the transactions, approximately $750,000, (ii) the lease for the Melbourne facility through the end of its present term expiring in January 2014, net of sub-lease income, approximately $350,000, and (iii) all Dolphin Australia payables, net of receivables, relating to both gaming and non-gaming operations up to March 28, 2013. | ||||||||||||||
The buyer owed the Company $1.1 million for the settlement of working capital related to the sale of the non-gaming Dolphin assets. As of September 30, 2013, the outstanding balance was approximately $27,000. | ||||||||||||||
As part of the sale transaction, the Company also agreed to grant Dolphin Australia a non-transferable, substantially royalty-free license to utilize certain trademarks and patent rights in connection with Dolphin Australia’s manufacture and sale of plastic products for the non-gaming industries. | ||||||||||||||
The following table details selected financial information for the discontinued operations in the consolidated statements of comprehensive income. | ||||||||||||||
Three-Month Periods | Nine-Month Periods | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Income from operations | $ | — | $ | 79 | $ | 188 | $ | 74 | ||||||
Loss on disposal | — | — | -2,442 | — | ||||||||||
Other income (1) | — | 67 | 146 | 218 | ||||||||||
Income tax benefit (2) | — | — | 28 | — | ||||||||||
Income/(loss) from discontinued operations, net of tax | $ | — | $ | 146 | $ | -2,080 | $ | 292 | ||||||
-1 | Other income represented recognized government grant income from discontinued operations. | |||||||||||||
-2 | Income tax benefit represented a reversal of previously recognized uncertain tax benefits. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Note 16. Commitments and Contingencies | |
Legal Matters | |
Prime Mover/Strata Litigation | |
On March 26, 2010, a complaint (as subsequently amended on May 28, 2010) (the “Complaint”) was filed by certain of the Company’s shareholders including Prime Mover Capital Partners L.P., Strata Fund L.P., Strata Fund Q.P. L.P., and Strata Offshore Fund, Ltd (collectively, the “Plaintiffs”) in the United States District Court for the Southern District of New York against certain defendants including the Company and certain other of our current and former directors and officers. | |
The Complaint alleges claims related to disclosures concerning the Company’s electronic gaming machine participation business (the “Slot Business”), including but not limited to the alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, violations of Nevada Revised Statutes Sections 90.580(e) and 90.660(3), breach of fiduciary duty, and negligent misrepresentations. The Plaintiffs allege that the Company and certain other defendants made false and misleading statements about the Slot Business in filings with the SEC, press releases, and other industry and investor conferences and meetings during the period from June 13, 2007 to August 13, 2008 and that the Plaintiffs then purchased the securities at the inflated prices and later suffered economic losses when the price of our securities decreased. | |
On June 22, 2011, the court dismissed all of the Plaintiffs’ claims except for two breach-of-contract counts against the Company. All claims against the current and former officers and directors were dismissed. On December 20, 2011 the Plaintiffs filed a second amended Complaint (the “Second Amended Complaint”) for re-pleading all the securities claims against the Company and all the relevant current and/or former officers and directors. | |
On September 27, 2012, the District Court dismissed Plaintiffs’ Second Amended Complaint in its entirety. On September 28, 2012, the clerk entered a judgment against the Plaintiffs. Accordingly, all claims against the Company and the current and former officers and directors, including the Plaintiffs’ breach of contract claims, were dismissed. | |
On October 25, 2012, the Plaintiffs filed a Notice of Appeal seeking review by the Second Circuit Court of Appeals of the District Court’s order and judgment dismissing the Second Amended Complaint. The parties have filed their respective briefs (the Plaintiffs did not file a reply brief, however) and requested oral argument. The Second Circuit granted the parties’ requests for oral argument, which is scheduled for December 10, 2013. The Second Circuit has the ability to affirm or reverse the District Court’s order and judgment in whole or in part, and can decide to reinstate some or all of the claims from Plaintiffs’ Second Amended Complaint. | |
The Plaintiffs seek unspecified damages, as well as interest, costs and attorneys’ fees. The Company intends to defend itself vigorously against the Plaintiffs’ claims. As the litigation is at a preliminary stage, it is not possible to predict the likely outcome of the case or the probable loss, if any, or the continuation of insurance coverage and, accordingly, no accrual has been made for any possible losses in connection with this matter. | |
LossEarnings_Per_Share
(Loss)/Earnings Per Share | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||||
Note 17. (Loss)/Earnings Per Share | |||||||||||||||||||
Computation of the basic and diluted (loss)/earnings per share from continuing operations consisted of the following: | |||||||||||||||||||
Three-Month Periods Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(amounts in thousands, except per share data) | Loss | Number of | Per Share | Loss | Number of | Per Share | |||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Basic | |||||||||||||||||||
Net loss attributable to | $ | -309 | 30,025 | $ | -0.01 | $ | -103 | 29,926 | $ | — | |||||||||
equity shareholders | |||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||
Dilutive stock options/restricted | — | — | |||||||||||||||||
shares (1) | |||||||||||||||||||
Diluted | |||||||||||||||||||
Net loss attributable to | $ | -309 | 30,025 | $ | -0.01 | $ | -103 | 29,926 | $ | — | |||||||||
equity shareholders plus | |||||||||||||||||||
assumed conversion | |||||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(amounts in thousands, except per share data) | Loss | Number of | Per Share | Income | Number of | Per Share | |||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Basic | |||||||||||||||||||
Net (loss)/income attributable to | $ | -1,022 | 30,024 | $ | -0.03 | $ | 1,207 | 29,915 | $ | 0.04 | |||||||||
equity shareholders | |||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||
Dilutive stock options/restricted | — | 878 | |||||||||||||||||
shares (1) | |||||||||||||||||||
Diluted | |||||||||||||||||||
Net (loss)/income attributable to | $ | -1,022 | 30,024 | $ | -0.03 | $ | 1,207 | 30,793 | $ | 0.04 | |||||||||
equity shareholders plus | |||||||||||||||||||
assumed conversion | |||||||||||||||||||
-1 | For the three-month and nine-month periods ended September 30, 2013, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. | ||||||||||||||||||
Outstanding stock options for 2,425,072 and 1,412,220 shares of common stock were excluded from the calculation of diluted earnings per share for the three-month periods ended September 30, 2013 and 2012, respectively as their effect would have been anti-dilutive. Outstanding stock options for 2,425,072 and 1,935,903 shares of common stock were excluded from the calculation of diluted earnings per share for the nine-month periods ended September 30, 2013 and 2012, respectively as their effect would have been anti-dilutive. | |||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Comprehensive Income Loss Disclosure [Abstract] | ' | ||||||||||
Comprehensive Income (Loss) Note [Text Block] | ' | ||||||||||
Note 18. Accumulated Other Comprehensive Income | |||||||||||
The accumulated balances in respect of other comprehensive income consisted of the following: | |||||||||||
(amounts in thousands) | Unrealized | Foreign | Accumulated | ||||||||
Actuarial | Currency | Other | |||||||||
Income | Translation | Comprehensive | |||||||||
Income | |||||||||||
Balances, January 1, 2012 | $ | -14 | $ | 573 | $ | 559 | |||||
Current period other comprehensive income | 76 | 294 | 370 | ||||||||
Balances, December 31, 2012 | 62 | 867 | 929 | ||||||||
Current period other comprehensive loss | — | -244 | -244 | ||||||||
Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary (1) | — | 32 | 32 | ||||||||
Balances, September 30, 2013 | $ | 62 | $ | 655 | $ | 717 | |||||
(1) Amount represented reclassification from accumulated other comprehensive income to net loss from discontinued operations on disposal of a subsidiary. | |||||||||||
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | |||||||||||||
Basis of Presentation | ||||||||||||||
These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 filed with the SEC on March 28, 2013. Certain previously reported amounts have been reclassified to conform to the current period presentation. | ||||||||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of June 12, 2012. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. | ||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | |||||||||||||
Principles of Consolidation | ||||||||||||||
These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | ||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||||||||
Use of Estimates | ||||||||||||||
The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. | ||||||||||||||
Discontinued Operations, Policy [Policy Text Block] | ' | |||||||||||||
Discontinued Operations | ||||||||||||||
A discontinued operation is a component of an entity that either has been disposed of, or that is classified as held for sale, and (i) represents a separate major line of business or geographical area of operations; and (ii) is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively with a view to resale. | ||||||||||||||
Non-current assets held for discontinued operations are carried at the lower of carrying amount or fair value less costs to sell. Any gain or loss from disposal of a business, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Company's consolidated statements of comprehensive income and related notes for all years presented. | ||||||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||
All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2013, the Company had deposits in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $4.4 million. | ||||||||||||||
Accounts Receivable And Allowance For Doubtful Accounts [Policy Text Block] | ' | |||||||||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||||||||||
Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. | ||||||||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||||||||
Inventories | ||||||||||||||
Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. | ||||||||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||||||||
Long-Lived Assets | ||||||||||||||
The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) ASC 360, Property, Plant and Equipment. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such instances, the Company estimates the undiscounted future cash flows that result from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset, determined principally using discounted cash flows. There were no impairment charges for long-lived assets for the three-month and nine-month periods ended September 30, 2013. Impairment charges of approximately $42,000 and $114,000 were recognized for long-lived assets for the three-month and nine-month periods ended September 30, 2012, respectively. | ||||||||||||||
Prepaid Deposits And Other Assets [Policy Text Block] | ' | |||||||||||||
Prepaids, Deposits and Other Assets | ||||||||||||||
Prepaids, deposits and other assets consist primarily of prepaid leases, prepaid value-added taxes in foreign countries, prepayments to suppliers, rental and utilities deposits and restricted cash as lease security. The Company had restricted cash in the amounts of $NIL and $331,000 as of September 30, 2013 and December 31, 2012, respectively, in the form of certificates of deposits as security on leases. | ||||||||||||||
Electronic Gaming Machines EGMs and Systems [Policy Text Block] | ' | |||||||||||||
Gaming Equipment | ||||||||||||||
Gaming equipment consists primarily of electronic gaming machines (EGMs) and systems. Gaming equipment is stated at cost. The Company depreciates new gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $981,000 and $1.2 million and $3.1 million and $3.5 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to twenty years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. | ||||||||||||||
Depreciation of property and equipment of approximately $194,000 and $22,000 and $475,000 and $54,000 was recorded in the cost of gaming operations in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Depreciation of property and equipment of approximately $100,000 and $22,000 and $208,000 and $55,000 was included in cost of gaming products in the consolidated statements of comprehensive income for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | |||||||||||||
Goodwill and Intangible Assets, Including Casino Contracts | ||||||||||||||
Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. | ||||||||||||||
Amortization expenses related to casino contracts were approximately $613,000 and $617,000 and $1.9 million and $1.8 million for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. Amortization expenses related to other gaming related intangibles were approximately $63,000 and $63,000 and $189,000 and $189,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as cost of gaming operations in the consolidated statements of comprehensive income. Amortization expenses related to technical know-how were approximately $7,000 and $6,000 and $20,000 and $9,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as cost of gaming products in the consolidated statements of comprehensive income. Amortization expenses related to patents and trademarks were approximately $6,000 and $6,000 and $18,000 and $18,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The amounts were accounted for as selling, general and administrative expenses in the consolidated statements of comprehensive income. | ||||||||||||||
The Company measures and tests finite-lived intangibles for impairment when there are indicators of impairment in accordance with ASC 360-10-05, Property, Plant and Equipment. | ||||||||||||||
The Company measures and tests Goodwill for impairment, at least annually in accordance with ASC 350-10-05, Intangibles — Goodwill and Other. | ||||||||||||||
Impairment testing for goodwill and other intangibles requires judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Additional Paid In Capital [Policy Text Block] | ' | |||||||||||||
Additional Paid-In-Capital | ||||||||||||||
During the nine-month period ended September, 30 2013, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation. | ||||||||||||||
Litigation And Other Contingencies [Policy Text Block] | ' | |||||||||||||
Litigation and Other Contingencies | ||||||||||||||
In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The status of a significant claim is summarized in Note 16. | ||||||||||||||
ASC 450, Contingencies, requires that liabilities for contingencies be recorded when it is probable that a liability has been incurred and that the amount can be reasonably estimated. Significant management judgment is required related to contingent liabilities and the outcome of litigation because both are difficult to predict. For a contingency for which an unfavorable outcome is reasonably possible and which is significant, the Company discloses the nature of the contingency and, when feasible, an estimate of the possible loss. | ||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes revenue when all of the following have been satisfied: | ||||||||||||||
· | Persuasive evidence of an arrangement exists; | |||||||||||||
· | The price to the customer is fixed and determinable; | |||||||||||||
· | Delivery has occurred and any acceptance terms have been fulfilled; | |||||||||||||
· | No significant contractual obligations remain; and | |||||||||||||
· | Collection is reasonably assured. | |||||||||||||
Gaming Revenue and Promotional Allowances | ||||||||||||||
The Company earns recurring gaming revenue from its slot and casino operations. | ||||||||||||||
For slot operations, the Company earns recurring gaming revenue by providing customers with EGMs and casino management systems which track game performance and provide statistics on installed EGMs owned by the Company and leased to venue owners. Revenues are recognized on the contractual terms of the slot agreements between the Company and the venue owners and are based on the Company’s share of net winnings, net of customer incentives and commitment fees. | ||||||||||||||
Revenues are recognized as earned with the exception of one of the Company’s venues in which revenues were recognized when the payment for net winnings was received as the collections from this venue were not reasonably assured. The slot contract with this venue owner was terminated on July 31, 2012 and the Company collected the balance of payments in the fourth quarter of 2012. | ||||||||||||||
Commitment fees paid to the venue operators relating to contract amendments which are not recoverable from daily net win are capitalized as assets and amortized as a reduction of revenue over the term of the amended contracts. The Company had commitment fee balances related to contract amendments of approximately $261,000 and $342,000 as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||
For casino operations, the Company’s revenues are measured by the aggregate net difference between gaming wins and losses, with liabilities recognized for funds deposited by customers before gaming play occurs and for chips in the customers’ possession, if any. Cash discounts, other cash incentives related to casino play and commissions rebated through junkets or tour guides, if any, to customers are recorded as a reduction to casino revenue. Consequently, the Company’s casino revenues are reduced by discounts and commissions. | ||||||||||||||
The Company does not accrue a jackpot liability for its slot machine base and progressive jackpots because it can avoid payment of such amounts. Regulations do not prohibit removal of gaming machines from the gaming floor without payment of such jackpots. | ||||||||||||||
Promotional allowances represent goods and services, which would be accounted for as revenue if sold, that a casino gives to customers as an inducement to gamble at that establishment. Such goods and services include food and beverages. The Company includes the retail value of promotional allowances in gross revenues and deducts it from gross revenues to reach net revenues on the face of the consolidated statements of comprehensive income. | ||||||||||||||
The Company also earns recurring gaming revenue by providing customers with table game equipment and casino management services owned and rendered by the Company and leased to the gaming promoters. | ||||||||||||||
Revenues from gaming table leasing arrangements are recognised as earned over the contractual terms of the arrangement between the Company and the gaming promoters. | ||||||||||||||
Gaming Products Sales | ||||||||||||||
The Company recognizes revenue from the sale of its gaming products to end users upon shipment against customer contracts or purchase orders. | ||||||||||||||
The Company also recognizes revenue from the sale of its products to end users on bill-and-hold arrangements when all of the following have been satisfied: | ||||||||||||||
⋅ | The risk of ownership must be passed to the buyer; | |||||||||||||
⋅ | The customer must have a fixed commitment to purchase the goods; | |||||||||||||
⋅ | The buyer, not the Company, must request that the transaction be on bill and hold basis; | |||||||||||||
⋅ | There must be a fixed schedule for the delivery of goods; | |||||||||||||
⋅ | The Company must not have specific performance obligations such that the earning process is not complete; | |||||||||||||
⋅ | The ordered goods must be segregated from the Company’s inventory and not subject to being used to fill other orders, and; | |||||||||||||
⋅ | The product must be complete and ready for shipment. | |||||||||||||
There were no sales related to bill-and-hold arrangements for both the three-month and nine-month periods ended September 30, 2013 and 2012. | ||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation, the Company recognizes stock-based compensation expenses for all service-based awards to employees and non-employee directors with graded vesting schedules on the straight-line basis over the requisite service period for the entire award. Estimates are revised if subsequent information indicates that forfeitures will differ from previous estimates, and the cumulative effect on compensation cost of a change in the estimated forfeitures is recognized in the period of the change. For non-employee awards, the Company remeasures compensation cost each period until the service condition is complete and recognizes compensation cost on the straight-line basis over the requisite service period. Option valuation models require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the fair value estimates. Judgment is required in estimating stock price volatility, forfeiture rates, expected dividends, and expected terms that options remain outstanding. For restricted stock awards with performance conditions, the Company evaluates if performance conditions are probable in each reporting period. The compensation expense of restricted awards is recognized ratably over the implicit service period if achieving performance conditions is probable. Cumulative catch-up adjustments are required in the event of changes in assessment of probability. See Note 12 for additional information relating to stock-based compensation assumptions. Stock-based compensation expense totaled approximately $109,000 and $123,000 and $554,000 and $675,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Product Development [Policy Text Block] | ' | |||||||||||||
Product Development | ||||||||||||||
Product development expenses are charged to expense as incurred. Employee related costs associated with product development are included in product development expenses. Product development expenses were approximately $51,000 and $87,000 and $206,000 and $273,000 for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. The decrease was primarily a result of reduced product development activities for the gaming products division during the relocation and early operation of the new manufacturing facilities in Hong Kong during the nine-month period ended September 30, 2013. | ||||||||||||||
Lease, Policy [Policy Text Block] | ' | |||||||||||||
Leases | ||||||||||||||
Leases are classified at the inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions exists: | ||||||||||||||
⋅ | Ownership is transferred to the lessee by the end of the lease term; | |||||||||||||
⋅ | There is a bargain purchase option; | |||||||||||||
⋅ | The lease term is at least 75% of the property’s estimated remaining economic life; or | |||||||||||||
⋅ | The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. | |||||||||||||
A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of September 30, 2013. | ||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||||||||
Income Taxes | ||||||||||||||
The Company is subject to income taxes in the United States (including federal and state) and several foreign jurisdictions in which it operates. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax basis and are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. ASC 740, Income Taxes, requires that deferred tax assets be evaluated for future realization and reduced by a valuation allowance to the extent the Company believes a portion will not be realized. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience and expectations of future taxable income by taxing jurisdiction, the carry-forward periods available to the Company for tax reporting purposes, and other relevant factors. | ||||||||||||||
The Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach to recognizing and measuring uncertain tax positions. 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 audit, 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 to be realized upon ultimate settlement. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments and which may not accurately anticipate actual outcomes. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes in the statements of comprehensive income. | ||||||||||||||
On December 31, 2010, the Company effected a Quasi-Reorganization. As of that date, the Company’s deferred taxes were reported in conformity with applicable income tax accounting standards described above, net of applicable valuation allowances. Deferred tax assets and liabilities were recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities with corresponding valuation allowances as appropriate. In accordance with the Quasi-Reorganization requirements, pre-existing tax benefits realized subsequent to the Quasi-Reorganization are recorded directly in equity. | ||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||||||||
(Loss)/Earnings Per Share | ||||||||||||||
Basic (loss)/earnings per share are computed by dividing the reported net (loss)/earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive. There is no difference in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. | ||||||||||||||
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' | |||||||||||||
Foreign Currency Translations and Transactions | ||||||||||||||
The functional currency of the Company’s international subsidiaries, except for its operations in Cambodia whose functional currency is the U.S. dollar, is generally the local currency. For these subsidiaries, the Company translates the assets and liabilities at exchange rates in effect at the balance sheet date and income and expense accounts at average exchange rates during the year. Resulting currency translation adjustments are recorded directly to accumulated other comprehensive income within stockholders’ equity. Gains and losses resulting from transactions in non-functional currencies are recorded in the consolidated statements of comprehensive income. | ||||||||||||||
Below is a summary of closing exchange rates as of September 30, 2013 and December 31, 2012 and average exchange rates for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
($1 to foreign currency) | September 30, 2013 | December 31, 2012 | ||||||||||||
Australian dollar | 1.07 | 0.96 | ||||||||||||
Philippine peso | 43.31 | 41.19 | ||||||||||||
Hong Kong dollar | 7.75 | 7.75 | ||||||||||||
Thai baht | 31.4 | 30.84 | ||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
($1 to foreign currency) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Australian dollar | 1.09 | 0.96 | 1.02 | 0.97 | ||||||||||
Philippine peso | 43.73 | 42.03 | 42.16 | 42.7 | ||||||||||
Hong Kong dollar | 7.76 | 7.76 | 7.76 | 7.76 | ||||||||||
Thai baht | 31.51 | 31.44 | 30.47 | 31.35 | ||||||||||
Fair Value Measurement, Policy [Policy Text Block] | ' | |||||||||||||
Fair Value Measurements | ||||||||||||||
Fair value is defined under ASC 820, Fair Value Measurements and Disclosures, as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard establishes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable. | ||||||||||||||
⋅ | Level 1 — Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. | |||||||||||||
⋅ | Level 2 — Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. | |||||||||||||
⋅ | Level 3 — Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. | |||||||||||||
As of September 30, 2013, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximate carrying values due to the short maturity of these items. | ||||||||||||||
Guarantees [Policy Text Block] | ' | |||||||||||||
Guarantees | ||||||||||||||
The Company recognizes a guarantee at its inception which is the greater of (i) the fair value of the guarantee and (ii) the contingent liability amount. The fair value of a guarantee is determined by using expected present value measurement techniques. The initial liability recognized is amortized over the guarantee period. The Company does not accrue any guarantee liabilities as of the balance sheet dates. | ||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||||||||
Recently Issued Accounting Standards | ||||||||||||||
In February 2013, the FASB issued ASU 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements. However, the amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement when net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2012. The Company has adopted this update (see Note 18 – “Accumulated Other Comprehensive Income.”) | ||||||||||||||
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||
Foreign Currency Translations and Transactions [Table Text Block] | ' | |||||||||||||
Below is a summary of closing exchange rates as of September 30, 2013 and December 31, 2012 and average exchange rates for the three-month and nine-month periods ended September 30, 2013 and 2012, respectively. | ||||||||||||||
($1 to foreign currency) | September 30, 2013 | December 31, 2012 | ||||||||||||
Australian dollar | 1.07 | 0.96 | ||||||||||||
Philippine peso | 43.31 | 41.19 | ||||||||||||
Hong Kong dollar | 7.75 | 7.75 | ||||||||||||
Thai baht | 31.4 | 30.84 | ||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
($1 to foreign currency) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Australian dollar | 1.09 | 0.96 | 1.02 | 0.97 | ||||||||||
Philippine peso | 43.73 | 42.03 | 42.16 | 42.7 | ||||||||||
Hong Kong dollar | 7.76 | 7.76 | 7.76 | 7.76 | ||||||||||
Thai baht | 31.51 | 31.44 | 30.47 | 31.35 | ||||||||||
Segments_Tables
Segments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | ' | |||||||||||||
The accounting policies of these segments are consistent with the Company’s policies for the accompanying consolidated financial statements. | ||||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Revenues: | ||||||||||||||
Gaming operations | $ | 4,546 | $ | 4,480 | $ | 15,505 | $ | 14,634 | ||||||
Gaming products | 1,106 | 1,718 | 2,695 | 3,228 | ||||||||||
Total revenues | $ | 5,652 | $ | 6,198 | $ | 18,200 | $ | 17,862 | ||||||
Operating (loss)/income: | ||||||||||||||
Gaming operations gross profit (1) | $ | 1,513 | $ | 1,479 | $ | 5,213 | $ | 6,442 | ||||||
Gaming products gross profit/(loss) | -25 | 192 | -477 | 472 | ||||||||||
Corporate and other operating costs and expenses | -1,769 | -1,776 | -5,502 | -5,797 | ||||||||||
Total operating (loss)/income | $ | -281 | $ | -105 | $ | -766 | $ | 1,117 | ||||||
Depreciation and amortization: | ||||||||||||||
Gaming operations | $ | 1,867 | $ | 1,968 | $ | 5,672 | $ | 5,668 | ||||||
Gaming products | 130 | 36 | 276 | 86 | ||||||||||
Corporate | 11 | 10 | 26 | 29 | ||||||||||
Total depreciation and amortization | $ | 2,008 | $ | 2,014 | $ | 5,974 | $ | 5,783 | ||||||
-1 | Gaming operations gross profit included impairment of assets for the three-month and nine-month periods ended September 30, 2012. | |||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||
Geographic segment revenues for the three-month and nine-month periods ended September 30, 2013 and 2012 consisted of the following: | ||||||||||||||
Three-Month Periods | Nine-Month Periods | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Cambodia | $ | 3,759 | $ | 3,609 | $ | 13,011 | $ | 11,971 | ||||||
Macau | 185 | 84 | 886 | 748 | ||||||||||
Philippines | 1,186 | 871 | 3,445 | 2,941 | ||||||||||
Australia | 517 | 1,610 | 680 | 2,111 | ||||||||||
Other | 5 | 24 | 178 | 91 | ||||||||||
$ | 5,652 | $ | 6,198 | $ | 18,200 | $ | 17,862 | |||||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventories consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Raw materials | $ | 887 | $ | 867 | ||||
Work-in-process | 224 | 49 | ||||||
Finished goods | 216 | 924 | ||||||
Spare parts | 90 | 106 | ||||||
Casino inventories | 26 | 101 | ||||||
$ | 1,443 | $ | 2,047 | |||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Schedule Of Prepaid Expenses And Other Current Assets [Table Text Block] | ' | |||||||
Prepaid expenses and other current assets consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Prepayments to suppliers | $ | 252 | $ | 174 | ||||
Restricted cash | — | 168 | ||||||
Prepaid leases | 58 | 45 | ||||||
$ | 310 | $ | 387 | |||||
Receivables_Tables
Receivables (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule Of Accounts And Other Receivables [Table Text Block] | ' | |||||||
Accounts and other receivables consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Trade accounts | $ | 1,390 | $ | 1,856 | ||||
Other | 461 | 112 | ||||||
1,851 | 1,968 | |||||||
Less: allowance for doubtful accounts | — | -15 | ||||||
Net | $ | 1,851 | $ | 1,953 | ||||
Gaming_Equipment_Tables
Gaming Equipment (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Electronic Gaming Machines Egms and Systems Disclosure [Abstract] | ' | |||||||||
Disclosure Of Electronic Gaming Machines EGMs and Systems [Table Text Block] | ' | |||||||||
Gaming equipment is stated at cost. The major categories of gaming equipment and accumulated depreciation consisted of the following: | ||||||||||
(amounts in thousands) | Useful Life | September 30, 2013 | December 31, 2012 | |||||||
(years) | ||||||||||
(Unaudited) | ||||||||||
EGMs | 5-Mar | $ | 17,954 | $ | 16,222 | |||||
Systems | 5 | 1,625 | 1,093 | |||||||
Other gaming equipment | 5-Mar | 320 | 150 | |||||||
19,899 | 17,465 | |||||||||
Less: accumulated depreciation | -10,624 | -7,741 | ||||||||
$ | 9,275 | $ | 9,724 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Property and Equipment Disclosure [Abstract] | ' | |||||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||||
Property and equipment are stated at cost and consisted of the following: | ||||||||||
Useful Life | ||||||||||
(amounts in thousands) | (years) | September 30, 2013 | December 31, 2012 | |||||||
(Unaudited) | ||||||||||
Equipment, vehicles, furniture and fixtures | 10-Mar | $ | 4,384 | $ | 2,900 | |||||
Land and building | 20-May | 4,583 | 2,483 | |||||||
Leasehold improvements | 2-Jan | 882 | 180 | |||||||
Construction in progress | N/A | 638 | 1,477 | |||||||
10,487 | 7,040 | |||||||||
Less: accumulated depreciation | -1,317 | -870 | ||||||||
$ | 9,170 | $ | 6,170 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 9 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | |||||||||
Intangible assets, if any, are stated at cost. Intangible assets consisted of the following: | ||||||||||
Useful Life | ||||||||||
(amounts in thousands) | (years) | September 30, 2013 | December 31, 2012 | |||||||
(Unaudited) | ||||||||||
Gaming operation agreement | 5-Apr | $ | 1,193 | $ | 1,232 | |||||
Less: accumulated amortization | -504 | -315 | ||||||||
Goodwill | N/A | 362 | 380 | |||||||
Patents | 6-May | 114 | 114 | |||||||
Less: accumulated amortization | -56 | -42 | ||||||||
Trademarks | 9-May | 26 | 26 | |||||||
Less: accumulated amortization | -9 | -6 | ||||||||
Technical know-how | 10 | 261 | 259 | |||||||
Less: accumulated amortization | -35 | -15 | ||||||||
Casino contracts | 6-May | 12,819 | 12,934 | |||||||
Less: accumulated amortization | -6,751 | -4,952 | ||||||||
$ | 7,420 | $ | 9,615 | |||||||
Schedule of Goodwill [Table Text Block] | ' | |||||||||
Goodwill movements during the periods consisted of the following: | ||||||||||
(amounts in thousands) | 2013 | 2012 | ||||||||
(Unaudited) | ||||||||||
Balance as of January 1 | $ | 380 | $ | 357 | ||||||
Foreign currency translation adjustment | -18 | 23 | ||||||||
Balance as of September 30/December 31 | $ | 362 | $ | 380 | ||||||
Prepaids_Deposits_and_Other_As1
Prepaids, Deposits and Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Prepaids Deposits and Other Assets Disclosure [Abstract] | ' | |||||||
Schedule Of Prepaid Deposits And Other Assets [Table Text Block] | ' | |||||||
Prepaids, deposits and other assets consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Prepaid taxes | $ | 981 | $ | 922 | ||||
Prepaid leases | 717 | 747 | ||||||
Prepayments to suppliers | 506 | 585 | ||||||
Deposits on EGM orders | 26 | 257 | ||||||
Rentals, utilities and other deposits | 416 | 240 | ||||||
Restricted cash | — | 163 | ||||||
$ | 2,646 | $ | 2,914 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | |||||||
Accrued expenses consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Payroll and related costs | $ | 197 | $ | 1,292 | ||||
Legal, accounting and tax | 359 | 336 | ||||||
Withholding tax expenses | 550 | 514 | ||||||
Rental expenses | 34 | — | ||||||
Raw materials | 173 | — | ||||||
Other | 436 | 477 | ||||||
$ | 1,749 | $ | 2,619 | |||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Other Liabilities [Abstract] | ' | |||||||
Schedule of Other Assets and Other Liabilities [Table Text Block] | ' | |||||||
Other liabilities consisted of the following: | ||||||||
(amounts in thousands) | September 30, 2013 | December 31, 2012 | ||||||
(Unaudited) | ||||||||
Other tax liabilities | $ | 667 | $ | 555 | ||||
Provision for long service leave (1) | — | 369 | ||||||
Others | 83 | 154 | ||||||
$ | 750 | $ | 1,078 | |||||
-1 | Provision for long service leave was settled during the sale of the non-gaming operations in March 2013. | |||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
A summary of all current and expired plans as of September 30, 2013 and changes during the period then ended consisted of the following: | |||||||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||||||
Shares | Average | Average | Intrinsic Value | ||||||||||||||
Exercise | Remaining | (in thousands) | |||||||||||||||
Price | Contractual | ||||||||||||||||
Life | |||||||||||||||||
(in years) | |||||||||||||||||
Outstanding as of December 31, 2012 | 2,956,738 | $ | 2.13 | 6.13 | $ | 2,293 | |||||||||||
Granted | 360,000 | 1.93 | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -16,666 | 2.16 | — | — | |||||||||||||
Outstanding as of September 30, 2013 | 3,300,072 | 2.11 | 5.61 | 738 | |||||||||||||
Exercisable as of September 30, 2013 | 2,792,155 | $ | 2.18 | 5.08 | $ | 738 | |||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | ' | ||||||||||||||||
Restricted Stock | |||||||||||||||||
Number of | Weighted | Weighted | |||||||||||||||
shares | Average | Average | |||||||||||||||
Fair Value at | Remaining | ||||||||||||||||
Grant Date | Contractual Life | ||||||||||||||||
(in years) | |||||||||||||||||
Unvested balance as of December 31, 2012 | — | $ | — | — | |||||||||||||
Granted | 50,000 | 1.97 | 0.25 | ||||||||||||||
Vested (1) | -37,500 | 1.97 | 0.25 | ||||||||||||||
Unvested balance as of September 30, 2013 | 12,500 | $ | 1.97 | 0.25 | |||||||||||||
(1) Vested shares included 37,500 shares of restricted common stock issued in 2013 for which final vesting is subject to the approval by the Company’s compensation committee. | |||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||||||||||
The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the nine-month periods ended September 30, 2013 and 2012. | |||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Range of values: | Low | High | Low | High | |||||||||||||
Expected volatility | 73.41 | % | 76.49 | % | 79.15 | % | 127.83 | % | |||||||||
Expected dividends | — | — | — | — | |||||||||||||
Expected term (in years) | 3.73 | 9.7 | 3.73 | 9.97 | |||||||||||||
Risk free rate | 0.55 | % | 2.67 | % | 0.56 | % | 1.95 | % | |||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||
Schedule Of Transactions With Related Parties [Table Text Block] | ' | |||||||||||||
Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: | ||||||||||||||
Three-Month Periods Ended September 30, | Nine-Month Periods Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
EGT Entertainment Holding | ||||||||||||||
Principal and interest payments | $ | — | $ | 1,588 | $ | — | $ | 4,765 | ||||||
Melco Crown Gaming (Macau) Limited | ||||||||||||||
Trade sales of gaming products | $ | 185 | $ | — | $ | 815 | $ | 616 | ||||||
Melco Services Limited | ||||||||||||||
Technical services | $ | 1 | $ | 8 | $ | 10 | $ | 24 | ||||||
Office rental | 2 | 38 | 51 | 113 | ||||||||||
Golden Future (Management Services) Ltd | ||||||||||||||
Management services | $ | 59 | $ | — | $ | 80 | $ | — | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||||
The following table details selected financial information for the discontinued operations in the consolidated statements of comprehensive income. | ||||||||||||||
Three-Month Periods | Nine-Month Periods | |||||||||||||
Ended September 30, | Ended September 30, | |||||||||||||
(amounts in thousands) | 2013 | 2012 | 2013 | 2012 | ||||||||||
Income from operations | $ | — | $ | 79 | $ | 188 | $ | 74 | ||||||
Loss on disposal | — | — | -2,442 | — | ||||||||||
Other income (1) | — | 67 | 146 | 218 | ||||||||||
Income tax benefit (2) | — | — | 28 | — | ||||||||||
Income/(loss) from discontinued operations, net of tax | $ | — | $ | 146 | $ | -2,080 | $ | 292 | ||||||
-1 | Other income represented recognized government grant income from discontinued operations. | |||||||||||||
-2 | Income tax benefit represented a reversal of previously recognized uncertain tax benefits. | |||||||||||||
LossEarnings_Per_Share_Tables
(Loss)/Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||||
Computation of the basic and diluted (loss)/earnings per share from continuing operations consisted of the following: | |||||||||||||||||||
Three-Month Periods Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(amounts in thousands, except per share data) | Loss | Number of | Per Share | Loss | Number of | Per Share | |||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Basic | |||||||||||||||||||
Net loss attributable to | $ | -309 | 30,025 | $ | -0.01 | $ | -103 | 29,926 | $ | — | |||||||||
equity shareholders | |||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||
Dilutive stock options/restricted | — | — | |||||||||||||||||
shares (1) | |||||||||||||||||||
Diluted | |||||||||||||||||||
Net loss attributable to | $ | -309 | 30,025 | $ | -0.01 | $ | -103 | 29,926 | $ | — | |||||||||
equity shareholders plus | |||||||||||||||||||
assumed conversion | |||||||||||||||||||
Nine-Month Periods Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
(amounts in thousands, except per share data) | Loss | Number of | Per Share | Income | Number of | Per Share | |||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||
Basic | |||||||||||||||||||
Net (loss)/income attributable to | $ | -1,022 | 30,024 | $ | -0.03 | $ | 1,207 | 29,915 | $ | 0.04 | |||||||||
equity shareholders | |||||||||||||||||||
Effect of dilutive securities | |||||||||||||||||||
Dilutive stock options/restricted | — | 878 | |||||||||||||||||
shares (1) | |||||||||||||||||||
Diluted | |||||||||||||||||||
Net (loss)/income attributable to | $ | -1,022 | 30,024 | $ | -0.03 | $ | 1,207 | 30,793 | $ | 0.04 | |||||||||
equity shareholders plus | |||||||||||||||||||
assumed conversion | |||||||||||||||||||
-1 | For the three-month and nine-month periods ended September 30, 2013, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. | ||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Comprehensive Income Loss Disclosure [Abstract] | ' | ||||||||||
Schedule of Comprehensive Income (Loss) [Table Text Block] | ' | ||||||||||
The accumulated balances in respect of other comprehensive income consisted of the following: | |||||||||||
(amounts in thousands) | Unrealized | Foreign | Accumulated | ||||||||
Actuarial | Currency | Other | |||||||||
Income | Translation | Comprehensive | |||||||||
Income | |||||||||||
Balances, January 1, 2012 | $ | -14 | $ | 573 | $ | 559 | |||||
Current period other comprehensive income | 76 | 294 | 370 | ||||||||
Balances, December 31, 2012 | 62 | 867 | 929 | ||||||||
Current period other comprehensive loss | — | -244 | -244 | ||||||||
Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary (1) | — | 32 | 32 | ||||||||
Balances, September 30, 2013 | $ | 62 | $ | 655 | $ | 717 | |||||
(1) Amount represented reclassification from accumulated other comprehensive income to net loss from discontinued operations on disposal of a subsidiary. | |||||||||||
Description_of_Business_and_Si3
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Australian Dollar [Member] | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 1.07 | ' | 1.07 | ' | 0.96 |
Average Foreign Currency Exchange Rate Translation | 1.09 | 0.96 | 1.02 | 0.97 | ' |
Philippine Peso [Member] | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 43.31 | ' | 43.31 | ' | 41.19 |
Average Foreign Currency Exchange Rate Translation | 43.73 | 42.03 | 42.16 | 42.7 | ' |
Hong Kong Dollar [Member] | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 7.75 | ' | 7.75 | ' | 7.75 |
Average Foreign Currency Exchange Rate Translation | 7.76 | 7.76 | 7.76 | 7.76 | ' |
Thai baht [Member] | ' | ' | ' | ' | ' |
Foreign Currency Exchange Rate, Translation | 31.4 | ' | 31.4 | ' | 30.84 |
Average Foreign Currency Exchange Rate Translation | 31.51 | 31.44 | 30.47 | 31.35 | ' |
Description_of_Business_and_Si4
Description of Business and Significant Accounting Policies (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Cash, FDIC Insured Amount | $4,400,000 | ' | $4,400,000 | ' | ' |
Restricted Deposits and Investments, Noncurrent | 0 | ' | 0 | ' | 331,000 |
Casino contract amortization | 613,000 | 617,000 | 1,851,000 | 1,847,000 | ' |
Commitment | 261,000 | ' | 261,000 | ' | 342,000 |
Stock-based compensation expenses | 109,000 | 123,000 | 554,000 | 675,000 | ' |
Product development expenses | 51,000 | 87,000 | 206,000 | 273,000 | ' |
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | ' | ' | 50.00% | ' | ' |
Cost of Goods Sold, Depreciation | 194,000 | 22,000 | 475,000 | 54,000 | ' |
Gaming and property equipment depreciation | 1,175,000 | 1,228,000 | 3,580,000 | 3,516,000 | ' |
Amortization of Intangible Assets | 7,000 | 6,000 | 20,000 | 9,000 | ' |
Lease Term Percentage | ' | ' | 75.00% | ' | ' |
Impairment of gaming assets, property and equipment | 0 | 42,000 | 0 | 114,000 | ' |
Present Value Of Future Minimum Lease Payments Percentage Description | ' | ' | '90% or more of the fair value of the leased property to the lessor at the inception date. | ' | ' |
Gaming Products [Member] | ' | ' | ' | ' | ' |
Cost of Goods Sold, Depreciation | 100,000 | 22,000 | 208,000 | 55,000 | ' |
Patents and Trademarks [Member] | ' | ' | ' | ' | ' |
Amortization of Intangible Assets | 6,000 | 6,000 | 18,000 | 18,000 | ' |
Other Gaming Related Intangible Assets [Member] | ' | ' | ' | ' | ' |
Amortization of Intangible Assets | $63,000 | $63,000 | $189,000 | $189,000 | ' |
Segments_Details
Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues: | $5,652 | $6,198 | $18,200 | $17,862 | ||||
Operating (loss)/income | -281 | -105 | -766 | 1,117 | ||||
Depreciation and amortization: | 2,008 | 2,014 | 5,974 | 5,783 | ||||
Gaming Operations [Member] | ' | ' | ' | ' | ||||
Revenues: | 4,546 | 4,480 | 15,505 | 14,634 | ||||
Operating (loss)/income | 1,513 | [1] | 1,479 | [1] | 5,213 | [1] | 6,442 | [1] |
Depreciation and amortization: | 1,867 | 1,968 | 5,672 | 5,668 | ||||
Gaming Products [Member] | ' | ' | ' | ' | ||||
Revenues: | 1,106 | 1,718 | 2,695 | 3,228 | ||||
Operating (loss)/income | -25 | 192 | -477 | 472 | ||||
Depreciation and amortization: | 130 | 36 | 276 | 86 | ||||
Corporate and Other Operating Costs and Expenses [Member] | ' | ' | ' | ' | ||||
Operating (loss)/income | -1,769 | -1,776 | -5,502 | -5,797 | ||||
Depreciation and amortization: | $11 | $10 | $26 | $29 | ||||
[1] | Gaming operations gross profit included impairment of assets for the three-month and nine-month periods ended September 30, 2012. |
Segments_Details_1
Segments (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | $5,652 | $6,198 | $18,200 | $17,862 |
Cambodia [Member] | ' | ' | ' | ' |
Revenues: | 3,759 | 3,609 | 13,011 | 11,971 |
Macau [Member] | ' | ' | ' | ' |
Revenues: | 185 | 84 | 886 | 748 |
Philippines [Member] | ' | ' | ' | ' |
Revenues: | 1,186 | 871 | 3,445 | 2,941 |
Australia [Member] | ' | ' | ' | ' |
Revenues: | 517 | 1,610 | 680 | 2,111 |
Other [Member] | ' | ' | ' | ' |
Revenues: | $5 | $24 | $178 | $91 |
Segments_Details_Textual
Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Largest customer in the gaming segment | 66.00% | 70.00% | 63.00% | 73.00% |
Largest customer in the other products segment | 36.00% | 93.00% | 22.00% | 48.00% |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Raw materials | $887 | $867 |
Work-in-process | 224 | 49 |
Finished goods | 216 | 924 |
Spare parts | 90 | 106 |
Casino inventories | 26 | 101 |
Inventory, Net | $1,443 | $2,047 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaid expenses and other current assets | $310 | $387 |
Prepayments to suppliers [Member] | ' | ' |
Prepaid expenses and other current assets | 252 | 174 |
Restricted cash [Member] | ' | ' |
Prepaid expenses and other current assets | 0 | 168 |
Prepaid leases [Member] | ' | ' |
Prepaid expenses and other current assets | $58 | $45 |
Receivables_Details
Receivables (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Trade accounts | $1,390 | $1,856 |
Other | 461 | 112 |
Accounts Receivable, Gross, Current | 1,851 | 1,968 |
Less: allowance for doubtful accounts | 0 | -15 |
Net | $1,851 | $1,953 |
Gaming_Equipment_Details
Gaming Equipment (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Gaming Equipment And Systems Gross | $19,899 | $17,465 |
Less: accumulated depreciation | -10,624 | -7,741 |
Electronic gaming machines and systems, net | 9,275 | 9,724 |
System [Member] | ' | ' |
Gaming Equipment And Systems Gross | 1,625 | 1,093 |
Gaming Equipment And Systems Useful Lives | '5 years | ' |
E G M [Member] | ' | ' |
Gaming Equipment And Systems Gross | 17,954 | 16,222 |
E G M [Member] | Minimum [Member] | ' | ' |
Gaming Equipment And Systems Useful Lives | '3 years | ' |
E G M [Member] | Maximum [Member] | ' | ' |
Gaming Equipment And Systems Useful Lives | '5 years | ' |
Other Gaming Equipment [Member] | ' | ' |
Gaming Equipment And Systems Gross | $320 | $150 |
Other Gaming Equipment [Member] | Minimum [Member] | ' | ' |
Gaming Equipment And Systems Useful Lives | '3 years | ' |
Other Gaming Equipment [Member] | Maximum [Member] | ' | ' |
Gaming Equipment And Systems Useful Lives | '5 years | ' |
Gaming_Equipment_Details_Textu
Gaming Equipment (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Gaming and property equipment depreciation | $1,175 | $1,228 | $3,580 | $3,516 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Leasehold Improvements [Member] | Leasehold Improvements [Member] | Land and Building [Member] | Land and Building [Member] | ||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||
Equipment, vehicles, furniture and fixtures | $4,384 | $2,900 | ' | ' | ' | ' | ' | ' |
Land and building | 4,583 | 2,483 | ' | ' | ' | ' | ' | ' |
Leasehold improvements | 882 | 180 | ' | ' | ' | ' | ' | ' |
Construction in progress | 638 | 1,477 | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Gross | 10,487 | 7,040 | ' | ' | ' | ' | ' | ' |
Less: accumulated depreciation | -1,317 | -870 | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Net | $9,170 | $6,170 | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | '3 years | '10 years | '1 year | '2 years | '5 years | '20 years |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Cost of Goods Sold, Depreciation | $194,000 | $22,000 | $475,000 | $54,000 |
Gaming Products [Member] | ' | ' | ' | ' |
Cost of Goods Sold, Depreciation | $100,000 | $22,000 | $208,000 | $55,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, including Casino Contracts (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Definite-life intangible assets | $7,420 | $9,615 |
Gaming Operation Agreement [Member] | ' | ' |
Definite-life intangible assets | 1,193 | 1,232 |
Less: accumulated amortization | -504 | -315 |
Gaming Operation Agreement [Member] | Maximum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years | ' |
Gaming Operation Agreement [Member] | Minimum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '4 years | ' |
Goodwill [Member] | ' | ' |
Definite-life intangible assets | 362 | 380 |
Trademarks [Member] | ' | ' |
Definite-life intangible assets | 26 | 26 |
Less: accumulated amortization | -9 | -6 |
Trademarks [Member] | Maximum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '9 years | ' |
Trademarks [Member] | Minimum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years | ' |
Patents [Member] | ' | ' |
Definite-life intangible assets | 114 | 114 |
Less: accumulated amortization | -56 | -42 |
Patents [Member] | Maximum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years | ' |
Patents [Member] | Minimum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years | ' |
Casino Contracts [Member] | ' | ' |
Definite-life intangible assets | 12,819 | 12,934 |
Less: accumulated amortization | -6,751 | -4,952 |
Casino Contracts [Member] | Maximum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '6 years | ' |
Casino Contracts [Member] | Minimum [Member] | ' | ' |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '5 years | ' |
Technical Know How [Member] | ' | ' |
Definite-life intangible assets | 261 | 259 |
Less: accumulated amortization | ($35) | ($15) |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | '10 years | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, including Casino Contracts (Details 1) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Balance as of January 1 | $380 | $357 |
Foreign currency translation adjustment | -18 | 23 |
Balance as of September 30/December 31 | $362 | $380 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Amortization Expense For Intangibles Including Casino Contracts | $688,000 | $693,000 | $2,100,000 | $2,100,000 |
Prepaids_Deposits_and_Other_As2
Prepaids, Deposits and Other Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Prepaids, deposits and other assets | $2,646 | $2,914 |
Prepaid taxes [Member] | ' | ' |
Prepaids, deposits and other assets | 981 | 922 |
Prepaid leases [Member] | ' | ' |
Prepaids, deposits and other assets | 717 | 747 |
Prepayment to suppliers [Member] | ' | ' |
Prepaids, deposits and other assets | 506 | 585 |
Deposits on EGM orders [Member] | ' | ' |
Prepaids, deposits and other assets | 26 | 257 |
Rental, utilities and other deposits [Member] | ' | ' |
Prepaids, deposits and other assets | 416 | 240 |
Restricted cash [Member] | ' | ' |
Prepaids, deposits and other assets | $0 | $163 |
Prepaids_Deposits_and_Other_As3
Prepaids, Deposits and Other Assets (Details Textual) (USD $) | Sep. 30, 2013 |
Cambodian Provinces Of Kampot [Member] | ' |
Prepaid Leases | $224,000 |
Cambodian Provinces Of Pailin [Member] | ' |
Prepaid Leases | $493,000 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payroll and related costs | $197 | $1,292 |
Legal, accounting and tax | 359 | 336 |
Withholding tax expenses | 550 | 514 |
Rental expenses | 34 | 0 |
Raw materials | 173 | 0 |
Other | 436 | 477 |
Totals | $1,749 | $2,619 |
Accrued_Expenses_Details_Textu
Accrued Expenses (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Australia [Member] | |||
Payroll and related costs | $197,000 | $1,292,000 | $726,000 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Other tax liabilities | $667 | $555 | ||
Provision for long service leave | 0 | [1] | 369 | [1] |
Others | 83 | 154 | ||
Other liabilities | $750 | $1,078 | ||
[1] | Provision for long service leave was settled during the sale of the non-gaming operations in March 2013. |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Outstanding as of December 31, 2012, Number of Shares | 2,956,738 | ' |
Granted, Number of Shares | 360,000 | ' |
Exercised, Number of Shares | 0 | ' |
Forfeited or expired, Number of Shares | -16,666 | ' |
Outstanding as of September 30, 2013, Number of Shares | 3,300,072 | 2,956,738 |
Exercisable as of September 30, 2013, Number of Shares | 2,792,155 | ' |
Outstanding as of December 31, 2012, Weighted Average Exercise Price (in dollars per share) | $2.13 | ' |
Granted, Weighted Average Exercise Price (in dollars per share) | $1.93 | ' |
Exercised, Weighted Average Exercise Price (in dollars per share) | $0 | ' |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | $2.16 | ' |
Outstanding as of September 30, 2013, Weighted Average Exercise Price (in dollars per share) | $2.11 | $2.13 |
Exercisable as of September 30, 2013, Weighted Average Exercise Price (in dollars per share) | $2.18 | ' |
Outstanding, Weighted Average Remaining Contractual Life (in years) | '5 years 7 months 10 days | '6 years 1 month 17 days |
Exercisable as of September 30, 2013, Weighted Average Remaining Contractual Life (in years) | '5 years 29 days | ' |
Outstanding as of December 31, 2012, Aggregate Intrinsic Value | $2,293 | ' |
Granted, Aggregate Intrinsic Value | 0 | ' |
Exercised, Aggregate Intrinsic Value | 0 | ' |
Forfeited or expired, Aggregate Intrinsic Value | 0 | ' |
Outstanding as of September 30, 2013, Aggregate Intrinsic Value | 738 | 2,293 |
Exercisable as of September 30, 2013, Aggregate Intrinsic Value | $738 | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | ||
Unvested balance as of December 31, 2012, Number of Shares | 0 | |
Granted, Number of Shares | 50,000 | |
Vested, Number of Shares | -37,500 | [1] |
Unvested balance as of June 30, 2013, Number of Shares | 12,500 | |
Unvested balance as of December 31, 2012, Weighted Average Fair Value at Grant Date | $0 | |
Granted, Weighted Average Fair Value at Grant Date | $1.97 | |
Vested, Weighted Average Fair Value at Grant Date | $1.97 | [1] |
Unvested balance as of June 30, 2013, Weighted Average Fair Value at Grant Date | $1.97 | |
Granted, Weighted Average Remaining Contractual Life (in years) | '3 months | |
Vested, Weighted Average Remaining Contractual Life (in years) | '3 months | [1] |
Unvested balance as of June 30, 2013, Weighted Average Remaining Contractual Life (in years) | '3 months | |
[1] | Vested shares included 37,500 shares of restricted common stock issued in 2013 for which final vesting is subject to the approval by the Company’s compensation committee. |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Expected volatility - Low | 73.41% | 79.15% |
Expected volatility - High | 76.49% | 127.83% |
Expected dividends - Low | 0.00% | 0.00% |
Expected dividends - High | 0.00% | 0.00% |
Risk free rate - Low | 0.55% | 0.56% |
Risk free rate - High | 2.67% | 1.95% |
Maximum [Member] | ' | ' |
Expected term (in years) | '9 years 8 months 12 days | '9 years 11 months 19 days |
Minimum [Member] | ' | ' |
Expected term (in years) | '3 years 8 months 23 days | '3 years 8 months 23 days |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 08, 2008 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 13, 2012 | Jul. 31, 2010 | Jul. 31, 2010 | Jul. 31, 2010 | Sep. 30, 2013 | Dec. 31, 2008 | Sep. 30, 2013 | Dec. 31, 2008 | |
Stock Option Plan 2008 [Member] | Stock Option Plan 2008 [Member] | Stock Option Plan 2008 [Member] | Stock Option Plan 2008 [Member] | Stock Option Plan 2008 [Member] | Stock Option Plan 2008 [Member] | Amended and Restated 1999 Stock Option Plan [Member] | Amended and Restated 1999 Stock Option Plan [Member] | Amended and Restated 1999 Directors Stock Option Plan [Member] | Amended and Restated 1999 Directors Stock Option Plan [Member] | ||||
Upto Ten Percentage Of Total Combined Voting Power [Member] | More Than Ten Percentage Of Total Combined Voting Power [Member] | ||||||||||||
Common Stock, Capital Shares Reserved for Future Issuance | ' | ' | 1,250,000 | ' | ' | 3,750,000 | 2,500,000 | ' | ' | ' | ' | ' | ' |
Maximum Exercise Price Percentage On Fair Market Value | ' | ' | ' | ' | ' | ' | ' | 100.00% | 110.00% | ' | ' | ' | ' |
Granted, Weighted Average Exercise Price, Options (in dollars per share) | $1.93 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value, Options | ' | ' | ' | $1.18 | $1.06 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, Number of Shares, Restricted Stock | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,750,000 | ' | 75,000 |
Outstanding, Number of Shares, Options | 3,300,072 | 2,956,738 | ' | 2,340,708 | ' | ' | ' | ' | ' | 936,864 | ' | 22,500 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $0.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable, Aggregate Intrinsic Value, Options | $738,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 747,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders' Equity, Reverse Stock Split | ' | '1-for-4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | $390,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | '1 year 9 months 29 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Trade sales of gaming products | $5,652 | $6,198 | $18,200 | $17,862 |
EGT Entertainment Holding [Member] | ' | ' | ' | ' |
Principal and interest payments | 0 | 1,588 | 0 | 4,765 |
Melco Crown Gaming Ltd [Member] | ' | ' | ' | ' |
Trade sales of gaming products | 185 | 0 | 815 | 616 |
Melco Services Limited [Member] | ' | ' | ' | ' |
Technical services | 1 | 8 | 10 | 24 |
Office rental | 2 | 38 | 51 | 113 |
Golden Future Ltd member [Member] | ' | ' | ' | ' |
Management services | $59 | $0 | $80 | $0 |
Related_Party_Transactions_Det1
Related Party Transactions (Details Textual) (USD $) | Apr. 21, 2008 | 25-May-10 | Dec. 31, 2012 |
Third Amended Note [Member] | Egt Entertainment Holding [Member] | ||
Debt Instrument, Face Amount | $15,000,000 | ' | ' |
Long-term Debt, Gross | ' | 6,200,000 | ' |
Debt Instrument, Periodic Payment, Interest | ' | ' | $143,000 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Expense (Benefit) | ($11) | $34 | $38 | $124 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | -3.40% | 49.30% | 3.90% | -9.30% |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Income from operations | $0 | $79 | $188 | $74 | ||||
Loss on disposal | 0 | 0 | -2,442 | 0 | ||||
Other income | 0 | [1] | 67 | [1] | 146 | [1] | 218 | [1] |
Income tax benefit | 0 | [2] | 0 | [2] | 28 | [2] | 0 | [2] |
Income/(loss) from discontinued operations, net of tax | $0 | $146 | ($2,080) | $292 | ||||
[1] | Other income represented recognized government grant income from discontinued operations. | |||||||
[2] | Income tax benefit represented a reversal of previously recognized uncertain tax benefits. |
Discontinued_Operations_Detail1
Discontinued Operations (Details Textual) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | Dolphin Australia [Member] | |
AUD | ||
Purchase Price For Share Sale Agreement | ' | 350,000 |
Net Of Sub lease Income | 350,000 | ' |
Employee Severance Liability Assumed | 750,000 | ' |
Discontinued Operation Amount Due | 1,100,000 | ' |
Discontinued Operation Amount Settled | $27,000 | ' |
LossEarnings_Per_Share_Details
(Loss)/Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Basic | ' | ' | ' | ' | ||||
Net(loss)/income attributable to equity shareholders - Loss/(income) | ($309) | ($103) | ($1,022) | $1,207 | ||||
Net(loss)/income attributable to equity shareholders - Number of Shares | 30,025 | 29,926 | 30,024 | 29,915 | ||||
Net(loss)/income attributable to equity shareholders, Per share Amount (in dollars per share) | ($0.01) | $0 | ($0.03) | $0.04 | ||||
Effect of dilutive securities | ' | ' | ' | ' | ||||
Dilutive stock options/restricted shares - Number of Shares | 0 | [1] | 0 | [1] | 0 | [1] | 878 | [1] |
Diluted | ' | ' | ' | ' | ||||
Net income attributable to equity shareholders plus assumed conversion - Loss/(income) | ($309) | ($103) | ($1,022) | $1,207 | ||||
Net income attributable to equity shareholders plus assumed conversion - Number of shares | 30,025 | 29,926 | 30,024 | 30,793 | ||||
Net income attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | ($0.01) | $0 | ($0.03) | $0.04 | ||||
[1] | For the three-month and nine-month periods ended September 30, 2013, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
LossEarnings_Per_Share_Details1
(Loss)/Earnings Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,425,072 | 1,412,220 | 2,425,072 | 1,935,903 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 9 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | |
Unrealized Actuarial Income, Balances | $62 | ($14) | |
Unrealized Actuarial Income, Current period other comprehensive income | 0 | 76 | |
Unrealized Actuarial Income, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 0 | [1] | ' |
Unrealized Actuarial Income, Balances | 62 | 62 | |
Foreign Currency Translation, Balances | 867 | 573 | |
Foreign Currency Translation, Current period other comprehensive income | -244 | 294 | |
Foreign Currency Translation, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 32 | [1] | ' |
Foreign Currency Translation, Balances | 655 | 867 | |
Accumulated Other Comprehensive Income, Balances | 929 | 559 | |
Accumulated Other Comprehensive Income, Current period other comprehensive (loss)/income | -244 | 370 | |
Accumulated Other Comprehensive Income, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 32 | [1] | ' |
Accumulated Other Comprehensive Income, Balances | $717 | $929 | |
[1] | Amount represented reclassification from accumulated other comprehensive income to net loss from discontinued operations on disposal of a subsidiary. |