Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Entertainment Gaming Asia Inc. | ||
Entity Central Index Key | 1,004,673 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 8,396,323 | ||
Trading Symbol | EGT | ||
Entity Common Stock, Shares Outstanding | 14,464,220 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 33,599 | $ 30,681 | [1] |
Accounts receivable, net | 128 | 724 | |
Amounts due from related parties | 0 | 257 | |
Other receivables | 1,051 | 78 | |
Inventories | 21 | 2,378 | |
Prepaid expenses and other current assets | 235 | 295 | |
Contract amendment fees | 0 | 18 | |
Total current assets | 35,034 | 34,431 | |
Gaming equipment, net | 389 | 2,985 | |
Casino contracts | 0 | 528 | |
Property and equipment, net | 915 | 5,919 | |
Goodwill | 315 | 332 | |
Intangible assets, net | 1,512 | 391 | |
Deferred tax assets | 59 | 274 | |
Prepayments, deposits and other assets | 1,204 | 425 | |
Total assets | 39,428 | 45,285 | |
Current liabilities: | |||
Accounts payable | 79 | 288 | |
Amounts due to related parties | 160 | 239 | |
Accrued expenses | 1,118 | 1,755 | |
Income tax payable | 161 | 2 | |
Deferred revenue | 2 | 9 | |
Customer deposits and other current liabilities | 54 | 529 | |
Total current liabilities | 1,574 | 2,822 | |
Other liabilities | 441 | 880 | |
Deferred tax liabilities | 5,654 | 29 | |
Total liabilities | 7,669 | 3,731 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock, $.001 par value, 250,000,000 (2015: 38,000,000) shares authorized; 14,464,220 (2015: 14,464,220) shares issued and outstanding | 14 | 14 | |
Additional paid-in-capital | 47,827 | 47,763 | |
Accumulated other comprehensive income | 585 | 709 | |
Accumulated losses | (16,668) | (6,933) | |
Total EGT stockholders' equity | 31,758 | 41,553 | |
Non-controlling interest | 1 | 1 | |
Total stockholder's equity | 31,759 | 41,554 | |
Total liabilities and stockholders' equity | $ 39,428 | $ 45,285 | |
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 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 | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | ||
Revenues: | ||||||
Gaming operations | $ 1,951 | $ 2,641 | $ 2,974 | |||
Social gaming | 8 | 0 | 0 | |||
Total revenues | 1,959 | 2,641 | 2,974 | |||
Cost of gaming operations | ||||||
Gaming property and equipment depreciation | 351 | 452 | 430 | |||
Casino contract amortization | 187 | 387 | 396 | |||
Other gaming related intangibles amortization | 96 | 252 | 252 | |||
Other operating costs | 762 | 696 | 741 | |||
Cost of social gaming | 197 | 0 | 0 | |||
Selling, general and administrative expenses | [2] | 4,710 | 4,098 | 4,063 | ||
Gain on disposition of assets | (369) | 0 | (11) | |||
Research and development expenses | 887 | 272 | 0 | |||
Depreciation and amortization | 88 | 93 | 60 | |||
Total operating costs and expenses | 6,909 | 6,250 | 5,931 | |||
Loss from continuing operations | (4,950) | (3,609) | (2,957) | |||
Other (expenses)/income: | ||||||
Interest expense and finance fees | 0 | (3) | (4) | |||
Interest income | 29 | 13 | 2 | |||
Foreign currency losses | (86) | (147) | (61) | |||
Other | 20 | 15 | 15 | |||
Total other expenses | (37) | (122) | (48) | |||
Loss from continuing operations before income tax | (4,987) | (3,731) | (3,005) | |||
Income tax (expense)/benefit | (357) | (217) | 41 | |||
Net loss from continuing operations | (5,344) | (3,948) | (2,964) | |||
Net (loss)/income from discontinued operations, net of tax | [3] | (4,391) | 4,768 | 133 | ||
Net (loss)/income attributable to EGT stockholders | (9,735) | 820 | (2,831) | |||
Other comprehensive (loss)/income: | ||||||
Defined benefit pension plan | (5) | 3 | (12) | |||
Foreign currency translation | (119) | (47) | 23 | |||
Total other comprehensive (loss)/income, net of tax | (124) | (44) | 11 | |||
Comprehensive (loss)/income attributable to EGT stockholders | $ (9,859) | $ 776 | $ (2,820) | |||
Per share data (basic and diluted) | ||||||
(Loss)/earnings (in dollars per share) | $ (0.67) | $ 0.06 | $ (0.35) | |||
Loss from continuing operations (in dollars per share) | (0.37) | (0.27) | (0.36) | |||
(Loss)/earnings from discontinued operations, net of tax (in dollars per share) | $ (0.30) | $ 0.33 | $ 0.01 | |||
Weighted average common shares outstanding | ||||||
Basic and diluted | 14,464 | 14,457 | 8,188 | |||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. | |||||
[2] | Amounts for the years ended December 31, 2016, 2015 and 2014 included related party services fees of approximately $425,000, $226,000 and $4,000, respectively. | |||||
[3] | Amounts for the years ended December 31, 2016, 2015 and 2014 included related party sales of approximately $167,000, $7.8 million and $3.9 million and related party services fees of approximately $240,000, $281,000 and $276,000, respectively. |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Loss / Income [Parenthetical] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations, Disposed of by Sale [Member] | |||
Revenue from Related Parties | $ 167,000 | $ 7,800 | $ 3,900 |
Related Party Transaction, Expenses from Transactions with Related Party | 240,000 | 281,000 | 276,000 |
Selling, General and Administrative Expenses [Member] | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 425,000 | $ 226,000 | $ 4,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings/(Accumulated losses) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Non-controlling Interest [Member] | |
Balances at Dec. 31, 2013 | $ 29,007 | $ 7 | $ 33,179 | $ (4,922) | $ 742 | $ 1 | |
Balances (in shares) at Dec. 31, 2013 | 7,507,302 | ||||||
Net income (loss) | (2,831) | [1] | (2,831) | ||||
Other comprehensive loss | 11 | 11 | |||||
Issuance of restricted stock | 0 | $ 0 | 0 | ||||
Issuance of restricted stock (in shares) | 19,375 | ||||||
Right Offering | 14,348 | $ 7 | 14,341 | ||||
Right Offering (in shares) | 6,944,418 | ||||||
Stock-based compensation | 160 | 160 | |||||
Balances at Dec. 31, 2014 | 40,695 | $ 14 | 47,680 | (7,753) | 753 | 1 | |
Balances (in shares) at Dec. 31, 2014 | 14,471,095 | ||||||
Net income (loss) | 820 | [1] | 820 | ||||
Other comprehensive loss | (44) | (44) | |||||
Stock-based compensation | 83 | 83 | |||||
Retirement of unvested restricted stock | 0 | $ 0 | 0 | ||||
Retirement of unvested restricted stock (in shares) | (6,875) | ||||||
Balances at Dec. 31, 2015 | 41,554 | $ 14 | 47,763 | (6,933) | 709 | 1 | |
Balances (in shares) at Dec. 31, 2015 | 14,464,220 | ||||||
Net income (loss) | (9,735) | (9,735) | |||||
Other comprehensive loss | (124) | (124) | |||||
Stock-based compensation | 64 | 64 | |||||
Balances at Dec. 31, 2016 | $ 31,759 | $ 14 | $ 47,827 | $ (16,668) | $ 585 | $ 1 | |
Balances (in shares) at Dec. 31, 2016 | 14,464,220 | ||||||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Cash flows (used in)/provided by operating activities: | ||||||
Net loss from continuing operation | $ (5,344) | $ (3,948) | [1] | $ (2,964) | [1] | |
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities: | ||||||
Depreciation of gaming equipment and property and equipment | 439 | 545 | [1] | 490 | [1] | |
Foreign currency losses | 0 | 3 | [1] | 0 | [1] | |
Amortization of casino contracts | 187 | 387 | [1] | 396 | [1] | |
Gain on disposition of assets | (369) | 0 | [1] | (11) | [1] | |
Amortization of intangible assets | 257 | 252 | [1] | 252 | [1] | |
Deferred income tax | 210 | (145) | [1] | (234) | [1] | |
Stock-based compensation expense | 64 | 83 | [1] | 160 | [1] | |
Write-back of provision for pension/retirement benefits | (5) | (5) | [1] | (3) | [1] | |
Write-off of tax receivables | 0 | 32 | [1] | 579 | [1] | |
Changes in operating assets and liabilities: | ||||||
Accounts receivable and other receivables | 221 | 47 | [1] | 579 | [1] | |
Inventories | 23 | 59 | [1] | (78) | [1] | |
Prepaid expenses and other current assets | 2 | (182) | [1] | 3 | [1] | |
Prepayments, deposits and other assets | (136) | 300 | [1] | (36) | [1] | |
Accounts payable | (4) | (134) | [1] | 120 | [1] | |
Amounts due from/to related parties | (148) | 218 | [1] | 0 | [1] | |
Accrued expenses and other liabilities | (66) | (124) | [1] | (562) | [1] | |
Customer deposits and other current liabilities | 24 | 0 | [1] | (2) | [1] | |
Income tax payable | 159 | 2 | [1] | 0 | [1] | |
Deferred revenue | 2 | 0 | [1] | 0 | [1] | |
Operating cash used in continuing operations | (4,484) | (2,610) | [1] | (1,311) | [1] | |
Operating cash provided by discontinued operations | 899 | 17,264 | [1] | 2,197 | [1] | |
Net cash (used in)/provided by operating activities | (3,585) | 14,654 | [1] | 886 | [1] | |
Cash flows provided by/(used in) investing activities: | ||||||
Purchases of property and equipment | (59) | (45) | [1] | (93) | [1] | |
Purchases of gaming machines and systems | (45) | (555) | [1] | (257) | [1] | |
Proceeds from sale of assets | 758 | 7 | [1] | 11 | [1] | |
Development/purchase of intangibles | (1,566) | (107) | [1] | 0 | [1] | |
Investing cash used in continuing operations | (912) | (700) | [1] | (339) | [1] | |
Investing cash provided by/(used in) discontinued operations | 7,445 | (690) | [1] | (2,885) | [1] | |
Net cash provided by/(used in) investing activities | 6,533 | (1,390) | [1] | (3,224) | [1] | |
Cash flows provided by financing activities: | ||||||
Rights offering | 0 | 0 | [1] | 14,348 | [1] | |
Net cash provided by financing activities | 0 | 0 | [1] | 14,348 | [1] | |
Effect of exchange rate changes on cash | (30) | 116 | [1] | (10) | [1] | |
Increase in cash and cash equivalents | 2,918 | 13,380 | [1] | 12,000 | [1] | |
Cash and cash equivalents at beginning of year | [1] | 30,681 | 17,301 | 5,301 | ||
Cash and cash equivalents at end of year | $ 33,599 | $ 30,681 | [1] | $ 17,301 | [1] | |
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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 gaming locations in the Philippines on a revenue-sharing (participation) basis with venue owners; and (ii) the development and testing of a social gaming platform designed for the Pan-Asian markets. During the reported periods, the Company’s business activities included owning and leasing EGMs on a revenue-sharing (participation) and fixed-lease basis operations in Cambodia. These leasing contracts were terminated and the related assets were sold during the year ended December 31, 2016. Also, the Company operated 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 the Cambodia gaming operations and the gaming products business 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. In addition, the Company developed and operated a small regional gaming casino Dreamworld Casino (Pailin), which was open from May 2012 to June 2014. During the year ended December 31, 2014, the Company sold 100 These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States. The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, long-term contracts, reward points redemption breakage rate, 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 years presented. All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of December 31, 2016, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 33.3 Accounts receivable are stated at face value less any allowance for doubtful accounts. Allowance for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectible amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationships and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. There were no lower of cost or market (LCM) write-down for the years ended December 31, 2016 and 2015. The Company accounts for impairment of long-lived assets in accordance with Accounting Standards Codification (ASC) 360, Property, Plant and Equipment Impairment charges of approximately $ 1.3 Impairment charges of approximately $ 2.6 Impairment charges of approximately $ 142,000 Prepayments, Deposits and Other Assets Prepayments, deposits and other assets consist primarily of prepayments 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 gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 341,000 441,000 420,000 620,000 2.0 2.6 Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to ten years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 10,000 11,000 10,000 Depreciation of property and equipment of approximately $ 666,000 1.8 1.6 Intangible assets consist of patents, trademarks, technical know-how, a gaming operation agreement, casino contracts, capitalized software costs and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria meet for capitalization are expensed to research and development expenses as incurred. Management has committed the resources of developing social gaming application, and it is probable that the social gaming application will be completed and the software will be used as intended. Such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts for the Philippines gaming operations were approximately $ 187,000 387,000 396,000 96,000 252,000 252,000 Amortization expenses related to internal-use software were approximately $ 161,000 Amortization expenses related to casino contracts for the discontinued Cambodia gaming operations were approximately $ 341,000 2.0 2.0 9,000 26,000 26,000 10,000 24,000 24,000 The Company measures and tests finite-lived intangibles for impairment when there are indicators of impairment in accordance with ASC 360-10-05, Property, Plant and Equipment The Company measures and tests goodwill for impairment, at least annually in accordance with ASC 350-10-05, Intangibles Goodwill and Other The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. If determined to be necessary, the two-step impairment test shall be used to identify potential goodwill impairment. Impairment testing for goodwill and other intangibles requires judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the years ended December 31, 2016, 2015 and 2014. For the year ended December 31, 2016, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation. In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 17 ASC 450, Contingencies, The Company recognizes revenue when all of the following have been satisfied: · Persuasive evidence of an arrangement exists; · The price to the customer is fixed and determinable; · Delivery has occurred and any acceptance terms have been fulfilled; · No significant contractual obligations remain; and · Collection is reasonably assured. Gaming Operations Revenue 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 for one of the venues only for the period of March 1, 2016 through June 30, 2016 which has now been reclassified as discontinued operations, or, the Company’s share of net winnings and reimbursement of expenses and commitment fees. Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when payment is received. All gaming operations revenues were recognized as earned during the years ended December 31, 2016, 2015 and 2014. Commitment fees paid to the venue operators relating to contract amendments which are not recoverable from daily net win are capitalized as assets and amortized as a reduction of revenue over the term of the amended contracts. The Company had no commitment fee balances related to contract amendments as of December 31, 2016 and December 31, 2015. Social Gaming The Company is currently testing a social gaming platform and application to derive revenue from the in-game sale of virtual coins that allows players to extend play time or accelerate their progress. The Company recognizes the sale of virtual coins over the estimated average playing period of paying players. On a quarterly basis, the Company determines the estimated average playing period for paying players by game beginning at the time of a paying player’s first purchase in that game and ending on a date when that paying player is no longer playing the game. To determine which players are inactive, the Company analyzes the dates that each paying player last logged into that game. The Company earns revenue through certain mobile platforms, including iOS and Android, and recognizes online game revenue based on the gross amount paid by the player because the Company is the primary obligor and the Company has the contractual right to determine the price to be paid by the player. The Company records the related platform and payment processing fees as cost of revenue in the period incurred. 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 Stock-Based Compensation Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation 64,000 83,000 160,000 Employee Defined Contribution Plan The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions for continuing operations, which were expensed as incurred, were approximately $ 18,000 22,000 27,000 Research and development expenses are expensed as incurred. Employee-related costs associated with research and development and certain costs associated with the development of the social gaming platform and applications are included in research and development expenses. Research and development expenses for continuing operations were approximately $ 887 272 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 exist: ⋅ Ownership is transferred to the lessee by the end of the lease term; ⋅ There is a bargain purchase option; ⋅ The lease term is at least 75 ⋅ The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of December 31, 2016 or 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 On December 31, 2010, the Company effected a Quasi-Reorganization. As of that date, the Company’s deferred taxes were reported in conformity with applicable income tax accounting standards described above, net of applicable valuation allowances. Deferred tax assets and liabilities were recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities with corresponding valuation allowances as appropriate. In accordance with the Quasi-Reorganization requirements, pre-existing tax benefits realized subsequent to the Quasi-Reorganization are recorded directly in equity. Basic (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 year. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive due to the stock options’ exercise price exceeding the Company’s stock price as of December 31, 2016. There were no differences in diluted loss per share from basic loss from continuing operations per share for the years ended December 31, 2016, 2015 and 2014 as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. The functional currency of the Company’s international subsidiaries, except for its operations in Cambodia whose functional currency is also U.S. dollars, is generally the local currency. For these subsidiaries, the Company translates the assets and liabilities at exchange rates in effect at the balance sheet date and income and expense accounts at average exchange rates during the year. Resulting currency translation adjustments are recorded directly to accumulated other comprehensive income within stockholders’ equity. Gains and losses resulting from transactions in non-functional currencies are recorded in the consolidated statements of comprehensive loss/income. (US$1 to foreign currency) December 31, 2016 December 31, 2015 Australian dollar 1.39 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 49.81 47.17 Thai baht 35.26 36.07 Year Ended December 31, (US$1 to foreign currency) 2016 2015 2014 Australian dollar 1.35 1.33 1.11 Hong Kong dollar 7.76 7.75 7.75 Philippine peso 47.49 45.50 44.47 Thai baht 35.26 34.25 32.54 Fair value is defined under ASC 820, Fair Value Measurements and Disclosures · Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. · Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of December 31, 2016, the fair values of financial assets and liabilities approximate carrying values due to the short maturities of these items. The Company provides pension benefits to all regular full-time employees in the Philippines through a defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and salary. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability. The accounting guidance related to employers’ accounting for defined benefit pension plan requires recognition in the balance sheet of the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs or credits in other comprehensive loss/income. The Company recorded a decrease of approximately $ 5,000 3,000 12,000 Asset retirement obligations are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. Recognition of a liability for an asset retirement obligation is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the asset retirement obligation is settled for other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. The Company records all asset retirement obligations for which it has legal obligations to remove all installation work and reinstate the manufacturing facilities to its original state at its estimated fair value. For the years ended December 31, 2016, 2015 and 2014, the Company had no asset retirement obligation operating costs related to accretion of the liabilities. The Company offers a loyalty program for its social casino gaming platform which enables players to redeem accumulated points for reward items. Players can redeem experience points from game time play for incentives, for example, food and beverage, rooms and entertainment at casino resort properties. The Company accrues for loyalty program points expected to be redeemed for free goods and services as marketing expense. The accruals are based on management’s estimates and assumptions regarding the estimated costs of providing those benefits and the actual redemption rates in each country, less an estimate for points not expected to be redeemed. Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which intends to improve the recognition and measurement of financial instruments. The ASU will be effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Accounting for Leases, which changes the accounting for leases, including a requirement to record all leases on the balance sheet as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations, which intends to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09, “Revenue from Contracts with Customers”. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments, which attempts to reduce the existing diversity in practice with respect to reporting the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company on January 1, 2018. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09, Revenue from Contracts with Customers, including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, IntangiblesGoodwill and Other Simplifying the Test for Goodwill Impairment, which eliminates Step two from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for an entity’s annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the impact of the adoption of this ASU to be material to its consolidated financial statements |
Segments
Segments | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 2. Segments The Company presently conducts business under two operating segments: (i) gaming operations, which include the leasing of its owned EGMs on a revenue-sharing (participation) basis; and (ii) the development and testing of a social gaming platform designed for the Pan-Asian markets. The chief operating decision maker reviews its operations by these two operating segments. During the reported periods, the Company’s business activities included gaming operations in Cambodia involving the leasing of its owned EGMs on both a fixed lease and revenue-sharing basis and operating a small casino. In addition, the Company also operated 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. In June 2014, the Company ceased operation of its casino in Cambodia and, in a series of transactions during the year ended December 31, 2016, the Company sold all the assets associated with the Cambodia gaming operations. As of December 31, 2016, the Company had exited its Cambodia gaming operations. 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 the Cambodia gaming and casino operations and gaming products operations have been reclassified as discontinued operations. The accounting policies of these discontinued operations are consistent with the Company’s policies for the accompanying consolidated financial statements. Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Revenues: Gaming operations $ 1,951 $ 2,641 $ 2,974 Social gaming 8 Total revenues $ 1,959 $ 2,641 $ 2,974 Operating (loss)/income: Gaming operations operating income $ 923 $ 856 $ 1,166 Social gaming operating loss (1,077) (272) Corporate and other operating costs and expenses (4,796) (4,193) (4,123) Total operating loss $ (4,950) $ (3,609) $ (2,957) (1) Amounts for years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. December 31, (amounts in thousands) 2016 2015 Identifiable assets: Gaming operations $ 5,362 $ 22,763 Social gaming 1,584 138 Corporate 32,482 22,384 Total identifiable assets $ 39,428 $ 45,285 December 31, (amounts in thousands) 2016 2015 Goodwill: Gaming operations $ 315 $ 332 Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Capital expenditures: Gaming operations $ 45 $ 555 $ 284 Social gaming 1,625 150 Corporate 2 66 Total capital expenditures $ 1,670 $ 707 $ 350 Depreciation and amortization: Gaming operations $ 634 $ 1,091 $ 1,078 Social gaming 173 Corporate 76 93 60 Total depreciation and amortization $ 883 $ 1,184 $ 1,138 Interest expenses and finance fees: Corporate $ $ 3 $ 4 Income tax expense/(benefit): Gaming operations $ 442 $ 236 $ (9) Corporate (85) (19) (32) Total income tax expense/(benefit) $ 357 $ 217 $ (41) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. Years Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Philippines $ 1,951 $ 2,641 $ 2,974 Others 8 Total $ 1,959 $ 2,641 $ 2,974 For the years ended December 31, 2016, 2015 and 2014, the largest customer in the gaming operations segment represented 49 45 42 (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. Long-lived assets, goodwill and intangible assets identified by geographic segments consisted of the following: December 31, (amounts in thousands) 2016 2015 Cambodia $ 798 $ 3,517 Hong Kong 1,874 5,278 Philippines 398 1,295 United States 61 65 Total $ 3,131 $ 10,155 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories December 31, (amounts in thousands) 2016 2015 Raw materials (1) $ $ 1,742 Work-in-process 80 Finished goods (2) 443 Spare parts 21 113 Total $ 21 $ 2,378 (1) Raw materials decreased from December 31, 2015 to December 31, 2016 due to the Company’s sale of its gaming products operations assets, which included raw materials, on May 11, 2016. (2) Finished goods decreased from December 31, 2015 to December 31, 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 | 12 Months Ended |
Dec. 31, 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 December 31, (amounts in thousands) 2016 2015 Prepayments $ 49 $ 292 Prepaid insurance 186 3 Total $ 235 $ 295 |
Receivables
Receivables | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. Receivables December 31, (amounts in thousands) 2016 2015 Accounts receivable $ 135 $ 724 Other receivables (1) 1,051 78 1,186 802 Less: allowance for doubtful accounts (7) Net $ 1,179 $ 802 (1) As of December 31, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment
Gaming Equipment | 12 Months Ended |
Dec. 31, 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 Useful Life December 31, (amounts in thousands) (years) 2016 2015 EGMs (1) 3-5 $ 3,722 $ 16,215 Systems 5 979 1,335 4,701 17,550 Less: accumulated depreciation (4,312) (14,565) Net carrying value $ 389 $ 2,985 (1) EGMs decreased from December 31, 2015 to December 31, 2016 primarily due to the sale of the Company’s EGMs and gaming equipment in Cambodia, including EGMs placed in NagaWorld, Dreamworld Club (Poipet) and Thanur Bokor, and the sale of EGMs placed in Leisure World VIP Club in the Philippines during the year ended December 31, 2016. Depreciation expense of gaming equipment of approximately $ 341,000 441,000 420,000 Depreciation expense of gaming equipment of approximately $ 620,000 2.0 2.6 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | Note 7. Property and Equipment Useful Life December 31, (amounts in thousands) (years) 2016 2015 Equipment, vehicles, furniture and fixtures (1) 3-10 $ 606 $ 6,290 Land and building 0-5 797 1,506 Leasehold improvements (2) 1-6 45 1,400 1,448 9,196 Less: accumulated depreciation (533) (3,277) Net carrying value $ 915 $ 5,919 (1) Equipment, vehicles, furniture and fixtures decreased from December 31, 2015 to December 31, 2016 due to the sale of the principal assets of the discontinued gaming products and gaming operations on May 11, 2016 and December 21, 2016, respectively, 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. (2) Leasehold improvements decreased from December 31, 2015 to December 31, 2016 due to the write-down of leasehold improvements as of December 31, 2016 related to the discontinued gaming products operations. Depreciation expense of property and equipment of approximately $ 10,000 11,000 10,000 Depreciation expense of property and equipment of approximately $ 666,000 1.8 1.6 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, including Casino Contracts | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. Goodwill and Intangible Assets, including Casino Contracts Useful Life December 31, (amounts in thousands) (years) 2016 2015 Gaming operation agreement 4-5 $ 1,166 $ 1,166 Less: accumulated amortization (1,166) (1,070) 96 Goodwill N/A 315 332 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 1,942 12,637 Less: accumulated amortization (1,942) (12,109) 528 Internaluse software (1) 4 1,673 107 Less: accumulated amortization (161) 1,512 107 Net carrying value $ 1,827 $ 1,251 (1) Internal-use software relates to the development of the social gaming platform and applications. Amortization expense for finite-lived intangible assets of approximately $ 283,000 639,000 648,000 Amortization expense for finite-lived intangible assets of approximately $ 360,000 2.1 2.1 Amortization expense for internal-use software of approximately $ 161,000 (amounts in thousands) 2016 2015 Balance as of January 1 $ 332 $ 351 Foreign currency translation adjustment (17) (19) Balance as of December 31 $ 315 $ 332 (amounts in thousands) 2017 403 2018 418 2019 418 2020 257 2021 16 Thereafter Total $ 1,512 |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Prepaid Deposits and Other Assets Noncurrent Disclosure [Text Block] | Note 9. Prepayments, Deposits and Other Assets Prepayments, deposits and other assets consisted of the following: December 31, (amounts in thousands) 2016 2015 Rental, utilities and other deposits $ 228 $ 391 Other receivables (1) 976 Prepayments to suppliers 34 Total $ 1,204 $ 425 (1) Other receivables as of December 31, 2016 included approximately $ 976,000 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Disclosure [Text Block] | Accrued Expenses December 31, (amounts in thousands) 2016 2015 Payroll and related costs (1) $ 323 $ 626 Professional fees 243 339 Other tax expenses 266 593 Other expenses 286 197 Total $ 1,118 $ 1,755 (1) Payroll and related costs decreased from December 31, 2015 to December 31, 2016 primarily due to the lower accrued bonus for the discontinued Cambodia gaming operations and gaming products divisions for the year ended December 31, 2016. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Other Liabilities December 31, (amounts in thousands) 2016 2015 Other tax liabilities $ 418 $ 754 Others (1) 23 126 Total $ 441 $ 880 (1) Balances for the years ended December 31, 2016 and 2015 mainly included accrued retirement benefits and asset retirement obligations. See Notes 19 and 20, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 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 these plans on December 31, 2008. 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 1,250,000 100 110 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 an exercise price of $1.94, which is based on the higher of: (i) 100% of the fair market value of the Company’s common stock on the board approval date and (ii) 100% of the average fair market value of one share of the Company’s common stock for the five business days immediately preceding the board approval date. The replacement options have a ten-year term from the board of directors’ 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 147,000 During the year ended December 31, 2016, stock options for the purchase of 484,781 1.94 0.32 During the year ended December 31, 2016, there were no exercises of outstanding stock options. Under the previous 1999 plans, a total of 956,250 937,500 18,750 As of December 31, 2016, stock options for the purchase of 70,627 2,813 As of December 31, 2016, stock options for the purchase of 186,339 459,155 As of December 31, 2016, stock options for the purchase of 259,779 8.74 3.40 6,000 2,000 459,155 90,000 2.43 Options Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (17,556) 13.46 Outstanding as of December 31, 2015 767,476 7.90 4.28 34 Exercisable as of December 31, 2015 734,976 $ 7.95 4.14 $ 34 Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares 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 (533,323) 7.21 Outstanding as of December 31, 2016 718,934 4.40 6.85 6 Exercisable as of December 31, 2016 259,779 $ 8.74 2.48 $ 6 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life shares Grant Date (in years) Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Granted Vested (3,750) 4.84 Unvested balance as of December 31, 2015 3,750 $ 4.84 0.41 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life 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 December 31, 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 are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. The grant date for stock-based awards with subjective performance condition does not occur until the earlier of the vesting date or when the discretionary feature has lapsed. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends and it does not expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. Year Ended December 31, 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 % 2.38 % 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 a pro rata basis over the requisite service period. The Company estimates forfeitures and recognizes compensation cost only for those awards expected to vest assuming all awards would vest and reverse recognized compensation cost for forfeited awards when the awards are actually forfeited. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Dec. 31, 2016 | |
Long Lived Assets [Abstract] | |
Disclosure Of Long Lived Assets Disclosure [Text Block] | Note 13. Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. In such instance, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the assets. For the year ended December 31, 2016, the Company recorded an impairment charge of approximately $ 1.3 For the year ended December 31, 2015, the Company recorded an impairment charge of approximately $ 2.6 For the year ended December 31, 2014, the Company recorded an impairment charge of approximately $ 142,000 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 14. Related Party Transactions Year ended December 31, (amounts in thousands) 2016 2015 2014 Related party transaction provided to: Melco Crown (Macau) Limited Sales of gaming products $ $ 358 $ 138 MCE Leisure (Philippines) Corporation Sales of gaming products $ 167 $ 4,945 $ 3,523 Melco Crown Entertainment Limited Sales of gaming products $ $ 212 $ 243 Studio City International Holding Limited Sales of gaming products $ $ 2,280 $ Related party transactions provided by: Melco Services Limited Other (1) $ 425 $ 226 $ 4 Golden Future (Management Services) Limited Management services $ 240 $ 281 $ 276 (1) The amounts for the years ended December 31, 2016 and 2015 include fees paid to Melco Services Limited under a management services agreement, which was effective as of January 1, 2015. 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 72.8 60 Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 15. Income Taxes Year ended December 31, (amounts in thousands) 2016 2015 2014 Federal deferred $ 56 $ (59) $ (59) Foreign Current (258) (376) (133) Deferred (155) 218 233 Total tax (expense)/benefit $ (357) $ (217) $ 41 Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Federal tax benefit at the statutory rate $ 1,696 $ 1,269 $ 1,022 Difference in jurisdictional tax rates (543) 555 (223) Expense not deductible for tax (72) (822) 61 Income not subject to tax 1 50 Adjustment of provision to tax return 57 (584) (311) Change in valuation allowances (1,583) (695) (595) Change in unrecognized tax benefits (92) (94) (108) Other 179 104 195 Total tax (expense)/benefit $ (357) $ (217) $ 41 Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Domestic $ (2,543) $ (3,671) $ (3,249) International (2,444) (60) 244 Loss from continuing operations before income tax $ (4,987) $ (3,731) $ (3,005) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. December 31, (amounts in thousands) 2016 2015 Deferred tax assets current Prepaid commission agreement $ 1,277 $ 1,277 Depreciation and impairment 2,287 2,214 Other 323 326 Less: Valuation allowances (3,887) (3,817) Deferred tax assets non current Net operating losses 65,021 63,427 Stock options 938 920 Less: Valuation allowances (65,900) (64,073) 59 274 Deferred tax liabilities non current Dividend withholding tax (5,654) Acquisition of intangibles (29) (5,654) (29) Net deferred tax (liabilities)/assets $ (5,595) $ 245 Domestic operating loss carryforwards were approximately $ 185.4 182.3 20 10.0 6.5 As of December 31, 2016, there were valuation allowances of approximately $ 61.3 8.5 60.7 (amounts in thousands) Balance at January 1, 2015 $ 4,061 Additions based on tax positions related to the current year 58 Reductions for tax positions of prior years (31) Balance at December 31, 2015 $ 4,088 Additions based on tax positions related to the current year 429 Reduction due to lapse of statutory limitation (248) Reductions for tax positions of prior years (29) Balance at December 31, 2016 $ 4,240 The amount of uncertain tax benefits that would affect the effective income tax rate, if recognized, is nil and approximately $ 270,000 The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in the provision for income taxes in the consolidated statements of comprehensive loss/income except for those related to the discontinued operations. During the years ended December 31, 2016 and 2015, the Company wrote back and charged penalty interest of approximately $ 440,000 67,000 440,000 The fixed obligation tax arrangement for the now discontinued Cambodia gaming operations was subject to annual renewal and negotiation. It had been renewed for 2016. The Company is subject to income tax examinations by tax authorities in jurisdictions in which it operates. The Company’s 2014 to 2016 United States income tax returns remain open to examination by the Internal Revenue Service. The Company’s 2014 to 2016 Cambodian income tax returns remain open to examination by the General Department of Taxation. The Company’s 2013 to 2016 Philippines income tax returns remain open to examination by the Philippines Bureau of Internal Revenue. The Company’s 2010 to 2016 Hong Kong income tax returns remain open to examination by the Hong Kong Inland Revenue Department. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 16. Discontinued Operations During the reported periods, the Company’s business activities included discontinued gaming operations in Cambodia on both a fixed lease and revenue-sharing basis and the operations of a small regional casino Dreamworld Casino (Pailin) developed by the Company in Cambodia. In addition, the Company also operated 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. Discontinued Cambodia Gaming Operations During the year ended December 31, 2016, the Company terminated its two EGM participation agreements and one EGM leasing agreement in Cambodia and exited its Cambodia gaming operations. Concurrent with the termination of the agreements, the Company sold all of its EGMs and gaming equipment in Cambodia in three separate transactions as set out below. ⋅ On July 6, 2016, the Company terminated its most recent EGM leasing agreement with NagaWorld Limited effective June 30, 2016 and agreed to sell to a third-party in Cambodia all of its 670 EGM seats placed at NagaWorld’s casino for cash proceeds of $ 2.5 ⋅ On October 31, 2016, the Company terminated its machine operation and participation agreement with Thansur Bokor in Cambodia and sold all of its 71 EGM seats placed there to the casino owner for cash proceeds of $ 250,000 ⋅ On December 21, 2016, the Company terminated its machine operation and participation agreement with the venue and land owners of Dreamworld Club (Poipet) in Cambodia effective December 1, 2016. Pursuant to the machine operation and participation agreement, the ownership of the Dreamworld Club (Poipet) building structure, which was constructed and paid for by the Company on the property of the venue owner of Dreamworld Club (Poipet), reverted to the venue owner upon termination of the agreement. Also on December 21, 2016, the Company agreed to sell its 278 EGM seats placed in Dreamworld Club (Poipet) as well as the 72 EGM seats held in storage and the gaming equipment spare parts and accessories in Cambodia, to the venue owner of Dreamworld Club (Poipet) for cash proceeds of $ 900,000 From May 2012 until June 2014, the Company operated Dreamworld Casino (Pailin), a small regional casino in the Pailin Province of Cambodia. On June 20, 2014, the Company entered into an agreement to sell 100 500,000 100,000 25,000 363,000 of approximately $ 90,000 Year ended December 31, (amounts in thousands) 2016 2015 2014 Revenues from gaming operations $ 5,474 $ 15,485 $ 13,617 Cost of gaming operations (3,331) (7,708) (8,472) Selling, general and administrative expenses (539) (939) (1,693) Gain on disposal of assets 1,951 44 123 Impairment of assets (1) (2,563) (35) Foreign currency exchange (loss)/gain (3) (29) 7 Depreciation and amortization (15) (39) (60) Other income 9 5 6 Dividend withholding tax and other taxes, net (5,347) (Loss)/income from discontinued Cambodia gaming operations, net of tax $ (1,801) $ 4,256 $ 3,493 (1) For the year ended December 31, 2015, the Company recorded a non-cash impairment charge of approximately $2.6 million primarily associated with the write-down of building infrastructure and related gaming assets for Dreamworld Club (Poipet) as well as the write-down of prepaid leases and other assets related to previously planned gaming projects that were no longer intended to pursue. Discontinued Gaming Products 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 (GPIC). The transaction under the agreement closed on May 11, 2016. Under the terms of the agreement, the Company sold to GPIC 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, GPIC 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 GPIC, 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 GPIC not to engage in the manufacture of gaming chips, plaques, jetons, playing cards and layouts for gaming tables in competition with GPIC. 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 GPIC settled and released each other of all claims relating to the civil actions instituted by GPIC against DPD in the High Court of the Hong Kong Special Administrative Region in December 2015. December 31, (amounts in thousands) 2016 2015 2014 Revenues from gaming products $ 1,612 $ 13,382 $ 5,998 Cost of gaming products (2,096) (11,252) (7,781) Selling, general and administrative expenses (1) (1,993) (918) (881) Gain/(loss) on disposal of assets 1,287 (426) (105) Impairment of assets (2) (1,276) (107) Research and development expenses (105) (149) (387) Foreign currency exchange gain/(loss) 9 (65) 1 Depreciation and amortization (37) (79) (99) Other income 9 19 1 (Loss)/income from discontinued gaming products operations, net of tax $ (2,590) $ 512 $ (3,360) (1) The Company incurred approximately $ 487,000 830,000 (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 | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 17. Commitments and Contingencies Leases The Company currently leases or sub-leases office spaces in locations including Hong Kong, Cambodia, the Philippines, Mainland China, the United States and certain office equipment under non-cancelable operating leases with remaining terms fall within one year. Future minimum lease payment commitments, net of any sublease proceeds and including scheduled escalation provisions as of December 31, 2016 under the leases were as follows: Operating Leases Total Sublease Net (amounts in thousands) Payments Proceeds Payments 2017 $ 212 $ 212 2018 2019 2020 2021 Thereafter Rent expenses on all operating leases for the continuing operations were approximately $ 304,000 209,000 273,000 Legal Matters Gaming Partners International Corporation Litigation On December 21, 2015, Gaming Partners International Corporation (GPIC) commenced a legal action in the High Court of the Hong Kong Special Administrative Region against DPD Limited, formerly known as Dolphin Products Limited (DPD), the Company’s wholly-owned subsidiary. On May 11, 2016, GPIC agreed to irrevocably withdraw, terminate and discontinue the legal action mentioned above. On the same date, we agreed to sell substantially all the principal assets of DPD to GPIC and to discontinue DPD’s business of designing, manufacturing and distributing gaming chips and plaques and distributing third-party table game products. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 18. Loss Per Share Years Ended December 31, 2016 2015 (1) 2014 (1) (amounts in thousands, except per share Number of Per Share Number of Per Share Number of Per Share data) Loss Shares Amount Loss Shares Amount Loss Shares Amount Basic Net loss attributable to equity shareholders $ (5,344) 14,464 $ (0.37) $ (3,948) 14,457 $ (0.27) $ (2,964) 8,188 $ (0.36) Effect of dilutive securities Dilutive stock options/restricted shares (2) Diluted Net loss attributable to equity shareholders plus assumed conversion $ (5,344) 14,464 $ (0.37) $ (3,948) 14,457 $ (0.27) $ (2,964) 8,188 $ (0.36) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. (2) For the years end December 31, 2016, 2015 and 2014, there were no differences in diluted loss per share from basic loss from continuing operations per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. Outstanding stock options for 718,934 740,185 719,399 |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 19. Retirement Plan The tables below summarize the components of retirement benefits included in the operating expenses under retirement benefit in the consolidated statement of comprehensive loss/income, and accrued retirement benefits, which is based on the latest actuarial valuation report dated December 31, 2016. The components of retirement benefits for the years ended December 31, 2016 and 2015 in the consolidated statements of comprehensive loss/income are as follows: December 31, (amounts in thousands) 2016 2015 Service cost $ 5 $ 8 Interest cost on benefits obligation 1 1 Recognized actuarial gain (11) (11) Net periodic benefit $ (5) $ (2) Movement in the present value of the retirement obligation for the years ended December 31, 2016 and 2015 are as follows: December 31, (amounts in thousands) 2016 2015 Balance, January 1 $ 23 $ 29 Service cost 5 8 Interest cost 1 1 Actuarial gain and others (6) (15) Balance, December 31 $ 23 $ 23 |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 20. Asset Retirement Obligations Reconciliations of the carrying amounts of asset retirement obligations are as follows: December 31, (amounts in thousands) 2016 2015 Balance, January 1 $ 99 $ 92 Accretion expense 7 Reduction (99) Balance, December 31 $ $ 99 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2016 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 21. Accumulated Other Comprehensive Income Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances, January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive (loss)/income (12) 23 11 Balances, December 31, 2014 87 666 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances, December 31, 2015 90 619 709 Current period other comprehensive loss (5) (119) (124) Balances, December 31, 2016 $ 85 $ 500 $ 585 |
Description of Business and S29
Description of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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. The Company effected a 1-for-4 reverse stock split of its common shares as of February 26, 2015. All historical share amounts and share price information presented in the financial statements and notes have been proportionally adjusted to reflect the impact of this reverse stock split, including but not limited to basic and diluted weighted-average shares issued and outstanding. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior year amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current year’s presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, long-term contracts, reward points redemption breakage rate, 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 years presented. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of December 31, 2016, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 33.3 |
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 allowance for doubtful accounts. Allowance for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectible amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationships and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. There were no lower of cost or market (LCM) write-down for the years ended December 31, 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 Accounting Standards Codification (ASC) 360, Property, Plant and Equipment Impairment charges of approximately $ 1.3 Impairment charges of approximately $ 2.6 Impairment charges of approximately $ 142,000 |
Prepaid Deposits And Other Assets [Policy Text Block] | Prepayments, Deposits and Other Assets Prepayments, deposits and other assets consist primarily of prepayments 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 gaming equipment over a five-year useful life and depreciates refurbished gaming equipment over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 341,000 441,000 420,000 620,000 2.0 2.6 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the useful lives of the assets currently estimated to be three to ten years, which in the case of leasehold improvements, is limited to the life of the lease and throughout the renewal period as long as renewal is reasonably assured. The Company capitalizes certain direct and incremental costs related to the design and construction, project payroll costs and applicable portions of interest incurred for potential projects in property and equipment. Depreciation of property and equipment of approximately $ 10,000 11,000 10,000 Depreciation of property and equipment of approximately $ 666,000 1.8 1.6 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Intangible Assets, Including Casino Contracts Intangible assets consist of patents, trademarks, technical know-how, a gaming operation agreement, casino contracts, capitalized software costs and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria meet for capitalization are expensed to research and development expenses as incurred. Management has committed the resources of developing social gaming application, and it is probable that the social gaming application will be completed and the software will be used as intended. Such capitalized costs are amortized on a straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts for the Philippines gaming operations were approximately $ 187,000 387,000 396,000 96,000 252,000 252,000 Amortization expenses related to internal-use software were approximately $ 161,000 Amortization expenses related to casino contracts for the discontinued Cambodia gaming operations were approximately $ 341,000 2.0 2.0 9,000 26,000 26,000 10,000 24,000 24,000 The Company measures and tests finite-lived intangibles for impairment when there are indicators of impairment in accordance with ASC 360-10-05, Property, Plant and Equipment The Company measures and tests goodwill for impairment, at least annually in accordance with ASC 350-10-05, Intangibles Goodwill and Other The Company first assesses qualitative factors to determine whether it is necessary to perform the two-step goodwill impairment test. If determined to be necessary, the two-step impairment test shall be used to identify potential goodwill impairment. Impairment testing for goodwill and other intangibles requires judgment, including the identification of reporting units, allocation of related goodwill, assignment of corporate shared assets and liabilities to reporting units, estimated future cash flows and determinations of fair values. While the Company believes its estimates of future revenues and cash flows are reasonable, different assumptions could materially affect the assessment of useful lives, recoverability and fair values. No impairment charges relating to intangible assets were recorded for the years ended December 31, 2016, 2015 and 2014. |
Additional Paid In Capital [Policy Text Block] | Additional Paid-In-Capital For the year ended December 31, 2016, the increase in additional paid-in-capital account mainly represented issuance of non-cash stock option compensation. |
Litigation And Other Contingencies [Policy Text Block] | Litigation and Other Contingencies In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 17 ASC 450, Contingencies, |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company recognizes revenue when all of the following have been satisfied: · Persuasive evidence of an arrangement exists; · The price to the customer is fixed and determinable; · Delivery has occurred and any acceptance terms have been fulfilled; · No significant contractual obligations remain; and · Collection is reasonably assured. Gaming Operations Revenue 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 for one of the venues only for the period of March 1, 2016 through June 30, 2016 which has now been reclassified as discontinued operations, or, the Company’s share of net winnings and reimbursement of expenses and commitment fees. Revenues are recognized as earned unless collection is not reasonably assured, in which case revenues are recognized when payment is received. All gaming operations revenues were recognized as earned during the years ended December 31, 2016, 2015 and 2014. Commitment fees paid to the venue operators relating to contract amendments which are not recoverable from daily net win are capitalized as assets and amortized as a reduction of revenue over the term of the amended contracts. The Company had no commitment fee balances related to contract amendments as of December 31, 2016 and December 31, 2015. Social Gaming The Company is currently testing a social gaming platform and application to derive revenue from the in-game sale of virtual coins that allows players to extend play time or accelerate their progress. The Company recognizes the sale of virtual coins over the estimated average playing period of paying players. On a quarterly basis, the Company determines the estimated average playing period for paying players by game beginning at the time of a paying player’s first purchase in that game and ending on a date when that paying player is no longer playing the game. To determine which players are inactive, the Company analyzes the dates that each paying player last logged into that game. The Company earns revenue through certain mobile platforms, including iOS and Android, and recognizes online game revenue based on the gross amount paid by the player because the Company is the primary obligor and the Company has the contractual right to determine the price to be paid by the player. The Company records the related platform and payment processing fees as cost of revenue in the period incurred. 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 64,000 83,000 160,000 |
Employee Defined Contribution Plan [Policy Text Block] | The Company operates a mandatory provident fund scheme, the MPF Scheme, under the Mandatory Provident Fund Schemes Ordinance for its employees in Hong Kong. The assets of the MPF Scheme are held separately from those of the Company in an independently administered fund. Contributions are made based on a percentage of the employees’ basic salaries and are expensed as and when the contributions fall due. The Company has no legal obligation for the benefits beyond the contributions. The total amounts of such employer contributions for continuing operations, which were expensed as incurred, were approximately $ 18,000 22,000 27,000 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development expenses are expensed as incurred. Employee-related costs associated with research and development and certain costs associated with the development of the social gaming platform and applications are included in research and development expenses. Research and development expenses for continuing operations were approximately $ 887 272 |
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 exist: ⋅ Ownership is transferred to the lessee by the end of the lease term; ⋅ There is a bargain purchase option; ⋅ The lease term is at least 75 ⋅ The present value of the minimum lease payments at the beginning of the lease term is 90% or more of the fair value of the leased property to the lessor at the inception date. A capital lease is accounted for as if there was an acquisition of an asset and an incurrence of an obligation at the inception of the lease. All other leases are accounted for as operating leases wherein rental payments are expensed as incurred. The Company had no capital leases as of December 31, 2016 or 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 On December 31, 2010, the Company effected a Quasi-Reorganization. As of that date, the Company’s deferred taxes were reported in conformity with applicable income tax accounting standards described above, net of applicable valuation allowances. Deferred tax assets and liabilities were recognized for differences between the assigned values and the tax basis of the recognized assets and liabilities with corresponding valuation allowances as appropriate. In accordance with the Quasi-Reorganization requirements, pre-existing tax benefits realized subsequent to the Quasi-Reorganization are recorded directly in equity. |
Earnings Per Share, Policy [Policy Text Block] | (Loss)/Earnings per Share Basic (loss)/earnings per share are computed by dividing the reported net (loss)/earnings by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing the net income by the weighted average number of shares of common stock and shares issuable from stock options and restricted shares during the period. The computation of diluted earnings per share excludes the impact of stock options and restricted shares that are anti-dilutive due to the stock options’ exercise price exceeding the Company’s stock price as of December 31, 2016. There were no differences in diluted loss per share from basic loss from continuing operations per share for the years ended December 31, 2016, 2015 and 2014 as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translations and Transactions The functional currency of the Company’s international subsidiaries, except for its operations in Cambodia whose functional currency is also U.S. dollars, is generally the local currency. For these subsidiaries, the Company translates the assets and liabilities at exchange rates in effect at the balance sheet date and income and expense accounts at average exchange rates during the year. Resulting currency translation adjustments are recorded directly to accumulated other comprehensive income within stockholders’ equity. Gains and losses resulting from transactions in non-functional currencies are recorded in the consolidated statements of comprehensive loss/income. (US$1 to foreign currency) December 31, 2016 December 31, 2015 Australian dollar 1.39 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 49.81 47.17 Thai baht 35.26 36.07 Year Ended December 31, (US$1 to foreign currency) 2016 2015 2014 Australian dollar 1.35 1.33 1.11 Hong Kong dollar 7.76 7.75 7.75 Philippine peso 47.49 45.50 44.47 Thai baht 35.26 34.25 32.54 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurements Fair value is defined under ASC 820, Fair Value Measurements and Disclosures · Level 1 Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets. · Level 2 Input, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily-available pricing sources for comparable instruments. · Level 3 Unobservable input, where there is little or no market activity for the asset or liability. This input reflects the reporting entity’s own assumptions of the data that participants would use in pricing the asset or liability, based on the best information available under the circumstances. As of December 31, 2016, the fair values of financial assets and liabilities approximate carrying values due to the short maturities of these items. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Defined Benefit Pension Plan The Company provides pension benefits to all regular full-time employees in the Philippines through a defined benefit plan. A defined benefit plan is a pension plan that defines an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and salary. The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related pension liability. The accounting guidance related to employers’ accounting for defined benefit pension plan requires recognition in the balance sheet of the present value of the defined benefit obligation at the reporting date, together with adjustments for unrecognized actuarial gains or losses and past service costs or credits in other comprehensive loss/income. The Company recorded a decrease of approximately $ 5,000 3,000 12,000 |
Asset Retirement Obligations, Policy [Policy Text Block] | Asset Retirement Obligations Asset retirement obligations are legal obligations associated with the retirement of long-lived assets resulting from the acquisition, construction, development and/or normal use of the underlying assets. Recognition of a liability for an asset retirement obligation is required in the period in which it is incurred at its estimated fair value. The associated asset retirement costs are capitalized as part of the carrying amount of the underlying asset and depreciated over the estimated useful life of the asset. The liability is accreted through charges to operating expenses. If the asset retirement obligation is settled for other than the carrying amount of the liability, the Company recognizes a gain or loss on settlement. The Company records all asset retirement obligations for which it has legal obligations to remove all installation work and reinstate the manufacturing facilities to its original state at its estimated fair value. For the years ended December 31, 2016, 2015 and 2014, the Company had no asset retirement obligation operating costs related to accretion of the liabilities. |
Customer Loyalty Program [Policy Text Block] | Customer Loyalty Program The Company offers a loyalty program for its social casino gaming platform which enables players to redeem accumulated points for reward items. Players can redeem experience points from game time play for incentives, for example, food and beverage, rooms and entertainment at casino resort properties. The Company accrues for loyalty program points expected to be redeemed for free goods and services as marketing expense. The accruals are based on management’s estimates and assumptions regarding the estimated costs of providing those benefits and the actual redemption rates in each country, less an estimate for points not expected to be redeemed. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In January 2016, the FASB issued ASU 2016-01, Financial Instruments Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which intends to improve the recognition and measurement of financial instruments. The ASU will be effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Accounting for Leases, which changes the accounting for leases, including a requirement to record all leases on the balance sheet as assets and liabilities. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of adopting the new leases standard on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers Principal versus Agent Considerations, which intends to improve the operability and understandability of the implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as the effective date for ASU 2014-09, “Revenue from Contracts with Customers”. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for interim and annual reporting periods beginning after December 15, 2016, although early adoption is permitted. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows Classification of Certain Cash Receipts and Cash Payments, which attempts to reduce the existing diversity in practice with respect to reporting the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (including bank-owned life insurance policies); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. This guidance will be effective for the Company on January 1, 2018. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Topic 606 Revenue from Contracts with Customers, which amends certain narrow aspects of the guidance issued in ASU 2014-09, Revenue from Contracts with Customers, including guidance related to the disclosure of remaining performance obligations and prior-period performance obligations, as well as other amendments to the guidance on loan guarantee fees, contract costs, refund liabilities, advertising costs and the clarification of certain examples. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, IntangiblesGoodwill and Other Simplifying the Test for Goodwill Impairment, which eliminates Step two from the goodwill impairment test. Instead, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU is effective for an entity’s annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the impact of the adoption of this ASU to be material to its consolidated financial statements |
Description of Business and S30
Description of Business and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of December 31, 2016 and 2015 and average exchange rates for the years ended December 31, 2016, 2015 and 2014, respectively. (US$1 to foreign currency) December 31, 2016 December 31, 2015 Australian dollar 1.39 1.37 Hong Kong dollar 7.75 7.75 Philippine peso 49.81 47.17 Thai baht 35.26 36.07 Year Ended December 31, (US$1 to foreign currency) 2016 2015 2014 Australian dollar 1.35 1.33 1.11 Hong Kong dollar 7.76 7.75 7.75 Philippine peso 47.49 45.50 44.47 Thai baht 35.26 34.25 32.54 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 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. Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Revenues: Gaming operations $ 1,951 $ 2,641 $ 2,974 Social gaming 8 Total revenues $ 1,959 $ 2,641 $ 2,974 Operating (loss)/income: Gaming operations operating income $ 923 $ 856 $ 1,166 Social gaming operating loss (1,077) (272) Corporate and other operating costs and expenses (4,796) (4,193) (4,123) Total operating loss $ (4,950) $ (3,609) $ (2,957) (1) Amounts for years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. December 31, (amounts in thousands) 2016 2015 Identifiable assets: Gaming operations $ 5,362 $ 22,763 Social gaming 1,584 138 Corporate 32,482 22,384 Total identifiable assets $ 39,428 $ 45,285 December 31, (amounts in thousands) 2016 2015 Goodwill: Gaming operations $ 315 $ 332 Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Capital expenditures: Gaming operations $ 45 $ 555 $ 284 Social gaming 1,625 150 Corporate 2 66 Total capital expenditures $ 1,670 $ 707 $ 350 Depreciation and amortization: Gaming operations $ 634 $ 1,091 $ 1,078 Social gaming 173 Corporate 76 93 60 Total depreciation and amortization $ 883 $ 1,184 $ 1,138 Interest expenses and finance fees: Corporate $ $ 3 $ 4 Income tax expense/(benefit): Gaming operations $ 442 $ 236 $ (9) Corporate (85) (19) (32) Total income tax expense/(benefit) $ 357 $ 217 $ (41) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Years Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Philippines $ 1,951 $ 2,641 $ 2,974 Others 8 Total $ 1,959 $ 2,641 $ 2,974 (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. Long-lived assets, goodwill and intangible assets identified by geographic segments consisted of the following: December 31, (amounts in thousands) 2016 2015 Cambodia $ 798 $ 3,517 Hong Kong 1,874 5,278 Philippines 398 1,295 United States 61 65 Total $ 3,131 $ 10,155 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: December 31, (amounts in thousands) 2016 2015 Raw materials (1) $ $ 1,742 Work-in-process 80 Finished goods (2) 443 Spare parts 21 113 Total $ 21 $ 2,378 (1) Raw materials decreased from December 31, 2015 to December 31, 2016 due to the Company’s sale of its gaming products operations assets, which included raw materials, on May 11, 2016. (2) Finished goods decreased from December 31, 2015 to December 31, 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 Cu33
Prepaid Expenses and Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 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: December 31, (amounts in thousands) 2016 2015 Prepayments $ 49 $ 292 Prepaid insurance 186 3 Total $ 235 $ 295 |
Receivables (Tables)
Receivables (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Schedule Of Accounts And Other Receivables [Table Text Block] | December 31, (amounts in thousands) 2016 2015 Accounts receivable $ 135 $ 724 Other receivables (1) 1,051 78 1,186 802 Less: allowance for doubtful accounts (7) Net $ 1,179 $ 802 (1) As of December 31, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment (Tables)
Gaming Equipment (Tables) | 12 Months Ended |
Dec. 31, 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: Useful Life December 31, (amounts in thousands) (years) 2016 2015 EGMs (1) 3-5 $ 3,722 $ 16,215 Systems 5 979 1,335 4,701 17,550 Less: accumulated depreciation (4,312) (14,565) Net carrying value $ 389 $ 2,985 (1) EGMs decreased from December 31, 2015 to December 31, 2016 primarily due to the sale of the Company’s EGMs and gaming equipment in Cambodia, including EGMs placed in NagaWorld, Dreamworld Club (Poipet) and Thanur Bokor, and the sale of EGMs placed in Leisure World VIP Club in the Philippines during the year ended December 31, 2016. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Useful Life December 31, (amounts in thousands) (years) 2016 2015 Equipment, vehicles, furniture and fixtures (1) 3-10 $ 606 $ 6,290 Land and building 0-5 797 1,506 Leasehold improvements (2) 1-6 45 1,400 1,448 9,196 Less: accumulated depreciation (533) (3,277) Net carrying value $ 915 $ 5,919 (1) Equipment, vehicles, furniture and fixtures decreased from December 31, 2015 to December 31, 2016 due to the sale of the principal assets of the discontinued gaming products and gaming operations on May 11, 2016 and December 21, 2016, respectively, 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. (2) Leasehold improvements decreased from December 31, 2015 to December 31, 2016 due to the write-down of leasehold improvements as of December 31, 2016 related to the discontinued gaming products operations. |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Useful Life December 31, (amounts in thousands) (years) 2016 2015 Gaming operation agreement 4-5 $ 1,166 $ 1,166 Less: accumulated amortization (1,166) (1,070) 96 Goodwill N/A 315 332 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 1,942 12,637 Less: accumulated amortization (1,942) (12,109) 528 Internaluse software (1) 4 1,673 107 Less: accumulated amortization (161) 1,512 107 Net carrying value $ 1,827 $ 1,251 (1) Internal-use software relates to the development of the social gaming platform and applications. |
Schedule of Goodwill [Table Text Block] | Goodwill movements during the year consisted of the following: (amounts in thousands) 2016 2015 Balance as of January 1 $ 332 $ 351 Foreign currency translation adjustment (17) (19) Balance as of December 31 $ 315 $ 332 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Annual estimated amortization expense for each of the five succeeding years and thereafter consist of the following: (amounts in thousands) 2017 403 2018 418 2019 418 2020 257 2021 16 Thereafter Total $ 1,512 |
Prepayments, Deposits and Oth38
Prepayments, Deposits and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Schedule Of Prepaid Deposits And Other Assets [Table Text Block] | Prepayments, deposits and other assets consisted of the following: December 31, (amounts in thousands) 2016 2015 Rental, utilities and other deposits $ 228 $ 391 Other receivables (1) 976 Prepayments to suppliers 34 Total $ 1,204 $ 425 (1) Other receivables as of December 31, 2016 included approximately $ 976,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: December 31, (amounts in thousands) 2016 2015 Payroll and related costs (1) $ 323 $ 626 Professional fees 243 339 Other tax expenses 266 593 Other expenses 286 197 Total $ 1,118 $ 1,755 (1) Payroll and related costs decreased from December 31, 2015 to December 31, 2016 primarily due to the lower accrued bonus for the discontinued Cambodia gaming operations and gaming products divisions for the year ended December 31, 2016. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: December 31, (amounts in thousands) 2016 2015 Other tax liabilities $ 418 $ 754 Others (1) 23 126 Total $ 441 $ 880 (1) Balances for the years ended December 31, 2016 and 2015 mainly included accrued retirement benefits and asset retirement obligations. See Notes 19 and 20, respectively. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2016 and changes during the years then ended is presented in the following tables. Options Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding as of December 31, 2014 785,032 $ 8.02 5.42 $ 46 Granted Exercised Forfeited or expired (17,556) 13.46 Outstanding as of December 31, 2015 767,476 7.90 4.28 34 Exercisable as of December 31, 2015 734,976 $ 7.95 4.14 $ 34 Weighted Average Remaining Weighted Contractual Aggregate Number of Average Life Intrinsic Value Shares 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 (533,323) 7.21 Outstanding as of December 31, 2016 718,934 4.40 6.85 6 Exercisable as of December 31, 2016 259,779 $ 8.74 2.48 $ 6 |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | Restricted Stock Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life shares Grant Date (in years) Unvested balance as of December 31, 2014 7,500 $ 4.84 1.41 Granted Vested (3,750) 4.84 Unvested balance as of December 31, 2015 3,750 $ 4.84 0.41 Weighted Average Weighted Remaining Average Contractual Number of Fair Value at Life 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 December 31, 2016 $ |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 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 % 2.38 % 1.13 % 2.02 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule Of Transactions With Related Parties [Table Text Block] | Year ended December 31, (amounts in thousands) 2016 2015 2014 Related party transaction provided to: Melco Crown (Macau) Limited Sales of gaming products $ $ 358 $ 138 MCE Leisure (Philippines) Corporation Sales of gaming products $ 167 $ 4,945 $ 3,523 Melco Crown Entertainment Limited Sales of gaming products $ $ 212 $ 243 Studio City International Holding Limited Sales of gaming products $ $ 2,280 $ Related party transactions provided by: Melco Services Limited Other (1) $ 425 $ 226 $ 4 Golden Future (Management Services) Limited Management services $ 240 $ 281 $ 276 (1) The amounts for the years ended December 31, 2016 and 2015 include fees paid to Melco Services Limited under a management services agreement, which was effective as of January 1, 2015. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the provision for income taxes consisted of the following: Year ended December 31, (amounts in thousands) 2016 2015 2014 Federal deferred $ 56 $ (59) $ (59) Foreign Current (258) (376) (133) Deferred (155) 218 233 Total tax (expense)/benefit $ (357) $ (217) $ 41 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Federal tax benefit at the statutory rate $ 1,696 $ 1,269 $ 1,022 Difference in jurisdictional tax rates (543) 555 (223) Expense not deductible for tax (72) (822) 61 Income not subject to tax 1 50 Adjustment of provision to tax return 57 (584) (311) Change in valuation allowances (1,583) (695) (595) Change in unrecognized tax benefits (92) (94) (108) Other 179 104 195 Total tax (expense)/benefit $ (357) $ (217) $ 41 (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Consolidated loss from continuing operations before taxes for domestic and international operations consisted of the following: Year Ended December 31, (amounts in thousands) 2016 2015 (1) 2014 (1) Domestic $ (2,543) $ (3,671) $ (3,249) International (2,444) (60) 244 Loss from continuing operations before income tax $ (4,987) $ (3,731) $ (3,005) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | The primary tax affected components of the Company’s deferred tax (liabilities)/assets consisted of the following: December 31, (amounts in thousands) 2016 2015 Deferred tax assets current Prepaid commission agreement $ 1,277 $ 1,277 Depreciation and impairment 2,287 2,214 Other 323 326 Less: Valuation allowances (3,887) (3,817) Deferred tax assets non current Net operating losses 65,021 63,427 Stock options 938 920 Less: Valuation allowances (65,900) (64,073) 59 274 Deferred tax liabilities non current Dividend withholding tax (5,654) Acquisition of intangibles (29) (5,654) (29) Net deferred tax (liabilities)/assets $ (5,595) $ 245 |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | A reconciliation of the beginning and ending amounts of unrecognized tax benefits consisted of the following: (amounts in thousands) Balance at January 1, 2015 $ 4,061 Additions based on tax positions related to the current year 58 Reductions for tax positions of prior years (31) Balance at December 31, 2015 $ 4,088 Additions based on tax positions related to the current year 429 Reduction due to lapse of statutory limitation (248) Reductions for tax positions of prior years (29) Balance at December 31, 2016 $ 4,240 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cambodia Gaming Operations [Member] | |
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 Cambodia gaming operations in the consolidated statements of comprehensive loss/income. Year ended December 31, (amounts in thousands) 2016 2015 2014 Revenues from gaming operations $ 5,474 $ 15,485 $ 13,617 Cost of gaming operations (3,331) (7,708) (8,472) Selling, general and administrative expenses (539) (939) (1,693) Gain on disposal of assets 1,951 44 123 Impairment of assets (1) (2,563) (35) Foreign currency exchange (loss)/gain (3) (29) 7 Depreciation and amortization (15) (39) (60) Other income 9 5 6 Dividend withholding tax and other taxes, net (5,347) (Loss)/income from discontinued Cambodia gaming operations, net of tax $ (1,801) $ 4,256 $ 3,493 (1) For the year ended December 31, 2015, the Company recorded a non-cash impairment charge of approximately $2.6 million primarily associated with the write-down of building infrastructure and related gaming assets for Dreamworld Club (Poipet) as well as the write-down of prepaid leases and other assets related to previously planned gaming projects that were no longer intended to pursue. |
Gaming Products [Member] | |
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 gaming products operations in the consolidated statements of comprehensive loss/income. December 31, (amounts in thousands) 2016 2015 2014 Revenues from gaming products $ 1,612 $ 13,382 $ 5,998 Cost of gaming products (2,096) (11,252) (7,781) Selling, general and administrative expenses (1) (1,993) (918) (881) Gain/(loss) on disposal of assets 1,287 (426) (105) Impairment of assets (2) (1,276) (107) Research and development expenses (105) (149) (387) Foreign currency exchange gain/(loss) 9 (65) 1 Depreciation and amortization (37) (79) (99) Other income 9 19 1 (Loss)/income from discontinued gaming products operations, net of tax $ (2,590) $ 512 $ (3,360) (1) The Company incurred approximately $ 487,000 830,000 (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 (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Future Minimum Payments For Capital And Operating Leases [Table Text Block] | Future minimum lease payment commitments, net of any sublease proceeds and including scheduled escalation provisions as of December 31, 2016 under the leases were as follows: Operating Leases Total Sublease Net (amounts in thousands) Payments Proceeds Payments 2017 $ 212 $ 212 2018 2019 2020 2021 Thereafter |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Computation of the basic and diluted loss per share from continuing operations consisted of the following: Years Ended December 31, 2016 2015 (1) 2014 (1) (amounts in thousands, except per share Number of Per Share Number of Per Share Number of Per Share data) Loss Shares Amount Loss Shares Amount Loss Shares Amount Basic Net loss attributable to equity shareholders $ (5,344) 14,464 $ (0.37) $ (3,948) 14,457 $ (0.27) $ (2,964) 8,188 $ (0.36) Effect of dilutive securities Dilutive stock options/restricted shares (2) Diluted Net loss attributable to equity shareholders plus assumed conversion $ (5,344) 14,464 $ (0.37) $ (3,948) 14,457 $ (0.27) $ (2,964) 8,188 $ (0.36) (1) Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. (2) For the years end December 31, 2016, 2015 and 2014, there were no differences in diluted loss per share from basic loss from continuing operations per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
Retirement Plan (Tables)
Retirement Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of retirement benefits for the years ended December 31, 2016 and 2015 in the consolidated statements of comprehensive loss/income are as follows: December 31, (amounts in thousands) 2016 2015 Service cost $ 5 $ 8 Interest cost on benefits obligation 1 1 Recognized actuarial gain (11) (11) Net periodic benefit $ (5) $ (2) |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | Movement in the present value of the retirement obligation for the years ended December 31, 2016 and 2015 are as follows: December 31, (amounts in thousands) 2016 2015 Balance, January 1 $ 23 $ 29 Service cost 5 8 Interest cost 1 1 Actuarial gain and others (6) (15) Balance, December 31 $ 23 $ 23 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of asset retirement obligations are as follows: December 31, (amounts in thousands) 2016 2015 Balance, January 1 $ 99 $ 92 Accretion expense 7 Reduction (99) Balance, December 31 $ $ 99 |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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, January 1, 2014 $ 99 $ 643 $ 742 Current period other comprehensive (loss)/income (12) 23 11 Balances, December 31, 2014 87 666 753 Current period other comprehensive income/(loss) 3 (47) (44) Balances, December 31, 2015 90 619 709 Current period other comprehensive loss (5) (119) (124) Balances, December 31, 2016 $ 85 $ 500 $ 585 |
Description of Business and S50
Description of Business and Significant Accounting Policies (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Australian dollar [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 1.39 | 1.37 | |
Average Foreign Currency Exchange Rate Translation | 1.35 | 1.33 | 1.11 |
Hong Kong Dollar [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 7.75 | 7.75 | |
Average Foreign Currency Exchange Rate Translation | 7.76 | 7.75 | 7.75 |
Philippine Peso [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 49.81 | 47.17 | |
Average Foreign Currency Exchange Rate Translation | 47.49 | 45.50 | 44.47 |
Thai baht [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 35.26 | 36.07 | |
Average Foreign Currency Exchange Rate Translation | 35.26 | 34.25 | 32.54 |
Description of Business and S51
Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Accounting Polices [Line Items] | |||||
Excess Cash Limits, FDIC Insured Amount | $ 33,300,000 | ||||
Stock-based compensation expenses | 64,000 | $ 83,000 | [1] | $ 160,000 | [1] |
Product development expenses | $ 887,000 | 272,000 | [1] | 0 | [1] |
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | ||||
Gaming property and equipment depreciation | $ 341,000 | 441,000 | 420,000 | ||
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. | ||||
Defined Contribution Plan, Administrative Expenses | $ 18,000 | 22,000 | 27,000 | ||
Defined benefit pension plan | (5,000) | 3,000 | [1] | (12,000) | [1] |
Depreciation | 439,000 | 545,000 | [1] | 490,000 | [1] |
Amortization of Intangible Assets | 257,000 | 252,000 | [1] | 252,000 | [1] |
Gaming Products [Member] | |||||
Accounting Polices [Line Items] | |||||
Cost of Goods Sold, Depreciation | 666,000 | 1,800,000 | 1,600,000 | ||
Gaming Products [Member] | Discontinued Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Asset Impairment Charges | 1,300,000 | 2,600,000 | |||
Depreciation | 620,000 | 2,000,000 | 2,600,000 | ||
Gaming Operation [Member] | |||||
Accounting Polices [Line Items] | |||||
Cost of Goods Sold, Depreciation | 10,000 | 11,000 | 10,000 | ||
Philippines Gaming Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization | 187,000 | 387,000 | $ 396,000 | ||
Dreamworld Casino (Pailin) Limited [Member] | |||||
Accounting Polices [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||
Patents and Trademarks [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization | 10,000 | 24,000 | $ 24,000 | ||
Technical Know How [Member] | Gaming Products [Member] | Discontinued Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization of Intangible Assets | 9,000 | 26,000 | 26,000 | ||
Other Gaming Related Intangible Assets [Member] | Philippines Gaming Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization | 96,000 | 252,000 | 252,000 | ||
Casino Contracts [Member] | Cambodia Gaming Operations [Member] | Discontinued Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization of Intangible Assets | 341,000 | 2,000,000 | 2,000,000 | ||
Internal Used Software [Member] | |||||
Accounting Polices [Line Items] | |||||
Amortization of Intangible Assets | $ 161,000 | $ 0 | 0 | ||
Egms and Systems [Member] | |||||
Accounting Polices [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 5 years | ||||
Refurbished EGMs and Systems [Member] | |||||
Accounting Polices [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |||||
Accounting Polices [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 10 years | ||||
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |||||
Accounting Polices [Line Items] | |||||
Property, Plant and Equipment, Useful Life | 3 years | ||||
Property, Plant and Equipment [Member] | Gaming Operation [Member] | Discontinued Operations [Member] | |||||
Accounting Polices [Line Items] | |||||
Asset Impairment Charges | $ 142,000 | ||||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,959 | $ 2,641 | [1] | $ 2,974 | [1] |
Operating (loss)/income | (4,950) | (3,609) | [1] | (2,957) | [1] |
Identifiable assets | 39,428 | 45,285 | |||
Capital expenditures | 1,670 | 707 | [1] | 350 | [1] |
Depreciation and amortization | 883 | 1,184 | [1] | 1,138 | [1] |
Interest expenses and finance fees | 0 | 3 | [1] | 4 | [1] |
Income tax expense/(benefit) | 357 | 217 | [1] | (41) | [1] |
Goodwill | 315 | 332 | 351 | ||
Gaming operations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,951 | 2,641 | [1] | 2,974 | [1] |
Operating (loss)/income | 923 | 856 | [1] | 1,166 | [1] |
Identifiable assets | 5,362 | 22,763 | |||
Capital expenditures | 45 | 555 | [1] | 284 | [1] |
Depreciation and amortization | 634 | 1,091 | [1] | 1,078 | [1] |
Income tax expense/(benefit) | 442 | 236 | [1] | (9) | [1] |
Goodwill | 315 | 332 | |||
Social Gaming [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8 | 0 | [1] | 0 | [1] |
Operating (loss)/income | (1,077) | (272) | [1] | 0 | [1] |
Identifiable assets | 1,584 | 138 | |||
Capital expenditures | 1,625 | 150 | [1] | 0 | [1] |
Depreciation and amortization | 173 | 0 | [1] | 0 | [1] |
Corporate and Other Operating Costs and Expenses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating (loss)/income | (4,796) | (4,193) | [1] | (4,123) | [1] |
Identifiable assets | 32,482 | 22,384 | |||
Capital expenditures | 0 | 2 | [1] | 66 | [1] |
Depreciation and amortization | 76 | 93 | [1] | 60 | [1] |
Interest expenses and finance fees | 0 | 3 | [1] | 4 | [1] |
Income tax expense/(benefit) | $ (85) | $ (19) | [1] | $ (32) | [1] |
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Segments (Details 1)
Segments (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | [1] | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 1,959 | $ 2,641 | [1] | $ 2,974 | |
Long Lived Assets Intangible Assets Including Goodwill | 3,131 | 10,155 | |||
Cambodia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long Lived Assets Intangible Assets Including Goodwill | 798 | 3,517 | |||
Philippines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 1,951 | 2,641 | [1] | 2,974 | |
Long Lived Assets Intangible Assets Including Goodwill | 398 | 1,295 | |||
Others [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 8 | 0 | [1] | $ 0 | |
Hong Kong [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long Lived Assets Intangible Assets Including Goodwill | 1,874 | 5,278 | |||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long Lived Assets Intangible Assets Including Goodwill | $ 61 | $ 65 | |||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Segments (Details Textual)
Segments (Details Textual) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gaming Operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration Risk, Percentage | 49.00% | 45.00% | 42.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 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 | 21 | 113 | |
Total | $ 21 | $ 2,378 | |
[1] | Raw materials decreased from December 31, 2015 to December 31, 2016 due to the Company’s sale of its gaming products operations assets, which included raw materials, on May 11, 2016. | ||
[2] | Finished goods decreased from December 31, 2015 to December 31, 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 Cu56
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | $ 235 | $ 295 |
Prepayments [Member] | ||
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | 49 | 292 |
Prepaid insurance [Member] | ||
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | $ 186 | $ 3 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Line Items] | |||
Accounts receivable | $ 135 | $ 724 | |
Other receivables | [1] | 1,051 | 78 |
Accounts Receivable, Gross, Current | 1,186 | 802 | |
Less: allowance for doubtful accounts | (7) | 0 | |
Net | $ 1,179 | $ 802 | |
[1] | As of December 31, 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 Prepayments, Deposits and Other Assets. See Note 9. |
Receivables (Details Textual)
Receivables (Details Textual) $ in Millions | Dec. 31, 2016USD ($) |
E G M [Member] | |
Sale of Assets Discontinued Operation Sale Proceeds Due Current | $ 1 |
Gaming Equipment (Details)
Gaming Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | $ 4,701 | $ 17,550 | |
Less: accumulated depreciation | (4,312) | (14,565) | |
Net carrying value | 389 | 2,985 | |
EGMs [Member] | |||
Gaming equipment [Line Items] | |||
Gaming equipment, Gross | [1] | $ 3,722 | 16,215 |
EGMs [Member] | Minimum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | [1] | 3 years | |
EGMs [Member] | Maximum [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | [1] | 5 years | |
Systems [Member] | |||
Gaming equipment [Line Items] | |||
Tangible Asset, Useful Life | 5 years | ||
Gaming equipment, Gross | $ 979 | $ 1,335 | |
[1] | EGMs decreased from December 31, 2015 to December 31, 2016 primarily due to the sale of the Company’s EGMs and gaming equipment in Cambodia, including EGMs placed in NagaWorld, Dreamworld Club (Poipet) and Thanur Bokor, and the sale of EGMs placed in Leisure World VIP Club in the Philippines during the year ended December 31, 2016. |
Gaming Equipment (Details Textu
Gaming Equipment (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Gaming Equipment [Line Items] | |||||
Depreciation | $ 439,000 | $ 545,000 | [1] | $ 490,000 | [1] |
Continuing Operations [Member] | E G M [Member] | |||||
Gaming Equipment [Line Items] | |||||
Depreciation | 341,000 | 441,000 | 420,000 | ||
Segment, Discontinued Operations [Member] | E G M [Member] | |||||
Gaming Equipment [Line Items] | |||||
Depreciation | $ 620,000 | $ 2,000,000 | $ 2,600,000 | ||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Property, Plant and Equipment [Line Items] | |||
Equipment, vehicles, furniture and fixtures | [1] | $ 606 | $ 6,290 |
Land and buildings | 797 | 1,506 | |
Leasehold improvements | [2] | 45 | 1,400 |
Property, Plant and Equipment, Gross | 1,448 | 9,196 | |
Less: accumulated depreciation | (533) | (3,277) | |
Net carrying value | $ 915 | $ 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 December 31, 2016 due to the sale of the principal assets of the discontinued gaming products and gaming operations on May 11, 2016 and December 21, 2016, respectively, 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. | ||
[2] | Leasehold improvements decreased from December 31, 2015 to December 31, 2016 due to the write-down of leasehold improvements as of December 31, 2016 related to the discontinued gaming products operations. |
Property and Equipment (Detai62
Property and Equipment (Details Textual) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Property, Plant and Equipment [Line Items] | |||||
Depreciation | $ 439,000 | $ 545,000 | [1] | $ 490,000 | [1] |
Gaming Products [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost of Goods Sold, Depreciation | 666,000 | 1,800,000 | 1,600,000 | ||
Gaming Operation [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost of Goods Sold, Depreciation | 10,000 | 11,000 | 10,000 | ||
Segment, Discontinued Operations [Member] | Gaming Products [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Depreciation | 620,000 | 2,000,000 | 2,600,000 | ||
Continuing Operations [Member] | Gaming Operation [Member] | |||||
Property, Plant and Equipment [Line Items] | |||||
Cost of Goods Sold, Depreciation | $ 10,000 | $ 11,000 | $ 10,000 | ||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets, including Casino Contracts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Net carrying value | $ 1,827 | $ 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 | $ 315 | 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 | $ 1,942 | 12,637 | |
Less: accumulated amortization | (1,942) | (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 | $ (161) | 0 | |
Net carrying value | $ 1,512 | 107 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | [1] | 4 years | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | [1] | $ 1,673 | $ 107 |
[1] | Internal-use software relates to the development of the social gaming platform and applications. |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets, including Casino Contracts (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance at the beginning | $ 332 | $ 351 |
Foreign currency translation adjustment | (17) | (19) |
Balance at the ending | $ 315 | $ 332 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets, including Casino Contracts (Details 2) $ in Thousands | Dec. 31, 2016USD ($) |
Indefinite-lived Intangible Assets [Line Items] | |
2,017 | $ 403 |
2,018 | 418 |
2,019 | 418 |
2,020 | 257 |
2,021 | 16 |
Thereafter | 0 |
Total | $ 1,512 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets, including Casino Contracts [Member] | Continuing Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 283,000 | $ 639,000 | $ 648,000 |
Goodwill and Intangible Assets, including Casino Contracts [Member] | Segment, Discontinued Operations [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 360,000 | 2,100,000 | $ 2,100,000 |
Internal Used Software [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 161,000 | $ 0 |
Prepayments, Deposits and Oth67
Prepayments, Deposits and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 1,204 | $ 425 | |
Prepayments to suppliers [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 0 | 34 | |
Rental, utilities and other deposits [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 228 | 391 | |
Other Receivables [Member] | |||
Prepaids, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [1] | $ 976 | $ 0 |
[1] | Other receivables as of December 31, 2016 included approximately $976,000 in payments due in more than one year from the sale of the gaming products assets. The current balance of the future payments receivable is included in Receivables. See Note 5. |
Prepayments, Deposits and Oth68
Prepayments, Deposits and Other Assets (Details Textual) | Dec. 31, 2016USD ($) |
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 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrued Expenses [Line Items] | |||
Payroll and related costs | [1] | $ 323 | $ 626 |
Professional fees | 243 | 339 | |
Other tax expenses | 266 | 593 | |
Other expenses | 286 | 197 | |
Total | $ 1,118 | $ 1,755 | |
[1] | Payroll and related costs decreased from December 31, 2015 to December 31, 2016 primarily due to the lower accrued bonus for the discontinued Cambodia gaming operations and gaming products divisions for the year ended December 31, 2016. |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Liabilities [Line Items] | |||
Other tax liabilities | $ 418 | $ 754 | |
Others | [1] | 23 | 126 |
Total | $ 441 | $ 880 | |
[1] | Balances for the years ended December 31, 2016 and 2015 mainly included accrued retirement benefits and asset retirement obligations. See Notes 19 and 20, respectively. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Line Items] | |||
Outstanding, Number of Options, Beginning Balance | 767,476 | 785,032 | |
Granted, Number of Options | 484,781 | 0 | |
Exercised, Number of Options | 0 | 0 | |
Forfeited or expired, Number of Options | (533,323) | (17,556) | |
Outstanding, Number of Options, Ending Balance | 718,934 | 767,476 | 785,032 |
Exercisable, Number of Options | 259,779 | 734,976 | |
Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 7.90 | $ 8.02 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 1.94 | 0 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | 0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 7.21 | 13.46 | |
Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 4.40 | 7.90 | $ 8.02 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.74 | $ 7.95 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 6 years 10 months 6 days | 4 years 3 months 11 days | 5 years 5 months 1 day |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 5 months 23 days | 4 years 1 month 20 days | |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 34 | $ 46 | |
Granted, Aggregate Intrinsic Value | 0 | 0 | |
Exercised, Aggregate Intrinsic Value | 0 | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | 0 | |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 6 | 34 | $ 46 |
Exercisable, Aggregate Intrinsic Value | $ 6 | $ 34 |
Stock-Based Compensation (Det72
Stock-Based Compensation (Details 1) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stock Based Compensation [Line Items] | |||
Unvested Balance, Number of Shares, Beginning Balance | 3,750 | 7,500 | |
Granted, Number of Shares | 0 | 0 | |
Vested, Number of Shares | (3,750) | (3,750) | |
Unvested Balance, Number of Shares, Ending Balance | 0 | 3,750 | 7,500 |
Unvested Balance, Weighted Average Fair Value at Grant Date, Beginning Balance | $ 0 | $ 4.84 | |
Granted, Weighted Average Fair Value at Grant Date | 0 | 0 | |
Vested, Weighted Average Fair Value at Grant Date | 4.84 | 4.84 | |
Unvested Balance, Weighted Average Fair Value at Grant Date, Ending Balance | $ 4.84 | $ 0 | $ 4.84 |
Unvested balance, Weighted Average Remaining Contractual Life (in years) | 0 years | 4 months 28 days | 1 year 4 months 28 days |
Stock-Based Compensation (Det73
Stock-Based Compensation (Details 2) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 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 | 2.38% | 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 (Det74
Stock-Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 18, 2016 | Feb. 26, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2008 | |
Stock Based Compensation [Line Items] | ||||||
Stockholders' Equity, Reverse Stock Split | 1-for-4 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 147,000 | |||||
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 | $ 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value, Options | $ 0.32 | |||||
Outstanding, Number of Shares, Options | 718,934 | 767,476 | 785,032 | |||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $ 3.40 | |||||
Exercisable, Aggregate Intrinsic Value, Options | $ 6,000 | $ 34,000 | ||||
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 | $ 90,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 2 years 5 months 5 days | |||||
Granted, Number Of Shares | 484,781 | 0 | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 8.74 | |||||
Exercisable, Number Of Shares | 259,779 | 734,976 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 459,155 | |||||
Stock Option Plan 2008 [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Outstanding, Number of Shares, Options | 186,339 | |||||
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 | |||||
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 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 18,750 | |||||
Stock Option Plan 2016 [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,250,000 | |||||
Outstanding, Number of Shares, Options | 459,155 | |||||
Amended And Restated 1999 Plan [Member] | ||||||
Stock Based Compensation [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 956,250 |
Impairment of Long-Lived Asse75
Impairment of Long-Lived Assets (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Impairment Of Long Lived Assets [Line Items] | |||
Tangible Asset Impairment Charges | $ 1,300,000 | $ 2,600,000 | $ 142,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Related party transactions provided to: | ||||||
Sales of gaming products | $ 1,959 | $ 2,641 | [1] | $ 2,974 | [1] | |
Melco Crown (Macau) Limited [Member] | ||||||
Related party transactions provided to: | ||||||
Sales of gaming products | 0 | 358 | 138 | |||
MCE Leisure (Philippines) Corporation [Member] | ||||||
Related party transactions provided to: | ||||||
Sales of gaming products | 167 | 4,945 | 3,523 | |||
Melco Crown Entertainment Limited [Member] | ||||||
Related party transactions provided to: | ||||||
Sales of gaming products | 0 | 212 | 243 | |||
Studio City International Holding Limited [Member] | ||||||
Related party transactions provided to: | ||||||
Sales of gaming products | 0 | 2,280 | 0 | |||
Melco Services Limited [Member] | ||||||
Related party transactions provided by: | ||||||
Other | [2] | 425 | 226 | 4 | ||
Golden Future (Management Services) Ltd [Member] | ||||||
Related party transactions provided by: | ||||||
Management services | $ 240 | $ 281 | $ 276 | |||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. | |||||
[2] | The amounts for the years ended December 31, 2016 and 2015 include fees paid to Melco Services Limited under a management services agreement, which was effective as of January 1, 2015. |
Related Party Transactions (D77
Related Party Transactions (Details Textual) | Dec. 31, 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 | 72.80% |
Studio City International Holding Limited [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 60.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Income Tax [Line Items] | |||||
Federal deferred | $ 56 | $ (59) | $ (59) | ||
Foreign | |||||
Current | (258) | (376) | (133) | ||
Deferred | (155) | 218 | 233 | ||
Total tax (expense)/benefit | $ (357) | $ (217) | [1] | $ 41 | [1] |
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | |
Income Tax [Line Items] | |||||
Federal tax benefit at the statutory rate | $ 1,696 | $ 1,269 | $ 1,022 | ||
Difference in jurisdictional tax rates | (543) | 555 | (223) | ||
Expense not deductible for tax | (72) | (822) | 61 | ||
Income not subject to tax | 1 | 50 | 0 | ||
Adjustment of provision to tax return | 57 | (584) | (311) | ||
Change in valuation allowances | (1,583) | (695) | (595) | ||
Change in unrecognized tax benefits | (92) | (94) | (108) | ||
Other | 179 | 104 | 195 | ||
Total tax (expense)/benefit | $ (357) | $ (217) | $ 41 | ||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | |
Income Tax [Line Items] | |||||
Domestic | $ (2,543) | $ (3,671) | $ (3,249) | ||
International | (2,444) | (60) | 244 | ||
Loss from continuing operations before income tax | $ (4,987) | $ (3,731) | $ (3,005) | ||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets - current | ||
Prepaid commission agreement | $ 1,277 | $ 1,277 |
Depreciation and impairment | 2,287 | 2,214 |
Other | 323 | 326 |
Less: Valuation allowances | (3,887) | (3,817) |
Deferred Tax Assets, Net of Valuation Allowance, Current | 0 | 0 |
Deferred tax assets - non current | ||
Net operating losses | 65,021 | 63,427 |
Stock options | 938 | 920 |
Less: Valuation allowances | (65,900) | (64,073) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 59 | 274 |
Deferred tax liabilities - non current | ||
Dividend withholding tax | (5,654) | 0 |
Acquisition of intangibles | 0 | (29) |
Deferred Tax Liabilities | (5,654) | (29) |
Net deferred tax (liabilities)/assets | $ (5,595) | $ 245 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||
Beginning Balance | $ 4,088 | $ 4,061 |
Additions based on tax positions related to the current year | 429 | 58 |
Reduction due to lapse of statutory limitation | (248) | |
Reductions for tax positions of prior years | (29) | (31) |
Ending Balance | $ 4,240 | $ 4,088 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expenses | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 185,400,000 | $ 182,300,000 |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 10,000,000 | 6,500,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0 | 270,000 |
Income Tax Examination, Penalties and Interest Expense | 440,000 | 67,000 |
Income Tax Examination, Penalties and Interest Accrued | $ 0 | $ 440,000 |
Operating Loss Carryforward, Expiration Period | 20 years | |
Additional Paid-in Capital [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | $ 60,700,000 | |
Pre-Quasi-Reorganization [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | 61,300,000 | |
Post-Quasi-Reorganization [Member] | ||
Income tax expenses | ||
Deferred Tax Assets, Valuation Allowance | $ 8,500,000 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Discontinued Operations [Line Items] | |||||||
Impairment of assets | $ (1,300) | ||||||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | [1] | $ (4,391) | $ 4,768 | [2] | $ 133 | [2] | |
Cambodia Gaming Operations [Member] | |||||||
Discontinued Operations [Line Items] | |||||||
Revenues from gaming operations | 5,474 | 15,485 | 13,617 | ||||
Cost of gaming operations | (3,331) | (7,708) | (8,472) | ||||
Selling, general and administrative expenses | (539) | (939) | (1,693) | ||||
Gain/(loss) on disposal of assets | 1,951 | 44 | 123 | ||||
Impairment of assets | [3] | 0 | (2,563) | (35) | |||
Foreign currency exchange (loss)/gain | (3) | (29) | 7 | ||||
Depreciation and amortization | (15) | (39) | (60) | ||||
Other income | 9 | 5 | 6 | ||||
Dividend withholding tax and other taxes, net | (5,347) | 0 | 0 | ||||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | (1,801) | 4,256 | 3,493 | ||||
Gaming Products [Member] | |||||||
Discontinued Operations [Line Items] | |||||||
Revenues from gaming operations | 1,612 | 13,382 | 5,998 | ||||
Cost of gaming operations | (2,096) | (11,252) | (7,781) | ||||
Selling, general and administrative expenses | [4] | (1,993) | (918) | (881) | |||
Gain/(loss) on disposal of assets | 1,287 | (426) | (105) | ||||
Impairment of assets | [5] | (1,276) | 0 | (107) | |||
Research and development expenses | (105) | (149) | (387) | ||||
Foreign currency exchange (loss)/gain | 9 | (65) | 1 | ||||
Depreciation and amortization | (37) | (79) | (99) | ||||
Other income | 9 | 19 | 1 | ||||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | $ (2,590) | $ 512 | $ (3,360) | ||||
[1] | Amounts for the years ended December 31, 2016, 2015 and 2014 included related party sales of approximately $167,000, $7.8 million and $3.9 million and related party services fees of approximately $240,000, $281,000 and $276,000, respectively. | ||||||
[2] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. | ||||||
[3] | For the year ended December 31, 2015, the Company recorded a non-cash impairment charge of approximately $2.6 million primarily associated with the write-down of building infrastructure and related gaming assets for Dreamworld Club (Poipet) as well as the write-down of prepaid leases and other assets related to previously planned gaming projects that were no longer intended to pursue. | ||||||
[4] | The Company incurred approximately $487,000 in expenses related to the termination of the gaming products factory lease in September 2016. For the year ended December 31, 2016, the Company incurred approximately $830,000 in legal fees related to DPD Limited, formerly known as Dolphin Products Limited. | ||||||
[5] | In the three-month period ended June 30, 2016, the Company recorded a non-cash impairment charge of approximately $1.3 million associated with the write-down of the remaining gaming operations assets, including certain machinery, leasehold improvements and office equipment, which could not be utilized in its other operations. |
Discontinued Operations (Deta85
Discontinued Operations (Details Textual) - USD ($) | Jul. 06, 2016 | May 11, 2016 | Dec. 21, 2016 | Oct. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | Oct. 31, 2014 | Jun. 20, 2014 | |
Discontinued Operations [Line Items] | |||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 363,000 | ||||||||||||
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down | $ 1,300,000 | ||||||||||||
Gain (Loss) on Disposition of Business | $ 90,000 | ||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 758,000 | $ 7,000 | $ 11,000 | [1] | |||||||||
Disposal Group, Including Discontinued Operation, Rental Income | $ 520,000 | ||||||||||||
Maximum Earn Out Payment Based On Revenue | 900,000 | ||||||||||||
Legal Fees | $ 830,000 | ||||||||||||
Selling, General and Administrative Expenses [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Business Exit Costs | $ 487,000 | ||||||||||||
Related Party Casinos [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Maximum Earn Out Payment Based On Revenue | $ 10,000,000 | ||||||||||||
Earn Out Payment Based On Revenue Percentage | 15.00% | ||||||||||||
Next FiveYear [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Maximum Earn Out Payment Based On Revenue | $ 500,000,000 | ||||||||||||
Earn Out Payment Based On Revenue Percentage | 3.00% | ||||||||||||
Next FiveYear [Member] | Related Party Casinos [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Maximum Earn Out Payment Based On Revenue | $ 30,000,000 | ||||||||||||
Earn Out Payment Based On Revenue Percentage | 3.00% | ||||||||||||
Dreamworld Club Poipet [Member] | Property, Plant and Equipment, Other Types [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 900,000 | ||||||||||||
Dreamworld Leisure (Pailin) Limited [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||||
Disposal Group Including Discontinued Operation Initial Consideration Received | $ 100,000 | ||||||||||||
Disposal Group Including Discontinued Operation Remaining Consideration Monthly Installment Amount | 25,000 | ||||||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 500,000 | ||||||||||||
Naga World Limited [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 2,500,000 | ||||||||||||
Thansur Bokor [Member] | |||||||||||||
Discontinued Operations [Line Items] | |||||||||||||
Proceeds from Sale of Property, Plant, and Equipment | $ 250,000 | ||||||||||||
GPI [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 | ||||||||||||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. |
Commitments and Contingencies86
Commitments and Contingencies (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies [Line Items] | |
Total Payments - 2017 | $ 212 |
Total Payments - 2018 | 0 |
Total Payments - 2019 | 0 |
Total Payments - 2020 | 0 |
Total Payments - 2021 | 0 |
Total Payments - Thereafter | 0 |
Operating Leases Sublease Proceeds - 2017 | 0 |
Operating Leases Sublease Proceeds - 2018 | 0 |
Operating Leases Sublease Proceeds - 2019 | 0 |
Operating Leases Sublease Proceeds - 2020 | 0 |
Operating Leases Sublease Proceeds - 2021 | 0 |
Operating Leases Sublease Proceeds - Thereafter | 0 |
Net Payments - 2017 | 212 |
Net Payments - 2018 | 0 |
Net Payments - 2019 | 0 |
Net Payments - 2020 | 0 |
Net Payments - 2021 | 0 |
Net Payments - Thereafter | $ 0 |
Commitments and Contingencies87
Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments And Contingencies [Line Items] | |||
Operating Leases, Rent Expense | $ 304,000 | $ 209,000 | $ 273,000 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | [1] | Dec. 31, 2014 | [1] | ||
Basic | ||||||
Net loss attributable to equity shareholders | $ (5,344) | $ (3,948) | $ (2,964) | |||
Net loss attributable to equity shareholders - Number of Shares | 14,464 | 14,457 | 8,188 | |||
Net loss attributable to equity shareholders, Per share Amount (in dollars per share) | $ (0.37) | $ (0.27) | $ (0.36) | |||
Effect of dilutive securities | ||||||
Dilutive stock options/restricted shares | [2] | 0 | 0 | 0 | ||
Diluted | ||||||
Net loss attributable to equity shareholders plus assumed conversion | $ (5,344) | $ (3,948) | $ (2,964) | |||
Net loss attributable to equity shareholders plus assumed conversion - Number of shares | 14,464 | 14,457 | 8,188 | |||
Net loss attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | $ (0.37) | $ (0.27) | $ (0.36) | |||
[1] | Amounts for the years ended December 31, 2015 and 2014 have been reclassified to conform to the current year presentation, including the impact of discontinued operations. | |||||
[2] | For the years end December 31, 2016, 2015 and 2014, there were no differences in diluted loss per share from basic loss from continuing operations per share as the assumed exercise of common stock equivalents would have an anti-dilutive effect due to losses. |
Loss Per Share (Details Textual
Loss Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Loss Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 718,934 | 740,185 | 719,399 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Service cost | $ 5 | $ 8 |
Interest cost on benefits obligation | 1 | 1 |
Recognized actuarial gain | (11) | (11) |
Net periodic benefit | $ (5) | $ (2) |
Retirement Plan (Details 1)
Retirement Plan (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at the beginning | $ 23 | $ 29 |
Service cost | 5 | 8 |
Interest cost | 1 | 1 |
Actuarial gain and others | (6) | (15) |
Balance at the ending | $ 23 | $ 23 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance at the beginning | $ 99 | $ 92 |
Accretion expense | 0 | 7 |
Reduction | (99) | 0 |
Balance at the ending | $ 0 | $ 99 |
Accumulated Other Comprehensi93
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Defined Benefit Pension Plan, Beginning Balance | $ 90 | $ 87 | $ 99 |
Defined Benefit Pension Plan, Current period other comprehensive (loss)/income | (5) | 3 | (12) |
Defined Benefit Pension Plan, Ending Balance | 85 | 90 | 87 |
Foreign Currency Translation, Beginning Balance | 619 | 666 | 643 |
Foreign Currency Translation, Current period other comprehensive (loss)/income | (119) | (47) | 23 |
Foreign Currency Translation, Ending Balance | 500 | 619 | 666 |
Accumulated Other Comprehensive Income, Beginning Balance | 709 | 753 | 742 |
Accumulated Other Comprehensive Income, Current period other comprehensive (loss)/income | (124) | (44) | 11 |
Accumulated Other Comprehensive Income, Ending Balance | $ 585 | $ 709 | $ 753 |