Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Entertainment Gaming Asia Inc. | |
Entity Central Index Key | 1,004,673 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | EGT | |
Entity Common Stock, Shares Outstanding | 14,464,220 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 31,705 | $ 33,599 |
Accounts receivable, net | 126 | 128 |
Other receivables | 1,079 | 1,051 |
Inventories | 12 | 21 |
Prepaid expenses and other current assets | 290 | 235 |
Total current assets | 33,212 | 35,034 |
Gaming equipment, net | 322 | 389 |
Property and equipment, net | 892 | 915 |
Goodwill | 312 | 315 |
Intangible assets, net | 1,472 | 1,512 |
Deferred tax asset | 59 | 59 |
Prepayments, deposits and other assets | 1,209 | 1,204 |
Total assets | 37,478 | 39,428 |
Current liabilities: | ||
Accounts payable | 336 | 79 |
Amounts due to related parties | 205 | 160 |
Accrued expenses | 825 | 1,118 |
Income tax payable | 197 | 161 |
Deferred revenue | 17 | 2 |
Customer deposits and other current liabilities | 73 | 54 |
Total current liabilities | 1,653 | 1,574 |
Other liabilities | 446 | 441 |
Deferred tax liability | 5,654 | 5,654 |
Total liabilities | 7,753 | 7,669 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $.001 par value, 250,000,000 shares authorized; 14,464,220 shares issued and outstanding | 14 | 14 |
Additional paid-in-capital | 47,854 | 47,827 |
Accumulated other comprehensive income | 565 | 585 |
Accumulated losses | (18,709) | (16,668) |
Total EGT stockholders' equity | 29,724 | 31,758 |
Non-controlling interest | 1 | 1 |
Total stockholders' equity | 29,725 | 31,759 |
Total liabilities and stockholders' equity | $ 37,478 | $ 39,428 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
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 - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | ||
Revenues: | ||||
Gaming operations | $ 379 | $ 604 | ||
Social gaming | 37 | 0 | ||
Total revenues | 416 | 604 | ||
Cost of gaming operations | ||||
Gaming property and equipment depreciation | 67 | 104 | ||
Casino contract amortization | 0 | 93 | ||
Other gaming related intangibles amortization | 0 | 63 | ||
Other operating costs | 161 | 162 | ||
Cost of social gaming | 143 | 0 | ||
Selling, general and administrative expenses | [2] | 1,805 | 758 | |
Research and development expenses | 215 | 397 | ||
Depreciation and amortization | 22 | 24 | ||
Total operating costs and expenses | 2,413 | 1,601 | ||
Loss from continuing operations | (1,997) | (997) | ||
Other income/(expenses): | ||||
Interest income | 61 | 2 | ||
Foreign currency (losses)/gains | (23) | 46 | ||
Other | 3 | 4 | ||
Total other income | 41 | 52 | ||
Loss from continuing operations before income tax | (1,956) | (945) | ||
Income tax expenses | (37) | (29) | ||
Net loss from continuing operations | (1,993) | (974) | ||
Net loss from discontinued operations, net of tax | [3] | (48) | (501) | |
Net loss attributable to EGT stockholders | (2,041) | (1,475) | ||
Other comprehensive (loss)/income: | ||||
Foreign currency translation | (20) | 29 | ||
Total other comprehensive (loss)/income, net of tax | (20) | 29 | ||
Comprehensive loss attributable to EGT stockholders | $ (2,061) | $ (1,446) | ||
Per share data (basic and diluted): | ||||
Loss | $ (0.14) | $ (0.10) | ||
Loss from continuing operations (in dollars per share) | (0.14) | (0.07) | ||
Loss from discontinued operations, net of tax (in dollars per share) | $ 0 | $ (0.03) | ||
Weighted average common shares outstanding: | ||||
Basic and diluted (in shares) | 14,464 | 14,460 | ||
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. | |||
[2] | Amounts for the three-month periods ended March 31, 2017 and 2016 included related party services fees of approximately $102,000 and $64,000, respectively. | |||
[3] | Amounts for the three-month periods ended March 31, 2017 and 2016 included related party sales of NIL and approximately $159,000 and related party services fees of NIL and approximately $63,000, respectively. |
Consolidated Statements of Com5
Consolidated Statements of Comprehensive Loss [Parenthetical] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Discontinued Operations, Disposed of by Sale [Member] | ||
Revenue from Related Parties | $ 0 | $ 159,000 |
Related Party Transaction, Expenses from Transactions with Related Party | 0 | 63,000 |
Selling, General and Administrative Expenses [Member] | ||
Related Party Transaction, Expenses from Transactions with Related Party | $ 102,000 | $ 64,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | [1] | |
Cash flows (used in)/provided by operating activities: | |||
Net loss from continuing operations | $ (1,993) | $ (974) | |
Adjustments to reconcile net loss from continuing operations to net cash (used in)/ provided by operating activities: | |||
Foreign currency losses | 0 | 17 | |
Depreciation of gaming equipment and property and equipment | 89 | 128 | |
Amortization of casino contracts | 0 | 93 | |
Amortization of intangible assets | 97 | 63 | |
Stock-based compensation expenses | 27 | 14 | |
Changes in operating assets and liabilities: | |||
Accounts receivable and other receivables | 4 | 35 | |
Inventories | 9 | (33) | |
Prepaid expenses and other current assets | (86) | (13) | |
Prepayments, deposits and other assets | (7) | (15) | |
Accounts payable | 258 | 28 | |
Amounts due from/to related parties | 45 | (213) | |
Accrued expenses and other liabilities | (118) | (38) | |
Income tax payable | 37 | 13 | |
Customer deposits and other current liabilities | 28 | 0 | |
Deferred revenue | 15 | 0 | |
Operating cash used in continuing operations | (1,595) | (895) | |
Operating cash (used in)/provided by discontinued operations | (229) | 1,311 | |
Net cash (used in)/provided by operating activities | (1,824) | 416 | |
Cash flows used in investing activities: | |||
Purchases of property and equipment | (2) | (11) | |
Development/purchase of intangibles | (59) | (334) | |
Investing cash used in continuing operations | (61) | (345) | |
Investing cash used in discontinued operations | 0 | (36) | |
Net cash used in investing activities | (61) | (381) | |
Effect of exchange rate changes on cash | (9) | (31) | |
(Decrease)/increase in cash and cash equivalents | (1,894) | 4 | |
Cash and cash equivalents at beginning of period | 33,599 | 30,681 | |
Cash and cash equivalents at end of period | $ 31,705 | $ 30,685 | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
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 and applications designed for the Pan-Asian markets. During the three-month period ended March 31, 2016, the Company’s business activities included owning and leasing EGMs on a revenue-sharing (participation) and fixed-lease basis in Cambodia. These leasing contracts were terminated and the related assets were sold during the year ended December 31, 2016. Also during the three-month period ended March 31, 2016, the Company operated a 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. These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on April 11, 2017. These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. A discontinued operation is a component of an entity (or group of components) that either has been disposed of, or that is classified as held for sale, and represents a strategic shift that has (or will have) a major effect on the Company’s operations and financial results. Non-current assets held for discontinued operations are carried at the lower of carrying amount or fair value less costs to sell. Any gain or loss from disposal of a business, together with the results of these operations until the date of disposal, is reported separately as discontinued operations. The financial information of discontinued operations is excluded from the respective captions in the Company’s consolidated statements of comprehensive loss and related notes for all periods presented. All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of March 31, 2017, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 31.5 Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. There were no lower of cost or market (LCM) write-downs for the continuing operations The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360, Property, Plant and Equipment Prepayments, deposits and other assets consist primarily of other receivables, rental and utilities and other deposits. Gaming equipment consists primarily of EGMs and systems. Gaming equipment is stated at cost. The Company depreciates new EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 65,000 101,000 324,000 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 six 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 $ 2,000 3,000 Depreciation of property and equipment of approximately $ 1,000 352,000 Intangible assets consist of patents, trademarks, technical know-how, a gaming operations agreement, casino contracts, capitalized software costs and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria met for capitalization are expensed to research and development expenses as incurred. Management has committed resources to develop social gaming applications, and it is probable that these social gaming applications will be completed and the software will be used as intended. Such capitalized costs are amortized on the straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts for the Philippines gaming operations of NIL and approximately $ 93,000 63,000 Amortization expenses related to internal-use software of approximately $ 97,000 Amortization expenses related to casino contracts for the discontinued Cambodia gaming operations were NIL and approximately $ 341,000 6,000 6,000 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 three-month periods ended March 31, 2017 and 2016. In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 16. ASC 450, Contingencies, The Company recognizes revenue when all of the following have been satisfied: · Persuasive evidence of an arrangement exists; · The price to the customer is fixed and determinable; · Delivery has occurred and any acceptance terms have been fulfilled; · No significant contractual obligations remain; and · Collection is reasonably assured. Gaming Operations Revenue 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. During the reported periods, revenues were based on either the Company’s share of net winnings and reimbursement of expenses and commitment fees, or a fixed lease fee, which was applicable for one venue under the now discontinued Cambodia gaming operations for the period of March 1, 2016 through June 30, 2016. 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 for the three-month periods ended March 31, 2017 and 2016. 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 March 31, 2017 and December 31, 2016. Social Gaming The Company is currently testing a social gaming platform and applications 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 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 periods 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 Under the fair value recognition provisions of ASC 718, Compensation-Stock Compensation 27,000 14,000 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 $ 215,000 397,000 Leases are classified at the inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions 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 March 31, 2017 and December 31, 2016. 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 period. Diluted earnings per share is computed by dividing the net (loss)/earnings 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 period. 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. (US$1 to foreign currency) March 31, 2017 December 31, 2016 Australian dollar 1.31 1.39 Hong Kong dollar 7.77 7.75 Philippine peso 50.19 49.81 Thai baht 34.34 35.26 Three-Month Period Ended March 31, (US$1 to foreign currency) 2017 2016 Australian dollar 1.32 1.33 Hong Kong dollar 7.76 7.76 Philippine peso 49.99 46.72 Thai baht 35.20 35.20 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 March 31, 2017, the fair values of financial assets and liabilities approximate carrying values due to the short maturity 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. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income for the three-month periods ended March 31, 2017 and 2016. 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 three-month periods ended March 31, 2017 and 2016, 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. 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 clarify 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 does not expect the impact of the adoption of this ASU to be material to 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 | 3 Months Ended |
Mar. 31, 2017 | |
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) social gaming, which includes the development and testing of a social gaming platform and applications 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 revenue-sharing and fixed lease basis. In addition, the Company operated a 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 a series of transactions during the year ended December 31, 2016, the Company sold all the assets associated with its Cambodia gaming operations and, by December 31, 2016, had exited its Cambodia gaming operations. The Company sold the principal assets of its gaming products operations on May 11, 2016 and thereby exited this business. All related historical revenues and expenses for the Cambodia gaming operations and 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. The following table presents the financial information for each of the Company’s continuing operating segments. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (1) (Unaudited) (Unaudited) Revenues: Gaming operations $ 379 $ 604 Social gaming 37 Total revenues $ 416 $ 604 Operating (loss)/income: Gaming operations $ 151 $ 182 Social gaming (321) (397) Corporate and other operating costs and expenses (1,827) (782) Total operating loss $ (1,997) $ (997) Depreciation and amortization: Gaming operations $ 67 $ 260 Social gaming 104 Corporate 15 24 Total depreciation and amortization $ 186 $ 284 (1) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. Geographic segment revenues of the Company’s continuing operations segments for the three-month periods ended March 31, 2017 and 2016 are as follows: Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (1) (Unaudited) (Unaudited) Philippines 404 604 Others 12 Total $ 416 $ 604 (1) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. For the three-month periods ended March 31, 2017 and 2016, the largest customer for gaming operations represented approximately 63 43 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note 3. Inventories (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Spare parts $ 12 $ 21 Total $ 12 $ 21 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 3 Months Ended |
Mar. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Deferred Costs Capitalized Prepaid And Other Assets [Text Block] | Note 4. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Prepayments $ 171 $ 49 Prepaid insurance 119 186 Total $ 290 $ 235 |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 5. Receivables Accounts and other receivables consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Trade receivables $ 126 $ 135 Other receivables (1) 1,079 1,051 1,205 1,186 Less: allowance for doubtful accounts (7) Net $ 1,205 $ 1,179 (1) As of March 31, 2017 and December 31, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment
Gaming Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Electronic Gaming Machines EGMs and Systems [Text Block] | Note 6. Gaming Equipment (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) EGMs 3-5 $ 3,518 $ 3,722 Systems 5 972 979 4,490 4,701 Less: accumulated depreciation (4,168) (4,312) Net carrying value $ 322 $ 389 Depreciation expense of gaming equipment of approximately $ 65,000 101,000 Depreciation expense o 324,000 |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property And Equipment Excluding Gaming Equipment And Systems Disclosure [Text Block] | Note 7. Property and Equipment (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) Equipment, vehicles, furniture and fixtures 3-5 $ 607 $ 606 Land and building 5 797 797 Leasehold improvements 1-6 45 45 1,449 1,448 Less: accumulated depreciation (557) (533) Net carrying value $ 892 $ 915 Depreciation expense of property and equipment of approximately $ 2,000 3,000 Depreciation expense of property and equipment of approximately $ 1,000 352,000 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, including Casino Contracts | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8. Goodwill and Intangible Assets, including Casino Contracts (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) Gaming operation agreement 4-5 $ 1,164 $ 1,166 Less: accumulated amortization (1,164) (1,166) Goodwill N/A 312 315 Casino contracts 5-6 1,927 1,942 Less: accumulated amortization (1,927) (1,942) Internal-use software (1) 4 1,730 1,673 Less: accumulated amortization (258) (161) 1,472 1,512 Net carrying value $ 1,784 $ 1,827 (1) Internal-use software relates to the development of the social gaming platform and applications. Amortization expense for finite-lived intangible assets of NIL and approximately $ 156,000 Amortization expense for internal-use software of approximately $ 97,000 (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ 315 $ 332 Foreign currency translation adjustment (3) (17) Balance as of March 31/December 31 $ 312 $ 315 |
Prepayments, Deposits and Other
Prepayments, Deposits and Other Assets | 3 Months Ended |
Mar. 31, 2017 | |
Prepaid Deposits and Other Assets Disclosure [Abstract] | |
Prepaid Deposits and Other Assets Noncurrent Disclosure [Text Block] | Note 9. Prepayments, Deposits and Other Assets (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Rentals, utilities and other deposits $ 233 $ 228 Other receivables (1) 976 976 Total $ 1,209 $ 1,204 (1) Other receivables as of March 31, 2017 and December 31, 2016 included approximately $ 976,000 |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses Disclosure [Text Block] | Note 10. Accrued Expenses Accrued expenses consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Payroll and related costs $ 255 $ 323 Professional fees 151 243 Other tax expenses 294 266 Other expenses 125 286 Total $ 825 $ 1,118 |
Other Liabilities
Other Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Other Liabilities Disclosure [Text Block] | Note 11. Other Liabilities Other liabilities consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Other tax liabilities $ 423 $ 418 Other 23 23 Total $ 446 $ 441 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 12. Stock-Based Compensation 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. On July 18, 2016, the Company’s shareholders approved a new 2016 Stock Incentive Plan. The 2016 plan was amended and restated the 2008 plan to bring it in alignment with the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. The Company’s equity incentive plans are subject to the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited as a result of becoming an indirect majority-owned subsidiary of Melco International Development Limited, a company listed on the main board of the Hong Kong Stock Exchange. 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 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 In the three-month period ended March 31, 2017, there were no grants of stock options or restricted stock awards and no exercises of outstanding stock options. Under the previous 1999 plans, a total of 956,250 937,500 18,750 As of March 31, 2017, stock options for the purchase of 70,314 1,563 As of March 31, 2017, stock options for the purchase of 186,339 459,155 As of March 31, 2017, stock options for the purchase of 258,216 8.56 3.37 22,000 459,155 78,000 2.12 Weighted Average Remaining Contractual Aggregate Number of Weighted Average Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2016 718,934 $ 4.40 6.85 $ 6 Granted Exercised Forfeited or expired (1,563) 38.77 Outstanding as of March 31, 2017 717,371 4.32 6.62 22 Exercisable as of March 31, 2017 258,216 $ 8.56 2.24 $ 22 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 with performance criteria are measured at the earlier of the performance commitment date or the service completion date using the Black-Scholes-Merton option-pricing model. Option valuation models require the input of highly subjective assumptions, and changes in assumptions used can materially affect the fair value estimates. The Company estimates the expected life of the award by taking into consideration the vesting period, contractual term, historical exercise data, expected volatility, blackout periods and other relevant factors. Volatility is estimated by evaluating the Company’s historical volatility data. The risk-free interest rate on the measurement date is based on U.S. Treasury constant maturity rates for a period approximating the expected life of the award. The Company historically has not paid dividends, nor does it expect to pay dividends in the foreseeable future and, therefore, the expected dividend rate is zero. Three-Month Period Ended March 31, 2017 2016 Range of values: Low High Low High Expected volatility 88.12 % 88.77 % 81.78 % 87.26 % Expected dividends Expected term (in years) 4.78 9.24 4.78 7.11 Risk free rate 1.84 % 2.37 % 1.17 % 1.69 % 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. For awards with service conditions and graded vesting that were granted prior to the adoption of ASC 718, the Company estimates the requisite service period and the number of shares expected to vest, and recognizes compensation expense for each tranche on the straight-line basis over the estimated requisite service period. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 13. Related Party Transactions Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Related party transactions provided to: MCE Leisure (Philippines) Corporation Sales of gaming products $ $ 159 Related party transactions provided by: Melco Services Limited Other (1) $ 102 $ 64 Golden Future (Management Services) Limited Management services $ $ 63 (1) The amounts for the three-month periods ended March 31, 2017 and 2016 included 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 51.3 90 72.8 Golden Future (Management Services) Limited is a wholly-owned subsidiary of Melco Crown (Macau) Limited. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 14. Income Taxes The Company recorded income tax expenses for continuing operations of approximately $ 37,000 29,000 1.9 3.1 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 | 3 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 15. Discontinued Operations During the reported periods, the Company’s business activities included discontinued gaming operations in Cambodia on both a revenue-sharing and fixed lease basis and the operation of a 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 The following table details selected financial information for the discontinued Cambodia gaming operations in the consolidated statements of comprehensive loss. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Revenues from gaming operations $ $ 3,246 Cost of gaming operations (1,953) Selling, general and administrative expenses (51) (374) Foreign currency exchange gains 7 8 Depreciation and amortization (1) (8) Other income 1 (Loss)/income from discontinued Cambodia gaming operations, net of tax $ (45) $ 920 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. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Revenues from gaming products $ $ 1,305 Cost of gaming products (1,761) Selling, general and administrative expenses (1) (2) (918) Research and development expenses (50) Foreign currency exchange (losses)/gains (1) 18 Depreciation and amortization (20) Other income 5 Loss from discontinued gaming products operations, net of tax $ (3) $ (1,421) (1) For the three-month period ended March 31, 2016, the Company incurred approximately $ 648,000 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 16. Commitments and Contingencies Legal Matters Gaming Partners International Corporation Litigation On December 21, 2015, Gaming Partners International Corporation (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 | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 17. Loss Per Share Three-Month Period Ended March 31, 2017 2016 (2) (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Loss Shares Amount Loss Shares Amount Basic Net loss attributable to equity shareholders $ (1,993) 14,464 $ (0.14) $ (974) 14,460 $ (0.07) Effect of dilutive securities Dilutive stock options/restricted shares (1) Diluted Net loss attributable to equity shareholders plus assumed conversion $ (1,993) 14,464 $ (0.14) $ (974) 14,460 $ (0.07) (1) For the three-month periods ended March 31, 2017 and 2016, 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. (2) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. For the three-month periods ended March 31, 2017 and 2016, outstanding stock options of 709,404 743,630 |
Retirement Plan
Retirement Plan | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 18. Retirement Plan The components of accrued retirement benefits consisted of the following: (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ 23 $ 23 Service cost 5 Interest cost 1 Actuarial gain and others (6) Balance as of March 31/December 31 $ 23 $ 23 |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure [Text Block] | Note 19. Asset Retirement Obligations Reconciliations of the carrying amounts of the Company’s asset retirement obligations consisted of the following: (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ $ 99 Reduction (99) Accretion expense Balance as of March 31/December 31 $ $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 20. Accumulated Other Comprehensive Income Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances as of January 1, 2016 $ 90 $ 619 $ 709 Current period other comprehensive loss (5) (119) (124) Balances as of December 31, 2016 85 500 585 Current period other comprehensive loss (20) (20) Balances as of March 31, 2017 (Unaudited) $ 85 $ 480 $ 565 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 21. Subsequent Events On May 3, 2017, the Company entered into a non-binding memorandum of understanding to sell its remaining operating assets in the Philippines for cash consideration of approximately $ 1.9 1.3 On May 5, 2017, Melco International Development Limited, the Company’s indirect majority shareholder, submitted a preliminary non-binding proposal to the board of directors of the Company to acquire all of the outstanding common stock not already owned by Melco’s wholly-owned subsidiary, EGT Entertainment or its affiliates, for $ 2.35 |
Description of Business and S28
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation These consolidated financial statements are prepared pursuant to generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and reflect all adjustments, consisting of normal recurring adjustments and other adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company, for the respective periods presented. The results of operations for an interim period are not necessarily indicative of the results that may be expected for any other interim period or the year as a whole. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on April 11, 2017. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation These consolidated financial statements include the accounts of Entertainment Gaming Asia Inc. and all its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain prior period amounts in the consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The Company is required to make estimates, judgments and assumptions that it believes are reasonable based on its historical experience, contract terms, observance of known trends in the Company and the industry as a whole, and information available from other outside sources. These estimates affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. On a regular basis, the Company evaluates its estimates, including those related to revenue recognition, product returns, long-lived assets, inventory obsolescence, stock-based compensation, income taxes, bad debts, warranty obligations, long-term contracts, contingencies and litigation. Actual results may differ from those estimates. |
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations A discontinued operation is a component of an entity (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 and related notes for all periods presented. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents All highly-liquid instruments with original maturities of three months or less are considered cash equivalents. The Company places its cash and temporary investments with financial institutions. As of March 31, 2017, the Company had deposits with financial institutions in excess of Federal Deposit Insurance Corporation (FDIC) insured limits by approximately $ 31.5 |
Accounts Receivable And Allowance For Doubtful Accounts [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are stated at face value less any allowances for doubtful accounts. Allowances for doubtful accounts are maintained at levels determined by Company management to adequately provide for uncollectible amounts. In determining the estimated uncollectable amounts, the Company evaluates a combination of factors, including, but not limited to, activity in the related market, financial condition of customers, specific customer collection experience and history of write-offs and collections. Interest income is imposed on overdue accounts receivable after the Company evaluates a combination of factors, including but not limited to, customer collection experiences, customer relationship and contract terms. Accounts receivable balances are written off after all collection efforts have been exhausted. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out method, or market. Cost elements included in work-in-process and finished goods include raw materials, direct labor and manufacturing overheads. There were no lower of cost or market (LCM) write-downs for the continuing operations |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Long-Lived Assets The Company accounts for impairment of long-lived assets in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360, Property, Plant and Equipment |
Prepaid Deposits And Other Assets [Policy Text Block] | Prepayments, Deposits and Other Assets Prepayments, deposits and other assets consist primarily of other receivables, rental and utilities and other deposits. |
Electronic Gaming Machines EGMs and Systems [Policy Text Block] | Gaming Equipment Gaming equipment consists primarily of EGMs and systems. Gaming equipment is stated at cost. The Company depreciates new EGMs and systems over a five-year useful life and depreciates refurbished EGMs and systems over a three-year useful life once placed in service. Depreciation of gaming equipment of approximately $ 65,000 101,000 324,000 |
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 six 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 $ 2,000 3,000 Depreciation of property and equipment of approximately $ 1,000 352,000 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible assets consist of patents, trademarks, technical know-how, a gaming operations agreement, casino contracts, capitalized software costs and goodwill. Intangible assets other than goodwill are amortized on the straight-line basis over the period of time the asset is expected to contribute directly or indirectly to future cash flows, which ranges from four to ten years. The straight-line amortization method is utilized because the Company believes there is no more reliably determinable method of reflecting the pattern for which the economic benefits of the intangible assets are consumed or otherwise used. The Company capitalizes certain costs relating to software developed to solely meet the Company’s internal requirements and for which there are no substantive plans to market the software. These costs mainly include payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use software projects during the application development stage until the software is substantially complete and ready for its intended use. Costs incurred prior to the criteria met for capitalization are expensed to research and development expenses as incurred. Management has committed resources to develop social gaming applications, and it is probable that these social gaming applications will be completed and the software will be used as intended. Such capitalized costs are amortized on the straight-line basis over the estimated useful life of the related assets. Amortization expenses related to casino contracts for the Philippines gaming operations of NIL and approximately $ 93,000 63,000 Amortization expenses related to internal-use software of approximately $ 97,000 Amortization expenses related to casino contracts for the discontinued Cambodia gaming operations were NIL and approximately $ 341,000 6,000 6,000 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 three-month periods ended March 31, 2017 and 2016. |
Litigation And Other Contingencies [Policy Text Block] | Litigation and Other Contingencies In the performance of its ordinary course of business operations, the Company is subject to risks of various legal matters, litigation and claims of various types. The Company has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. See Note 16. ASC 450, Contingencies, |
Revenue Recognition, Policy [Policy Text Block] | 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. During the reported periods, revenues were based on either the Company’s share of net winnings and reimbursement of expenses and commitment fees, or a fixed lease fee, which was applicable for one venue under the now discontinued Cambodia gaming operations for the period of March 1, 2016 through June 30, 2016. 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 for the three-month periods ended March 31, 2017 and 2016. 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 March 31, 2017 and December 31, 2016. Social Gaming The Company is currently testing a social gaming platform and applications 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 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 periods 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 27,000 14,000 |
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 $ 215,000 397,000 |
Lease, Policy [Policy Text Block] | Leases Leases are classified at the inception date as either a capital lease or an operating lease. A lease is a capital lease if any of the following conditions 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 March 31, 2017 and December 31, 2016. |
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 period. Diluted earnings per share is computed by dividing the net (loss)/earnings |
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 period. 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. (US$1 to foreign currency) March 31, 2017 December 31, 2016 Australian dollar 1.31 1.39 Hong Kong dollar 7.77 7.75 Philippine peso 50.19 49.81 Thai baht 34.34 35.26 Three-Month Period Ended March 31, (US$1 to foreign currency) 2017 2016 Australian dollar 1.32 1.33 Hong Kong dollar 7.76 7.76 Philippine peso 49.99 46.72 Thai baht 35.20 35.20 |
Fair Value Measurement, Policy [Policy Text Block] | 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 March 31, 2017, the fair values of financial assets and liabilities approximate carrying values due to the short maturity of these items. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Defined Benefit Pension Plan The Company provides pension benefits to all regular full-time employees 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. There were no adjustments for unrecognized actuarial gains or losses and past service costs or credits to equity through other comprehensive income for the three-month periods ended March 31, 2017 and 2016. |
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 three-month periods ended March 31, 2017 and 2016, 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 clarify 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 does not expect the impact of the adoption of this ASU to be material to 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 S29
Description of Business and Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Foreign Currency Translations and Transactions [Table Text Block] | Below is a summary of closing exchange rates as of March 31, 2017 and December 31, 2016 and average exchange rates for the three-month periods ended March 31, 2017 and 2016. (US$1 to foreign currency) March 31, 2017 December 31, 2016 Australian dollar 1.31 1.39 Hong Kong dollar 7.77 7.75 Philippine peso 50.19 49.81 Thai baht 34.34 35.26 Three-Month Period Ended March 31, (US$1 to foreign currency) 2017 2016 Australian dollar 1.32 1.33 Hong Kong dollar 7.76 7.76 Philippine peso 49.99 46.72 Thai baht 35.20 35.20 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | The following table presents the financial information for each of the Company’s continuing operating segments. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (1) (Unaudited) (Unaudited) Revenues: Gaming operations $ 379 $ 604 Social gaming 37 Total revenues $ 416 $ 604 Operating (loss)/income: Gaming operations $ 151 $ 182 Social gaming (321) (397) Corporate and other operating costs and expenses (1,827) (782) Total operating loss $ (1,997) $ (997) Depreciation and amortization: Gaming operations $ 67 $ 260 Social gaming 104 Corporate 15 24 Total depreciation and amortization $ 186 $ 284 (1) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Geographic segment revenues of the Company’s continuing operations segments for the three-month periods ended March 31, 2017 and 2016 are as follows: Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (1) (Unaudited) (Unaudited) Philippines 404 604 Others 12 Total $ 416 $ 604 (1) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Spare parts $ 12 $ 21 Total $ 12 $ 21 |
Prepaid Expenses and Other Cu32
Prepaid Expenses and Other Current Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule Of Prepaid Expenses And Other Current Assets [Table Text Block] | Prepaid expenses and other current assets consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Prepayments $ 171 $ 49 Prepaid insurance 119 186 Total $ 290 $ 235 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
Schedule Of Accounts And Other Receivables [Table Text Block] | Accounts and other receivables consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Trade receivables $ 126 $ 135 Other receivables (1) 1,079 1,051 1,205 1,186 Less: allowance for doubtful accounts (7) Net $ 1,205 $ 1,179 (1) As of March 31, 2017 and December 31, 2016, other receivables included approximately $ 1.0 |
Gaming Equipment (Tables)
Gaming Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Electronic Gaming Machines Egms and Systems And Other Gaming Equipment Disclosure [Abstract] | |
Disclosure Of Electronic Gaming Machines EGMs and Systems [Table Text Block] | Gaming equipment is stated at cost. The major categories of gaming equipment and accumulated depreciation consisted of the following: (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) EGMs 3-5 $ 3,518 $ 3,722 Systems 5 972 979 4,490 4,701 Less: accumulated depreciation (4,168) (4,312) Net carrying value $ 322 $ 389 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment are stated at cost. The major categories of property and equipment and accumulated depreciation consisted of the following: (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) Equipment, vehicles, furniture and fixtures 3-5 $ 607 $ 606 Land and building 5 797 797 Leasehold improvements 1-6 45 45 1,449 1,448 Less: accumulated depreciation (557) (533) Net carrying value $ 892 $ 915 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets, including Casino Contracts (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Goodwill and intangible assets are stated at cost. The major categories of goodwill and intangible assets and accumulated amortization consisted of the following: (amounts in thousands) Useful Life (years) March 31, 2017 December 31, 2016 (Unaudited) Gaming operation agreement 4-5 $ 1,164 $ 1,166 Less: accumulated amortization (1,164) (1,166) Goodwill N/A 312 315 Casino contracts 5-6 1,927 1,942 Less: accumulated amortization (1,927) (1,942) Internal-use software (1) 4 1,730 1,673 Less: accumulated amortization (258) (161) 1,472 1,512 Net carrying value $ 1,784 $ 1,827 (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 periods consisted of the following: (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ 315 $ 332 Foreign currency translation adjustment (3) (17) Balance as of March 31/December 31 $ 312 $ 315 |
Prepayments, Deposits and Oth37
Prepayments, Deposits and Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Rentals, utilities and other deposits $ 233 $ 228 Other receivables (1) 976 976 Total $ 1,209 $ 1,204 (1) Other receivables as of March 31, 2017 and December 31, 2016 included approximately $ 976,000 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Payroll and related costs $ 255 $ 323 Professional fees 151 243 Other tax expenses 294 266 Other expenses 125 286 Total $ 825 $ 1,118 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Liabilities [Abstract] | |
Other Liabilities [Table Text Block] | Other liabilities consisted of the following: (amounts in thousands) March 31, 2017 December 31, 2016 (Unaudited) Other tax liabilities $ 423 $ 418 Other 23 23 Total $ 446 $ 441 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Options Weighted Average Remaining Contractual Aggregate Number of Weighted Average Life Intrinsic Value Options Exercise Price (in years) (in thousands) Outstanding as of December 31, 2016 718,934 $ 4.40 6.85 $ 6 Granted Exercised Forfeited or expired (1,563) 38.77 Outstanding as of March 31, 2017 717,371 4.32 6.62 22 Exercisable as of March 31, 2017 258,216 $ 8.56 2.24 $ 22 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes the range of assumptions utilized in the Black-Scholes-Merton option-pricing model for the valuation of stock options granted during the three-month periods ended March 31, 2017 and 2016. Three-Month Period Ended March 31, 2017 2016 Range of values: Low High Low High Expected volatility 88.12 % 88.77 % 81.78 % 87.26 % Expected dividends Expected term (in years) 4.78 9.24 4.78 7.11 Risk free rate 1.84 % 2.37 % 1.17 % 1.69 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule Of Transactions With Related Parties [Table Text Block] | Significant revenues, purchases and expenses arising from transactions with related parties consisted of the following: Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Related party transactions provided to: MCE Leisure (Philippines) Corporation Sales of gaming products $ $ 159 Related party transactions provided by: Melco Services Limited Other (1) $ 102 $ 64 Golden Future (Management Services) Limited Management services $ $ 63 (1) The amounts for the three-month periods ended March 31, 2017 and 2016 included fees paid to Melco Services Limited under a management services agreement, which was effective as of January 1, 2015. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Revenues from gaming operations $ $ 3,246 Cost of gaming operations (1,953) Selling, general and administrative expenses (51) (374) Foreign currency exchange gains 7 8 Depreciation and amortization (1) (8) Other income 1 (Loss)/income from discontinued Cambodia gaming operations, net of tax $ (45) $ 920 |
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. Three-Month Period Ended March 31, (amounts in thousands) 2017 2016 (Unaudited) (Unaudited) Revenues from gaming products $ $ 1,305 Cost of gaming products (1,761) Selling, general and administrative expenses (1) (2) (918) Research and development expenses (50) Foreign currency exchange (losses)/gains (1) 18 Depreciation and amortization (20) Other income 5 Loss from discontinued gaming products operations, net of tax $ (3) $ (1,421) (1) For the three-month period ended March 31, 2016, the Company incurred approximately $ 648,000 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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: Three-Month Period Ended March 31, 2017 2016 (2) (Unaudited) (Unaudited) (amounts in thousands, except per Number of Per Share Number of Per Share share data) Loss Shares Amount Loss Shares Amount Basic Net loss attributable to equity shareholders $ (1,993) 14,464 $ (0.14) $ (974) 14,460 $ (0.07) Effect of dilutive securities Dilutive stock options/restricted shares (1) Diluted Net loss attributable to equity shareholders plus assumed conversion $ (1,993) 14,464 $ (0.14) $ (974) 14,460 $ (0.07) (1) For the three-month periods ended March 31, 2017 and 2016, 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. (2) Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Retirement Plan (Tables)
Retirement Plan (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | The components of accrued retirement benefits consisted of the following: (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ 23 $ 23 Service cost 5 Interest cost 1 Actuarial gain and others (6) Balance as of March 31/December 31 $ 23 $ 23 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations [Table Text Block] | Reconciliations of the carrying amounts of the Company’s asset retirement obligations consisted of the following: (amounts in thousands) 2017 2016 (Unaudited) Balance as of January 1 $ $ 99 Reduction (99) Accretion expense Balance as of March 31/December 31 $ $ |
Accumulated Other Comprehensi46
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Comprehensive Income Loss Disclosure [Abstract] | |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The accumulated balances in respect of other comprehensive income consisted of the following: Accumulated Foreign Other Defined Benefit Currency Comprehensive (amounts in thousands) Pension Plan Translation Income Balances as of January 1, 2016 $ 90 $ 619 $ 709 Current period other comprehensive loss (5) (119) (124) Balances as of December 31, 2016 85 500 585 Current period other comprehensive loss (20) (20) Balances as of March 31, 2017 (Unaudited) $ 85 $ 480 $ 565 |
Description of Business and S47
Description of Business and Significant Accounting Policies (Details) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Australian dollar [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 1.31 | 1.39 | |
Average Foreign Currency Exchange Rate Translation | 1.32 | 1.33 | |
Hong Kong Dollar [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 7.77 | 7.75 | |
Average Foreign Currency Exchange Rate Translation | 7.76 | 7.76 | |
Philippine Peso [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 50.19 | 49.81 | |
Average Foreign Currency Exchange Rate Translation | 49.99 | 46.72 | |
Thai baht [Member] | |||
Accounting Polices [Line Items] | |||
Foreign Currency Exchange Rate, Translation | 34.34 | 35.26 | |
Average Foreign Currency Exchange Rate Translation | 35.2 | 35.2 |
Description of Business and S48
Description of Business and Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accounting Polices [Line Items] | |||
Excess Cash Limits, FDIC Insured Amount | $ 31,500,000 | ||
Stock-based compensation expenses | 27,000 | $ 14,000 | [1] |
Product development expenses | $ 215,000 | 397,000 | [1] |
Minimum Percentage Of Tax Benefit Likely To Be Realized Upon Ultimate Settlement | 50.00% | ||
Gaming property and equipment depreciation | $ 65,000 | 101,000 | |
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. | ||
Depreciation | $ 89,000 | 128,000 | [1] |
Amortization of Intangible Assets | 97,000 | 63,000 | [1] |
Gaming Products [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Depreciation | 1,000 | 352,000 | |
Gaming Products [Member] | Discontinued Operations [Member] | |||
Accounting Polices [Line Items] | |||
Depreciation | 324,000 | 324,000 | |
Gaming Operation [Member] | |||
Accounting Polices [Line Items] | |||
Cost of Goods Sold, Depreciation | 2,000 | 3,000 | |
Philippines Gaming Operations [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | 0 | 93,000 | |
Patents and Trademarks [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | 0 | 6,000 | |
Technical Know How [Member] | Gaming Products [Member] | Discontinued Operations [Member] | |||
Accounting Polices [Line Items] | |||
Amortization of Intangible Assets | 0 | 6,000 | |
Other Gaming Related Intangible Assets [Member] | Philippines Gaming Operations [Member] | |||
Accounting Polices [Line Items] | |||
Amortization | 0 | 63,000 | |
Casino Contracts [Member] | Cambodia Gaming Operations [Member] | Discontinued Operations [Member] | |||
Accounting Polices [Line Items] | |||
Amortization of Intangible Assets | 0 | 341,000 | |
Internal Used Software [Member] | |||
Accounting Polices [Line Items] | |||
Amortization of Intangible Assets | $ 97,000 | $ 0 | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Segments (Details)
Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 416 | $ 604 | [1] |
Operating (loss)/income | (1,997) | (997) | [1] |
Depreciation and amortization | 186 | 284 | |
Gaming operations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 379 | 604 | |
Operating (loss)/income | 151 | 182 | |
Depreciation and amortization | 67 | 260 | |
Social Gaming [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 37 | 0 | |
Operating (loss)/income | (321) | (397) | |
Depreciation and amortization | 104 | 0 | |
Corporate and Other Operating Costs and Expenses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating (loss)/income | (1,827) | (782) | |
Depreciation and amortization | $ 15 | $ 24 | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Segments (Details 1)
Segments (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Segment Reporting Information [Line Items] | |||
Revenues | $ 416 | $ 604 | [1] |
Philippines [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 404 | 604 | |
Others [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 12 | $ 0 | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Segments (Details Textual)
Segments (Details Textual) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Gaming Operations [Member] | ||
Segment Reporting Information [Line Items] | ||
Concentration Risk, Percentage | 63.00% | 43.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Spare parts | $ 12 | $ 21 |
Total | $ 12 | $ 21 |
Prepaid Expenses and Other Cu53
Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | $ 290 | $ 235 |
Prepayments [Member] | ||
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | 171 | 49 |
Prepaid insurance [Member] | ||
Prepaid expenses and other current assets [Line Items] | ||
Prepaid expenses and other current assets | $ 119 | $ 186 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Receivables [Line Items] | |||
Trade receivables | $ 126 | $ 135 | |
Other receivables | [1] | 1,079 | 1,051 |
Accounts Receivable, Gross, Current | 1,205 | 1,186 | |
Less: allowance for doubtful accounts | 0 | (7) | |
Net | $ 1,205 | $ 1,179 | |
[1] | As of March 31, 2017 and December 31, 2016, other receivables included approximately $1.0 million in payments due within one year from the sale of the Company’s gaming products operations assets on May 11, 2016. The non-current balance of the future payments receivable is included in prepayments, deposits and other assets. See Note 9. |
Receivables (Details Textual)
Receivables (Details Textual) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
E G M [Member] | ||
Sale of Assets Discontinued Operation Sale Proceeds Due Current | $ 1 | $ 1 |
Gaming Equipment (Details)
Gaming Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $ 4,490 | $ 4,701 |
Less: accumulated depreciation | (4,168) | (4,312) |
Net carrying value | 322 | 389 |
EGMs [Member] | ||
Gaming equipment [Line Items] | ||
Gaming equipment, Gross | $ 3,518 | 3,722 |
EGMs [Member] | Minimum [Member] | ||
Gaming equipment [Line Items] | ||
Tangible Asset, Useful Life | 3 years | |
EGMs [Member] | Maximum [Member] | ||
Gaming equipment [Line Items] | ||
Tangible Asset, Useful Life | 5 years | |
Systems [Member] | ||
Gaming equipment [Line Items] | ||
Tangible Asset, Useful Life | 5 years | |
Gaming equipment, Gross | $ 972 | $ 979 |
Gaming Equipment (Details Textu
Gaming Equipment (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Gaming Equipment [Line Items] | |||
Depreciation | $ 89,000 | $ 128,000 | [1] |
Continuing Operations [Member] | E G M [Member] | |||
Gaming Equipment [Line Items] | |||
Depreciation | 65,000 | 101,000 | |
Segment, Discontinued Operations [Member] | E G M [Member] | |||
Gaming Equipment [Line Items] | |||
Depreciation | $ 0 | $ 324,000 | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Equipment, vehicles, furniture and fixtures | $ 607 | $ 606 |
Land and building | 797 | 797 |
Leasehold improvements | 45 | 45 |
Property, Plant and Equipment, Gross | 1,449 | 1,448 |
Less: accumulated depreciation | (557) | (533) |
Net carrying value | $ 892 | $ 915 |
Equipment, vehicles, furniture and fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Equipment, vehicles, furniture and fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Land and buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Leasehold improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 6 years |
Property and Equipment (Detai59
Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Gaming Products [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | $ 1,000 | $ 352,000 |
Gaming Operation [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost of Goods Sold, Depreciation | $ 2,000 | $ 3,000 |
Goodwill and Intangible Asset60
Goodwill and Intangible Assets, including Casino Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | ||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Net carrying value | $ 1,784 | $ 1,827 | |
Gaming operation agreement [Member] | |||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Definite-life intangible assets | 1,164 | 1,166 | |
Less: accumulated amortization | (1,164) | (1,166) | |
Net carrying value | $ 0 | 0 | |
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 | $ 312 | 315 | |
Casino contracts [Member] | |||
Finite and Indefinite-lived Intangible Assets [Line Items] | |||
Definite-life intangible assets | 1,927 | 1,942 | |
Less: accumulated amortization | (1,927) | (1,942) | |
Net carrying value | $ 0 | 0 | |
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 | $ (258) | (161) | |
Net carrying value | $ 1,472 | 1,512 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | [1] | 4 years | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | [1] | $ 1,730 | $ 1,673 |
[1] | Internal-use software relates to the development of the social gaming platform and applications. |
Goodwill and Intangible Asset61
Goodwill and Intangible Assets, including Casino Contracts (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Balance at the beginning | $ 315 | $ 332 |
Foreign currency translation adjustment | (3) | (17) |
Balance at the ending | $ 312 | $ 315 |
Goodwill and Intangible Asset62
Goodwill and Intangible Assets, including Casino Contracts (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill and Intangible Assets, including Casino Contracts [Member] | Continuing Operations [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 0 | $ 156,000 |
Internal Used Software [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 97,000 | $ 0 |
Prepayments, Deposits and Oth63
Prepayments, Deposits and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Prepaid, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | $ 1,209 | $ 1,204 | |
Rental, utilities and other deposits [Member] | |||
Prepaid, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | 233 | 228 | |
Other Receivables [Member] | |||
Prepaid, Deposits and Other Assets [Line Items] | |||
Prepaids, deposits and other assets | [1] | $ 976 | $ 976 |
[1] | Other receivables as of March 31, 2017 and December 31, 2016 included approximately $976,000 in payments due in more than one year from the sale of the gaming products assets. The current balance of the future payments receivable is included under receivables. See Note 5. |
Prepayments, Deposits and Oth64
Prepayments, Deposits and Other Assets (Details Textual) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Prepaid, Deposits and Other Assets [Line Items] | ||
Sale Of Assets Discontinued Operation Sale Proceeds Due Noncurrent | $ 976,000 | $ 976,000 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accrued Expenses [Line Items] | ||
Payroll and related costs | $ 255 | $ 323 |
Professional fees | 151 | 243 |
Other tax expenses | 294 | 266 |
Other expenses | 125 | 286 |
Total | $ 825 | $ 1,118 |
Other Liabilities (Details)
Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Liabilities [Line Items] | ||
Other tax liabilities | $ 423 | $ 418 |
Other | 23 | 23 |
Total | $ 446 | $ 441 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Stock Based Compensation [Line Items] | ||
Outstanding, Number of Options, Beginning Balance | 718,934 | |
Granted, Number of Options | 0 | |
Exercised, Number of Options | 0 | |
Forfeited or expired, Number of Options | (1,563) | |
Outstanding, Number of Options, Ending Balance | 717,371 | 718,934 |
Exercisable, Number of Options | 258,216 | |
Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 4.4 | |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | |
Exercised, Weighted Average Exercise Price (in dollars per share) | 0 | |
Forfeited or expired, Weighted Average Exercise Price (in dollars per share) | 38.77 | |
Outstanding, Weighted Average Exercise Price, Ending Balance (in dollars per share) | 4.32 | $ 4.4 |
Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 8.56 | |
Outstanding, Weighted Average Remaining Contractual Life (in years) | 6 years 7 months 13 days | 6 years 10 months 6 days |
Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 2 months 26 days | |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | $ 6 | |
Granted, Aggregate Intrinsic Value | 0 | |
Exercised, Aggregate Intrinsic Value | 0 | |
Forfeited or expired, Aggregate Intrinsic Value | 0 | |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 22 | $ 6 |
Exercisable, Aggregate Intrinsic Value | $ 22 |
Stock-Based Compensation (Det68
Stock-Based Compensation (Details 1) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Stock Based Compensation [Line Items] | ||
Expected volatility - Low | 88.12% | 81.78% |
Expected volatility - High | 88.77% | 87.26% |
Expected dividends - Low | 0.00% | 0.00% |
Expected dividends - High | 0.00% | 0.00% |
Risk free rate - Low | 1.84% | 1.17% |
Risk free rate - High | 2.37% | 1.69% |
Minimum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 4 years 9 months 11 days | 4 years 9 months 11 days |
Maximum [Member] | ||
Stock Based Compensation [Line Items] | ||
Expected term (in years) | 9 years 2 months 26 days | 7 years 1 month 10 days |
Stock-Based Compensation (Det69
Stock-Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Jul. 18, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2008 | |
Stock Based Compensation [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | $ 147,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Description | The replacement options have an exercise price of $1.94, which is based on the higher of: (i) 100% of the fair market value of the Companys common stock on the board approval date and (ii) 100% of the average fair market value of one share of the Companys common stock for the five business days immediately preceding the board approval date. | |||
First Anniversary [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | |||
Second And Third Anniversary [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||
Employee Stock Option [Member] | ||||
Stock Based Compensation [Line Items] | ||||
Outstanding, Number of Shares, Options | 717,371 | 718,934 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Fair Value, Options | $ 3.37 | |||
Exercisable, Aggregate Intrinsic Value, Options | $ 22,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Options | $ 78,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition, Options | 2 years 1 month 13 days | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Grants In Period, Weighted Average Grant Date Fair Value | $ 8.56 | |||
Exercisable, Number Of Shares | 258,216 | |||
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 | 70,314 | |||
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 | 1,563 | |||
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 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Related party transactions provided to: | ||||
Sales of gaming products | $ 416 | $ 604 | [1] | |
MCE Leisure (Philippines) Corporation [Member] | ||||
Related party transactions provided to: | ||||
Sales of gaming products | 0 | 159 | ||
Melco Services Limited [Member] | ||||
Related party transactions provided by: | ||||
Other | [2] | 102 | 64 | |
Golden Future (Management Services) Ltd [Member] | ||||
Related party transactions provided by: | ||||
Management services | $ 0 | $ 63 | ||
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. | |||
[2] | The amounts for the three-month periods ended March 31, 2017 and 2016 included fees paid to Melco Services Limited under a management services agreement, which was effective as of January 1, 2015. |
Related Party Transactions (D71
Related Party Transactions (Details Textual) | Mar. 31, 2017 |
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 | 51.30% |
MCE Leisure (Philippines) Corporation [Member] | |
Related Party Transaction [Line Items] | |
Noncontrolling Interest, Ownership Percentage by Parent | 72.80% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Income tax expenses | |||
Income Tax Expenses | $ 37 | $ 29 | [1] |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | (1.90%) | (3.10%) | |
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Discontinued Operations [Line Items] | ||||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | [1] | $ (48) | $ (501) | [2] |
Cambodia Gaming Operations [Member] | ||||
Discontinued Operations [Line Items] | ||||
Revenues from gaming operations | 0 | 3,246 | ||
Cost of gaming operations | 0 | (1,953) | ||
Selling, general and administrative expenses | (51) | (374) | ||
Foreign currency exchange gains | 7 | 8 | ||
Depreciation and amortization | (1) | (8) | ||
Other income | 0 | 1 | ||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | (45) | 920 | ||
Gaming Products [Member] | ||||
Discontinued Operations [Line Items] | ||||
Revenues from gaming operations | 0 | 1,305 | ||
Cost of gaming operations | 0 | (1,761) | ||
Selling, general and administrative expenses | [3] | (2) | (918) | |
Research and development expenses | 0 | (50) | ||
Foreign currency exchange gains | (1) | 18 | ||
Depreciation and amortization | 0 | (20) | ||
Other income | 0 | 5 | ||
(Loss)/income from discontinued Cambodia gaming operations, net of tax | $ (3) | $ (1,421) | ||
[1] | Amounts for the three-month periods ended March 31, 2017 and 2016 included related party sales of NIL and approximately $159,000 and related party services fees of NIL and approximately $63,000, respectively. | |||
[2] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. | |||
[3] | For the three-month period ended March 31, 2016, the Company incurred approximately $648,000 in legal fees related to DPD Limited, formerly known as Dolphin Products Limited. |
Discontinued Operations (Deta74
Discontinued Operations (Details Textual) - USD ($) | Jul. 06, 2016 | May 11, 2016 | Dec. 21, 2016 | Oct. 31, 2016 | Mar. 31, 2016 |
Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Rental Income | $ 520,000 | ||||
Maximum Earn Out Payment Based On Revenue | 900,000 | ||||
Legal Fees | $ 648,000 | ||||
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 | ||||
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 | ||||
GPIC [Member] | |||||
Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 5,900,000 | ||||
Purchase Price Of Assets Disposal Group Including Discontinued Operation | 5,400,000 | ||||
Restrictive Convent Cost | 530,000 | ||||
Payment Of Purchase Price At Installment | 3,200,000 | ||||
First Anniversaries Purchase Price Cost | 1,100,000 | ||||
Disposal Group, Including Discontinued Operation, Rental Income | $ 260,000 |
Loss Per Share (Details)
Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | |||
Basic | ||||
Net loss attributable to equity shareholders - Loss | $ (1,993) | $ (974) | ||
Net loss attributable to equity shareholders - Number of Shares | 14,464 | 14,460 | [1] | |
Net loss attributable to equity shareholders - Per share Amount (in dollars per share) | $ (0.14) | $ (0.07) | ||
Effect of dilutive securities | ||||
Dilutive stock options/restricted shares | [2] | 0 | 0 | [1] |
Diluted | ||||
Net loss attributable to equity shareholders plus assumed conversion - Loss | $ (1,993) | $ (974) | ||
Net loss attributable to equity shareholders plus assumed conversion - Number of shares | 14,464 | 14,460 | [1] | |
Net loss attributable to equity shareholders plus assumed conversion - Per Share Amount (in dollars per share) | $ (0.14) | $ (0.07) | ||
[1] | Amounts for the three-month period ended March 31, 2016 have been reclassified to conform to the current period presentation, including the impact of discontinued operations. | |||
[2] | For the three-month periods ended March 31, 2017 and 2016, 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 | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Loss Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 709,404 | 743,630 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Balance at the beginning | $ 23 | $ 23 |
Service cost | 0 | 5 |
Interest cost | 0 | 1 |
Actuarial gain and others | 0 | (6) |
Balance at the ending | $ 23 | $ 23 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Balance at the beginning | $ 0 | $ 99 |
Reduction | 0 | (99) |
Accretion expense | 0 | 0 |
Balance at the ending | $ 0 | $ 0 |
Accumulated Other Comprehensi79
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Defined Benefit Pension Plan, Beginning Balance | $ 85 | $ 90 |
Defined Benefit Pension Plan, Current period other comprehensive loss | 0 | (5) |
Defined Benefit Pension Plan, Ending Balance | 85 | 85 |
Foreign Currency Translation, Beginning Balance | 500 | 619 |
Foreign Currency Translation, Current period other comprehensive loss | (20) | (119) |
Foreign Currency Translation, Ending Balance | 480 | 500 |
Accumulated Other Comprehensive Income, Beginning Balance | 585 | 709 |
Accumulated Other Comprehensive Income, Current period other comprehensive loss | (20) | (124) |
Accumulated Other Comprehensive Income, Ending Balance | $ 565 | $ 585 |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | May 03, 2017 | May 05, 2017 |
Subsequent Event [Line Items] | ||
Proceeds from Sale of Productive Assets | $ 1.9 | |
Gain (Loss) on Disposition of Assets | $ 1.3 | |
Business Acquisition, Share Price | $ 2.35 |