Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 11, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Central Index Key | 0001279715 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-50587 | ||
Entity Registrant Name | Wright Investors Service Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 13-4005439 | ||
Entity Address, Address Line One | 118 North Bedford Road | ||
Entity Address, Address Line Two | Ste. 100 | ||
Entity Address, City or Town | Mount Kisco | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10549 | ||
City Area Code | 914 | ||
Local Phone Number | 242-5700 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Auditor Attestation Flag | false | ||
Entity Shell Company | true | ||
Entity Public Float | $ 4,000,000 | ||
Entity Common Stock, Shares Outstanding | 20,210,529 | ||
Documents Incorporated By Reference Text Block | Part III of this report incorporates certain information by reference from the registrant’s proxy statement for the 2021 annual meeting of stockholders, or an amendment to this Annual Report on Form 10-K, to be filed no later than 120 days after the close of the registrant’s fiscal year ended December 31, 2021. | ||
Auditor Name | EISNERAMPER LLP | ||
Auditor Location | Fort Lauderdale, Florida | ||
Auditor Firm Id | 274 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | ||
Compensation and benefits | $ 450 | $ 496 |
Other operating | 719 | 829 |
Total operating expenses | 1,169 | 1,325 |
Loss from operations | (1,169) | (1,325) |
Interest and other income, net | 53 | 311 |
Loss from operations before income taxes | (1,116) | (1,014) |
Income tax (expense) benefit | (2) | 21 |
Net loss | $ (1,118) | $ (993) |
Basic and diluted loss per share | $ (0.06) | $ (0.05) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 5,396 | $ 6,469 |
Income tax receivable | 73 | 73 |
Prepaid expenses and other current assets | 46 | 40 |
Total current assets | 5,515 | 6,582 |
Other assets | 8 | 8 |
Total assets | 5,523 | 6,590 |
Current liabilities | ||
Accounts payable and accrued expenses | 93 | 83 |
Loan payable | 53 | |
Total current liabilities | 93 | 136 |
Total liabilities | 93 | 136 |
Stockholders' equity | ||
Preferred stock, par value $0.01 per share, authorized 10,000,000 shares; none issued | ||
Common stock, par value $0.01 per share, authorized 30,000,000 shares; Issued 21,025,748 and 20,654,996 as of December 31, 2021, 2020, respectively; Outstanding 20,210,529 and 19,839,777 as of December 31, 2021 and 2020, respectively; 215,632 and 227,160 shares issuable as of December 31, 2021 and 2020, respectively. | 210 | 206 |
Additional paid-in capital | 34,316 | 34,226 |
Accumulated deficit | (27,397) | (26,279) |
Treasury stock, at cost (815,219 shares at December 31, 2021 and 2020, respectively) | (1,699) | (1,699) |
Total stockholders' equity | 5,430 | 6,454 |
Total liabilities and stockholders' equity | $ 5,523 | $ 6,590 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, issued | 21,025,748 | 20,654,996 |
Common stock, outstanding | 20,210,529 | 19,839,777 |
Common stock, issuable | 215,632 | 227,160 |
Treasury stock, shares | 815,219 | 815,219 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (1,118) | $ (993) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Equity based compensation, including issuance of stock to directors | 94 | 92 |
Gain on extinguishment of debt | (53) | |
Changes in other operating items: | ||
Deferred tax asset | 37 | |
Income tax receivable | (58) | |
Prepaid expenses, other current assets, and other assets | (6) | 109 |
Accounts payable and accrued expenses | 10 | (107) |
Net cash used in operating activities | (1,073) | (920) |
Cash flows from investing activities | ||
Investments in U.S. Treasury Bills | (250) | |
Proceeds from redemption of U.S. Treasury Bills | 250 | |
Net cash provided by investing activities | ||
Cash flows from financing activities | ||
Proceeds from loan | 53 | |
Net cash provided by financing activities | 53 | |
Net decrease in cash and cash equivalents | (1,073) | (867) |
Cash and cash equivalents at the beginning of the year | 6,469 | 7,336 |
Cash and cash equivalents at the end of the year | 5,396 | 6,469 |
Supplemental disclosures of cash flow information | ||
Net cash paid during the year for Income taxes | $ 2 | $ 4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock (Issued) [Member] | Additional paid-in Capital [Member] | Accumulated deficit [Member] | Treasury stock, at cost [Member] | Total |
Balance at Dec. 31, 2019 | $ 206 | $ 34,134 | $ (25,286) | $ (1,699) | $ 7,355 |
Balance, shares at Dec. 31, 2019 | 20,654,996 | ||||
Net loss | (993) | (993) | |||
Equity based compensation expense | 12 | 12 | |||
Stock based compensation expense to directors | 80 | 80 | |||
Balance at Dec. 31, 2020 | $ 206 | 34,226 | (26,279) | (1,699) | 6,454 |
Balance, shares at Dec. 31, 2020 | 20,654,996 | ||||
Net loss | (1,118) | (1,118) | |||
Equity based compensation expense | 14 | 14 | |||
Stock based compensation expense to directors | $ 4 | 76 | 80 | ||
Stock based compensation expense to directors, shares | 370,752 | ||||
Balance at Dec. 31, 2021 | $ 210 | $ 34,316 | $ (27,397) | $ (1,699) | $ 5,430 |
Balance, shares at Dec. 31, 2021 | 21,025,748 |
Description of activities
Description of activities | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of activities | 1. Description of activities Wright Investors’ Service Holdings, Inc. (the “Company”) has nominal operations and nominal assets aside from its cash and cash equivalents, and is therefore considered a shell company, as defined in U.S. securities laws and regulations. The Company is not engaged in the business of investing, reinvesting, or trading in securities, and it does not hold itself out as being engaged in those activities. The Company intends to evaluate and explore all available strategic options. The Company will continue to work to maximize stockholder value. Such strategic options may include acquisition of an investment advisory business, acquisition of a financial services business, creating partnerships or joint ventures for those or other businesses and investing in other businesses that provide attractive opportunities for growth. The directors will also consider alternatives for distributing some or all of the Company’s cash and cash equivalents. Until such time as a decision is made as to how the liquid assets of the Company are so deployed, the Company intends to invest its liquid assets in high-grade, short- term investments (such as cash and cash equivalents) consistent with the preservation of principal, maintenance of liquidity and avoidance of speculation. The Company may be classified as an inadvertent investment company if the Company acquires investment securities in excess of 40% of its total assets. As of December 31, 2021, the Company is not considered an inadvertent investment company. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Principles of consolidation . The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, all of which are inactive. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Cash and cash equivalents Cash equivalents represent short-term, highly liquid investments, which are readily convertible to cash and have maturities of three months or less at time of purchase. Cash equivalents, which are carried at fair value or amortized cost, as applicable, consist of holdings in a money market fund and in treasury bills. Cash and cash equivalents amounted to approximately $5,396,000 and $6,469,000 at December 31, 2021 and 2020, respectively. 16 Table of Contents WRIGHT INVESTORS’ SERVICE HOLDINGS, INC. Notes to Consolidated Financial Statements December 31, 2021 Investment Valuation The Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction costs. A fair value hierarchy provides for prioritizing inputs to valuation techniques used to measure fair value into three levels: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Level 3 Unobservable inputs. Unobservable inputs reflect the assumptions that the Company develops based on available An asset or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 or Level 2 assets or liabilities. As of December 31, 2021, and 2020, the Company held $5,250,000 and $5,950,000 in U.S. government securities. U.S. government securities are valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. U.S. government securities are categorized in Level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities. The U.S. government securities, which have maturities of three months or less at time of purchase, are reported as Cash and cash equivalents on the consolidated balance sheets as of December 31, 2021 and 2020. The following table presents the Company’s financial instruments at fair value (in thousands): Fair Value Measurements as of December 31, 2021 12/31/2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,250 $ - $ 5,250 - Fair Value Measurements as of December 31, 2020 12/31/2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,950 $ - $ 5,950 - 17 Table of Contents WRIGHT INVESTORS’ SERVICE HOLDINGS, INC. Notes to Consolidated Financial Statements December 31, 2021 Investment in undeveloped land The Company owns certain non-strategic assets, including an investment in land and certain flowage rights in undeveloped property (the “properties”) primarily located Killingly, Connecticut. The properties were fully impaired as of December 31, 2018. Per share data Loss per share for the year ended December 31, 2021 and 2020, respectively, is calculated based on 20,286,936 and 19,977,927 weighted average outstanding shares of common stock, including weighted average issuable shares of 276,043 and 138,150 at December 31, 2021 and 2020, respectively. Stock awards Unvested Stock awards for 33,334 and 66,666 shares of common stock for the year ended December 30, 2021 and 2020, respectively, were not included in the diluted computation as their effect would be anti-dilutive since the Company incurred net losses for both years. Stock-based compensation Stock-based compensation cost for employees is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. In accordance with ASU 2016-09, the Company has made the accounting policy election to continue to estimate forfeitures based upon historical occurrences. See Note 8 to the Consolidated Financial Statements for further information regarding the Company’s stock-based compensation assumptions and expense. Income taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The accounting for uncertain tax positions guidance requires that the Company recognize the financial statement benefit of a tax position only after determining that the Company would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties on income taxes, including those related to uncertain tax positions as interest and other expenses, respectively. The Company had no income tax uncertainties at December 31, 2021 and 2020. Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments. Investments in cash and money market funds are insured up to $250,000 per depositor, per insured bank. Investments in treasury bills are insured up to $500,000. For the years ended December 31, 2021 and 2020, a substantial portion of the Company's investments in cash and treasury bills are in excess of these limits. |
Certain New Accounting guidance
Certain New Accounting guidance not yet adopted | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Certain New Accounting guidance not yet adopted | 3. Certain New Accounting guidance not yet adopted In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-13 (ASU 2016-13) "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The standard, as amended, is effective for periods beginning after December 15, 2022 for both interim and annual periods. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-13 to have an impact on its consolidated financial statements. |
Accounts payable and accrued ex
Accounts payable and accrued expenses | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accounts payable and accrued expenses | 4. Accounts payable and accrued expenses Accounts payable and accrued expenses consist of the following (in thousands): Year Ended December 31, 2021 2020 Accrued professional fees $ 40 $ 42 Other 53 41 Total $ 93 $ 83 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 5. Income taxes The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 31, 2021 2020 Current Federal $ - $ (37 ) State and local 2 (21 ) Total current 2 (58 ) Deferred Federal $ - $ 37 State and local - - Total deferred $ - $ 37 Total income tax (benefit) expense $ 2 $ (21 ) For the year ended December 31, 2021, current income tax expense related to operations represents accruals of minimum state income taxes. For the year ended December 31, 2020, the current income tax benefit related to operations represents a refundable alternative minimum tax credit net of adjustments to and accruals of minimum state income taxes. For the year ended December 31, 2020, deferred income tax expense represents the utilization of the alternative minimum tax credit carryforward. The difference between the benefit for income taxes computed at the statutory rate and the reported amount of tax expense (benefit) from operations is as follows: Year ended December 31, 2021 2020 Federal income tax rate ( 21.0 )% (21.0 )% State income tax (net of federal effect) ( 5.0 ) 55.5 Change in valuation allowance 26.4 (38.5 ) Deferred tax asset write-down ( 1.2 ) - Non-deductible expenses 1.0 1.9 Effective tax rate 0.2 % (2.1 )% 19 Table of Contents WRIGHT INVESTORS’ SERVICE HOLDINGS, INC. Notes to Consolidated Financial Statements December 31, 2021 The deferred tax assets and liabilities are summarized as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 4,770 $ 4,501 Capital loss carryforwards 703 703 Equity-based compensation 157 132 Unrealized loss on investments 98 98 Gross deferred tax assets 5,728 5,434 Less: valuation allowance ( 5,728 ) (5,434 ) Deferred tax assets after valuation allowance - - Net Deferred tax assets $ - - A valuation allowance is provided when it is more likely than not that some portion of deferred tax assets will not be realized. The valuation allowance increased / (decreased) by approximately $294,000 and $(391,000) respectively, during the years ended December 31, 2021 and 2020. The increase in the valuation allowance during the year ended December 31, 2021 was mainly due to increases in the net operating loss carryforward and other deferred tax assets. The decrease in the valuation allowance during the year ended December 31, 2020 was mainly due to adjustments to the net operating loss carryforward. The Company files a consolidated federal tax return with its subsidiaries. As of December 31, 2021, the Company has a federal net operating loss carryforward of approximately $21,339,000, of which $15,177,000 expires from 2031 2037 2022 2042 2022 2024 |
Loan Payable
Loan Payable | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedges, Liabilities [Abstract] | |
Loan Payable | 6. Loan Payable On May 1, 2020, the Company received $53,000 from Fieldpoint Private Bank pursuant to the Paycheck Protection Program (the “PPP Loan”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The Company used all proceeds from the PPP Loan to retain employees, maintain payroll and make operating expense payments to support business continuity throughout the COVID-19 pandemic. The total amount of the PPP Loan was forgiven as of January 7, 2021 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | 7. Capital Stock The Company’s Board of Directors, without any vote or action by the holders of common stock, is authorized to issue preferred stock from time to time in one or more series and to determine the number of shares and to fix the powers, designations, preferences and relative, participating, optional or other special rights of any series of preferred stock. The Board of Directors authorized the Company to repurchase up to 5,000,000 outstanding shares of common stock from time to time either in open market or privately negotiated transactions. At December 31, 2021 and 2020, the Company had repurchased 2,041,971 shares of its common stock and a total of 2,958,029 of the authorized shares, remained available for repurchase at December 31, 2021. During the year ended December 31, 2021, the Company issued 370,752 shares of Company common stock to directors, 66,666 stock awards vested which were not issued and there were 148,966 shares of Company common stock to be issued to the independent directors of the Company, in payment of quarterly directors’ fees due to them for services in 2021. The equity compensation awards were issued pursuant to the exemption from the registration requirements of Section 5 of the Securities Act of 1933 (“1933 Act”) provided by Section 4(a)(2) of the 1933 Act. |
Incentive stock plans and stock
Incentive stock plans and stock-based compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Incentive stock plans and stock-based compensation | 8. Incentive stock plans and stock-based compensation Stock awards On February 13, 2019, 100,000 stock awards were issued to a newly appointed director of the Company. The stock awards vest equally, annually, over 3 years. The stock awards are valued based on the closing price of $0.42 of the Company’s common stock on February 13, 2019. At December 31, 2021, 33,334 stock awards remained unvested and 66,666 shares are to be issued. The Company recorded compensation expense of approximately $13,800 and $12,500 for the years ended December 31, 2021 and 2020, respectively, related to those stock awards. The total unrecognized compensation expense related to these unvested stock awards at December 31, 2021 is $1,750, which will be recognized over the remaining vesting period of approximately 0.1 years. Common stock options The Company adopted a stock-based compensation plan for employees and non-employee members of its Board of Directors in November 2003 (the “2003 Plan”), and the National Patent Development Corporation 2007 Incentive Stock Plan in December 2007 (the “2007 NPDC Plan”). The periods during which additional awards may be granted under the plans have expired and no further awards may be granted under any of these plans after December 20, 2017. As a consequence, any equity compensation awards issued after that time will be on terms determined by the Board of Directors or the Compensation Committee of the Board of Directors and pursuant to exemptions from the registration requirements of the securities laws. As of December 31, 2021, all options were vested and there were no outstanding options under the 2007 NPDC Plan. There were no grants, forfeitures or exercises of options during the year of 2021. During 2021, 100,000 options with a weighted average exercise price of $1.29, a weighted average contractual term of 1 years, and zero aggregate intrinsic value per share had expired. As of December 31, 2020, all options were vested and there were outstanding options to acquire 100,000 common shares under the 2007 NPDC Plan. All 100,000 options were vested and exercisable, having an exercise price of $1.29 per share, a remaining contractual term of 1 year and zero aggregate intrinsic value. There were no grants, forfeitures or exercises of options during the year of 2020. During 2020, 450,000 options with a weighted average exercise price of $1.36, a weighted average contractual term of 2 years, and zero aggregate intrinsic value per share had expired. Capital Stock During the year ended December 31, 2021, the Company incurred $80,000 of director fees payable in 325,889 shares of its common stock, of which 176,923 were issued and 148,966 are issuable as of December 31, 2021. As of December 31, 2021, there were 148,966 shares of Company common stock to be issued to the independent directors of the Company, in payment of quarterly directors’ fees due to them for services in 2021 and 66,666 stock awards to be issued to a director of the Company. The equity compensation awards were issued pursuant to the exemption from the registration requirements of Section 5 of the Securities Act of 1933 (“1933 Act”) provided by Section 4(a)(2) of the 1933 Act. |
Commitments, Contingencies, and
Commitments, Contingencies, and Other | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies, and Other | 9. Commitments, Contingencies, and Other a) The future direct and indirect impact of the coronavirus (COVID-19) on our businesses, results of operations and financial b) The Company has interests in land and certain flowage rights in undeveloped property (the “properties”) primarily located in In September 2014, the Connecticut Department of Energy and Environmental Protection (“DEEP”) issued two Consent |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 10. Subsequent Event The Company evaluated subsequent events through the filing of this Annual Report on Form 10-K, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation . The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, all of which are inactive. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents represent short-term, highly liquid investments, which are readily convertible to cash and have maturities of three months or less at time of purchase. Cash equivalents, which are carried at fair value or amortized cost, as applicable, consist of holdings in a money market fund and in treasury bills. Cash and cash equivalents amounted to approximately $5,396,000 and $6,469,000 at December 31, 2021 and 2020, respectively. |
Investment Valuation | Investment Valuation The Company carries its investments at fair value. Fair value is an estimate of the exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction costs. A fair value hierarchy provides for prioritizing inputs to valuation techniques used to measure fair value into three levels: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Level 3 Unobservable inputs. Unobservable inputs reflect the assumptions that the Company develops based on available An asset or liability's level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 or Level 2 assets or liabilities. As of December 31, 2021, and 2020, the Company held $5,250,000 and $5,950,000 in U.S. government securities. U.S. government securities are valued using a model that incorporates market observable data, such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued principally using dealer quotations. Money market funds are valued at the closing price reported by the fund sponsor from an actively traded exchange. U.S. government securities are categorized in Level 2 of the fair value hierarchy, depending on the inputs used and market activity levels for specific securities. The U.S. government securities, which have maturities of three months or less at time of purchase, are reported as Cash and cash equivalents on the consolidated balance sheets as of December 31, 2021 and 2020. The following table presents the Company’s financial instruments at fair value (in thousands): Fair Value Measurements as of December 31, 2021 12/31/2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,250 $ - $ 5,250 - Fair Value Measurements as of December 31, 2020 12/31/2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,950 $ - $ 5,950 - |
Investment in undeveloped land | Investment in undeveloped land The Company owns certain non-strategic assets, including an investment in land and certain flowage rights in undeveloped property (the “properties”) primarily located Killingly, Connecticut. The properties were fully impaired as of December 31, 2018. |
Per share data | Per share data Loss per share for the year ended December 31, 2021 and 2020, respectively, is calculated based on 20,286,936 and 19,977,927 weighted average outstanding shares of common stock, including weighted average issuable shares of 276,043 and 138,150 at December 31, 2021 and 2020, respectively. |
Stock awards | Stock awards Unvested Stock awards for 33,334 and 66,666 shares of common stock for the year ended December 30, 2021 and 2020, respectively, were not included in the diluted computation as their effect would be anti-dilutive since the Company incurred net losses for both years. |
Stock-based compensation | Stock-based compensation Stock-based compensation cost for employees is measured at the grant date based on the fair value of the award and is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. In accordance with ASU 2016-09, the Company has made the accounting policy election to continue to estimate forfeitures based upon historical occurrences. See Note 8 to the Consolidated Financial Statements for further information regarding the Company’s stock-based compensation assumptions and expense. |
Income taxes | Income taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to carryforwards and to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The accounting for uncertain tax positions guidance requires that the Company recognize the financial statement benefit of a tax position only after determining that the Company would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. The Company recognizes interest and penalties on income taxes, including those related to uncertain tax positions as interest and other expenses, respectively. The Company had no income tax uncertainties at December 31, 2021 and 2020. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash investments. Investments in cash and money market funds are insured up to $250,000 per depositor, per insured bank. Investments in treasury bills are insured up to $500,000. For the years ended December 31, 2021 and 2020, a substantial portion of the Company's investments in cash and treasury bills are in excess of these limits. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Financial Instruments at Fair Value | The following table presents the Company’s financial instruments at fair value (in thousands): Fair Value Measurements as of December 31, 2021 12/31/2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,250 $ - $ 5,250 - Fair Value Measurements as of December 31, 2020 12/31/2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Treasury bills included in cash and cash equivalents $ 5,950 $ - $ 5,950 - |
Accounts payable and accrued _2
Accounts payable and accrued expenses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accounts payable and accrued expenses | Accounts payable and accrued expenses consist of the following (in thousands): Year Ended December 31, 2021 2020 Accrued professional fees $ 40 $ 42 Other 53 41 Total $ 93 $ 83 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense (Benefit) | The components of income tax expense (benefit) are as follows (in thousands): Year Ended December 31, 2021 2020 Current Federal $ - $ (37 ) State and local 2 (21 ) Total current 2 (58 ) Deferred Federal $ - $ 37 State and local - - Total deferred $ - $ 37 Total income tax (benefit) expense $ 2 $ (21 ) |
Differences Between Statutory and Reported Amount Tax Rates | The difference between the benefit for income taxes computed at the statutory rate and the reported amount of tax expense (benefit) from operations is as follows: Year ended December 31, 2021 2020 Federal income tax rate ( 21.0 )% (21.0 )% State income tax (net of federal effect) ( 5.0 ) 55.5 Change in valuation allowance 26.4 (38.5 ) Deferred tax asset write-down ( 1.2 ) - Non-deductible expenses 1.0 1.9 Effective tax rate 0.2 % (2.1 )% |
Schedule of Deferred Tax Assets and Liabilities | The deferred tax assets and liabilities are summarized as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Net operating loss carryforwards $ 4,770 $ 4,501 Capital loss carryforwards 703 703 Equity-based compensation 157 132 Unrealized loss on investments 98 98 Gross deferred tax assets 5,728 5,434 Less: valuation allowance ( 5,728 ) (5,434 ) Deferred tax assets after valuation allowance - - Net Deferred tax assets $ - - |
Summary of significant accoun_4
Summary of significant accounting policies (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Cash and cash equivalents | $ 5,396,000 | $ 6,469,000 |
Weighted average number of common shares outstanding | 20,286,936 | 19,977,927 |
Weighted average shares issuable | 276,043 | 138,150 |
U.S. government securities | $ 5,250,000 | $ 5,950,000 |
Unvested Stock Awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive options outstanding | 33,334 | 66,666 |
Cash and Money Market Funds [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Cash insured amount | $ 250,000 | |
US Treasury Bills [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Cash insured amount | $ 500,000 |
Summary of significant accoun_5
Summary of significant accounting policies (Schedule of Financial Instruments at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills included in cash and cash equivalents | $ 5,250 | $ 5,950 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills included in cash and cash equivalents | ||
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills included in cash and cash equivalents | 5,250 | 5,950 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Treasury bills included in cash and cash equivalents |
Accounts payable and accrued _3
Accounts payable and accrued expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued professional fees | $ 40 | $ 42 |
Other | 53 | 41 |
Accounts payable and accrued expenses | $ 93 | $ 83 |
Income taxes (Narrative) (Detai
Income taxes (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Examination [Line Items] | ||
Capital loss carryforward | $ 703,000 | $ 703,000 |
Increased / (decreased) of valuation allowance | $ 294,000 | (391,000) |
Minimum [Member] | ||
Income Tax Examination [Line Items] | ||
Capital loss carryforwards, expiration date | Dec. 31, 2022 | |
Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Capital loss carryforwards, expiration date | Dec. 31, 2024 | |
Federal [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforward | $ 21,339,000 | |
Operating loss carryforwards that does not expire | 6,162,000 | |
Federal [Member] | Minimum [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforward | $ 15,177,000 | |
Operating loss carryforwards, expiration date | Jan. 1, 2031 | |
Federal [Member] | Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards, expiration date | Dec. 31, 2037 | |
State and Local [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforward | $ 5,182,000 | |
Capital loss carryforward | $ 2,690,000 | |
State and Local [Member] | Due to State tax filings [Member] | ||
Income Tax Examination [Line Items] | ||
Decrease in net operating loss carryforwards | $ 16,244,000 | |
State and Local [Member] | Minimum [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards, expiration date | Jan. 1, 2022 | |
State and Local [Member] | Maximum [Member] | ||
Income Tax Examination [Line Items] | ||
Operating loss carryforwards, expiration date | Dec. 31, 2042 |
Income taxes (Components of Inc
Income taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||
Federal | $ (37) | |
State and local | 2 | (21) |
Total current | 2 | (58) |
Deferred | ||
Federal | 37 | |
State and local | ||
Total deferred | 37 | |
Total income tax (benefit) expense | $ 2 | $ (21) |
Income taxes (Differences Betwe
Income taxes (Differences Between Statutory and Reported Amount Tax Rates) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax rate | (21.00%) | (21.00%) |
State income tax (net of federal effect) | (5.00%) | 55.50% |
Change in valuation allowance | 26.40% | (38.50%) |
Deferred tax asset write-down | (1.20%) | |
Non-deductible expenses | 1.00% | 1.90% |
Effective tax rate | 0.20% | (2.10%) |
Income taxes (Deferred Tax Asse
Income taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 4,770 | $ 4,501 |
Capital loss carryforwards | 703 | 703 |
Equity-based compensation | 157 | 132 |
Unrealized loss on investments | 98 | 98 |
Gross deferred tax assets | 5,728 | 5,434 |
Less: valuation allowance | (5,728) | (5,434) |
Deferred tax assets after valuation allowance | ||
Net Deferred tax assets |
Loan Payable (Details)
Loan Payable (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | May 01, 2020 | |
Gain on extinguishment of debt | $ 53,000 | ||
PPP Loans Member] | |||
Loan received | $ 53,000 | ||
Gain on extinguishment of debt | $ 53,000 | ||
Loan forgiveness date | Jan. 7, 2021 |
Capital Stock (Details)
Capital Stock (Details) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Authorized number of shares to be repurchased | 5,000,000 | |
Number of shares repurchased | 2,041,971 | 2,041,971 |
Remaining number of shares available for repurchase | 2,958,029 | |
Common Stock, shares issuable | 215,632 | 227,160 |
Stock Awards [Member] | ||
Common Stock, shares issuable | 66,666 | |
Director [Member] | ||
Common Stock, shares issued | 370,752 |
Incentive stock plans and sto_2
Incentive stock plans and stock-based compensation (Stock Awards) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Feb. 13, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, shares issuable | 215,632 | 227,160 | |
Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common Stock, shares issuable | 66,666 | ||
Stock Awards [Member] | Newly appointed director [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock awards, Granted | 100,000 | ||
Vesting period for plan | 3 years | ||
Share price of stock awards granted | $ 0.42 | ||
Compensation expense | $ 13,800 | $ 12,500 | |
Unrecognized compensation expense (unvested) | $ 1,750 | ||
Unrecognized compensation recognition period | 1 month 6 days | ||
Stock awards unvested | 33,334 |
Incentive stock plans and sto_3
Incentive stock plans and stock-based compensation (Common Stock Options) (Details) - 2007 NPDC Plan [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding | 100,000 | |
Options vested and exerisable | 100,000 | |
Outstanding options, weighted average exercise price | $ 1.29 | |
Outstanding options, weighted average contractual term | 1 year | |
Outstanding options, aggregate intrinsic value | $ 0 | |
Options expired | 100,000 | 450,000 |
Options expired, weighted average exercise price | $ 1.29 | $ 1.36 |
Options expired, weighted average contractual term | 1 year | 2 years |
Options expired, aggregate intrinsic value | $ 0 | $ 0 |
Incentive stock plans and sto_4
Incentive stock plans and stock-based compensation (Capital Stock) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock not issued | 215,632 | 227,160 |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares subscribed | $ 325,889 | |
Common stock issuable | 66,666 | |
Common Stock shares issued | 370,752 | |
Director [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock issuable | 148,966 | |
Common Stock shares issued | 176,923 |