Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 01, 2016 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Entertainment Gaming Asia Inc. | |
Entity Central Index Key | 1,004,673 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | EGT | |
Entity Common Stock, Shares Outstanding | 14,464,220 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 35,021 | $ 30,681 |
Accounts receivable, net | 367 | 724 |
Amounts due from related parties | 0 | 257 |
Other receivables | 1,049 | 78 |
Inventories | 57 | 2,378 |
Prepaid expenses and other current assets | 490 | 295 |
Contract amendment fees | 0 | 18 |
Total current assets | 36,984 | 34,431 |
Gaming equipment, net | 685 | 2,985 |
Casino contracts | 0 | 528 |
Property and equipment, net | 1,242 | 5,919 |
Goodwill | 325 | 332 |
Intangible assets, net | 1,485 | 391 |
Deferred tax asset | 268 | 274 |
Prepaids, deposits and other assets | 1,279 | 425 |
Total assets | 42,268 | 45,285 |
Current liabilities: | ||
Accounts payable | 558 | 288 |
Amounts due to related parties | 93 | 239 |
Accrued expenses | 1,884 | 1,755 |
Income tax payable | 271 | 2 |
Deferred revenue | 0 | 9 |
Customer deposits and other current liabilities | 41 | 529 |
Total current liabilities | 2,847 | 2,822 |
Other liabilities | 821 | 880 |
Deferred tax liability | 29 | 29 |
Total liabilities | 3,697 | 3,731 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $.001 par value, 38,000,000 shares authorized; 14,464,220 shares issued and outstanding | 14 | 14 |
Additional paid-in-capital | 47,824 | 47,763 |
Accumulated other comprehensive income | 651 | 709 |
Accumulated losses | (9,919) | (6,933) |
Total EGT stockholders’ equity | 38,570 | 41,553 |
Non-controlling interest | 1 | 1 |
Total stockholders’ equity | 38,571 | 41,554 |
Total liabilities and stockholders’ equity | $ 42,268 | $ 45,285 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 38,000,000 | 38,000,000 |
Common stock, shares issued | 14,464,220 | 14,464,220 |
Common stock, shares outstanding | 14,464,220 | 14,464,220 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss/Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues: | ||||
Gaming operations | $ 689 | $ 4,483 | $ 6,814 | $ 13,407 |
Social gaming platform | 1 | 0 | 1 | 0 |
Total revenues | 690 | 4,483 | 6,815 | 13,407 |
Cost of gaming operations | ||||
Gaming property and equipment depreciation | 167 | 751 | 1,041 | 2,352 |
Casino contract amortization | 0 | 608 | 528 | 1,830 |
Other gaming related intangibles amortization | 0 | 63 | 96 | 189 |
Other operating costs | 542 | 927 | 2,495 | 2,718 |
Cost of social gaming platform | 77 | 0 | 77 | 0 |
Selling, general and administrative expenses | 1,443 | 1,073 | 3,551 | 3,620 |
Gain on disposition of assets | (1,632) | 0 | (1,653) | (24) |
Research and development expenses | 63 | 9 | 548 | 9 |
Depreciation and amortization | 25 | 33 | 79 | 100 |
Total operating costs and expenses | 685 | 3,464 | 6,762 | 10,794 |
Income from operations | 5 | 1,019 | 53 | 2,613 |
Other (expenses)/income: | ||||
Interest expense and finance fees | 0 | 0 | 0 | (3) |
Interest income | 2 | 3 | 7 | 9 |
Foreign currency losses | (34) | (100) | (25) | (129) |
Other | 11 | 4 | 22 | 15 |
Total other (expenses)/income | (21) | (93) | 4 | (108) |
(Loss)/ income from continuing operations before income tax | (16) | 926 | 57 | 2,505 |
Income tax expenses | (106) | (129) | (314) | (166) |
Net (loss)/income from continuing operations | (122) | 797 | (257) | 2,339 |
Net (loss)/income from discontinued operations, net of tax | (622) | 649 | (2,729) | 1,139 |
Net (loss)/income attributable to EGT stockholders | (744) | 1,446 | (2,986) | 3,478 |
Other comprehensive loss: | ||||
Foreign currency translation | (55) | (64) | (58) | (79) |
Total other comprehensive loss, net of tax | (55) | (64) | (58) | (79) |
Comprehensive (loss)/ income attributable to EGT stockholders | $ (799) | $ 1,382 | $ (3,044) | $ 3,399 |
Per share data (basic and diluted): | ||||
(Loss)/earnings (in dollars per share) | $ (0.05) | $ 0.10 | $ (0.21) | $ 0.24 |
(Loss)/earnings from continuing operations (in dollars per share) | (0.01) | 0.06 | (0.02) | 0.16 |
(Loss)/earnings from discontinued operations, net of tax (in dollars per share) | $ (0.04) | $ 0.04 | $ (0.19) | $ 0.08 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 14,464 | 14,460 | 14,462 | 14,456 |
Diluted (in shares) | 14,464 | 14,474 | 14,462 | 14,483 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows (used in)/provided by operating activities: | ||
Net (loss)/income from continuing operations | $ (257) | $ 2,339 |
Adjustments to reconcile net (loss)/income from continuing operations to net cash (used in) / provided by operating activities: | ||
Depreciation of gaming equipment and property and equipment | 1,119 | 2,453 |
Amortization of casino contracts | 528 | 1,830 |
Amortization of intangible assets | 160 | 207 |
Amortization of contract amendment fees | 18 | 81 |
Stock-based compensation expenses | 61 | 67 |
Gain on disposition of assets | (1,653) | (24) |
Changes in operating assets and liabilities: | ||
Accounts receivable and other receivables | 167 | (224) |
Inventories | 55 | 38 |
Prepaid expenses and other current assets | (221) | (48) |
Prepaids, deposits and other assets | (132) | (29) |
Accounts payable | 86 | (5) |
Amounts due from/to related parties | (215) | 4 |
Accrued expenses, customer deposits and others | 222 | (210) |
Income tax payable | 269 | 121 |
Other liabilities | (5) | (12) |
Operating cash provided by continuing operations | 202 | 6,588 |
Operating cash (used in)/provided by discontinued operations | (1,414) | 2,610 |
Net cash (used in)/provided by operating activities | (1,212) | 9,198 |
Cash flows provided by/(used in) investing activities: | ||
Purchases of property and equipment | (43) | (178) |
Purchases of gaming machines and systems | (45) | (562) |
Proceeds from sale of assets | 3,101 | 42 |
Development/purchases of intangibles | (1,443) | 0 |
Investing cash provided by/(used in) continuing operations | 1,570 | (698) |
Investing cash provided by/(used in) discontinued operations | 3,970 | (554) |
Net cash provided by/(used in) investing activities | 5,540 | (1,252) |
Cash flows used in financing activities: | ||
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 12 | 63 |
Increase in cash and cash equivalents | 4,340 | 8,009 |
Cash and cash equivalents at beginning of period | 30,681 | 17,301 |
Cash and cash equivalents at end of period | $ 35,021 | $ 25,301 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | Note 1. Description of Business and Significant Accounting Policies The current 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 participation or revenue-sharing basis with venue owners; and (ii) the development of a social gaming platform designed for the Pan-Asian market. During the reported periods, the Company also operated in the gaming products business, which entailed the design, manufacture and distribution of gaming chips and plaques as well as the distribution of third-party gaming products. On May 11, 2016, the Company sold the principal assets of these operations and has exited this business. All related historical revenues and expenses for these operations have been reclassified as discontinued operations. The accounting policies of these discontinued operations are consistent with the Company’s policies for the accompanying consolidated financial statements. These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2016. The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. A discontinued operation is a component of an entity (or group of components) that either has been disposed of, or that is classified as held for sale, and represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. 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 loss/income and related notes for all periods presented. All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2016, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 34.8 Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. Inventories did not include lower of cost or market (LCM) write-downs as of September 30, 2016 and 2015. The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification or ASC, ASC 360, Property, Plant and Equipment 1.3 Prepaids, deposits and other assets consist primarily of prepaid value-added taxes in foreign countries, prepayment to suppliers and other receivables, rental and utilities and other deposits. Gaming equipment consists primarily of EGMs and systems. Gaming equipment is stated at cost. The Company depreciates new EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 111,000 586,000 870,000 1.9 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, and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 56,000 165,000 171,000 487,000 Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts, internal-use software and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. 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. The Company also capitalizes certain costs related to the development of the social gaming application to be marketed. These costs are capitalized once technological feasibility has been established. 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 a social gaming application, and the social gaming application has reached a defined stage of development such that the software could be used as intended. Such capitalized costs are amortized on the straight-line basis over the estimated useful life of the related assets of four years. Amortization expenses related to casino contracts were approximately $NIL and $ 608 528 63,000 96,000 189,000 Amortization expenses related to internal-use software were approximately $ 65,000 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 future cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the three-month and nine-month periods ended September 30, 2016 and 2015. In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 16. ASC 450, Contingencies, The Company recognizes revenue when all of the following have been satisfied: ⋅ Persuasive evidence of an arrangement exists; ⋅ The price to the customer is fixed and determinable; ⋅ Delivery has occurred and any acceptance terms have been fulfilled; ⋅ No significant contractual obligations remain; and ⋅ Collection is reasonably assured. Gaming Operations Revenue and Promotional Allowances The Company earns recurring gaming revenue from its gaming operations. For gaming operations, the Company earns recurring 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 EGM agreements between the Company and the venue owners and are based on either: a fixed lease fee, which is applicable only for the period of March 1, 2016 through June 30, 2016, or, 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 is received. All slot operations revenues were recognized as earned during the three-month and nine-month periods ended September 30, 2016 and 2015. 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 $NIL and approximately $ 18,000 Gaming Products Sales For the discontinued gaming products business, the Company recognized 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 Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation 40 17 61 67 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 gaming platform are included in research and development expenses. Research and development expenses were approximately $ 63,000 548,000 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 September 30, 2016 and December 31, 2015. 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 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. Basic (loss)/earnings per share are computed by dividing the reported net (loss)/earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive. There was no difference in diluted loss per share from basic loss per share for three-month and nine-month periods ended September 30, 2016 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 loss/income. (US$1 to foreign currency) September 30, 2016 December 31, 2015 Australian dollar 1.31 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 48.26 47.17 Thai baht 34.66 36.07 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2016 2015 2016 2015 Australian dollar 1.32 1.38 1.35 1.31 Hong Kong dollar 7.76 7.75 7.76 7.75 Philippine peso 47.06 46.06 46.95 45.06 Thai baht 34.84 35.20 35.24 33.71 Fair value is defined under ASC 820, Fair Value Measurements and Disclosures · Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. · Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of September 30, 2016, the fair values of financial assets and liabilities approximate carrying values due to their short maturities. 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. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income for the three-month and nine-month periods ended September 30, 2016 and 2015. 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 estimated fair value. The Company recognized $NIL and approximately $ 4,000 9,000 13,000 |
Segments
Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segments During the reported periods, the Company conducted business under two operating segments: (i) gaming operations, which include leasing of its owned EGMs on a fixed lease fee or revenue-sharing basis; and (ii) the development and testing of a social gaming platform. During the reported periods, the Company also operated in the gaming products business, which entailed the design, manufacture and distribution of gaming chips and plaques as well as the distribution of third-party gaming products. On May 11, 2016, the Company sold the principal assets of the gaming products operations and has exited this business. All related historical revenues and expenses for these operations have been reclassified as discontinued operations. The accounting policies of the discontinued operations are consistent with the Company’s policies for the accompanying consolidated financial statements. Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Gaming operations $ 689 $ 4,483 $ 6,814 $ 13,407 Social gaming platform 1 1 Total revenues $ 690 $ 4,483 $ 6,815 $ 13,407 Operating income/(loss): Gaming operations $ 1,612 $ 2,134 $ 4,307 $ 6,341 Social gaming platform (139) (624) Corporate and other operating costs and expenses (1,468) (1,115) (3,630) (3,728) Total operating income $ 5 $ 1,019 $ 53 $ 2,613 Depreciation and amortization: Gaming operations $ 169 $ 1,431 $ 1,679 $ 4,400 Social gaming platform 69 69 Corporate 19 24 61 71 Total depreciation and amortization $ 257 $ 1,455 $ 1,809 $ 4,471 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cambodia $ 319 $ 3,871 $ 5,214 $ 11,442 Philippines 371 612 1,601 1,965 Total $ 690 $ 4,483 $ 6,815 $ 13,407 For the three-month and nine-month periods ended September 30, 2016 and 2015, the largest gaming operations customer represented 46 75 61 75 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Raw materials (1) $ $ 1,742 Work-in-process 80 Finished goods (2) 443 Spare parts 57 113 Total $ 57 $ 2,378 (1) Raw materials decreased from December 31, 2015 to September 30, 2016 due to the Company’s sale of its gaming products operations assets on May 11, 2016, which included raw materials. (2) Finished goods decreased from December 31, 2015 to September 30, 2016 due to the delivery of all outstanding orders for the gaming products division in the six-month period ended June 30, 2016. |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 9 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | Note 4. Prepaid Expenses and Other Current Assets (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Prepayments to suppliers $ 206 $ 75 Prepaid insurances 284 220 Total $ 490 $ 295 |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Receivables (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Trade receivables $ 367 $ 724 Other receivables (1) 1,049 78 1,416 802 Less: allowance for doubtful accounts Net $ 1,416 $ 802 (1) As of September 30, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment
Gaming Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Electronic Gaming Machines EGMs and Systems [Text Block] | Note 6. Gaming Equipment (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) EGMs (1) 3-5 $ 7,369 $ 16,215 Systems 5 1,102 1,335 8,471 17,550 Less: accumulated depreciation (7,786) (14,565) Net $ 685 $ 2,985 (1) EGMs decreased from December 31, 2015 to September 30, 2016 due to the sale of the Company’s EGMs placed in NagaWorld and Leisure World VIP Club in the three-month period ended September 30, 2016. Depreciation expenses of gaming equipment of approximately $ 111,000 586,000 870,000 1.9 |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | Note 7. Property and Equipment (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) Equipment, vehicles, furniture and fixtures (1) 3-10 $ 910 $ 6,290 Land and building 0-5 1,506 1,506 Leasehold improvements (2) 1-6 149 1,400 2,565 9,196 Less: accumulated depreciation (1,323) (3,277) Net $ 1,242 $ 5,919 (1) Equipment, vehicles, furniture and fixtures decreased from December 31, 2015 to September 30, 2016 due to the sale of the principal assets of the gaming products operations on May 11, 2016 and the write-down of the unsold gaming products assets, including office equipment and machinery that could not be utilized in the Company’s other operations as of September 30, 2016. (2) Leasehold improvements decreased from December 31, 2015 to September 30, 2016 due to the write-down of leasehold improvements as of September 30, 2016 related to the discontinued gaming products operations. Depreciation expenses of property and equipment of approximately $ 56,000 165,000 171,000 487,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, including Casino Contracts | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Intangible Assets, including Casino Contracts (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) Gaming operation agreement 4-5 $ 1,166 $ 1,166 Less: accumulated amortization (1,166) (1,070) 96 Goodwill N/A 325 332 Patents 5-6 114 Less: accumulated amortization (104) 10 Trademarks 5-9 26 Less: accumulated amortization (15) 11 Technical know-how 10 261 Less: accumulated amortization (94) 167 Casino contracts 5-6 12,637 Less: accumulated amortization (12,109) 528 Internal-use software (1) 4 1,550 107 Less: accumulated amortization (65) 1,485 107 Net carrying value $ 1,810 $ 1,251 (1) Internal-use software relates to the development of the social gaming platform. Amortization expenses for finite-lived intangible assets of $NIL and approximately $ 671,000 625,000 2.0 Amortization expenses for internal-use software of approximately $ 65,000 (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 332 $ 351 Foreign currency translation adjustment (7) (19) Balance as of September 30/December 31 $ 325 $ 332 |
Prepaids, Deposits and Other As
Prepaids, Deposits and Other Assets | 9 Months Ended |
Sep. 30, 2016 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Prepaid Deposits and Other Assets Noncurrent Disclosure [Text Block] | Note 9. Prepaids, Deposits and Other Assets (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Rentals, utilities and other deposits $ 254 $ 391 Other receivables (1) 976 Prepaid taxes 49 Prepayments to suppliers 34 Total $ 1,279 $ 425 (1) Other receivables as of September 30, 2016 included approximately $ 976,000 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Disclosure [Text Block] | Note 10. Accrued Expenses (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Payroll and related costs (1) $ 151 $ 626 Professional fees 564 339 Withholding tax expenses (2) 725 549 Other tax expenses (3) 294 44 Other expenses 150 197 Total $ 1,884 $ 1,755 (1) Payroll and related costs decreased from December 31, 2015 to September 30, 2016 due to the settlement of an accrued bonus in the three-month period ended June 30, 2016. (2) Withholding tax expenses increased from December 31, 2015 to September 30, 2016 due to the withholding tax payable for the fixed lease income from the NagaWorld operations. (3) Other tax expenses increased from December 31, 2015 to September 30, 2016 due to the VAT payable for the sale of EGMs placed in NagaWorld in the three-month period ended September 30, 2016. |
Other Liabilities
Other Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Note 11. Other Liabilities (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Other tax liabilities $ 798 $ 754 Other 23 126 Total $ 821 $ 880 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 12. Stock-Based Compensation The Company effected a 1-for-4 At the annual shareholders meeting held on September 8, 2008, 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. On July 18, 2016, the Company’s shareholders approved a new 2016 Stock Incentive Plan, the 2016 Plan, which amended and restated the 2008 Plan to bring it in alignment with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited, to which the Company’s equity incentive plans are subject as a result of becoming an indirect majority-owned subsidiary of Melco International Development Limited. The 2016 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 2016 Plan is 1,250,000 100 10 110 Pursuant to shareholder approval of the 2016 Plan, the Company implemented a voluntary stock option exchange program for its employees, directors and certain others, or the Participants. The stock option exchange program had been approved by the Board of Directors on April 29, 2016 and was approved by shareholders on July 18, 2016. Under the terms of the stock option exchange program, the Participants had the opportunity to cancel their existing underwater outstanding stock options (i.e., options with exercise prices that are higher than the current market trading price of the Company’s common stock) in exchange for a replacement option grant for an equal number of shares. The replacement options have a ten-year term from the Board approval date and are subject to a new vesting schedule. They will vest over three years, vesting 50 25 The compensation expense resulted from the exchange program and is recognized in accordance with ASC 718 Compensation-Stock Compensation During the nine-month period ended September 30, 2016, stock options for the purchase of 484,781 1.94 1.31 During the nine-month period ended September 30, 2016, there were no exercises of outstanding stock options. Prior to January 1, 2009, the Company had two stock options plans, the Amended and Restated 1999 Stock Option Plan and the Amended and Restated 1999 Directors’ Stock Option Plan, through which 937,500 18,750 As of September 30, 2016, stock options for the purchase of 70,627 2,813 As of September 30, 2016, stock options for the purchase of 208,630 As of September 30, 2016, stock options for the purchase of 282,070 8.45 3.52 32,000 2,000 484,781 50,000 2.58 Options Weighted Average Remaining Aggregate Number of Weighted Average Contractual Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2015 767,476 $ 7.90 4.28 $ 34 Granted 484,781 1.94 Exercised Forfeited or expired (485,406) 7.57 Outstanding as of September 30, 2016 766,851 4.34 6.99 32 Exercisable as of September 30, 2016 282,070 $ 8.45 2.53 $ 32 Weighted Average Weighted Average Remaining Fair Value at Contractual Life Number of shares Grant Date (in years) Unvested balance as of December 31, 2015 3,750 $ 4.84 0.41 Granted Vested 3,750 4.84 Unvested balance as of September 30, 2016 $ Recognition and Measurement The fair value of each stock-based award to employees and non-employee directors is estimated on the measurement date which generally is the grant date while awards to non-employees and restricted common stock with performance criteria are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends, nor does it expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. Nine-Month Period Ended September 30, 2016 2015 Range of values: Low High Low High Expected volatility 81.78 % 91.82 % 71.85 % 80.91 % Expected dividends Expected term (in years) 3.73 9.74 4.78 8.11 Risk free rate 0.95 % 1.69 % 1.13 % 2.02 % 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 a pro rata basis over the requisite service period for the entire award. Initial accruals of compensation expense are based on the estimated number of shares for which requisite service is expected to be rendered. Estimates are revised if subsequent information indicates that forfeitures will differ from previous estimates, and the cumulative effect on compensation cost of a change in the estimated forfeitures is recognized in the period of the change. For non-employee awards, the Company remeasures compensation cost each period until the service condition is complete and recognizes compensation cost on the straight-line basis over the requisite service period. The Company estimates forfeitures and recognizes compensation cost only for those awards expected to vest assuming all awards would vest and reverse recognized compensation cost for forfeited awards when the awards are actually forfeited. For awards with service conditions and graded vesting that were granted prior to the adoption of ASC 718, the Company estimates the requisite service period and the number of shares expected to vest, and recognizes compensation expense for each tranche on the straight-line basis over the estimated requisite service period. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13. Related Party Transactions Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Related party transactions provided to: Melco Crown (Macau) Limited Sales of gaming products $ $ 9 $ $ 358 MCE Leisure (Philippines) Corporation Sales of gaming products $ $ 129 $ 167 $ 4,460 Melco Crown Entertainment Limited Sales of gaming products $ $ $ $ 212 Oriental Regent Limited Sales of gaming products $ $ 786 $ 164 $ 1,286 Studio City International Holding Limited Sales of gaming products $ $ 2,186 $ $ 2,186 Related party transactions provided by: Melco Services Limited Technical services $ 1 $ $ 2 $ 1 Services Agreement $ 58 $ $ 174 $ Other $ 4 $ 2 $ 11 $ 7 Aberdeen Restaurant Enterprises Limited Other $ 1 $ 4 $ 1 $ 5 Golden Future (Management Services) Limited Other $ 62 $ 63 $ 240 $ 210 Melco International Development Limited Other $ 13 $ $ 13 $ Melco Services Limited is a wholly-owned subsidiary of Melco International Development Limited, which owns 64.8 Melco International Development Limited owns 37.9 90 72.84 60 Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. Melco International Development Limited indirectly owns 86.7 5 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 14. Income Taxes The Company recorded income tax expenses of approximately $ 106,000 129,000 314,000 166,000 686.9 13.9 6.6 The fixed obligation tax arrangement is subject to annual renewal and negotiation. The Company is making efforts to renew the fixed obligation tax arrangement for EGT Cambodia for 2016. The Company is subject to income tax examinations by tax authorities in jurisdictions in which it operates. The Company’s 2013 to 2015 United States 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 | 9 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 15. Discontinued Operations On May 11, 2016, the Company entered into an asset purchase agreement pursuant to which it sold the principal assets dedicated to the design, manufacture and distribution of chips, plaques and layouts for gaming tables to Gaming Partners International Corporation, or GPI. The transaction under the agreement closed on May 11, 2016. Under the terms of the agreement, the Company sold to GPI certain assets of its gaming products business, including fixed assets, raw materials and inventory and intellectual property, for cash consideration of approximately $ 5.9 5.4 530,000 3.2 1.1 260,000 520,000 In addition, GPI will make earn-out payments to the Company. These earn-out payments include: 3 500 15 10 3 30 900,000 The agreement includes customary representations, warranties and covenants by the Company and GPI, including each party’s agreement to indemnify the other against certain claims or losses resulting from certain breaches of representations, warranties or covenants under the agreement and third-party claims arising before and after the close. The asset sale represents our exit from the business of design, manufacture and distribution of chips, plaques and layouts for gaming tables and, as part of the transaction, the Company has agreed with GPI not to engage in the manufacture of gaming chips, plaques, jetons, playing cards and layouts for gaming tables in competition with GPI. In connection with the close of the transaction under the agreement, the Company’s wholly-owned subsidiary, DPD Limited, formerly known as Dolphin Products Limited, and GPI settled and released each other of all claims relating to the civil actions instituted by GPI against DPD in the High Court of the Hong Kong Special Administrative Region in December 2015. Three-Month Nine-Month Periods Ended September 30, Periods Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues from gaming products $ $ 3,788 $ 1,612 $ 10,783 Cost of gaming products 81 (2,834) (2,096) (8,824) Selling, general and administrative expenses (1) (704) (197) (2,133) (585) Gain/(loss) on disposition of assets 1,287 (2) Impairment of assets (2) (1,276) Research and development expenses (37) (105) (107) Depreciation and amortization (20) (37) (58) Other income/(expenses) 1 (51) 19 (68) (Loss)/income from discontinued operations, net of tax $ (622) $ 649 $ (2,729) $ 1,139 (1) The Company incurred approximately $ 487,000 1.0 (2) In the three-month period ended June 30, 2016, the Company recorded a non-cash impairment charge of approximately $ 1.3 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 16. Commitments and Contingencies Legal Matters Gaming Partners International Corporation Litigation On December 21, 2015, Gaming Partners International Corporation, or GPI, commenced a legal action in the High Court of the Hong Kong Special Administrative Region against DPD Limited, formerly known as Dolphin Products Limited, or DPD, the Company’s wholly-owned subsidiary. On May 11, 2016, GPI agreed to irrevocably withdraw, terminate and discontinue the legal action mentioned above. On the same date, the Company agreed to sell substantially all the principal assets of DPD to GPI and to discontinue DPD’s business of designing, manufacturing and distributing gaming chips and plaques and distributing third-party table game products. |
(Loss)_Earnings Per Share
(Loss)/Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 17. (Loss)/Earnings Per Share Three-Month Period Ended September 30, 2016 2015 (Unaudited) (Unaudited) (amounts in thousands, except per) Number of Per Share Number of Per Share share data) Loss Shares Amount Income Shares Amount Basic Net (loss)/income attributable to equity shareholders $ (122) 14,464 $ (0.01) $ 797 14,460 $ 0.06 Effect of dilutive securities Dilutive stock options/restricted shares (1) 14 Diluted Net (loss)/income attributable to equity shareholders plus assumed conversion $ (122) 14,464 $ (0.01) $ 797 14,474 $ 0.06 Nine-Month Period Ended September 30, 2016 2015 (Unaudited) (Unaudited) (amounts in thousands, except per) Number of Per Share Number of Per Share share data) Loss Shares Amount Income Shares Amount Basic Net (loss)/income attributable to equity shareholders $ (257) 14,462 $ (0.02) $ 2,339 14,456 $ 0.16 Effect of dilutive securities Dilutive stock options/restricted shares (1) 27 Diluted Net (loss)/income attributable to equity shareholders plus assumed conversion $ (257) 14,462 $ (0.02) $ 2,339 14,483 $ 0.16 (1) 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 for the three-month and nine-month periods ended September 30, 2016. Three-Month Period Ended September 30, Nine-Month Period Ended September 30, 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Anti-dilutive outstanding stock options excluded from computation of loss/earnings per share 766,851 753,874 766,851 744,381 |
Retirement Plan
Retirement Plan | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 18. Retirement Plan (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 23 $ 29 Service cost 8 Interest cost 1 Actuarial gain and others (15) Balance as of September 30/December 31 $ 23 $ 23 |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 19. Asset Retirement Obligations (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 99 $ 92 Accretion expense 7 Reduction (99) Balance as of September 30/December 31 $ $ 99 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 20. Accumulated Other Comprehensive Income Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances as of January 1, 2015 $ 87 $ 666 $ 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances as of December 31, 2015 90 619 709 Current period other comprehensive loss (58) (58) Balances as of September 30, 2016 (Unaudited) $ 90 $ 561 $ 651 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 21. Subsequent Events On October 31, 2016, the Company sold the gaming machine assets placed in Thansur Bokor in Cambodia to the casino owner for cash proceeds of $ 250 |
Description of Business and S27
Description of Business and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 30, 2016. The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations A discontinued operation is a component of an entity (or group of components) that either has been disposed of, or that is classified as held for sale, and represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. 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 loss/income and related notes for all periods presented. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of September 30, 2016, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 34.8 |
Accounts Receivable And Allowance For Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. Inventories did not include lower of cost or market (LCM) write-downs as of September 30, 2016 and 2015. |
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 or ASC, ASC 360, Property, Plant and Equipment 1.3 |
Prepaid Deposits And Other Assets [Policy Text Block] | Prepaids, Deposits and Other Assets Prepaids, deposits and other assets consist primarily of prepaid value-added taxes in foreign countries, prepayment to suppliers and other receivables, rental and utilities and other deposits. |
Electronic Gaming Machines EGMs and Systems [Policy Text Block] | Gaming Equipment Gaming equipment consists primarily of EGMs and systems. Gaming equipment is stated at cost. The Company depreciates new EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 111,000 586,000 870,000 1.9 |
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, and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 56,000 165,000 171,000 487,000 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets, Including Casino Contracts Intangible assets consist of patents, trademarks, technical know-how, gaming operation agreement, casino contracts, internal-use software and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. 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. The Company also capitalizes certain costs related to the development of the social gaming application to be marketed. These costs are capitalized once technological feasibility has been established. 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 a social gaming application, and the social gaming application has reached a defined stage of development such that the software could be used as intended. Such capitalized costs are amortized on the straight-line basis over the estimated useful life of the related assets of four years. Amortization expenses related to casino contracts were approximately $NIL and $ 608 528 63,000 96,000 189,000 Amortization expenses related to internal-use software were approximately $ 65,000 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 future cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the three-month and nine-month periods ended September 30, 2016 and 2015. |
Litigation And Other Contingencies [Policy Text Block] | Litigation and Other Contingencies In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 16. ASC 450, Contingencies, |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when all of the following have been satisfied: ⋅ Persuasive evidence of an arrangement exists; ⋅ The price to the customer is fixed and determinable; ⋅ Delivery has occurred and any acceptance terms have been fulfilled; ⋅ No significant contractual obligations remain; and ⋅ Collection is reasonably assured. Gaming Operations Revenue and Promotional Allowances The Company earns recurring gaming revenue from its gaming operations. For gaming operations, the Company earns recurring 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 EGM agreements between the Company and the venue owners and are based on either: a fixed lease fee, which is applicable only for the period of March 1, 2016 through June 30, 2016, or, 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 is received. All slot operations revenues were recognized as earned during the three-month and nine-month periods ended September 30, 2016 and 2015. 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 $NIL and approximately $ 18,000 Gaming Products Sales For the discontinued gaming products business, the Company recognized 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 |
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 40 17 61 67 |
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 gaming platform are included in research and development expenses. Research and development expenses were approximately $ 63,000 548,000 |
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 September 30, 2016 and December 31, 2015. |
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 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. |
Earnings Per Share, Policy [Policy Text Block] | (Loss)/Earnings per Share Basic (loss)/earnings per share are computed by dividing the reported net (loss)/earnings by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive. There was no difference in diluted loss per share from basic loss per share for three-month and nine-month periods ended September 30, 2016 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 loss/income. (US$1 to foreign currency) September 30, 2016 December 31, 2015 Australian dollar 1.31 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 48.26 47.17 Thai baht 34.66 36.07 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2016 2015 2016 2015 Australian dollar 1.32 1.38 1.35 1.31 Hong Kong dollar 7.76 7.75 7.76 7.75 Philippine peso 47.06 46.06 46.95 45.06 Thai baht 34.84 35.20 35.24 33.71 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurement Fair value is defined under ASC 820, Fair Value Measurements and Disclosures · Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. · Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of September 30, 2016, the fair values of financial assets and liabilities approximate carrying values due to their short maturities. |
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. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income for the three-month and nine-month periods ended September 30, 2016 and 2015. |
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 estimated fair value. The Company recognized $NIL and approximately $ 4,000 9,000 13,000 |
Description of Business and S28
Description of Business and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of September 30, 2016 and December 31, 2015 and average exchange rates for the three-month and nine-month periods ended September 30, 2016 and 2015. (US$1 to foreign currency) September 30, 2016 December 31, 2015 Australian dollar 1.31 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 48.26 47.17 Thai baht 34.66 36.07 Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (US$1 to foreign currency) 2016 2015 2016 2015 Australian dollar 1.32 1.38 1.35 1.31 Hong Kong dollar 7.76 7.75 7.76 7.75 Philippine peso 47.06 46.06 46.95 45.06 Thai baht 34.84 35.20 35.24 33.71 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 continuing operating segments. Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Gaming operations $ 689 $ 4,483 $ 6,814 $ 13,407 Social gaming platform 1 1 Total revenues $ 690 $ 4,483 $ 6,815 $ 13,407 Operating income/(loss): Gaming operations $ 1,612 $ 2,134 $ 4,307 $ 6,341 Social gaming platform (139) (624) Corporate and other operating costs and expenses (1,468) (1,115) (3,630) (3,728) Total operating income $ 5 $ 1,019 $ 53 $ 2,613 Depreciation and amortization: Gaming operations $ 169 $ 1,431 $ 1,679 $ 4,400 Social gaming platform 69 69 Corporate 19 24 61 71 Total depreciation and amortization $ 257 $ 1,455 $ 1,809 $ 4,471 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Geographic segment revenues of the Company’s continuing operation segments for the three-month and nine-month periods ended September 30, 2016 and 2015 consisted of the following: Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cambodia $ 319 $ 3,871 $ 5,214 $ 11,442 Philippines 371 612 1,601 1,965 Total $ 690 $ 4,483 $ 6,815 $ 13,407 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Raw materials (1) $ $ 1,742 Work-in-process 80 Finished goods (2) 443 Spare parts 57 113 Total $ 57 $ 2,378 (1) Raw materials decreased from December 31, 2015 to September 30, 2016 due to the Company’s sale of its gaming products operations assets on May 11, 2016, which included raw materials. (2) Finished goods decreased from December 31, 2015 to September 30, 2016 due to the delivery of all outstanding orders for the gaming products division in the six-month period ended June 30, 2016. |
Prepaid Expenses and Other Cu31
Prepaid Expenses and Other Current Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule Of Prepaid Expenses And Other Current Assets [Table Text Block] | Prepaid expenses and other current assets consisted of the following: (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Prepayments to suppliers $ 206 $ 75 Prepaid insurances 284 220 Total $ 490 $ 295 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule Of Accounts And Other Receivables [Table Text Block] | (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Trade receivables $ 367 $ 724 Other receivables (1) 1,049 78 1,416 802 Less: allowance for doubtful accounts Net $ 1,416 $ 802 (1) As of September 30, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment (Tables)
Gaming Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Disclosure Of Electronic Gaming Machines EGMs and Systems [Table Text Block] | Gaming equipment is stated at cost. The major categories of gaming equipment and accumulated depreciation consisted of the following: (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) EGMs (1) 3-5 $ 7,369 $ 16,215 Systems 5 1,102 1,335 8,471 17,550 Less: accumulated depreciation (7,786) (14,565) Net $ 685 $ 2,985 (1) EGMs decreased from December 31, 2015 to September 30, 2016 due to the sale of the Company’s EGMs placed in NagaWorld and Leisure World VIP Club in the three-month period ended September 30, 2016. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost. The major categories of property and equipment and accumulated depreciation consisted of the following: (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) Equipment, vehicles, furniture and fixtures (1) 3-10 $ 910 $ 6,290 Land and building 0-5 1,506 1,506 Leasehold improvements (2) 1-6 149 1,400 2,565 9,196 Less: accumulated depreciation (1,323) (3,277) Net $ 1,242 $ 5,919 (1) Equipment, vehicles, furniture and fixtures decreased from December 31, 2015 to September 30, 2016 due to the sale of the principal assets of the gaming products operations on May 11, 2016 and the write-down of the unsold gaming products assets, including office equipment and machinery that could not be utilized in the Company’s other operations as of September 30, 2016. (2) Leasehold improvements decreased from December 31, 2015 to September 30, 2016 due to the write-down of leasehold improvements as of September 30, 2016 related to the discontinued gaming products operations. |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and intangible assets are stated at cost. The major categories of goodwill and intangible assets and accumulated amortization consisted of the following: (amounts in thousands) Useful Life (years) September 30, 2016 December 31, 2015 (Unaudited) Gaming operation agreement 4-5 $ 1,166 $ 1,166 Less: accumulated amortization (1,166) (1,070) 96 Goodwill N/A 325 332 Patents 5-6 114 Less: accumulated amortization (104) 10 Trademarks 5-9 26 Less: accumulated amortization (15) 11 Technical know-how 10 261 Less: accumulated amortization (94) 167 Casino contracts 5-6 12,637 Less: accumulated amortization (12,109) 528 Internal-use software (1) 4 1,550 107 Less: accumulated amortization (65) 1,485 107 Net carrying value $ 1,810 $ 1,251 (1) Internal-use software relates to the development of the social gaming platform. |
Schedule of Goodwill [Table Text Block] | Goodwill movements during the periods consisted of the following: (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 332 $ 351 Foreign currency translation adjustment (7) (19) Balance as of September 30/December 31 $ 325 $ 332 |
Prepaids, Deposits and Other 36
Prepaids, Deposits and Other Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Schedule Of Prepaid Deposits And Other Assets [Table Text Block] | Prepaids, deposits and other assets consisted of the following: (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Rentals, utilities and other deposits $ 254 $ 391 Other receivables (1) 976 Prepaid taxes 49 Prepayments to suppliers 34 Total $ 1,279 $ 425 (1) Other receivables as of September 30, 2016 included approximately $ 976,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Payroll and related costs (1) $ 151 $ 626 Professional fees 564 339 Withholding tax expenses (2) 725 549 Other tax expenses (3) 294 44 Other expenses 150 197 Total $ 1,884 $ 1,755 (1) Payroll and related costs decreased from December 31, 2015 to September 30, 2016 due to the settlement of an accrued bonus in the three-month period ended June 30, 2016. (2) Withholding tax expenses increased from December 31, 2015 to September 30, 2016 due to the withholding tax payable for the fixed lease income from the NagaWorld operations. (3) Other tax expenses increased from December 31, 2015 to September 30, 2016 due to the VAT payable for the sale of EGMs placed in NagaWorld in the three-month period ended September 30, 2016. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: (amounts in thousands) September 30, 2016 December 31, 2015 (Unaudited) Other tax liabilities $ 798 $ 754 Other 23 126 Total $ 821 $ 880 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | A summary of all current and expired plans as of September 30, 2016 and changes during the period then ended are presented in the following table: Options Weighted Average Remaining Aggregate Number of Weighted Average Contractual Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2015 767,476 $ 7.90 4.28 $ 34 Granted 484,781 1.94 Exercised Forfeited or expired (485,406) 7.57 Outstanding as of September 30, 2016 766,851 4.34 6.99 32 Exercisable as of September 30, 2016 282,070 $ 8.45 2.53 $ 32 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted Stock Weighted Average Weighted Average Remaining Fair Value at Contractual Life Number of shares Grant Date (in years) Unvested balance as of December 31, 2015 3,750 $ 4.84 0.41 Granted Vested 3,750 4.84 Unvested balance as of September 30, 2016 $ |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the nine-month periods ended September 30, 2016 and 2015. Nine-Month Period Ended September 30, 2016 2015 Range of values: Low High Low High Expected volatility 81.78 % 91.82 % 71.85 % 80.91 % Expected dividends Expected term (in years) 3.73 9.74 4.78 8.11 Risk free rate 0.95 % 1.69 % 1.13 % 2.02 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule Of Transactions With Related Parties [Table Text Block] | Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: Three-Month Period Nine-Month Period Ended September 30, Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Related party transactions provided to: Melco Crown (Macau) Limited Sales of gaming products $ $ 9 $ $ 358 MCE Leisure (Philippines) Corporation Sales of gaming products $ $ 129 $ 167 $ 4,460 Melco Crown Entertainment Limited Sales of gaming products $ $ $ $ 212 Oriental Regent Limited Sales of gaming products $ $ 786 $ 164 $ 1,286 Studio City International Holding Limited Sales of gaming products $ $ 2,186 $ $ 2,186 Related party transactions provided by: Melco Services Limited Technical services $ 1 $ $ 2 $ 1 Services Agreement $ 58 $ $ 174 $ Other $ 4 $ 2 $ 11 $ 7 Aberdeen Restaurant Enterprises Limited Other $ 1 $ 4 $ 1 $ 5 Golden Future (Management Services) Limited Other $ 62 $ 63 $ 240 $ 210 Melco International Development Limited Other $ 13 $ $ 13 $ |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 loss/income. Three-Month Nine-Month Periods Ended September 30, Periods Ended September 30, (amounts in thousands) 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues from gaming products $ $ 3,788 $ 1,612 $ 10,783 Cost of gaming products 81 (2,834) (2,096) (8,824) Selling, general and administrative expenses (1) (704) (197) (2,133) (585) Gain/(loss) on disposition of assets 1,287 (2) Impairment of assets (2) (1,276) Research and development expenses (37) (105) (107) Depreciation and amortization (20) (37) (58) Other income/(expenses) 1 (51) 19 (68) (Loss)/income from discontinued operations, net of tax $ (622) $ 649 $ (2,729) $ 1,139 (1) The Company incurred approximately $ 487,000 1.0 (2) In the three-month period ended June 30, 2016, the Company recorded a non-cash impairment charge of approximately $ 1.3 |
(Loss)_Earnings Per Share (Tabl
(Loss)/Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of the basic and diluted (loss)/earnings per share from continuing operations consisted of the following: Three-Month Period Ended September 30, 2016 2015 (Unaudited) (Unaudited) (amounts in thousands, except per) Number of Per Share Number of Per Share share data) Loss Shares Amount Income Shares Amount Basic Net (loss)/income attributable to equity shareholders $ (122) 14,464 $ (0.01) $ 797 14,460 $ 0.06 Effect of dilutive securities Dilutive stock options/restricted shares (1) 14 Diluted Net (loss)/income attributable to equity shareholders plus assumed conversion $ (122) 14,464 $ (0.01) $ 797 14,474 $ 0.06 Nine-Month Period Ended September 30, 2016 2015 (Unaudited) (Unaudited) (amounts in thousands, except per) Number of Per Share Number of Per Share share data) Loss Shares Amount Income Shares Amount Basic Net (loss)/income attributable to equity shareholders $ (257) 14,462 $ (0.02) $ 2,339 14,456 $ 0.16 Effect of dilutive securities Dilutive stock options/restricted shares (1) 27 Diluted Net (loss)/income attributable to equity shareholders plus assumed conversion $ (257) 14,462 $ (0.02) $ 2,339 14,483 $ 0.16 (1) 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 for the three-month and nine-month periods ended September 30, 2016. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three-Month Period Ended September 30, Nine-Month Period Ended September 30, 2016 2015 2016 2015 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Anti-dilutive outstanding stock options excluded from computation of loss/earnings per share 766,851 753,874 766,851 744,381 |
Retirement Plan (Tables)
Retirement Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of accrued retirement benefits consisted of the following: (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 23 $ 29 Service cost 8 Interest cost 1 Actuarial gain and others (15) Balance as of September 30/December 31 $ 23 $ 23 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of the Company’s asset retirement obligations are as follows: (amounts in thousands) 2016 2015 (Unaudited) Balance as of January 1 $ 99 $ 92 Accretion expense 7 Reduction (99) Balance as of September 30/December 31 $ $ 99 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The accumulated balances in respect of other comprehensive income consisted of the following: Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances as of January 1, 2015 $ 87 $ 666 $ 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances as of December 31, 2015 90 619 709 Current period other comprehensive loss (58) (58) Balances as of September 30, 2016 (Unaudited) $ 90 $ 561 $ 651 |
Description of Business and S46
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Australian dollar [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 1.31 | 1.31 | 1.37 | ||
Average Foreign Currency Exchange Rate Translation | 1.32 | 1.38 | 1.35 | 1.31 | |
Hong Kong dollar [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 7.75 | 7.75 | 7.75 | ||
Average Foreign Currency Exchange Rate Translation | 7.76 | 7.75 | 7.76 | 7.75 | |
Philippine Peso [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 48.26 | 48.26 | 47.17 | ||
Average Foreign Currency Exchange Rate Translation | 47.06 | 46.06 | 46.95 | 45.06 | |
Thai baht [Member] | |||||
Accounting Polices [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 34.66 | 34.66 | 36.07 | ||
Average Foreign Currency Exchange Rate Translation | 34.84 | 35.20 | 35.24 | 33.71 |
Description of Business and S47
Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounting Polices [Line Items] | |||||
Excess Cash Limits, FDIC Insured Amount | $ 34,800,000 | $ 34,800,000 | |||
Casino contract amortization | 0 | $ 608,000 | 528,000 | $ 1,830,000 | |
Commitment | 0 | 0 | $ 18,000 | ||
Stock-based compensation expenses | 40,000 | 17,000 | 61,000 | 67,000 | |
Product development expenses | 63,000 | 9,000 | $ 548,000 | 9,000 | |
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | ||||
Gaming property and equipment depreciation | 111,000 | 586,000 | $ 870,000 | 1,900,000 | |
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. | ||||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 | $ 1,300,000 | 0 | |
Discontinued Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Asset Retirement Obligation, Cash Paid to Settle | 0 | 4,000 | 9,000 | 13,000 | |
Gaming Operation [Member] | |||||
Accounting Polices [Line Items] | |||||
Cost of Goods Sold, Depreciation | 56,000 | 165,000 | 171,000 | 487,000 | |
Other Gaming Related Intangible Assets [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization | 0 | $ 63,000 | 96,000 | $ 189,000 | |
Internal Used Software [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization | $ 65,000 | $ 65,000 | |||
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 690 | $ 4,483 | $ 6,815 | $ 13,407 |
Operating (loss)/income: | 5 | 1,019 | 53 | 2,613 |
Depreciation and amortization | 257 | 1,455 | 1,809 | 4,471 |
Gaming operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 689 | 4,483 | 6,814 | 13,407 |
Operating (loss)/income: | 1,612 | 2,134 | 4,307 | 6,341 |
Depreciation and amortization | 169 | 1,431 | 1,679 | 4,400 |
Corporate and Other Operating Costs and Expenses [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating (loss)/income: | (1,468) | (1,115) | (3,630) | (3,728) |
Depreciation and amortization | 19 | 24 | 61 | 71 |
Social Casino Gaming Platform [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1 | 0 | 1 | 0 |
Operating (loss)/income: | (139) | 0 | (624) | 0 |
Depreciation and amortization | $ 69 | $ 0 | $ 69 | $ 0 |
Segments (Details 1)
Segments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 690 | $ 4,483 | $ 6,815 | $ 13,407 |
Cambodia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 319 | 3,871 | 5,214 | 11,442 |
Philippines {Member} | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 371 | $ 612 | $ 1,601 | $ 1,965 |
Segments (Details Textual)
Segments (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gaming Operations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk, Percentage | 46.00% | 75.00% | 61.00% | 75.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Inventory [Line Items] | |||
Raw materials | [1] | $ 0 | $ 1,742 |
Work-in-process | 0 | 80 | |
Finished goods | [2] | 0 | 443 |
Spare parts | 57 | 113 | |
Total | $ 57 | $ 2,378 | |
[1] | Raw materials decreased from December 31, 2015 to September 30, 2016 due to the Company’s sale of its gaming products operations assets on May 11, 2016, which included raw materials. | ||
[2] | Finished goods decreased from December 31, 2015 to September 30, 2016 due to the delivery of all outstanding orders for the gaming products division in the six-month period ended June 30, 2016. |
Prepaid Expenses and Other Cu52
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Prepaid expenses and other current assets [Line Items] | ||
Prepayments to suppliers | $ 206 | $ 75 |
Prepaid insurances | 284 | 220 |
Total | $ 490 | $ 295 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Receivables [Line Items] | |||
Trade receivables | $ 367 | $ 724 | |
Other receivables | [1] | 1,049 | 78 |
Accounts Receivable, Gross, Current | 1,416 | 802 | |
Less: allowance for doubtful accounts | 0 | 0 | |
Net | $ 1,416 | $ 802 | |
[1] | As of September 30, 2016, other receivables included approximately $1.0 million in payments due within one year from the sale of the Company’s gaming products operations assets on May 11, 2016. The non-current balance of the future payments receivable is included in Prepaids, Deposits and Other Assets. See Note 9. |
Receivables (Details Textual)
Receivables (Details Textual) $ in Millions | Sep. 30, 2016USD ($) |
E G M [Member] | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Sale of Assets Discontinued operation, Sale Proceeds Due Current | $ 1 |
Gaming Equipment (Details)
Gaming Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | $ 8,471 | $ 17,550 | |
Less: accumulated depreciation | (7,786) | (14,565) | |
Net | 685 | 2,985 | |
EGMs [Member] | |||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | [1] | $ 7,369 | 16,215 |
EGMs [Member] | Minimum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | 3 years | ||
EGMs [Member] | Maximum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | 5 years | ||
Systems [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | 5 years | ||
Gaming equipment, Gross | $ 1,102 | $ 1,335 | |
[1] | EGMs decreased from December 31, 2015 to September 30, 2016 due to the sale of the Company’s EGMs placed in NagaWorld and Leisure World VIP Club in the three-month period ended September 30, 2016. |
Gaming Equipment (Details Textu
Gaming Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gaming Equipment [Line Items] | ||||
Cost Of Services Electronic Gaming Machine Depreciation and Amortization | $ 111,000 | $ 586,000 | $ 870,000 | $ 1,900,000 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | |||
Equipment, vehicles, furniture and fixtures | [1] | $ 910 | $ 6,290 |
Land and building | 1,506 | 1,506 | |
Leasehold improvements | [2] | 149 | 1,400 |
Property, Plant and Equipment, Gross | 2,565 | 9,196 | |
Less: accumulated depreciation | (1,323) | (3,277) | |
Net | $ 1,242 | $ 5,919 | |
Equipment, vehicles, furniture and fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | [1] | 3 years | |
Equipment, vehicles, furniture and fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | [1] | 10 years | |
Land and buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 0 years | ||
Land and buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Leasehold improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | [2] | 1 year | |
Leasehold improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | [2] | 6 years | |
[1] | Equipment, vehicles, furniture and fixtures decreased from December 31, 2015 to September 30, 2016 due to the sale of the principal assets of the gaming products operations on May 11, 2016 and the write-down of the unsold gaming products assets, including office equipment and machinery that could not be utilized in the Company’s other operations as of September 30, 2016. | ||
[2] | Leasehold improvements decreased from December 31, 2015 to September 30, 2016 due to the write-down of leasehold improvements as of September 30, 2016 related to the discontinued gaming products operations. |
Property and Equipment (Detai58
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Gaming Operation [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cost of Goods Sold, Depreciation | $ 56,000 | $ 165,000 | $ 171,000 | $ 487,000 |
Goodwill and Intangible Asset59
Goodwill and Intangible Assets, including Casino Contracts (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Net carrying value | $ 1,810 | $ 1,251 | |
Gaming operation agreement [Member] | |||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Definite-life intangible assets | 1,166 | 1,166 | |
Less: accumulated amortization | (1,166) | (1,070) | |
Net carrying value | $ 0 | 96 | |
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 | $ 325 | 332 | |
Patents [Member] | |||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Definite-life intangible assets | 0 | 114 | |
Less: accumulated amortization | 0 | (104) | |
Net carrying value | $ 0 | 10 | |
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 | $ 0 | 26 | |
Less: accumulated amortization | 0 | (15) | |
Net carrying value | $ 0 | 11 | |
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 | $ 0 | 261 | |
Less: accumulated amortization | 0 | (94) | |
Net carrying value | $ 0 | 167 | |
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 | $ 0 | 12,637 | |
Less: accumulated amortization | 0 | (12,109) | |
Net carrying value | $ 0 | 528 | |
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] | |||
Less: accumulated amortization | [1] | $ (65) | 0 |
Net carrying value | [1] | $ 1,485 | 107 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | [1] | 4 years | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | [1] | $ 1,550 | $ 107 |
[1] | Internal-use software relates to the development of the social gaming platform. |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets, including Casino Contracts (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance at the beginning | $ 332 | $ 351 |
Foreign currency translation adjustment | (7) | (19) |
Balance at the ending | $ 325 | $ 332 |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Internal Used Software [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 65,000 | $ 65,000 | ||
Goodwill and Intangible Assets, including Casino Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 0 | $ 625,000 | $ 671,000 | $ 2,000,000 |
Prepaids, Deposits and Other 62
Prepaids, Deposits and Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 1,279 | $ 425 | |
Rentals, utilities and other deposits [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 254 | 391 | |
Other receivables [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [1] | 976 | 0 |
Prepaid taxes [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 49 | 0 | |
Prepayments to suppliers [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 0 | $ 34 | |
[1] | Other receivables as of September 30, 2016 included approximately $976,000 in payments due in more than one year from the sale of the gaming products operations assets. The current balance of the future payments receivable is included in Receivables. See Note 5. |
Prepaids, Deposits and Other 63
Prepaids, Deposits and Other Assets (Details Textual) | Sep. 30, 2016USD ($) |
E G M [Member] | |
Prepaids, Deposits and Other Assets [Line Items] | |
Sale of Assets Discontinued operation, Sale Proceeds Due Noncurrent | $ 976,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Accrued Expenses [Line Items] | |||
Payroll and related costs | [1] | $ 151 | $ 626 |
Professional fees | 564 | 339 | |
Withholding tax expenses | [2] | 725 | 549 |
Other tax expenses | [3] | 294 | 44 |
Other expenses | 150 | 197 | |
Total | $ 1,884 | $ 1,755 | |
[1] | Payroll and related costs decreased from December 31, 2015 to September 30, 2016 due to the settlement of an accrued bonus in the three-month period ended June 30, 2016. | ||
[2] | Withholding tax expenses increased from December 31, 2015 to September 30, 2016 due to the withholding tax payable for the fixed lease income from the NagaWorld operations. | ||
[3] | Other tax expenses increased from December 31, 2015 to September 30, 2016 due to the VAT payable for the sale of EGMs placed in NagaWorld in the three-month period ended September 30, 2016. |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Other Liabilities [Line Items] | ||
Other tax liabilities | $ 798 | $ 754 |
Other | 23 | 126 |
Total | $ 821 | $ 880 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Stock Based Compensation [Line Items] | ||
Outstanding, Number of Options, Beginning Balance | 767,476 | |
Granted, Number of Options | 484,781 | |
Exercised, Number of Options | 0 | |
Forfeited or expired, Number of Options | (485,406) | |
Outstanding, Number of Options, Ending Balance | 766,851 | 767,476 |
Exercisable, Number of Options | 282,070 | |
Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 7.90 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 1.94 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 7.57 | |
Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 4.34 | $ 7.90 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.45 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 6 years 11 months 26 days | 4 years 3 months 11 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 6 months 11 days | |
Outstanding, Aggregate Intrinsic Value, Balance | $ 34 | |
Granted, Aggregate Intrinsic Value | 0 | |
Exercised, Aggregate Intrinsic Value | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | |
Outstanding, Aggregate Intrinsic Value, Balance | 32 | $ 34 |
Exercisable, Aggregate Intrinsic Value | $ 32 |
Stock-Based Compensation (Det67
Stock-Based Compensation (Details 1) - Restricted Stock [Member] - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Stock Based Compensation [Line Items] | ||
Unvested Balance, Number of Shares, Beginning Balance | 3,750 | |
Granted, Number of Shares | 0 | |
Vested, Number of Shares | 3,750 | |
Unvested Balance, Number of Shares, Ending Balance | 0 | 3,750 |
Unvested Balance, Weighted Average Fair Value at Grant Date, Beginning Balance | $ 4.84 | |
Granted, Weighted Average Fair Value at Grant Date | 0 | |
Vested, Weighted Average Fair Value at Grant Date | 4.84 | |
Unvested Balance, Weighted Average Fair Value at Grant Date, Ending Balance | $ 0 | $ 4.84 |
Unvested balance, Weighted Average Remaining Contractual Life (in years) | 0 years | 4 months 28 days |
Stock-Based Compensation (Det68
Stock-Based Compensation (Details 2) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Based Compensation [Line Items] | ||
Expected volatility - Low | 81.78% | 71.85% |
Expected volatility - High | 91.82% | 80.91% |
Expected dividends - Low | 0.00% | 0.00% |
Expected dividends - High | 0.00% | 0.00% |
Risk free rate - Low | 0.95% | 1.13% |
Risk free rate - High | 1.69% | 2.02% |
Minimum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 3 years 8 months 23 days | 4 years 9 months 11 days |
Maximum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 9 years 8 months 26 days | 8 years 1 month 10 days |
Stock-Based Compensation (Det69
Stock-Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 18, 2016 | Feb. 26, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jan. 01, 2009 | |
Stock Based Compensation [Line Items] | ||||||
Stockholders' Equity, Reverse Stock Split | 1-for-4 | |||||
Replacement of Option Exercise price, term | The replacement options have an exercise price of $1.94, which is based on the higher of: (i) 100% of the fair market value of the Companys common stock on the Board approval date and (ii) 100% of the average fair market value of one share of the Companys common stock for the five business days immediately preceding the Board approval date. | |||||
First Anniversary [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||||
Second And Third Anniversary [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Employee Stock Option [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Granted, Weighted Average Exercise Price, Options (in dollars per share) | $ 1.94 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value, Options | $ 1.31 | |||||
Outstanding, Number of Shares, Options | 766,851 | 766,851 | 767,476 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $ 3.52 | |||||
Exercisable, Aggregate Intrinsic Value, Options | $ 32,000 | $ 32,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 2,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | $ 50,000 | $ 50,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 2 years 6 months 29 days | |||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 8.45 | |||||
Exercisable, Number Of Shares | 282,070 | 282,070 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 484,781 | 484,781 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||
Stock Option Plan 2008 [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,250,000 | 1,250,000 | ||||
Outstanding, Number of Shares, Options | 208,630 | 208,630 | ||||
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 | 70,627 | 70,627 | ||||
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 | 2,813 | 2,813 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 18,750 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Related party transactions provided to: | ||||
Sales of gaming products | $ 690 | $ 4,483 | $ 6,815 | $ 13,407 |
Related party transactions provided by: | ||||
Technical services | 77 | 0 | 77 | 0 |
Melco Crown (Macau) Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 9 | 0 | 358 |
MCE Leisure (Philippines) Corporation [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 129 | 167 | 4,460 |
Melco Crown Entertainment Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 0 | 0 | 212 |
Oriental Regent Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 786 | 164 | 1,286 |
Studio City International Holding Limited [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 2,186 | 0 | 2,186 |
Melco Services Limited [Member] | ||||
Related party transactions provided by: | ||||
Technical services | 1 | 0 | 2 | 1 |
Services Agreement | 58 | 0 | 174 | 0 |
Other | 4 | 2 | 11 | 7 |
Aberdeen Restaurant Enterprises Limited [Member] | ||||
Related party transactions provided by: | ||||
Other | 1 | 4 | 1 | 5 |
Golden Future (Management Services) Ltd [Member] | ||||
Related party transactions provided by: | ||||
Other | 62 | 63 | 240 | 210 |
Melco Services Limited [Member] | ||||
Related party transactions provided by: | ||||
Other | $ 13 | $ 0 | $ 13 | $ 0 |
Related Party Transactions (D71
Related Party Transactions (Details Textual) | Sep. 30, 2016 |
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 | 37.90% |
MCE Leisure (Philippines) Corporation [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 72.84% |
Studio City International Holding Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 60.00% |
Aberdeen Restaurant Enterprises Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 86.70% |
Oriental Regent Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income tax expenses | ||||
Income Tax Expenses | $ 106 | $ 129 | $ 314 | $ 166 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 686.90% | 13.90% | 549.40% | 6.60% |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Discontinued Operations [Line Items] | ||||||
Impairment of assets | $ (1,300) | |||||
(Loss)/income from discontinued operations, net of tax | $ (622) | $ 649 | $ (2,729) | $ 1,139 | ||
D P D Limited [Member] | ||||||
Discontinued Operations [Line Items] | ||||||
Revenues from gaming products | 0 | 3,788 | 1,612 | 10,783 | ||
Cost of gaming products | 81 | (2,834) | (2,096) | (8,824) | ||
Selling, general and administrative expenses | [1] | (704) | (197) | (2,133) | (585) | |
Gain/(loss) on disposition of assets | 0 | 0 | 1,287 | (2) | ||
Impairment of assets | [2] | 0 | 0 | (1,276) | 0 | |
Research and development expenses | 0 | (37) | (105) | (107) | ||
Depreciation and amortization | 0 | (20) | (37) | (58) | ||
Other income/(expenses) | 1 | (51) | 19 | (68) | ||
(Loss)/income from discontinued operations, net of tax | $ (622) | $ 649 | $ (2,729) | $ 1,139 | ||
[1] | The Company incurred approximately $487,000 in expenses related to the termination of the gaming products factory lease in September 2016. For the nine-month period ended September 30, 2016, the Company incurred approximately $1.0 million in legal fees related to the Dolphin Products Limited. | |||||
[2] | In the three-month period ended June 30, 2016, the Company recorded a non-cash impairment charge of approximately $1.3 million associated with the write-down of the remaining gaming operations assets, including certain machinery, leasehold improvements and office equipment, which could not be utilized in its other operations. |
Discontinued Operations (Deta74
Discontinued Operations (Details Textual) - USD ($) | May 11, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2016 |
Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 1,300,000 | |||
Maximum Earn out Payment based on revenue | $ 900,000 | |||
Disposal Group, Including Discontinued Operation, Rental Income | $ 520,000 | |||
Legal Fees | $ 1,000,000 | |||
Selling, General and Administrative Expenses [Member] | ||||
Discontinued Operations [Line Items] | ||||
Business Exit Costs | $ 487,000 | |||
Next Five Year [Member] | ||||
Discontinued Operations [Line Items] | ||||
Earn out Payment, Based On Revenue , percentage | 3.00% | |||
Maximum Earn out Payment based on revenue | $ 500,000,000 | |||
Related party casinos [Member] | ||||
Discontinued Operations [Line Items] | ||||
Earn out Payment, Based On Revenue , percentage | 15.00% | |||
Maximum Earn out Payment based on revenue | $ 10,000,000 | |||
Related party casinos [Member] | Next Five Year [Member] | ||||
Discontinued Operations [Line Items] | ||||
Earn out Payment, Based On Revenue , percentage | 3.00% | |||
Maximum Earn out Payment based on revenue | $ 30,000,000 | |||
G P I [Member] | ||||
Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | 5,900,000 | |||
Purchase price of Assets ,Disposal Group Including Discontinued Operation | 5,400,000 | |||
Restrictive convent cost | 530,000 | |||
payment of purchase price at Installment. | 3,200,000 | |||
First Anniversaries purchase price cost | 1,100,000 | |||
Disposal Group, Including Discontinued Operation, Rental Income | $ 260,000 |
(Loss)_Earnings Per Share (Deta
(Loss)/Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Basic | |||||
Net (loss)/income attributable to equity shareholders | $ (122) | $ 797 | $ (257) | $ 2,339 | |
Net (loss)/income attributable to equity shareholders - Number of Shares | 14,464 | 14,460 | 14,462 | 14,456 | |
Net (loss)/income attributable to equity shareholders, Per share Amount (in dollars per share) | $ (0.01) | $ 0.06 | $ (0.02) | $ 0.16 | |
Effect of dilutive securities | |||||
Dilutive stock options/restricted shares | [1] | 0 | 14 | 0 | 27 |
Diluted | |||||
Net (loss)/income attributable to equity shareholders plus assumed conversion | $ (122) | $ 797 | $ (257) | $ 2,339 | |
Net (loss)/income attributable to equity shareholders plus assumed conversion - Number of shares | 14,464 | 14,474 | 14,462 | 14,483 | |
Net (loss)/income attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | $ (0.01) | $ 0.06 | $ (0.02) | $ 0.16 | |
[1] | 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 for the three-month and nine-month periods ended September 30, 2016. |
(Loss)_Earnings Per Share (De76
(Loss)/Earnings Per Share (Details 1) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive outstanding stock options excluded from computation of loss/earnings per share | 766,851 | 753,874 | 766,851 | 744,381 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Balance as of January 1 | $ 23 | $ 29 |
Service cost | 0 | 8 |
Interest cost | 0 | 1 |
Actuarial gain and others | 0 | (15) |
Balance as of September 30/December 31 | $ 23 | $ 23 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Balance as of January 1 | $ 99 | $ 92 |
Accretion expense | 0 | 7 |
Reduction | (99) | 0 |
Balance as of September 30/December 31 | $ 0 | $ 99 |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Defined Benefit Pension Plan, Beginning Balance | $ 90 | $ 87 |
Defined Benefit Pension Plan, Current period other comprehensive income/(loss) | 0 | 3 |
Defined Benefit Pension Plan, Ending Balance | 90 | 90 |
Foreign Currency Translation, Beginning Balance | 619 | 666 |
Foreign Currency Translation, Current period other comprehensive income/(loss) | (58) | (47) |
Foreign Currency Translation, Ending Balance | 561 | 619 |
Accumulated Other Comprehensive Income, Beginning Balance | 709 | 753 |
Accumulated Other Comprehensive Income, Current period other comprehensive income/(loss) | (58) | (44) |
Accumulated Other Comprehensive Income, Ending Balance | $ 651 | $ 709 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | |
Oct. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Subsequent Event [Line Items] | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 3,101,000 | $ 42,000 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Proceeds from Sale of Property, Plant, and Equipment | $ 250,000 |