Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
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 Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Interactive Data Current | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 116,655,893 | ||
Entity Public Float | $ 1,574,911 | ||
Entity Shell Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Title of 12(g) Security | Common Stock, $0.01 par value |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,340 | $ 2,032 |
Accounts and unbilled receivables | 5,008 | 6,583 |
Prepaid expenses | 663 | 647 |
Other | 53 | 21 |
Total current assets | 7,064 | 9,283 |
Non-current assets: | ||
Goodwill | 3,905 | |
Intangible assets, net | 4,677 | 5,784 |
Property and equipment, net | 92 | 125 |
Operating lease right-of-use asset | 339 | 316 |
Other | 4 | 4 |
Total non-current assets | 5,112 | 10,134 |
Total assets | 12,176 | 19,417 |
Current liabilities: | ||
Accounts payable and accrued expenses | 315 | 524 |
Accrued compensation and benefits payable | 2,176 | 2,717 |
Health and wellness program liability | 492 | |
Operating lease liability | 195 | 205 |
Accrued claim settlements | 246 | 246 |
Other | 4 | 36 |
Total current liabilities | 2,936 | 4,220 |
Non-current liabilities: | ||
Senior notes, net of unamortized debt premium of $4.2 million and $0.9 million as of December 31, 2020 and 2019, respectively | 90,115 | 86,824 |
Accrued claim settlements | 62 | 307 |
Operating lease liability | 153 | 125 |
Total non-current liabilities | 90,330 | 87,256 |
Total liabilities | 93,266 | 91,476 |
Shareholders' deficit: | ||
Common stock, $.01 par value per share, 780,000,000 shares authorized: 114,655,893 and 112,355,893 shares issued and outstanding as of December 30, 2020 and December 31, 2019, respectively | 1,146 | 1,123 |
Additional paid-in capital | 746,227 | 746,112 |
Accumulated deficit | (828,463) | (819,294) |
Total shareholders' deficit | (81,090) | (72,059) |
Total liabilities and shareholders' deficit | $ 12,176 | $ 19,417 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Unamortized debt premium | $ 4.2 | $ 0.9 |
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) | 114,655,893 | 112,355,893 |
Common stock, shares outstanding (in shares) | 114,655,893 | 112,355,893 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Service fee income | $ 51,354 | $ 63,474 |
Cost and expenses: | ||
Cost of services | 45,819 | 56,483 |
General and administrative expenses | 7,503 | 8,345 |
Goodwill impairment charge | 3,905 | 4,300 |
Operating loss | (5,873) | (5,654) |
Other income | 43 | 39 |
Interest expense | (3,311) | (4,522) |
Reorganization items, net | (63) | |
Loss before income taxes | (9,141) | (10,200) |
Income tax expense | 28 | 25 |
Net loss | (9,169) | (10,225) |
Other comprehensive income: | ||
Unrealized gains on marketable securities | 1 | |
Total other comprehensive income | 1 | |
Total comprehensive loss | $ (9,169) | $ (10,224) |
Loss per share: | ||
Basic (in dollars per share) | $ (0.08) | $ (0.10) |
Diluted (in dollars per share) | $ (0.08) | $ (0.10) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 111,045,292 | 100,472,515 |
Diluted (in shares) | 111,045,292 | 100,472,515 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Deficit - USD ($) $ in Thousands | Cumulative Effect, Period of Adoption, Adjustment [Member]Common Stock [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Additional Paid-in Capital [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]Retained Earnings [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member]AOCI Attributable to Parent [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2018 | $ (19) | $ (19) | $ 991 | $ 745,104 | $ (809,050) | $ (1) | $ (62,956) | |||
Compensation recognized under stock compensation plans | 224 | 224 | ||||||||
Net loss | (10,225) | (10,225) | ||||||||
Issuances and cancellations of nonvested stock, net | 42 | (42) | ||||||||
Common stock granted in debt restructure | 90 | (90) | ||||||||
Common stock and common stock warrants granted in debt restructure | 916 | 916 | ||||||||
Other comprehensive income | 1 | 1 | ||||||||
Balance at Dec. 31, 2019 | 1,123 | 746,112 | (819,294) | (72,059) | ||||||
Issuances of nonvested stock | 23 | (23) | ||||||||
Compensation recognized under stock compensation plans | 138 | 138 | ||||||||
Net loss | (9,169) | (9,169) | ||||||||
Balance at Dec. 31, 2020 | $ 1,146 | $ 746,227 | $ (828,463) | $ (81,090) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (9,169) | $ (10,225) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of intangible assets | 1,107 | 1,194 |
Amortization of debt premium and prepaid interest into interest expense | 3,291 | 1,262 |
Depreciation expense | 48 | 27 |
(Gain) loss on disposal of fixed assets | 9 | |
Lease expense | (5) | (5) |
Goodwill impairment | 3,905 | 4,300 |
Compensation recognized under stock compensation plans | 138 | 224 |
Changes in operating assets and liabilities: | ||
Accounts and unbilled receivables | 1,575 | (461) |
Accounts payable and accrued expenses | (209) | (146) |
Accrued compensation and benefits payable | (541) | (14) |
Accrued health and wellness program payable | (492) | 492 |
Accrued interest payable | (754) | |
Accrued claim settlements | (245) | (459) |
Other current assets and liabilities, net | (80) | (186) |
Other noncurrent assets and liabilities, net | (426) | |
Net cash used in operating activities | (677) | (5,168) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (15) | (96) |
Proceeds from sale of property and equipment | 26 | |
Net cash used in investing activities | (15) | (70) |
Cash flows from financing activities: | ||
Borrowings under revolving line of credit | 8,685 | |
Repayments of borrowings under revolving line of credit | (10,633) | |
Paydowns of long-term debt | (31) | |
Net cash used in financing activities | (1,979) | |
Net decrease in cash and cash equivalents | (692) | (7,217) |
Cash and cash equivalents, beginning of period | 2,032 | 9,249 |
Cash and cash equivalents, end of period | 1,340 | 2,032 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 21 | 4,030 |
Cash paid for income taxes, net | 45 | 30 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Issuance of common stock in restructure of debt (Note 6) | 311 | |
Issuance of common stock warrants in restructure of debt (Note 6) | $ 605 |
Note 1 - Basis of Presentation,
Note 1 - Basis of Presentation, Business Plan and Liquidity | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1. Description of Operations July 27, 2017, $0.01 Liquidity and Going Concern 2020 9.2 0.7 December 31, 2020 81.1 1.3 93.3 1.3 0.3 . Prior to executing the Amendment with the Noteholders in August 2019 ( 6 3.5% March 30, 2033, Management continues to work toward expanding HCS's customer base by increasing revenue from existing customers, looking at methods to reduce overall operating costs, both at HCS and the corporate level, and targeting new customers that have not 6 2019 not August 2019 March 2022, April 2022 In late March 2020, 19 8% 19 Our historical operating results and negative cash flow suggest substantial doubt exists related to the Company's ability to continue as a going concern. Furthermore, there is still significant uncertainty regarding the future impact that COVID- 19 no not one Financial Statement Presentation. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting and Reporting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2. Cash and Cash Equivalents - three four $250,000. 0.8 December 31, 2020 Accounts and Unbilled Receivables - not Goodwill and Indefinite-Lived Intangible Assets - not second Impairment of Long-Lived Intangible Assets with Finite Lives - may not Revenue and Cost Recognition - not not no Income Taxes - $ 168.8 166.5 December 31, 2020 2019 not not not 50%. Under the income tax guidance, companies are required to identify and consider all available evidence, both positive and negative, in determining whether it is more likely than not not not not The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is required to support a conclusion that a valuation allowance is not not not The Company examines and weighs all available evidence (both positive and negative and both historical and forecasted) in the process of determining whether it is more likely than not not not If a valuation allowance is necessary, the Company considers all sources of taxable income in determining the amount of valuation allowance to be recorded. Sources of taxable income identified in the income tax guidance include the following: 1 2 3 4 The Company currently evaluates estimates of uncertainty in income taxes based upon a framework established in the income tax accounting guidance. The guidance prescribes a recognition threshold and measurement standard for the recognition and measurement of tax positions taken or expected to be taken in a tax return. In accordance with the guidance, the Company evaluates whether a tax position will more likely than not 50% Earnings (Loss) Per Share (“EPS”) - Segments - one |
Note 3 - Revenue; Accounts and
Note 3 - Revenue; Accounts and Unbilled Receivables | 12 Months Ended |
Dec. 31, 2020 | |
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 For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Type of Customer CSB $ 50,054 97.5 % $ 61,620 97.1 % Other 1,300 2.5 % 1,854 2.9 % Total $ 51,354 100.0 % $ 63,474 100.0 % Accounts and unbilled receivables are summarized as follows, in thousands: December 31, 2020 December 31, 2019 Accounts receivable $ 2,705 $ 4,083 Unbilled receivables (Contract Assets) 2,303 2,500 Total accounts and unbilled receivables $ 5,008 $ 6,583 As of December 31, 2020 and December 31, 2019 management has determined no December 31, 2020 and December 31, 2019 63.3% 63.1% four December 31, 2020 , 64.0% four 88.8% 12 December 31, 2019 61.6% four 96.6% 14 |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 4. December 31, 2020 December 31, 2019 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 Tradenames 1,147 — 1,147 1,147 — 1,147 Total indefinite-lived assets $ 1,147 $ — $ 1,147 $ 5,052 $ — $ 5,052 Finite-lived assets (in thousands): Customer relationships $ 6,895 $ 3,365 $ 3,530 $ 6,895 $ 2,380 $ 4,515 Non-compete agreement 627 627 — 627 505 122 Total finite-lived assets $ 7,522 $ 3,992 $ 3,530 $ 7,522 $ 2,885 $ 4,637 Amortization expense (in thousands): 2019 $ 1,194 2020 1,107 Estimated future amortization expense (in thousands): 2021 $ 985 2022 985 2023 985 Thereafter 575 Total estimated amortization expense $ 3,530 Years Ended December 31, 2020 2019 Goodwill activity (in thousands): Beginning balance $ 3,905 $ 8,205 Impairment charge (3,905 ) (4,300 ) Ending balance $ — $ 3,905 Management completed its annual goodwill impairment assessment as of April 30, 2020. first 2020 19 second 2020. $3.9 second 2020. no |
Note 5 - Leases
Note 5 - Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | Note 5. Our leases consist primarily of office space. Leases with an initial term of 12 not not Most leases include one one three not twelve December 31, 2020 not Maturities of lease liabilities were as follows (in thousands): December 31, 2020 2021 $ 212 2022 88 2023 57 Thereafter 19 Total $ 376 Less interest 28 Present value of lease liabilities $ 348 Other information related to the Company's operating leases was as follows (in thousands): December 31, 2020 Lease Term and Discount Rate: Weighted average remaining lease term (years) 2.20 Weighted average discount rate 6.75 % |
Note 6 - Borrowings
Note 6 - Borrowings | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 6. Note Refinancing and 2017 August 9, 2019, 2017 January 2019 third 2028 December 31, 2020 $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 $2.6 $0.4 $2.2 not April 1, 2022. not December 31, 2021. not may, 2017 first 2017 9,000,000 ten 22,250,000 $0.01 $0.9 $0.5 The carrying value of the 2017 December 31, 2020 December 31, 2019 Principal balance $ 85,938 $ 85,938 Unamortized debt premium 4,177 886 Total, 2017 Notes $ 90,115 $ 86,824 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 7. 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. February 19, 2020. Assuming 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, September 2, 2020, . On February 28, 2013, 2007 1 $0.3 three $0.3 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. Eventually, the parties reached a settlement in this matter, which required an upfront payment of $0.5 three $0.4 |
Note 8 - Fair Value Accounting
Note 8 - Fair Value Accounting | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 8. Fair Value Measurements The Company's valuation techniques are based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These 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 as follows as of December 31, 2020 2019 December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: 2017 Notes (Level 3) $ 90,115 $ 11,365 $ 86,824 $ 21,289 The 2017 not 2017 3 no No 1% April 1, 2019 December 31, 2023; 2% January 1, 2024 December 31, 2028; 10% January 1, 2029 March 2033. Goodwill 4 2020. Assets reported at fair value on a nonrecurring basis include the following (in thousands): December 31, 2020 Fair Value (Level 3) Gains and (Losses) Goodwill $ — $ (3,905 ) Activity during 2020 3 Goodwill Activity: Balance, December 31, 2019 $ 3,905 Impairment charge (3,905 ) Balance, December 31, 2020 $ — The determination of the goodwill impairment was based on a discounted cash flow approach utilizing forecasted revenue ranging from $57 $69 15%. Prior to the Company's acquisition of HCS in 2017, no December 31, 2020 2019. |
Note 9 - Income Taxes
Note 9 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 9. The components of income tax expense (benefit) from continuing operations are (in thousands): For the Years Ended December 31, 2020 2019 Current: Federal $ — $ (11 ) State and local 28 36 Total current $ 28 $ 25 Below is a reconciliation of the expected federal income tax expense (benefit) using the federal statutory tax rate of 21% For the Years Ended December 31, 2020 2019 Income tax benefit at statutory rate $ (1,926 ) $ (2,949 ) State income taxes, net of federal tax benefit (71 ) 36 Valuation allowance 2,278 2,528 Bankruptcy reorganization — 9 Other (253 ) 401 Total income tax expense $ 28 $ 25 Prior to 2019 no not December 31, 2020 2019 The Company's determination of the realizable deferred tax assets requires the exercise of significant judgment, based in part on business plans and expectations about future outcomes. In the event the actual results differ from these estimates in future periods, the Company may December 31, 2020 2019 $ 168.8 $ 166.5 Significant components of the Company's deferred tax assets and liabilities as of December 31, 2020 2019 December 31, 2020 2019 Deferred tax assets: Federal NOL carryforwards $ 153,320 $ 152,705 State NOL carryforwards 9,044 9,003 Goodwill impairment, HCS 2,069 1,084 Business interest expense limitation 2,578 1,877 Other 1,812 1,876 Gross deferred tax asset 168,823 166,545 Valuation allowance (168,823 ) (166,545 ) Deferred tax asset — — Deferred tax liabilities: Other — — Deferred tax liability — — Net deferred tax asset $ — $ — The other deferred tax assets consist of differences in various accrued expenses, debt restructuring expenses, goodwill and intangible asset book to tax differences, and various other book to tax differences. As of December 31, 2020 $ 730.1 250.3 not may not 2025 2037. 2017, 2017 the portion of NOLs that will not 94.9 million. T 2004. may 2019 2037. The activity in the accrued liability for unrecognized tax benefits for the years ended December 31, 2020 2019 For the Years Ended December 31, 2020 2019 Beginning balance $ — $ 11 Gross increases – tax positions in current period — — Lapse of statute of limitations — (11 ) Ending balance $ — $ — Accounting for income taxes, including uncertain tax positions, represents management's best estimate of various events and transactions, and requires significant judgment. As of December 31, 2020 2019 no not twelve not 2020 2019 $0.1 December 31, 2020 2019 2017 2020 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents - three four $250,000. 0.8 December 31, 2020 |
Accounts Receivable [Policy Text Block] | Accounts and Unbilled Receivables - not |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Goodwill and Indefinite-Lived Intangible Assets - not second |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Impairment of Long-Lived Intangible Assets with Finite Lives - may not |
Income Tax, Policy [Policy Text Block] | Income Taxes - $ 168.8 166.5 December 31, 2020 2019 not not not 50%. Under the income tax guidance, companies are required to identify and consider all available evidence, both positive and negative, in determining whether it is more likely than not not not not The weight given to the potential effect of negative and positive evidence should be commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is required to support a conclusion that a valuation allowance is not not not The Company examines and weighs all available evidence (both positive and negative and both historical and forecasted) in the process of determining whether it is more likely than not not not If a valuation allowance is necessary, the Company considers all sources of taxable income in determining the amount of valuation allowance to be recorded. Sources of taxable income identified in the income tax guidance include the following: 1 2 3 4 The Company currently evaluates estimates of uncertainty in income taxes based upon a framework established in the income tax accounting guidance. The guidance prescribes a recognition threshold and measurement standard for the recognition and measurement of tax positions taken or expected to be taken in a tax return. In accordance with the guidance, the Company evaluates whether a tax position will more likely than not 50% |
Earnings Per Share, Policy [Policy Text Block] | Earnings (Loss) Per Share (“EPS”) - |
Revenue from Contract with Customer [Policy Text Block] | Revenue and Cost Recognition - not not no |
Segment Reporting, Policy [Policy Text Block] | Segments - one |
Note 3 - Revenue; Accounts an_2
Note 3 - Revenue; Accounts and Unbilled Receivables (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | For the Year Ended December 31, 2020 For the Year Ended December 31, 2019 Type of Customer CSB $ 50,054 97.5 % $ 61,620 97.1 % Other 1,300 2.5 % 1,854 2.9 % Total $ 51,354 100.0 % $ 63,474 100.0 % |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | December 31, 2020 December 31, 2019 Accounts receivable $ 2,705 $ 4,083 Unbilled receivables (Contract Assets) 2,303 2,500 Total accounts and unbilled receivables $ 5,008 $ 6,583 |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2020 December 31, 2019 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 Tradenames 1,147 — 1,147 1,147 — 1,147 Total indefinite-lived assets $ 1,147 $ — $ 1,147 $ 5,052 $ — $ 5,052 Finite-lived assets (in thousands): Customer relationships $ 6,895 $ 3,365 $ 3,530 $ 6,895 $ 2,380 $ 4,515 Non-compete agreement 627 627 — 627 505 122 Total finite-lived assets $ 7,522 $ 3,992 $ 3,530 $ 7,522 $ 2,885 $ 4,637 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Amortization expense (in thousands): 2019 $ 1,194 2020 1,107 Estimated future amortization expense (in thousands): 2021 $ 985 2022 985 2023 985 Thereafter 575 Total estimated amortization expense $ 3,530 Years Ended December 31, 2020 2019 Goodwill activity (in thousands): Beginning balance $ 3,905 $ 8,205 Impairment charge (3,905 ) (4,300 ) Ending balance $ — $ 3,905 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | December 31, 2020 2021 $ 212 2022 88 2023 57 Thereafter 19 Total $ 376 Less interest 28 Present value of lease liabilities $ 348 |
Operating Lease, Other Information [Table Text Block] | December 31, 2020 Lease Term and Discount Rate: Weighted average remaining lease term (years) 2.20 Weighted average discount rate 6.75 % |
Note 6 - Borrowings (Tables)
Note 6 - Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2020 December 31, 2019 Principal balance $ 85,938 $ 85,938 Unamortized debt premium 4,177 886 Total, 2017 Notes $ 90,115 $ 86,824 |
Note 8 - Fair Value Accounting
Note 8 - Fair Value Accounting (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | December 31, 2020 December 31, 2019 Carrying Value Fair Value Carrying Value Fair Value Financial liabilities: 2017 Notes (Level 3) $ 90,115 $ 11,365 $ 86,824 $ 21,289 |
Fair Value Measurements, Nonrecurring [Table Text Block] | December 31, 2020 Fair Value (Level 3) Gains and (Losses) Goodwill $ — $ (3,905 ) Goodwill Activity: Balance, December 31, 2019 $ 3,905 Impairment charge (3,905 ) Balance, December 31, 2020 $ — |
Note 9 - Income Taxes (Tables)
Note 9 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For the Years Ended December 31, 2020 2019 Current: Federal $ — $ (11 ) State and local 28 36 Total current $ 28 $ 25 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For the Years Ended December 31, 2020 2019 Income tax benefit at statutory rate $ (1,926 ) $ (2,949 ) State income taxes, net of federal tax benefit (71 ) 36 Valuation allowance 2,278 2,528 Bankruptcy reorganization — 9 Other (253 ) 401 Total income tax expense $ 28 $ 25 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2020 2019 Deferred tax assets: Federal NOL carryforwards $ 153,320 $ 152,705 State NOL carryforwards 9,044 9,003 Goodwill impairment, HCS 2,069 1,084 Business interest expense limitation 2,578 1,877 Other 1,812 1,876 Gross deferred tax asset 168,823 166,545 Valuation allowance (168,823 ) (166,545 ) Deferred tax asset — — Deferred tax liabilities: Other — — Deferred tax liability — — Net deferred tax asset $ — $ — |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | For the Years Ended December 31, 2020 2019 Beginning balance $ — $ 11 Gross increases – tax positions in current period — — Lapse of statute of limitations — (11 ) Ending balance $ — $ — |
Note 1 - Basis of Presentatio_2
Note 1 - Basis of Presentation, Business Plan and Liquidity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 8 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.01 | $ 0.01 | |||
Net Income (Loss) Attributable to Parent, Total | $ (9,169) | $ (10,225) | |||
Net Cash Provided by (Used in) Operating Activities, Total | (677) | (5,168) | |||
Stockholders' Equity Attributable to Parent, Ending Balance | (81,090) | (72,059) | $ (62,956) | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,340 | 2,032 | |||
Liabilities, Total | 93,266 | $ 91,476 | |||
Workforce Reduction Due to Impact of COVID-19, Percent | 8.00% | ||||
Senior Notes [Member] | The 2017 Notes [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.50% | ||||
NovaStar Mortgage LLC [Member] | |||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 300 |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting and Reporting Policies (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash, Uninsured Amount | $ 800 | |
Deferred Tax Assets, Gross, Total | $ 168,823 | $ 166,545 |
Number of Reportable Segments | 1 |
Note 3 - Revenue; Accounts an_3
Note 3 - Revenue; Accounts and Unbilled Receivables (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Customer Contracts, Notice of Termination Period (Day) | 60 days | |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | $ 0 | $ 0 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 4 | 4 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | Four Customers [Member] | ||
Concentration Risk, Percentage | 63.30% | 63.10% |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Four Customers [Member] | ||
Concentration Risk, Percentage | 64.00% | |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Four Non-CSB Customers [Member] | ||
Concentration Risk, Percentage | 61.60% | |
Number of Major Customers | 4 | 4 |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Twelve CSB Customers [Member] | ||
Concentration Risk, Percentage | 88.80% | |
Number of Major Customers | 12 | |
Customer Concentration Risk [Member] | Accounts and Unbilled Receivables [Member] | Fourteen CSB Customers [Member] | ||
Concentration Risk, Percentage | 96.60% | |
Number of Major Customers | 14 |
Note 3 - Revenue; Accounts an_4
Note 3 - Revenue; Accounts and Unbilled Receivables - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financial services revenue, amount | $ 51,354 | $ 63,474 |
Financial services revenue, percentage | 100.00% | 100.00% |
CSB Customers [Member] | ||
Financial services revenue, amount | $ 50,054 | $ 61,620 |
Financial services revenue, percentage | 97.50% | 97.10% |
Non-CSB Customers [Member] | ||
Financial services revenue, amount | $ 1,300 | $ 1,854 |
Financial services revenue, percentage | 2.50% | 2.90% |
Note 3 - Revenue; Accounts an_5
Note 3 - Revenue; Accounts and Unbilled Receivables - Accounts and Unbilled Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable | $ 2,705 | $ 4,083 |
Unbilled receivables (Contract Assets) | 2,303 | 2,500 |
Total accounts and unbilled receivables | $ 5,008 | $ 6,583 |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill, Impairment Loss | $ 3,905 | $ 4,300 |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill | $ 3,905 | $ 8,205 | |
Tradenames | 1,147 | 1,147 | |
Total indefinite-lived assets | 1,147 | 5,052 | |
Finite-lived intangible assets, gross | 7,522 | 7,522 | |
Finite-lived intangible assets, accumulated amortization | 3,992 | 2,885 | |
Finite-lived intangible assets, net | 3,530 | 4,637 | |
Customer Relationships [Member] | |||
Finite-lived intangible assets, gross | 6,895 | 6,895 | |
Finite-lived intangible assets, accumulated amortization | 3,365 | 2,380 | |
Finite-lived intangible assets, net | 3,530 | 4,515 | |
Noncompete Agreements [Member] | |||
Finite-lived intangible assets, gross | 627 | 627 | |
Finite-lived intangible assets, accumulated amortization | 627 | 505 | |
Finite-lived intangible assets, net | $ 122 |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
2019 | $ 1,194 | |
2020 | 1,107 | |
2021 | 985 | |
2022 | 985 | |
2023 | 985 | |
Thereafter | 575 | |
Total estimated amortization expense | 3,530 | |
Beginning balance | 3,905 | $ 8,205 |
Impairment charge | (3,905) | (4,300) |
Ending balance | $ 3,905 |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) | Dec. 31, 2020 |
Minimum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 1 year |
Maximum [Member] | |
Lessee, Operating Lease, Renewal Term (Year) | 3 years |
Note 5 - Leases - Maturities of
Note 5 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021 | $ 212 |
2022 | 88 |
2023 | 57 |
Thereafter | 19 |
Total | 376 |
Less interest | 28 |
Present value of lease liabilities | $ 348 |
Note 5 - Leases - Operating Lea
Note 5 - Leases - Operating Lease Information (Details) | Dec. 31, 2020 |
Weighted average remaining lease term (years) (Year) | 2 years 73 days |
Weighted average discount rate | 6.75% |
Note 6 - Borrowings (Details Te
Note 6 - Borrowings (Details Textual) - USD ($) $ / shares in Units, $ in Thousands | Jul. 01, 2019 | Jul. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 30, 2033 | Dec. 31, 2023 | Dec. 31, 2028 |
Amortization of Debt Discount (Premium) | $ 3,291 | $ 1,262 | |||||
Warrants Issued in Debt Restructuring [Member] | |||||||
Warrants and Rights Outstanding, Term (Year) | 10 years | ||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 22,250,000 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.01 | ||||||
Common Stock [Member] | |||||||
Stock Issued During Period, Shares, Issued for Debt Restructuring (in shares) | 9,000,000 | ||||||
Senior Notes [Member] | Post-modification Notes [Member] | |||||||
Debt Instrument, Face Amount | $ 85,900 | ||||||
Senior Notes [Member] | The 2017 Notes [Member] | |||||||
Percentage of of Excess Cash Flow Each Year to Noteholders | 50.00% | ||||||
Debt Instrument, Redemption Notice, Number Of Days (Day) | 30 days | ||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.00% | ||||||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities, Total | $ 2,600 | ||||||
Debt Instrument, Aggregate Amount Due | $ 400 | ||||||
Payments Against Future Quarterly Interest Payments | $ 2,200 | ||||||
Amortization of Debt Discount (Premium) | 900 | ||||||
Interest Payable | $ 500 | ||||||
Senior Notes [Member] | The 2017 Notes [Member] | Forecast [Member] | |||||||
Debt Instrument, Interest Rate During Period | 10.00% | 1.00% | 2.00% |
Note 6 - Borrowings - Schedule
Note 6 - Borrowings - Schedule of Debt (Details) - The 2017 Notes [Member] - Senior Notes [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Principal balance | $ 85,938 | $ 85,938 |
Unamortized debt premium | 4,177 | 886 |
Total, 2017 Notes | $ 90,115 | $ 86,824 |
Note 7 - Commitments and Cont_2
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Feb. 08, 2013 | Dec. 31, 2020 | Dec. 31, 2007 |
NovaStar Mortgage Funding Trust Case [Member] | |||
Payments for Legal Settlements | $ 0.3 | ||
Settlement Period for Quarterly Payments (Year) | 3 years | ||
Loss Contingency Accrual, Ending Balance | $ 0.3 | ||
Indemnity Claimants’ Claims [Member] | |||
Settlement Period for Quarterly Payments (Year) | 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 8 - Fair Value Accountin_2
Note 8 - Fair Value Accounting (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2020 | Jan. 01, 2029 | Jan. 01, 2024 | Dec. 31, 2019 | Apr. 01, 2019 | |
Goodwill impairment, Discounted Cash Flow Approach, Cost of Capital Percentage | 15.00% | ||||
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |||||
Debt Securities, Available-for-sale, Total | $ 0 | $ 0 | |||
Minimum [Member] | |||||
Goodwill Impairment, Discounted Cash Flow Approach, Forecasted Revenue | 57,000 | ||||
Maximum [Member] | |||||
Goodwill Impairment, Discounted Cash Flow Approach, Forecasted Revenue | $ 69,000 | ||||
Senior Notes [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||
Senior Notes [Member] | Forecast [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | 2.00% |
Note 8 - Fair Value Accountin_3
Note 8 - Fair Value Accounting - Carrying Values and Fair Values of Financial Instruments (Details) - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
2017 Notes (Level 3) | $ 90,115 | $ 86,824 |
Estimate of Fair Value Measurement [Member] | ||
2017 Notes (Level 3) | $ 11,365 | $ 21,289 |
Note 8 - Fair Value Accountin_4
Note 8 - Fair Value Accounting - Financial Assets on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill, gains (losses) | $ (3,905) | $ (4,300) |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Goodwill, fair value | 3,905 | 3,905 |
Goodwill, gains (losses) | (3,905) | |
Balance | 3,905 | |
Balance | $ 3,905 |
Note 9 - Income Taxes (Details
Note 9 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |
Deferred Tax Assets, Valuation Allowance, Total | $ 168,823 | $ 166,545 |
Operating Loss Carryforwards, Mortgage Securities | 730,100 | 250,300 |
Operating Loss Carryforwards with No Expiration | 94,900 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 100 | $ 100 |
Domestic Tax Authority [Member] | ||
Open Tax Year | 2017 2018 2019 2020 | |
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] | ||
Open Tax Year | 2017 2018 2019 2020 | |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 |
Note 9 - Income Taxes - Compone
Note 9 - Income Taxes - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | ||
Federal | $ (11) | |
State and local | 28 | 36 |
Total current | $ 28 | $ 25 |
Note 9 - Income Taxes - Reconci
Note 9 - Income Taxes - Reconciliation of the Expected Federal Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income tax benefit at statutory rate | $ (1,926) | $ (2,949) |
State income taxes, net of federal tax benefit | (71) | 36 |
Valuation allowance | 2,278 | 2,528 |
Bankruptcy reorganization | 9 | |
Other | (253) | 401 |
Total income tax expense | $ 28 | $ 25 |
Note 9 - Income Taxes - Deferre
Note 9 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Federal NOL carryforwards | $ 153,320 | $ 152,705 |
State NOL carryforwards | 9,044 | 9,003 |
Business interest expense limitation | 2,578 | 1,877 |
Other | 1,812 | 1,876 |
Gross deferred tax asset | 168,823 | 166,545 |
Valuation allowance | (168,823) | (166,545) |
Deferred tax asset | ||
Deferred tax liabilities: | ||
Other | ||
Deferred tax liability | ||
Net deferred tax asset | ||
Healthcare Staffing [Member] | ||
Deferred tax assets: | ||
Goodwill impairment, HCS | $ 2,069 | $ 1,084 |
Note 9 - Income Taxes - Activit
Note 9 - Income Taxes - Activity in the Accrued Liability for Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Beginning balance | $ 11 | |
Gross increases – tax positions in current period | ||
Lapse of statute of limitations | (11) | |
Ending balance |