Novation Companies (NOVCQ) 10-Q 13 Nov 19 2019 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 06, 2019
Document Information [Line Items]
Entity Registrant Name	NOVATION COMPANIES, INC.
Entity Central Index Key	0001025953
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		112,403,893
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 2,053	$ 9,249
Accounts and unbilled receivables	6,689	6,122
Prepaid expenses	474	350
Other	70	131
Total current assets	9,286	15,852
Non-current assets:
Goodwill	3,905	8,205
Intangible assets, net	6,082	6,978
Operating lease right-of-use asset	272
Other	66	95
Total non-current assets	10,325	15,278
Total assets	19,611	31,130
Current liabilities:
Accounts payable and current maturities of debt	466	670
Accrued compensation and benefits payable	3,165	2,731
Borrowings under revolving line of credit		1,948
Operating lease liability	152
Accrued interest payable		1,295
Accrued claim settlements	246	459
Other	17	35
Total current liabilities	4,046	7,138
Non-current liabilities:
Long-term debt, net of debt premium	86,016	85,969
Accrued claim settlements	369	553
Operating lease liability	131
Other		426
Total non-current liabilities	86,516	86,948
Total liabilities	90,562	94,086
Shareholders' deficit:
Common stock, $.01 par value per share, 780,000,000 shares authorized: 110,303,893 and 99,137,893 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	1,103	991
Additional paid-in capital	746,121	745,104
Accumulated deficit	(818,175)	(809,050)
Accumulated other comprehensive loss		(1)
Total shareholders' deficit	(70,951)	(62,956)
Total liabilities and shareholders' deficit	$ 19,611	$ 31,130

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	780,000,000	780,000,000
Common stock, shares issued (in shares)	110,303,893	99,137,893
Common stock, shares outstanding (in shares)	110,303,893	99,137,893

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Service fee income	$ 15,671	$ 14,155	$ 47,822	$ 40,645
Cost and expenses:
Cost of services	13,872	12,180	42,487	35,672
General and administrative expenses	1,927	2,023	6,390	6,100
Goodwill impairment	1,700		4,300
Operating loss	(1,828)	(48)	(5,355)	(1,127)
Interest income - mortgage securities		117		1,033
Other income	22	1,572	27	4,511
Interest expense	(1,001)	(1,366)	(3,707)	(3,914)
Reorganization items, net		(81)	(63)	(1,831)
Income (loss) before income taxes	(2,807)	194	(9,098)	(1,328)
Income tax expense (benefit)	4	(360)	8	(293)
Net income (loss)	(2,811)	554	(9,106)	(1,035)
Other comprehensive loss:
Reclassification (gain) loss on marketable securities included in net income		(1,600)	1	(4,531)
Unrealized loss on marketable securities		(21)		(1,822)
Total other comprehensive income (loss)		(1,621)	1	(6,353)
Total comprehensive loss	$ (2,811)	$ (1,067)	$ (9,105)	$ (7,388)
Earnings (loss) per share:
Basic (in dollars per share)	$ (0.03)	$ 0.01	$ (0.09)	$ (0.01)
Diluted (in dollars per share)	$ (0.03)	$ 0.01	$ (0.09)	$ (0.01)
Weighted average common shares outstanding:
Basic (in shares)	103,785,157	94,229,244	97,207,238	93,690,389
Diluted (in shares)	103,785,157	94,229,244	97,207,238	93,690,389

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Shareholders' Deficit (Unaudited) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance at Dec. 31, 2017	$ 971	$ 744,937	$ (815,184)	$ 11,394	$ (57,882)
Issuances and cancellations of nonvested stock	22	(22)
Compensation recognized under stock compensation plans		144			144
Net income (loss)			(1,035)		(1,035)
Other comprehensive income (loss)				(6,353)	(6,353)
Balance at Sep. 30, 2018	993	745,059	(816,219)	5,041	(65,126)
Balance at Jun. 30, 2018	960	745,051	(816,773)	6,662	(64,100)
Issuances and cancellations of nonvested stock	33	(33)
Compensation recognized under stock compensation plans		41			41
Net income (loss)			554		554
Other comprehensive income (loss)				(1,621)	(1,621)
Balance at Sep. 30, 2018	993	745,059	(816,219)	5,041	(65,126)
Balance at Dec. 31, 2018	991	745,104	(809,050)	(1)	(62,956)
Issuances and cancellations of nonvested stock	22	(22)
Common stock granted in debt restructure	90	(90)
Common stock and common stock warrants granted in debt restructure		916			916
Compensation recognized under stock compensation plans		213			213
Net income (loss)			(9,106)		(9,106)
Adjustment to retained earnings for adoption of accounting standard			(19)		(19)
Other comprehensive income (loss)				1	1
Balance at Sep. 30, 2019	1,103	746,121	(818,175)		(70,951)
Balance at Jun. 30, 2019	1,013	745,235	(815,364)		(69,116)
Issuances and cancellations of nonvested stock
Common stock granted in debt restructure	90	(90)
Common stock and common stock warrants granted in debt restructure		916			916
Compensation recognized under stock compensation plans		60			60
Net income (loss)			(2,811)		(2,811)
Other comprehensive income (loss)
Balance at Sep. 30, 2019	$ 1,103	$ 746,121	$ (818,175)		$ (70,951)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net income (loss)	$ (9,106)	$ (1,035)
Adjustments to reconcile net loss to net cash used in operating activities:
Accretion of marketable securities, net		(70)
Amortization of intangible assets	896	896
Amortization of debt discount	454
Realized gain on marketable securities		(4,531)
Depreciation expense	21	328
Loss on disposal of fixed assets	9
Settlement claims		1,487
Lease expense	(8)
Goodwill impairment	4,300
Compensation recognized under stock compensation plans	213	144
Changes in operating assets and liabilities
Accounts and unbilled receivables	(567)	2,017
Accounts payable and accrued expenses	(204)	(2,071)
Accrued compensation and benefits payable	434	(1,030)
Accrued interest payable	(754)	218
Accrued claim settlements	(397)
Other current assets and liabilities, net	(81)	191
Other noncurrent assets and liabilities, net	(426)	189
Net cash used in operating activities	(5,216)	(3,267)
Cash flows from investing activities:
Proceeds from sales and maturities of marketable securities		4,531
Purchase of property and equipment	(27)
Proceeds from sale of property and equipment	26
Net cash provided by (used in) investing activities	(1)	4,531
Cash flows from financing activities:
Borrowings under revolving line of credit	8,685	40,939
Repayments of borrowings under revolving line of credit	(10,633)	(42,664)
Paydowns of long-term debt	(31)	(79)
Net cash used in financing activities	(1,979)	(1,804)
Net decrease in cash and cash equivalents	(7,196)	(540)
Cash and cash equivalents, beginning of period	9,249	2,740
Cash and cash equivalents, end of period	2,053	2,200
Supplemental disclosure of cash flow information:
Cash paid for interest	4,023	3,697
Cash paid for reorganization items		1,171
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock in restructure of debt (Note 7)	311
Issuance of common stock warrants in restructure of debt (Note 7)	$ 605

Note 1 - Condensed Consolidated

Note 1 - Condensed Consolidated Financial Statement Presentation	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Description of Operations – $0.01 Liquidity and Going Concern – nine September 30, 2019 9.1 5.2 September 30, 2019 71.0 2.1 90.6 2.1 0.8 From January 2019 August 2019, 3.5% March 30, 2033. 7 2019 not August 2019 March 2022. no one Based on the amendment to the senior note agreement and historical HCS operations, HCS has demonstrated that it can provide positive cash flow sufficient to support Company operations. However, in September 2019, third September 30, 2019. $1.7 no not While our historical operating results and poor cash flow suggest substantial doubt exists related to the Company's ability to continue as a going concern, with the amendment to the senior notes agreement, the Company's cash position is forecasted to be sufficient to cover current obligations. As a result, management has concluded that the factors discussed above have alleviated the substantial doubt about the Company's ability to continue as a going concern for at least one The accompanying condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and contemplates the continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, we cannot provide assurance that revenue and cash generated from HCS will be sufficient to sustain our operations in the long term. Condensed Consolidated Financial Statement Presentation – The Company's condensed consolidated financial statements are unaudited. In the opinion of management, all necessary adjustments have been made, which were of a normal and recurring nature, for a fair presentation of the condensed consolidated financial statements. The Company's condensed consolidated financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements of the Company and the notes thereto included in the Company's Annual Report on Form 10 December 31, 2018 2018 10 Recent Accounting Pronouncements Adopted in 2019 February 2016, 842, Leases No. 2016 02, 842 No. 2018 01, 842; No. 2018 10, 842, No. 2018 11, 12 No. 2016 02 6

Note 2 - Reorganization

Note 2 - Reorganization	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Reorganization under Chapter 11 of US Bankruptcy Code Disclosure [Text Block]	Note 2. On July 20, 2016, three 2114 11 one 1121 June 12, 2017, July 27, 2017 September 25, 2017, 2114 December 22, 2017, 11 December 26, 2017 February 16, 2018 April 11, 2018, April 19, 2019, July 16, 2019, Reorganization expenses for the nine September 30, 2019 September 30, 2018 0.1 1.8

Note 3 - Revenue; Accounts and

Note 3 - Revenue; Accounts and Unbilled Receivables	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	Note 3. Staffing services include the augmentation of customers' workforce with our contingent employees performing services under the customers' supervision, which provides our customers with a source of flexible labor at a competitive cost. Customer contracts are typically annual contracts but may 60 The Company recognizes revenue when control of the promised services is transferred to customers and for the amount that reflects the consideration we are entitled to receive in exchange for those services. Furthermore, revenue is recognized over time based on a fixed amount for each hour of staffing service provided as our customers benefit from our services and as we provide them. Performance Obligations — not not no Contract Balances — two not Disaggregation of Revenue — Nine Months Ended September 30, 2019 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2018 Type of Customer CSB $ 46,303 96.8 % $ 15,270 97.4 % $ 39,210 96.5 % $ 13,673 96.6 % Other 1,519 3.2 % 401 2.6 % 1,435 3.5 % 482 3.4 % Total $ 47,822 100.0 % $ 15,671 100.0 % $ 40,645 100.0 % $ 14,155 100.0 % Accounts and unbilled receivables are summarized as follows, in thousands: September 30, 2019 (unaudited) December 31, 2018 Accounts receivable $ 4,074 $ 3,952 Unbilled receivables (Contract Assets) 2,615 2,170 Total $ 6,689 $ 6,122 As of September 30, 2019 December 31, 2018 no nine September 30, 2019 52% three nine September 30, 2018 35% two September 30, 2019 September 30, 2018 56% 57% four September 30, 2019 September 30, 2018 97% 95% 14 15

Note 4 - Marketable Securities

Note 4 - Marketable Securities	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	Note 4. Prior to 2018, 2018, 33 $13.0 $12.9 33 no 2018 $0.3 As part of the mortgage securitization process, the Company owned the mortgage servicing rights on the mortgage loans in each securitization deal. These servicing rights were sold to a third October 12, 2007 third 2007 10 2018. no no See Note 10

Note 5 - Goodwill and Intangibl

Note 5 - Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	Note 5. September 30, 2019 (unaudited) December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived assets (in thousands) Goodwill $ 3,905 $ - $ 3,905 $ 8,205 $ - $ 8,205 Tradenames 1,147 - 1,147 1,147 - 1,147 $ 5,052 $ - $ 5,052 $ 9,352 $ - $ 9,352 Finite-lived assets (in thousands) Customer relationships $ 6,895 $ 2,134 $ 4,761 $ 6,895 $ 1,395 $ 5,500 Non-compete agreement 627 453 174 627 296 331 $ 7,522 $ 2,587 $ 4,935 $ 7,522 $ 1,691 $ 5,831 Amortization expense (unaudited, in thousands) Nine Months Ended September 30, 2019 $ 896 Estimated future amortization expense (unaudited, in thousands) 2019 $ 298 2020 1,107 2021 985 2022 985 Thereafter 1,560 Total estimated amortization expense $ 4,935 September 30, 2019 (unaudited) Goodwill activity (in thousands): Beginning balance $ 8,205 Impairment charge (4,300 ) Ending balance $ 3,905 See Note 1 2019.

Note 6 - Leases

Note 6 - Leases	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	Note 6. We adopted ASU No. 2016 02—Leases 842 January 1, 2019, not not Adoption of the new standard resulted in the recording of an additional net operating lease right-of-use asset and operating lease liability of approximately $0.2 January 1, 2019. not no not Our leases consist primarily of office space. Leases with an initial term of 12 not Most leases include one one three not three nine September 30, 2019 . As our leases do not Maturities of lease liabilities were as follows (in thousands): September 30, 2019 (unaudited) Remaining 2019 $ 45 2020 150 2021 89 Thereafter 20 Total $ 304 Less interest 21 Present value of lease liabilities $ 283 Other information related to the Company's operating leases was as follows (in thousands): September 30, 2019 (unaudited) Supplemental Cash Flow Information Operating cash flows from leases $ (8 ) Lease Term and Discount Rate Weighted average remaining lease term (years) 1.99 Weighted average discount rate 6.75 %

Note 7 - Borrowings

Note 7 - Borrowings	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 7. Revolving Credit Agreement — December 31, 2018 1.9 $5,000,000. February 2018. 1.25%. November 17, 2018 one not not February 2019 Note Refinancing and 2017 August 9, 2019, 2017 January 2019 2028 September 30, 2019, $85.9 three “2017 2017 March 30, 2033, 1% April 1, 2019 December 31, 2023, 2% January 1, 2024 December 31, 2028 10% January 1, 2029 December 31, 2019, 50% 2017 may 30 2017 101% 2017 July 27, 2017 On April 1, 2019 July 1, 2019, 2017 $2.7 $0.4 $2.2 not April 1, 2022. The Note Purchase Agreement contains customary affirmative and negative covenants, including but not December 31, 2021. not may, 2017 first 2017 Under the terms of the Amendment, the Company issued to the Noteholders 9,000,000 ten 22,250,000 $0.01 8

Note 8 - Troubled Debt Restruct

Note 8 - Troubled Debt Restructuring	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Troubled Debt Restructuring [Text Block]	Note 8 The Company evaluated whether the terms of the Amendment, as discussed in Note 7 no no The outstanding principal balance on the 2017 September 30, 2019 December 31, 2018 $ 86.0 85.9 0.3 0.6 July 1, 2019 August 8, 2019 0.5 3.5% The carrying value of long-term debt is as follows (in thousands): September 30, 2019 (unaudited) December 31, 2018 Principal balance, 2017 Notes $ 85,938 $ 85,938 Unamortized debt premium, 2017 Notes 79 - Other long-term debt - 31 Total long-term debt $ 86,016 $ 85,969

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 9. Contingencies — 2016, 2006 third 1997 2007, third $43.1 not third may not no not 2010. Historically, repurchases of loans or indemnification of losses where a loan defect has been alleged have been insignificant and any future losses for alleged loan defects have not no not not not 2007, not Pending Litigation — Although it is not not, not not one On May 21, 2008, June 16, 2009, 11, 12 15 1933, August 31, 2009, March 31, 2011, second May 16, 2011, March 29, 2012, second March 1, 2013, not April 23, 2013 five not February 5, 2015, March 8, 2017, May 10, 2017. not no October 19, 2018 March 7, 2019 March 8, 2019, March 26, 2019 June 28, 2019. September 27, 2019, October 18, 2019. no not On June 20, 2011, August 24, 2012, September 12, 2013. August 27, 2013, 12 §1787 14 June 16, 2014, 134 2175 2014 August 19, 2014, October 2, 2014, March 22, 2016, not On February 28, 2013, 2007 1 not June 28, 2013. June 24, 2013, 43 43 $6.5 August 19, 2013, seven 43 October 9, 2013, This motion to dismiss was withdrawn after plaintiff filed an amended complaint on January 28, 2014, March 4, 2014, November 30, 2017, The parties have reached a settlement of this matter. On October 25, 2018, November 19, 2018, $0.3 March 1, 2019. three $0.3 second 2018 DB Structured Products, Inc., Deutsche Bank AG, Deutsche Bank National Trust Company, Deutsche Bank Securities Inc., Greenwich Capital Derivatives, Inc., RBS Acceptance Inc., RBS Financial Products Inc., RBS Securities Inc., The Royal Bank of Scotland PLC, Wachovia Investment Holdings, LLC, Wells Fargo & Company, Wells Fargo Advisors, LLC, Wells Fargo Bank, N.A. and Wells Fargo Securities, LLC (collectively, the “Indemnity Claimants”) filed proofs of claim in the Company’s bankruptcy case asserting the right to be indemnified by the Company for, and/or to receive contribution from the company in respect of, certain liabilities incurred as a result of their roles in the issuance of residential mortgage-backed securities sponsored by the Company. The Company filed an objection in the bankruptcy case seeking to disallow and expunge the Indemnity Claimants’ proofs of claim. The Indemnity Claimants’ claims were not not The parties have reached a settlement in this matter, which was approved by the court on November 29, 2018. $0.5 December 21, 2018. three $0.4 second 2018

Note 10 - Fair Value Accounting

Note 10 - Fair Value Accounting	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 10. Fair Value Measurements — two • Level 1 • Level 2 1 • Level 3 no The following table provides the estimated fair value of financial instruments and presents amounts that have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not not The estimated fair values of the Company's financial instruments are (in thousands): September 30, 2019 (unaudited) December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Equity securities (Level 1) $ - $ - $ 1 $ 1 Financial liabilities: Senior notes (Level 3) $ 86,016 $ 21,105 $ 85,938 $ 24,659 The equity securities are valued based on quoted market prices and are included in other current assets on the condensed consolidated balance sheets. All equity securities held by the Company were sold during the third 2019. not 3 no No Senior Notes The interest rate used in calculating the fair value on the senior notes is three 3.5% March 2033. three Goodwill 1 2019. Financial assets reported at fair value (Level 3 September 30, 2019 (unaudited) Fair Value (Level 3) Gains and (Losses) Goodwill $ 3,905 $ (4,300 )

Note 11 - Income Taxes

Note 11 - Income Taxes	9 Months Ended
	Sep. 30, 2019
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 11. Prior to 2018, no not September 30, 2019 December 31, 2018 $ 165.9 164.0 may 0% not As of September 30, 2019 $ 726.8 $ 250.3 not may not 2025 2037 2017, 2017 2018 not 19.4 may 2017 2004. may 2024 2037

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Liquidity and Going Concern [Policy Text Block]	Liquidity and Going Concern – nine September 30, 2019 7.4 5.2 September 30, 2019 69.3 2.1 90.6 2.1 0.8 While HCS has demonstrated that it can provide positive cash flow sufficient to support HCS operations, management continues to work toward expanding HCS’s customer base by increasing revenue from existing customers and targeting new customers that have not From January 2019 August 2019, 3.5% March 30, 2033. 7 2019 not August 2019 March 2022. no one While our historical operating results and poor cash flow suggest substantial doubt exists related to the Company's ability to continue as a going concern, with the amendment to the senior notes agreement, the Company's cash position is forecasted to be sufficient to cover current obligations. As a result, management has concluded that the factors discussed above have alleviated the substantial doubt about the Company's ability to continue as a going concern for at least one The accompanying condensed consolidated financial statements have been prepared on a basis that assumes the Company will continue as a going concern and contemplates the continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. However, we cannot provide assurance that revenue and cash generated from HCS will be sufficient to sustain our operations in the long term.
Consolidation, Policy [Policy Text Block]	Condensed Consolidated Financial Statement Presentation – The Company's condensed consolidated financial statements are unaudited. In the opinion of management, all necessary adjustments have been made, which were of a normal and recurring nature, for a fair presentation of the condensed consolidated financial statements. The Company's condensed consolidated financial statements should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations included herein and the consolidated financial statements of the Company and the notes thereto included in the Company's Annual Report on Form 10 December 31, 2018 2018 10
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Adopted in 2019 February 2016, 842, Leases No. 2016 02, 842 No. 2018 01, 842; No. 2018 10, 842, No. 2018 11, 12 No. 2016 02 6

Note 3 - Revenue; Accounts an_2

Note 3 - Revenue; Accounts and Unbilled Receivables (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Disaggregation of Revenue [Table Text Block]	Nine Months Ended September 30, 2019 Three Months Ended September 30, 2019 Nine Months Ended September 30, 2018 Three Months Ended September 30, 2018 Type of Customer CSB $ 46,303 96.8 % $ 15,270 97.4 % $ 39,210 96.5 % $ 13,673 96.6 % Other 1,519 3.2 % 401 2.6 % 1,435 3.5 % 482 3.4 % Total $ 47,822 100.0 % $ 15,671 100.0 % $ 40,645 100.0 % $ 14,155 100.0 %
Contract with Customer, Asset and Liability [Table Text Block]	September 30, 2019 (unaudited) December 31, 2018 Accounts receivable $ 4,074 $ 3,952 Unbilled receivables (Contract Assets) 2,615 2,170 Total $ 6,689 $ 6,122

Note 5 - Goodwill and Intangi_2

Note 5 - Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	September 30, 2019 (unaudited) December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Indefinite-lived assets (in thousands) Goodwill $ 3,905 $ - $ 3,905 $ 8,205 $ - $ 8,205 Tradenames 1,147 - 1,147 1,147 - 1,147 $ 5,052 $ - $ 5,052 $ 9,352 $ - $ 9,352 Finite-lived assets (in thousands) Customer relationships $ 6,895 $ 2,134 $ 4,761 $ 6,895 $ 1,395 $ 5,500 Non-compete agreement 627 453 174 627 296 331 $ 7,522 $ 2,587 $ 4,935 $ 7,522 $ 1,691 $ 5,831
Finite-lived Intangible Assets Amortization Expense [Table Text Block]	Amortization expense (unaudited, in thousands) Nine Months Ended September 30, 2019 $ 896 Estimated future amortization expense (unaudited, in thousands) 2019 $ 298 2020 1,107 2021 985 2022 985 Thereafter 1,560 Total estimated amortization expense $ 4,935
Schedule of Goodwill [Table Text Block]	September 30, 2019 (unaudited) Goodwill activity (in thousands): Beginning balance $ 8,205 Impairment charge (4,300 ) Ending balance $ 3,905

Note 6 - Leases (Tables)

Note 6 - Leases (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Lessee, Operating Lease, Liability, Maturity [Table Text Block]	September 30, 2019 (unaudited) Remaining 2019 $ 45 2020 150 2021 89 Thereafter 20 Total $ 304 Less interest 21 Present value of lease liabilities $ 283
Operating Lease, Other Information [Table Text Block]	September 30, 2019 (unaudited) Supplemental Cash Flow Information Operating cash flows from leases $ (8 ) Lease Term and Discount Rate Weighted average remaining lease term (years) 1.99 Weighted average discount rate 6.75 %

Note 8 - Troubled Debt Restru_2

Note 8 - Troubled Debt Restructuring (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]	September 30, 2019 (unaudited) December 31, 2018 Principal balance, 2017 Notes $ 85,938 $ 85,938 Unamortized debt premium, 2017 Notes 79 - Other long-term debt - 31 Total long-term debt $ 86,016 $ 85,969

Note 10 - Fair Value Accounti_2

Note 10 - Fair Value Accounting (Tables)	9 Months Ended
	Sep. 30, 2019
Notes Tables
Fair Value, by Balance Sheet Grouping [Table Text Block]	September 30, 2019 (unaudited) December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value Financial assets: Equity securities (Level 1) $ - $ - $ 1 $ 1 Financial liabilities: Senior notes (Level 3) $ 86,016 $ 21,105 $ 85,938 $ 24,659
Fair Value Measurements, Nonrecurring [Table Text Block]	September 30, 2019 (unaudited) Fair Value (Level 3) Gains and (Losses) Goodwill $ 3,905 $ (4,300 )

Note 1 - Condensed Consolidat_2

Note 1 - Condensed Consolidated Financial Statement Presentation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 08, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Common Stock, Par or Stated Value Per Share		$ 0.01		$ 0.01			$ 0.01
Net Income (Loss) Attributable to Parent, Total		$ (2,811)	$ 554	$ (9,106)	$ (1,035)
Net Cash Provided by (Used in) Operating Activities, Total				(5,216)	(3,267)
Stockholders' Equity Attributable to Parent, Ending Balance		(70,951)	(65,126)	(70,951)	(65,126)	$ (69,116)	$ (62,956)	$ (64,100)	$ (57,882)
Cash and Cash Equivalents, at Carrying Value, Ending Balance		2,053		2,053			9,249
Liabilities, Total		90,562		90,562			$ 94,086
Goodwill, Impairment Loss		1,700		$ 4,300
Senior Notes [Member] | The 2017 Notes [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.50%			3.50%
NovaStar Mortgage LLC [Member]
Cash and Cash Equivalents, at Carrying Value, Ending Balance		$ 800		$ 800

Note 2 - Reorganization (Detail

Note 2 - Reorganization (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Reorganization Items, Total		$ 81	$ 63	$ 1,831

Note 3 - Revenue; Accounts an_3

Note 3 - Revenue; Accounts and Unbilled Receivables (Details Textual) $ in Thousands	9 Months Ended
	Sep. 30, 2019USD ($)	Sep. 30, 2018	Dec. 31, 2018USD ($)
Customer Contracts, Notice of Termination Period	60 days
Accounts Receivable, Allowance for Credit Loss, Ending Balance	$ 0		$ 0
Customer Concentration Risk [Member] | Revenue Benchmark [Member]
Concentration Risk, Percentage	52.00%	35.00%
Number of Major Customers	3	2
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Four Non-CSB Customers [Member]
Concentration Risk, Percentage	56.00%	57.00%
Number of Major Customers	4	4
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Fourteen CSB Customers [Member]
Concentration Risk, Percentage	97.00%
Number of Major Customers	14
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Fifteen CSB Customers [Member]
Concentration Risk, Percentage		95.00%
Number of Major Customers		15

Note 3 - Revenue; Accounts an_4

Note 3 - Revenue; Accounts and Unbilled Receivables - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Financial services revenue, amount	$ 15,671	$ 14,155	$ 47,822	$ 40,645
Financial services revenue, percentage	100.00%	100.00%	100.00%	100.00%
CSB Customers [Member]
Financial services revenue, amount	$ 15,270	$ 13,673	$ 46,303	$ 39,210
Financial services revenue, percentage	97.40%	96.60%	96.80%	96.50%
Non-CSB Customers [Member]
Financial services revenue, amount	$ 401	$ 482	$ 1,519	$ 1,435
Financial services revenue, percentage	2.60%	3.40%	3.20%	3.50%

Note 3 - Revenue; Accounts an_5

Note 3 - Revenue; Accounts and Unbilled Receivables - Accounts and Unbilled Receivables (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Accounts receivable	$ 4,074	$ 3,952
Unbilled receivables (Contract Assets)	2,615	2,170
Total	$ 6,689	$ 6,122

Note 4 - Marketable Securities

Note 4 - Marketable Securities (Details Textual) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings	$ 300
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Number of Debt Securities Unsold	33
Proceeds from Sale of Debt Securities, Available-for-sale	$ 13,000
Debt Securities, Available-for-sale, Realized Gain	12,900
Debt Securities, Available-for-sale, Total	$ 0

Note 5 - Goodwill and Intangi_3

Note 5 - Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Goodwill	$ 3,905	$ 8,205
Tradenames	1,147	1,147
Indefinite-lived assets	5,052	9,352
Finite-lived intangible assets, gross	7,522	7,522
Finite-lived intangible assets, accumulated amortization	2,587	1,691
Finite-lived intangible assets, net	4,935	5,831
Customer Relationships [Member]
Finite-lived intangible assets, gross	6,895	6,895
Finite-lived intangible assets, accumulated amortization	2,134	1,395
Finite-lived intangible assets, net	4,761	5,500
Noncompete Agreements [Member]
Finite-lived intangible assets, gross	627	627
Finite-lived intangible assets, accumulated amortization	453	296
Finite-lived intangible assets, net	$ 174	$ 331

Note 5 - Goodwill and Intangi_4

Note 5 - Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Nine Months Ended September 30, 2019	$ 896	$ 896
2019	298
2020	1,107
2021	985
2022	985
Thereafter	1,560
Total estimated amortization expense	$ 4,935

Note 5 - Goodwill and Intangi_5

Note 5 - Goodwill and Intangible Assets - Goodwill Activity (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Beginning balance			$ 8,205
Impairment charge	$ (1,700)		(4,300)
Ending balance	$ 3,905		$ 3,905

Note 6 - Leases (Details Textua

Note 6 - Leases (Details Textual) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019	Dec. 31, 2018
Operating Lease, Right-of-Use Asset	$ 272	$ 200
Operating Lease, Liability, Total	$ 283	$ 200
Minimum [Member]
Lessee, Operating Lease, Renewal Term	1 year
Maximum [Member]
Lessee, Operating Lease, Renewal Term	3 years

Note 6 - Leases - Maturities of

Note 6 - Leases - Maturities of lease liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jan. 01, 2019
Remaining 2019	$ 45
2020	150
2021	89
Thereafter	20
Total	304
Less interest	21
Present value of lease liabilities	$ 283	$ 200

Note 6 - Leases - Operating Lea

Note 6 - Leases - Operating Lease Information (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Lease expense	$ (8)
Weighted average remaining lease term (years) (Year)	1 year 361 days
Weighted average discount rate	6.75%

Note 7 - Borrowings (Details Te

Note 7 - Borrowings (Details Textual) - USD ($)	Aug. 09, 2019	Nov. 17, 2018	Sep. 30, 2019	Dec. 31, 2018	Mar. 30, 2033	Dec. 31, 2023	Dec. 31, 2028
Line of Credit, Current				$ 1,948,000
Warrants Issued in Debt Restructuring [Member]
Warrants and Rights Outstanding, Term	10 years
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	22,250,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.01
Common Stock [Member]
Stock Issued During Period, Shares, Issued for Debt Restructuring	9,000,000
Post-modification Notes [Member] | Senior Notes [Member]
Debt Instrument, Face Amount			$ 85,900,000
The 2017 Notes [Member] | Senior Notes [Member]
Percentage of of Excess Cash Flow Each Year to Noteholders	50.00%
Debt Instrument, Redemption Notice, Number Of Days			30 days
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed			101.00%
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total			$ 2,700,000
Debt Instrument, Aggregate Amount Due			400,000
Payments Against Future Quarterly Interest Payments			$ 2,200,000
The 2017 Notes [Member] | Senior Notes [Member] | Forecast [Member]
Debt Instrument, Interest Rate During Period					10.00%	1.00%	2.00%
Revolving Credit Facility [Member] | White Oak Credit Agreement [Member]
Line of Credit, Current				1,900,000
Line of Credit Facility, Maximum Borrowing Capacity				$ 5,000,000
Debt Instrument, Term		1 year
Revolving Credit Facility [Member] | White Oak Credit Agreement [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate				1.25%

Note 8 - Troubled Debt Restru_3

Note 8 - Troubled Debt Restructuring (Details Textual) - USD ($) $ in Thousands	Aug. 09, 2019	Aug. 08, 2019	Sep. 30, 2019	Dec. 31, 2018
Long-term Debt, Total			$ 86,016	$ 85,969
Senior Notes [Member] | The 2017 Notes [Member]
Long-term Debt, Total			$ 86,000	$ 85,900
Troubled Debt Restructuring, Carrying Value Decreased by Fair Value of Common Stock Issued	$ 300
Troubled Debt Restructuring, Carrying Value Decreased by Fair Value of Warrants Issued	$ 600
Debt Instrument, Increase, Accrued Interest		$ 500
Senior Notes [Member] | The 2017 Notes [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate		3.50%	3.50%

Note 8 - Troubled Debt Restru_4

Note 8 - Troubled Debt Restructuring - Carrying Value of 2017 Notes (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Other long-term debt		$ 31
Total long-term debt	86,016	85,969
Senior Notes [Member] | The 2017 Notes [Member]
Principal balance, 2017 Notes	85,938	85,938
Unamortized debt premium, 2017 Notes	79
Total long-term debt	$ 86,000	$ 85,900

Note 9 - Commitments and Cont_2

Note 9 - Commitments and Contingencies (Details Textual) $ in Millions	Mar. 01, 2019USD ($)	Dec. 21, 2018USD ($)	Nov. 29, 2018USD ($)	Oct. 25, 2018	Jun. 24, 2013USD ($)	Dec. 31, 2007USD ($)
NovaStar Mortgage Funding Trust Case [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate, Number of Loans					43
Loans Summoned in Litigation Case					$ 6.5
Payments for Legal Settlements	$ 0.3
Settlement Period for Quarterly Payments				3 years
Loss Contingency Accrual, Ending Balance	$ 0.3
Indemnity Claimants’ Claims [Member]
Settlement Period for Quarterly Payments			3 years
Loss Contingency Accrual, Ending Balance			$ 0.4
Litigation Settlement, Amount Awarded to Other Party		$ 0.5
Claims to Repurchase Securitized Loans [Member]
Principal Amount Outstanding on Loans Securitized or Asset-backed Financing Arrangement						$ 43,100

Note 10 - Fair Value Accounti_3

Note 10 - Fair Value Accounting (Details Textual)	9 Months Ended
	Sep. 30, 2019
Post-modification Notes [Member] | Senior Notes [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument, Basis Spread on Variable Rate	3.50%

Note 10 - Fair Value Accounti_4

Note 10 - Fair Value Accounting - Carrying Values and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Equity securities (Level 1)		$ 1
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Senior notes (Level 3)	86,016	85,938
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Equity securities (Level 1)		1
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Senior notes (Level 3)	$ 21,105	$ 24,659

Note 10 - Fair Value Accounti_5

Note 10 - Fair Value Accounting - Financial Assets Reported at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019	Sep. 30, 2019	Sep. 30, 2018
Goodwill, gains and (losses)	$ (1,700)			$ (4,300)
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Goodwill, fair value (level 3)			$ 3,905
Goodwill, gains and (losses)			$ (4,300)

Note 11 - Income Taxes (Details

Note 11 - Income Taxes (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Deferred Tax Assets, Valuation Allowance, Total	$ 165.9	$ 164
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	0.00%
Operating Loss Carryforwards, Total	$ 726.8
Operating Loss Carryforwards, Mortgage Securities	$ 250.3
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2025
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2037
State and Local Jurisdiction [Member] | Earliest Tax Year [Member]
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2024
State and Local Jurisdiction [Member] | Latest Tax Year [Member]
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2037