Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 15, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Entertainment Gaming Asia Inc. | ||
Entity Central Index Key | 1,004,673 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 10,017,835 | ||
Trading Symbol | EGT | ||
Entity Common Stock, Shares Outstanding | 14,464,220 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 30,681 | $ 17,301 |
Accounts receivable, net | 724 | 830 |
Amounts due from related parties | 257 | 2,112 |
Other receivables | 78 | 316 |
Inventories | 2,378 | 2,617 |
Prepaid expenses and other current assets | 295 | 1,447 |
Contract amendment fees | 18 | 0 |
Total current assets | 34,431 | 24,623 |
Gaming equipment, net | 2,985 | 5,624 |
Casino contracts | 528 | 2,982 |
Property and equipment, net | 5,919 | 8,895 |
Goodwill | 332 | 351 |
Intangible assets, net | 391 | 595 |
Contract amendment fees | 0 | 126 |
Deferred tax assets | 274 | 142 |
Prepaids, deposits and other assets | 425 | 1,316 |
Total assets | 45,285 | 44,654 |
Current liabilities: | ||
Accounts payable | 288 | 645 |
Amount due to related parties | 239 | 47 |
Accrued expenses | 1,755 | 2,009 |
Income tax payable | 2 | 0 |
Deferred revenue | 9 | 0 |
Customer deposits and other current liabilities | 529 | 306 |
Total current liabilities | 2,822 | 3,007 |
Other liabilities | 880 | 845 |
Deferred tax liability | 29 | 107 |
Total liabilities | $ 3,731 | $ 3,959 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $.001 par value, 38,000,000 (2014: 18,750,000) shares authorized; 14,464,220 (2014: 14,471,095) shares issued and outstanding | $ 14 | $ 14 |
Additional paid-in-capital | 47,763 | 47,680 |
Accumulated other comprehensive income | 709 | 753 |
Accumulated losses since January 1, 2011 ($386.1 million accumulated deficit eliminated) | (6,933) | (7,753) |
Total EGT stockholders' equity | 41,553 | 40,694 |
Non-controlling interest | 1 | 1 |
Total stockholder's equity | 41,554 | 40,695 |
Total liabilities and stockholders' equity | $ 45,285 | $ 44,654 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 38,000,000 | 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 | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | ||
Gaming operations | $ 18,127 | $ 16,364 |
Gaming products | 13,382 | 5,998 |
Total revenues | 31,509 | 22,362 |
Cost of gaming operations | ||
Gaming property and equipment depreciation | 3,073 | 3,538 |
Casino contract amortization | 2,436 | 2,445 |
Other gaming related intangibles amortization | 252 | 252 |
Other operating costs | 3,733 | 3,543 |
Cost of gaming products | 11,252 | 7,781 |
Selling, general and administrative expenses | 5,955 | 6,528 |
Loss on disposition of assets | 382 | 55 |
Impairment of assets | 2,563 | 121 |
Research and development expenses | 421 | 387 |
Depreciation and amortization | 212 | 219 |
Total operating costs and expenses | 30,279 | 24,869 |
Income/(loss) from operations | 1,230 | (2,507) |
Other (expenses)/income: | ||
Interest expense and finance fees | (3) | (4) |
Interest income | 13 | 2 |
Foreign currency losses | (241) | (60) |
Other | 38 | 22 |
Total other expenses | (193) | (40) |
Income/(loss) from continuing operations before income tax | 1,037 | (2,547) |
Income tax (expense)/benefit | (217) | 41 |
Net income/(loss) from continuing operations | 820 | (2,506) |
Net loss from discontinued operations, net of tax | 0 | (325) |
Net income/(loss) attributable to EGT stockholders | 820 | (2,831) |
Other comprehensive income/(loss): | ||
Defined benefit pension plan | 3 | (12) |
Foreign currency translation | (47) | 23 |
Total other comprehensive (loss)/income, net of tax | (44) | 11 |
Comprehensive income/(loss) attributable to EGT stockholders | $ 776 | $ (2,820) |
Per share data (basic and diluted) | ||
Earnings/(loss) (in dollars per share) | $ 0.06 | $ (0.35) |
Earnings/(loss) from continuing operations (in dollars per share) | 0.06 | (0.31) |
Earnings/(loss) from discontinued operations, net of tax (in dollars per share) | $ 0 | $ (0.04) |
Weighted average common shares outstanding | ||
Basic (in shares) | 14,457 | 8,188 |
Diluted (in shares) | 14,485 | 8,188 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated losses) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] |
Balances at Dec. 31, 2013 | $ 29,007 | $ 7 | $ 33,179 | $ (4,922) | $ 742 | $ 1 |
Balances (in shares) at Dec. 31, 2013 | 7,507,302 | |||||
Net Income / loss | (2,831) | (2,831) | ||||
Other comprehensive income / loss | 11 | 11 | ||||
Issuance of restricted stock | 0 | $ 0 | 0 | |||
Issuance of restricted stock (in shares) | 19,375 | |||||
Stock-based compensation | 160 | 160 | ||||
Right Offering | 14,348 | $ 7 | 14,341 | |||
Right Offering (in shares) | 6,944,418 | |||||
Balances at Dec. 31, 2014 | 40,695 | $ 14 | 47,680 | (7,753) | 753 | 1 |
Balances (in shares) at Dec. 31, 2014 | 14,471,095 | |||||
Net Income / loss | 820 | 820 | ||||
Other comprehensive income / loss | (44) | (44) | ||||
Retirement of unvested restricted stock | 0 | $ 0 | 0 | |||
Retirement of unvested restricted stock (in shares) | (6,875) | |||||
Stock-based compensation | 83 | 83 | ||||
Balances at Dec. 31, 2015 | $ 41,554 | $ 14 | $ 47,763 | $ (6,933) | $ 709 | $ 1 |
Balances (in shares) at Dec. 31, 2015 | 14,464,220 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows provided by operating activities: | ||
Net income/(loss) | $ 820 | $ (2,831) |
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | ||
Depreciation of gaming equipment and property and equipment | 4,363 | 4,622 |
Foreign currency losses | 3 | 4 |
Impairment of assets | 2,563 | 121 |
Amortization of casino contracts | 2,436 | 2,445 |
Loss on disposition of assets | 382 | 55 |
Amortization of intangible assets | 302 | 302 |
Deferred income tax | (145) | (234) |
Amortization of contract amendment fees | 108 | 108 |
Stock-based compensation expense | 83 | 160 |
Provision for pension/retirement benefits | (5) | (4) |
Write-off of tax receivables | 32 | 579 |
Gain on disposition of subsidiary, including property and equipment | 0 | (64) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 116 | 167 |
Inventories | 235 | (956) |
Prepaid expenses and other current assets | 1,153 | (930) |
Prepaids, deposits and other assets | 501 | (62) |
Accounts payable | (292) | (241) |
Amounts due from/to related parties | 2,049 | (1,977) |
Accrued expenses and other liabilities | (283) | (324) |
Customer deposits and other current liabilities | 222 | (51) |
Income tax payable | 2 | 0 |
Deferred revenue | 9 | 0 |
Net cash provided by operating activities | 14,654 | 889 |
Cash flows used in investing activities: | ||
Construction/purchase of property and equipment | (983) | (2,956) |
Purchases of gaming machines and systems | (563) | (515) |
Proceeds from sale of gaming equipment and property and equipment | 63 | 80 |
Proceeds from sale of subsidiary related to discontinued operations | 200 | 168 |
Development/purchase of intangibles | (107) | 0 |
Net cash used in investing activities | (1,390) | (3,223) |
Cash flows provided by financing activities: | ||
Rights offering | 0 | 14,348 |
Net cash provided by financing activities | 0 | 14,348 |
Effect of exchange rate changes on cash | 116 | (14) |
Increase in cash and cash equivalents | 13,380 | 12,000 |
Cash and cash equivalents at beginning of year | 17,301 | 5,301 |
Cash and cash equivalents at end of year | $ 30,681 | $ 17,301 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | The business activities of the Company entail: (i) the owning and leasing of electronic gaming machines (EGMs) placed in resorts, hotels and other venues in Cambodia and the Philippines on a fixed lease or revenue sharing basis with venue owners; (ii) the design, manufacture and distribution of gaming chips and plaques under our Dolphin brand and distribution of third-party gaming products to major casinos in Southeast Asia and Australia; and (iii) the early-stage development of a social casino gaming platform designed for the Pan-Asian market. 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. 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. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. 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 years 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 December 31, 2015, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 30.4 Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationships and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. Inventories included a lower of cost or market (LCM) write-down of approximately NIL and $ 87,000 The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360, Property, Plant and Equipment 2.6 121,000 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 gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 2.4 2.9 Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to ten years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 652,000 608,000 Depreciation of property and equipment of approximately $ 1.1 810,000 Intangible assets consist of patents, trademarks, technical know-how, a gaming operations agreement, casino contracts, capitalized software costs 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 capitalized software costs 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. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria met for capitalization are expensed to research and development expenses as incurred. Management has committed the resources of developing social gaming application, and it is probable that the social gaming application will be completed and the software will be used as intended. Such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts were approximately $ 2.4 252,000 26,000 24,000 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 judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the years ended December 31, 2015 and 2014. For the year ended December 31, 2014, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation and the net cash proceeds received from the Company’s subscription rights offering. 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 17. 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 slot operations, the Company earns recurring gaming revenue by providing customers with EGMs and casino management systems which track game performance and provide statistics on installed EGMs owned by the Company and leased to venue owners. Revenues are recognized on the contractual terms of the slot agreements between the Company and the venue owners and are based on the Company’s share of net winnings and reimbursement of expenses, net of customer incentives and commitment fees. Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when the payment for net winnings is received. All slot operations revenues were recognized as earned during the years ended December 31, 2015 and 2014. 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 $ 18,000 126,000 For the discontinued casino operations, the Company’s revenues are measured by the aggregate net difference between gaming wins and losses, with liabilities recognized for funds deposited by customers before gaming play occurs and for chips in their possession, if any. Cash discounts, other cash incentives related to casino play and commissions rebated through junkets or tour guides, if any, to customers are recorded as a reduction to casino revenue. Consequently, the Company’s casino revenues are reduced by discounts and commissions. 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. The Company does not accrue jackpot liabilities for its EGM base and progressive jackpots as regulations do not prohibit removal of gaming machines from the gaming floor without payment of the jackpots. The Company also earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within its casino property. Revenues from gaming table leasing arrangements were recognized as earned over the contractual terms of the arrangement between the Company and the gaming promoters and are included in discontinued operations. Gaming Products Sales The Company recognizes revenue from the sale of its gaming products and accessories to end users upon shipment against customer contracts or purchase orders. In accordance with the criteria of ASC 605-45, Reporting Revenue Gross as a Principal versus Net as an Agent, Revenue Recognition The Company also recognizes revenue from the sale of its gaming products and accessories 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. Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation 83,000 160,000 The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions, which were expensed as incurred, were approximately $ 172,000 162,000 Research and development expenses are expensed as incurred. Employee-related costs associated with research and development and certain costs associated with the development of the social casino platform are included in research and development expenses. Research and development expenses were approximately $ 421,000 387,000 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 December 31, 2015 or 2014. 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 year. 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 exceeding the Company’s stock price as of December 31, 2015. There were no differences in diluted loss per share from basic loss per share for the year ended December 31, 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) December 31, 2015 December 31, 2014 Australian dollar 1.37 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 47.17 44.84 Thai baht 36.07 32.97 Year Ended December 31, (US$1 to foreign currency) 2015 2014 Australian dollar 1.33 1.11 Hong Kong dollar 7.75 7.75 Philippine peso 45.50 44.47 Thai baht 34.25 32.54 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 December 31, 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. The company recorded an increase of approximately $ 3,000 12,000 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 years ended December 31, 2015 and 2014, the Company recognized approximately $ 7,000 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 our 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. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, which amends existing guidance on the presentation of deferred income tax assets and liabilities. The amendments in the ASU require that all deferred tax liabilities and assets be classified as noncurrent on the balance sheet. This ASU will be effective for the Company on January 1, 2017, with earlier adoption permitted. We are currently evaluating its effect on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which intends to improve the recognition and measurement of financial instruments. The ASU will be effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the potential impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842): Accounting for Leases”, which changes the accounting for leases, including a requirement to record all leases on the balance sheet as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of adopting the new leases standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations”, which intends to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09, “Revenue from Contracts with Customers”. We are currently assessing the potential impact of this ASU on our consolidated financial statements. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 2. Segments The Company conducts business under two operating segments: (i) gaming operations, which include leasing of its owned EGMs on a fixed or revenue-sharing basis; 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 product. The Company previously 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 Years Ended December 31, (amounts in thousands) 2015 2014 Revenues: Gaming operations $ 18,127 $ 16,364 Gaming products 13,382 5,998 Total revenues $ 31,509 $ 22,362 Operating income/(loss): Gaming operations operating income $ 6,114 $ 6,621 Gaming products operating income/(loss) 1,554 (2,381) Corporate and other operating costs and expenses (6,438) (6,747) Total operating income/(loss) $ 1,230 $ (2,507) December 31, (amounts in thousands) 2015 2014 Identifiable assets: Gaming operations $ 22,763 $ 19,184 Gaming products 13,403 12,912 Corporate 9,119 12,558 Total identifiable assets $ 45,285 $ 44,654 December 31, (amounts in thousands) 2015 2014 Goodwill: Gaming operations $ 332 $ 351 Years Ended December 31, (amounts in thousands) 2015 2014 Capital expenditures: Gaming operations $ 740 $ 587 Gaming products 760 2,796 Corporate 153 88 Total capital expenditures $ 1,653 $ 3,471 Depreciation and amortization: Gaming operations $ 5,799 $ 6,293 Gaming products 1,206 935 Corporate 95 61 Total depreciation and amortization $ 7,100 $ 7,289 Impairment of assets: Gaming operations $ 2,563 $ 15 Gaming products 106 Total impairment of assets $ 2,563 $ 121 Interest expenses and finance fees: Corporate $ 3 $ 4 Income tax expense/(benefit): Gaming operations (1) $ 236 $ Corporate (19) (41) Total income tax expense/(benefit) $ 217 $ (41) (1) The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $ 137,000 122,000 Years Ended December 31, (amounts in thousands) 2015 2014 Cambodia $ 15,486 $ 13,530 Philippines 9,978 7,467 Macau 2,982 761 Australia 1,568 532 Russia 1,485 Others 10 72 Total $ 31,509 $ 22,362 For the year ended December 31, 2015, the largest customer in the gaming operations segment represented 75 37 70 59 December 31, (amounts in thousands) 2015 2014 Cambodia $ 3,517 $ 10,219 Hong Kong 5,278 6,449 Philippines 1,295 1,664 United States 65 115 Total $ 10,155 $ 18,447 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories December 31, (amounts in thousands) 2015 2014 Raw materials $ 1,742 $ 1,866 Work-in-process (1) 80 600 Finished goods (2) 443 Spare parts 113 151 Total $ 2,378 $ 2,617 (1) Work-in-process decreased from December 31, 2014 to December 31, 2015 due to fewer gaming chip and plaque orders in process as of December 31, 2015. (2) Finished goods increased from December 31, 2014 to December 31, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2016. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | Note 4. Prepaid Expenses and Other Current Assets December 31, (amounts in thousands) 2015 2014 Prepayments to suppliers (1) $ 292 $ 1,434 Prepaid leases 3 13 Total $ 295 $ 1,447 (1) Prepayments to suppliers decreased from December 31, 2014 to December 31, 2015 due to higher deposit payments in the year ended December 31, 2014 related to the outsourcing of certain gaming products orders delivered in early 2015. |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. Receivables Accounts and other receivables consisted of the following: December 31, (amounts in thousands) 2015 2014 Trade receivables $ 724 $ 830 Other receivables 78 316 802 1,146 Less: allowance for doubtful accounts Net $ 802 $ 1,146 |
Gaming Equipment
Gaming Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Electronic Gaming Machines EGMs and Systems [Text Block] | Note 6. Gaming Equipment Useful Life December 31, (amounts in thousands) (years) 2015 2014 EGMs (1) 3-5 $ 16,215 $ 17,844 Systems 5 1,335 1,503 17,550 19,347 Less: accumulated depreciation (14,565) (13,723) Net carrying value $ 2,985 $ 5,624 (1) EGMs decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $ 700,000 Depreciation expense of gaming equipment of approximately $ 2.4 2.9 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | Note 7. Property and Equipment Useful Life December 31, (amounts in thousands) (years) 2015 2014 Equipment, vehicles, furniture and fixtures 3-10 $ 6,290 $ 6,697 Land and building (1) 5 1,506 2,928 Leasehold improvements 1-6 1,400 1,421 Construction in progress N/A 634 9,196 11,680 Less: accumulated depreciation (3,277) (2,785) Net carrying value $ 5,919 $ 8,895 (1) Land and building decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $ 600,000 Depreciation expense of property and equipment of approximately $ 652,000 608,000 Depreciation expense of property and equipment of approximately $ 1.1 810,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, including Casino Contracts | 12 Months Ended |
Dec. 31, 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 December 31, (amounts in thousands) (years) 2015 2014 Gaming operation agreement 4-5 $ 1,166 $ 1,175 Less: accumulated amortization (1,070) (818) 96 357 Goodwill N/A 332 351 Patents 5-6 114 114 Less: accumulated amortization (104) (83) 10 31 Trademarks 5-9 26 26 Less: accumulated amortization (15) (12) 11 14 Technical know-how 10 261 261 Less: accumulated amortization (94) (68) 167 193 Casino contracts 5-6 12,637 12,754 Less: accumulated amortization (12,109) (9,772) 528 2,982 Internaluse software 107 Net carrying value $ 1,251 $ 3,928 Amortization expenses for finite-lived intangible assets were approximately $ 2.7 (amounts in thousands) 2015 2014 Balance as of January 1 $ 351 $ 353 Foreign currency translation adjustment (19) (2) Balance as of December 31 $ 332 $ 351 (amounts in thousands) 2016 663 2017 29 2018 29 2019 28 2020 26 Thereafter 37 Total $ 812 |
Prepaids, Deposits and Other As
Prepaids, Deposits and Other Assets | 12 Months Ended |
Dec. 31, 2015 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Prepaid Deposits and Other Assets Noncurrent Disclosure [Text Block] | Note 9. Prepaids, Deposits and Other Assets December 31, (amounts in thousands) 2015 2014 Prepaid taxes (1) $ $ 323 Prepaid lease (2) 211 Prepayments to suppliers 34 454 Rental, utilities and other deposits 391 328 Total $ 425 $ 1,316 (1) Prepaid taxes as of December 31, 2014 were fully utilized in the year ended December 31, 2015 to offset the current income tax expense for the Philippines operations. (2) The prepaid lease as of December 31, 2014 consisted of land lease prepayments for a gaming development project located in Cambodia, which was written off as of December 31, 2015. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Disclosure [Text Block] | Note 10. Accrued Expenses Accrued expenses consisted of the following: December 31, (amounts in thousands) 2015 2014 Payroll and related costs $ 626 $ 723 Professional fees 339 350 Withholding tax expenses 549 583 Other tax expenses 44 44 Others 197 309 Total $ 1,755 $ 2,009 |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Note 11. Other Liabilities Other liabilities consisted of the following: December 31, (amounts in thousands) 2015 2014 Other tax liabilities $ 754 $ 819 Others 126 26 Total $ 880 $ 845 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-Based Compensation The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented below have been proportionally adjusted to reflect the impact of this reverse split. 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 is 1,250,000 100 110 In the year ended December 31, 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 December 31, 2015, stock options for the purchase of 226,252 4,376 As of December 31, 2015, stock options for the purchase of 536,848 As of December 31, 2015, stock options for the purchase of 734,976 7.95 3.35 34,000 45,000 0.74 Options Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2013 822,946 $ 8.45 5.99 $ 738 Granted 56,250 4.84 280 Exercised Forfeited or expired (94,164) 9.80 Outstanding as of December 31, 2014 785,032 8.02 5.42 46 Exercisable as of December 31, 2014 727,949 $ 8.14 5.27 $ 46 Weighted Average Remaining Average Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (17,556) 13.46 Outstanding as of December 31, 2015 767,476 7.90 4.28 34 Exercisable as of December 31, 2015 734,976 $ 7.95 4.14 $ 34 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life shares Grant Date (in years) Unvested balance as of December 31, 2013 $ Granted 23,750 4.84 Vested(1) (16,250) 4.84 Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life 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 December 31, 2015 3,750 $ 4.84 0.41 (1) Vested shares included 12,500 5,625 Recognition and Measurement The fair value of each stock-based award to employees and non-employee directors is estimated on the measurement date which generally is the grant date while awards to non-employees are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. The grant date for stock-based awards with subjective performance condition does not occur until the earlier of the vesting date or when the discretionary feature has lapsed. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends and it does not expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. Year Ended December 31, 2015 2014 Range of values: Low High Low High Expected volatility 71.85 % 80.91 % 73.03 % 79.31 % 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 . |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2015 | |
Long Lived Assets [Abstract] | |
Disclosure Of Long Lived Assets Disclosure [Text Block] | Note 13. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such instance, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the assets. For the year ended December 31, 2015, the Company recorded an impairment charge of approximately $ 2.6 For the year ended December 31, 2014, the Company recorded an impairment charge of approximately $ 121,000 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 14. Related Party Transactions Year ended December 31, (amounts in thousands) 2015 2014 Related party transaction provided to: Melco Crown (Macau) Limited Sales of gaming products $ 358 $ 138 MCE Leisure (Philippines) Corporation Sales of gaming products $ 4,945 $ 3,523 Melco Crown Entertainment Limited Sales of gaming products $ 212 $ 243 Oriental Regent Limited Sales of gaming products $ 1,485 $ Studio City International Holding Limited Sales of gaming products $ 2,280 $ Related party transactions provided by: Melco Services Limited Technical services $ 2 $ 2 Other (1) $ 224 $ 2 Aberdeen Restaurant Enterprises Limited other $ 5 $ Golden Future (Management Services) Limited Management services $ 281 $ 276 (1) The amount for the year ended December 31, 2015 represents fees paid to Melco Services Limited for the management services agreement, which was effective as of January 1, 2015, discussed in greater detail in Note 22. Melco Services Limited is a wholly-owned subsidiary of Melco International Development Limited, which owns 64.8 Melco International Development Limited owns 34.3 90 72.2 60 Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. Melco International Development Limited indirectly owns 86.8 5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 15. Income Taxes Years ended December 31, (amounts in thousands) 2015 2014 Federal deferred $ (59) $ (59) Foreign Current (376) (133) Deferred 218 233 Total tax (expense)/benefit $ (217) $ 41 Years Ended December 31, (amounts in thousands) 2015 2014 Federal tax expense at statutory rates $ (352) $ 866 Difference in jurisdictional tax rates 555 (223) Expense not deductible for tax (158) 32 Income not subject to tax 1,135 876 Adjustment of provision to tax return (659) (311) Change in valuation allowances (695) (1,138) Change in unrecognized tax benefits (94) (108) Other 51 47 Total tax (expense)/benefit $ (217) $ 41 Years Ended December 31, (amounts in thousands) 2015 2014 Domestic $ (3,671) $ (3,249) International 4,708 702 Income/(loss) from continuing operations before income tax $ 1,037 $ (2,547) International income from continuing operations increased 4.0 4.7 700,000 ) for the year ended December 31, 2014. The primary tax affected components of the Company’s deferred tax assets/(liabilities) consisted of the following: December 31, (amounts in thousands) 2015 2014 Deferred tax assets current Prepaid commission agreement $ 1,277 $ 1,277 Depreciation and impairment 2,214 2,753 Other 326 481 Less: Valuation allowances (3,817) (4,511) Deferred tax assets non current Net operating losses 63,427 61,938 Stock options 920 888 Less: Valuation allowances (64,073) (62,684) 274 142 Deferred tax liabilities non current Acquisition of intangibles (29) (107) Net deferred tax assets/(liabilities) $ 245 $ 35 Domestic operating loss carryforwards were approximately $ 182.3 179.1 $ 6.5 7.8 As of December 31, 2015, there were valuation allowances of approximately $ 61.3 6.6 million 60.5 Undistributed earnings of the Company’s foreign subsidiary amounted to approximately $ 26.3 3.7 A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following: (amounts in thousands) Balance at January 1, 2014 $ 4,021 Additions based on tax positions related to the current year 43 Reductions for tax positions of prior years (3) Balance at December 31, 2014 $ 4,061 Additions based on tax positions related to the current year 58 Reductions for tax positions of prior years (31) Balance at December 31, 2015 $ 4,088 The amount of uncertain tax benefits as of December 31, 2015 that would affect the effective income tax rate if recognized is approximately $ 270,000 The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of comprehensive income/loss. During the year ended December 31, 2015, the Company recorded interest and penalties of approximately $ 67,000 440,000 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 2015 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 2015 Cambodian income tax returns remain open to examination by the General Department of Taxation. The Company’s 2013 to 2015 Philippines income tax returns remain open to examination by the Philippines Bureau of Internal Revenue. The Company’s 2009 to 2015 Hong Kong income tax returns remain open to examination by the Hong Kong Inland Revenue Department. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 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 December 31, (amounts in thousands) 2015 2014 Loss from operations $ $ (416) Gain on disposal 84 Foreign currency exchange gain 7 Loss from discontinued operations, net of tax $ $ (325) |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 17. Commitments and Contingencies Leases The Company currently leases or sub-leases office spaces and warehouse facilities in locations including Hong Kong, Cambodia, the Philippines, the United States and certain office equipment under non-cancelable operating leases with remaining terms in excess of one year. Operating Leases Total Sublease Net (amounts in thousands) Payments Proceeds Payments 2016 908 908 2017 771 771 2018 493 493 2019 2020 Thereafter Rent expenses on all operating leases were approximately $ 861,000 838,000 Legal Matters Gaming Partners International Corporation Litigation On December 21, 2015, Gaming Partners International Corporation, or the Plaintiff, commenced a legal action in the High Court of the Hong Kong Special Administrative Region against Dolphin Products Limited, or Dolphin, our wholly-owned subsidiary. On January 6, 2016, the Plaintiff filed its Statement of Claim and set out its causes of action, which included inducing a breach of contract, breach of confidence, unlawful interference with trade or business and conspiracy to injure by unlawful means. The Plaintiff claimed, amongst others, (1) an injunction restraining Dolphin from using, accessing, disclosing and/or publishing all confidential information of the Plaintiff for any purpose without the Plaintiff’s consent, (2) an order that Dolphin discloses to the Plaintiff’s solicitors all information, documents and/or items belonging to the Plaintiff in Dolphin’s possession, custody or power and (3) damages to be assessed, interest and costs. On February 17, 2016, Dolphin filed its Defense and has denied any breach or wrongdoing on its part. Dolphin intends to vigorously defend its position. The Plaintiff also applied for an interim injunction, amongst others, (1) restraining Dolphin from using, accessing, disclosing and/or publishing all confidential information of the Plaintiff pending the trial of the action, and (2) compelling Dolphin to disclose to the Plaintiff’s solicitors all information, documents and/or items belonging to the Plaintiff in Dolphin’s possession, custody or power. On December 24, 2015, at the initial hearing of the application for the interim injunction, the judge refused to grant an interim injunction to be effective immediately, granted time for the parties to file their evidence and adjourned the application until May 5, 2016. As the action is at a preliminary stage, it is not possible to accurately predict the likely outcome of the case. No accrual was made for any possible losses in connection Gaming Partners International Corporation commenced separate proceedings in the High Court against an employee of Dolphin and obtained a search order against him. On February 26, 2016, Dolphin applied to the High Court to exclude Dolphin’s property from the scope of the said search order. The judge adjourned the application until May 4, 2016. |
Earnings _ (Loss) Per Share
Earnings / (Loss) Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 18. Earnings / (Loss) Per Share Years Ended December 31, 2015 2014 (amounts in thousands, except per share Number of Per Share Number of Per Share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 820 14,457 $ 0.06 $ (2,506) 8,188 $ (0.31) Effect of dilutive securities Dilutive stock options/restricted shares (1) 28 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 820 14,485 $ 0.06 $ (2,506) 8,188 $ (0.31) (1) For the year end December 31, 2014, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. Outstanding stock options for 740,185 719,399 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 19. Retirement Plan The following tables summarize the components of retirement benefits included in the operating expenses under retirement benefit in the consolidated statement of comprehensive income/loss, and accrued retirement benefits, which is based on the latest actuarial valuation report dated December 31, 2014: December 31, (amounts in thousands) 2015 2014 Service cost $ 8 $ 7 Interest cost on benefits obligation 1 1 Recognized actuarial loss (11) (12) Net periodic (benefit)/cost $ (2) $ (4) December 31, (amounts in thousands) 2015 2014 Balance, January 1 $ 29 $ 21 Service cost 8 7 Interest cost 1 1 Actuarial gain and others (15) Balance, December 31 $ 23 $ 29 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 20. Asset Retirement Obligations December 31, (amounts in thousands) 2015 2014 Balance, January 1 $ 92 $ Additions 92 Accretion expense 7 Balance, December 31 $ 99 $ 92 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 21. Accumulated Other Comprehensive Income The accumulated balances in respect of other comprehensive income consisted of the following: Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances, January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive income/(loss) (12) 23 11 Balances, December 31, 2014 87 666 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances, December 31, 2015 $ 90 $ 619 $ 709 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 22. Subsequent Events On February 29, 2016, the Company entered into a machine lease agreement with NagaWorld Limited pursuant to which NagaWorld agreed to lease from the Company 670 EGM seats and related equipment commencing March 1, 2016. Under the terms of the machine lease agreement, NagaWorld will lease all the Company’s 670 EGM seats and related equipment in their present locations on the NagaWorld casino floor commencing March 1, 2016. The Company will be responsible to pay the withholding tax and provide onsite machine and system maintenance but will not provide any other operational support staff. The Company expects to incur severance costs of approximately $600,000 to terminate the existing operational support staff. NagaWorld will pay the Company, on a monthly basis, a fixed fee per machine seat per day. The lease payments will be graduated for the first six months of the agreement. From March 1 through May 31, 2016, the lease payments per machine seat per day 22 From June 1 through August 31, 2016, the lease payments 20 Beginning September 1, 2016 and thereafter until the contract termination, the lease payments 18 The agreement in ongoing in nature and NagaWorld may terminate the agreement upon not less than 30 days’ prior written notice. On January 27, 2016, the Company entered into a management services agreement with Melco Services Limited, a wholly-owned subsidiary of Melco International Development Limited. The agreement was approved by the conflicts committee and audit committee of the Company’s board of directors and pertains to the provision of specific management and administrative services by Melco Services Limited to the Company. The agreement became effective on January 1, 2015 and will continue until termination by either party, for any reason, upon 30 days’ prior written notice. Total consideration for the year ended December 31, 2015 was 1.6 206 0.129 In future years, the Company will pay to Melco Services Limited a service fee for each year to be agreed upon by the parties before March 20 of the relevant |
Description of Business and S29
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations A discontinued operation is a component of an entity that either has been disposed of, or that is classified as held for sale, and (i) represents a separate major line of business or geographical area of operations; and (ii) is a part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations; or (iii) is a subsidiary acquired exclusively with a view to resale. Non-current assets held for discontinued operations are carried at the lower of carrying amount or fair value less costs to sell. Any gain or loss from disposal of a business, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Company’s consolidated statements of comprehensive income/loss and related notes for all years presented. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of December 31, 2015, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 30.4 |
Accounts Receivable And Allowance For Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationships and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. Inventories included a lower of cost or market (LCM) write-down of approximately NIL and $ 87,000 |
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) Accounting Standards Codification (ASC) 360, Property, Plant and Equipment 2.6 121,000 |
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 gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 2.4 2.9 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to ten years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 652,000 608,000 Depreciation of property and equipment of approximately $ 1.1 810,000 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets, Including Casino Contracts Intangible assets consist of patents, trademarks, technical know-how, a gaming operations agreement, casino contracts, capitalized software costs 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 capitalized software costs 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. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria met for capitalization are expensed to research and development expenses as incurred. Management has committed the resources of developing social gaming application, and it is probable that the social gaming application will be completed and the software will be used as intended. Such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts were approximately $ 2.4 252,000 26,000 24,000 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 judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the years ended December 31, 2015 and 2014. |
Additional Paid In Capital [Policy Text Block] | Additional Paid-In-Capital For the year ended December 31, 2014, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation and the net cash proceeds received from the Company’s subscription rights offering. |
Litigation And Other Contingencies [Policy Text Block] | Litigation and Other Contingencies In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 17. 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 slot operations, the Company earns recurring gaming revenue by providing customers with EGMs and casino management systems which track game performance and provide statistics on installed EGMs owned by the Company and leased to venue owners. Revenues are recognized on the contractual terms of the slot agreements between the Company and the venue owners and are based on the Company’s share of net winnings and reimbursement of expenses, net of customer incentives and commitment fees. Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when the payment for net winnings is received. All slot operations revenues were recognized as earned during the years ended December 31, 2015 and 2014. 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 $ 18,000 126,000 For the discontinued casino operations, the Company’s revenues are measured by the aggregate net difference between gaming wins and losses, with liabilities recognized for funds deposited by customers before gaming play occurs and for chips in their possession, if any. Cash discounts, other cash incentives related to casino play and commissions rebated through junkets or tour guides, if any, to customers are recorded as a reduction to casino revenue. Consequently, the Company’s casino revenues are reduced by discounts and commissions. 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. The Company does not accrue jackpot liabilities for its EGM base and progressive jackpots as regulations do not prohibit removal of gaming machines from the gaming floor without payment of the jackpots. The Company also earned recurring gaming revenue through leasing table game equipment and providing casino management services to gaming operators within its casino property. Revenues from gaming table leasing arrangements were recognized as earned over the contractual terms of the arrangement between the Company and the gaming promoters and are included in discontinued operations. Gaming Products Sales The Company recognizes revenue from the sale of its gaming products and accessories to end users upon shipment against customer contracts or purchase orders. In accordance with the criteria of ASC 605-45, Reporting Revenue Gross as a Principal versus Net as an Agent, Revenue Recognition The Company also recognizes revenue from the sale of its gaming products and accessories 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. |
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 83,000 160,000 |
Employee Defined Contribution Plan [Policy Text Block] | Employee Defined Contribution Plan The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions, which were expensed as incurred, were approximately $ 172,000 162,000 |
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 and certain costs associated with the development of the social casino platform are included in research and development expenses. Research and development expenses were approximately $ 421,000 387,000 |
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 December 31, 2015 or 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 year. 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 exceeding the Company’s stock price as of December 31, 2015. There were no differences in diluted loss per share from basic loss per share for the year ended December 31, 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) December 31, 2015 December 31, 2014 Australian dollar 1.37 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 47.17 44.84 Thai baht 36.07 32.97 Year Ended December 31, (US$1 to foreign currency) 2015 2014 Australian dollar 1.33 1.11 Hong Kong dollar 7.75 7.75 Philippine peso 45.50 44.47 Thai baht 34.25 32.54 |
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 December 31, 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. The company recorded an increase of approximately $ 3,000 12,000 |
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 years ended December 31, 2015 and 2014, the Company recognized approximately $ 7,000 |
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 our 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. In November 2015, the FASB issued ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes”, which amends existing guidance on the presentation of deferred income tax assets and liabilities. The amendments in the ASU require that all deferred tax liabilities and assets be classified as noncurrent on the balance sheet. This ASU will be effective for the Company on January 1, 2017, with earlier adoption permitted. We are currently evaluating its effect on our consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities”, which intends to improve the recognition and measurement of financial instruments. The ASU will be effective for fiscal years and interim periods within those years beginning after December 15, 2017. We are currently assessing the potential impact of this ASU on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842): Accounting for Leases”, which changes the accounting for leases, including a requirement to record all leases on the balance sheet as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of adopting the new leases standard on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations”, which intends to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09, “Revenue from Contracts with Customers”. We are currently assessing the potential impact of this ASU on our consolidated financial statements. |
Description of Business and S30
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of December 31, 2015 and 2014 and average exchange rates for the years ended December 31, 2015 and 2014, respectively. (US$1 to foreign currency) December 31, 2015 December 31, 2014 Australian dollar 1.37 1.23 Hong Kong dollar 7.75 7.76 Philippine peso 47.17 44.84 Thai baht 36.07 32.97 Year Ended December 31, (US$1 to foreign currency) 2015 2014 Australian dollar 1.33 1.11 Hong Kong dollar 7.75 7.75 Philippine peso 45.50 44.47 Thai baht 34.25 32.54 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 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. Given the early stages of the social casino gaming operations, the related costs and expenses are included under corporate and other costs and expenses. Years Ended December 31, (amounts in thousands) 2015 2014 Revenues: Gaming operations $ 18,127 $ 16,364 Gaming products 13,382 5,998 Total revenues $ 31,509 $ 22,362 Operating income/(loss): Gaming operations operating income $ 6,114 $ 6,621 Gaming products operating income/(loss) 1,554 (2,381) Corporate and other operating costs and expenses (6,438) (6,747) Total operating income/(loss) $ 1,230 $ (2,507) December 31, (amounts in thousands) 2015 2014 Identifiable assets: Gaming operations $ 22,763 $ 19,184 Gaming products 13,403 12,912 Corporate 9,119 12,558 Total identifiable assets $ 45,285 $ 44,654 December 31, (amounts in thousands) 2015 2014 Goodwill: Gaming operations $ 332 $ 351 Years Ended December 31, (amounts in thousands) 2015 2014 Capital expenditures: Gaming operations $ 740 $ 587 Gaming products 760 2,796 Corporate 153 88 Total capital expenditures $ 1,653 $ 3,471 Depreciation and amortization: Gaming operations $ 5,799 $ 6,293 Gaming products 1,206 935 Corporate 95 61 Total depreciation and amortization $ 7,100 $ 7,289 Impairment of assets: Gaming operations $ 2,563 $ 15 Gaming products 106 Total impairment of assets $ 2,563 $ 121 Interest expenses and finance fees: Corporate $ 3 $ 4 Income tax expense/(benefit): Gaming operations (1) $ 236 $ Corporate (19) (41) Total income tax expense/(benefit) $ 217 $ (41) (1) The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $ 137,000 122,000 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Geographic segment revenues for the years ended December 31, 2015 and 2014 are as follows: Years Ended December 31, (amounts in thousands) 2015 2014 Cambodia $ 15,486 $ 13,530 Philippines 9,978 7,467 Macau 2,982 761 Australia 1,568 532 Russia 1,485 Others 10 72 Total $ 31,509 $ 22,362 Long-lived assets, goodwill and intangible assets identified by geographic segments consisted of the following: December 31, (amounts in thousands) 2015 2014 Cambodia $ 3,517 $ 10,219 Hong Kong 5,278 6,449 Philippines 1,295 1,664 United States 65 115 Total $ 10,155 $ 18,447 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | December 31, (amounts in thousands) 2015 2014 Raw materials $ 1,742 $ 1,866 Work-in-process (1) 80 600 Finished goods (2) 443 Spare parts 113 151 Total $ 2,378 $ 2,617 (1) Work-in-process decreased from December 31, 2014 to December 31, 2015 due to fewer gaming chip and plaque orders in process as of December 31, 2015. (2) Finished goods increased from December 31, 2014 to December 31, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2016. |
Prepaid Expenses and Other Cu33
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, (amounts in thousands) 2015 2014 Prepayments to suppliers (1) $ 292 $ 1,434 Prepaid leases 3 13 Total $ 295 $ 1,447 (1) Prepayments to suppliers decreased from December 31, 2014 to December 31, 2015 due to higher deposit payments in the year ended December 31, 2014 related to the outsourcing of certain gaming products orders delivered in early 2015. |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule Of Accounts And Other Receivables [Table Text Block] | Accounts and other receivables consisted of the following: December 31, (amounts in thousands) 2015 2014 Trade receivables $ 724 $ 830 Other receivables 78 316 802 1,146 Less: allowance for doubtful accounts Net $ 802 $ 1,146 |
Gaming Equipment (Tables)
Gaming Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Disclosure Of Electronic Gaming Machines EGMs and Systems [Table Text Block] | Useful Life December 31, (amounts in thousands) (years) 2015 2014 EGMs (1) 3-5 $ 16,215 $ 17,844 Systems 5 1,335 1,503 17,550 19,347 Less: accumulated depreciation (14,565) (13,723) Net carrying value $ 2,985 $ 5,624 (1) EGMs decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $ 700,000 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Useful Life December 31, (amounts in thousands) (years) 2015 2014 Equipment, vehicles, furniture and fixtures 3-10 $ 6,290 $ 6,697 Land and building (1) 5 1,506 2,928 Leasehold improvements 1-6 1,400 1,421 Construction in progress N/A 634 9,196 11,680 Less: accumulated depreciation (3,277) (2,785) Net carrying value $ 5,919 $ 8,895 (1) Land and building decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $ 600,000 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 12 Months Ended |
Dec. 31, 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 less accumulated amortization. The major categories of goodwill and intangible assets and accumulated amortization consisted of the following: Useful Life December 31, (amounts in thousands) (years) 2015 2014 Gaming operation agreement 4-5 $ 1,166 $ 1,175 Less: accumulated amortization (1,070) (818) 96 357 Goodwill N/A 332 351 Patents 5-6 114 114 Less: accumulated amortization (104) (83) 10 31 Trademarks 5-9 26 26 Less: accumulated amortization (15) (12) 11 14 Technical know-how 10 261 261 Less: accumulated amortization (94) (68) 167 193 Casino contracts 5-6 12,637 12,754 Less: accumulated amortization (12,109) (9,772) 528 2,982 Internaluse software 107 Net carrying value $ 1,251 $ 3,928 |
Schedule of Goodwill [Table Text Block] | Goodwill movements during the year consisted of the following: (amounts in thousands) 2015 2014 Balance as of January 1 $ 351 $ 353 Foreign currency translation adjustment (19) (2) Balance as of December 31 $ 332 $ 351 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Annual estimated amortization expense for each of the five succeeding years and thereafter consist of the following: (amounts in thousands) 2016 663 2017 29 2018 29 2019 28 2020 26 Thereafter 37 Total $ 812 |
Prepaids, Deposits and Other 38
Prepaids, Deposits and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, (amounts in thousands) 2015 2014 Prepaid taxes (1) $ $ 323 Prepaid lease (2) 211 Prepayments to suppliers 34 454 Rental, utilities and other deposits 391 328 Total $ 425 $ 1,316 (1) Prepaid taxes as of December 31, 2014 were fully utilized in the year ended December 31, 2015 to offset the current income tax expense for the Philippines operations. (2) The prepaid lease as of December 31, 2014 consisted of land lease prepayments for a gaming development project located in Cambodia, which was written off as of December 31, 2015. |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: December 31, (amounts in thousands) 2015 2014 Payroll and related costs $ 626 $ 723 Professional fees 339 350 Withholding tax expenses 549 583 Other tax expenses 44 44 Others 197 309 Total $ 1,755 $ 2,009 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: December 31, (amounts in thousands) 2015 2014 Other tax liabilities $ 754 $ 819 Others 126 26 Total $ 880 $ 845 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 and changes during the years then ended is presented in the following tables. Options Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2013 822,946 $ 8.45 5.99 $ 738 Granted 56,250 4.84 280 Exercised Forfeited or expired (94,164) 9.80 Outstanding as of December 31, 2014 785,032 8.02 5.42 46 Exercisable as of December 31, 2014 727,949 $ 8.14 5.27 $ 46 Weighted Average Remaining Average Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (17,556) 13.46 Outstanding as of December 31, 2015 767,476 7.90 4.28 34 Exercisable as of December 31, 2015 734,976 $ 7.95 4.14 $ 34 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life shares Grant Date (in years) Unvested balance as of December 31, 2013 $ Granted 23,750 4.84 Vested(1) (16,250) 4.84 Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life 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 December 31, 2015 3,750 $ 4.84 0.41 (1) Vested shares included 12,500 5,625 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the years ended December 31, 2015 and 2014. Year Ended December 31, 2015 2014 Range of values: Low High Low High Expected volatility 71.85 % 80.91 % 73.03 % 79.31 % 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) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule Of Transactions With Related Parties [Table Text Block] | Year ended December 31, (amounts in thousands) 2015 2014 Related party transaction provided to: Melco Crown (Macau) Limited Sales of gaming products $ 358 $ 138 MCE Leisure (Philippines) Corporation Sales of gaming products $ 4,945 $ 3,523 Melco Crown Entertainment Limited Sales of gaming products $ 212 $ 243 Oriental Regent Limited Sales of gaming products $ 1,485 $ Studio City International Holding Limited Sales of gaming products $ 2,280 $ Related party transactions provided by: Melco Services Limited Technical services $ 2 $ 2 Other (1) $ 224 $ 2 Aberdeen Restaurant Enterprises Limited other $ 5 $ Golden Future (Management Services) Limited Management services $ 281 $ 276 (1) The amount for the year ended December 31, 2015 represents fees paid to Melco Services Limited for the management services agreement, which was effective as of January 1, 2015, discussed in greater detail in Note 22. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes consisted of the following: Years ended December 31, (amounts in thousands) 2015 2014 Federal deferred $ (59) $ (59) Foreign Current (376) (133) Deferred 218 233 Total tax (expense)/benefit $ (217) $ 41 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation of the statutory federal income tax rate and the Company’s effective tax rates consisted of the following: Years Ended December 31, (amounts in thousands) 2015 2014 Federal tax expense at statutory rates $ (352) $ 866 Difference in jurisdictional tax rates 555 (223) Expense not deductible for tax (158) 32 Income not subject to tax 1,135 876 Adjustment of provision to tax return (659) (311) Change in valuation allowances (695) (1,138) Change in unrecognized tax benefits (94) (108) Other 51 47 Total tax (expense)/benefit $ (217) $ 41 |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Consolidated income/(loss) from continuing operations before taxes for domestic and international operations consisted of the following: Years Ended December 31, (amounts in thousands) 2015 2014 Domestic $ (3,671) $ (3,249) International 4,708 702 Income/(loss) from continuing operations before income tax $ 1,037 $ (2,547) |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The primary tax affected components of the Company’s deferred tax assets/(liabilities) consisted of the following: December 31, (amounts in thousands) 2015 2014 Deferred tax assets current Prepaid commission agreement $ 1,277 $ 1,277 Depreciation and impairment 2,214 2,753 Other 326 481 Less: Valuation allowances (3,817) (4,511) Deferred tax assets non current Net operating losses 63,427 61,938 Stock options 920 888 Less: Valuation allowances (64,073) (62,684) 274 142 Deferred tax liabilities non current Acquisition of intangibles (29) (107) Net deferred tax assets/(liabilities) $ 245 $ 35 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following: (amounts in thousands) Balance at January 1, 2014 $ 4,021 Additions based on tax positions related to the current year 43 Reductions for tax positions of prior years (3) Balance at December 31, 2014 $ 4,061 Additions based on tax positions related to the current year 58 Reductions for tax positions of prior years (31) Balance at December 31, 2015 $ 4,088 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 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. December 31, (amounts in thousands) 2015 2014 Loss from operations $ $ (416) Gain on disposal 84 Foreign currency exchange gain 7 Loss from discontinued operations, net of tax $ $ (325) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Payments For Capital And Operating Leases [Table Text Block] | Future minimum lease payment commitments, net of any sublease proceeds and including scheduled escalation provisions as of December 31, 2015 under the leases were as follows: Operating Leases Total Sublease Net (amounts in thousands) Payments Proceeds Payments 2016 908 908 2017 771 771 2018 493 493 2019 2020 Thereafter |
Earnings _ (Loss) Per Share (Ta
Earnings / (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of the basic and diluted loss per share from continuing operations consisted of the following: Years Ended December 31, 2015 2014 (amounts in thousands, except per share Number of Per Share Number of Per Share data) Income Shares Amount Loss Shares Amount Basic Net income/(loss) attributable to equity shareholders $ 820 14,457 $ 0.06 $ (2,506) 8,188 $ (0.31) Effect of dilutive securities Dilutive stock options/restricted shares (1) 28 Diluted Net income/(loss) attributable to equity shareholders plus assumed conversion $ 820 14,485 $ 0.06 $ (2,506) 8,188 $ (0.31) (1) For the year end December 31, 2014, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
Retirement Plan (Tables)
Retirement Plan (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of retirement benefits for the years ended December 31, 2015 and 2014 in the consolidated statements of comprehensive income/loss are as follows: December 31, (amounts in thousands) 2015 2014 Service cost $ 8 $ 7 Interest cost on benefits obligation 1 1 Recognized actuarial loss (11) (12) Net periodic (benefit)/cost $ (2) $ (4) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Movement in the present value of the retirement obligation for the years ended December 31, 2015 and 2014 are as follows: December 31, (amounts in thousands) 2015 2014 Balance, January 1 $ 29 $ 21 Service cost 8 7 Interest cost 1 1 Actuarial gain and others (15) Balance, December 31 $ 23 $ 29 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of our asset retirement obligations are as follows: December 31, (amounts in thousands) 2015 2014 Balance, January 1 $ 92 $ Additions 92 Accretion expense 7 Balance, December 31 $ 99 $ 92 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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, January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive income/(loss) (12) 23 11 Balances, December 31, 2014 87 666 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances, December 31, 2015 $ 90 $ 619 $ 709 |
Description of Business and S50
Description of Business and Significant Accounting Policies (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 0.129 | |
Australian dollar [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 1.37 | 1.23 |
Average Foreign Currency Exchange Rate Translation | 1.33 | 1.11 |
Hong Kong Dollar [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 7.75 | 7.76 |
Average Foreign Currency Exchange Rate Translation | 7.75 | 7.75 |
Philippine Peso [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 47.17 | 44.84 |
Average Foreign Currency Exchange Rate Translation | 45.50 | 44.47 |
Thai baht [Member] | ||
Accounting Polices [Line Items] | ||
Foreign Currency Exchange Rate, Translation | 36.07 | 32.97 |
Average Foreign Currency Exchange Rate Translation | 34.25 | 32.54 |
Description of Business and S51
Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 12, 2014 | Jun. 20, 2014 | |
Accounting Polices [Line Items] | ||||
Excess Cash Limits, FDIC Insured Amount | $ 30,400,000 | |||
Casino contract amortization | 2,436,000 | $ 2,445,000 | ||
Commitment | 18,000 | 126,000 | ||
Stock-based compensation expenses | 83,000 | 160,000 | ||
Product development expenses | $ 421,000 | 387,000 | ||
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | |||
Gaming property and equipment depreciation | $ 2,400,000 | 2,900,000 | ||
Lease Term Percentage | 75.00% | |||
Present Value Of Future Minimum Lease Payments Percentage Description | 90% or more of the fair value of the leased property to the lessor at the inception date.  | |||
Inventory Valuation Reserves | $ 0 | $ 87,000 | ||
Tangible Asset Impairment Charges | 2,600,000 | 121,000 | ||
Defined Contribution Plan, Administrative Expenses | 172,000 | 162,000 | ||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | (3,000) | 12,000 | ||
Asset Retirement Obligation, Cash Paid to Settle | 7,000 | 0 | ||
Unbilled Other Sales Revenue Net | 2,400,000 | |||
Gaming Products [Member] | ||||
Accounting Polices [Line Items] | ||||
Cost of Goods Sold, Depreciation | 1,100,000 | 810,000 | ||
Gaming Operation [Member] | ||||
Accounting Polices [Line Items] | ||||
Cost of Goods Sold, Depreciation | 652,000 | 608,000 | ||
Dreamworld Casino (Pailin) Limited [Member] | ||||
Accounting Polices [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 100.00% | |||
Patents and Trademarks [Member] | ||||
Accounting Polices [Line Items] | ||||
Amortization | 24,000 | 24,000 | ||
Technical Know How [Member] | ||||
Accounting Polices [Line Items] | ||||
Amortization | 26,000 | 26,000 | ||
Other Gaming Related Intangible Assets [Member] | ||||
Accounting Polices [Line Items] | ||||
Amortization | $ 252,000 | $ 252,000 | ||
Egms and Systems [Member] | ||||
Accounting Polices [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 5 years | |||
Refurbished EGMs and Systems [Member] | ||||
Accounting Polices [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | ||||
Accounting Polices [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | ||||
Accounting Polices [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 3 years |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 31,509 | $ 22,362 | ||
Operating income/(loss) | 1,230 | (2,507) | ||
Identifiable assets | 45,285 | 44,654 | ||
Capital expenditures | 1,653 | 3,471 | ||
Depreciation and amortization | 7,100 | 7,289 | ||
Impairment of assets | 2,563 | 121 | ||
Interest expenses and finance fees | 3 | 4 | ||
Income tax (benefit)/expense | 217 | (41) | ||
Goodwill | 332 | 351 | $ 353 | |
Gaming operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 18,127 | 16,364 | ||
Operating income/(loss) | 6,114 | 6,621 | ||
Identifiable assets | 22,763 | 19,184 | ||
Capital expenditures | 740 | 587 | ||
Depreciation and amortization | 5,799 | 6,293 | ||
Impairment of assets | 2,563 | 15 | ||
Income tax (benefit)/expense | [1] | 236 | 0 | |
Goodwill | 332 | 351 | ||
Gaming products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 13,382 | 5,998 | ||
Operating income/(loss) | 1,554 | (2,381) | ||
Identifiable assets | 13,403 | 12,912 | ||
Capital expenditures | 760 | 2,796 | ||
Depreciation and amortization | 1,206 | 935 | ||
Impairment of assets | 0 | 106 | ||
Corporate and Other Operating Costs and Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating income/(loss) | (6,438) | (6,747) | ||
Identifiable assets | 9,119 | 12,558 | ||
Capital expenditures | 153 | 88 | ||
Depreciation and amortization | 95 | 61 | ||
Interest expenses and finance fees | 3 | 4 | ||
Income tax (benefit)/expense | $ (19) | $ (41) | ||
[1] | The Company is required to pay a fixed gaming obligation tax for its operations in Cambodia. The amounts paid were approximately $137,000 and $122,000 for the years ended December 31, 2015 and 2014, respectively, and were included in selling, general and administrative expenses. |
Segments (Details 1)
Segments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 31,509 | $ 22,362 |
Long Lived Assets Intangible Assets Including Goodwill | 10,155 | 18,447 |
Cambodia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 15,486 | 13,530 |
Long Lived Assets Intangible Assets Including Goodwill | 3,517 | 10,219 |
Philippines [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 9,978 | 7,467 |
Long Lived Assets Intangible Assets Including Goodwill | 1,295 | 1,664 |
Macau [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,982 | 761 |
Australia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,568 | 532 |
Russia [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 1,485 | 0 |
Others [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 10 | 72 |
Hong Kong [Member] | ||
Segment Reporting Information [Line Items] | ||
Long Lived Assets Intangible Assets Including Goodwill | 5,278 | 6,449 |
United States [Member] | ||
Segment Reporting Information [Line Items] | ||
Long Lived Assets Intangible Assets Including Goodwill | $ 65 | $ 115 |
Segments (Details Textual)
Segments (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | |
General and Administrative Expense [Member] | |||
Segment Reporting Information [Line Items] | |||
Income Taxes Paid | $ 137,000 | $ 122,000 | |
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 | 37.00% | 59.00% | |
Gaming Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 75.00% | 70.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Raw materials | $ 1,742 | $ 1,866 | |
Work-in-process | [1] | 80 | 600 |
Finished goods | [2] | 443 | 0 |
Spare parts | 113 | 151 | |
Total | $ 2,378 | $ 2,617 | |
[1] | Work-in-process decreased from December 31, 2014 to December 31, 2015 due to fewer gaming chip and plaque orders in process as of December 31, 2015. | ||
[2] | Finished goods increased from December 31, 2014 to December 31, 2015 in preparation for gaming chip and plaque orders expected to be delivered in the first quarter of 2016. |
Prepaid Expenses and Other Cu56
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | $ 295 | $ 1,447 | |
Prepayments to suppliers [Member] | |||
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | [1] | 292 | 1,434 |
Prepaid leases [Member] | |||
Prepaid expenses and other current assets [Line Items] | |||
Prepaid expenses and other current assets | $ 3 | $ 13 | |
[1] | Prepayments to suppliers decreased from December 31, 2014 to December 31, 2015 due to higher deposit payments in the year ended December 31, 2014 related to the outsourcing of certain gaming products orders delivered in early 2015. |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Line Items] | ||
Trade receivables | $ 724 | $ 830 |
Other receivables | 78 | 316 |
Accounts Receivable, Gross, Current | 802 | 1,146 |
Less: allowance for doubtful accounts | 0 | 0 |
Net | $ 802 | $ 1,146 |
Gaming Equipment (Details)
Gaming Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | $ 17,550 | $ 19,347 | |
Less: accumulated depreciation | (14,565) | (13,723) | |
Net carrying value | 2,985 | 5,624 | |
EGMs [Member] | |||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | [1] | $ 16,215 | 17,844 |
EGMs [Member] | Minimum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | [1] | 3 years | |
EGMs [Member] | Maximum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | [1] | 5 years | |
Systems [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | 5 years | ||
Gaming equipment, Gross | $ 1,335 | $ 1,503 | |
[1] | EGMs decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $700,000 in gaming equipment related to the Dreamworld Club (Poipet) operations in the year ended December 31, 2015. |
Gaming Equipment (Details Textu
Gaming Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Gaming Equipment [Line Items] | ||
Cost Of Services Electronic Gaming Machine Depreciation and Amortization | $ 2,400,000 | $ 2,900,000 |
Equipment [Member] | ||
Gaming Equipment [Line Items] | ||
Property And Equipment Write off | $ 700,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Property, Plant and Equipment [Line Items] | |||
Equipment, vehicles, furniture and fixtures | $ 6,290 | $ 6,697 | |
Land and buildings | [1] | 1,506 | 2,928 |
Leasehold improvements | 1,400 | 1,421 | |
Construction in progress | 0 | 634 | |
Property, Plant and Equipment, Gross | 9,196 | 11,680 | |
Less: accumulated depreciation | (3,277) | (2,785) | |
Net carrying value | $ 5,919 | $ 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] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | [1] | 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 | ||
[1] | Land and building decreased from December 31, 2014 to December 31, 2015 due to the write-off of approximately $600,000 in building infrastructure related to the Dreamworld Club (Poipet) operations in the year ended December 31, 2015. |
Property and Equipment (Detai61
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Land and Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property And Equipment Write off | $ 600,000 | |
Gaming Products [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | 1,100,000 | $ 810,000 |
Gaming Operation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | $ 652,000 | $ 608,000 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets, including Casino Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Gaming operation agreement [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | $ 1,166 | $ 1,175 |
Less: accumulated amortization | (1,070) | (818) |
Net carrying value | $ 96 | 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 | $ 332 | $ 351 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years | |
Patents [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Definite-life intangible assets | 114 | $ 114 |
Less: accumulated amortization | (104) | (83) |
Net carrying value | $ 10 | 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 | (94) | (68) |
Net carrying value | $ 167 | 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 | $ 12,637 | 12,754 |
Less: accumulated amortization | (12,109) | (9,772) |
Net carrying value | $ 528 | 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 | |
Internal Use Software [Member] | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | ||
Net carrying value | $ 1,251 | 3,928 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 107 | $ 0 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets, including Casino Contracts (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance at the beginning | $ 351 | $ 353 |
Foreign currency translation adjustment | (19) | (2) |
Balance at the ending | $ 332 | $ 351 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets, including Casino Contracts (Details 2) $ in Thousands | Dec. 31, 2015USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
2,016 | $ 663 |
2,017 | 29 |
2,018 | 29 |
2,019 | 28 |
2,020 | 26 |
Thereafter | 37 |
Total | $ 812 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets, including Casino Contracts [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 2.7 | $ 2.7 |
Prepaids, Deposits and Other 66
Prepaids, Deposits and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 425 | $ 1,316 | |
Prepaid taxes [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [1] | 0 | 323 |
Prepaid lease [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [2] | 0 | 211 |
Prepayments to suppliers [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 34 | 454 | |
Rental, utilities and other deposits [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 391 | $ 328 | |
[1] | Prepaid taxes as of December 31, 2014 were fully utilized in the year ended December 31, 2015 to offset the current income tax expense for the Philippines operations. | ||
[2] | The prepaid lease as of December 31, 2014 consisted of land lease prepayments for a gaming development project located in Cambodia, which was written off as of December 31, 2015. |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Expenses [Line Items] | ||
Payroll and related costs | $ 626 | $ 723 |
Professional fees | 339 | 350 |
Withholding tax expenses | 549 | 583 |
Other tax expenses | 44 | 44 |
Others | 197 | 309 |
Total | $ 1,755 | $ 2,009 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities [Line Items] | ||
Other tax liabilities | $ 754 | $ 819 |
Other | 126 | 26 |
Total | $ 880 | $ 845 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Based Compensation [Line Items] | |||
Outstanding, Number of Options, Beginning Balance | 785,032 | 822,946 | |
Granted, Number of Options | 0 | 56,250 | |
Exercised, Number of Options | 0 | 0 | |
Forfeited or expired, Number of Options | (17,556) | (94,164) | |
Outstanding, Number of Options, Ending Balance | 767,476 | 785,032 | 822,946 |
Exercisable, Number of Options | 734,976 | 727,949 | |
Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 8.02 | $ 8.45 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | 4.84 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | 0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 13.46 | 9.80 | |
Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 7.90 | 8.02 | $ 8.45 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 7.95 | $ 8.14 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 4 years 3 months 11 days | 5 years 5 months 1 day | 5 years 11 months 26 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 1 month 20 days | 5 years 3 months 7 days | |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 46 | $ 738 | |
Granted, Aggregate Intrinsic Value | 0 | 280 | |
Exercised, Aggregate Intrinsic Value | 0 | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 | |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 34 | 46 | $ 738 |
Exercisable, Aggregate Intrinsic Value | $ 34 | $ 46 |
Stock-Based Compensation (Det70
Stock-Based Compensation (Details 1) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Stock Based Compensation [Line Items] | |||
Unvested Balance, Number of Shares, Beginning Balance | 7,500 | 0 | |
Granted, Number of Shares | 0 | 23,750 | |
Vested, Number of Shares | (3,750) | (16,250) | [1] |
Unvested Balance, Number of Shares, Ending Balance | 3,750 | 7,500 | |
Unvested Balance, Weighted Average Fair Value at Grant Date, Beginning Balance | $ 4.84 | $ 0 | |
Granted, Weighted Average Fair Value at Grant Date | 0 | 4.84 | |
Vested, Weighted Average Fair Value at Grant Date | 0 | 4.84 | [1] |
Unvested Balance, Weighted Average Fair Value at Grant Date, Ending Balance | $ 4.84 | $ 4.84 | |
Unvested balance, Weighted Average Remaining Contractual Life (in years) | 4 months 28 days | 1 year 4 months 28 days | |
[1] | Vested shares included 12,500 shares of restricted common stock issued in the year ended December 31, 2014 for which final vesting of 5,625 shares was approved by the Company’s compensation committee in March 2015. |
Stock-Based Compensation (Det71
Stock-Based Compensation (Details 2) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Line Items] | ||
Expected volatility - Low | 71.85% | 73.03% |
Expected volatility - High | 80.91% | 79.31% |
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 (Det72
Stock-Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2015 | Feb. 26, 2015 | Jul. 31, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 12, 2014 | Dec. 31, 2013 | 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 | 767,476 | 785,032 | 822,946 | |||||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $ 3.35 | |||||||
Exercisable, Aggregate Intrinsic Value, Options | $ 34,000 | $ 46,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 45,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | $ 10,000 | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 8 months 26 days | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 7.95 | |||||||
Exercisable, Number Of Shares | 734,976 | 727,949 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 32,500 | |||||||
Stock Option Plan 2008 [Member] | ||||||||
Stock Based Compensation [Line Items] | ||||||||
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 | 226,252 | |||||||
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 | |||||||
Restricted Stock [Member] | ||||||||
Stock Based Compensation [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 0 | $ 4.84 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 5,625 | 12,500 |
Impairment of Long-Lived Asse73
Impairment of Long-Lived Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment Of Long Lived Assets [Line Items] | ||
Tangible Asset Impairment Charges | $ 2,600,000 | $ 121,000 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Thousands, HKD in Millions | 12 Months Ended | |||
Dec. 31, 2015USD ($) | Dec. 31, 2015HKD | Dec. 31, 2014USD ($) | ||
Related party transactions provided to: | ||||
Sales of gaming products | $ 31,509 | $ 22,362 | ||
Related party transactions provided by: | ||||
Management services | 206 | HKD 1.6 | ||
Melco Crown (Macau) Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 358 | 138 | ||
MCE Leisure (Philippines) Corporation [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 4,945 | 3,523 | ||
Melco Crown Entertainment Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 212 | 243 | ||
Oriental Regent Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 1,485 | 0 | ||
Studio City International Holding Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 2,280 | 0 | ||
Melco Services Limited [Member] | ||||
Related party transactions provided by: | ||||
Technical services | 2 | 2 | ||
Other | [1] | 224 | 2 | |
Aberdeen Restaurant Enterprises Limited [Member] | ||||
Related party transactions provided by: | ||||
Other | 5 | 0 | ||
Golden Future (Management Services) Ltd [Member] | ||||
Related party transactions provided by: | ||||
Management services | $ 281 | $ 276 | ||
[1] | The amount for the year ended December 31, 2015 represents fees paid to Melco Services Limited for the management services agreement, which was effective as of January 1, 2015, discussed in greater detail in Note 22. |
Related Party Transactions (D75
Related Party Transactions (Details Textual) | Dec. 31, 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 | 72.20% |
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 | 86.80% |
Oriental Regent Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | ||
Federal deferred | $ (59) | $ (59) |
Foreign | ||
Current | (376) | (133) |
Deferred | 218 | 233 |
Total tax (expense)/benefit | $ (217) | $ 41 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | ||
Federal tax expense at statutory rates | $ (352) | $ 866 |
Difference in jurisdictional tax rates | 555 | (223) |
Expense not deductible for tax | (158) | 32 |
Income not subject to tax | 1,135 | 876 |
Adjustment of provision to tax return | (659) | (311) |
Change in valuation allowances | (695) | (1,138) |
Change in unrecognized tax benefits | (94) | (108) |
Other | 51 | 47 |
Total tax (expense)/benefit | $ (217) | $ 41 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | ||
Domestic | $ (3,671) | $ (3,249) |
International | 4,708 | 702 |
Income/(loss) from continuing operations before income tax | $ 1,037 | $ (2,547) |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets - current | ||
Prepaid commission agreement | $ 1,277 | $ 1,277 |
Depreciation and impairment | 2,214 | 2,753 |
Other | 326 | 481 |
Less: Valuation allowances | (3,817) | (4,511) |
Deferred Tax Assets, Net of Valuation Allowance, Current | 0 | 0 |
Deferred tax assets - non current | ||
Net operating losses | 63,427 | 61,938 |
Stock options | 920 | 888 |
Less: Valuation allowances | (64,073) | (62,684) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 274 | 142 |
Deferred tax liabilities - non current | ||
Acquisition of intangibles | (29) | (107) |
Net deferred tax assets/(liabilities) | $ 245 | $ 35 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax [Line Items] | ||
Beginning Balance | $ 4,061 | $ 4,021 |
Additions based on tax positions related to the current year | 58 | 43 |
Reductions for tax positions of prior years | (31) | (3) |
Ending Balance | $ 4,088 | $ 4,061 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income tax expenses | ||
Withholding Of Taxes | $ 3,700,000 | |
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 182,300,000 | $ 179,100,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 6,500,000 | 7,800,000 |
Undistributed Earnings of Foreign Subsidiaries | 26,300,000 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 270,000 | |
Income Tax Examination, Penalties and Interest Expense | 67,000 | |
Income Tax Examination, Penalties and Interest Accrued | 440,000 | |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | (3,671,000) | (3,249,000) |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 4,708,000 | 702,000 |
Additional Paid-in Capital [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | 60,500,000 | |
Dolphin Australia [Member] | ||
Income tax expenses | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 4,700,000 | |
Loss Decreased From Continuing Operations Before Income Taxes Domestic | 4,000,000 | |
Dreamworld Casino Pailin Limited [Member] | ||
Income tax expenses | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 700,000 | |
Pre-Quasi-Reorganization [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | $ 61,300,000 | |
Post-Quasi-Reorganization [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | $ 6,600,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations [Line Items] | ||
Loss from discontinued operations, net of tax | $ 0 | $ (325) |
Dreamworld Casino (Pailin) Limited [Member] | ||
Discontinued Operations [Line Items] | ||
Loss from operations | 0 | (416) |
Gain on disposal | 0 | 84 |
Foreign currency exchange gain | 0 | 7 |
Loss from discontinued operations, net of tax | $ 0 | $ (325) |
Discontinued Operations (Deta83
Discontinued Operations (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | 26 Months Ended | ||||
Sep. 30, 2011 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | Oct. 31, 2014 | Jun. 20, 2014 | |
Discontinued Operations [Line Items] | |||||||
Operating Leases, Rent Expense | $ 861,000 | $ 838,000 | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 363,000 | ||||||
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 | ||||||
Disposal Group Including Discontinued Operation Remaining Consideration Total Installments | 16 |
Commitments and Contingencies84
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments And Contingencies [Line Items] | |
Total Payments - 2016 | $ 908 |
Total Payments - 2017 | 771 |
Total Payments - 2018 | 493 |
Total Payments - 2019 | 0 |
Total Payments - 2020 | 0 |
Total Payments - Thereafter | 0 |
Operating Leases Sublease Proceeds - 2016 | 0 |
Operating Leases Sublease Proceeds - 2017 | 0 |
Operating Leases Sublease Proceeds - 2018 | 0 |
Operating Leases Sublease Proceeds - 2019 | 0 |
Operating Leases Sublease Proceeds - 2020 | 0 |
Operating Leases Sublease Proceeds - Thereafter | 0 |
Net Payments - 2016 | 908 |
Net Payments - 2017 | 771 |
Net Payments - 2018 | 493 |
Net Payments - 2019 | 0 |
Net Payments - 2020 | 0 |
Net Payments - Thereafter | $ 0 |
Commitments and Contingencies85
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Line Items] | ||
Operating Leases, Rent Expense | $ 861,000 | $ 838,000 |
Earnings _ (Loss) Per Share (De
Earnings / (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Basic | |||
Net income/(loss) attributable to equity shareholders | $ 820 | $ (2,506) | |
Net income/(loss) attributable to equity shareholders - Number of Shares | 14,457 | 8,188 | |
Net income/(loss) attributable to equity shareholders, Per share Amount (in dollars per share) | $ 0.06 | $ (0.31) | |
Effect of dilutive securities | |||
Dilutive stock options/restricted shares | [1] | 28 | 0 |
Diluted | |||
Net income/(loss) attributable to equity shareholders plus assumed conversion | $ 820 | $ (2,506) | |
Net income/(loss) attributable to equity shareholders plus assumed conversion - Number of shares | 14,485 | 8,188 | |
Net income/(loss) attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | $ 0.06 | $ (0.31) | |
[1] | For the year end December 31, 2014, there were no differences in diluted loss per share from basic loss per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
Earnings _ (Loss) Per Share (87
Earnings / (Loss) Per Share (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Loss Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 740,185 | 719,399 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Service cost | $ 8 | $ 7 |
Interest cost on benefits obligation | 1 | 1 |
Recognized actuarial loss | (11) | (12) |
Net periodic (benefit)/cost | $ (2) | $ (4) |
Retirement Plan (Details 1)
Retirement Plan (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at the beginning | $ 29 | $ 21 |
Service cost | 8 | 7 |
Interest cost | 1 | 1 |
Actuarial gain and others | (15) | 0 |
Balance at the ending | $ 23 | $ 29 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Balance at the beginning | $ 92 | $ 0 |
Additions | 0 | 92 |
Accretion expense | 7 | 0 |
Balance at the ending | $ 99 | $ 92 |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 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) | 3 | (12) |
Defined Benefit Pension Plan, Ending Balance | 90 | 87 |
Foreign Currency Translation, Beginning Balance | 666 | 643 |
Foreign Currency Translation, Current period other comprehensive income/(loss) | (47) | 23 |
Foreign Currency Translation, Ending Balance | 619 | 666 |
Accumulated Other Comprehensive Income, Beginning Balance | 753 | 742 |
Accumulated Other Comprehensive Income, Current period other comprehensive income/(loss) | (44) | 11 |
Accumulated Other Comprehensive Income, Ending Balance | $ 709 | $ 753 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) HKD in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Feb. 29, 2016USD ($) | Aug. 31, 2016USD ($) | May. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015HKD | |
Subsequent Event [Line Items] | ||||||
Service Management Costs | $ 206,000 | HKD 1.6 | ||||
Foreign Currency Exchange Rate, Translation | 0.129 | 0.129 | ||||
Description of Difference between Reported Amount and Reporting Currency Denominated Amount | exchange rate of HK$1 to US$0.129 | exchange rate of HK$1 to US$0.129 | ||||
Scenario, Forecast [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Operating Leases, Income Statement, Lease Revenue, Total | $ 18 | $ 20 | $ 22 | |||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Severance Costs | $ 600,000 |