Novation Companies (NOVCQ) 10-K 4 Mar 21 2020 FY Annual report Financial data

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