Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 01, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Entertainment Gaming Asia Inc. | |
Entity Central Index Key | 1,004,673 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | EGT | |
Entity Common Stock, Shares Outstanding | 14,464,220 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 25,310 | $ 17,301 |
Accounts receivable, net | 585 | 830 |
Amounts due from related parties | 2,437 | 2,112 |
Other receivables | 235 | 316 |
Inventories | 3,019 | 2,617 |
Prepaid expenses and other current assets | 339 | 1,447 |
Contract amendment fees | 45 | 0 |
Total current assets | 31,970 | 24,623 |
Gaming equipment, net | 4,258 | 5,624 |
Casino contracts | 1,135 | 2,982 |
Property and equipment, net | 8,307 | 8,895 |
Goodwill | 334 | 351 |
Intangible assets, net | 359 | 595 |
Contract amendment fees | 0 | 126 |
Deferred tax asset | 135 | 142 |
Prepaids, deposits and other assets | 1,071 | 1,316 |
Total assets | 47,569 | 44,654 |
Current liabilities: | ||
Accounts payable | 437 | 645 |
Amounts due to related parties | 47 | 47 |
Accrued expenses | 1,482 | 2,009 |
Income tax payable | 121 | 0 |
Deferred revenue | 23 | 0 |
Customer deposits and other current liabilities | 319 | 306 |
Total current liabilities | 2,429 | 3,007 |
Other liabilities | 872 | 845 |
Deferred tax liability | 107 | 107 |
Total liabilities | $ 3,408 | $ 3,959 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $.001 par value, 18,750,000 shares authorized; 14,464,220 and 14,471,095 shares issued and outstanding | $ 14 | $ 14 |
Additional paid-in-capital | 47,747 | 47,680 |
Accumulated other comprehensive income | 674 | 753 |
Accumulated losses since January 1, 2011 ($386.1 million accumulated deficit eliminated) | (4,275) | (7,753) |
Total EGT stockholders' equity | 44,160 | 40,694 |
Non-controlling interest | 1 | 1 |
Total stockholders' equity | 44,161 | 40,695 |
Total liabilities and stockholders' equity | $ 47,569 | $ 44,654 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 18,750,000 | 18,750,000 |
Common stock, shares issued | 14,464,220 | 14,471,095 |
Common stock, shares outstanding | 14,464,220 | 14,471,095 |
Retained Earnings Accumulated Deficit Eliminated | $ 386.1 | $ 386.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/Loss - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Gaming operations | $ 4,483 | $ 3,965 | $ 13,407 | $ 12,267 |
Gaming products | 3,788 | 437 | 10,783 | 1,772 |
Total revenues | 8,271 | 4,402 | 24,190 | 14,039 |
Cost of gaming operations | ||||
Gaming property and equipment depreciation | 751 | 892 | 2,352 | 2,681 |
Casino contract amortization | 608 | 613 | 1,830 | 1,835 |
Other gaming related intangibles amortization | 63 | 63 | 189 | 189 |
Other operating costs | 927 | 877 | 2,718 | 2,617 |
Cost of gaming products | 2,834 | 571 | 8,824 | 2,985 |
Selling, general and administrative expenses | 1,270 | 1,383 | 4,205 | 4,102 |
Gain on disposition of assets | 0 | (15) | (22) | (23) |
Research and development expenses | 46 | 156 | 115 | 311 |
Depreciation and amortization | 53 | 59 | 159 | 158 |
Total operating costs and expenses | 6,552 | 4,599 | 20,370 | 14,855 |
Income/(loss) from operations | 1,719 | (197) | 3,820 | (816) |
Other (expenses)/income: | ||||
Interest expense and finance fees | 0 | 0 | (3) | (2) |
Interest income | 4 | 0 | 10 | 1 |
Foreign currency losses | (157) | (53) | (211) | (53) |
Other | 9 | 4 | 28 | 16 |
Total other expenses | (144) | (49) | (176) | (38) |
Income/(loss) from continuing operations before income tax | 1,575 | (246) | 3,644 | (854) |
Income tax expenses | (129) | (15) | (166) | (45) |
Net income/(loss) from continuing operations | 1,446 | (261) | 3,478 | (899) |
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | (414) |
Net income/(loss) attributable to EGT stockholders | 1,446 | (261) | 3,478 | (1,313) |
Other comprehensive loss: | ||||
Foreign currency translation | (64) | (93) | (79) | (35) |
Total other comprehensive loss, net of tax | (64) | (93) | (79) | (35) |
Comprehensive income/(loss) attributable to EGT stockholders | $ 1,382 | $ (354) | $ 3,399 | $ (1,348) |
Per share data (basic and diluted): | ||||
Earnings/(loss) (in dollars per share) | $ 0.10 | $ (0.04) | $ 0.24 | $ (0.18) |
Earnings/(loss) from continuing operations (in dollars per share) | 0.10 | (0.04) | 0.24 | (0.12) |
Loss from discontinued operations, net of tax (in dollars per share) | $ 0 | $ 0 | $ 0 | $ (0.06) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 14,460 | 7,506 | 14,456 | 7,502 |
Diluted (in shares) | 14,477 | 7,506 | 14,483 | 7,502 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows provided by operating activities: | ||
Net income/(loss) | $ 3,478 | $ (1,313) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation of gaming equipment and property and equipment | 3,313 | 3,447 |
Amortization of casino contracts | 1,830 | 1,835 |
Amortization of intangible assets | 226 | 226 |
Amortization of contract amendment fees | 81 | 81 |
Stock-based compensation expenses | 67 | 160 |
Loss on disposition of subsidiary, including property and equipment | 0 | 20 |
Gain on disposition of assets | (22) | (18) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 99 | 447 |
Inventories | (405) | (3,090) |
Prepaid expenses and other current assets | 1,110 | (777) |
Prepaids, deposits and other assets | 225 | 95 |
Accounts payable | (144) | 87 |
Amounts due from/to related parties | (323) | 107 |
Accrued expenses and other liabilities | (471) | (928) |
Income tax payable | 121 | 0 |
Customer deposits and other current liabilities | 13 | 1,396 |
Net cash provided by operating activities | 9,198 | 1,775 |
Cash flows used in investing activities: | ||
Construction/purchase of property and equipment | (932) | (2,279) |
Purchases of gaming machines and systems | (562) | (456) |
Proceeds from sale of gaming equipment and property and equipment | 42 | 130 |
Proceeds from sale of subsidiary related to discontinued operations | 200 | 42 |
Net cash used in investing activities | (1,252) | (2,563) |
Cash flows used in financing activities: | ||
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 63 | (21) |
Increase/(decrease) in cash and cash equivalents | 8,009 | (809) |
Cash and cash equivalents at beginning of period | 17,301 | 5,301 |
Cash and cash equivalents at end of period | $ 25,310 | $ 4,492 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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 gaming markets in Asia 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 These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 26, 2015. Certain previously reported amounts have been reclassified to conform to the current period presentation. The Company effected a 1-for-4 reverse stock split of its common shares as of 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. 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. 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. 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/loss and related notes for all periods presented. All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2015, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 25.1 Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. Inventories 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. There were no lower of cost or market (LCM) write-downs to inventories as of September 30, 2015 and 2014. The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) ASC 360, Property, Plant and Equipment Prepaids, deposits and other assets consist primarily of prepaid lease, prepaid value-added taxes in foreign countries, prepayments to suppliers, rental and utilities and other deposits. Gaming equipment consists primarily of EGMs and systems. Gaming equipment is stated at cost. The Company depreciates new EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 586,000 739,000 1.9 2.2 Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to twenty years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll, and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 165,000 153,000 487,000 450,000 Depreciation of property and equipment of approximately $ 282,000 224,000 819,000 545,000 Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. Amortization expenses related to casino contracts were approximately $ 608 613 63,000 189,000 7,000 20,000 6,000 18,000 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 judgments, 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 future 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 any of the three-month or nine-month periods ended September 30, 2015 and 2014. 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. See Note 16. ASC 450, Contingencies, 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 its slot participation 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 payments for net winnings are received. All slot participation operations revenues were recognized as earned during the three-month and nine-month periods ended September 30, 2015 and 2014, respectively. 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 $ 45 126 For 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 machines and progressive jackpots because the Company can avoid payment of such amounts, 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/loss. In 2014, the Company also earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within a former casino property. Revenues from gaming table leasing arrangements were recognized as earned over the contractual terms of the arrangements 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. In accordance with the criteria of EITF 99-19, the Company recognizes gross revenue when it acts as a principal, has discretion to choose suppliers and establish selling price, bears credit risk and provides the products or services required in the transaction. If the above criteria are not met, in which the supplier is the primary obligor in the arrangement and bears the general inventory risk, the Company recognizes revenue net of related costs. The Company also recognizes revenue from the sale of its products to end users on bill-and-hold arrangements when all of the following have been satisfied: · The risk of ownership must be passed to the buyer; · The customer must have a fixed commitment to purchase the goods; · The buyer, not the Company, must request that the transaction be on a bill-and-hold basis; · There must be a fixed schedule for the delivery of goods; · The Company must not have specific performance obligations such that the earning process is not complete; · The ordered goods must be segregated from the Company’s inventory and not subject to being used to fill other orders; and · The product must be complete and ready for shipment. Sales related to bill-and-hold arrangements were approximately $ 2.1 and $2.1 million and $NIL and nine-month periods Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation 17 19 67 160 Research and Development Research and development expenses are expensed as incurred. Employee-related costs associated with research and development are included in research and development expenses. Research and development expenses were 46 156 115 311 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 · The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of September 30, 2015 or December 31, 2014. 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, 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 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. Basic earnings/(loss) per share are computed by dividing the reported net earnings/(loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive due to the stock options’ exercise price exceeds the Company’s stock price as of September 30, 2015. There were no differences in diluted loss per share from basic loss per share for the nine-month period ended September 30, 2014 as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. The functional currency of the Company’s international subsidiaries, except for its operations in Cambodia whose functional currency is also U.S. dollars, 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/loss. (US$1 to foreign currency) September 30, 2015 December 31, 2014 Australian dollar 1.43 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 46.87 44.84 Thai baht 36.44 32.97 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2015 2014 2015 2014 Australian dollar 1.38 1.08 1.31 1.09 Hong Kong dollar 7.75 7.75 7.75 7.75 Philippine peso 46.06 43.89 45.06 44.33 Thai baht 35.20 32.17 33.71 32.46 Fair value is defined under ASC 820, Fair Value Measurements and Disclosures · Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. · Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of September 30, 2015, the fair values of financial assets and liabilities approximate carrying values due to the short maturities of these items. The Company provides pension benefits to all regular full-time employees in the Philippines 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/loss. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income/loss in any of the three-month and nine-month periods ended September 30, 2015 and 2014. The movement for the accrued retirement obligation as of September 30, 2015 was due to foreign currency impact of exchange rate change. 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, the Company recognizes a gain or loss on settlement. The Company records all asset retirement obligations for which it has legal obligations to remove all installation works and reinstate the manufacturing facilities to its original state at its estimated fair value. For the three-month and nine-month periods ended September 30, 2015 and 2014, the Company recognized approximately $ 4,000 13,000 In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis”. The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 will be effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2015, with early adoption permitted. The Company does not expect the impact of the adoption of ASU 2015-02 to be material to its consolidated financial statements. In April 2015, the FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”, which gives an entity whose year-end does not coincide with a month end the ability to measure defined benefit plan assets and obligations using the month end closest to the entities year end. ASU 2015-04 will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect the impact of the adoption of ASU 2015-04 to be material to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory", which requires inventory to be recorded at the lower of cost and net realizable value. The provisions of this update will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016, and are not expected to have a material effect on our consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date”, which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” to January 1, 2018. The Company is currently in the process of evaluating the impact of the prescribed change on our consolidated financial statements. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | 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 as well as the distribution of third-party gaming products. The Company owned and operated a casino in the Pailin Province of Cambodia. In June 2014, the Company ceased operation of the casino and entered into an agreement to sell 100 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Gaming operations $ 4,483 $ 3,965 $ 13,407 $ 12,267 Gaming products 3,788 437 10,783 1,772 Total revenues $ 8,271 $ 4,402 $ 24,190 $ 14,039 Operating income/(loss): Gaming operations operating income $ 2,134 $ 1,535 $ 6,342 $ 4,968 Gaming products operating income/(loss) 916 (290) 1,850 (1,524) Corporate and other operating costs and expenses (1,331) (1,442) (4,372) (4,260) Total operating income/(loss) $ 1,719 $ (197) $ 3,820 $ (816) Depreciation and amortization: Gaming operations $ 1,431 $ 1,581 $ 4,401 $ 4,748 Gaming products 309 257 897 642 Corporate 24 20 71 38 Total depreciation and amortization $ 1,764 $ 1,858 $ 5,369 $ 5,428 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cambodia $ 3,871 $ 3,201 $ 11,442 $ 10,096 Macau 2,206 134 2,773 630 Philippines 1,364 879 7,572 2,743 Russia 786 1,286 Australia 41 182 1,108 498 Other 3 6 9 72 Total $ 8,271 $ 4,402 $ 24,190 $ 14,039 For the three-month and nine-month periods ended September 30, 2015 and 2014, in the gaming operations segment, the largest customer represented 75 71 75 69 58 42 41 19 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Raw materials $ 1,811 $ 1,866 Work-in-process 662 600 Finished goods (1) 439 Spare parts 107 151 Total $ 3,019 $ 2,617 (1) Finished goods increased from December 31, 2014 to September 30, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the fourth quarter of 2015. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | Prepaid Expenses and Other Current Assets (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Prepayments to suppliers (1) $ 326 $ 1,434 Prepaid leases 13 13 Total $ 339 $ 1,447 (1) Prepayments to suppliers decreased from December 31, 2014 to September 30, 2015 due to fewer new purchases which required deposit payments in the nine-month period ended September 30, 2015. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. Receivables (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Trade receivables (1) $ 585 $ 830 Other receivables 235 316 820 1,146 Less: allowance for doubtful accounts Net $ 820 $ 1,146 (1) Trade receivables decreased from December 31, 2014 to September 30, 2015 due to higher collection of receivables in the nine-month period ended September 30, 2015. |
Gaming Equipment
Gaming Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Electronic Gaming Machines EGMs and Systems [Text Block] | Gaming Equipment (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) EGMs 3-5 $ 17,902 $ 17,844 Systems 5 1,561 1,503 19,463 19,347 Less: accumulated depreciation (15,205) (13,723) Net carrying value $ 4,258 $ 5,624 Depreciation expense on gaming equipment of approximately $ 586,000 739,000 1.9 2.2 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | Note 7. Property and Equipment Useful Life (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) Equipment, vehicles, furniture and fixtures 3-10 $ 7,252 $ 6,697 Land and buildings 0-5 2,928 2,928 Leasehold improvements 1-6 1,606 1,421 Construction in progress N/A 634 634 12,420 11,680 Less: accumulated depreciation (4,113) (2,785) Net carrying value $ 8,307 $ 8,895 Depreciation expense on property and equipment of approximately $ 165,000 153,000 487,000 450,000 Depreciation expense on property and equipment of approximately $ 282,000 224,000 819,000 545,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, including Casino Contracts | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. Goodwill and Intangible Assets, including Casino Contracts Useful Life (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) Gaming operation agreement 4-5 $ 1,166 $ 1,175 Less: accumulated amortization (1,008) (818) 158 357 Goodwill N/A 334 351 Patents 5-6 114 114 Less: accumulated amortization (98) (83) 16 31 Trademarks 5-9 26 26 Less: accumulated amortization (15) (12) 11 14 Technical know-how 10 261 261 Less: accumulated amortization (87) (68) 174 193 Casino contracts 5-6 12,647 12,754 Less: accumulated amortization (11,512) (9,772) 1,135 2,982 Net carrying value $ 1,828 $ 3,928 Amortization expenses for finite-lived intangible assets were approximately $ 684,000 689,000 2.1 2.1 (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 351 $ 353 Foreign currency translation adjustment (17) (2) Balance as of September 30/December 31 $ 334 $ 351 |
Prepaids, Deposits and Other As
Prepaids, Deposits and Other Assets | 9 Months Ended |
Sep. 30, 2015 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Prepaid Deposits and Other Assets Noncurrent Disclosure [Text Block] | Note 9. Prepaids, Deposits and Other Assets (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Prepaid taxes $ 380 $ 323 Prepaid lease (1) 204 211 Prepayments to suppliers 162 454 Rentals, utilities and other deposits 325 328 Total $ 1,071 $ 1,316 (1) The prepaid lease consisted of land lease prepayments for a gaming development project located in Cambodia. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Disclosure [Text Block] | Accrued Expenses (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Payroll and related costs (1) $ 254 $ 723 Professional fees 329 350 Withholding taxes 550 583 Other tax expenses 44 44 Other 305 309 Total $ 1,482 $ 2,009 (1) Payroll and related costs decreased from December 31, 2014 to September 30, 2015 primarily due to the settlement of an accrued bonus in the three-month period ended June 30, 2015. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Note 11. Other Liabilities (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Other tax liabilities $ 739 $ 694 Other 133 151 Total $ 872 $ 845 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
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 At the annual shareholders meeting held on September 8, 2008, a new stock option plan, 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 previous 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 312,500 625,000 937,500 1,250,000 100 110 During the nine-month period ended September 30, 2015, there were no grants of stock options or restricted stock awards and there were no exercises 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 18,750 As of September 30, 2015, stock options for the purchase of 229,377 4,376 As of September 30, 2015, stock options for the purchase of 536,848 As of September 30, 2015, stock options for the purchase of 736,851 8.12 3.35 43 40,000 33,750 23,000 0.73 Options Weighted Average Remaining Contractual Aggregate Number of Weighted Average Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (14,431) 5.98 Outstanding as of September 30, 2015 770,601 8.06 4.61 43 Exercisable as of September 30, 2015 736,851 $ 8.12 4.47 $ 43 Weighted Average Weighted Average Remaining Fair Value at Contractual Life Number of shares Grant Date (in years) Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Granted Vested (3,750) Unvested balance as of September 30, 2015 3,750 $ 4.84 0.66 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 and restricted common stock with performance criteria are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends, nor does it expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. Nine-Month Period Ended September 30, 2015 2014 Range of values Low High Low High Expected volatility 71.85 % 80.91 % 73.03 % 76.27 % Expected dividends Expected term (in years) 4.78 8.11 3.73 9.11 Risk free rate 1.13 % 2.02 % 1.16 % 2.52 % For stock-based compensation accrued to employees and non-employee directors, the Company recognizes stock-based compensation expenses for all service-based awards with graded vesting schedules on the straight-line basis over the requisite service period for the entire award. Initial accruals of compensation expense are based on the estimated number of shares for which requisite service is expected to be rendered. Estimates are revised if subsequent information indicates that forfeitures will differ from previous estimates, and the cumulative effect on compensation cost of a change in the estimated forfeitures is recognized in the period of the change. For non-employee awards, the Company remeasures compensation cost each period until the service condition is complete and recognizes compensation cost on the straight-line basis over the requisite service period. The Company estimates forfeitures and recognizes compensation cost only for those awards expected to vest assuming all awards would vest and reverse recognized compensation cost for forfeited awards when the awards are actually forfeited. For awards with service conditions and graded vesting that were granted prior to the adoption of ASC 718, the Company estimates the requisite service period and the number of shares expected to vest, and recognizes compensation expense for each tranche on the straight-line basis over the estimated requisite service period. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13. Related Party Transactions Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Related party transactions provided to: Melco Crown (Macau) Limited Sales of gaming products $ 9 $ $ 358 $ 135 MCE Leisure (Philippines) Corporation Sales of gaming products $ 129 $ 63 $ 4,460 $ 161 Melco Crown Entertainment Limited Sales of gaming products $ $ 115 $ 212 $ 115 Oriental Regent Limited Sales of gaming products $ 786 $ $ 1,286 $ Studio City International Holding Limited Sales of gaming products $ 2,186 $ $ 2,186 $ Related party transactions provided by: Melco Services Limited Technical services $ $ 1 $ 1 $ 2 Other 2 1 7 2 Aberdeen Restaurant Enterprises Limited Other $ 4 $ $ 5 $ Golden Future (Management Services) Limited Management services $ 63 $ 60 $ 210 $ 209 Melco Services Limited is a wholly-owned subsidiary of Melco International Development Limited, which owns 64.8 Melco International Development Limited owns 34.3 owns 90 Limited, 68.3 60 Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. Melco International Development Limited indirectly owns 86.7 Limited and 5 (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Amounts due from related parties $ 2,437 $ 2,112 Amounts due to related parties $ 47 $ 47 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The Company recorded income tax expenses of approximately $ 129 15 166 45 8.2 (6.0) 4.6 (5.2) The fixed obligation tax arrangement for EGT Cambodia is subject to annual renewal and negotiation and was renewed for 2015. The Company is subject to income tax examinations by tax authorities in jurisdictions in which it operates. The Company’s 2010 to 2014 United Status income tax returns remain open to examination by the Internal Revenue Service. The Company’s 2009 to 2013 Australian income tax returns remain open to examination by the Australian Taxation Office. The Company’s 2011 to 2014 Cambodian income tax returns remain open to examination by the General Department of Taxation. The Company’s 2013 to 2014 Philippines income tax returns remain open to examination by the Philippines Bureau of Internal Revenue. The Company’s 2008 to 2014 Hong Kong income tax returns remain open to examination by the Hong Kong Inland Revenue Department. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 15. Discontinued Operations 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 20 20 Dreamworld Casino (Pailin) was unprofitable and after unsuccessful efforts to improve performance, in June 2014, the Company ceased operation of the casino. On June 20, 2014, the Company entered into an agreement to sell 100 The sale included all assets of DWP with the exception of its EGMs, certain surveillance equipment and other assets excluded in the agreement and prohibited any use of the Dreamworld brand name by the buyer. Total consideration to be paid to the Company by the buyer was to be $ 500,000 100,000 25,000 363,000 90,000 The Company had recorded an impairment charge of approximately $ 2.5 Three-Month Period Ended September 30, Nine-Month Period Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Loss from operations $ $ $ $ (421) Foreign currency exchange gain 7 Loss from discontinued operations, net of tax $ $ $ $ (414) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 16. Commitments and Contingencies Legal Matters There are no pending legal proceedings, other than routine litigation matters incidental to our business, to which the Company or its |
Earnings_(Loss) Per Share
Earnings/(Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 17. Earnings/(Loss) Per Share The Company effected a 1-for-4 Three-Month Period Ended September 30, 2015 2014 (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 1,446 14,460 $ 0.10 $ (261) 7,506 $ (0.04) Effect of dilutive securities Dilutive stock options/restricted shares (1) 17 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 1,446 14,477 $ 0.10 $ (261) 7,506 $ (0.04) Nine-Month Period Ended September 30, 2015 2014 (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 3,478 14,456 $ 0.24 $ (899) 7,502 $ (0.12) Effect of dilutive securities Dilutive stock options/restricted shares (1) 27 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 3,478 14,483 $ 0.24 $ (899) 7,502 $ (0.12) (1) There was 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 for the three-month and nine-month period ended September 30, 2014. Three-Month Period Nine-Month Period Ended September 30, Ended September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Anti-dilutive outstanding stock options excluded from computation of diluted earnings per share 753,874 808,872 744,381 755,747 |
Retirement Plan
Retirement Plan | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Retirement Plan (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 29 $ 21 Service cost 7 Interest cost 1 Actuarial loss and other (1) Balance as of September 30/December 31 $ 28 $ 29 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 19. Asset Retirement Obligations (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 92 $ Additions 92 Balance as of September 30/December 31 $ 92 $ 92 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 20. Accumulated Other Comprehensive Income Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances as of January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive (loss)/income (12) 23 11 Balances as of December 31, 2014 87 666 753 Current period other comprehensive loss (79) (79) Balances as of September 30, 2015 (Unaudited) $ 87 $ 587 $ 674 |
Description of Business and S26
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on March 26, 2015. Certain previously reported amounts have been reclassified to conform to the current period presentation. The Company effected a 1-for-4 reverse stock split of its common shares as of 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. |
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/loss and related notes for all periods presented. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2015, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 25.1 |
Accounts Receivable And Allowance For Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. There were no lower of cost or market (LCM) write-downs to inventories as of September 30, 2015 and 2014. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) ASC 360, Property, Plant and Equipment |
Prepaid Deposits And Other Assets [Policy Text Block] | Prepaids, Deposits and Other Assets Prepaids, deposits and other assets consist primarily of prepaid lease, 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 EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 586,000 739,000 1.9 2.2 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to twenty years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll, and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 165,000 153,000 487,000 450,000 Depreciation of property and equipment of approximately $ 282,000 224,000 819,000 545,000 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets, Including Casino Contracts Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. Amortization expenses related to casino contracts were approximately $ 608 613 63,000 189,000 7,000 20,000 6,000 18,000 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 judgments, 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 future 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 any of the three-month or nine-month periods ended September 30, 2015 and 2014. |
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. See Note 16. ASC 450, Contingencies, |
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 its slot participation 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 payments for net winnings are received. All slot participation operations revenues were recognized as earned during the three-month and nine-month periods ended September 30, 2015 and 2014, respectively. 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 $ 45 126 For 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 machines and progressive jackpots because the Company can avoid payment of such amounts, 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/loss. In 2014, the Company also earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within a former casino property. Revenues from gaming table leasing arrangements were recognized as earned over the contractual terms of the arrangements 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. In accordance with the criteria of EITF 99-19, the Company recognizes gross revenue when it acts as a principal, has discretion to choose suppliers and establish selling price, bears credit risk and provides the products or services required in the transaction. If the above criteria are not met, in which the supplier is the primary obligor in the arrangement and bears the general inventory risk, the Company recognizes revenue net of related costs. The Company also recognizes revenue from the sale of its products to end users on bill-and-hold arrangements when all of the following have been satisfied: · The risk of ownership must be passed to the buyer; · The customer must have a fixed commitment to purchase the goods; · The buyer, not the Company, must request that the transaction be on a bill-and-hold basis; · There must be a fixed schedule for the delivery of goods; · The Company must not have specific performance obligations such that the earning process is not complete; · The ordered goods must be segregated from the Company’s inventory and not subject to being used to fill other orders; and · The product must be complete and ready for shipment. Sales related to bill-and-hold arrangements were approximately $ 2.1 and $2.1 million and $NIL and nine-month periods |
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 17 19 67 160 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development expenses are expensed as incurred. Employee-related costs associated with research and development are included in research and development expenses. Research and development expenses were 46 156 115 311 |
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 · The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of September 30, 2015 or December 31, 2014. |
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, 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 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] | Earnings/(Loss) per Share Basic earnings/(loss) per share are computed by dividing the reported net earnings/(loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive due to the stock options’ exercise price exceeds the Company’s stock price as of September 30, 2015. There were no differences in diluted loss per share from basic loss per share for the nine-month period ended September 30, 2014 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 also U.S. dollars, 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/loss. (US$1 to foreign currency) September 30, 2015 December 31, 2014 Australian dollar 1.43 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 46.87 44.84 Thai baht 36.44 32.97 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2015 2014 2015 2014 Australian dollar 1.38 1.08 1.31 1.09 Hong Kong dollar 7.75 7.75 7.75 7.75 Philippine peso 46.06 43.89 45.06 44.33 Thai baht 35.20 32.17 33.71 32.46 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Fair value is defined under ASC 820, Fair Value Measurements and Disclosures ⋅ Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. ⋅ Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. ⋅ Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of September 30, 2015, the fair values of financial assets and liabilities approximate carrying values due to the short maturities 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 in the Philippines 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/loss. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income/loss in any of the three-month and nine-month periods ended September 30, 2015 and 2014. The movement for the accrued retirement obligation as of September 30, 2015 was due to foreign currency impact of exchange rate change. |
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, the Company recognizes a gain or loss on settlement. The Company records all asset retirement obligations for which it has legal obligations to remove all installation works and reinstate the manufacturing facilities to its original state at its estimated fair value. For the three-month and nine-month periods ended September 30, 2015 and 2014, the Company recognized approximately $ 4,000 13,000 |
New Accounting Pronouncements, Policy [Policy Text Block] | In February 2015, the FASB issued ASU 2015-02, “Amendments to the Consolidation Analysis”. The amendments in ASU 2015-02 affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 will be effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2015, with early adoption permitted. The Company does not expect the impact of the adoption of ASU 2015-02 to be material to its consolidated financial statements. In April 2015, the FASB issued ASU 2015-04, “Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets”, which gives an entity whose year-end does not coincide with a month end the ability to measure defined benefit plan assets and obligations using the month end closest to the entities year end. ASU 2015-04 will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, with early adoption permitted. The Company does not expect the impact of the adoption of ASU 2015-04 to be material to our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory", which requires inventory to be recorded at the lower of cost and net realizable value. The provisions of this update will be effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016, and are not expected to have a material effect on our consolidated financial statements. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date”, which defers the effective date of ASU 2014-09, “Revenue from Contracts with Customers” to January 1, 2018. The Company is currently in the process of evaluating the impact of the prescribed change on our consolidated financial statements. |
Description of Business and S27
Description of Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of September 30, 2015 and December 31, 2014 and average exchange rates for the three-month and nine-month periods ended September 30, 2015 and 2014. (US$1 to foreign currency) September 30, 2015 December 31, 2014 Australian dollar 1.43 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 46.87 44.84 Thai baht 36.44 32.97 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2015 2014 2015 2014 Australian dollar 1.38 1.08 1.31 1.09 Hong Kong dollar 7.75 7.75 7.75 7.75 Philippine peso 46.06 43.89 45.06 44.33 Thai baht 35.20 32.17 33.71 32.46 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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. Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Gaming operations $ 4,483 $ 3,965 $ 13,407 $ 12,267 Gaming products 3,788 437 10,783 1,772 Total revenues $ 8,271 $ 4,402 $ 24,190 $ 14,039 Operating income/(loss): Gaming operations operating income $ 2,134 $ 1,535 $ 6,342 $ 4,968 Gaming products operating income/(loss) 916 (290) 1,850 (1,524) Corporate and other operating costs and expenses (1,331) (1,442) (4,372) (4,260) Total operating income/(loss) $ 1,719 $ (197) $ 3,820 $ (816) Depreciation and amortization: Gaming operations $ 1,431 $ 1,581 $ 4,401 $ 4,748 Gaming products 309 257 897 642 Corporate 24 20 71 38 Total depreciation and amortization $ 1,764 $ 1,858 $ 5,369 $ 5,428 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Geographic segment revenues for the three-month and nine-month periods ended September 30, 2015 and 2014 consisted of the following: Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cambodia $ 3,871 $ 3,201 $ 11,442 $ 10,096 Macau 2,206 134 2,773 630 Philippines 1,364 879 7,572 2,743 Russia 786 1,286 Australia 41 182 1,108 498 Other 3 6 9 72 Total $ 8,271 $ 4,402 $ 24,190 $ 14,039 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Raw materials $ 1,811 $ 1,866 Work-in-process 662 600 Finished goods (1) 439 Spare parts 107 151 Total $ 3,019 $ 2,617 (1) Finished goods increased from December 31, 2014 to September 30, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the fourth quarter of 2015. |
Prepaid Expenses and Other Cu30
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Prepayments to suppliers (1) $ 326 $ 1,434 Prepaid leases 13 13 Total $ 339 $ 1,447 (1) Prepayments to suppliers decreased from December 31, 2014 to September 30, 2015 due to fewer new purchases which required deposit payments in the nine-month period ended September 30, 2015. |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Schedule Of Accounts And Other Receivables [Table Text Block] | Accounts and other receivables consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Trade receivables (1) $ 585 $ 830 Other receivables 235 316 820 1,146 Less: allowance for doubtful accounts Net $ 820 $ 1,146 (1) Trade receivables decreased from December 31, 2014 to September 30, 2015 due to higher collection of receivables in the nine-month period ended September 30, 2015. |
Gaming Equipment (Tables)
Gaming Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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. The major categories of gaming equipment and accumulated depreciation consisted of the following: (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) EGMs 3-5 $ 17,902 $ 17,844 Systems 5 1,561 1,503 19,463 19,347 Less: accumulated depreciation (15,205) (13,723) Net carrying value $ 4,258 $ 5,624 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost. The major categories of property and equipment and accumulated depreciation consisted of the following: Useful Life (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) Equipment, vehicles, furniture and fixtures 3-10 $ 7,252 $ 6,697 Land and buildings 0-5 2,928 2,928 Leasehold improvements 1-6 1,606 1,421 Construction in progress N/A 634 634 12,420 11,680 Less: accumulated depreciation (4,113) (2,785) Net carrying value $ 8,307 $ 8,895 |
Goodwill and Intangible Asset34
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and intangible assets, if any, are stated at cost. The major categories of goodwill and intangible assets and accumulated amortization consisted of the following: Useful Life (amounts in thousands) (years) September 30, 2015 December 31, 2014 (Unaudited) Gaming operation agreement 4-5 $ 1,166 $ 1,175 Less: accumulated amortization (1,008) (818) 158 357 Goodwill N/A 334 351 Patents 5-6 114 114 Less: accumulated amortization (98) (83) 16 31 Trademarks 5-9 26 26 Less: accumulated amortization (15) (12) 11 14 Technical know-how 10 261 261 Less: accumulated amortization (87) (68) 174 193 Casino contracts 5-6 12,647 12,754 Less: accumulated amortization (11,512) (9,772) 1,135 2,982 Net carrying value $ 1,828 $ 3,928 |
Schedule of Goodwill [Table Text Block] | Goodwill movements during the periods consisted of the following: (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 351 $ 353 Foreign currency translation adjustment (17) (2) Balance as of September 30/December 31 $ 334 $ 351 |
Prepaids, Deposits and Other 35
Prepaids, Deposits and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Schedule Of Prepaid Deposits And Other Assets [Table Text Block] | Prepaids, deposits and other assets consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Prepaid taxes $ 380 $ 323 Prepaid lease (1) 204 211 Prepayments to suppliers 162 454 Rentals, utilities and other deposits 325 328 Total $ 1,071 $ 1,316 (1) The prepaid lease consisted of land lease prepayments for a gaming development project located in Cambodia. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Payroll and related costs (1) $ 254 $ 723 Professional fees 329 350 Withholding taxes 550 583 Other tax expenses 44 44 Other 305 309 Total $ 1,482 $ 2,009 (1) Payroll and related costs decreased from December 31, 2014 to September 30, 2015 primarily due to the settlement of an accrued bonus in the three-month period ended June 30, 2015. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Other tax liabilities $ 739 $ 694 Other 133 151 Total $ 872 $ 845 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of all current and expired plans as of September 30, 2015 and changes during the period then ended are presented in the following table: Options Weighted Average Remaining Contractual Aggregate Number of Weighted Average Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (14,431) 5.98 Outstanding as of September 30, 2015 770,601 8.06 4.61 43 Exercisable as of September 30, 2015 736,851 $ 8.12 4.47 $ 43 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted Stock Weighted Average Weighted Average Remaining Fair Value at Contractual Life Number of shares Grant Date (in years) Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Granted Vested (3,750) Unvested balance as of September 30, 2015 3,750 $ 4.84 0.66 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the nine-month periods ended September 30, 2015 and 2014. Nine-Month Period Ended September 30, 2015 2014 Range of values Low High Low High Expected volatility 71.85 % 80.91 % 73.03 % 76.27 % Expected dividends Expected term (in years) 4.78 8.11 3.73 9.11 Risk free rate 1.13 % 2.02 % 1.16 % 2.52 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule Of Transactions With Related Parties [Table Text Block] | Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Related party transactions provided to: Melco Crown (Macau) Limited Sales of gaming products $ 9 $ $ 358 $ 135 MCE Leisure (Philippines) Corporation Sales of gaming products $ 129 $ 63 $ 4,460 $ 161 Melco Crown Entertainment Limited Sales of gaming products $ $ 115 $ 212 $ 115 Oriental Regent Limited Sales of gaming products $ 786 $ $ 1,286 $ Studio City International Holding Limited Sales of gaming products $ 2,186 $ $ 2,186 $ Related party transactions provided by: Melco Services Limited Technical services $ $ 1 $ 1 $ 2 Other 2 1 7 2 Aberdeen Restaurant Enterprises Limited Other $ 4 $ $ 5 $ Golden Future (Management Services) Limited Management services $ 63 $ 60 $ 210 $ 209 |
Affiliated Entity [Member] | |
Schedule Of Transactions With Related Parties [Table Text Block] | Amounts due from/to related parties consisted of the following: (amounts in thousands) September 30, 2015 December 31, 2014 (Unaudited) Amounts due from related parties $ 2,437 $ 2,112 Amounts due to related parties $ 47 $ 47 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | The following table details selected financial information for the discontinued operations in the consolidated statements of comprehensive income/loss. Three-Month Period Ended September 30, Nine-Month Period Ended September 30, (amounts in thousands) 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Loss from operations $ $ $ $ (421) Foreign currency exchange gain 7 Loss from discontinued operations, net of tax $ $ $ $ (414) |
Earnings_(Loss) Per Share (Tabl
Earnings/(Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of the basic and diluted earnings/(loss) per share from continuing operations consisted of the following: Three-Month Period Ended September 30, 2015 2014 (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 1,446 14,460 $ 0.10 $ (261) 7,506 $ (0.04) Effect of dilutive securities Dilutive stock options/restricted shares (1) 17 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 1,446 14,477 $ 0.10 $ (261) 7,506 $ (0.04) Nine-Month Period Ended September 30, 2015 2014 (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 3,478 14,456 $ 0.24 $ (899) 7,502 $ (0.12) Effect of dilutive securities Dilutive stock options/restricted shares (1) 27 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 3,478 14,483 $ 0.24 $ (899) 7,502 $ (0.12) (1) There was 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 for the three-month and nine-month period ended September 30, 2014. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three-Month Period Nine-Month Period Ended September 30, Ended September 30, 2015 2014 2015 2014 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Anti-dilutive outstanding stock options excluded from computation of diluted earnings per share 753,874 808,872 744,381 755,747 |
Retirement Plan (Tables)
Retirement Plan (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of accrued retirement benefits consisted of the following: (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 29 $ 21 Service cost 7 Interest cost 1 Actuarial loss and other (1) Balance as of September 30/December 31 $ 28 $ 29 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of the Company’s asset retirement obligations are as follows: (amounts in thousands) 2015 2014 (Unaudited) Balance as of January 1 $ 92 $ Additions 92 Balance as of September 30/December 31 $ 92 $ 92 |
Accumulated Other Comprehensi44
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 as of January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive (loss)/income (12) 23 11 Balances as of December 31, 2014 87 666 753 Current period other comprehensive loss (79) (79) Balances as of September 30, 2015 (Unaudited) $ 87 $ 587 $ 674 |
Description of Business and S45
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Australian dollar [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 1.43 | 1.43 | 1.23 | ||
Average Foreign Currency Exchange Rate Translation | 1.38 | 1.08 | 1.31 | 1.09 | |
Hong Kong Dollar [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 7.75 | 7.75 | 7.76 | ||
Average Foreign Currency Exchange Rate Translation | 7.75 | 7.75 | 7.75 | 7.75 | |
Philippine Peso [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 46.87 | 46.87 | 44.84 | ||
Average Foreign Currency Exchange Rate Translation | 46.06 | 43.89 | 45.06 | 44.33 | |
Thai baht [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 36.44 | 36.44 | 32.97 | ||
Average Foreign Currency Exchange Rate Translation | 35.20 | 32.17 | 33.71 | 32.46 |
Description of Business and S46
Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 20, 2014 | |
Accounting Polices [Line Items] | ||||||
Excess Cash Limits, FDIC Insured Amount | $ 25,100,000 | $ 25,100,000 | ||||
Casino contract amortization | 608,000 | $ 613,000 | 1,830,000 | $ 1,835,000 | ||
Commitment | 45,000 | 45,000 | $ 126,000 | |||
Stock-based compensation expenses | 17,000 | 19,000 | 67,000 | 160,000 | ||
Product development expenses | 46,000 | 156,000 | $ 115,000 | 311,000 | ||
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | |||||
Gaming property and equipment depreciation | 586,000 | 739,000 | $ 1,900,000 | 2,200,000 | ||
Amortization | 684,000 | 689,000 | $ 2,100,000 | 2,100,000 | ||
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. | |||||
Asset Retirement Obligation, Cash Paid to Settle | 4,000 | 0 | $ 13,000 | 0 | ||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | 0 | 0 | ||
Unbilled Other Sales Revenue Net | 2,100,000 | 0 | 2,100,000 | 0 | ||
Gaming Products [Member] | ||||||
Accounting Polices [Line Items] | ||||||
Cost of Goods Sold, Depreciation | 282,000 | 224,000 | 819,000 | 545,000 | ||
Gaming Operation [Member] | ||||||
Accounting Polices [Line Items] | ||||||
Cost of Goods Sold, Depreciation | 165,000 | 153,000 | 487,000 | 450,000 | ||
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 | 6,000 | 6,000 | 18,000 | 18,000 | ||
Technical Know How [Member] | ||||||
Accounting Polices [Line Items] | ||||||
Amortization | 7,000 | 7,000 | 20,000 | 20,000 | ||
Other Gaming Related Intangible Assets [Member] | ||||||
Accounting Polices [Line Items] | ||||||
Amortization | $ 63,000 | $ 63,000 | $ 189,000 | $ 189,000 |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8,271 | $ 4,402 | $ 24,190 | $ 14,039 |
Operating income/(loss) | 1,719 | (197) | 3,820 | (816) |
Depreciation and amortization | 1,764 | 1,858 | 5,369 | 5,428 |
Gaming operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 4,483 | 3,965 | 13,407 | 12,267 |
Operating income/(loss) | 2,134 | 1,535 | 6,342 | 4,968 |
Depreciation and amortization | 1,431 | 1,581 | 4,401 | 4,748 |
Gaming products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,788 | 437 | 10,783 | 1,772 |
Operating income/(loss) | 916 | (290) | 1,850 | (1,524) |
Depreciation and amortization | 309 | 257 | 897 | 642 |
Corporate and Other Operating Costs and Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) | (1,331) | (1,442) | (4,372) | (4,260) |
Depreciation and amortization | $ 24 | $ 20 | $ 71 | $ 38 |
Segments (Details 1)
Segments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 8,271 | $ 4,402 | $ 24,190 | $ 14,039 |
Cambodia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3,871 | 3,201 | 11,442 | 10,096 |
Macau [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,206 | 134 | 2,773 | 630 |
Philippines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,364 | 879 | 7,572 | 2,743 |
Australia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 41 | 182 | 1,108 | 498 |
Others [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 3 | 6 | 9 | 72 |
Russia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 786 | $ 0 | $ 1,286 | $ 0 |
Segments (Details Textual)
Segments (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | |
Cambodian Provinces Of Pailin [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||
Gaming Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 58.00% | 42.00% | 41.00% | 19.00% | |
Gaming Operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Concentration Risk, Percentage | 75.00% | 71.00% | 75.00% | 69.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Raw materials | $ 1,811 | $ 1,866 | |
Work-in-process | 662 | 600 | |
Finished goods | [1] | 439 | 0 |
Spare parts | 107 | 151 | |
Total | $ 3,019 | $ 2,617 | |
[1] | Finished goods increased from December 31, 2014 to September 30, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the fourth quarter of 2015. |
Prepaid Expenses and Other Cu51
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | $ 339 | $ 1,447 | |
Prepayments to suppliers [Member] | |||
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | [1] | 326 | 1,434 |
Prepaid leases [Member] | |||
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | $ 13 | $ 13 | |
[1] | Prepayments to suppliers decreased from December 31, 2014 to September 30, 2015 due to fewer new purchases which required deposit payments in the nine-month period ended September 30, 2015. |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Receivables [Line Items] | |||
Trade receivables | [1] | $ 585 | $ 830 |
Other receivables | 235 | 316 | |
Accounts Receivable, Gross, Current | 820 | 1,146 | |
Less: allowance for doubtful accounts | 0 | 0 | |
Net | $ 820 | $ 1,146 | |
[1] | Trade receivables decreased from December 31, 2014 to September 30, 2015 due to higher collection of receivables in the nine-month period ended September 30, 2015. |
Gaming Equipment (Details)
Gaming Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $ 19,463 | $ 19,347 |
Less: accumulated depreciation | (15,205) | (13,723) |
Net carrying value | 4,258 | 5,624 |
EGMs [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $ 17,902 | 17,844 |
EGMs [Member] | Minimum [Member] | ||
Gaming equipment [Line Items] | ||
Tangible Asset, Useful Life | 3 years | |
EGMs [Member] | Maximum [Member] | ||
Gaming equipment [Line Items] | ||
Tangible Asset, Useful Life | 5 years | |
Systems [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $ 1,561 | $ 1,503 |
Tangible Asset, Useful Life | 5 years |
Gaming Equipment (Details Textu
Gaming Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gaming Equipment [Line Items] | ||||
Cost Of Services Electronic Gaming Machine Depreciation and Amortization | $ 586,000 | $ 739,000 | $ 1,900,000 | $ 2,200,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Equipment, vehicles, furniture and fixtures | $ 7,252 | $ 6,697 |
Land and buildings | 2,928 | 2,928 |
Leasehold improvements | 1,606 | 1,421 |
Construction in progress | 634 | 634 |
Property, Plant and Equipment, Gross | 12,420 | 11,680 |
Less: accumulated depreciation | (4,113) | (2,785) |
Net carrying value | $ 8,307 | $ 8,895 |
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 buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 0 years | |
Land and buildings [Member] | Maximum [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 (Detai56
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gaming Products [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost of Goods Sold, Depreciation | $ 282,000 | $ 224,000 | $ 819,000 | $ 545,000 |
Gaming Operation [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost of Goods Sold, Depreciation | $ 165,000 | $ 153,000 | $ 487,000 | $ 450,000 |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets, including Casino Contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Net carrying value | $ 1,828 | $ 3,928 |
Gaming operation agreement [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 1,166 | 1,175 |
Less: accumulated amortization | (1,008) | (818) |
Net carrying value | $ 158 | 357 |
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 | $ 334 | 351 |
Patents [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 114 | 114 |
Less: accumulated amortization | (98) | (83) |
Net carrying value | $ 16 | 31 |
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 | (15) | (12) |
Net carrying value | $ 11 | 14 |
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 | (87) | (68) |
Net carrying value | $ 174 | 193 |
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 | $ 12,647 | 12,754 |
Less: accumulated amortization | (11,512) | (9,772) |
Net carrying value | $ 1,135 | $ 2,982 |
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 Asset58
Goodwill and Intangible Assets, including Casino Contracts (Details 1) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance at the beginning | $ 351 | $ 353 |
Foreign currency translation adjustment | (17) | (2) |
Balance at the ending | $ 334 | $ 351 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 684,000 | $ 689,000 | $ 2,100,000 | $ 2,100,000 |
Prepaids, Deposits and Other 60
Prepaids, Deposits and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 1,071 | $ 1,316 | |
Prepaid taxes [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 380 | 323 | |
Prepaid leases [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [1] | 204 | 211 |
Prepayments to suppliers [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 162 | 454 | |
Rentals, utilities and other deposits [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 325 | $ 328 | |
[1] | The prepaid lease consisted of land lease prepayments for a gaming development project located in Cambodia. |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Accrued Expenses [Line Items] | |||
Payroll and related costs | [1] | $ 254 | $ 723 |
Professional fees | 329 | 350 | |
Withholding taxes | 550 | 583 | |
Other tax expenses | 44 | 44 | |
Other | 305 | 309 | |
Total | $ 1,482 | $ 2,009 | |
[1] | Payroll and related costs decreased from December 31, 2014 to September 30, 2015 primarily due to the settlement of an accrued bonus in the three-month period ended June 30, 2015. |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities [Line Items] | ||
Other tax liabilities | $ 739 | $ 694 |
Other | 133 | 151 |
Total | $ 872 | $ 845 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Line Items] | ||
Outstanding, Number of Options, Opening Balance | 785,032 | |
Granted, Number of Options | 0 | |
Exercised, Number of Options | 0 | |
Forfeited or expired, Number of Options | (14,431) | |
Outstanding, Number of Options, Ending Balance | 770,601 | 785,032 |
Exercisable, Number of Options | 736,851 | |
Outstanding, Weighted Average Exercise Price, Opening Balance (in dollars per share) | $ 8.02 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 5.98 | |
Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 8.06 | $ 8.02 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.12 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 4 years 7 months 10 days | 5 years 5 months 1 day |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 5 months 19 days | |
Outstanding, Aggregate Intrinsic Value, Opening Balance | $ 46 | |
Granted, Aggregate Intrinsic Value | 0 | |
Exercised, Aggregate Intrinsic Value | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 43 | $ 46 |
Exercisable, Aggregate Intrinsic Value | $ 43 |
Stock-Based Compensation (Det64
Stock-Based Compensation (Details 1) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Line Items] | ||
Unvested Balance, Number of Shares, Opening Balance | 7,500 | |
Granted, Number of Shares | 0 | |
Vested, Number of Shares | (3,750) | |
Unvested Balance, Number of Shares, Ending Balance | 3,750 | 7,500 |
Unvested Balance, Weighted Average Fair Value at Grant Date,Opening Balance | $ 4.84 | |
Granted, Weighted Average Fair Value at Grant Date | 0 | |
Vested, Weighted Average Fair Value at Grant Date | 0 | |
Unvested Balance, Weighted Average Fair Value at Grant Date, Ending Balance | $ 4.84 | $ 4.84 |
Unvested balance, Weighted Average Remaining Contractual Life (in years) | 7 months 28 days | 1 year 4 months 28 days |
Stock-Based Compensation (Det65
Stock-Based Compensation (Details 2) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Based Compensation [Line Items] | ||
Expected volatility - Low | 71.85% | 73.03% |
Expected volatility - High | 80.91% | 76.27% |
Expected dividends - Low | 0.00% | 0.00% |
Expected dividends - High | 0.00% | 0.00% |
Risk free rate - Low | 1.13% | 1.16% |
Risk free rate - High | 2.02% | 2.52% |
Minimum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 4 years 9 months 11 days | 3 years 8 months 23 days |
Maximum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 8 years 1 month 10 days | 9 years 1 month 10 days |
Stock-Based Compensation (Det66
Stock-Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |||||
Feb. 26, 2015 | Jul. 31, 2010 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 12, 2014 | Jul. 13, 2012 | Jan. 01, 2009 | |
Stock Based Compensation [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,250,000 | ||||||
Stockholders' Equity, Reverse Stock Split | 1-for-4 | ||||||
Employee Stock Option [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Outstanding, Number of Shares, Options | 770,601 | 785,032 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $ 3.35 | ||||||
Exercisable, Aggregate Intrinsic Value, Options | $ 43,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 40,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | $ 23,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 8 months 23 days | ||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 8.12 | ||||||
Exercisable, Number Of Shares | 736,851 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 33,750 | ||||||
Stock Option Plan 2008 [Member] | |||||||
Stock Based Compensation [Line Items] | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 625,000 | 312,500 | 937,500 | ||||
Outstanding, Number of Shares, Options | 536,848 | ||||||
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 | 229,377 | ||||||
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 | 4,376 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 18,750 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Related party transactions provided to: | ||||
Sales of gaming products | $ 8,271 | $ 4,402 | $ 24,190 | $ 14,039 |
Melco Crown (Macau) Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 9 | 0 | 358 | 135 |
MCE Leisure (Philippines) Corporation [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 129 | 63 | 4,460 | 161 |
Melco Crown Entertainment Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 115 | 212 | 115 |
Oriental Regent Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 786 | 0 | 1,286 | 0 |
Studio City International Holding Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 2,186 | 0 | 2,186 | 0 |
Melco Services Limited [Member] | ||||
Related party transactions provided by: | ||||
Technical services | 0 | 1 | 1 | 2 |
Other | 2 | 1 | 7 | 2 |
Aberdeen Restaurant Enterprises Limited [Member] | ||||
Related party transactions provided by: | ||||
Other | 4 | 0 | 5 | 0 |
Golden Future (Management Services) Ltd [Member] | ||||
Related party transactions provided by: | ||||
Management services | $ 63 | $ 60 | $ 210 | $ 209 |
Related Party Transactions (D68
Related Party Transactions (Details 1) - Affiliated Entity [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amounts due from related parties | $ 2,437 | $ 2,112 |
Amounts due to related parties | $ 47 | $ 47 |
Related Party Transactions (D69
Related Party Transactions (Details Textual) | Sep. 30, 2015 |
Melco Services Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 64.80% |
Melco Crown (Macau) Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 90.00% |
Melco Crown Entertainment Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 34.30% |
MCE Leisure (Philippines) Corporation [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 68.30% |
Studio City International Holding Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 60.00% |
Aberdeen Restaurant Enterprises Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 86.70% |
Oriental Regent Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income tax expenses | ||||
Income Tax Expenses | $ 129 | $ 15 | $ 166 | $ 45 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 8.20% | (6.00%) | 4.60% | (5.20%) |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (414) |
Dreamworld Casino (Pailin) Limited [Member] | ||||
Discontinued Operations [Line Items] | ||||
Loss from operations | 0 | 0 | 0 | (421) |
Foreign currency exchange gain | 0 | 0 | 0 | 7 |
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (414) |
Discontinued Operations (Deta72
Discontinued Operations (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | 26 Months Ended | ||||
Jun. 30, 2014 | Sep. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 31, 2014 | Jun. 20, 2014 | |
Discontinued Operations [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 363,000 | ||||||
Disposal Group Including Discontinued Operation Remaining Consideration Total Installments | 16 | ||||||
Gain (Loss) on Disposition of Business | $ 90,000 | ||||||
Dreamworld Casino (Pailin) Limited [Member] | |||||||
Discontinued Operations [Line Items] | |||||||
Profit Sharing Percentage | 20.00% | ||||||
Lease Initial Expiration Term | 20 years | ||||||
Operating Leases, Rent Expense | $ 5,000 | ||||||
Dreamworld Leisure (Pailin) Limited [Member] | |||||||
Discontinued Operations [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 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 | $ 500,000 | ||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 2,500,000 |
Earnings_(Loss) Per Share (Deta
Earnings/(Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Basic | |||||
Net income/(loss) attributable to equity shareholders | $ 1,446 | $ (261) | $ 3,478 | $ (899) | |
Net income/(loss) attributable to equity shareholders - Number of Shares | 14,460 | 7,506 | 14,456 | 7,502 | |
Net income/(loss) attributable to equity shareholders, Per share Amount (in dollars per share) | $ 0.10 | $ (0.04) | $ 0.24 | $ (0.12) | |
Effect of dilutive securities | |||||
Dilutive stock options/restricted shares | [1] | 17 | 0 | 27 | 0 |
Diluted | |||||
Net income/(loss) attributable to equity shareholders plus assumed conversion | $ 1,446 | $ (261) | $ 3,478 | $ (899) | |
Net income/(loss) attributable to equity shareholders plus assumed conversion - Number of shares | 14,477 | 7,506 | 14,483 | 7,502 | |
Net income/(loss) attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | $ 0.10 | $ (0.04) | $ 0.24 | $ (0.12) | |
[1] | There was 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 for the three-month and nine-month period ended September 30, 2014. |
Earnings_(Loss) Per Share (De74
Earnings/(Loss) Per Share (Details 1) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive outstanding stock options excluded from computation of diluted earnings per share | 753,874 | 808,872 | 744,381 | 755,747 |
Earnings_(Loss) Per Share (De75
Earnings/(Loss) Per Share (Details Textual) | 1 Months Ended |
Feb. 26, 2015 | |
Earnings Loss Per Share [Line Items] | |
Stockholders' Equity, Reverse Stock Split | 1-for-4 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Balance at the beginning | $ 29 | $ 21 |
Service cost | 0 | 7 |
Interest cost | 0 | 1 |
Actuarial loss and other | (1) | 0 |
Balance at the ending | $ 28 | $ 29 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Balance at the beginning | $ 92 | $ 0 |
Additions | 0 | 92 |
Balance at the ending | $ 92 | $ 92 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Defined Benefit Pension Plan, Beginning Balance | $ 87 | $ 99 |
Defined Benefit Pension Plan, Current period other comprehensive income/(loss) | 0 | (12) |
Defined Benefit Pension Plan, Ending Balance | 87 | 87 |
Foreign Currency Translation, Beginning Balance | 666 | 643 |
Foreign Currency Translation, Current period other comprehensive income/(loss) | (79) | 23 |
Foreign Currency Translation, Ending Balance | 587 | 666 |
Accumulated Other Comprehensive Income, Beginning Balance | 753 | 742 |
Accumulated Other Comprehensive Income, Current period other comprehensive income/(loss) | (79) | 11 |
Accumulated Other Comprehensive Income, Ending Balance | $ 674 | $ 753 |