Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 15, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Entity Registrant Name | Entertainment Gaming Asia Inc. | ||
Entity Central Index Key | 1004673 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | EGT | ||
Entity Common Stock, Shares Outstanding | 14,471,095 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $13,845,941 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $17,301 | $5,301 |
Accounts receivable, net | 830 | 922 |
Amounts due from related parties | 2,112 | 108 |
Other receivables | 316 | 453 |
Inventories | 2,617 | 1,663 |
Prepaid expenses and other current assets | 1,447 | 443 |
Total current assets | 24,623 | 8,890 |
Gaming equipment, net | 5,624 | 8,171 |
Casino contracts | 2,982 | 5,429 |
Property and equipment, net | 8,895 | 7,857 |
Goodwill | 351 | 353 |
Intangible assets, net | 595 | 899 |
Contract amendment fees | 126 | 234 |
Deferred tax assets | 142 | 0 |
Prepaids, deposits and other assets | 1,316 | 1,797 |
Total assets | 44,654 | 33,630 |
Current liabilities: | ||
Accounts payable | 645 | 840 |
Amount due to a related party | 47 | 19 |
Accrued expenses | 2,009 | 2,366 |
Customer deposits and other current liabilities | 306 | 457 |
Total current liabilities | 3,007 | 3,682 |
Other liabilities | 845 | 742 |
Deferred tax liability | 107 | 199 |
Total liabilities | 3,959 | 4,623 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $.001 par value, 18,750,000 shares authorized; 14,471,095 and 7,507,302 shares issued and outstanding | 14 | 7 |
Additional paid-in-capital | 47,680 | 33,179 |
Accumulated other comprehensive income | 753 | 742 |
Accumulated losses since January 1, 2011 ($386.1 million accumulated deficit eliminated) | -7,753 | -4,922 |
Total EGT stockholders' equity | 40,694 | 29,006 |
Non-controlling interest | 1 | 1 |
Total stockholder's equity | 40,695 | 29,007 |
Total liabilities and stockholders' equity | $44,654 | $33,630 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets [Parenthetical] (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 18,750,000 | 18,750,000 |
Common stock, shares issued | 14,471,095 | 7,507,302 |
Common stock, shares outstanding | 14,471,095 | 7,507,302 |
Retained Earnings Accumulated Deficit Eliminated | $386.10 | $386.10 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues: | ||
Gaming operations | $16,364 | $18,131 |
Gaming products | 5,998 | 3,424 |
Total revenues | 22,362 | 21,555 |
Cost of gaming operations | ||
Gaming property and equipment depreciation | 3,538 | 4,167 |
Casino contract amortization | 2,445 | 2,464 |
Other gaming related intangibles amortization | 252 | 252 |
Other operating costs | 3,543 | 3,377 |
Cost of gaming products | 7,781 | 4,195 |
Selling, general and administrative expenses | 6,528 | 7,485 |
Loss on disposition of assets | 55 | 88 |
Impairment of assets | 121 | 75 |
Product development expenses | 387 | 261 |
Depreciation and amortization | 219 | 174 |
Total operating costs and expenses | 24,869 | 22,538 |
Loss from operations | -2,507 | -983 |
Other (expenses)/incomes: | ||
Interest expense and finance fees | -4 | -7 |
Interest income | 2 | 4 |
Foreign currency losses | -60 | -257 |
Other | 22 | 8 |
Total other (expenses)/incomes | -40 | -252 |
Loss from continuing operations before income tax | -2,547 | -1,235 |
Income tax benefit/(expense) | 41 | -141 |
Net loss from continuing operations | -2,506 | -1,376 |
Net loss from discontinued operations, net of tax | -325 | -5,954 |
Net loss attributable to EGT stockholders | -2,831 | -7,330 |
Other comprehensive income/(loss): | ||
Defined benefit pension plan | -12 | 37 |
Foreign currency translation | 23 | -224 |
Total other comprehensive income/(loss), net of tax | 11 | -187 |
Comprehensive loss attributable to EGT stockholders | ($2,820) | ($7,517) |
Per share data (basic and diluted) | ||
Loss (in dollars per share) | ($0.35) | ($0.98) |
Loss from continuing operations (in dollars per share) | ($0.31) | ($0.18) |
Loss from discontinued operations, net of tax (in dollars per share) | ($0.04) | ($0.80) |
Weighted average common shares outstanding | ||
Basic (in shares) | 8,188 | 7,494 |
Diluted (in shares) | 8,188 | 7,494 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated losses) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] |
In Thousands, except Share data | ||||||
Balances at Dec. 31, 2012 | $35,592 | $7 | $32,247 | $2,408 | $929 | $1 |
Balances (in shares) at Dec. 31, 2012 | 7,494,802 | |||||
Net loss | -7,330 | -7,330 | ||||
Other comprehensive income/(loss) | -187 | -187 | ||||
Issuance of restricted stock | 0 | 0 | 0 | |||
Issuance of restricted stock (in shares) | 12,500 | |||||
Stock-based compensation | 789 | 789 | ||||
Changes in valuation allowance on deferred tax assets which existed at the date of Quasi-Reorganization | 143 | 143 | ||||
Balances at Dec. 31, 2013 | 29,007 | 7 | 33,179 | -4,922 | 742 | 1 |
Balances (in shares) at Dec. 31, 2013 | 7,507,302 | |||||
Net loss | -2,831 | -2,831 | ||||
Other comprehensive income/(loss) | 11 | 11 | ||||
Issuance of restricted stock | 0 | 0 | 0 | |||
Issuance of restricted stock (in shares) | 19,375 | |||||
Stock-based compensation | 160 | 160 | ||||
Rights offering | 14,348 | 7 | 14,341 | |||
Rights offering (in shares) | 6,944,418 | |||||
Balances at Dec. 31, 2014 | $40,695 | $14 | $47,680 | ($7,753) | $753 | $1 |
Balances (in shares) at Dec. 31, 2014 | 14,471,095 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows provided by operating activities: | ||
Net loss | ($2,831) | ($7,330) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Deferred income tax | -234 | 61 |
Foreign currency loss | 4 | 49 |
Depreciation of gaming equipment and property and equipment | 4,622 | 5,127 |
Impairment of assets | 121 | 2,567 |
Amortization of casino contracts | 2,445 | 2,464 |
Amortization of intangible assets | 302 | 302 |
Amortization of contract amendment fees | 108 | 108 |
Stock-based compensation expense | 160 | 789 |
Loss on disposition of assets | 55 | 88 |
Provision for pension/retirement benefits | -4 | 15 |
Write-off of tax receivables | 579 | 3 |
(Gain)/loss on disposition of subsidiary, including property and equipment | -64 | 999 |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 167 | 659 |
Inventories | -956 | 6 |
Prepaid expenses and other current assets | -930 | -118 |
Prepaids, deposits and other assets | -62 | 302 |
Accounts payable | -241 | -703 |
Amounts due from/to related parties | -1,977 | -89 |
Accrued expenses and other liabilities | -324 | -734 |
Customer deposits and other current liabilities | -51 | -239 |
Net cash provided by operating activities | 889 | 4,326 |
Cash flows used in investing activities: | ||
Construction/purchase of property and equipment | -2,956 | -4,978 |
Purchases of gaming machines and systems | -515 | -4,867 |
Proceeds from sale of gaming equipment and property and equipment | 80 | 2 |
Proceeds from sale of subsidiary related to discontinued operations | 168 | 365 |
Net cash used in investing activities | -3,223 | -9,478 |
Cash flows provided by financing activities: | ||
Rights offering | 14,348 | 0 |
Net cash provided by financing activities | 14,348 | 0 |
Effect of exchange rate changes on cash | -14 | 88 |
Increase/(decrease) in cash and cash equivalents | 12,000 | -5,064 |
Cash and cash equivalents at beginning of year | 5,301 | 10,365 |
Cash and cash equivalents at end of year | 17,301 | 5,301 |
Supplemental disclosure of cash flow information: | ||
Interest paid | 0 | 0 |
Income taxes paid | $0 | $0 |
Description_of_Business_and_Si
Description of Business and Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 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. | ||||||||
The Company owned and operated a casino under the Dreamworld name in the Pailin Province of Cambodia. In June 2014, the Company ceased operations of the casino in Pailin and, on June 20, 2014, entered into an agreement to sell 100% of the issued share capital of Dreamworld Leisure (Pailin) Limited, a wholly-owned Cambodian subsidiary of the Company established for the purpose of owning and operating the casino. In addition, the Company was previously 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. All related historical revenues and expenses for the casino in Pailin and the non-gaming plastic products operations have been reclassified as discontinued operations. The accounting policies of these discontinued operations are consistent with the Company’s policies for the accompanying consolidated financial statements. | ||||||||
Basis of Presentation | ||||||||
These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States. | ||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. 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. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period's presentation. | ||||||||
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 December 31, 2014, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $17.1 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 relationships 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. Inventories included a lower of cost or market (LCM) write-down of approximately $87,000 and $27,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Long-Lived Assets | ||||||||
The Company accounts for impairment of long-lived assets in accordance with FASB Accounting Standards Codification (“ASC”) 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. For the year ended December 31, 2014, the Company recorded an impairment loss of approximately $121,000 primarily related to the write-off of obsolete plant and machinery. For the year ended December 31, 2013, the Company recorded an impairment loss of approximately $75,000 primarily related to the write-off of the non-performing and non-redeployable EGMs and systems. | ||||||||
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 and other deposits. | ||||||||
Gaming Equipment | ||||||||
Gaming equipment consists primarily of 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 $2.9 million and $3.7 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, 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 ten 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. | ||||||||
The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. | ||||||||
Depreciation of property and equipment of approximately $608,000 and $460,000 was recorded in the cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Depreciation of property and equipment of approximately $810,000 and $323,000 was included in cost of gaming products in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Goodwill and Intangible Assets, Including Casino Contracts | ||||||||
Intangible assets consist of patents, trademarks, technical know-how, a 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 $2.4 million and 2.5 million for the years ended December 31, 2014 and 2013, respectively. Amortization expenses related to other gaming related intangibles were approximately $252,000 for the years ended December 31, 2014 and 2013. 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 $26,000 for the years ended December 31, 2014 and 2013. 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 $24,000 for the years ended December 31, 2014 and 2013. 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 years ended December 31, 2014 and 2013. | ||||||||
Additional Paid-In-Capital | ||||||||
For the year ended December, 31, 2014, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation and the net cash proceeds received from the Company’s subscription rights offering. | ||||||||
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 17. | ||||||||
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 gaming 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 and reimbursement of expenses, net of customer incentives and commitment fees. | ||||||||
Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when the payment for net winnings is received. All slot operations revenues were recognized as earned during the years ended December 31, 2014 and 2013. | ||||||||
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 $126,000 and $234,000 as of December 31, 2014 and 2013, respectively. | ||||||||
For the discontinued 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 their 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 jackpot liabilities for its slot machine base and progressive jackpots as regulations do not prohibit removal of gaming machines from the gaming floor without payment of the 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 earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within its casino property. Revenues from gaming table leasing arrangements are recognized as earned over the contractual terms of the arrangement between the Company and the gaming promoters and are included in discontinued operations. | ||||||||
Gaming Products Sales | ||||||||
The Company recognizes revenue from the sale of its gaming products and accessories to end users upon shipment against customer contracts or purchase orders. | ||||||||
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 expenses totaled approximately $160,000 and $789,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Employee Defined Contribution Plan | ||||||||
The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions, which were expensed as incurred, were approximately $162,000 and $75,000 for the years ended December 31, 2014 and 2013, 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 $387,000 and $261,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
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. | ||||||||
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 per Share | ||||||||
Basic loss per share is computed by dividing the reported net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing the net loss 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 loss 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 December 31, 2014 and 2013 and average exchange rates for the years ended December 31, 2014 and 2013, respectively. | ||||||||
($1 to foreign currency) | December 31, 2014 | December 31, 2013 | ||||||
Australian dollar | 1.23 | 1.13 | ||||||
Philippine peso | 44.84 | 44.45 | ||||||
Hong Kong dollar | 7.76 | 7.75 | ||||||
Thai baht | 32.97 | 32.92 | ||||||
Years Ended December 31, | ||||||||
($1 to foreign currency) | 2014 | 2013 | ||||||
Australian dollar | 1.11 | 1.04 | ||||||
Philippine peso | 44.47 | 42.55 | ||||||
Hong Kong dollar | 7.75 | 7.76 | ||||||
Thai baht | 32.54 | 30.8 | ||||||
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 December 31, 2014, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximate carrying values due to the short maturity of these items. | ||||||||
Defined Benefit Pension Plan | ||||||||
The Company provides pension benefits to all regular full-time employees through a defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and salary. | ||||||||
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability. | ||||||||
The accounting guidance related to employers’ accounting for defined benefit pension plan requires recognition in the balance sheet of the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs or credits in other comprehensive income. | ||||||||
We recorded a decrease to equity through other comprehensive income of approximately $12,000 for the year ended December 31, 2014 and an increase to equity through other comprehensive income of approximately $37,000 for the year ended December 31, 2013. | ||||||||
Asset Retirement Obligations | ||||||||
Asset retirement obligations are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. Recognition of a liability for an asset retirement obligation is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the asset retirement obligation is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement. | ||||||||
We record all asset retirement obligations for which we have legal obligations to remove all installation works and reinstate the manufacturing facilities to its original state at estimated fair value. For the year ended December 31, 2014, we recognized approximately $27,000 asset retirement obligation operating costs related to accretion of the liabilities and depreciation of the assets. | ||||||||
Recent Accounting Pronouncements | ||||||||
In July 2013, FASB issued ASU No. 2013-11 ("ASU 2013-11"), Presentation of An Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Existed, which intends to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits. An entity is required to present unrecognized tax benefits as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and the deferred tax asset that exists at the reporting date and presumes disallowance of the tax position at the reporting date. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. We adopted ASU 2013-11 beginning January 1, 2014 and it did not have a material impact on its consolidated financial statements. | ||||||||
In April 2014, FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We do not expect the impact of the adoption of ASU 2014-08 to be material to our consolidated financial statements. | ||||||||
In May 2014, FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | ||||||||
Segments
Segments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment Reporting Disclosure [Text Block] | Note 2. Segments | |||||||
The Company currently conducts business in two operating segments: (i) gaming operations, which include slot participation operations; and (ii) gaming products, which consist of the design, manufacture and distribution of gaming chips and plaques. The Company owned and operated a casino in the Pailin Province of Cambodia. In June 2014, the Company ceased operations of the casino and entered into an agreement to sell 100% of the issued capital shares of Dreamworld Leisure (Pailin) Limited, a wholly-owned Cambodian subsidiary of the Company established for the purpose of owning and operating the casino. 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. All the related historical revenues and expenses for the casino in Pailin and non-gaming plastic products operations have been reclassified as discontinued operations. The accounting policies of these discontinued operations are consistent with the Company’s policies for the accompanying consolidated financial statements. | ||||||||
The following table presents the financial information for each of the Company’s operating segments. | ||||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Revenues: | ||||||||
Gaming operations | $ | 16,364 | $ | 18,131 | ||||
Gaming products | 5,998 | 3,424 | ||||||
Total revenues | $ | 22,362 | $ | 21,555 | ||||
Operating loss: | ||||||||
Gaming operations operating income | $ | 6,621 | $ | 7,796 | ||||
Gaming products operating loss | -2,381 | -1,120 | ||||||
Corporate and other operating costs and expenses | -6,747 | -7,659 | ||||||
Total operating loss | $ | -2,507 | $ | -983 | ||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Identifiable assets: | ||||||||
Gaming operations | $ | 19,184 | $ | 26,401 | ||||
Gaming products | 12,912 | 6,507 | ||||||
Corporate | 12,558 | 722 | ||||||
Total identifiable assets | $ | 44,654 | $ | 33,630 | ||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Goodwill: | ||||||||
Gaming operations | $ | 351 | $ | 353 | ||||
Gaming products | — | — | ||||||
Corporate | — | — | ||||||
Total goodwill | $ | 351 | $ | 353 | ||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Capital expenditures: | ||||||||
Gaming operations (1) | $ | 587 | $ | 4,813 | ||||
Gaming products | 2,796 | 2,879 | ||||||
Corporate | 88 | 332 | ||||||
Total capital expenditures | $ | 3,471 | $ | 8,024 | ||||
Depreciation and amortization: | ||||||||
Gaming operations | $ | 6,293 | $ | 6,947 | ||||
Gaming products | 935 | 423 | ||||||
Corporate | 61 | 37 | ||||||
Total depreciation and amortization | $ | 7,289 | $ | 7,407 | ||||
Impairment of assets: | ||||||||
Gaming operations | $ | 15 | $ | 75 | ||||
Gaming products | 106 | — | ||||||
Corporate | — | — | ||||||
Total impairment of assets | $ | 121 | $ | 75 | ||||
Interest expenses and finance fees: | ||||||||
Gaming operations | $ | — | $ | — | ||||
Gaming products | — | — | ||||||
Corporate | 4 | 7 | ||||||
Total interest expenses and finance fees | $ | 4 | $ | 7 | ||||
Income tax (benefit)/expense: | ||||||||
Gaming operations (2) | $ | — | $ | — | ||||
Gaming products | — | — | ||||||
Corporate | -41 | 141 | ||||||
Total income tax (benefit)/expense | $ | -41 | $ | 141 | ||||
-1 | Includes costs related to new gaming development projects of approximately $3.6 million for the year ended December 31, 2013. | |||||||
-2 | The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $122,000 and $108,000 for the years ended December 31, 2014 and 2013, respectively and were included in selling, general and administrative expenses. | |||||||
Geographic segment revenues for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Cambodia | $ | 13,530 | $ | 14,795 | ||||
Macau | 761 | 1,012 | ||||||
Philippines | 7,467 | 4,751 | ||||||
Australia | 532 | 818 | ||||||
Others | 72 | 179 | ||||||
Total | $ | 22,362 | $ | 21,555 | ||||
For the year ended December 31, 2014, the largest customer in the gaming operations segment represented 70% of total gaming operations revenue and the largest customer in the gaming products segment represented 59% of total gaming products revenue. For the year ended December 31, 2013, the largest customer in the gaming operations segment represented 72% of total gaming operations revenue and the largest customer in the gaming products segment represented 28% of total gaming products revenue. | ||||||||
Long-lived assets, goodwill and intangible assets identified by geographic segments consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Cambodia | $ | 10,219 | $ | 15,407 | ||||
Philippines | 1,664 | 2,097 | ||||||
Hong Kong | 6,449 | 5,045 | ||||||
United States | 115 | 160 | ||||||
Total | $ | 18,447 | $ | 22,709 | ||||
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventory Disclosure [Text Block] | Note 3. | Inventories | ||||||
Inventories consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Raw materials | $ | 1,866 | $ | 809 | ||||
Work-in-process | 600 | 342 | ||||||
Finished goods | — | 367 | ||||||
Spare parts | 151 | 119 | ||||||
Casino inventories | — | 26 | ||||||
Total | $ | 2,617 | $ | 1,663 | ||||
Prepaid_Expenses_and_Other_Cur
Prepaid Expenses and Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Prepaid Expense and Other Assets, Current [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: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Prepayments to suppliers (1) | $ | 1,434 | $ | 400 | ||||
Prepaid leases | 13 | 43 | ||||||
Total | $ | 1,447 | $ | 443 | ||||
(1) | Prepayments to suppliers increased from December 31, 2013 to December 31, 2014 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2015. | |||||||
Receivables
Receivables | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. | Receivables | ||||||
Accounts and other receivables consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Trade receivables | $ | 830 | $ | 922 | ||||
Other receivables | 316 | 453 | ||||||
1,146 | 1,375 | |||||||
Less: allowance for doubtful accounts | — | — | ||||||
Net | $ | 1,146 | $ | 1,375 | ||||
Gaming_Equipment
Gaming Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |||||||||||
Electronic Gaming Machines EGMs and Systems [Text Block] | Note 6. | Gaming Equipment | |||||||||
Gaming equipment is stated at cost less accumulated depreciation. The major categories of gaming equipment and accumulated depreciation consisted of the following: | |||||||||||
Useful | |||||||||||
Life | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
EGMs | 5-Mar | $ | 17,844 | $ | 18,065 | ||||||
Systems | 5 | 1,503 | 1,417 | ||||||||
Other gaming equipment | 5-Mar | — | 42 | ||||||||
19,347 | 19,524 | ||||||||||
Less: accumulated depreciation | -13,723 | -11,353 | |||||||||
Net | $ | 5,624 | $ | 8,171 | |||||||
Depreciation expense of gaming equipment of approximately $2.9 million and $3.7 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [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 | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
Equipment, vehicles, furniture and fixtures | 10-Mar | $ | 6,697 | $ | 4,109 | ||||||
Land and building | 5 | 2,928 | 2,949 | ||||||||
Leasehold improvements | 6-Jan | 1,421 | 1,029 | ||||||||
Construction in progress | N/A | 634 | 1,112 | ||||||||
11,680 | 9,199 | ||||||||||
Less: accumulated depreciation | -2,785 | -1,342 | |||||||||
Net | $ | 8,895 | $ | 7,857 | |||||||
Depreciation of property and equipment of approximately $608,000 and $460,000 was recorded in cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
Depreciation of property and equipment of approximately $810,000 and $323,000 was included in cost of gaming products in the consolidated statement of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, including Casino Contracts | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. | Goodwill and Intangible Assets, including Casino Contracts | |||||||||
Goodwill and intangible assets are stated at cost and consisted of the following: | |||||||||||
Useful | |||||||||||
Life | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
Gaming operation agreement | 5-Apr | $ | 1,175 | $ | 1,178 | ||||||
Less: accumulated amortization | -818 | -567 | |||||||||
357 | 611 | ||||||||||
Goodwill | N/A | 351 | 353 | ||||||||
Patents | 6-May | 114 | 114 | ||||||||
Less: accumulated amortization | -83 | -62 | |||||||||
31 | 52 | ||||||||||
Trademarks | 9-May | 26 | 26 | ||||||||
Less: accumulated amortization | -12 | -10 | |||||||||
14 | 16 | ||||||||||
Technical know-how | 10 | 261 | 261 | ||||||||
Less: accumulated amortization | -68 | -41 | |||||||||
193 | 220 | ||||||||||
Casino contracts | 6-May | 12,754 | 12,764 | ||||||||
Less: accumulated amortization | -9,772 | -7,335 | |||||||||
2,982 | 5,429 | ||||||||||
Net | $ | 3,928 | $ | 6,681 | |||||||
Goodwill movements during the year consisted of the following: | |||||||||||
(amounts in thousands) | 2014 | 2013 | |||||||||
Balance as of January 1 | $ | 353 | $ | 380 | |||||||
Foreign currency translation adjustment | -2 | -27 | |||||||||
Balance as of December 31 | $ | 351 | $ | 353 | |||||||
Amortization expenses for finite-lived intangible assets were approximately $2.7 million and $2.8 million for the years ended December 31, 2014 and 2013, respectively. Annual estimated amortization expense for each of the five succeeding years and thereafter consisted of the following: | |||||||||||
(amounts in thousands) | |||||||||||
2015 | 2,745 | ||||||||||
2016 | 683 | ||||||||||
2017 | 29 | ||||||||||
2018 | 29 | ||||||||||
2019 | 28 | ||||||||||
Thereafter | 63 | ||||||||||
Total | $ | 3,577 | |||||||||
Prepaids_Deposits_and_Other_As
Prepaids, Deposits and Other Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Prepaid taxes | $ | 323 | $ | 927 | ||||
Prepaid lease | 211 | 222 | ||||||
Prepayments to suppliers | 454 | 295 | ||||||
Rental, utilities and other deposits | 328 | 353 | ||||||
Total | $ | 1,316 | $ | 1,797 | ||||
As of December 31, 2014, the prepaid lease consisted of a land lease prepayment of approximately $211,000 for a gaming development project located in Cambodia. | ||||||||
The decrease in prepaid taxes as of December 31, 2014 was mainly due to an additional provision on a tax receivable related to a recent regulatory change in the Philippines. | ||||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses Disclosure [Text Block] | Note 10. | Accrued Expenses | ||||||
Accrued expenses consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Payroll and related costs | $ | 723 | $ | 601 | ||||
Professional fees | 350 | 312 | ||||||
Withholding tax expenses | 583 | 551 | ||||||
Other tax expenses (1) | 44 | 482 | ||||||
Others | 309 | 420 | ||||||
Total | $ | 2,009 | $ | 2,366 | ||||
-1 | Other tax expenses as of December 31, 2013 represented an accrued tax liability related to the Philippines operations resulting from the finalization of the Philippines income tax return for the 2010 year, of which approximately $448,000 was reversed in the year ended December 31, 2014. | |||||||
Other_Liabilities
Other Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities [Abstract] | ||||||||
Other Liabilities Disclosure [Text Block] | Note 11. Other Liabilities | |||||||
Other liabilities consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Other tax liabilities | $ | 819 | $ | 659 | ||||
Others | 26 | 83 | ||||||
Total | $ | 845 | $ | 742 | ||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 12. | Stock-Based Compensation | |||||||||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented below have been proportionally adjusted to reflect the impact of this reverse split. | |||||||||||||||||
Options | |||||||||||||||||
At the annual shareholders meeting held on September 8, 2008, a new stock option plan, or the 2008 Stock Incentive 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, thereby terminating both of the 1999 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 312,500 shares, and in July 2010 the Company’s shareholders approved an increase in the number of shares reserved for issuance to 625,000 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 937,500 shares. At the annual shareholders meeting held on December 12, 2014, the Company’s shareholders approved a further increase in the number of shares reserved for issuance to 1,250,000 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 over three years and have ten-year contractual terms. | |||||||||||||||||
During the year ended December 31, 2014, stock options for the purchase of 56,250 shares of common stock were granted with a weighted average exercise price of $4.84 and weighted average fair value of $2.28 (2013: $2.76) per share and will vest from six-month and one day to three-year periods. During the year ended December 31, 2014, 23,750 shares of restricted stock awards with a fair value of $4.84 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 year ended December 31, 2014, 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, through which 937,500 shares and 18,750 shares were authorized, respectively. Both the previous stock option plans expired on December 31, 2008; however, options granted under these previous plans that were outstanding as of the date of termination remain outstanding and subject to termination according to their terms. | |||||||||||||||||
As of December 31, 2014, stock options for the purchase of 229,620 shares and 5,001 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 December 31, 2014, stock options for the purchase of 550,599 shares of common stock were outstanding under the 2008 plan. | |||||||||||||||||
As of December 31, 2014, stock options for the purchase of 727,949 shares of common stock were exercisable with a weighted average exercise price of $8.14, a weighted average fair value of $3.50 and an aggregate intrinsic value of approximately $46,000. The total fair value of shares vested during the year ended December 31, 2014 was approximately $411,000. As of December 31, 2014, an aggregate of 57,271 options granted under all plans were subject to vesting with a total compensation cost of approximately $89,000. The amount is expected to be recognized over 1.38 years. | |||||||||||||||||
A summary of all current and expired plans as of December 31, 2014 and 2013 and changes during the years then ended is presented in the following tables. | |||||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Weighted | Contractual | Aggregate | |||||||||||||||
Number of | Average | Life | Intrinsic Value | ||||||||||||||
Shares | Exercise Price | (in years) | (in thousands) | ||||||||||||||
Outstanding as of December 31, 2012 | 739,384 | $ | 8.54 | 5.79 | $ | 2,293 | |||||||||||
Granted | 215,000 | 4.81 | — | 280 | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -131,250 | 3 | — | — | |||||||||||||
Outstanding as of December 31, 2013 | 823,134 | 8.45 | 5.99 | 738 | |||||||||||||
Exercisable as of December 31, 2013 | 695,970 | $ | 8.7 | 5.63 | $ | 738 | |||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Weighted | Contractual | Aggregate | |||||||||||||||
Number of | Average | Life | Intrinsic Value | ||||||||||||||
Shares | Exercise Price | (in years) | (in thousands) | ||||||||||||||
Outstanding as of December 31, 2013 | 823,134 | $ | 8.45 | 5.99 | $ | 738 | |||||||||||
Granted | 56,250 | 4.84 | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -94,164 | 9.8 | — | — | |||||||||||||
Outstanding as of December 31, 2014 | 785,220 | 8.03 | 5.5 | 46 | |||||||||||||
Exercisable as of December 31, 2014 | 727,949 | $ | 8.14 | 5.27 | $ | 46 | |||||||||||
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. The grant date for stock-based awards with subjective performance condition does not occur until the earlier of the vesting date or when the discretionary feature has lapsed. 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 | |||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted Average Remaining | ||||||||||||||||
Number of | Fair Value at | Contractual Life | |||||||||||||||
shares | Grant Date | (in years) | |||||||||||||||
Unvested balance as of December 31, 2012 | — | $ | — | — | |||||||||||||
Granted | 12,500 | 7.88 | — | ||||||||||||||
Vested(1) | -12,500 | 7.88 | — | ||||||||||||||
Unvested balance as of December 31, 2013 | — | $ | — | — | |||||||||||||
Weighted | Weighted Average | ||||||||||||||||
Average | Remaining | ||||||||||||||||
Number of | Fair Value at | Contractual Life | |||||||||||||||
shares | Grant Date | (in years) | |||||||||||||||
Unvested balance as of December 31, 2013 | — | $ | — | — | |||||||||||||
Granted | 23,750 | 4.84 | — | ||||||||||||||
Vested(2) | -16,250 | 4.84 | — | ||||||||||||||
Unvested balance as of December 31, 2014 | 7,500 | $ | 4.84 | 1.41 | |||||||||||||
-1 | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2013 for which final vesting of 8,125 shares was approved by the Company’s compensation committee in March 2014. | ||||||||||||||||
-2 | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2014 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 years ended December 31, 2014 and 2013. | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Range of values: | Low | High | Low | High | |||||||||||||
Expected volatility | 73.03 | % | 79.31 | % | 72.16 | % | 76.49 | % | |||||||||
Expected dividends | — | — | — | — | |||||||||||||
Expected term (in years) | 3.73 | 9.11 | 3.73 | 9.7 | |||||||||||||
Risk free rate | 1.16 | % | 2.52 | % | 0.55 | % | 2.83 | % | |||||||||
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 re-measures 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. | |||||||||||||||||
Impairment_of_LongLived_Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2014 | |
Long Lived Assets [Abstract] | |
Disclosure Of Long Lived Assets Disclosure [Text Block] | Note 13. Impairment of Long-Lived Assets |
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such instance, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) 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 assets. | |
For the year ended December 31, 2014, the Company recorded an impairment charge of approximately $121,000 primarily related to a write-down of obsolete plant and machinery. | |
For the year ended December 31, 2013, the Company recorded an impairment charge of approximately $75,000 primarily related to the write-down of non-performing and non-redeployable EGMs and systems. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related Party Transactions [Abstract] | ||||||||
Related Party Transactions Disclosure [Text Block] | Note 14. 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 majority shareholder, EGT Entertainment Holding Limited. 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 Dolphin Hong Kong. The relocation of the Company’s principal executive office serves to minimize costs and improve oversight of the gaming products operations. | ||||||||
Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: | ||||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Related party transaction provided to: | ||||||||
Melco Crown (Macau) Limited | ||||||||
Sales of gaming products | $ | 138 | $ | 941 | ||||
MCE Leisure (Philippines) Corporation | ||||||||
Sales of gaming products | $ | 3,523 | $ | — | ||||
Melco Crown Entertainment Limited | ||||||||
Sales of gaming products | $ | 243 | $ | — | ||||
Related party transaction provided by: | ||||||||
Melco Services Limited | ||||||||
Technical services | $ | 2 | $ | 10 | ||||
Other | $ | 2 | $ | — | ||||
Office rental | $ | — | $ | 46 | ||||
Golden Future (Management Services) Limited | ||||||||
Management services | $ | 276 | $ | 146 | ||||
Melco Services Limited is a wholly-owned subsidiary of Melco International Development Limited, which owns 64.8% of Entertainment Gaming Asia Inc. | ||||||||
Melco International Development Limited owns 34.2% of Melco Crown Entertainment Limited, which owns 90% of Melco Crown (Macau) Limited and 100% of MCE Leisure (Philippines) Corporation, respectively. | ||||||||
Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. | ||||||||
Amounts due from/to related parties consisted of the following: | ||||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Amounts due from related parties | $ | 2,112 | $ | 108 | ||||
Amount due to a related party | $ | 47 | $ | 19 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | Note 15. | Income Taxes | ||||||
The components of the provision for income taxes consisted of the following: | ||||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Federal — deferred | $ | -59 | $ | -59 | ||||
State | — | — | ||||||
Foreign | ||||||||
Current | -133 | — | ||||||
Deferred | 233 | -82 | ||||||
Total tax benefit/(expense) | $ | 41 | $ | -141 | ||||
The reconciliation of the statutory federal income tax rate and the Company’s effective tax rates consisted of the following: | ||||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Federal tax expense at statutory rates | $ | 866 | $ | 420 | ||||
Difference in jurisdictional tax rates | -223 | 501 | ||||||
Expense not deductible for tax | 32 | -46 | ||||||
Income not subject to tax | 876 | 1,565 | ||||||
Adjustment of provision to tax return | -311 | -1,029 | ||||||
Change in valuation allowances | -1,138 | -965 | ||||||
Change in unrecognized tax benefits | -108 | -535 | ||||||
Other | 47 | -52 | ||||||
Total tax benefit/(expense) | $ | 41 | $ | -141 | ||||
Consolidated loss from continuing operations before taxes for domestic and international operations consisted of the following: | ||||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Domestic | $ | -3,249 | $ | -8,147 | ||||
International | 702 | 6,912 | ||||||
Loss from continuing operations before income tax | $ | -2,547 | $ | -1,235 | ||||
Domestic loss decreased approximately $4.9 million to approximately $3.2 million for the year ended December 31, 2014 compared to approximately $8.1 million in the prior year primarily as a result of a take up of an intercompany expense for the sale of Dolphin Australia in 2013. International income from continuing operations decreased approximately $6.2 million to approximately $700,000 for the year ended December 31, 2014 compared to approximately $6.9 million in the prior year mainly as a result of a write-off of an intercompany receivable from Dreamworld Casino (Pailin). | ||||||||
The primary tax affected components of the Company’s deferred tax assets/(liabilities) consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Deferred tax assets – current | ||||||||
Prepaid commission agreement | $ | 1,277 | $ | 1,277 | ||||
Depreciation and impairment | 2,753 | 3,580 | ||||||
Other | 481 | 337 | ||||||
Less: Valuation allowances | -4,511 | -5,194 | ||||||
— | — | |||||||
Deferred tax assets – non current | ||||||||
Net operating losses | 61,938 | 60,023 | ||||||
Stock options | 888 | 840 | ||||||
Less: Valuation allowances | -62,684 | -60,863 | ||||||
142 | — | |||||||
Deferred tax liabilities – non current | ||||||||
Acquisition of intangibles | -107 | -183 | ||||||
Other | — | -16 | ||||||
-107 | -199 | |||||||
Net deferred tax assets/(liabilities) | $ | 35 | $ | -199 | ||||
Domestic operating loss carryforwards were approximately $179.1 million and $174.2 million for the years ended December 31, 2014 and 2013, respectively, which are subject to limitations under Section 382 of the Internal Revenue Code. These domestic operating losses began to expire in 2018. The Company expects to utilize the $179.1 million domestic operating loss to offset against corporate income tax payable in the United States, if the domestic operating loss remains unexpired at the time when the Company is subject to corporate income tax in the United States. Operating loss carryforwards of foreign subsidiaries were approximately $7.8 million and $4.6 million, respectively for the years ended December, 31, 2014 and 2013. The Company’s net operating losses have been fully reserved. The foreign operating losses for Hong Kong can be carried forward indefinitely. | ||||||||
As of December 31, 2014, there were valuation allowances of approximately $61.5 million and $5.7 million relating to pre-Quasi-Reorganization and post-Quasi-Reorganization periods, respectively. Valuation allowances included approximately $59.0 million for which subsequently recognized tax benefits will be credited directly to additional paid-in capital. Valuation allowances were provided on the domestic and foreign operating loss carry forwards and other deferred tax assets because management believes these assets did not meet the “more likely than not” criteria for recognition under ASC 740. | ||||||||
Undistributed earnings of the Company’s foreign subsidiary amounted to approximately $20.8 million as of December 31, 2014. Those earnings were considered to be permanently reinvested; accordingly, no provision for withholding taxes has been provided thereon. Upon repatriation of those earnings, in the form of dividends or otherwise, the Company would be subject to both U.S. income taxes (subject to an adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. Determination of the amount of unrecognized deferred U.S. income tax liability is not practicable due to the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credit carryforwards would be available to reduce some portion of the U.S. liability. Withholding taxes of approximately $2.9 million would be payable upon remittance of all previously unremitted earnings as of December 31, 2014. | ||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following: | ||||||||
(amounts in thousands) | ||||||||
Balance at January 1, 2013 | $ | 3,673 | ||||||
Additions based on tax positions related to the current year | 430 | |||||||
Reductions for tax positions of prior years | -82 | |||||||
Balance at December 31, 2013 | $ | 4,021 | ||||||
Additions based on tax positions related to the current year | 43 | |||||||
Reductions for tax positions of prior years | -3 | |||||||
Balance at December 31, 2014 | $ | 4,061 | ||||||
The amount of uncertain tax benefits as of December 31, 2014 that would affect the effective income tax rate if recognized is approximately $270,000. It is possible that the amount of unrecognized tax benefits will change in the next twelve months, however, an estimate of the range of the possible changes cannot be made at this time. | ||||||||
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. During the year ended December 31, 2014, the Company recorded interest and penalties of approximately $68,000. As of December 31, 2014, the Company had interest and penalties of approximately $373,000 accrued in the consolidated balance sheet. | ||||||||
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 2009 to 2013 Australian income tax returns remain open to examination by the Australian Taxation Office. The Company’s 2010 to 2013 Cambodian income tax returns remain open to examination by the General Department of Taxation. The Company’s 2011 to 2014 Philippines income tax returns remain open to examination by the Philippines Bureau of Internal Revenue. The Company’s 2007 to 2014 Hong Kong income tax returns remain open to examination by the Hong Kong Inland Revenue Department | ||||||||
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 16. | 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 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 Dolphin 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 $350,000 Australian. 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 for 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 of 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 December 31, 2014, the outstanding balance had been fully settled. | ||||||||
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. | ||||||||
From May 2012 until June 2014, the Company operated Dreamworld Casino (Pailin), a casino in the Pailin Province of Cambodia. Dreamworld Casino (Pailin) was constructed on land leased from a local land owner and, in consideration, the land owner was entitled to receive monthly a rental fee in the amount of $5,000 and 20% of the profit before depreciation (the total gross revenue of the casino less any payouts paid to customers, operating expenses, and gaming and non-gaming taxes on the casino’s revenue). The initial lease term was 20 years, commencing in September 2011 and was subject to renewal by the parties in writing. | ||||||||
In June 2014, the Company ceased operations of Dreamworld Casino (Pailin). On June 20, 2014, the Company entered into an agreement to sell 100% of the issued capital shares of Dreamworld Leisure (Pailin) Limited, or DWP, a wholly-owned Cambodian subsidiary of the Company established for the purposes of owning and operating Dreamworld Casino (Pailin), to a local Cambodian individual. In connection with the sale of the issued capital shares of DWP, on June 20, 2014 the Company and its partner in the operations entered into an agreement to terminate the previous agreements with the partner and all future obligations thereunder including future lease payments owed by the Company. | ||||||||
The sale included all assets of DWP with the exception of all EGMs, certain surveillance equipment and other assets excluded in the agreement and prohibits any use of the Dreamworld brand name by the buyer. Total consideration to be paid to the Company by the buyer was to be $500,000, of which $100,000 was paid at the time of entering the agreement and the balance to be paid in sixteen $25,000 monthly installments commencing within one month of the signed agreement. The parties closed the sale transaction in October 2014. Subsequently, the related parties agreed to amend the agreement to reduce the total consideration to be paid to $363,000, which has since been paid in full. The Company recognized a gain of approximately $90,000 on disposal of the entity in the year ended December 31, 2014. | ||||||||
The Company had recorded an impairment charge of approximately $2.5 million for the year ended December 31, 2013 related to the Dreamworld Casino (Pailin) facility and gaming assets. The impairment charge represented the entire capital expenditure incurred by the Company for the property as of December 31, 2013, with the exception of those assets that the Company believed could be redeployed to other existing properties. | ||||||||
The following table details the significant components of revenues and losses from discontinued operations, net of income taxes. | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Revenues from casino operations | $ | 228 | $ | 2,738 | ||||
Revenues from non-gaming products | — | 2,043 | ||||||
Total revenues from discontinued operations | $ | 228 | $ | 4,781 | ||||
Pre-tax loss from casino operations | $ | -325 | $ | -3,819 | ||||
Pre-tax loss from non-gaming products | — | -2,163 | ||||||
Benefit for income taxes related to discontinued operations | — | 28 | ||||||
Loss from discontinued operations, net of tax | $ | -325 | $ | -5,954 | ||||
The following table details selected financial information for the discontinued operations in the consolidated statements of comprehensive income. | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Loss from operations | $ | -416 | $ | -3,594 | ||||
Gain/(loss) on disposal | 84 | -2,442 | ||||||
Other income (1) | — | 146 | ||||||
Foreign currency exchange gain/(loss) | 7 | -92 | ||||||
Income tax benefit (2) | — | 28 | ||||||
Loss from discontinued operations, net of tax | $ | -325 | $ | -5,954 | ||||
-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 | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Commitments and Contingencies Disclosure [Text Block] | Note 17. | Commitments and Contingencies | |||||||||
Leases | |||||||||||
The Company currently leases office spaces and warehouse facilities in locations including Hong Kong, Cambodia and the Philippines and certain office equipment under non-cancelable operating leases with remaining terms in excess of one year. | |||||||||||
Future minimum lease payment commitments, net of any sublease proceeds and including scheduled escalation provisions as of December 31, 2014 under the leases were as follows: | |||||||||||
Operating | |||||||||||
Leases | |||||||||||
(amounts in thousands) | Total | Sublease | Net | ||||||||
Payments | Proceeds | Payments | |||||||||
2015 | 829 | — | 829 | ||||||||
2016 | 181 | 181 | |||||||||
2017 | — | — | — | ||||||||
2018 | — | — | — | ||||||||
2019 | — | — | — | ||||||||
Thereafter | — | — | — | ||||||||
Rent expenses on all operating leases were approximately $838,000 and $662,000 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
Legal Matters | |||||||||||
Prime Mover/Strata Litigation | |||||||||||
On March 26, 2010, a complaint (as subsequently amended on May 28, 2010 and December 20, 2011) 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 in the United States District Court for the Southern District of New York against certain defendants including the Company and certain other current and former directors and officers. The case number is 12-4393. | |||||||||||
On December 18, 2013, the Second Circuit affirmed by Summary Order the District Court’s September 28, 2012 judgment granting the dismissal of the plaintiffs’ complaint. Since the plaintiffs did not request a rehearing of the Summary Order in the permitted time, the civil action was concluded with all claims dismissed against all parties. | |||||||||||
Loss_Per_Share
Loss Per Share | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||
Earnings Per Share [Text Block] | Note 18. Loss Per Share | |||||||||||||||||||
Computation of the basic and diluted loss per share from continuing operations consisted of the following: | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(amounts in thousands, except per share | Number of | Per Share | Number of | Per Share | ||||||||||||||||
data) | Loss | Shares | Amount | Loss | Shares | Amount | ||||||||||||||
Basic | ||||||||||||||||||||
Net loss attributable to equity shareholders | $ | -2,506 | 8,188 | $ | -0.31 | $ | -1,376 | 7,494 | $ | -0.18 | ||||||||||
Effect of dilutive securities | ||||||||||||||||||||
Dilutive stock options/restricted shares (1) | — | — | — | — | ||||||||||||||||
Diluted | ||||||||||||||||||||
Net loss attributable to equity shareholders plus assumed conversion | $ | -2,506 | 8,188 | $ | -0.31 | $ | -1,376 | 7,494 | $ | -0.18 | ||||||||||
-1 | For the years end December 31, 2014 and 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 719,399 and 604,185 shares of common stock were excluded from the calculation of diluted loss per share for the years ended December 31, 2014 and 2013, respectively, as their effect would have been anti-dilutive. | ||||||||||||||||||||
Retirement_Plan
Retirement Plan | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 19. | Retirement Plan | ||||||
The following tables summarize the components of retirement benefits included in the operating expenses under retirement benefit in the statement of comprehensive income, and accrued retirement benefits, which is based on the latest actuarial valuation report dated December 31, 2014: | ||||||||
The components of retirement benefits for the years ended December 31, 2014 and 2013 in the statements of comprehensive income are as follows: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Service cost | $ | 7 | $ | 16 | ||||
Interest cost on benefits obligation | 1 | 2 | ||||||
Recognized actuarial loss | -12 | -4 | ||||||
Net periodic (benefit)/cost | $ | -4 | $ | 14 | ||||
Movement in the present value of the retirement obligation for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | 21 | $ | 47 | ||||
Service cost | 7 | 16 | ||||||
Interest cost | 1 | 2 | ||||||
Actuarial gain and others | — | -44 | ||||||
Balance, December 31 | $ | 29 | $ | 21 | ||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Asset Retirement Obligation Disclosure [Text Block] | Note 20. | Asset Retirement Obligations | ||||||
Reconciliations of the carrying amounts of our asset retirement obligations are as follows: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | — | $ | — | ||||
Additions | 92 | — | ||||||
Accretion expense | — | — | ||||||
Balance, December 31 | $ | 92 | $ | — | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Comprehensive Income Loss Disclosure [Abstract] | |||||||||||
Comprehensive Income (Loss) Note [Text Block] | Note 21. Accumulated Other Comprehensive Income | ||||||||||
The accumulated balances in respect of other comprehensive income consisted of the following: | |||||||||||
Accumulated | |||||||||||
Foreign | Other | ||||||||||
Defined Benefit | Currency | Comprehensive | |||||||||
(amounts in thousands) | Pension Plan | Translation | Income | ||||||||
Balances, January 1, 2013 | $ | 62 | $ | 867 | $ | 929 | |||||
Current period other comprehensive income/(loss) | 37 | -256 | -219 | ||||||||
Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary (1) | — | 32 | 32 | ||||||||
Balances, December 31, 2013 | 99 | 643 | 742 | ||||||||
Current period other comprehensive income | -12 | 23 | 11 | ||||||||
Balances, December 31, 2014 | $ | 87 | $ | 666 | $ | 753 | |||||
-1 | Amounts represented a reclassification from accumulated other comprehensive income to net loss from discontinued operations in Note 16 due to the disposal of a subsidiary. | ||||||||||
Subsequent_Event
Subsequent Event | 12 Months Ended | ||
Dec. 31, 2014 | |||
Subsequent Events [Abstract] | |||
Subsequent Events [Text Block] | Note 22. | Subsequent Event | |
The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. 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 | |||
Description_of_Business_and_Si1
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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. | ||||||||
The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. 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. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period's presentation. | ||||||||
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 December 31, 2014, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $17.1 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 relationships 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. Inventories included a lower of cost or market (LCM) write-down of approximately $87,000 and $27,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
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 FASB Accounting Standards Codification (“ASC”) 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. For the year ended December 31, 2014, the Company recorded an impairment loss of approximately $121,000 primarily related to the write-off of obsolete plant and machinery. For the year ended December 31, 2013, the Company recorded an impairment loss of approximately $75,000 primarily related to the write-off of the non-performing and non-redeployable EGMs and systems. | ||||||||
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 and other deposits. | ||||||||
Electronic Gaming Machines EGMs and Systems [Policy Text Block] | Gaming Equipment | |||||||
Gaming equipment consists primarily of 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 $2.9 million and $3.7 million was included in cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, 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 ten 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. | ||||||||
The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. | ||||||||
Depreciation of property and equipment of approximately $608,000 and $460,000 was recorded in the cost of gaming operations in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Depreciation of property and equipment of approximately $810,000 and $323,000 was included in cost of gaming products in the consolidated statements of comprehensive income for the years ended December 31, 2014 and 2013, 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, a 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 $2.4 million and 2.5 million for the years ended December 31, 2014 and 2013, respectively. Amortization expenses related to other gaming related intangibles were approximately $252,000 for the years ended December 31, 2014 and 2013. 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 $26,000 for the years ended December 31, 2014 and 2013. 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 $24,000 for the years ended December 31, 2014 and 2013. 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 years ended December 31, 2014 and 2013. | ||||||||
Additional Paid In Capital [Policy Text Block] | Additional Paid-In-Capital | |||||||
For the year ended December, 31, 2014, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation and the net cash proceeds received from the Company’s subscription rights offering. | ||||||||
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 17. | ||||||||
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 gaming 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 and reimbursement of expenses, net of customer incentives and commitment fees. | ||||||||
Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when the payment for net winnings is received. All slot operations revenues were recognized as earned during the years ended December 31, 2014 and 2013. | ||||||||
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 $126,000 and $234,000 as of December 31, 2014 and 2013, respectively. | ||||||||
For the discontinued 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 their 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 jackpot liabilities for its slot machine base and progressive jackpots as regulations do not prohibit removal of gaming machines from the gaming floor without payment of the 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 earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within its casino property. Revenues from gaming table leasing arrangements are recognized as earned over the contractual terms of the arrangement between the Company and the gaming promoters and are included in discontinued operations. | ||||||||
Gaming Products Sales | ||||||||
The Company recognizes revenue from the sale of its gaming products and accessories to end users upon shipment against customer contracts or purchase orders. | ||||||||
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 expenses totaled approximately $160,000 and $789,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Employee Defined Contribution Plan [Policy Text Block] | Employee Defined Contribution Plan | |||||||
The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions, which were expensed as incurred, were approximately $162,000 and $75,000 for the years ended December 31, 2014 and 2013, 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 $387,000 and $261,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||
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. | ||||||||
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 per Share | |||||||
Basic loss per share is computed by dividing the reported net loss by the weighted average number of shares of common stock outstanding during the period. Diluted loss per share is computed by dividing the net loss 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 loss 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 December 31, 2014 and 2013 and average exchange rates for the years ended December 31, 2014 and 2013, respectively. | ||||||||
($1 to foreign currency) | December 31, 2014 | December 31, 2013 | ||||||
Australian dollar | 1.23 | 1.13 | ||||||
Philippine peso | 44.84 | 44.45 | ||||||
Hong Kong dollar | 7.76 | 7.75 | ||||||
Thai baht | 32.97 | 32.92 | ||||||
Years Ended December 31, | ||||||||
($1 to foreign currency) | 2014 | 2013 | ||||||
Australian dollar | 1.11 | 1.04 | ||||||
Philippine peso | 44.47 | 42.55 | ||||||
Hong Kong dollar | 7.75 | 7.76 | ||||||
Thai baht | 32.54 | 30.8 | ||||||
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 December 31, 2014, the fair values of cash and cash equivalents, accounts receivable and accounts payable approximate carrying values due to the short maturity of these items. | ||||||||
Postemployment Benefit Plans, Policy [Policy Text Block] | Defined Benefit Pension Plan | |||||||
The Company provides pension benefits to all regular full-time employees through a defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and salary. | ||||||||
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability. | ||||||||
The accounting guidance related to employers’ accounting for defined benefit pension plan requires recognition in the balance sheet of the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs or credits in other comprehensive income. | ||||||||
We recorded a decrease to equity through other comprehensive income of approximately $12,000 for the year ended December 31, 2014 and an increase to equity through other comprehensive income of approximately $37,000 for the year ended December 31, 2013. | ||||||||
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations | |||||||
Asset retirement obligations are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. Recognition of a liability for an asset retirement obligation is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the asset retirement obligation is settled for other than the carrying amount of the liability, we recognize a gain or loss on settlement. | ||||||||
We record all asset retirement obligations for which we have legal obligations to remove all installation works and reinstate the manufacturing facilities to its original state at estimated fair value. For the year ended December 31, 2014, we recognized approximately $27,000 asset retirement obligation operating costs related to accretion of the liabilities and depreciation of the assets. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | |||||||
In July 2013, FASB issued ASU No. 2013-11 ("ASU 2013-11"), Presentation of An Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Existed, which intends to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits. An entity is required to present unrecognized tax benefits as a decrease in a net operating loss, similar tax loss or tax credit carryforward if certain criteria are met. The determination of whether a deferred tax asset is available is based on the unrecognized tax benefit and the deferred tax asset that exists at the reporting date and presumes disallowance of the tax position at the reporting date. For public entities, the amendments are effective prospectively for reporting periods beginning after December 15, 2013, with early adoption permitted. We adopted ASU 2013-11 beginning January 1, 2014 and it did not have a material impact on its consolidated financial statements. | ||||||||
In April 2014, FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08) “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We do not expect the impact of the adoption of ASU 2014-08 to be material to our consolidated financial statements. | ||||||||
In May 2014, FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements. | ||||||||
Description_of_Business_and_Si2
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of December 31, 2014 and 2013 and average exchange rates for the years ended December 31, 2014 and 2013, respectively. | |||||||
($1 to foreign currency) | December 31, 2014 | December 31, 2013 | ||||||
Australian dollar | 1.23 | 1.13 | ||||||
Philippine peso | 44.84 | 44.45 | ||||||
Hong Kong dollar | 7.76 | 7.75 | ||||||
Thai baht | 32.97 | 32.92 | ||||||
Years Ended December 31, | ||||||||
($1 to foreign currency) | 2014 | 2013 | ||||||
Australian dollar | 1.11 | 1.04 | ||||||
Philippine peso | 44.47 | 42.55 | ||||||
Hong Kong dollar | 7.75 | 7.76 | ||||||
Thai baht | 32.54 | 30.8 | ||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Segment Reporting [Abstract] | ||||||||
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table presents the financial information for each of the Company’s operating segments. | |||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Revenues: | ||||||||
Gaming operations | $ | 16,364 | $ | 18,131 | ||||
Gaming products | 5,998 | 3,424 | ||||||
Total revenues | $ | 22,362 | $ | 21,555 | ||||
Operating loss: | ||||||||
Gaming operations operating income | $ | 6,621 | $ | 7,796 | ||||
Gaming products operating loss | -2,381 | -1,120 | ||||||
Corporate and other operating costs and expenses | -6,747 | -7,659 | ||||||
Total operating loss | $ | -2,507 | $ | -983 | ||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Identifiable assets: | ||||||||
Gaming operations | $ | 19,184 | $ | 26,401 | ||||
Gaming products | 12,912 | 6,507 | ||||||
Corporate | 12,558 | 722 | ||||||
Total identifiable assets | $ | 44,654 | $ | 33,630 | ||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Goodwill: | ||||||||
Gaming operations | $ | 351 | $ | 353 | ||||
Gaming products | — | — | ||||||
Corporate | — | — | ||||||
Total goodwill | $ | 351 | $ | 353 | ||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Capital expenditures: | ||||||||
Gaming operations (1) | $ | 587 | $ | 4,813 | ||||
Gaming products | 2,796 | 2,879 | ||||||
Corporate | 88 | 332 | ||||||
Total capital expenditures | $ | 3,471 | $ | 8,024 | ||||
Depreciation and amortization: | ||||||||
Gaming operations | $ | 6,293 | $ | 6,947 | ||||
Gaming products | 935 | 423 | ||||||
Corporate | 61 | 37 | ||||||
Total depreciation and amortization | $ | 7,289 | $ | 7,407 | ||||
Impairment of assets: | ||||||||
Gaming operations | $ | 15 | $ | 75 | ||||
Gaming products | 106 | — | ||||||
Corporate | — | — | ||||||
Total impairment of assets | $ | 121 | $ | 75 | ||||
Interest expenses and finance fees: | ||||||||
Gaming operations | $ | — | $ | — | ||||
Gaming products | — | — | ||||||
Corporate | 4 | 7 | ||||||
Total interest expenses and finance fees | $ | 4 | $ | 7 | ||||
Income tax (benefit)/expense: | ||||||||
Gaming operations (2) | $ | — | $ | — | ||||
Gaming products | — | — | ||||||
Corporate | -41 | 141 | ||||||
Total income tax (benefit)/expense | $ | -41 | $ | 141 | ||||
-1 | Includes costs related to new gaming development projects of approximately $3.6 million for the year ended December 31, 2013. | |||||||
-2 | The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $122,000 and $108,000 for the years ended December 31, 2014 and 2013, respectively and were included in selling, general and administrative expenses. | |||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Geographic segment revenues for the years ended December 31, 2014 and 2013 are as follows: | |||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Cambodia | $ | 13,530 | $ | 14,795 | ||||
Macau | 761 | 1,012 | ||||||
Philippines | 7,467 | 4,751 | ||||||
Australia | 532 | 818 | ||||||
Others | 72 | 179 | ||||||
Total | $ | 22,362 | $ | 21,555 | ||||
Long-lived assets, goodwill and intangible assets identified by geographic segments consisted of the following: | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Cambodia | $ | 10,219 | $ | 15,407 | ||||
Philippines | 1,664 | 2,097 | ||||||
Hong Kong | 6,449 | 5,045 | ||||||
United States | 115 | 160 | ||||||
Total | $ | 18,447 | $ | 22,709 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Raw materials | $ | 1,866 | $ | 809 | ||||
Work-in-process | 600 | 342 | ||||||
Finished goods | — | 367 | ||||||
Spare parts | 151 | 119 | ||||||
Casino inventories | — | 26 | ||||||
Total | $ | 2,617 | $ | 1,663 | ||||
Prepaid_Expenses_and_Other_Cur1
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Prepaid Expense and Other Assets, Current [Abstract] | ||||||||
Schedule Of Prepaid Expenses And Other Current Assets [Table Text Block] | Prepaid expenses and other current assets consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Prepayments to suppliers (1) | $ | 1,434 | $ | 400 | ||||
Prepaid leases | 13 | 43 | ||||||
Total | $ | 1,447 | $ | 443 | ||||
(1) | Prepayments to suppliers increased from December 31, 2013 to December 31, 2014 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2015. | |||||||
Receivables_Tables
Receivables (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Receivables [Abstract] | ||||||||
Schedule Of Accounts And Other Receivables [Table Text Block] | Accounts and other receivables consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Trade receivables | $ | 830 | $ | 922 | ||||
Other receivables | 316 | 453 | ||||||
1,146 | 1,375 | |||||||
Less: allowance for doubtful accounts | — | — | ||||||
Net | $ | 1,146 | $ | 1,375 | ||||
Gaming_Equipment_Tables
Gaming Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |||||||||||
Disclosure Of Electronic Gaming Machines EGMs and Systems [Table Text Block] | Gaming equipment is stated at cost less accumulated depreciation. The major categories of gaming equipment and accumulated depreciation consisted of the following: | ||||||||||
Useful | |||||||||||
Life | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
EGMs | 5-Mar | $ | 17,844 | $ | 18,065 | ||||||
Systems | 5 | 1,503 | 1,417 | ||||||||
Other gaming equipment | 5-Mar | — | 42 | ||||||||
19,347 | 19,524 | ||||||||||
Less: accumulated depreciation | -13,723 | -11,353 | |||||||||
Net | $ | 5,624 | $ | 8,171 | |||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost and consisted of the following: | ||||||||||
Useful | |||||||||||
Life | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
Equipment, vehicles, furniture and fixtures | 10-Mar | $ | 6,697 | $ | 4,109 | ||||||
Land and building | 5 | 2,928 | 2,949 | ||||||||
Leasehold improvements | 6-Jan | 1,421 | 1,029 | ||||||||
Construction in progress | N/A | 634 | 1,112 | ||||||||
11,680 | 9,199 | ||||||||||
Less: accumulated depreciation | -2,785 | -1,342 | |||||||||
Net | $ | 8,895 | $ | 7,857 | |||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and intangible assets are stated at cost and consisted of the following: | ||||||||||
Useful | |||||||||||
Life | December 31, | ||||||||||
(amounts in thousands) | (years) | 2014 | 2013 | ||||||||
Gaming operation agreement | 5-Apr | $ | 1,175 | $ | 1,178 | ||||||
Less: accumulated amortization | -818 | -567 | |||||||||
357 | 611 | ||||||||||
Goodwill | N/A | 351 | 353 | ||||||||
Patents | 6-May | 114 | 114 | ||||||||
Less: accumulated amortization | -83 | -62 | |||||||||
31 | 52 | ||||||||||
Trademarks | 9-May | 26 | 26 | ||||||||
Less: accumulated amortization | -12 | -10 | |||||||||
14 | 16 | ||||||||||
Technical know-how | 10 | 261 | 261 | ||||||||
Less: accumulated amortization | -68 | -41 | |||||||||
193 | 220 | ||||||||||
Casino contracts | 6-May | 12,754 | 12,764 | ||||||||
Less: accumulated amortization | -9,772 | -7,335 | |||||||||
2,982 | 5,429 | ||||||||||
Net | $ | 3,928 | $ | 6,681 | |||||||
Schedule of Goodwill [Table Text Block] | Goodwill movements during the year consisted of the following: | ||||||||||
(amounts in thousands) | 2014 | 2013 | |||||||||
Balance as of January 1 | $ | 353 | $ | 380 | |||||||
Foreign currency translation adjustment | -2 | -27 | |||||||||
Balance as of December 31 | $ | 351 | $ | 353 | |||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Amortization expenses for finite-lived intangible assets were approximately $2.7 million and $2.8 million for the years ended December 31, 2014 and 2013, respectively. Annual estimated amortization expense for each of the five succeeding years and thereafter consisted of the following: | ||||||||||
(amounts in thousands) | |||||||||||
2015 | 2,745 | ||||||||||
2016 | 683 | ||||||||||
2017 | 29 | ||||||||||
2018 | 29 | ||||||||||
2019 | 28 | ||||||||||
Thereafter | 63 | ||||||||||
Total | $ | 3,577 | |||||||||
Prepaids_Deposits_and_Other_As1
Prepaids, Deposits and Other Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Prepaid taxes | $ | 323 | $ | 927 | ||||
Prepaid lease | 211 | 222 | ||||||
Prepayments to suppliers | 454 | 295 | ||||||
Rental, utilities and other deposits | 328 | 353 | ||||||
Total | $ | 1,316 | $ | 1,797 | ||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Payroll and related costs | $ | 723 | $ | 601 | ||||
Professional fees | 350 | 312 | ||||||
Withholding tax expenses | 583 | 551 | ||||||
Other tax expenses (1) | 44 | 482 | ||||||
Others | 309 | 420 | ||||||
Total | $ | 2,009 | $ | 2,366 | ||||
-1 | Other tax expenses as of December 31, 2013 represented an accrued tax liability related to the Philippines operations resulting from the finalization of the Philippines income tax return for the 2010 year, of which approximately $448,000 was reversed in the year ended December 31, 2014. | |||||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Other Liabilities [Abstract] | ||||||||
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Other tax liabilities | $ | 819 | $ | 659 | ||||
Others | 26 | 83 | ||||||
Total | $ | 845 | $ | 742 | ||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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 December 31, 2014 and 2013 and changes during the years then ended is presented in the following tables. | ||||||||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Weighted | Contractual | Aggregate | |||||||||||||||
Number of | Average | Life | Intrinsic Value | ||||||||||||||
Shares | Exercise Price | (in years) | (in thousands) | ||||||||||||||
Outstanding as of December 31, 2012 | 739,384 | $ | 8.54 | 5.79 | $ | 2,293 | |||||||||||
Granted | 215,000 | 4.81 | — | 280 | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -131,250 | 3 | — | — | |||||||||||||
Outstanding as of December 31, 2013 | 823,134 | 8.45 | 5.99 | 738 | |||||||||||||
Exercisable as of December 31, 2013 | 695,970 | $ | 8.7 | 5.63 | $ | 738 | |||||||||||
Weighted Average | |||||||||||||||||
Remaining | |||||||||||||||||
Weighted | Contractual | Aggregate | |||||||||||||||
Number of | Average | Life | Intrinsic Value | ||||||||||||||
Shares | Exercise Price | (in years) | (in thousands) | ||||||||||||||
Outstanding as of December 31, 2013 | 823,134 | $ | 8.45 | 5.99 | $ | 738 | |||||||||||
Granted | 56,250 | 4.84 | — | — | |||||||||||||
Exercised | — | — | — | — | |||||||||||||
Forfeited or expired | -94,164 | 9.8 | — | — | |||||||||||||
Outstanding as of December 31, 2014 | 785,220 | 8.03 | 5.5 | 46 | |||||||||||||
Exercisable as of December 31, 2014 | 727,949 | $ | 8.14 | 5.27 | $ | 46 | |||||||||||
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted Stock | ||||||||||||||||
Weighted | |||||||||||||||||
Average | Weighted Average Remaining | ||||||||||||||||
Number of | Fair Value at | Contractual Life | |||||||||||||||
shares | Grant Date | (in years) | |||||||||||||||
Unvested balance as of December 31, 2012 | — | $ | — | — | |||||||||||||
Granted | 12,500 | 7.88 | — | ||||||||||||||
Vested(1) | -12,500 | 7.88 | — | ||||||||||||||
Unvested balance as of December 31, 2013 | — | $ | — | — | |||||||||||||
Weighted | Weighted Average | ||||||||||||||||
Average | Remaining | ||||||||||||||||
Number of | Fair Value at | Contractual Life | |||||||||||||||
shares | Grant Date | (in years) | |||||||||||||||
Unvested balance as of December 31, 2013 | — | $ | — | — | |||||||||||||
Granted | 23,750 | 4.84 | — | ||||||||||||||
Vested(2) | -16,250 | 4.84 | — | ||||||||||||||
Unvested balance as of December 31, 2014 | 7,500 | $ | 4.84 | 1.41 | |||||||||||||
-1 | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2013 for which final vesting of 8,125 shares was approved by the Company’s compensation committee in March 2014. | ||||||||||||||||
-2 | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2014 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 years ended December 31, 2014 and 2013. | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Range of values: | Low | High | Low | High | |||||||||||||
Expected volatility | 73.03 | % | 79.31 | % | 72.16 | % | 76.49 | % | |||||||||
Expected dividends | — | — | — | — | |||||||||||||
Expected term (in years) | 3.73 | 9.11 | 3.73 | 9.7 | |||||||||||||
Risk free rate | 1.16 | % | 2.52 | % | 0.55 | % | 2.83 | % | |||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Schedule Of Transactions With Related Parties [Table Text Block] | Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: | |||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Related party transaction provided to: | ||||||||
Melco Crown (Macau) Limited | ||||||||
Sales of gaming products | $ | 138 | $ | 941 | ||||
MCE Leisure (Philippines) Corporation | ||||||||
Sales of gaming products | $ | 3,523 | $ | — | ||||
Melco Crown Entertainment Limited | ||||||||
Sales of gaming products | $ | 243 | $ | — | ||||
Related party transaction provided by: | ||||||||
Melco Services Limited | ||||||||
Technical services | $ | 2 | $ | 10 | ||||
Other | $ | 2 | $ | — | ||||
Office rental | $ | — | $ | 46 | ||||
Golden Future (Management Services) Limited | ||||||||
Management services | $ | 276 | $ | 146 | ||||
Affiliated Entity [Member] | ||||||||
Schedule Of Transactions With Related Parties [Table Text Block] | Amounts due from/to related parties consisted of the following: | |||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Amounts due from related parties | $ | 2,112 | $ | 108 | ||||
Amount due to a related party | $ | 47 | $ | 19 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes consisted of the following: | |||||||
Years ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Federal — deferred | $ | -59 | $ | -59 | ||||
State | — | — | ||||||
Foreign | ||||||||
Current | -133 | — | ||||||
Deferred | 233 | -82 | ||||||
Total tax benefit/(expense) | $ | 41 | $ | -141 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the statutory federal income tax rate and the Company’s effective tax rates consisted of the following: | |||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Federal tax expense at statutory rates | $ | 866 | $ | 420 | ||||
Difference in jurisdictional tax rates | -223 | 501 | ||||||
Expense not deductible for tax | 32 | -46 | ||||||
Income not subject to tax | 876 | 1,565 | ||||||
Adjustment of provision to tax return | -311 | -1,029 | ||||||
Change in valuation allowances | -1,138 | -965 | ||||||
Change in unrecognized tax benefits | -108 | -535 | ||||||
Other | 47 | -52 | ||||||
Total tax benefit/(expense) | $ | 41 | $ | -141 | ||||
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Consolidated loss from continuing operations before taxes for domestic and international operations consisted of the following: | |||||||
Years Ended December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Domestic | $ | -3,249 | $ | -8,147 | ||||
International | 702 | 6,912 | ||||||
Loss from continuing operations before income tax | $ | -2,547 | $ | -1,235 | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The primary tax affected components of the Company’s deferred tax assets/(liabilities) consisted of the following: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Deferred tax assets – current | ||||||||
Prepaid commission agreement | $ | 1,277 | $ | 1,277 | ||||
Depreciation and impairment | 2,753 | 3,580 | ||||||
Other | 481 | 337 | ||||||
Less: Valuation allowances | -4,511 | -5,194 | ||||||
— | — | |||||||
Deferred tax assets – non current | ||||||||
Net operating losses | 61,938 | 60,023 | ||||||
Stock options | 888 | 840 | ||||||
Less: Valuation allowances | -62,684 | -60,863 | ||||||
142 | — | |||||||
Deferred tax liabilities – non current | ||||||||
Acquisition of intangibles | -107 | -183 | ||||||
Other | — | -16 | ||||||
Net deferred tax assets/(liabilities) | $ | 35 | $ | -199 | ||||
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following: | |||||||
(amounts in thousands) | ||||||||
Balance at January 1, 2013 | $ | 3,673 | ||||||
Additions based on tax positions related to the current year | 430 | |||||||
Reductions for tax positions of prior years | -82 | |||||||
Balance at December 31, 2013 | $ | 4,021 | ||||||
Additions based on tax positions related to the current year | 43 | |||||||
Reductions for tax positions of prior years | -3 | |||||||
Balance at December 31, 2014 | $ | 4,061 | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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 the significant components of revenues and losses from discontinued operations, net of income taxes. | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Revenues from casino operations | $ | 228 | $ | 2,738 | ||||
Revenues from non-gaming products | — | 2,043 | ||||||
Total revenues from discontinued operations | $ | 228 | $ | 4,781 | ||||
Pre-tax loss from casino operations | $ | -325 | $ | -3,819 | ||||
Pre-tax loss from non-gaming products | — | -2,163 | ||||||
Benefit for income taxes related to discontinued operations | — | 28 | ||||||
Loss from discontinued operations, net of tax | $ | -325 | $ | -5,954 | ||||
The following table details selected financial information for the discontinued operations in the consolidated statements of comprehensive income. | ||||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Loss from operations | $ | -416 | $ | -3,594 | ||||
Gain/(loss) on disposal | 84 | -2,442 | ||||||
Other income (1) | — | 146 | ||||||
Foreign currency exchange gain/(loss) | 7 | -92 | ||||||
Income tax benefit (2) | — | 28 | ||||||
Loss from discontinued operations, net of tax | $ | -325 | $ | -5,954 | ||||
-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 (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||
Schedule Of Future Minimum Payments For Capital And Operating Leases [Table Text Block] | Future minimum lease payment commitments, net of any sublease proceeds and including scheduled escalation provisions as of December 31, 2014 under the leases were as follows: | ||||||||||
Operating | |||||||||||
Leases | |||||||||||
(amounts in thousands) | Total | Sublease | Net | ||||||||
Payments | Proceeds | Payments | |||||||||
2015 | 829 | — | 829 | ||||||||
2016 | 181 | — | 181 | ||||||||
2017 | — | — | — | ||||||||
2018 | — | — | — | ||||||||
2019 | — | — | — | ||||||||
Thereafter | — | — | — | ||||||||
Loss_Per_Share_Tables
Loss Per Share (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of the basic and diluted loss per share from continuing operations consisted of the following: | |||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
(amounts in thousands, except per share | Number of | Per Share | Number of | Per Share | ||||||||||||||||
data) | Loss | Shares | Amount | Loss | Shares | Amount | ||||||||||||||
Basic | ||||||||||||||||||||
Net loss attributable to equity shareholders | $ | -2,506 | 8,188 | $ | -0.31 | $ | -1,376 | 7,494 | $ | -0.18 | ||||||||||
Effect of dilutive securities | ||||||||||||||||||||
Dilutive stock options/restricted shares (1) | — | — | — | — | ||||||||||||||||
Diluted | ||||||||||||||||||||
Net loss attributable to equity shareholders plus assumed conversion | $ | -2,506 | 8,188 | $ | -0.31 | $ | -1,376 | 7,494 | $ | -0.18 | ||||||||||
-1 | For the years end December 31, 2014 and 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. | |||||||||||||||||||
Retirement_Plan_Tables
Retirement Plan (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of retirement benefits for the years ended December 31, 2014 and 2013 in the statements of comprehensive income are as follows: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Service cost | $ | 7 | $ | 16 | ||||
Interest cost on benefits obligation | 1 | 2 | ||||||
Recognized actuarial loss | -12 | -4 | ||||||
Net periodic (benefit)/cost | $ | -4 | $ | 14 | ||||
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Movement in the present value of the retirement obligation for the years ended December 31, 2014 and 2013 are as follows: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | 21 | $ | 47 | ||||
Service cost | 7 | 16 | ||||||
Interest cost | 1 | 2 | ||||||
Actuarial gain and others | — | -44 | ||||||
Balance, December 31 | $ | 29 | $ | 21 | ||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Asset Retirement Obligation Disclosure [Abstract] | ||||||||
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of our asset retirement obligations are as follows: | |||||||
December 31, | ||||||||
(amounts in thousands) | 2014 | 2013 | ||||||
Balance, January 1 | $ | — | $ | — | ||||
Additions | 92 | — | ||||||
Accretion expense | — | — | ||||||
Balance, December 31 | $ | 92 | $ | — | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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: | ||||||||||
Accumulated | |||||||||||
Foreign | Other | ||||||||||
Defined Benefit | Currency | Comprehensive | |||||||||
(amounts in thousands) | Pension Plan | Translation | Income | ||||||||
Balances, January 1, 2013 | $ | 62 | $ | 867 | $ | 929 | |||||
Current period other comprehensive income/(loss) | 37 | -256 | -219 | ||||||||
Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary (1) | — | 32 | 32 | ||||||||
Balances, December 31, 2013 | 99 | 643 | 742 | ||||||||
Current period other comprehensive income | -12 | 23 | 11 | ||||||||
Balances, December 31, 2014 | $ | 87 | $ | 666 | $ | 753 | |||||
-1 | Amounts represented a reclassification from accumulated other comprehensive income to net loss from discontinued operations in Note 16 due to the disposal of a subsidiary. | ||||||||||
Description_of_Business_and_Si3
Description of Business and Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Australian dollar [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 1.23 | 1.13 |
Average Foreign Currency Exchange Rate Translation | 1.11 | 1.04 |
Hong Kong Dollar [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 7.76 | 7.75 |
Average Foreign Currency Exchange Rate Translation | 7.75 | 7.76 |
Philippine Peso [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 44.84 | 44.45 |
Average Foreign Currency Exchange Rate Translation | 44.47 | 42.55 |
Thai baht [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 32.97 | 32.92 |
Average Foreign Currency Exchange Rate Translation | 32.54 | 30.8 |
Description_of_Business_and_Si4
Description of Business and Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Accounting Polices [Line Items] | |||
Cash, FDIC Insured Amount | $17,100,000 | ||
Casino contract amortization | 2,445,000 | 2,464,000 | |
Commitment | 126,000 | 234,000 | |
Stock-based compensation expenses | 160,000 | 789,000 | |
Product development expenses | 387,000 | 261,000 | |
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | ||
Gaming property and equipment depreciation | 2,900,000 | 3,700,000 | |
Lease Term Percentage | 75.00% | ||
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. | ||
Inventory Valuation Reserves | 87,000 | 27,000 | |
Tangible Asset Impairment Charges | 121,000 | 75,000 | |
Defined Contribution Plan, Administrative Expenses | 162,000 | 75,000 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 12,000 | -37,000 | |
Asset Retirement Obligation, Cash Paid to Settle | 27,000 | ||
Gaming Products [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Depreciation | 810,000 | 323,000 | |
Gaming Operation [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Depreciation | 608,000 | 460,000 | |
Dreamworld Casino (Pailin) Limited [Member] | |||
Accounting Polices [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% | ||
Patents and Trademarks [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | 24,000 | 24,000 | |
Technical Know How [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | 26,000 | 26,000 | |
Other Gaming Related Intangible Assets [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | $252,000 | $252,000 | |
Egms and Systems [Member] | |||
Accounting Polices [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Refurbished EGMs and Systems [Member] | |||
Accounting Polices [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |||
Accounting Polices [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |||
Accounting Polices [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years |
Segments_Details
Segments (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $22,362 | $21,555 | ||
Operating income/(loss) | -2,507 | -983 | ||
Identifiable assets | 44,654 | 33,630 | ||
Goodwill | 351 | 353 | ||
Capital expenditures | 3,471 | 8,024 | ||
Depreciation and amortization | 7,289 | 7,407 | ||
Impairment of assets | 121 | 75 | ||
Interest expenses and finance fees | 4 | 7 | ||
Income tax (benefit)/expense | -41 | 141 | ||
Gaming operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 16,364 | 18,131 | ||
Operating income/(loss) | 6,621 | 7,796 | ||
Identifiable assets | 19,184 | 26,401 | ||
Goodwill | 351 | 353 | ||
Capital expenditures | 587 | [1] | 4,813 | [1] |
Depreciation and amortization | 6,293 | 6,947 | ||
Impairment of assets | 15 | 75 | ||
Interest expenses and finance fees | 0 | 0 | ||
Income tax (benefit)/expense | 0 | [2] | 0 | [2] |
Gaming products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 5,998 | 3,424 | ||
Operating income/(loss) | -2,381 | -1,120 | ||
Identifiable assets | 12,912 | 6,507 | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 2,796 | 2,879 | ||
Depreciation and amortization | 935 | 423 | ||
Impairment of assets | 106 | 0 | ||
Interest expenses and finance fees | 0 | 0 | ||
Income tax (benefit)/expense | 0 | 0 | ||
Corporate and Other Operating Costs and Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) | -6,747 | -7,659 | ||
Identifiable assets | 12,558 | 722 | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 88 | 332 | ||
Depreciation and amortization | 61 | 37 | ||
Impairment of assets | 0 | 0 | ||
Interest expenses and finance fees | 4 | 7 | ||
Income tax (benefit)/expense | ($41) | $141 | ||
[1] | Includes costs related to new gaming development projects of approximately $3.6 million for the year ended December 31, 2013. | |||
[2] | The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $122,000 and $108,000 for the years ended December 31, 2014 and 2013, respectively and were included in selling, general and administrative expenses. |
Segments_Details_1
Segments (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Segment Reporting Information [Line Items] | ||
Revenues | $22,362 | $21,555 |
Long Lived Assets Intangible Assets Including Goodwill | 18,447 | 22,709 |
Cambodia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 13,530 | 14,795 |
Long Lived Assets Intangible Assets Including Goodwill | 10,219 | 15,407 |
Macau [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 761 | 1,012 |
Philippines [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 7,467 | 4,751 |
Long Lived Assets Intangible Assets Including Goodwill | 1,664 | 2,097 |
Australia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 532 | 818 |
Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 72 | 179 |
Hong Kong [Member] | ||
Segment Reporting Information [Line Items] | ||
Long Lived Assets Intangible Assets Including Goodwill | 6,449 | 5,045 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long Lived Assets Intangible Assets Including Goodwill | $115 | $160 |
Segments_Details_Textual
Segments (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | |||
Casino Development Project capital Expenditure | $3,600,000 | ||
Income Taxes Paid | 0 | 0 | |
Dreamworld Leisure (Pailin) Limited [Member] | |||
Segment Reporting Information [Line Items] | |||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | |
Gaming Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 59.00% | 28.00% | |
Gaming Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 70.00% | 72.00% | |
Selling, General and Administrative Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Income Taxes Paid | $122,000 | $108,000 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ||
Raw materials | $1,866 | $809 |
Work-in-process | 600 | 342 |
Finished goods | 0 | 367 |
Spare parts | 151 | 119 |
Casino inventories | 0 | 26 |
Inventory, Net | $2,617 | $1,663 |
Prepaid_Expenses_and_Other_Cur2
Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Prepaid expenses and other current assets [Line Items] | ||||
Prepaid expenses and other current assets | $1,447 | $443 | ||
Prepayments to suppliers [Member] | ||||
Prepaid expenses and other current assets [Line Items] | ||||
Prepaid expenses and other current assets | 1,434 | [1] | 400 | [1] |
Prepaid leases [Member] | ||||
Prepaid expenses and other current assets [Line Items] | ||||
Prepaid expenses and other current assets | $13 | $43 | ||
[1] | Prepayments to suppliers increased from December 31, 2013 to December 31, 2014 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2015. |
Receivables_Details
Receivables (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Line Items] | ||
Trade receivables | $830 | $922 |
Other receivables | 316 | 453 |
Accounts Receivable, Gross, Current | 1,146 | 1,375 |
Less: allowance for doubtful accounts | 0 | 0 |
Net | $1,146 | $1,375 |
Gaming_Equipment_Details
Gaming Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $19,347 | $19,524 |
Less: accumulated depreciation | -13,723 | -11,353 |
Net | 5,624 | 8,171 |
EGMs [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | 17,844 | 18,065 |
EGMs [Member] | Minimum [Member] | ||
Gaming equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
EGMs [Member] | Maximum [Member] | ||
Gaming equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Systems [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | 1,503 | 1,417 |
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Other gaming equipment [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $0 | $42 |
Other gaming equipment [Member] | Minimum [Member] | ||
Gaming equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Other gaming equipment [Member] | Maximum [Member] | ||
Gaming equipment [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
Gaming_Equipment_Details_Textu
Gaming Equipment (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Gaming Equipment [Line Items] | ||
Cost Of Services Electronic Gaming Machine Depreciation and Amortization | $2.90 | $3.70 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Equipment, vehicles, furniture and fixtures | 6,697 | $4,109 |
Land and building | 2,928 | 2,949 |
Leasehold improvements | 1,421 | 1,029 |
Construction in progress | 634 | 1,112 |
Property, Plant and Equipment, Gross | 11,680 | 9,199 |
Less: accumulated depreciation | -2,785 | -1,342 |
Net | 8,895 | $7,857 |
Equipment, vehicles, furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment, vehicles, furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Land and building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 6 years |
Property_and_Equipment_Details1
Property and Equipment (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Gaming Products [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | $810,000 | $323,000 |
Gaming Operation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | $608,000 | $460,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, including Casino Contracts (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Net | $3,928 | $6,681 |
Gaming operation agreement [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 1,175 | 1,178 |
Less: accumulated amortization | -818 | -567 |
Net | 357 | 611 |
Gaming operation agreement [Member] | Maximum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Gaming operation agreement [Member] | Minimum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | |
Goodwill [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 351 | 353 |
Patents [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 114 | 114 |
Less: accumulated amortization | -83 | -62 |
Net | 31 | 52 |
Patents [Member] | Maximum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |
Patents [Member] | Minimum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Trademarks [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 26 | 26 |
Less: accumulated amortization | -12 | -10 |
Net | 14 | 16 |
Trademarks [Member] | Maximum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 9 years | |
Trademarks [Member] | Minimum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |
Technical know-how [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 261 | 261 |
Less: accumulated amortization | -68 | -41 |
Net | 193 | 220 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
Casino contracts [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 12,754 | 12,764 |
Less: accumulated amortization | -9,772 | -7,335 |
Net | $2,982 | $5,429 |
Casino contracts [Member] | Maximum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 6 years | |
Casino contracts [Member] | Minimum [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, including Casino Contracts (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance as of January 1 | $353 | $380 |
Foreign currency translation adjustment | -2 | -27 |
Balance as of December 31 | $351 | $353 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, including Casino Contracts (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Indefinite-lived Intangible Assets [Line Items] | |
2015 | $2,745 |
2016 | 683 |
2017 | 29 |
2018 | 29 |
2019 | 28 |
Thereafter | 63 |
Total | $3,577 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) (Goodwill and Intangible Assets, including Casino Contracts [Member], USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets, including Casino Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $2,700,000 | $2,800,000 |
Prepaids_Deposits_and_Other_As2
Prepaids, Deposits and Other Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Prepaids, Deposits and Other Assets [Line Items] | ||
Prepaids, deposits and other assets | $1,316 | $1,797 |
Prepaid taxes [Member] | ||
Prepaids, Deposits and Other Assets [Line Items] | ||
Prepaids, deposits and other assets | 323 | 927 |
Prepaid leases [Member] | ||
Prepaids, Deposits and Other Assets [Line Items] | ||
Prepaids, deposits and other assets | 211 | 222 |
Prepayments to suppliers [Member] | ||
Prepaids, Deposits and Other Assets [Line Items] | ||
Prepaids, deposits and other assets | 454 | 295 |
Rentals, utilities and other deposits [Member] | ||
Prepaids, Deposits and Other Assets [Line Items] | ||
Prepaids, deposits and other assets | $328 | $353 |
Prepaids_Deposits_and_Other_As3
Prepaids, Deposits and Other Assets (Details Textual) (Cambodian Provinces Of Kampot [Member], USD $) | Dec. 31, 2014 |
Cambodian Provinces Of Kampot [Member] | |
Prepaids, Deposits and Other Assets [Line Items] | |
Prepaid Leases | $211,000 |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accrued Expenses [Line Items] | ||||
Payroll and related costs | $723 | $601 | ||
Professional fees | 350 | 312 | ||
Withholding tax expenses | 583 | 551 | ||
Other tax expenses | 44 | [1] | 482 | [1] |
Others | 309 | 420 | ||
Total | $2,009 | $2,366 | ||
[1] | Other tax expenses as of December 31, 2013 represented an accrued tax liability related to the Philippines operations resulting from the finalization of the Philippines income tax return for the 2010 year, of which approximately $448,000 was reversed in the year ended December 31, 2014. |
Accrued_Expenses_Details_Textu
Accrued Expenses (Details Textual) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Accrued Expenses [Line Items] | |
Income Tax Credits and Adjustments | $448,000 |
Other_Liabilities_Details
Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities [Line Items] | ||
Other tax liabilities | $819 | $659 |
Others | 26 | 83 |
Total | $845 | $742 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Based Compensation [Line Items] | |||
Granted, Weighted Average Exercise Price (in dollars per share) | $4.84 | ||
Exercisable, Aggregate Intrinsic Value | $46,000 | ||
Employee Stock Option [Member] | |||
Stock Based Compensation [Line Items] | |||
Outstanding, Number of Shares | 823,134 | 739,384 | |
Granted, Number of Shares | 56,250 | 215,000 | |
Exercised, Number of Shares | 0 | 0 | |
Forfeited or expired, Number of Shares | -94,164 | -131,250 | |
Outstanding, Number of Shares | 785,220 | 823,134 | 739,384 |
Exercisable, Number of Shares | 727,949 | 695,970 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $8.45 | $8.54 | |
Granted, Weighted Average Exercise Price (in dollars per share) | $4.84 | $4.81 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | $0 | $0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | $9.80 | $3 | |
Outstanding, Weighted Average Exercise Price (in dollars per share) | $8.03 | $8.45 | $8.54 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $8.14 | $8.70 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 5 years 6 months | 5 years 11 months 26 days | 5 years 9 months 14 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 5 years 3 months 7 days | 5 years 7 months 17 days | |
Outstanding, Aggregate Intrinsic Value | 738,000 | 2,293,000 | |
Granted, Aggregate Intrinsic Value | 0 | 280,000 | |
Exercised, Aggregate Intrinsic Value | 0 | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 | |
Outstanding, Aggregate Intrinsic Value | 46,000 | 738,000 | 2,293,000 |
Exercisable, Aggregate Intrinsic Value | $46,000 | $738,000 |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 1) (Restricted Stock [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Restricted Stock [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Unvested balance, Number of Shares | 0 | 0 | ||
Granted, Number of Shares | 23,750 | 12,500 | ||
Vested, Number of Shares | -16,250 | [1] | -12,500 | [2] |
Unvested balance, Number of Shares | 7,500 | 0 | ||
Unvested balance, Weighted Average Fair Value at Grant Date | $0 | $0 | ||
Granted, Weighted Average Fair Value at Grant Date | $4.84 | $7.88 | ||
Vested, Weighted Average Fair Value at Grant Date | $4.84 | [1] | $7.88 | [2] |
Unvested balance, Weighted Average Fair Value at Grant Date | $4.84 | $0 | ||
Granted, Weighted Average Remaining Contractual Life (in years) | 0 years | 0 years | ||
Vested, Weighted Average Remaining Contractual Life (in years) | 0 years | [1] | 0 years | [2] |
Unvested balance, Weighted Average Remaining Contractual Life (in years) | 1 year 4 months 28 days | 0 years | ||
[1] | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2014 for which final vesting is subject to the approval by the Company's compensation committee. | |||
[2] | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2013 for which final vesting of 8,125 shares was approved by the Company's compensation committee in March 2014. |
StockBased_Compensation_Detail2
Stock-Based Compensation (Details 2) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation [Line Items] | ||
Expected volatility - Low | 73.03% | 72.16% |
Expected volatility - High | 79.31% | 76.49% |
Expected dividends - Low | 0.00% | 0.00% |
Expected dividends - High | 0.00% | 0.00% |
Risk free rate - Low | 1.16% | 0.55% |
Risk free rate - High | 2.52% | 2.83% |
Minimum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 3 years 8 months 23 days | 3 years 8 months 23 days |
Maximum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 9 years 1 month 10 days | 9 years 8 months 12 days |
StockBased_Compensation_Detail3
Stock-Based Compensation (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Feb. 26, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2010 | Dec. 12, 2014 | Dec. 31, 2012 | Jul. 13, 2012 | Sep. 08, 2008 | Jan. 01, 2009 | |
Stock Based Compensation [Line Items] | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,250,000 | ||||||||
Granted, Weighted Average Exercise Price, Options (in dollars per share) | $4.84 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value, Options | $2.28 | $2.76 | |||||||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $3.50 | ||||||||
Exercisable, Aggregate Intrinsic Value, Options | $46,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 411,000 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | 89,000 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 1 year 4 months 17 days | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 12,500 | 12,500 | |||||||
Stockholders' Equity, Reverse Stock Split | 1-for-4 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 57,271 | ||||||||
Employee Stock Option [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Granted, Weighted Average Exercise Price, Options (in dollars per share) | $4.84 | $4.81 | |||||||
Outstanding, Number of Shares, Options | 785,220 | 823,134 | 739,384 | ||||||
Exercisable, Aggregate Intrinsic Value, Options | $46,000 | $738,000 | |||||||
Granted, Number Of Shares | 56,250 | 215,000 | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $4.84 | ||||||||
Subsequent Event [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Stockholders' Equity, Reverse Stock Split | 1-for-4 | ||||||||
Stock Option Plan 2008 [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 625,000 | 937,500 | 312,500 | ||||||
Outstanding, Number of Shares, Options | 550,599 | ||||||||
Stock Option Plan 2008 [Member] | Upto Ten Percentage Of Total Combined Voting Power [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Maximum Exercise Price Percentage On Fair Market Value | 100.00% | ||||||||
Stock Option Plan 2008 [Member] | More Than Ten Percentage Of Total Combined Voting Power [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Maximum Exercise Price Percentage On Fair Market Value | 110.00% | ||||||||
Amended and Restated 1999 Stock Option Plan [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Outstanding, Number of Shares, Options | 229,620 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 937,500 | ||||||||
Amended and Restated 1999 Directors Stock Option Plan [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Outstanding, Number of Shares, Options | 5,001 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 18,750 | ||||||||
Restricted Stock [Member] | |||||||||
Stock Based Compensation [Line Items] | |||||||||
Granted, Number of Shares, Restricted Stock | 23,750 | 12,500 | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $4.84 | $7.88 |
Impairment_of_LongLived_Assets1
Impairment of Long-Lived Assets (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment Of Long Lived Assets [Line Items] | ||
Tangible Asset Impairment Charges | $121,000 | $75,000 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Related party transaction provided to: | ||
Sales of gaming products | $22,362 | $21,555 |
Melco Crown (Macau) Limited [Member] | ||
Related party transaction provided to: | ||
Sales of gaming products | 138 | 941 |
MCE Leisure (Philippines) Corporation [Member] | ||
Related party transaction provided to: | ||
Sales of gaming products | 3,523 | 0 |
Melco Crown Entertainment Limited [Member] | ||
Related party transaction provided to: | ||
Sales of gaming products | 243 | 0 |
Melco Services Limited [Member] | ||
Related party transaction provided by: | ||
Technical services | 2 | 10 |
Other | 2 | 0 |
Office rental | 0 | 46 |
Golden Future (Management Services) Ltd [Member] | ||
Related party transaction provided by: | ||
Management services | $276 | $146 |
Related_Party_Transactions_Det1
Related Party Transactions (Details 1) (Affiliated Entity [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Affiliated Entity [Member] | ||
Amounts due from related parties | $2,112 | $108 |
Amount due to a related party | $47 | $19 |
Related_Party_Transactions_Det2
Related Party Transactions (Details Textual) | Dec. 31, 2014 |
Melco Services Limited [Member] | |
Related Party Transaction [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 64.80% |
Melco International Development Limited [Member] | |
Related Party Transaction [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 34.20% |
Melco Crown (Macau) Limited [Member] | |
Related Party Transaction [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 90.00% |
MCE Leisure (Philippines) Corporation [Member] | |
Related Party Transaction [Line Items] | |
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax [Line Items] | ||
Federal B deferred | ($59) | ($59) |
State | 0 | 0 |
Current | -133 | 0 |
Deferred | 233 | -82 |
Total tax benefit/(expense) | $41 | ($141) |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax [Line Items] | ||
Federal tax expense at statutory rates | $866 | $420 |
Difference in jurisdictional tax rates | -223 | 501 |
Expense not deductible for tax | 32 | -46 |
Income not subject to tax | 876 | 1,565 |
Adjustment of provision to tax return | -311 | -1,029 |
Change in valuation allowances | -1,138 | -965 |
Change in unrecognized tax benefits | -108 | -535 |
Other | 47 | -52 |
Total tax benefit/(expense) | $41 | ($141) |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax [Line Items] | ||
Domestic | ($3,249) | ($8,147) |
International | 702 | 6,912 |
Loss from continuing operations before income tax | ($2,547) | ($1,235) |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets - current | ||
Prepaid commission agreement | $1,277 | $1,277 |
Depreciation and impairment | 2,753 | 3,580 |
Other | 481 | 337 |
Less: Valuation allowances | -4,511 | -5,194 |
Deferred Tax Assets, Net of Valuation Allowance, Current | 0 | 0 |
Deferred tax assets - non current | ||
Net operating losses | 61,938 | 60,023 |
Stock options | 888 | 840 |
Less: Valuation allowances | -62,684 | -60,863 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 142 | 0 |
Deferred tax liabilities - non current | ||
Acquisition of intangibles | -107 | -183 |
Other | 0 | -16 |
Deferred Tax Liabilities | -107 | -199 |
Net deferred tax assets/(liabilities) | $35 | ($199) |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax [Line Items] | ||
Beginning Balance | $4,021 | $3,673 |
Additions based on tax positions related to the current year | 43 | 430 |
Reductions for tax positions of prior years | -3 | -82 |
Ending Balance | $4,061 | $4,021 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax [Line Items] | ||
Withholding Of Taxes | $2,900,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 179,100,000 | 174,200,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 7,800,000 | 4,600,000 |
Undistributed Earnings of Foreign Subsidiaries | 20,800,000 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 270,000 | |
Income Tax Examination, Penalties and Interest Expense | 68,000 | |
Income Tax Examination, Penalties and Interest Accrued | 373,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | -3,249,000 | -8,147,000 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 702,000 | 6,912,000 |
Dolphin Australia [Member] | ||
Income Tax [Line Items] | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 3,200,000 | 8,100,000 |
Loss Decreased From Continuing Operations Before Income Taxes Domestic | 4,900,000 | |
Dreamworld Casino Pailin Limited [Member] | ||
Income Tax [Line Items] | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 700,000 | 6,900,000 |
Income Decreased From Continuing Operations Before Income Taxes Foreign | 6,200,000 | |
Pre-Quasi-Reorganization [Member] | ||
Income Tax [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | 61,500,000 | |
Post-Quasi-Reorganization [Member] | ||
Income Tax [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $5,700,000 |
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from discontinued operations | $228 | $4,781 |
Benefit for income taxes related to discontinued operations | 0 | 28 |
Loss from discontinued operations, net of tax | -325 | -5,954 |
Dreamworld Casino (Pailin) Limited [Member] | ||
Revenues from discontinued operations | 228 | 2,738 |
Pre-tax income/(loss) from discontinued operations | -325 | -3,819 |
Non Gaming Products [Member] | ||
Revenues from discontinued operations | 0 | 2,043 |
Pre-tax income/(loss) from discontinued operations | $0 | ($2,163) |
Discontinued_Operations_Detail1
Discontinued Operations (Details 1) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | ($325) | ($5,954) | ||
Dreamworld Casino (Pailin) Limited [Member] | ||||
Discontinued Operations [Line Items] | ||||
Loss from operations | -416 | -3,594 | ||
Gain/(loss) on disposal | 84 | -2,442 | ||
Other income | 0 | [1] | 146 | [1] |
Foreign currency exchange gain/(loss) | 7 | -92 | ||
Income tax benefit | 0 | [2] | 28 | [2] |
Loss from discontinued operations, net of tax | ($325) | ($5,954) | ||
[1] | Other income represented recognized government grant income from discontinued operations. | |||
[2] | Income tax benefit represented a reversal of previously recognized uncertain tax benefits. |
Discontinued_Operations_Detail2
Discontinued Operations (Details Textual) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 26 Months Ended | 12 Months Ended | ||||||
Mar. 28, 2013 | Dec. 31, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2011 | Jun. 30, 2014 | Jun. 20, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2014 | |
USD ($) | USD ($) | USD ($) | Dolphin Australia [Member] | Dolphin Australia [Member] | Dreamworld Casino (Pailin) Limited [Member] | Dreamworld Casino (Pailin) Limited [Member] | Dreamworld Casino (Pailin) Limited [Member] | Dreamworld Casino (Pailin) Limited [Member] | Dreamworld Leisure (Pailin) Limited [Member] | Dreamworld Leisure (Pailin) Limited [Member] | Dreamworld Leisure (Pailin) Limited [Member] | |
AUD | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||
Discontinued Operations [Line Items] | ||||||||||||
Purchase Price For Share Sale Agreement | 350,000 | |||||||||||
Lease for Melbourne facility, net of sub-lease income | 350,000 | |||||||||||
Employee Severance Liability Assumed | 750,000 | |||||||||||
Discontinued Operation Amount Due | 1,100,000 | |||||||||||
Profit Sharing Percentage | 20.00% | |||||||||||
Lease Initial Expiration Term | 20 years | |||||||||||
Monthly Rental Fee | 5,000 | |||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | 100.00% | 100.00% | |||||||||
Disposal Group Including Discontinued Operation Initial Consideration Received | 100,000 | |||||||||||
Disposal Group Including Discontinued Operation Remaining Consideration Monthly Installment Amount | 25,000 | |||||||||||
Disposal Group, Including Discontinued Operation, Consideration | 363,000 | 500,000 | ||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | 2,500,000 | |||||||||||
Disposal Group Including Discontinued Operation Remaining Consideration Total Installments | 16 | |||||||||||
Gain (Loss) on Disposition of Business | $90,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies [Line Items] | |
Total Payments - 2015 | $829 |
Total Payments - 2016 | 181 |
Total Payments - 2017 | 0 |
Total Payments - 2018 | 0 |
Total Payments - 2019 | 0 |
Total Payments - Thereafter | 0 |
Operating Leases Sublease Proceeds - 2015 | 0 |
Operating Leases Sublease Proceeds - 2016 | 0 |
Operating Leases Sublease Proceeds - 2017 | 0 |
Operating Leases Sublease Proceeds - 2018 | 0 |
Operating Leases Sublease Proceeds - 2019 | 0 |
Operating Leases Sublease Proceeds - Thereafter | 0 |
Net Payments - 2015 | 829 |
Net Payments - 2016 | 181 |
Net Payments - 2017 | 0 |
Net Payments - 2018 | 0 |
Net Payments - 2019 | 0 |
Net Payments - Thereafter | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments And Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $838,000 | $662,000 |
Loss_Per_Share_Details
Loss Per Share (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Basic | ||||
Net (loss)/income attributable to equity shareholders | ($2,506) | ($1,376) | ||
Net (loss)/income attributable to equity shareholders - Number of Shares | 8,188 | 7,494 | ||
Net (loss)/income attributable to equity shareholders, Per share Amount (in dollars per share) | ($0.31) | ($0.18) | ||
Effect of dilutive securities | ||||
Dilutive stock options/restricted shares | 0 | [1] | 0 | [1] |
Diluted | ||||
Net (loss)/income attributable to equity shareholders plus assumed conversion | ($2,506) | ($1,376) | ||
Net (loss)/income attributable to equity shareholders plus assumed conversion - Number of shares | 8,188 | 7,494 | ||
Net (loss)/income attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | ($0.31) | ($0.18) | ||
[1] | For the years end December 31, 2014 and 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. |
Loss_Per_Share_Details_Textual
Loss Per Share (Details Textual) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Loss Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 719,399 | 604,185 |
Retirement_Plan_Details
Retirement Plan (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Service cost | $7 | $16 |
Interest cost on benefits obligation | 1 | 2 |
Recognized actuarial loss | -12 | -4 |
Net periodic (benefit)/cost | ($4) | $14 |
Retirement_Plan_Details_1
Retirement Plan (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance, January 1 | $21 | $47 |
Service cost | 7 | 16 |
Interest cost | 1 | 2 |
Actuarial gain and others | 0 | -44 |
Balance, December 31 | $29 | $21 |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Balance, January 1 | $0 | $0 |
Additions | 92 | 0 |
Accretion expense | 0 | 0 |
Balance, December 31 | $92 | $0 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined Benefit Pension Plan, Beginning Balance | $62 | ||
Defined Benefit Pension Plan, Current period other comprehensive income/(loss) | -12 | 37 | |
Defined Benefit Pension Plan, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 0 | [1] | |
Defined Benefit Pension Plan, Ending Balance | 87 | 99 | |
Foreign Currency Translation, Beginning Balance | 643 | 867 | |
Foreign Currency Translation, Current period other comprehensive income/(loss) | 23 | -256 | |
Foreign Currency Translation, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 32 | [1] | |
Foreign Currency Translation, Ending Balance | 666 | 643 | |
Accumulated Other Comprehensive Income, Beginning Balance | 742 | 929 | |
Accumulated Other Comprehensive Income, Current period other comprehensive income/(loss) | 11 | -219 | |
Accumulated Other Comprehensive Income, Amounts reclassified from accumulated other comprehensive income to net loss on disposal of subsidiary | 32 | [1] | |
Accumulated Other Comprehensive Income, Ending Balance | $753 | $742 | |
[1] | Amounts represented a reclassification from accumulated other comprehensive income to net loss from discontinued operations in Note 16 due to the disposal of a subsidiary. |
Subsequent_Event_Details_Textu
Subsequent Event (Details Textual) | 1 Months Ended |
Feb. 26, 2015 | |
Subsequent Event [Line Items] | |
Stockholders' Equity, Reverse Stock Split | 1-for-4 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Stockholders' Equity, Reverse Stock Split | 1-for-4 |