Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 02, 2021 | Jun. 30, 2020 | |
Document Information [Line Items] | |||
Entity Central Index Key | 0001593548 | ||
Entity Registrant Name | PLAYAGS, INC. | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-38357 | ||
Entity Incorporation, State or Country Code | NV | ||
Entity Tax Identification Number | 46-3698600 | ||
Entity Address, Address Line One | 5475 S. Decatur Blvd., Ste #100 | ||
Entity Address, City or Town | Las Vegas | ||
Entity Address, State or Province | NV | ||
Entity Address, Postal Zip Code | 89118 | ||
City Area Code | 702 | ||
Local Phone Number | 722-6700 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | AGS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 91,664,211 | ||
Entity Common Stock, Shares Outstanding | 36,437,326 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and cash equivalents | $ 81,689 | $ 13,162 |
Restricted cash | 20 | 20 |
Accounts receivable, net of allowance of $2,077 and $723 respectively | 41,743 | 61,224 |
Inventories | 26,902 | 32,875 |
Prepaid expenses | 4,210 | 2,983 |
Deposits and other | 4,704 | 5,332 |
Total current assets | 159,268 | 115,596 |
Property and equipment, net | 81,040 | 103,598 |
Goodwill | 286,042 | 287,049 |
Intangible assets | 187,644 | 230,451 |
Deferred tax asset | 6,762 | 4,965 |
Operating lease assets | 9,763 | 11,543 |
Other assets | 10,259 | 9,176 |
Total assets | 740,778 | 762,378 |
Current liabilities | ||
Accounts payable | 9,547 | 15,598 |
Accrued liabilities | 26,325 | 34,840 |
Current maturities of long-term debt | 7,031 | 6,038 |
Total current liabilities | 42,903 | 56,476 |
Long-term debt | 601,560 | 518,689 |
Deferred tax liability - non-current | 2,254 | 1,836 |
Operating lease liabilities, long-term | 9,497 | 11,284 |
Other long-term liabilities | 30,781 | 40,309 |
Total liabilities | 686,995 | 628,594 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock at $0.01 par value; 50,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock at $0.01 par value; 450,000,000 shares authorized at December 31, 2020 and December 31, 2019; 36,494,002 and 35,534,558 shares issued and outstanding at December 31, 2020 and 2019, respectively. | 364 | 355 |
Additional paid-in capital | 379,917 | 371,311 |
Accumulated deficit | (321,412) | (235,474) |
Accumulated other comprehensive loss | (5,086) | (2,408) |
Total stockholders’ equity | 53,783 | 133,784 |
Total liabilities and stockholders’ equity | $ 740,778 | $ 762,378 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance | $ 2,077 | $ 723 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 36,494,002 | 35,534,558 |
Common stock, shares outstanding (in shares) | 36,494,002 | 35,534,558 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Revenues | ||||
Total revenues | $ 167,007 | $ 304,714 | $ 285,299 | |
Operating expenses | ||||
Selling, general and administrative | 46,463 | 61,785 | 63,038 | |
Research and development | 26,786 | 34,338 | 31,745 | |
Write-downs and other charges | 3,329 | 6,912 | 8,753 | |
Depreciation and amortization | 85,722 | 91,474 | 77,535 | |
Total operating expenses | 211,176 | 280,977 | 260,009 | |
(Loss) Income from operations | (44,169) | 23,737 | 25,290 | |
Other expense (income) | ||||
Interest expense | 41,935 | 36,248 | 37,607 | |
Interest income | (1,179) | (163) | (207) | |
Loss on extinguishment and modification of debt | 3,102 | 0 | 6,625 | |
Other expense (income) | 3,226 | 4,622 | 10,488 | |
Loss before income taxes | (91,253) | (16,970) | (29,223) | |
Income tax benefit | 5,875 | 5,449 | 8,377 | |
Net loss | (85,378) | (11,521) | (20,846) | |
Less: Net income attributable to non-controlling interests | 0 | (231) | 0 | |
Net loss attributable to PlayAGS, Inc. | (85,378) | (11,752) | (20,846) | |
Foreign currency translation adjustment | (2,678) | 1,366 | 29 | |
Total comprehensive loss | $ (88,056) | $ (10,386) | $ (20,817) | |
Basic and diluted loss per common share: | ||||
Basic (in dollars per share) | $ (2.40) | $ (0.33) | $ (0.61) | |
Diluted (in dollars per share) | $ (2.40) | $ (0.33) | $ (0.61) | |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 35,639 | 35,424 | 34,404 | |
Diluted (in shares) | 35,639 | 35,424 | 34,404 | |
Gaming Operations [Member] | ||||
Revenues | ||||
Total revenues | $ 129,150 | $ 210,534 | $ 201,809 | |
Operating expenses | ||||
Cost of goods and services sold | [1] | 32,087 | 40,955 | 39,268 |
Equipment Sales [Member] | ||||
Revenues | ||||
Total revenues | 37,857 | 94,180 | 83,490 | |
Operating expenses | ||||
Cost of goods and services sold | [1] | $ 16,789 | $ 45,513 | $ 39,670 |
[1] | exclusive of depreciation and amortization |
Consolidated Statements of Chan
Consolidated Statements of Changes In Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Noncontrolling Interest [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 14,931,529 | |||||
Balance at Dec. 31, 2017 | $ 149 | $ 177,276 | $ (201,557) | $ (3,803) | $ 0 | $ (27,935) |
Net loss | 0 | 0 | (20,846) | 0 | 0 | (20,846) |
Foreign currency translation adjustment | 0 | 0 | 0 | 29 | 0 | 29 |
Stock-based compensation expense | $ 0 | 10,933 | 0 | 0 | 0 | 10,933 |
Stock split (1.5543-for-one) (in shares) | 8,276,547 | |||||
Stock split (1.5543-for-one) | $ 83 | (83) | 0 | 0 | 0 | 0 |
Reclassification of management shares (in shares) | 170,712 | |||||
Reclassification of management shares | $ 2 | 1,319 | 0 | 0 | 0 | 1,321 |
Vesting of restricted stock (in shares) | 112,286 | |||||
Vesting of restricted stock | $ 0 | 0 | 0 | 0 | 0 | 0 |
Stock option exercise (in shares) | 74,722 | |||||
Stock option exercise | $ 1 | 773 | 0 | 0 | 0 | 774 |
Issuance of common stock (in shares) | 11,787,500 | |||||
Issuance of common stock | $ 118 | 171,410 | 0 | 0 | 0 | 171,528 |
Balance (in shares) at Dec. 31, 2018 | 35,353,296 | |||||
Balance at Dec. 31, 2018 | $ 353 | 361,628 | (222,403) | (3,774) | 0 | 135,804 |
Net loss | 0 | 0 | (11,752) | 0 | 231 | (11,521) |
Foreign currency translation adjustment | 0 | 0 | 0 | 1,366 | 0 | 1,366 |
Stock-based compensation expense | $ 0 | 9,001 | 0 | 0 | 0 | 9,001 |
Vesting of restricted stock (in shares) | 231,543 | |||||
Vesting of restricted stock | $ 2 | (2) | 0 | 0 | 0 | 0 |
Stock option exercise (in shares) | 70,288 | |||||
Issuance of common stock | $ 0 | 0 | 0 | 0 | 0 | 0 |
Business acquisitions | 0 | 0 | 0 | 0 | 71 | 71 |
Cash distributions to noncontrolling interest owners | 0 | 0 | 0 | 0 | (302) | (302) |
Stock option exercises | $ 1 | 684 | 0 | 0 | 0 | 685 |
Repurchase of common stock (in shares) | (120,569) | |||||
Repurchase of common stock | $ (1) | 0 | (1,319) | 0 | 0 | $ (1,320) |
Balance (in shares) at Dec. 31, 2019 | 35,534,558 | 35,534,558 | ||||
Balance at Dec. 31, 2019 | $ 355 | 371,311 | (235,474) | (2,408) | 0 | $ 133,784 |
Net loss | 0 | 0 | (85,378) | 0 | 0 | (85,378) |
Foreign currency translation adjustment | 0 | 0 | 0 | (2,678) | 0 | (2,678) |
Stock-based compensation expense | $ 0 | 8,457 | 0 | 0 | 0 | 8,457 |
Vesting of restricted stock (in shares) | 1,034,699 | |||||
Vesting of restricted stock | $ 9 | (9) | 0 | 0 | 0 | $ 0 |
Stock option exercise (in shares) | 15,544 | 15,544 | ||||
Issuance of common stock (in shares) | 0 | |||||
Issuance of common stock | $ 0 | 0 | 0 | 0 | 0 | $ 0 |
Stock option exercises | $ 0 | 158 | 0 | 0 | 0 | 158 |
Repurchase of common stock (in shares) | (90,799) | |||||
Repurchase of common stock | $ 0 | 0 | (560) | 0 | 0 | $ (560) |
Balance (in shares) at Dec. 31, 2020 | 36,494,002 | 36,494,002 | ||||
Balance at Dec. 31, 2020 | $ 364 | $ 379,917 | $ (321,412) | $ (5,086) | $ 0 | $ 53,783 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Stockholders' Equity (Parentheticals) | Jan. 30, 2018 | Dec. 31, 2018 |
Stock split ratio | 1.5543 | 1.5543 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Cash flows from operating activities | ||||
Net loss | $ (85,378) | $ (11,521) | $ (20,846) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Depreciation and amortization | 85,722 | 91,474 | 77,535 | |
Accretion of contract rights under development agreements and placement fees | [1] | 7,421 | 6,378 | 4,552 |
Amortization of deferred loan costs and discount | 3,656 | 1,917 | 1,826 | |
Payment-in-kind interest payments | 0 | 0 | (37,624) | |
Write-off of deferred loan cost and discount | 0 | 0 | 3,876 | |
Stock-based compensation expense | 8,457 | 9,001 | 10,933 | |
Provision (benefit) for bad debts | 2,694 | 294 | (441) | |
Loss on disposition of long-lived assets | 2,399 | 1,068 | 1,963 | |
Impairment of assets | 134 | 5,343 | 6,089 | |
Fair value adjustment of contingent consideration | 796 | 501 | 701 | |
Benefit from deferred income tax | (1,671) | (1,927) | (970) | |
Changes in assets and liabilities related to operations: | ||||
Accounts receivable | 16,469 | (15,033) | (11,488) | |
Inventories | 10,099 | 490 | 4,907 | |
Prepaid expenses | (1,264) | 715 | (895) | |
Deposits and other | 517 | (449) | (748) | |
Other assets, non-current | 3,367 | 6,565 | 12,204 | |
Accounts payable and accrued liabilities | (17,248) | (6,827) | (6,063) | |
Net cash provided by operating activities | 36,170 | 87,989 | 45,511 | |
Cash flows from investing activities | ||||
Customer notes receivable | (4,690) | (2,382) | 0 | |
Proceeds from payments on customer notes receivable | 1,087 | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | (54,935) | (4,452) | |
Purchase of intangible assets | (1,756) | (6,295) | (1,119) | |
Software development and other expenditures | (11,017) | (14,350) | (10,460) | |
Proceeds from disposition of assets | 32 | 450 | 519 | |
Purchases of property and equipment | (22,939) | (50,420) | (54,602) | |
Net cash used in investing activities | (39,283) | (127,932) | (70,114) | |
Cash flows from financing activities | ||||
Borrowing on revolver | 30,000 | 0 | 0 | |
Repayment of revolver | (30,000) | 0 | 0 | |
Payments on finance leases and other obligations | (1,185) | (1,396) | (2,883) | |
Payment of deferred loan costs | (5,744) | 0 | (41) | |
Payment of financed placement fee obligations | (6,933) | (8,215) | (3,628) | |
Payment of previous acquisition obligation | (381) | (1,748) | 0 | |
Proceeds from stock option exercise | 158 | 685 | 774 | |
Proceeds from issuance of common stock | 0 | 0 | 176,341 | |
Initial public offering costs | 0 | 0 | (4,160) | |
Repurchase of stock | (560) | (1,320) | 0 | |
Distributions to non-controlling interest owners | 0 | (302) | 0 | |
Net cash provided by (used in) financing activities | 71,643 | (17,683) | 76,066 | |
Effect of exchange rates on cash, cash equivalents and restricted cash | (3) | 4 | (1) | |
Increase (decrease) in cash, cash equivalents and restricted cash | 68,527 | (57,622) | 51,462 | |
Cash, cash equivalents and restricted cash, beginning of period | 13,182 | 70,804 | 19,342 | |
Cash, cash equivalents and restricted cash, end of period | 81,709 | 13,182 | 70,804 | |
Supplemental cash flow information: | ||||
Cash paid during the period for interest | 37,749 | 33,567 | 35,392 | |
Cash paid during the period for taxes | 423 | 1,548 | 1,742 | |
Non-cash investing and financing activities: | ||||
Non-cash consideration given in business acquisition | 0 | 0 | 500 | |
Intangible assets obtained under placement fee arrangements | 0 | 40,338 | 2,000 | |
Leased assets obtained in exchange for new finance lease liabilities | 425 | 1,326 | 1,454 | |
Leased assets obtained in exchange for new operating lease liabilities | 84 | 13,048 | 0 | |
Incremental Term Loans [Member] | ||||
Cash flows from financing activities | ||||
Proceeds from incremental term loans | 92,150 | 0 | 29,874 | |
Repayment of long-term debt | (475) | 0 | (115,000) | |
First Lien Credit Facilities [Member] | ||||
Cash flows from financing activities | ||||
Repayment of long-term debt | $ (5,387) | $ (5,387) | $ (5,211) | |
[1] | Non-cash expense related to the accretion of contract rights under development agreements and placement fees. |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE 1. PlayAGS, Inc. (the "Company," "PlayAGS," "we," "us," or "our") is a leading designer and supplier of gaming products and services for the gaming industry. We operate in legalized gaming markets across the globe and provide state-of-the-art, value-add products in three Dex S The Company filed a Registration Statement on Form 10 December 19, 2013, 1934, December 19, 2013. January 30, 2018, On February 27, 2018, Electronic Gaming Machines Our EGM segment offers a selection of video slot titles developed for the global marketplace, and EGM cabinets which include the Alora Orion Portrait, Orion Curve, Orion Rise, Orion Upright, ICON, Big Red (“Colossal Diamonds”) Orion Slant Table Products Our Table Products include both internally developed and acquired proprietary table products, side-bets, progressives, and table technology related to blackjack, poker, baccarat, craps and roulette. We have acquired a number of popular proprietary brands, including In Bet Gaming (“In Bet”), Buster Blackjack, Double Draw Poker Criss Cross Poker Dex S second Pax S 2021. Interactive We operate a Business-to-Business ( "B2B" “B2C” B2C Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, Leases 842 606 Revenue from contracts with customers 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Year ended December 31, 2020 2019 2018 EGM Gaming operations $ 114,548 $ 196,101 $ 187,809 Equipment sales 37,241 93,541 83,216 Total $ 151,789 $ 289,642 $ 271,025 Table Products Gaming operations $ 7,353 $ 9,555 $ 7,377 Equipment sales 616 639 274 Total $ 7,969 $ 10,194 $ 7,651 Interactive (gaming operations) Social gaming revenue $ 3,513 $ 3,319 $ 6,147 Real-money gaming revenue $ 3,736 1,559 476 Total $ 7,249 $ 4,878 $ 6,623 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to undelivered performance obligations is recorded as a contract liability and the balance of our contract liability was not December 31, 2020 2019 Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. Receivables, Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. During the year ended December 31, 2020, 19 December 31, 2020. The following provides financial information concerning the change in our allowance for doubtful accounts (in thousands): Allowance for Accounts Receivable, Year ended December 31, 2020 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 723 $ (1,340 ) $ 2,694 $ 2,077 Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 Allowance for Expected Credit Losses Management estimates the allowance for expected credit losses balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in the current environmental economic conditions and reasonable and supportable forecast. The allowance for expected credit losses on financial instruments is measured on a collective (pool) basis when similar risk characteristics exist. The financial instruments that do not not The following table excludes receivables related to operating leases and presents all other receivables' gross amortized cost, allowance for credit losses and amortized cost, net of allowance for credit losses by portfolio segment as of December 31, 2020 2019 December 31, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 10,409 $ - $ 10,409 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,559 - $ 7,559 N/A N/A N/A Originated in 2019 Accounts Receivable 1,319 - 1,319 5,461 - 5,461 Total receivables with extended payment term $ 8,878 $ - $ 8,878 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 472 (24 ) $ 448 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 16 (1 ) 15 52 (3 ) 49 Total Sales-type leases receivables $ 488 $ (25 ) $ 463 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 4,199 - $ 4,199 N/A N/A N/A Originated in 2019 Deposits and other 2,136 - 2,136 2,359 - 2,359 Total Development Agreements $ 6,335 $ - $ 6,335 $ 2,359 $ - $ 2,359 Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 no December 31, 2020 December 31, 2019 Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The gaming software we develop reaches technological feasibility when a working model of the gaming software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed gaming software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar instruments (Level 2 December 31, 2020 2019 December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 622,509 $ 602,485 $ 533,727 $ 534,578 Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years 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 the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from Management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and accounts receivable, net. Cash equivalents are investment-grade, short-term debt instruments consisting of treasury bills which are maintained with high credit quality financial institutions under repurchase agreements. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2020 2019 not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma and Washington. For the years ended December 31, 2020 2019 2018, one December 31, 2020 2019 2018 As of December 31, 2020 one December 31, 2019 one December 31, 2020, 19 December 31, 2020. Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of accumulated other comprehensive (loss) income in stockholders’ equity. Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2020 2019 2018 Research and Development Research and development costs related primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in research and development. Liquidity and Financing and COVID- 19 Due to the business disruption caused by the rapid nationwide spread of the coronavirus and the actions by state and tribal governments and businesses to contain the virus, almost all of the Company’s customers closed their operations during the months of March April 2020 May 2020 December, December 31, 2020 December 30, 2020, 19 10%. 50%. As of December 31, 2020, 6 first 1.0. May 1, 2020, No. 4 No. 4" June 30, 2020, September 30, 2020 December 31, 2020 May 1, 2020, December 31, 2021 ( first three 2021 No. 4, twelve twelve No. 4, 6 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 December 31, 2020, twelve Recently Issued Accounting Pronouncements Adopted in the Current Year In June 2016, No. 2016 13, 326 November 2018 No. 2018 19, not 326 20, 842. May 2019, No. 2019 05 326. December 15, 2019, first 326 not January 1, 2020 326 not no In August 2018, No. 2018 15, 350 40 December 15, 2019, January 1, 2020. not no To be Adopted in Future Periods We do not |
Note 2 - Acquisitions
Note 2 - Acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 2. In Bet Gaming II During the quarter ended September 30, 2019, Integrity On February 8, 2019, The total purchase price consideration for Integrity was as follows: February 8, 2019 (in 000s) Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) $ 12,335 Payments to holders of Integrity stock options and restricted share units 441 Repayments of Integrity debt and other obligations 39,806 Total purchase price consideration $ 52,582 The acquisition was accounted for as an acquisition of a business and the assets acquired and liabilities assumed were measured based on our estimates of their fair values at the acquisition date. The acquisition of Integrity was accounted for using the acquisition method of accounting, which requires, among other things, the assets acquired and liabilities assumed be recognized at their respective fair values as of the acquisition date. The property, plant and equipment which fair value was determined based on the cost and market approach (level 2 3 The allocation of the purchase price to the fair values of the assets acquired and the liabilities assumed was as follows (in thousands): February 8, 2019 (in 000s) Assets Current assets Cash and cash equivalents $ 1,646 Accounts receivable 1,584 Inventories 159 Deposits and other 26 Prepaid expenses 141 Total Current Assets 3,556 Property and Equipment 12,708 Intangible Assets 30,600 Goodwill 11,380 Total Assets $ 58,244 Liabilities and Equity Current liabilities Accounts payable $ 1,366 Accrued liabilities 2,087 Current portion of long-term debt 151 Total current liabilities 3,604 Other long-term liabilities 1,787 Long-term debt 200 Total liabilities 1,987 Minority Interest 71 Net assets acquired $ 52,582 We recognized $0.6 million related to property tax liability and $1.4 million related to uncertain tax positions arising from contingencies which were valued at their fair value utilizing level 3 The following unaudited pro forma statements of operations give effect to the Integrity acquisition as if it had been completed on January 1, 2018. not January 1, 2018. not not not 1 2 Year Ended December 31, 2019 Year Ended December 31, 2018 Total revenues $ 306,452 $ 303,293 Net loss attributable to PlayAGS, Inc. $ (11,813 ) $ (20,381 ) AGS iGaming During the quarter ended June 30, 2018, We attributed the goodwill recognized to our ability to utilize AGS iGaming’s existing RMG platform to distribute our existing EGM game content into many markets, diversification of our Interactive segment’s product portfolio that now includes a real-money gaming solution and other strategic benefits. The total consideration for this acquisition was $5.0 million, which included cash paid of $4.5 million and $0.5 million of deferred consideration that was paid 18 months after the acquisition date. The consideration was allocated to goodwill that is not 4 The intangible assets consisted primarily of customer relationships and a technology platform. The customer relationships were valued using the cost approaches (level 3 3 It is not |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3. Property and equipment, net consist of the following (in thousands): December 31, 2020 December 31, 2019 Gaming equipment $ 181,305 $ 175,837 Other property and equipment 23,391 23,210 Less: Accumulated depreciation (123,656 ) (95,449 ) Total property and equipment, net $ 81,040 $ 103,598 Gaming equipment and other property and equipment are depreciated over the respective useful lives of the assets ranging from two six December 31, 2020 2019 2018, |
Note 4 - Goodwill and Intangibl
Note 4 - Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 4. Changes in the carrying amount of goodwill are as follows (in thousands): Gross Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2018 $ 267,079 $ 6,641 $ 3,543 $ 277,263 Foreign currency adjustments 769 — (10 ) 759 Acquisition 11,380 1,180 — 12,560 Impairment — — (3,533 ) (3,533 ) Balance at December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 Foreign currency adjustments (1,007 ) — — (1,007 ) Acquisition — — — 0 Impairment — — — 0 Balance at December 31, 2020 $ 278,221 $ 7,821 $ - $ 286,042 ( 1 December 31, 2020 The Company performed a quantitative assessment as of October 1, 2020 October 1, 2020, none During the first 2020, 1” March 31, 2020 two no Based on our quantitative analysis, the fair value was 34% greater than the carrying value for the EGM reporting unit and 21% greater for the Table Products reporting unit. As of October 1, 2019 ( 19 19 19 October 1, 2019, second third 2020, no not December 31, 2020 19 not may During the second 2019, 2018. In 2018, 1” 2018, 1 fourth December 31, 2018, B2C B2B Intangible assets consist of the following (in thousands): December 31, 2020 December 31, 2019 Useful Life (years) Gross Value Accumulated Amortization Net Carrying Value Gross Value Accumulated Amortization Net Carrying Value Indefinite-lived trade names Indefinite $ 12,126 $ — $ 12,126 $ 12,126 $ — $ 12,126 Trade and brand names 5 - 7 14,870 (14,269 ) 601 14,870 (13,209 ) 1,661 Customer relationships 5 - 12 218,848 (143,082 ) 75,766 219,788 (120,384 ) 99,404 Contract rights under development and placement fees 1 - 7 47,354 (15,588 ) 31,766 48,180 (8,888 ) 39,292 Gaming software and technology platforms 1 - 7 172,255 (114,774 ) 57,481 162,391 (96,193 ) 66,198 Intellectual property 10 - 12 19,345 (9,441 ) 9,904 19,345 (7,575 ) 11,770 $ 484,798 $ (297,154 ) 187,644 $ 476,700 $ (246,249 ) 230,451 Intangible assets are amortized over their respective estimated useful lives ranging from one twelve December 31, 2020 2019 2018, Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not no December 31, 2020 December 31, 2019 In 2019, may not 25% 3% 3 25%. The Company enters into development agreements and placement fee agreements with certain customers to secure floor space under lease agreements for its gaming machines. Amounts paid in connection with the development agreements are repaid to the Company in accordance with the terms of the agreement, whereas placements fees are not not December 31, 2020 2019 2018, In March 2019, The estimated amortization expense of definite-lived intangible assets as well as the accretion of contract rights under development and placement fees, for each of the next five For the year ended December 31, Amortization Expense Placement Fee Accretion 2021 $ 36,262 $ 6,619 2022 30,805 6,431 2023 23,739 6,172 2024 18,217 5,940 2025 14,452 5,652 Thereafter 20,277 952 Total $ 143,752 $ 31,766 |
Note 5 - Accrued Liabilities
Note 5 - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 5. Accrued liabilities consist of the following (in thousands): December 31, 2020 2019 Salary and payroll tax accrual $ 5,337 $ 8,691 Taxes payable 3,992 4,151 Current portion of operating lease liability 1,867 2,175 License fee obligation 1,000 1,000 Placement fees payable 6,314 8,346 Accrued other 7,815 10,477 Total accrued liabilities $ 26,325 $ 34,840 |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Long-term Debt [Text Block] | NOTE 6. Long-term debt consists of the following (in thousands): December 31, 2020 2019 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (4.5% at December 31, 2020), net of unamortized discount and deferred loan costs of $6.1 million and $9.0 million at December 31, 2020 and 2019, respectively. $ 520,499 $ 522,989 Incremental term loans, interest at LIBOR or base rate plus 13.0% (14.0% at December 31, 2020), net of unamortized discount and deferred loan costs of $7.8 million at December 31, 2020. $ 86,710 — Finance Leases 1,382 1,737 Total debt 608,591 524,727 Less: Current portion (7,031 ) (6,038 ) Long-term debt $ 601,560 $ 518,689 First Lien Credit Facilities On June 6, 2017 ( first March 19, 2020 19 October 2020 February 15, 2024, June 6, 2022. On December 6, 2017, “December December An additional $1.0 million in loan costs were incurred related to the issuance of the December third On February 8, 2018, On February 8, 2018, third On October 5, 2018, No. 2 No. 2” No. 2 June 6, 2017, December 6, 2017 February 8, 2018 ( B1 On October 5, 2018, third On August 30, 2019, No. 3 On May 1, 2020, No. 4 No. 4” 1 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 An additional $11.7 million in loan costs including original issue discount, lender fees, and third No. 4. third . As of December 31, 2020 Finance Leases The Company has entered into leases for vehicles and equipment that are accounted for as finance leases, as described in Item 15. 15. Scheduled Maturities of Long-Term Debt Aggregate contractual future principal payments (excluding the effects of repayments for excess cash flow) of long-term debt for the years following December 31, 2020 For the year ending December 31, 2021 $ 7,031 2022 6,838 2023 6,491 2024 602,150 2025 — Thereafter — Total scheduled maturities 622,510 Unamortized debt discount and debt issuance costs (13,919 ) Total debt $ 608,591 |
Note 7 - Stockholders' Equity
Note 7 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7. Common Stock Prior to the completion of the IPO, the Company’s common stock consisted of two 1 1.5543 On January 30, 2018, February 27, 2018, Prior to the consummation of the IPO, 170,712 shares of common stock were held by Management. Pursuant to the Securityholders Agreement dated April 28, 2014 ( not As further clarification of the foregoing, prior to the IPO, shares were held by Management that were subject to repurchase rights as outlined in Section 6 Our amended and restated articles of incorporation provide that our authorized capital stock will consist of 450,000,000 shares of common stock, par value $0.01 per share, and 50,000,000 shares of preferred stock, par value $0.01 per share. As of December 31, 2020 zero Voting Rights. one not Dividend and Distribution Rights. may Share Repurchase Program. 2019, August 11, 2021. |
Note 8 - Write-downs and Other
Note 8 - Write-downs and Other Charges | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 8. The Consolidated Statements of Operations and Comprehensive Loss include various transactions, such as loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration that have been classified as write-downs and other charges. During the year ended December 31, 2020 3 During the year ended December 31, 2019, 4. 3 3 During the year ended December 31, 2018, 3 3 3 Due to the changing nature of our write-downs and other charges, we describe the composition of the balances as opposed to providing a year over year comparison. |
Note 9 - Basic and Diluted Loss
Note 9 - Basic and Diluted Loss Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 9. The Company computes net (loss) income per share in accordance with accounting guidance that requires presentation of both basic and diluted earnings per share (“EPS”) on the face of the Consolidated Statement of Operations and Comprehensive (Loss) Income. Basic EPS is computed by dividing net (loss) income for the period by the weighted average number of shares outstanding during the period. Basic EPS includes common stock weighted for average number of shares issued during the period. Diluted EPS is computed by dividing net (loss) income for the period by the weighted average number of common shares outstanding during the period, increased by potentially dilutive common shares that were outstanding during the period. Diluted EPS excludes all potential dilutive shares if their effect is anti-dilutive. Potentially dilutive common shares include stock options and restricted stock (see Note 11 There were no potentially dilutive securities for the years ended December 31, 2020 2019 2018. Excluded from the calculation of diluted EPS for the years ended December 31, 2020 2019 2018, December 31, 2020 2019 2018 |
Note 10 - Benefit Plans
Note 10 - Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 10. The Company has established a 401 “401 401 may April 2020 , 401 401 December 31, 2020 2019 2018 On April 28, 2014, 2014 ten may 1 January 30, 2018 December 31, 2020 not On January 16, 2018, 2018 may July 1, 2020, December 31, 2020 |
Note 11 - Stock-based Compensat
Note 11 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 11. All share information is presented after giving effect to the 1.5543 - for - 1 January 30, 2018 The Company has granted equity or equity-based awards to eligible participants under its incentive plans. The awards include options to purchase the Company’s common stock, restricted stock or restricted stock units and phantom stock units. These awards include a combination of service and market conditions, as further described below. For the year ended December 31, 2020 We recognize stock-based compensation on a straight-line basis over the vesting period for time based awards and we recognize the expense immediately for awards with market conditions over the service period derived from the related valuation. As of December 31, 2020 1.2, 2.5 Stock Options The Company calculates the grant date fair value of stock options that vest over a service period using the Black Scholes model. For stock options and other stock awards that contain a market condition related to the return on investment that the Company’s stockholders achieve or obtaining a certain stock price, the awards are valued using a lattice-based valuation model. The assumptions used in these calculations are the expected dividend yield, expected volatility, risk-free interest rate and expected term (in years). Expected volatilities are based on implied volatilities from comparable companies. The expected time to liquidity is based on Management’s estimate. The risk-free rate is based on the U.S. Treasury yield curve for a term equivalent to the estimated time to liquidity. There were no options granted during the years ended December 31, 2020 2019 Year Ended December 31, 2020 2019 2018 Option valuation assumptions: Expected dividend yield N/A N/A —% Expected volatility N/A N/A 50% Risk-free interest rate N/A N/A 2.71% Expected term (in years) N/A N/A 6.3 Stock option awards represent options to purchase common stock and are granted pursuant to the Company’s incentive plans, and include options that the Company primarily classifies as Tranche A or time based, Tranche B and Tranche C. Tranche A or time-based options are eligible to vest in equal installments of 20% or 25% on each of the first five four not All other option awards are eligible to vest upon the satisfaction of certain performance conditions (collectively, “Performance Options”). These performance conditions included the achievement of investor returns or common stock trading prices. These performance conditions were achieved in October 2018 A summary of the changes in stock options outstanding during the year ended December 31, 2020 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Granted — $ — Exercised (15,544 ) $ 10.15 Canceled or forfeited (93,260 ) $ 7.89 Options outstanding as of December 31, 2020 1,274,182 $ 9.17 4.50 $ 412 Exercisable as of December 31, 2020 1,206,440 $ 8.82 4.37 $ 412 The following is provided for stock options granted: Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value N/A N/A $ 12.63 Restricted Stock and Restricted Stock Units Restricted stock awards and restricted stock units are typically eligible to vest in equal installments of 25% on each of the first four 12 Certain restricted stock units are eligible to vest upon the satisfaction of certain performance conditions. Vesting occurs on the first 60 A summary of the changes in restricted stock shares outstanding during the year ended December 31, 2020 Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2019 712,496 $ 23.66 Granted 1,470,636 $ 3.92 Vested (1,034,699 ) $ 9.90 Canceled or forfeited (38,915 ) $ 23.88 Outstanding as of December 31, 2020 1,109,518 $ 10.32 Phantom Stock Units Phantom stock units are typically eligible to vest in equal installments of 25% on each of the first four 12 first third fourth may A summary of the changes in phantom stock outstanding during the year ended December 31, 2020 Shares Outstanding Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2019 Granted 670,844 $ 3.87 Vested - $ - Canceled or forfeited (36,085 ) $ 3.94 Phantom stock outstanding as of December 31, 2020 634,759 $ 3.86 |
Note 12 - Income Taxes
Note 12 - Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 12. The components of loss before provision for income taxes are as follows (in thousands): Year ended December 31, 2020 2019 2018 Domestic $ (80,939 ) $ 1,129 $ (13,814 ) Foreign (10,314 ) (18,099 ) (15,409 ) Loss before provision for income taxes $ (91,253 ) $ (16,970 ) $ (29,223 ) The income tax (benefit) expense is as follows (in thousands): Year ended December 31, 2020 2019 2018 Current: Federal $ (1,495 ) $ (2,726 ) $ (773 ) State 262 286 227 Foreign (3,012 ) (1,084 ) (6,830 ) Total current income tax (benefit) expense (4,245 ) (3,524 ) (7,376 ) Deferred: Federal 365 343 379 State 53 49 48 Foreign (2,048 ) (2,317 ) (1,428 ) Total deferred income (benefit) expense (1,630 ) (1,925 ) (1,001 ) Income tax (benefit) expense $ (5,875 ) $ (5,449 ) $ (8,377 ) The reconciliation of income tax at the federal statutory rate to the actual effective income tax rate (benefit) is as follows: Year ended December 31, 2020 2019 2018 Federal statutory rate (21.0 )% (21.0 )% (21.0 )% Foreign rate differential (0.9 )% (2.9 )% (3.0 )% Losses of foreign subsidiaries disregarded for US income tax — % — % (1.3 )% State income taxes, net of federal benefit (2.9 )% 2.9 % (0.8 )% Nondeductible loan costs — % — % 0.5 % Nondeductible transaction costs — % 0.7 % 1.1 % Impact of tax liquidation — % — % 10.4 % Tax indemnification charges 1.0 % 7.9 % 9.5 % Stock Compensation 1.0 % 1.0 % (1.4 )% Other differences 0.6 % 4.1 % 2.7 % Withholding tax 0.2 % 3.3 % 1.7 % Tax credits 3.1 % (2.4 )% (12.0 )% Uncertain tax positions (2.8 )% (26.0 )% (38.0 )% Valuation allowance 15.3 % 0.3 % 22.9 % Rate change - impact of the Tax Act — % — % — % Repatriation tax - impact of the Tax Act — % — % (1.0 )% Tax credits - impact of the Tax Act — % — % 0.6 % Valuation allowance - impact of the Tax Act — % — % 0.4 % Effective tax rate (6.4 )% (32.1 )% (28.7 )% The components of the net deferred tax assets (liability) consist of the following (in thousands): December 31, 2020 2019 Deferred tax assets: Accrued expenses $ 1,214 $ 2,411 Stock Compensation 2,610 3,129 Foreign tax credits 9,587 12,189 Net operating loss carryforwards 45,268 46,872 Research and development credits 5,625 6,313 Debt 17,555 Other 3,535 6,391 Total deferred tax assets 85,394 77,305 Valuation allowance (55,006 ) (41,004 ) Deferred tax assets, net of valuation allowance $ 30,388 $ 36,301 Deferred tax liabilities: Prepaid expenses and other $ (635 ) $ (582 ) Intangible assets (15,434 ) (19,719 ) Property and equipment, net (9,811 ) (12,871 ) Deferred tax liabilities (25,880 ) (33,172 ) Net deferred tax assets (liabilities) $ 4,508 $ 3,129 Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three December 31, 2020 December 31, 2020 not no As of December 31, 2020 2021 2030. 2028. not The Company has net operating loss (“NOL”) carryforwards for U.S. federal purposes of $183.3 million, in foreign jurisdictions of $13.2 million and various U.S. states of $122.9 million. The U.S. federal NOL carryforwards begin to expire in 2034, 2021, not not Utilization of the net operating loss carryforwards and credits may 1986, may On May 1, 2020 No. 4 6, not The Company has uncertain tax positions with respect to prior tax filings. The uncertain tax positions, if asserted by taxing authorities, would result in utilization of the Company’s tax credit and operating loss carryovers. The credit and operating loss carryovers presented as deferred tax assets are reflected net of these unrecognized tax benefits. The Company had the following activity for unrecognized tax benefits in 2020 2019 December 31, 2020 December 31, 2019 Balance-beginning of year $ 10,954 $ 12,580 Acquisitions — 1,244 Increases based on tax positions of the current year 410 453 Decrease due to tax authority settlements — — Decreases due to lapse of statute (3,213 ) (3,225 ) Increases based on tax positions of the prior years — 95 Decreases based on tax positions of the prior years (665 ) (670 ) Currency translation adjustments (81 ) 477 Balance-end of year $ 7,405 $ 10,954 The Company applies a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The Company recognizes the impact of a tax position in the financial statements when the position is more likely than not The total amount of unrecognized tax benefits as of December 31, 2020 December 31, 2021, The Company accrues interest and penalties for unrecognized tax benefits in income tax expense. Related to the unrecognized tax benefits noted above, the Company reduced penalties and interest by $1.8 million during 2020. December 31, 2020 The Company is subject to taxation and potential examination in the United States and various state and foreign jurisdictions. We are subject to examinations in the United States for the 2017 2020 2015 2020 not The Company entered into an indemnification agreement with the prior owners of Cadillac Jack whereby the prior owners have agreed to indemnify the Company for changes in tax positions by taxing authorities for periods prior to the acquisition. An indemnification receivable of $0.8 million and $4.2 million was recorded as another asset in the financial statements for the years ended December 31, 2020 2019 In March 2020, 19 748, not |
Note 13 - Commitments and Conti
Note 13 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13. The Company is subject to federal, state and Native American laws and regulations that affect both its general commercial relationships with its customers, as well as the products and services provided to them. Periodically, the Company reviews the status of each significant matter and assesses the potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be estimated, the Company accrues a liability for the estimated loss. If a potential loss from any claim or legal proceeding is considered reasonably possible, the Company discloses an estimate of the possible loss or range of possible loss, or a statement that such an estimate cannot be made. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, accruals are based only on the best information available at the time. As additional information becomes available, the Company reassesses the potential liability related to their pending claims and litigation and may During the three September 30, 2019, On June 25, July 31, 2020 two August 2, 2018 August 7, 2019. 2019 August 7, 2019. 10 20 1934. On August 4, 2020, third first two 50% 10 20 1934 2019 August 7, 2019. May 3, 2018 August 7, 2019. 11, 12 2 15 1933, August 2018 March 2019 On October 28, 2020 three January 11, 2021, 10 20 March 4, 2020), 11, 12 2 15 August 7, 2019, November 7, 2019, March 4, 2020. not no In January 2021, May 2016 August 2019. not December 31, 2020, not not |
Note 14 - Operating Segments
Note 14 - Operating Segments | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 14. We report our business segment results by segment in accordance with the “management approach.” The management approach designates the internal reporting used by our chief operating decision maker (“CODM”), who is our Chief Executive Officer (the “CEO”), for making decisions and assessing performance of our reportable segments. See Note 1 three Segment revenues include leasing, licensing, or selling of products within each reportable segment. Segment adjusted EBITDA includes the revenues and operating expenses from each segment adjusted for depreciation, amortization, write-downs and other charges, accretion of placement fees, non-cash stock based compensation expense, as well as other costs such as certain acquisitions and integration related costs including restructuring and severance charges; initial public offering and secondary offerings costs, legal and litigation expenses including settlement payments; new jurisdictions and regulatory licensing costs; non-cash charges on capitalized installation and delivery; contract cancellation fees; and other adjustments primarily composed of costs and inventory and receivable valuation charges associated with the COVID- 19 third Segment adjusted EBITDA excludes other income and expense, income taxes and certain expenses that are managed outside of the operating segments. The following provides financial information concerning our reportable segments for the years ended December 31, 2020, 2019 2018 2020 2019 2018 Revenues by segment EGM $ 151,789 $ 289,642 $ 271,025 Table Products 7,969 10,194 7,651 Interactive 7,249 4,878 6,623 Total Revenues 167,007 304,714 285,299 Adjusted EBITDA by segment EGM 65,877 144,718 137,371 Table Products 3,360 3,699 942 Interactive 2,432 (2,355 ) (2,107 ) Subtotal 71,669 146,062 136,206 Write-downs and other: Loss on disposal of long lived assets 2,399 1,068 1,963 Impairment of long lived assets 134 5,343 6,089 Fair value adjustments to contingent consideration and other items 796 501 701 Depreciation and amortization 85,722 91,474 77,535 Accretion of placement fees (1) 7,421 6,378 4,552 Non-cash stock compensation 8,457 9,001 10,933 Acquisitions and integration related costs including restructuring and severance 311 3,338 3,644 Initial public offering and secondary costs — 530 2,428 Legal and litigation expenses including settlement payments 1,830 1,844 992 Non-cash charge on capitalized installation and delivery 2,291 2,700 2,081 Other adjustments 6,477 148 (2 ) Interest expense 41,935 36,248 37,607 Interest income (1,179 ) (163 ) (207 ) Loss on extinguishment and modification of debt 3,102 — 6,625 Other expense (income) 3,226 4,622 10,488 Loss before income taxes $ (91,253 ) $ (16,970 ) $ (29,223 ) ( 1 The Company’s Chief Operating Decision Maker (the “CODM”) does not not not two not not The following provides financial information concerning our operations by geographic area for the years ended December 31, 2020, 2019, 2018 Year ended December 31, Revenue: 2020 2019 2018 United States $ 151,187 $ 258,691 $ 255,256 Other 15,820 46,023 30,043 Total Revenue $ 167,007 $ 304,714 $ 285,299 Year ended December 31, Long-lived assets: 2020 2019 2018 United States $ 76,879 $ 89,597 $ 80,617 Other 13,623 19,132 14,022 Total long-lived assets $ 90,502 $ 108,729 $ 94,639 |
Note 15 - Leases
Note 15 - Leases | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 15. Operating Leases We lease office space, warehouses and office equipment which we classify as operating leases. Operating leases with an initial term of 12 not not not not not In February 2016, 2016 02, Leases (Topic 842 January 1, 2019. 840 840 840. no January 1, 2019. not January 1, 2019. not no December 31, 2019 January 1, 2019 December 31, 2018. Finance Leases We lease vehicles which we account for as finance leases using the effective interest method. Our finance lease agreements do not For the years ended December 31, 2020 2019 not one The following table discloses the operating and finance assets and liability balances recorded under ASC 842 December 31, 2020 December 31, 2019 As of December 31, 2020 As of December 31, 2019 (ASC 842) (ASC 842) Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 9,763 $ 11,543 Finance leases Property and equipment, net(b) 1,300 1,815 Total leased assets, net $ 11,063 $ 13,358 Liabilities Current: Operating leases Accrued liabilities $ 1,867 $ 2,175 Finance leases Current maturities of long-term debt 694 651 Non-current: Operating leases Operating lease liabilities, long-term 9,497 11,284 Finance leases Long-term debt 688 1,086 Total lease liability $ 12,746 $ 15,196 (a) December 31, 2020 2019 (b) December 31, 2020 2019 The table below discloses the costs for operating and finance leases for the year ended December 31, 2020 2019 For the Year Ended December 31, 2020 2019 2018 (ASC 842) (ASC 842) (ASC 840) Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 1,519 $ 1,578 N/A Operating lease cost - R&D Research and development 377 312 N/A Operating lease cost - warehouses Cost of gaming operations (c) 553 500 N/A Total Operating Lease cost: $ 2,449 $ 2,390 N/A Finance lease cost Depreciation of leased assets Depreciation and amortization $ 784 $ 649 $ 479 Interest on lease liabilities Interest expense 41 42 23 Total Finance Lease cost: 825 691 502 Total Lease Cost $ 3,274 $ 3,081 $ 502 (c) Subject to capitalization. The table below sets forth the maturity of the operating and financing leases liabilities for five 842: Operating Leases Financing Leases Total Maturity of lease liabilities (in thousands) 2021 $ 2,502 $ 718 $ 3,220 2022 2,008 511 2,519 2023 1,845 156 2,001 2024 1,808 34 1,842 2025 1,791 - 1,791 Thereafter 3,819 - 3,819 Total lease payments $ 13,773 $ 1,419 $ 15,192 Less: interest 2,409 37 2,446 Present value of lease liabilities $ 11,364 $ 1,382 $ 12,746 Future minimum lease payments under ASC 842 December 31, 2019 The following table sets forth the weighted average of the lease terms and discount rates for operating and finance leases as of December 31, 2020 2019 As of As of December 31, December 31, 2020 2019 (ASC 842) (ASC 842) Lease term and discount rate Operating Weighted average remaining lease term (years) 6.5 7.0 Weighted average discount rate 5.9 % 5.9 % Finance Leases Weighted average remaining lease term (years) 1.7 2.3 Weighted average discount rate 2.5 % 2.6 % Other Information The table below discloses cash paid for the amounts included in the measurement of lease liabilities for the year ended December 31, 2020 2019 Year Ended December 31, 2020 2019 2018 (ASC 842) (ASC 842) (ASC 840) Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,918 $ 2,613 N/A Operating cash flows from finance leases $ 41 $ 42 $ 23 Financing cash flows from finance leases $ 691 $ 630 $ 436 |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | ITEM 15 2 SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS (in thousands, except share data) December 31, 2020 2019 Assets Current assets Cash and cash equivalents $ 474 $ 282 Intercompany Receivables 8 8 Prepaid expenses 27 26 Total current assets 509 316 Investment in subsidiaries 54,681 134,811 Other long-term assets 8 8 Total assets $ 55,198 $ 135,135 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 1,415 $ 1,351 Total current liabilities 1,415 1,351 Total liabilities 1,415 1,351 Stockholders’ equity: Common stock 364 355 Additional paid-in capital 379,917 371,311 Retained earnings (321,412 ) (235,474 ) Accumulated other comprehensive loss (5,086 ) (2,408 ) Total stockholders’ equity 53,783 133,784 Total liabilities and stockholders’ equity $ 55,198 $ 135,135 PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF OPERATIONS (in thousands) Year ended December 31, 2020 2019 2018 Revenue Intercompany revenue $ — $ 8 $ — Total Revenue — 8 — Operating expenses Selling, general and administrative 24 25 $ 30 Total operating expenses 24 25 30 Loss from operations (24 ) (17 ) (30 ) Other expense (income) Equity in net loss of subsidiaries (85,349 ) (11,807 ) 16,396 Interest expense — — 1,383 Loss on extinguishment and modification of debt — — 3,037 Other (Expense) Income (5 ) 72 — Loss before income taxes (85,378 ) (11,752 ) (20,846 ) Income tax (expense) benefit — — — Net loss attributable to PlayAGS, Inc. (85,378 ) (11,752 ) (20,846 ) Foreign currency translation adjustment (2,678 ) 1,366 29 Total comprehensive loss $ (88,056 ) $ (10,386 ) $ (20,817 ) PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (in thousands, except per share data) Year ended December 31, 2020 2019 2018 Cash flows from operating activities Net loss $ (85,378 ) $ (11,752 ) $ (20,846 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Amortization of deferred loan costs and discount — — — Payment-in-kind interest payments — — (37,624 ) Payment-in-kind interest capitalized — — — Write-off of deferred loan costs and discount — — 3,037 Equity income from subsidiaries 85,349 11,807 16,396 Changes in assets and liabilities that relate to operations: Prepaid expenses (1 ) 23 5 Intercompany payable/receivable 64 570 365 Net cash provided by (used in) operating activities 34 648 (38,667 ) Cash flows from investing activities Investment in subsidiaries — (13,280 ) (12,100 ) Distributions received from subsidiaries 560 — — Net cash (used in) provided by investing activities 560 (13,280 ) (12,100 ) Cash flows from financing activities Repayment of seller notes — — — Repayment of senior secured credit facilities — — (115,000 ) Proceeds from employees in advance of common stock issuance — — — Repurchase of shares (560 ) (1,320 ) — Proceeds from issuance of common stock — — 176,341 Proceeds from stock option exercise 158 685 774 Net cash (used in) provided by financing activities (402 ) (635 ) 62,115 (Decrease) increase in cash and cash equivalents 192 (13,267 ) 11,348 Cash and cash equivalents, beginning of period 282 13,549 2,201 Cash and cash equivalents, end of period $ 474 $ 282 $ 13,549 PLAYAGS, INC. (PARENT COMPANY ONLY) NOTES TO FINANCIAL STATEMENTS NOTE 1 The stand-alone parent company financial statements of PlayAGS, Inc., (the “ Parent Company”) should be read in conjunction with the Company’s consolidated financial statements and the accompanying notes thereto. For purposes of these condensed financial statements, the Parent Company’s wholly owned and majority owned subsidiaries are recorded based upon its proportionate share of the subsidiaries’ net assets (similar to presenting them on the equity method). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted since this information is included in the Company’s consolidated financial statements included elsewhere in this Form 10 NOTE 2 The Parent Company is a holding company and, as a result, its ability to pay dividends is dependent on its subsidiaries’ ability to obtain funds and its subsidiaries' ability to provide funds to it. Restrictions are imposed by its subsidiaries' debt instruments, which significantly restrict certain key subsidiaries holding a majority of its assets from making dividends or distributions to the Parent Company. These restrictions are subject to certain exceptions for affiliated overhead expenses as defined in the agreements governing the debt instruments, unless certain financial and non-financial criteria have been satisfied. Long-term debt of the Parent Company is described below. Senior Secured PIK Notes On January 30, 2018, 2024 Concurrently with the redemption of the PIK notes, the Company terminated its amended and restated note purchase agreement (the “A&R Note Purchase Agreement”), dated May 30, 2017, NOTE 3 The Parent Company charged $8.5 million and $9.0 million of stock-based compensation to additional paid-in capital during the year ended December 31, 2020 2019 2018, Prior to the consummation of the initial public offering, 170,712 shares of common stock were held by Management. Pursuant to the Securityholders Agreement dated April 28, 2014 ( not |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
Notes to Financial Statements | |
SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Tax-related valuation allowance Balance at the beginning of period Charged to tax expense/(benefit) Purchase accounting adjustments Impact of foreign currency exchange rate Balance at the end of period Year ended December 31, 2020 $ 41,004 $ 13,924 $ - $ 78 $ 55,006 Year ended December 31, 2019 $ 40,857 $ 50 $ 65 $ 32 $ 41,004 Year ended December 31, 2018 $ 33,774 $ 6,814 $ 269 $ — $ 40,857 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company to make decisions based upon estimates, assumptions, and factors considered relevant to the circumstances. Such decisions include the selection of applicable accounting principles and the use of judgment in their application, the results of which impact reported amounts and disclosures. Changes in future economic conditions or other business circumstances may |
Revenue [Policy Text Block] | Revenue Recognition Leasing of equipment in both our EGM and Table Products segments is accounted for under lease accounting guidance in ASC 842, Leases 842 606 Revenue from contracts with customers 606 The following table disaggregates our revenues by type within each of our segments (amounts in thousands): Year ended December 31, 2020 2019 2018 EGM Gaming operations $ 114,548 $ 196,101 $ 187,809 Equipment sales 37,241 93,541 83,216 Total $ 151,789 $ 289,642 $ 271,025 Table Products Gaming operations $ 7,353 $ 9,555 $ 7,377 Equipment sales 616 639 274 Total $ 7,969 $ 10,194 $ 7,651 Interactive (gaming operations) Social gaming revenue $ 3,513 $ 3,319 $ 6,147 Real-money gaming revenue $ 3,736 1,559 476 Total $ 7,249 $ 4,878 $ 6,623 Gaming Operations Gaming operations revenue is earned by providing customers with gaming machines, gaming machine content licenses, table products, back-office equipment and linked progressive systems, which are collectively referred to as gaming equipment, under participation arrangements. The participation arrangements convey the right to use the equipment (i.e., gaming machines and related integral software) for a stated period of time, which typically ranges from one three no Under participation arrangements, the Company retains ownership of the gaming equipment installed at the customer facilities and receives either revenue based on a percentage of the win per day generated by the gaming equipment or a fixed daily fee. Thus, in our consolidated financial statements the Company records revenue monthly related to these arrangements and the gaming equipment is recorded in property and equipment, net on our balance sheet and depreciated over the expected life of the gaming equipment. The majority of the Company’s leases require the Company to provide maintenance throughout the entire term of the lease. In some cases, a performance guarantee exists that, if not Gaming operations revenue is also earned from the licensing of table product content and is earned and recognized primarily on a fixed monthly rate. Our B2C B2C B2B Equipment Sales Revenues from contracts with customers are recognized and recorded when the following criteria are met: • We have a contract that has been approved by both the customer and the Company. Our contracts specify the products being sold and payment terms and are recognized when it is probable that we will collect substantially all of the contracted amount; and • Control has been transferred and services have been rendered in accordance with the contract terms. Equipment sales are generated from the sale of gaming machines, table products and licensing rights to the integral game content software that is installed in the related equipment, parts, and other ancillary equipment. Also included within the deliverables are delivery, installation and training, all of which occur within a few days of arriving at the customer location. Equipment sales do not 30 90 12 24 The Company enters into revenue arrangements that may may may Revenue is allocated to the separate performance obligations based on relative standalone selling prices determined at contract inception. Standalone selling prices are primarily determined by prices that we charge for the products when they are sold separately. When a product is not Revenue allocated to undelivered performance obligations is recorded as a contract liability and the balance of our contract liability was not December 31, 2020 2019 |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents consist primarily of deposits held at major banks and other marketable securities with original maturities of 90 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash amounts represent funds held in escrow as collateral for the Company’s surety bonds for various gaming authorities. |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Receivables, Allowance for Doubtful Accounts Accounts receivable are stated at face value less an allowance for doubtful accounts. The Company maintains an allowance for doubtful accounts related to accounts receivable and notes receivable, which are non-interest bearing, deemed to have a high risk of collectability. The Company reviews the accounts receivable and notes receivable on a monthly basis to determine if any receivables will potentially be uncollectible. The Company analyzes historical collection trends and changes in the customers’ payment patterns, customer concentration, and credit worthiness when evaluating the adequacy of the allowance for doubtful accounts. The Company includes any receivable balances that are determined to be uncollectible in the overall allowance for doubtful accounts. Changes in the assumptions or estimates reflecting the collectability of certain accounts could materially affect the allowance for both accounts and notes receivable. During the year ended December 31, 2020, 19 December 31, 2020. The following provides financial information concerning the change in our allowance for doubtful accounts (in thousands): Allowance for Accounts Receivable, Year ended December 31, 2020 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 723 $ (1,340 ) $ 2,694 $ 2,077 Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 Allowance for Expected Credit Losses Management estimates the allowance for expected credit losses balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for differences in the current environmental economic conditions and reasonable and supportable forecast. The allowance for expected credit losses on financial instruments is measured on a collective (pool) basis when similar risk characteristics exist. The financial instruments that do not not The following table excludes receivables related to operating leases and presents all other receivables' gross amortized cost, allowance for credit losses and amortized cost, net of allowance for credit losses by portfolio segment as of December 31, 2020 2019 December 31, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 10,409 $ - $ 10,409 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,559 - $ 7,559 N/A N/A N/A Originated in 2019 Accounts Receivable 1,319 - 1,319 5,461 - 5,461 Total receivables with extended payment term $ 8,878 $ - $ 8,878 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 472 (24 ) $ 448 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 16 (1 ) 15 52 (3 ) 49 Total Sales-type leases receivables $ 488 $ (25 ) $ 463 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 4,199 - $ 4,199 N/A N/A N/A Originated in 2019 Deposits and other 2,136 - 2,136 2,359 - 2,359 Total Development Agreements $ 6,335 $ - $ 6,335 $ 2,359 $ - $ 2,359 |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist primarily of parts and supplies that are used to repair and maintain machinery and equipment as well as EGMs in production and finished goods held for sale. Inventories are stated at net realizable value. Cost of inventories is determined using the first first December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 no December 31, 2020 December 31, 2019 |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment The cost of gaming equipment, consisting of fixed-base player terminals, file servers and other support equipment as well as other property and equipment, is depreciated over their estimated useful lives, using the straight-line method for financial reporting. The Company capitalizes costs incurred for the refurbishment of used gaming equipment that is typically incurred to refurbish a machine in order to return it to its customer location. The refurbishments extend the life of the gaming equipment beyond the original useful life. Repairs and maintenance costs are expensed as incurred. The Company routinely evaluates the estimated lives used to depreciate assets. The estimated useful lives are as follows: Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 Financed leased cars and leasehold improvements are amortized / depreciated over the life of the contract. The Company reviews its property and equipment for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not not When the estimated undiscounted cash flows are not The Company measures recoverability of assets to be held and used by comparing the carrying amount of an asset to future cash flows expected to be generated by the asset. The Company’s policy is to impair, when necessary, excess or obsolete gaming machines on hand that it does not |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets The Company reviews its identifiable intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not not When the estimated undiscounted cash flows are not Certain trade names have an indefinite useful life and the Company tests these trade names for possible impairment at least annually, on October 1, may not not |
Software to be Sold, Leased, or Otherwise Marketed, Policy [Policy Text Block] | Costs of Capitalized Computer Software Internally developed gaming software represents the Company’s internal costs to develop gaming titles to utilize on the Company’s gaming machines. Internally developed gaming software is stated at cost and amortized over the estimated useful lives of the software, using the straight-line method. Software development costs are capitalized once technological feasibility has been established and are amortized when the software is placed into service. The gaming software we develop reaches technological feasibility when a working model of the gaming software is available. Any subsequent software maintenance costs, such as bug fixes and subsequent testing, are expensed as incurred. Discontinued software development costs are expensed when the determination to discontinue is made. Software development costs are amortized over the expected life of the title or group of titles, if applicable, to amortization expense. On a quarterly basis, or more frequently if circumstances warrant, the Company compares the net book value of its internally developed gaming software to the net realizable value on a title or group of title basis. The net realizable value is determined based upon certain assumptions, including the expected future revenues and net cash flows of the gaming titles or group of gaming titles utilizing that software, if applicable. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill The excess of the purchase price of an acquired business over the estimated fair value of the assets acquired and the liabilities assumed is recorded as goodwill. The Company tests for possible impairment of goodwill at least annually, on October 1, not 0”, not may not not may |
Business Combinations Policy [Policy Text Block] | Acquisition Accounting The Company applies the provisions of ASC 805, Business Combinations” 805 may one may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurements 820 • Level 1 • Level 2 • Level 3 The carrying values of the Company’s cash and cash equivalents, restricted cash, receivables and accounts payable approximate fair value because of the short term maturities of these instruments. The fair value of our long-term debt is based on the quoted market prices for similar instruments (Level 2 December 31, 2020 2019 December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 622,509 $ 602,485 $ 533,727 $ 534,578 |
Income Tax, Policy [Policy Text Block] | Accounting for Income Taxes We conduct business globally and are subject to income taxes in U.S. federal, state, local, and foreign jurisdictions. Determination of the appropriate amount and classification of income taxes depends on several factors, including estimates of the timing and probability of realization of deferred income taxes, reserves for uncertain income tax positions and income tax payment timing. We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years 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 the period that includes the enactment date. Taxes on income of our foreign subsidiaries are provided at the tax rates applicable to the tax jurisdictions in which they are located. Future tax benefits are recognized to the extent that realization of those benefits is considered more likely than not not The recoverability of certain deferred tax assets is based in part on estimates of future income and the timing of temporary differences, and the failure to fully realize such deferred tax assets could result in a higher tax provision in future periods. We apply the accounting guidance to our uncertain tax positions and under the guidance, we may not 50% We are required to make significant judgments when evaluating our uncertain tax positions and the related tax benefits. We believe our assumptions are reasonable; however, there is no not may |
Commitments and Contingencies, Policy [Policy Text Block] | Contingencies The Company assesses its exposures to loss contingencies including claims and legal proceedings and accrues a liability if a potential loss is considered probable and the amount can be estimated. Significant judgment is required in both the determination of probability and the determination as to whether an exposure is reasonably estimable. Because of uncertainties related to these matters, if the actual loss from a contingency differs from Management’s estimate, there could be a material impact on the results of operations or financial position. Operating expenses, including legal fees, associated with contingencies are expensed when incurred. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and accounts receivable, net. Cash equivalents are investment-grade, short-term debt instruments consisting of treasury bills which are maintained with high credit quality financial institutions under repurchase agreements. Cash and cash equivalents are in excess of Federal Deposit Insurance Corporation (“FDIC”) insurance limits. As of December 31, 2020 2019 not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma and Washington. For the years ended December 31, 2020 2019 2018, one December 31, 2020 2019 2018 As of December 31, 2020 one December 31, 2019 one December 31, 2020, 19 December 31, 2020. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars at the period end rate of exchange for asset and liability accounts and the weighted average rate of exchange for income statement accounts. The effects of these translations are recorded as a component of accumulated other comprehensive (loss) income in stockholders’ equity. |
Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the year ended December 31, 2020 2019 2018 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Research and development costs related primarily to software product development costs and is expensed as incurred until technological feasibility has been established. Employee related costs associated with product development are included in research and development. |
Liquidity and Financing [Policy Text Block] | Liquidity and Financing and COVID- 19 Due to the business disruption caused by the rapid nationwide spread of the coronavirus and the actions by state and tribal governments and businesses to contain the virus, almost all of the Company’s customers closed their operations during the months of March April 2020 May 2020 December, December 31, 2020 December 30, 2020, 19 10%. 50%. As of December 31, 2020, 6 first 1.0. May 1, 2020, No. 4 No. 4" June 30, 2020, September 30, 2020 December 31, 2020 May 1, 2020, December 31, 2021 ( first three 2021 No. 4, twelve twelve No. 4, 6 No. 4 No. 4 first two May 1, 2020 May 1, 2022 November 1, 2022, No. 4 December 31, 2020, twelve |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements Adopted in the Current Year In June 2016, No. 2016 13, 326 November 2018 No. 2018 19, not 326 20, 842. May 2019, No. 2019 05 326. December 15, 2019, first 326 not January 1, 2020 326 not no In August 2018, No. 2018 15, 350 40 December 15, 2019, January 1, 2020. not no To be Adopted in Future Periods We do not |
Note 1 - Description of the B_2
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year ended December 31, 2020 2019 2018 EGM Gaming operations $ 114,548 $ 196,101 $ 187,809 Equipment sales 37,241 93,541 83,216 Total $ 151,789 $ 289,642 $ 271,025 Table Products Gaming operations $ 7,353 $ 9,555 $ 7,377 Equipment sales 616 639 274 Total $ 7,969 $ 10,194 $ 7,651 Interactive (gaming operations) Social gaming revenue $ 3,513 $ 3,319 $ 6,147 Real-money gaming revenue $ 3,736 1,559 476 Total $ 7,249 $ 4,878 $ 6,623 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Allowance for Accounts Receivable, Year ended December 31, 2020 Beginning Balance Charge-offs Provision (Benefit) Ending Balance Allowance for doubtful accounts $ 723 $ (1,340 ) $ 2,694 $ 2,077 Allowance for Accounts Receivable, Year ended December 31, 2019 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 885 $ (456 ) $ 294 $ 723 Allowance for Accounts Receivable, Year ended December 31, 2018 Beginning Balance Charge-offs Provision Ending Balance Allowance for doubtful accounts $ 1,462 $ (136 ) $ (441 ) $ 885 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2020 December 31, 2019 Classification Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Gross amortized cost Allowance for credit losses Amortized cost, net of allowance for credit losses Trade receivables: Accounts Receivable $ 10,409 $ - $ 10,409 $ 22,741 $ - $ 22,741 Receivables with extended payment terms: Originated in 2020 Accounts Receivable 7,559 - $ 7,559 N/A N/A N/A Originated in 2019 Accounts Receivable 1,319 - 1,319 5,461 - 5,461 Total receivables with extended payment term $ 8,878 $ - $ 8,878 $ 5,461 $ - $ 5,461 Sales-type leases receivables: Originated in 2019 Accounts Receivable 472 (24 ) $ 448 $ 2,206 $ (111 ) $ 2,095 Originated in 2017 Accounts Receivable 16 (1 ) 15 52 (3 ) 49 Total Sales-type leases receivables $ 488 $ (25 ) $ 463 $ 2,258 $ (114 ) $ 2,144 Development Agreements: Originated in 2020 Deposits and other 4,199 - $ 4,199 N/A N/A N/A Originated in 2019 Deposits and other 2,136 - 2,136 2,359 - 2,359 Total Development Agreements $ 6,335 $ - $ 6,335 $ 2,359 $ - $ 2,359 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Gaming equipment (in years) 2 to 6 Other property and equipment (in years) 3 to 6 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | December 31, 2020 December 31, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 622,509 $ 602,485 $ 533,727 $ 534,578 |
Note 2 - Acquisitions (Tables)
Note 2 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | February 8, 2019 (in 000s) Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) $ 12,335 Payments to holders of Integrity stock options and restricted share units 441 Repayments of Integrity debt and other obligations 39,806 Total purchase price consideration $ 52,582 February 8, 2019 (in 000s) Assets Current assets Cash and cash equivalents $ 1,646 Accounts receivable 1,584 Inventories 159 Deposits and other 26 Prepaid expenses 141 Total Current Assets 3,556 Property and Equipment 12,708 Intangible Assets 30,600 Goodwill 11,380 Total Assets $ 58,244 Liabilities and Equity Current liabilities Accounts payable $ 1,366 Accrued liabilities 2,087 Current portion of long-term debt 151 Total current liabilities 3,604 Other long-term liabilities 1,787 Long-term debt 200 Total liabilities 1,987 Minority Interest 71 Net assets acquired $ 52,582 |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended December 31, 2019 Year Ended December 31, 2018 Total revenues $ 306,452 $ 303,293 Net loss attributable to PlayAGS, Inc. $ (11,813 ) $ (20,381 ) |
Note 3 - Property and Equipme_2
Note 3 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2020 December 31, 2019 Gaming equipment $ 181,305 $ 175,837 Other property and equipment 23,391 23,210 Less: Accumulated depreciation (123,656 ) (95,449 ) Total property and equipment, net $ 81,040 $ 103,598 |
Note 4 - Goodwill and Intangi_2
Note 4 - Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Gross Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2018 $ 267,079 $ 6,641 $ 3,543 $ 277,263 Foreign currency adjustments 769 — (10 ) 759 Acquisition 11,380 1,180 — 12,560 Impairment — — (3,533 ) (3,533 ) Balance at December 31, 2019 $ 279,228 $ 7,821 $ - $ 287,049 Foreign currency adjustments (1,007 ) — — (1,007 ) Acquisition — — — 0 Impairment — — — 0 Balance at December 31, 2020 $ 278,221 $ 7,821 $ - $ 286,042 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2020 December 31, 2019 Useful Life (years) Gross Value Accumulated Amortization Net Carrying Value Gross Value Accumulated Amortization Net Carrying Value Indefinite-lived trade names Indefinite $ 12,126 $ — $ 12,126 $ 12,126 $ — $ 12,126 Trade and brand names 5 - 7 14,870 (14,269 ) 601 14,870 (13,209 ) 1,661 Customer relationships 5 - 12 218,848 (143,082 ) 75,766 219,788 (120,384 ) 99,404 Contract rights under development and placement fees 1 - 7 47,354 (15,588 ) 31,766 48,180 (8,888 ) 39,292 Gaming software and technology platforms 1 - 7 172,255 (114,774 ) 57,481 162,391 (96,193 ) 66,198 Intellectual property 10 - 12 19,345 (9,441 ) 9,904 19,345 (7,575 ) 11,770 $ 484,798 $ (297,154 ) 187,644 $ 476,700 $ (246,249 ) 230,451 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For the year ended December 31, Amortization Expense Placement Fee Accretion 2021 $ 36,262 $ 6,619 2022 30,805 6,431 2023 23,739 6,172 2024 18,217 5,940 2025 14,452 5,652 Thereafter 20,277 952 Total $ 143,752 $ 31,766 |
Note 5 - Accrued Liabilities (T
Note 5 - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2020 2019 Salary and payroll tax accrual $ 5,337 $ 8,691 Taxes payable 3,992 4,151 Current portion of operating lease liability 1,867 2,175 License fee obligation 1,000 1,000 Placement fees payable 6,314 8,346 Accrued other 7,815 10,477 Total accrued liabilities $ 26,325 $ 34,840 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Long-term Debt Instruments [Table Text Block] | December 31, 2020 2019 First Lien Credit Facilities: Term loans, interest at LIBOR or base rate plus 3.5% (4.5% at December 31, 2020), net of unamortized discount and deferred loan costs of $6.1 million and $9.0 million at December 31, 2020 and 2019, respectively. $ 520,499 $ 522,989 Incremental term loans, interest at LIBOR or base rate plus 13.0% (14.0% at December 31, 2020), net of unamortized discount and deferred loan costs of $7.8 million at December 31, 2020. $ 86,710 — Finance Leases 1,382 1,737 Total debt 608,591 524,727 Less: Current portion (7,031 ) (6,038 ) Long-term debt $ 601,560 $ 518,689 |
Schedule of Maturities of Long-term Debt [Table Text Block] | For the year ending December 31, 2021 $ 7,031 2022 6,838 2023 6,491 2024 602,150 2025 — Thereafter — Total scheduled maturities 622,510 Unamortized debt discount and debt issuance costs (13,919 ) Total debt $ 608,591 |
Note 11 - Stock-based Compens_2
Note 11 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year Ended December 31, 2020 2019 2018 Option valuation assumptions: Expected dividend yield N/A N/A —% Expected volatility N/A N/A 50% Risk-free interest rate N/A N/A 2.71% Expected term (in years) N/A N/A 6.3 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2019 1,382,986 $ 9.10 5.45 $ 4,793 Granted — $ — Exercised (15,544 ) $ 10.15 Canceled or forfeited (93,260 ) $ 7.89 Options outstanding as of December 31, 2020 1,274,182 $ 9.17 4.50 $ 412 Exercisable as of December 31, 2020 1,206,440 $ 8.82 4.37 $ 412 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | Year Ended December 31, 2020 2019 2018 Weighted average grant date fair value N/A N/A $ 12.63 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2019 712,496 $ 23.66 Granted 1,470,636 $ 3.92 Vested (1,034,699 ) $ 9.90 Canceled or forfeited (38,915 ) $ 23.88 Outstanding as of December 31, 2020 1,109,518 $ 10.32 |
Phantom Share Units (PSUs) [Member] | |
Notes Tables | |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2019 Granted 670,844 $ 3.87 Vested - $ - Canceled or forfeited (36,085 ) $ 3.94 Phantom stock outstanding as of December 31, 2020 634,759 $ 3.86 |
Note 12 - Income Taxes (Tables)
Note 12 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year ended December 31, 2020 2019 2018 Domestic $ (80,939 ) $ 1,129 $ (13,814 ) Foreign (10,314 ) (18,099 ) (15,409 ) Loss before provision for income taxes $ (91,253 ) $ (16,970 ) $ (29,223 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31, 2020 2019 2018 Current: Federal $ (1,495 ) $ (2,726 ) $ (773 ) State 262 286 227 Foreign (3,012 ) (1,084 ) (6,830 ) Total current income tax (benefit) expense (4,245 ) (3,524 ) (7,376 ) Deferred: Federal 365 343 379 State 53 49 48 Foreign (2,048 ) (2,317 ) (1,428 ) Total deferred income (benefit) expense (1,630 ) (1,925 ) (1,001 ) Income tax (benefit) expense $ (5,875 ) $ (5,449 ) $ (8,377 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2020 2019 2018 Federal statutory rate (21.0 )% (21.0 )% (21.0 )% Foreign rate differential (0.9 )% (2.9 )% (3.0 )% Losses of foreign subsidiaries disregarded for US income tax — % — % (1.3 )% State income taxes, net of federal benefit (2.9 )% 2.9 % (0.8 )% Nondeductible loan costs — % — % 0.5 % Nondeductible transaction costs — % 0.7 % 1.1 % Impact of tax liquidation — % — % 10.4 % Tax indemnification charges 1.0 % 7.9 % 9.5 % Stock Compensation 1.0 % 1.0 % (1.4 )% Other differences 0.6 % 4.1 % 2.7 % Withholding tax 0.2 % 3.3 % 1.7 % Tax credits 3.1 % (2.4 )% (12.0 )% Uncertain tax positions (2.8 )% (26.0 )% (38.0 )% Valuation allowance 15.3 % 0.3 % 22.9 % Rate change - impact of the Tax Act — % — % — % Repatriation tax - impact of the Tax Act — % — % (1.0 )% Tax credits - impact of the Tax Act — % — % 0.6 % Valuation allowance - impact of the Tax Act — % — % 0.4 % Effective tax rate (6.4 )% (32.1 )% (28.7 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2020 2019 Deferred tax assets: Accrued expenses $ 1,214 $ 2,411 Stock Compensation 2,610 3,129 Foreign tax credits 9,587 12,189 Net operating loss carryforwards 45,268 46,872 Research and development credits 5,625 6,313 Debt 17,555 Other 3,535 6,391 Total deferred tax assets 85,394 77,305 Valuation allowance (55,006 ) (41,004 ) Deferred tax assets, net of valuation allowance $ 30,388 $ 36,301 Deferred tax liabilities: Prepaid expenses and other $ (635 ) $ (582 ) Intangible assets (15,434 ) (19,719 ) Property and equipment, net (9,811 ) (12,871 ) Deferred tax liabilities (25,880 ) (33,172 ) Net deferred tax assets (liabilities) $ 4,508 $ 3,129 |
Summary of Income Tax Contingencies [Table Text Block] | December 31, 2020 December 31, 2019 Balance-beginning of year $ 10,954 $ 12,580 Acquisitions — 1,244 Increases based on tax positions of the current year 410 453 Decrease due to tax authority settlements — — Decreases due to lapse of statute (3,213 ) (3,225 ) Increases based on tax positions of the prior years — 95 Decreases based on tax positions of the prior years (665 ) (670 ) Currency translation adjustments (81 ) 477 Balance-end of year $ 7,405 $ 10,954 |
Note 14 - Operating Segments (T
Note 14 - Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2020 2019 2018 Revenues by segment EGM $ 151,789 $ 289,642 $ 271,025 Table Products 7,969 10,194 7,651 Interactive 7,249 4,878 6,623 Total Revenues 167,007 304,714 285,299 Adjusted EBITDA by segment EGM 65,877 144,718 137,371 Table Products 3,360 3,699 942 Interactive 2,432 (2,355 ) (2,107 ) Subtotal 71,669 146,062 136,206 Write-downs and other: Loss on disposal of long lived assets 2,399 1,068 1,963 Impairment of long lived assets 134 5,343 6,089 Fair value adjustments to contingent consideration and other items 796 501 701 Depreciation and amortization 85,722 91,474 77,535 Accretion of placement fees (1) 7,421 6,378 4,552 Non-cash stock compensation 8,457 9,001 10,933 Acquisitions and integration related costs including restructuring and severance 311 3,338 3,644 Initial public offering and secondary costs — 530 2,428 Legal and litigation expenses including settlement payments 1,830 1,844 992 Non-cash charge on capitalized installation and delivery 2,291 2,700 2,081 Other adjustments 6,477 148 (2 ) Interest expense 41,935 36,248 37,607 Interest income (1,179 ) (163 ) (207 ) Loss on extinguishment and modification of debt 3,102 — 6,625 Other expense (income) 3,226 4,622 10,488 Loss before income taxes $ (91,253 ) $ (16,970 ) $ (29,223 ) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Year ended December 31, Revenue: 2020 2019 2018 United States $ 151,187 $ 258,691 $ 255,256 Other 15,820 46,023 30,043 Total Revenue $ 167,007 $ 304,714 $ 285,299 Year ended December 31, Long-lived assets: 2020 2019 2018 United States $ 76,879 $ 89,597 $ 80,617 Other 13,623 19,132 14,022 Total long-lived assets $ 90,502 $ 108,729 $ 94,639 |
Note 15 - Leases (Tables)
Note 15 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | As of December 31, 2020 As of December 31, 2019 (ASC 842) (ASC 842) Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 9,763 $ 11,543 Finance leases Property and equipment, net(b) 1,300 1,815 Total leased assets, net $ 11,063 $ 13,358 Liabilities Current: Operating leases Accrued liabilities $ 1,867 $ 2,175 Finance leases Current maturities of long-term debt 694 651 Non-current: Operating leases Operating lease liabilities, long-term 9,497 11,284 Finance leases Long-term debt 688 1,086 Total lease liability $ 12,746 $ 15,196 |
Lease, Cost [Table Text Block] | For the Year Ended December 31, 2020 2019 2018 (ASC 842) (ASC 842) (ASC 840) Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 1,519 $ 1,578 N/A Operating lease cost - R&D Research and development 377 312 N/A Operating lease cost - warehouses Cost of gaming operations (c) 553 500 N/A Total Operating Lease cost: $ 2,449 $ 2,390 N/A Finance lease cost Depreciation of leased assets Depreciation and amortization $ 784 $ 649 $ 479 Interest on lease liabilities Interest expense 41 42 23 Total Finance Lease cost: 825 691 502 Total Lease Cost $ 3,274 $ 3,081 $ 502 As of As of December 31, December 31, 2020 2019 (ASC 842) (ASC 842) Lease term and discount rate Operating Weighted average remaining lease term (years) 6.5 7.0 Weighted average discount rate 5.9 % 5.9 % Finance Leases Weighted average remaining lease term (years) 1.7 2.3 Weighted average discount rate 2.5 % 2.6 % Year Ended December 31, 2020 2019 2018 (ASC 842) (ASC 842) (ASC 840) Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,918 $ 2,613 N/A Operating cash flows from finance leases $ 41 $ 42 $ 23 Financing cash flows from finance leases $ 691 $ 630 $ 436 |
Lessee, Lease Liability, Maturity [Table Text Block] | Operating Leases Financing Leases Total Maturity of lease liabilities (in thousands) 2021 $ 2,502 $ 718 $ 3,220 2022 2,008 511 2,519 2023 1,845 156 2,001 2024 1,808 34 1,842 2025 1,791 - 1,791 Thereafter 3,819 - 3,819 Total lease payments $ 13,773 $ 1,419 $ 15,192 Less: interest 2,409 37 2,446 Present value of lease liabilities $ 11,364 $ 1,382 $ 12,746 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Registrant (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2020 2019 Assets Current assets Cash and cash equivalents $ 474 $ 282 Intercompany Receivables 8 8 Prepaid expenses 27 26 Total current assets 509 316 Investment in subsidiaries 54,681 134,811 Other long-term assets 8 8 Total assets $ 55,198 $ 135,135 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 1,415 $ 1,351 Total current liabilities 1,415 1,351 Total liabilities 1,415 1,351 Stockholders’ equity: Common stock 364 355 Additional paid-in capital 379,917 371,311 Retained earnings (321,412 ) (235,474 ) Accumulated other comprehensive loss (5,086 ) (2,408 ) Total stockholders’ equity 53,783 133,784 Total liabilities and stockholders’ equity $ 55,198 $ 135,135 |
Condensed Income Statement [Table Text Block] | Year ended December 31, 2020 2019 2018 Revenue Intercompany revenue $ — $ 8 $ — Total Revenue — 8 — Operating expenses Selling, general and administrative 24 25 $ 30 Total operating expenses 24 25 30 Loss from operations (24 ) (17 ) (30 ) Other expense (income) Equity in net loss of subsidiaries (85,349 ) (11,807 ) 16,396 Interest expense — — 1,383 Loss on extinguishment and modification of debt — — 3,037 Other (Expense) Income (5 ) 72 — Loss before income taxes (85,378 ) (11,752 ) (20,846 ) Income tax (expense) benefit — — — Net loss attributable to PlayAGS, Inc. (85,378 ) (11,752 ) (20,846 ) Foreign currency translation adjustment (2,678 ) 1,366 29 Total comprehensive loss $ (88,056 ) $ (10,386 ) $ (20,817 ) |
Condensed Cash Flow Statement [Table Text Block] | Year ended December 31, 2020 2019 2018 Cash flows from operating activities Net loss $ (85,378 ) $ (11,752 ) $ (20,846 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Amortization of deferred loan costs and discount — — — Payment-in-kind interest payments — — (37,624 ) Payment-in-kind interest capitalized — — — Write-off of deferred loan costs and discount — — 3,037 Equity income from subsidiaries 85,349 11,807 16,396 Changes in assets and liabilities that relate to operations: Prepaid expenses (1 ) 23 5 Intercompany payable/receivable 64 570 365 Net cash provided by (used in) operating activities 34 648 (38,667 ) Cash flows from investing activities Investment in subsidiaries — (13,280 ) (12,100 ) Distributions received from subsidiaries 560 — — Net cash (used in) provided by investing activities 560 (13,280 ) (12,100 ) Cash flows from financing activities Repayment of seller notes — — — Repayment of senior secured credit facilities — — (115,000 ) Proceeds from employees in advance of common stock issuance — — — Repurchase of shares (560 ) (1,320 ) — Proceeds from issuance of common stock — — 176,341 Proceeds from stock option exercise 158 685 774 Net cash (used in) provided by financing activities (402 ) (635 ) 62,115 (Decrease) increase in cash and cash equivalents 192 (13,267 ) 11,348 Cash and cash equivalents, beginning of period 282 13,549 2,201 Cash and cash equivalents, end of period $ 474 $ 282 $ 13,549 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Notes Tables | |
Summary of Valuation Allowance [Table Text Block] | Tax-related valuation allowance Balance at the beginning of period Charged to tax expense/(benefit) Purchase accounting adjustments Impact of foreign currency exchange rate Balance at the end of period Year ended December 31, 2020 $ 41,004 $ 13,924 $ - $ 78 $ 55,006 Year ended December 31, 2019 $ 40,857 $ 50 $ 65 $ 32 $ 41,004 Year ended December 31, 2018 $ 33,774 $ 6,814 $ 269 $ — $ 40,857 |
Note 1 - Description of the B_3
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details Textual) $ / shares in Units, $ in Thousands | May 01, 2020USD ($) | Feb. 27, 2018shares | Jan. 30, 2018$ / sharesshares | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 06, 2017USD ($) |
Number of Reportable Segments | 3 | ||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 1,537,500 | ||||||
Inventory, Raw Materials, Gross, Total | $ 21,800 | $ 29,100 | |||||
Inventory, Finished Goods, Gross, Total | 5,100 | 3,800 | |||||
Inventory, Work in Process, Gross | 0 | 0 | |||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 41,743 | 61,224 | |||||
Advertising Expense | 300 | 600 | $ 600 | ||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 81,689 | $ 13,162 | $ 81,700 | ||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | |||||||
Debt Instrument, Covenant, Maximum Leverage Ration | 6 | ||||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | |||||||
Debt Instrument, Face Amount | $ 95,000 | ||||||
Proceeds from Debt, Net of Issuance Costs | $ 83,300 | ||||||
Debt Instrument, Refinancing, Payment Premium or Fee, Percentage | 1.00% | ||||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 13.00% | ||||||
The First Lien Credit Agreement [Member] | AP Gaming I, LLC [Member] | Incremental Term Loans [Member] | Base Rate [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 12.00% | ||||||
The First Lien Credit Agreement [Member] | Revolving Credit Facility [Member] | AP Gaming I, LLC [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | $ 30,000 | |||||
MEXICO | |||||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 5,800 | ||||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | |||||||
Number of Major Customers | 1 | 1 | 1 | ||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||
Concentration Risk, Percentage | 15.00% | 9.00% | 11.00% | ||||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | MEXICO | |||||||
Concentration Risk, Percentage | 4.00% | 9.00% | 9.00% | ||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||||||
Number of Major Customers | 1 | 1 | |||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||||||
Concentration Risk, Percentage | 12.00% | 11.00% | |||||
Gaming Operations [Member] | Minimum [Member] | |||||||
Lessor, Operating Lease, Term of Contract (Year) | 1 year | ||||||
Gaming Operations [Member] | Maximum [Member] | |||||||
Lessor, Operating Lease, Term of Contract (Year) | 3 years | ||||||
IPO [Member] | |||||||
Stock Issued During Period, Shares, New Issues (in shares) | shares | 10,250,000 | ||||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 16 |
Note 1 - Description of the B_4
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 167,007 | $ 304,714 | $ 285,299 |
Gaming Operations [Member] | |||
Total revenues | 129,150 | 210,534 | 201,809 |
Equipment Sales [Member] | |||
Total revenues | 37,857 | 94,180 | 83,490 |
EGM [Member] | |||
Total revenues | 151,789 | 289,642 | 271,025 |
EGM [Member] | Gaming Operations [Member] | |||
Total revenues | 114,548 | 196,101 | 187,809 |
EGM [Member] | Equipment Sales [Member] | |||
Total revenues | 37,241 | 93,541 | 83,216 |
Table Products [Member] | |||
Total revenues | 7,969 | 10,194 | 7,651 |
Table Products [Member] | Gaming Operations [Member] | |||
Total revenues | 7,353 | 9,555 | 7,377 |
Table Products [Member] | Equipment Sales [Member] | |||
Total revenues | 616 | 639 | 274 |
Interactive (Gaming Operations) [Member] | |||
Total revenues | 7,249 | 4,878 | 6,623 |
Interactive (Gaming Operations) [Member] | Social [Member] | |||
Total revenues | 3,513 | 3,319 | 6,147 |
Interactive (Gaming Operations) [Member] | RMG [Member] | |||
Total revenues | $ 3,736 | $ 1,559 | $ 476 |
Note 1 - Description of the B_5
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for doubtful accounts | $ 723 | $ 885 | $ 1,462 |
Charge-offs | (1,340) | (456) | (136) |
Provision (benefit) for bad debts | 2,694 | 294 | (441) |
Allowance for doubtful accounts | $ 2,077 | $ 723 | $ 885 |
Note 1 - Description of the B_6
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Trade Accounts Receivable [Member] | ||
Gross amortized cost | $ 10,409 | $ 22,741 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 10,409 | 22,741 |
Account Receivables with Extended Payment Term Originated in 2020 [Member] | ||
Gross amortized cost | 7,559 | |
Allowance for credit losses | 0 | |
Amortized cost, net of allowance for credit losses | 7,559 | |
Account Receivables with Extended Payment Term Originated in 2019 [Member] | ||
Gross amortized cost | 1,319 | 5,461 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 1,319 | 5,461 |
Account Receivables with Extended Payment Term [Member] | ||
Gross amortized cost | 8,878 | 5,461 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 8,878 | 5,461 |
Sales-type Leases Receivables Classified as Accounts Receivable Originated in 2019 [Member] | ||
Gross amortized cost | 472 | 2,206 |
Allowance for credit losses | (24) | (111) |
Amortized cost, net of allowance for credit losses | 448 | 2,095 |
Sales-type Leases Receivables Classified as Accounts Receivable Originated in 2017 [Member] | ||
Gross amortized cost | 16 | 52 |
Allowance for credit losses | (1) | (3) |
Amortized cost, net of allowance for credit losses | 15 | 49 |
Sales-type Leases Receivables Classified as Accounts Receivable [Member] | ||
Gross amortized cost | 488 | 2,258 |
Allowance for credit losses | (25) | (114) |
Amortized cost, net of allowance for credit losses | 463 | 2,144 |
Deposits and Other Originated in 2020 [Member] | ||
Gross amortized cost | 4,199 | |
Allowance for credit losses | 0 | |
Amortized cost, net of allowance for credit losses | 4,199 | |
Development Agreements Classified as Deposits and Other Originated in 2019 [Member] | ||
Gross amortized cost | 2,136 | 2,359 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | 2,136 | 2,359 |
Development Agreements Classified as Deposits and Other [Member] | ||
Gross amortized cost | 6,335 | 2,359 |
Allowance for credit losses | 0 | 0 |
Amortized cost, net of allowance for credit losses | $ 6,335 | $ 2,359 |
Note 1 - Description of the B_7
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Gaming Equipment [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 2 years |
Gaming Equipment [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 3 years |
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 6 years |
Note 1 - Description of the B_8
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Estimated Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long-term Debt, carrying amount | $ 622,510 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Long-term Debt, carrying amount | 622,509 | $ 533,727 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Long-term Debt, fair value | $ 602,485 | $ 534,578 |
Note 2 - Acquisitions (Details
Note 2 - Acquisitions (Details Textual) $ in Thousands | Feb. 08, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Goodwill, Ending Balance | $ 286,042 | $ 287,049 | $ 277,263 | |||
In Bet [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 4,000 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 1,200 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 2,800 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 9 years 3 months 18 days | |||||
Integrity Gaming Corp [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 52,582 | |||||
Number of Gaming Machines | 2,500 | |||||
Number of Casinos | 33 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 600 | |||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed, Uncertain Tax Position | 1,400 | |||||
Payments to Acquire Businesses, Gross | 12,335 | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | 39,806 | |||||
Goodwill, Ending Balance | $ 11,380 | |||||
Integrity Gaming Corp [Member] | Customer Relationships [Member] | ||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 10 years | |||||
Gameiom Technologies Limited [Member] | ||||||
Business Combination, Consideration Transferred, Total | $ 5,000 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total | $ 2,100 | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life (Year) | 6 years 8 months 12 days | |||||
Payments to Acquire Businesses, Gross | $ 4,500 | |||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 500 | |||||
Deferred Consideration To Acquire Business, Payment Terms (Month) | 18 months | |||||
Goodwill, Ending Balance | $ 3,700 |
Note 2 - Acquisitions - Acquisi
Note 2 - Acquisitions - Acquisition (Details) - USD ($) $ in Thousands | Feb. 08, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill, Ending Balance | $ 286,042 | $ 287,049 | $ 277,263 | |
Integrity Gaming Corp [Member] | ||||
Total purchase price for Integrity common stock (35,223,928 shares at CAD $0.46 per share) | $ 12,335 | |||
Payments to holders of Integrity stock options and restricted share units | 441 | |||
Repayments of Integrity debt and other obligations | 39,806 | |||
Total purchase price consideration | 52,582 | |||
Cash and cash equivalents | 1,646 | |||
Accounts receivable | 1,584 | |||
Inventories | 159 | |||
Deposits and other | 26 | |||
Prepaid expenses | 141 | |||
Total Current Assets | 3,556 | |||
Property and Equipment | 12,708 | |||
Intangible Assets | 30,600 | |||
Goodwill, Ending Balance | 11,380 | |||
Total Assets | 58,244 | |||
Accounts payable | 1,366 | |||
Accrued liabilities | 2,087 | |||
Current portion of long-term debt | 151 | |||
Total current liabilities | 3,604 | |||
Other long-term liabilities | 1,787 | |||
Long-term debt | 200 | |||
Total liabilities | 1,987 | |||
Minority Interest | 71 | |||
Net assets acquired | $ 52,582 |
Note 2 - Acquisitions - Pro For
Note 2 - Acquisitions - Pro Forma Information (Details) - Integrity Gaming Corp [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Total revenues | $ 306,452 | $ 303,293 |
Net loss attributable to PlayAGS, Inc. | $ (11,813) | $ (20,381) |
Note 3 - Property and Equipme_3
Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation, Total | $ 39.5 | $ 45.1 | $ 32.4 |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 2 years | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 6 years |
Note 3 - Property and Equipme_4
Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Less: Accumulated depreciation | $ (123,656) | $ (95,449) |
Total property and equipment, net | 81,040 | 103,598 |
Gaming Equipment [Member] | ||
Property and equipment, gross | 181,305 | 175,837 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | $ 23,391 | $ 23,210 |
Note 4 - Goodwill and Intangi_3
Note 4 - Goodwill and Intangibles (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2019USD ($) | Mar. 31, 2020 | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Oct. 01, 2020 | Oct. 01, 2019 | |||
Number of Reporting Units | 2 | |||||||||
Goodwill, Impairment Loss | $ 0 | $ 3,533 | ||||||||
Goodwill, Ending Balance | 286,042 | 287,049 | $ 277,263 | |||||||
Amortization of Intangible Assets, Total | 46,200 | 46,400 | 45,100 | |||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 500 | |||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 12,126 | 12,126 | ||||||||
Accretion of Contract Rights Under Development Agreements and Customer Agreements | [1] | $ 7,421 | 6,378 | $ 4,552 | ||||||
Placement Fees, Capitalized | $ 33,100 | |||||||||
Placement Fees, Unamortized Cost | 2,100 | |||||||||
Present Value and Cash Payments, Placement Fees Payables | $ 40,100 | |||||||||
Placement Fees, Payment Term (Month) | 83 months | |||||||||
RMG Customer Relationships, Gaming Licenses, and Game Content [Member] | ||||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | 600 | |||||||||
RMG Technology Platform [Member] | ||||||||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 700 | |||||||||
Indefinite-lived Intangible Assets (Excluding Goodwill), Ending Balance | $ 400 | |||||||||
Minimum [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | |||||||||
Maximum [Member] | ||||||||||
Finite-Lived Intangible Asset, Useful Life (Year) | 12 years | |||||||||
Measurement Input, Discount Rate [Member] | ||||||||||
Impairment Assumptions, Measurement Input | 0.25 | 0.19 | ||||||||
Measurement Input, Long-term Revenue Growth Rate [Member] | ||||||||||
Impairment Assumptions, Measurement Input | 0.030 | 0.030 | 0.03 | |||||||
Royalty Rate [Member] | ||||||||||
Impairment Assumptions, Measurement Input | 0.05 | |||||||||
EGM [Member] | ||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 34.00% | 17.00% | 50.00% | |||||||
EGM [Member] | Measurement Input, Discount Rate [Member] | ||||||||||
Impairment Assumptions, Measurement Input | 0.120 | 0.10 | ||||||||
Table Products [Member] | ||||||||||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 21.00% | 32.00% | 111.00% | |||||||
Table Products [Member] | Measurement Input, Discount Rate [Member] | ||||||||||
Impairment Assumptions, Measurement Input | 0.155 | 0.14 | ||||||||
Interactive (Gaming Operations) [Member] | ||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 8,400 | |||||||||
Goodwill, Impairment Loss | $ 3,500 | 0 | $ 3,533 | $ 4,800 | ||||||
Goodwill, Ending Balance | $ 0 | $ 0 | 3,543 | [2] | ||||||
Interactive (Gaming Operations) [Member] | Social [Member] | ||||||||||
Goodwill, Ending Balance | $ 4,800 | |||||||||
[1] | Non-cash expense related to the accretion of contract rights under development agreements and placement fees. | |||||||||
[2] | Accumulated goodwill impairment charges for the Interactive segment as of December 31, 2020 were $8.4 million. |
Note 4 - Goodwill and Intangi_4
Note 4 - Goodwill and Intangibles - Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||
Goodwill, balance | $ 287,049 | $ 277,263 | ||||
Foreign currency adjustments | (1,007) | 759 | ||||
Acquisition | 0 | 12,560 | ||||
Impairment | 0 | (3,533) | ||||
Goodwill, balance | 286,042 | 287,049 | $ 277,263 | |||
EGM [Member] | ||||||
Goodwill, balance | 279,228 | 267,079 | ||||
Foreign currency adjustments | (1,007) | 769 | ||||
Acquisition | 0 | 11,380 | ||||
Impairment | 0 | 0 | ||||
Goodwill, balance | 278,221 | 279,228 | 267,079 | |||
Table Products [Member] | ||||||
Goodwill, balance | 7,821 | 6,641 | ||||
Foreign currency adjustments | 0 | 0 | ||||
Acquisition | 0 | 1,180 | ||||
Impairment | 0 | 0 | ||||
Goodwill, balance | 7,821 | 7,821 | 6,641 | |||
Interactive (Gaming Operations) [Member] | ||||||
Goodwill, balance | 0 | 3,543 | [1] | |||
Foreign currency adjustments | 0 | (10) | [1] | |||
Acquisition | 0 | 0 | ||||
Impairment | $ (3,500) | 0 | (3,533) | (4,800) | ||
Goodwill, balance | $ 0 | $ 0 | $ 3,543 | [1] | ||
[1] | Accumulated goodwill impairment charges for the Interactive segment as of December 31, 2020 were $8.4 million. |
Note 4 - Goodwill and Intangi_5
Note 4 - Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Indefinite-lived trade names | $ 12,126 | $ 12,126 |
Finite lived, accumulated amortization | (297,154) | (246,249) |
Intangible assets, gross value | 484,798 | 476,700 |
Intangible assets, net carrying value | $ 187,644 | 230,451 |
Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Trade Names [Member] | ||
Finite lived, gross value | $ 14,870 | 14,870 |
Finite lived, accumulated amortization | (14,269) | (13,209) |
Total, Amortization Expense | $ 601 | 1,661 |
Trade Names [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Trade Names [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Customer Relationships [Member] | ||
Finite lived, gross value | $ 218,848 | 219,788 |
Finite lived, accumulated amortization | (143,082) | (120,384) |
Total, Amortization Expense | $ 75,766 | 99,404 |
Customer Relationships [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 5 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years | |
Contractual Rights [Member] | ||
Finite lived, gross value | $ 47,354 | 48,180 |
Finite lived, accumulated amortization | (15,588) | (8,888) |
Total, Amortization Expense | $ 31,766 | 39,292 |
Contractual Rights [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Contractual Rights [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Computer Software, Intangible Asset [Member] | ||
Finite lived, gross value | $ 172,255 | 162,391 |
Finite lived, accumulated amortization | (114,774) | (96,193) |
Total, Amortization Expense | $ 57,481 | 66,198 |
Computer Software, Intangible Asset [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 1 year | |
Computer Software, Intangible Asset [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 7 years | |
Intellectual Property [Member] | ||
Finite lived, gross value | $ 19,345 | 19,345 |
Finite lived, accumulated amortization | (9,441) | (7,575) |
Total, Amortization Expense | $ 9,904 | $ 11,770 |
Intellectual Property [Member] | Minimum [Member] | ||
Intangible assets, useful life (Year) | 10 years | |
Intellectual Property [Member] | Maximum [Member] | ||
Intangible assets, useful life (Year) | 12 years |
Note 4 - Goodwill and Intangi_6
Note 4 - Goodwill and Intangibles - Finite-lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Amortization Expense [Member] | |
2021, Amortization Expense | $ 36,262 |
2022, Amortization Expense | 30,805 |
2023, Amortization Expense | 23,739 |
2024, Amortization Expense | 18,217 |
2025, Amortization Expense | 14,452 |
Thereafter, Amortization Expense | 20,277 |
Total, Amortization Expense | 143,752 |
Placement Fee Accretion [Member] | |
2021, Amortization Expense | 6,619 |
2022, Amortization Expense | 6,431 |
2023, Amortization Expense | 6,172 |
2024, Amortization Expense | 5,940 |
2025, Amortization Expense | 5,652 |
Thereafter, Amortization Expense | 952 |
Total, Amortization Expense | $ 31,766 |
Note 5 - Accrued Liabilities -
Note 5 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Total accrued liabilities | $ 26,325 | $ 34,840 |
Accrued Liabilities [Member] | ||
Salary and payroll tax accrual | 5,337 | 8,691 |
Taxes payable | 3,992 | 4,151 |
Current portion of operating lease liability | 1,867 | 2,175 |
License fee obligation | 1,000 | 1,000 |
Placement fees payable | 6,314 | 8,346 |
Accrued other | $ 7,815 | $ 10,477 |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) - USD ($) $ in Thousands | May 01, 2020 | Oct. 05, 2018 | Feb. 08, 2018 | Dec. 06, 2017 | Jun. 06, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Gain (Loss) on Extinguishment of Debt, Total | $ (3,102) | $ 0 | $ (6,625) | |||||
Long-term Debt, Total | 608,591 | 524,727 | ||||||
Write off of Deferred Debt Issuance Cost | 0 | 0 | $ 3,876 | |||||
The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||||||||
Long-term Debt, Total | $ 101,200 | 86,710 | $ 0 | |||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 30,000 | $ 30,000 | ||||||
Line of Credit Facility, Annual Commitment Fee, Percentage | 0.50% | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | ||||||||
Debt Instrument, Face Amount | $ 30,000 | $ 65,000 | $ 450,000 | |||||
Debt Instrument, Quarterly Payment, Percentage of Original Principle Amount | 0.25% | |||||||
Debt Issuance Costs, Gross | 1,000 | |||||||
Gain (Loss) on Extinguishment of Debt, Total | $ (1,500) | $ (900) | ||||||
Long-term Debt, Total | $ 513,000 | |||||||
Gains (Losses) on Restructuring of Debt | (1,200) | |||||||
Write off of Deferred Debt Issuance Cost | $ 400 | |||||||
Debt Instrument, Conditional Increase in Basis Spread on Variable Rate | 0.75% | |||||||
Debt Instrument, Additional Increase in Basis Spread on Variable Rate | 0.25% | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 4.25% | 5.50% | ||||||
Debt Instrument, Basis Floor on Variable Rate | 1.00% | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||||||||
Debt Instrument, Face Amount | 95,000 | |||||||
Debt Issuance Costs, Gross | 11,700 | |||||||
Gain (Loss) on Extinguishment of Debt, Total | (3,100) | |||||||
Proceeds from Debt, Net of Issuance Costs | $ 83,300 | |||||||
Debt Instrument, Refinancing, Payment Premium or Fee, Percentage | 1.00% | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net, Total | $ 8,600 | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 13.00% | |||||||
AP Gaming I, LLC [Member] | The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | Base Rate [Member] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 12.00% |
Note 6 - Long-term Debt - Sched
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | May 01, 2020 | Dec. 31, 2019 |
Total debt | $ 608,591 | $ 524,727 | |
Less: Current portion | (7,031) | (6,038) | |
Long-term debt | 601,560 | 518,689 | |
First Lien Credit Facilities [Member] | Term Loan [Member] | |||
Total debt | 520,499 | 522,989 | |
The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | |||
Total debt | 86,710 | $ 101,200 | 0 |
Equipment Long-term Note Payable and Finance Leases [Member] | |||
Total debt | $ 1,382 | $ 1,737 |
Note 6 - Long-term Debt - Sch_2
Note 6 - Long-term Debt - Scheduled Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
2021 | $ 7,031 | |
2022 | 6,838 | |
2023 | 6,491 | |
2024 | 602,150 | |
2025 | 0 | |
Thereafter | 0 | |
Total scheduled maturities | 622,510 | |
Unamortized debt discount and debt issuance costs | (13,919) | |
Total debt | $ 608,591 | $ 524,727 |
Note 7 - Stockholders' Equity (
Note 7 - Stockholders' Equity (Details Textual) $ / shares in Units, $ in Millions | Feb. 27, 2018shares | Jan. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018 | Dec. 31, 2020$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | 1.5543 | |||
Stock Issued During Period, Shares, New Issues (in shares) | 1,537,500 | ||||
Proceeds from Issuance Initial Public Offering | $ | $ 171.5 | ||||
Common Stock, Shares, Issued, Total (in shares) | 36,494,002 | 35,534,558 | |||
Reclassification From Liabilities to Additional Paid in Capital | $ | $ 1.3 | ||||
Common Stock, Shares Authorized (in shares) | 450,000,000 | 450,000,000 | |||
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized (in shares) | 50,000,000 | 50,000,000 | |||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |||
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 36,494,002 | 35,534,558 | |||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 | |||
Stock Repurchase Program, Authorized Amount | $ | $ 50 | ||||
Management [Member] | |||||
Common Stock, Shares, Issued, Total (in shares) | 170,712 | ||||
IPO [Member] | |||||
Stock Issued During Period, Shares, New Issues (in shares) | 10,250,000 | ||||
Shares Issued, Price Per Share (in dollars per share) | $ / shares | $ 16 |
Note 8 - Write-downs and Othe_2
Note 8 - Write-downs and Other Charges (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other Cost and Expense, Operating, Total | $ 3,329 | $ 6,912 | $ 8,753 | |
Goodwill, Impairment Loss | 0 | 3,533 | ||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 800 | 700 | ||
Impairment of Intangible Assets, Finite-lived | 500 | |||
Gain (Loss) on Disposition of Assets, Total | (2,399) | (1,068) | (1,963) | |
Interactive (Gaming Operations) [Member] | ||||
Goodwill, Impairment Loss | $ 3,500 | 0 | 3,533 | 4,800 |
Impairment of Intangible Assets, Finite-lived | 1,300 | $ 1,300 | ||
Placement Fees [Member] | ||||
Goodwill, Impairment Loss | $ 1,900 | |||
Game Titles [Member] | ||||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | $ 500 |
Note 9 - Basic and Diluted Lo_2
Note 9 - Basic and Diluted Loss Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted Average Number Diluted Shares Outstanding Adjustment, Total (in shares) | 0 | 0 | 0 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,191,944 | 616,751 | 125,249 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 32,591 | 629,866 | 849,660 |
Note 10 - Benefit Plans (Detail
Note 10 - Benefit Plans (Details Textual) $ in Millions | Jan. 30, 2018 | Apr. 28, 2014shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Defined Contribution Plan, Cost | $ | $ 0.4 | $ 1.4 | $ 1.2 | ||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | 1.5543 | |||
The 2014 Long-Term Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award, Term (Year) | 10 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,253,735 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 423,268 | ||||
The 2018 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 4,607,389 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 2,048,135 |
Note 11 - Stock-based Compens_3
Note 11 - Stock-based Compensation (Details Textual) $ in Thousands | Jan. 30, 2018 | Sep. 30, 2020 | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($) | Oct. 31, 2018shares |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 1.5543 | 1.5543 | ||||
Share-based Payment Arrangement, Expense | $ 8,457 | $ 9,001 | $ 10,933 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | shares | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | shares | 1,274,182 | 1,382,986 | 556,763 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in shares) | shares | 1,206,440 | 556,763 | ||||
Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 400 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 300 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 2 months 12 days | |||||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | |||||
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Tranche A [Member] | Maximum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 5 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 7,800 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 9,000 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 6 months | |||||
Phantom Share Units (PSUs) [Member] | ||||||
Share-based Payment Arrangement, Expense | $ 300 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 3,900 | |||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 3 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Phantom Share Units (PSUs) [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Performance Shares [Member] | Share-based Payment Arrangement, Tranche A [Member] | Minimum [Member] | Long-term Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 4 years | |||||
Restricted Stock [Member] | On Each of First Four Anniversaries of Date of Grant [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Note 11 - Stock-based Compens_4
Note 11 - Stock-based Compensation - Valuation Assumptions (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Expected volatility | 50.00% |
Risk-free interest rate | 2.71% |
Expected term (in years) (Year) | 6 years 3 months 18 days |
Note 11 - Stock-based Compens_5
Note 11 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Oct. 31, 2018 | |
Options outstanding, number of options (in shares) | 1,382,986 | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.10 | ||
Options outstanding, weighted average remaining contract term (Year) | 4 years 6 months | 5 years 5 months 12 days | |
Options outstanding, aggregate intrinsic value | $ 412 | $ 4,793 | |
Granted, number of options (in shares) | 0 | ||
Granted, weighted average exercise price (in dollars per share) | $ 0 | ||
Granted aggregate intrinsic value | |||
Exercised, number of options (in shares) | (15,544) | ||
Exercised, weighted average exercise price (in dollars per share) | $ 10.15 | ||
Canceled or forfeited, number of options (in shares) | (93,260) | ||
Canceled or forfeited, weighted average exercise price (in dollars per share) | $ 7.89 | ||
Options outstanding, number of options (in shares) | 1,274,182 | 1,382,986 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.17 | $ 9.10 | |
Options exercisable, number of options (in shares) | 1,206,440 | 556,763 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 8.82 | ||
Options exercisable, weighted average remaining contract term (Year) | 4 years 4 months 13 days | ||
Options exercisable, aggregate intrinsic value | $ 412 |
Note 11 - Stock-based Compens_6
Note 11 - Stock-based Compensation - Stock Options Granted (Details) | 12 Months Ended |
Dec. 31, 2018$ / shares | |
Weighted average grant date fair value (in dollars per share) | $ 12.63 |
Note 11 - Stock-based Compens_7
Note 11 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Outstanding, shares (in shares) | shares | 712,496 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 23.66 |
Granted, shares (in shares) | shares | 1,470,636 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 3.92 |
Vested, shares (in shares) | shares | (1,034,699) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 9.90 |
Canceled or forfeited, shares (in shares) | shares | (38,915) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 23.88 |
Outstanding, shares (in shares) | shares | 1,109,518 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 10.32 |
Note 11 - Stock-based Compens_8
Note 11 - Stock-based Compensation - Phantom Stock Units (Details) - Phantom Share Units (PSUs) [Member] | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Granted, shares (in shares) | shares | 670,844 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 3.87 |
Vested, shares (in shares) | shares | 0 |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 0 |
Canceled or forfeited, shares (in shares) | shares | (36,085) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 3.94 |
Outstanding, shares (in shares) | shares | 634,759 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 3.86 |
Note 12 - Income Taxes (Details
Note 12 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | May 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Tax Assets, Valuation Allowance, Total | $ 55,006 | $ 41,004 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 9,587 | 12,189 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 5,625 | 6,313 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 183,300 | |||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 13,200 | |||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 122,900 | |||
Long-term Debt, Total | 608,591 | 524,727 | ||
Unrecognized Tax Benefits, Ending Balance | 7,405 | 10,954 | $ 12,580 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3,500 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,400 | |||
Reduced in Income Tax Penalties and Interest | 1,800 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 3,500 | |||
Business Combination, Indemnification Assets, Amount as of Acquisition Date | $ 800 | 4,200 | ||
Domestic Tax Authority [Member] | ||||
Open Tax Year | 2017 2018 2019 2020 | |||
Foreign Tax Authority [Member] | Mexican Tax Authority [Member] | ||||
Open Tax Year | 2015 2016 2017 2018 2019 2020 | |||
The First Lien Credit Agreement [Member] | Incremental Term Loans [Member] | ||||
Long-term Debt, Total | $ 86,710 | $ 101,200 | $ 0 |
Note 12 - Income Taxes - Provis
Note 12 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic | $ (80,939) | $ 1,129 | $ (13,814) |
Foreign | (10,314) | (18,099) | (15,409) |
Loss before income taxes | $ (91,253) | $ (16,970) | $ (29,223) |
Note 12 - Income Taxes - Income
Note 12 - Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Federal | $ (1,495) | $ (2,726) | $ (773) |
State | 262 | 286 | 227 |
Foreign | (3,012) | (1,084) | (6,830) |
Total current income tax (benefit) expense | (4,245) | (3,524) | (7,376) |
Federal | 365 | 343 | 379 |
State | 53 | 49 | 48 |
Foreign | (2,048) | (2,317) | (1,428) |
Total deferred income (benefit) expense | (1,630) | (1,925) | (1,001) |
Income tax (benefit) expense | $ (5,875) | $ (5,449) | $ (8,377) |
Note 12 - Income Taxes - Reconc
Note 12 - Income Taxes - Reconciliation of Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2020Rate | Dec. 31, 2019Rate | Dec. 31, 2018Rate | |
Federal statutory rate | 21.00% | 21.00% | 21.00% |
Foreign rate differential | (0.90%) | (2.90%) | (3.00%) |
Losses of foreign subsidiaries disregarded for US income tax | 0.00% | 0.00% | (1.30%) |
State income taxes, net of federal benefit | (2.90%) | 2.90% | (0.80%) |
Nondeductible loan costs | 0.00% | 0.00% | 0.50% |
Nondeductible transaction costs | 0.00% | 0.70% | 1.10% |
Impact of tax liquidation | 0.00% | 0.00% | 10.40% |
Tax indemnification charges | 1.00% | 7.90% | 9.50% |
Stock Compensation | 1.00% | 1.00% | (1.40%) |
Other differences | 0.60% | 4.10% | 2.70% |
Withholding tax | 0.20% | 3.30% | 1.70% |
Tax credits | 3.10% | (2.40%) | (12.00%) |
Uncertain tax positions | (2.80%) | (26.00%) | (38.00%) |
Valuation allowance | 15.30% | 0.30% | 22.90% |
Rate change - impact of the Tax Act (Rate) | 0.00% | 0.00% | 0.00% |
Repatriation tax - impact of the Tax Act (Rate) | 0.00% | 0.00% | (100.00%) |
Tax credits - impact of the Tax Act | 0.00% | 0.00% | 0.60% |
Valuation allowance - impact of the Tax Act | 0.00% | 0.00% | 0.40% |
Effective tax rate | (6.40%) | (32.10%) | (28.70%) |
Note 12 - Income Taxes - Compon
Note 12 - Income Taxes - Components of Net Deferred Tax Assets (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued expenses | $ 1,214 | $ 2,411 |
Stock Compensation | 2,610 | 3,129 |
Foreign tax credits | 9,587 | 12,189 |
Net operating loss carryforwards | 45,268 | 46,872 |
Research and development credits | 5,625 | 6,313 |
Debt | 17,555 | |
Other | 3,535 | 6,391 |
Total deferred tax assets | 85,394 | 77,305 |
Valuation allowance | (55,006) | (41,004) |
Deferred tax assets, net of valuation allowance | 30,388 | 36,301 |
Prepaid expenses and other | (635) | (582) |
Intangible assets | (15,434) | (19,719) |
Property and equipment, net | (9,811) | (12,871) |
Deferred tax liabilities | (25,880) | (33,172) |
Net deferred tax assets (liabilities) | $ 4,508 | $ 3,129 |
Note 12 - Income Taxes - Unreco
Note 12 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Balance-beginning of year | $ 10,954 | $ 12,580 |
Acquisitions | 0 | 1,244 |
Increases based on tax positions of the current year | 410 | 453 |
Decrease due to tax authority settlements | 0 | 0 |
Decreases due to lapse of statute | (3,213) | (3,225) |
Increases based on tax positions of the prior years | 0 | 95 |
Decreases based on tax positions of the prior years | (665) | (670) |
Currency translation adjustments | (81) | |
Currency translation adjustments | 477 | |
Balance-end of year | $ 7,405 | $ 10,954 |
Note 13 - Commitments and Con_2
Note 13 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended |
Jan. 31, 2021 | Sep. 30, 2019 | |
Insurance Claims [Member] | ||
Loss Contingency Accrual, Provision | $ 1.6 | |
Audit Conducted by Alabama Department of Revenue [Member] | Subsequent Event [Member] | ||
Loss Contingency, Damages Sought, Value | $ 3.3 |
Note 14 - Operating Segments (D
Note 14 - Operating Segments (Details Textual) | 12 Months Ended |
Dec. 31, 2020 | |
Number of Reportable Segments | 3 |
Note 14 - Operating Segments -
Note 14 - Operating Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Total revenues | $ 167,007 | $ 304,714 | $ 285,299 | |
Adjusted EBITDA | 71,669 | 146,062 | 136,206 | |
Loss on disposition of long-lived assets | 2,399 | 1,068 | 1,963 | |
Impairment of long lived assets | 134 | 5,343 | 6,089 | |
Fair value adjustment of contingent consideration | 796 | 501 | 701 | |
Depreciation and amortization | 85,722 | 91,474 | 77,535 | |
Accretion of contract rights under development agreements and placement fees | [1] | 7,421 | 6,378 | 4,552 |
Non-cash stock compensation | 8,457 | 9,001 | 10,933 | |
Acquisitions and integration-related exploratory costs | 311 | |||
Acquisitions and integration related costs including restructuring and severance | 3,338 | 3,644 | ||
Initial public offering and secondary costs | 0 | 530 | 2,428 | |
Legal and litigation expenses including settlement payments | 1,830 | 1,844 | 992 | |
Non-cash charge on capitalized installation and delivery | 2,291 | 2,700 | 2,081 | |
Other adjustments | 6,477 | 148 | (2) | |
Interest expense | 41,935 | 36,248 | 37,607 | |
Interest income | (1,179) | (163) | (207) | |
Loss on extinguishment and modification of debt | 3,102 | 0 | 6,625 | |
Other expense (income) | 3,226 | 4,622 | 10,488 | |
Loss before income taxes | (91,253) | (16,970) | (29,223) | |
Electronic Gaming Machines, EGM [Member] | ||||
Total revenues | 151,789 | 289,642 | 271,025 | |
Adjusted EBITDA | 65,877 | 144,718 | 137,371 | |
Table Products [Member] | ||||
Total revenues | 7,969 | 10,194 | 7,651 | |
Adjusted EBITDA | 3,360 | 3,699 | 942 | |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | 7,249 | 4,878 | 6,623 | |
Adjusted EBITDA | $ 2,432 | $ (2,355) | $ (2,107) | |
[1] | Non-cash expense related to the accretion of contract rights under development agreements and placement fees. |
Note 14 - Operating Segments _2
Note 14 - Operating Segments - Geographic Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 167,007 | $ 304,714 | $ 285,299 |
Long-lived assets | 90,502 | 108,729 | 94,639 |
UNITED STATES | |||
Revenue | 151,187 | 258,691 | 255,256 |
Long-lived assets | 76,879 | 89,597 | 80,617 |
Non-US [Member] | |||
Revenue | 15,820 | 46,023 | 30,043 |
Long-lived assets | $ 13,623 | $ 19,132 | $ 14,022 |
Note 15 - Leases (Details Textu
Note 15 - Leases (Details Textual) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Lease, Right-of-use Asset, Accumulated Amortization | $ 2.7 | $ 1.5 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 1.3 | $ 0.7 |
Note 15 - Leases - Operating an
Note 15 - Leases - Operating and Finance Assets and Liability Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | ||
Operating leases | $ 9,763 | $ 11,543 | ||
Total leased assets, net | 11,063 | 13,358 | ||
Operating leases | 9,497 | 11,284 | ||
Total lease liability | 12,746 | 15,196 | ||
Operating lease assets [Member] | ||||
Operating leases | 9,763 | [1] | 11,543 | |
Property and Equipment, Net [Member] | ||||
Finance leases | [2] | 1,300 | 1,815 | |
Accrued Liabilities [Member] | ||||
Operating leases | 1,867 | 2,175 | ||
Current Maturities of Long-term Debt [Member] | ||||
Finance leases | 694 | 651 | ||
Operating Lease Liabilities, Long-term [Member] | ||||
Operating leases | 9,497 | 11,284 | ||
Long-term Debt [Member] | ||||
Finance leases | $ 688 | $ 1,086 | ||
[1] | Operating lease assets are recorded net of accumulated amortization of $2.7 million and $1.5 million as of December 31, 2020 and 2019, respectively | |||
[2] | Finance lease assets are recorded net of accumulated amortization of $1.3 million and $0.7 million as of December 31, 2020 and 2019, respectively. |
Note 15 - Leases - Lease Cost (
Note 15 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Operating lease cost | $ 2,449 | $ 2,390 | ||
Total Finance Lease cost: | 825 | 691 | ||
Total Lease Cost, ASC 840 | $ 502 | |||
Total Lease Cost | $ 3,274 | $ 3,081 | ||
Weighted average remaining lease term (years), operating lease (Year) | 6 years 6 months | 7 years | ||
Weighted average discount rate, operating lease | 5.90% | 5.90% | ||
Weighted average remaining lease term (years) (Year) | 1 year 8 months 12 days | 2 years 3 months 18 days | ||
Weighted average discount rate | 2.50% | 2.60% | ||
Operating cash flows from operating leases | $ 2,918 | $ 2,613 | ||
Operating cash flows from finance leases | 41 | 42 | ||
Operating cash flows from finance leases, ASC 840 | 23 | |||
Financing cash flows from finance leases | 691 | 630 | ||
Financing cash flows from finance leases, ASC 840 | 436 | |||
Selling, General and Administrative Expenses [Member] | ||||
Operating lease cost | 1,519 | 1,578 | ||
Research and Development Expense [Member] | ||||
Operating lease cost | 377 | 312 | ||
Cost of Gaming Operations [Member] | ||||
Operating lease cost | 553 | [1] | 500 | |
Depreciation and Amortization [Member] | ||||
Depreciation of leased assets | 784 | 649 | ||
Depreciation of leased assets, ASC 840 | 479 | |||
Interest Expense [Member] | ||||
Interest on lease liabilities | $ 41 | $ 42 | ||
Interest on lease liabilities, ASC 840 | $ 23 | |||
[1] | Subject to capitalization. |
Note 15 - Leases - Maturity of
Note 15 - Leases - Maturity of Operating and Financing Leases Liabilities (Details) $ in Thousands | Dec. 31, 2020USD ($) |
2021, operating leases | $ 2,502 |
2021, financing leases | 718 |
2021, operating and financing leases | 3,220 |
2022, operating leases | 2,008 |
2022, financing leases | 511 |
2022, operating and financing leases | 2,519 |
2023, operating leases | 1,845 |
2023, financing leases | 156 |
2023, operating and financing leases | 2,001 |
2024, operating leases | 1,808 |
2024, financing leases | 34 |
2024, operating and financing leases | 1,842 |
2025, operating leases | 1,791 |
2025, financing leases | 0 |
2025, operating and financing leases | 1,791 |
Thereafter, operating leases | 3,819 |
Thereafter, financing leases | 0 |
Thereafter, operating and financing leases | 3,819 |
Total lease payments, operating leases | 13,773 |
Total lease payments, financing leases | 1,419 |
Total lease payments, operating and financing leases | 15,192 |
Less: interest, operating leases | 2,409 |
Less: interest, financing leases | 37 |
Less: interest, operating and financing leases | 2,446 |
Present value of lease liabilities, financing leases | 1,382 |
Present value of lease liabilities, operating and financing leases | 12,746 |
Accrued liabilities and Operating Lease Liabilities, Long-term [Member] | |
Present value of lease liabilities, operating leases | $ 11,364 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Registrant (Details Textual) - USD ($) $ in Thousands | Jan. 30, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Total | $ 608,591 | $ 524,727 | ||
Write off of Deferred Debt Issuance Cost | $ 0 | $ 0 | $ 3,876 | |
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | 774 | |||
Common Stock, Shares, Issued, Total (in shares) | 36,494,002 | 35,534,558 | ||
Management [Member] | ||||
Common Stock, Shares, Issued, Total (in shares) | 170,712 | |||
Parent Company [Member] | ||||
Write off of Deferred Debt Issuance Cost | $ 0 | $ 0 | 3,037 | |
APIC, Share-based Payment Arrangement, Option, Increase for Cost Recognition | $ 8,500 | $ 9,000 | ||
Adjustments To Additional Paid In Capital Initial Public Offering | $ 4,800 | |||
Shares and Related Proceeds from IPO Reclassified from Other Long-term Liabilities to APIC | $ 1,300 | |||
Parent Company [Member] | Management [Member] | ||||
Common Stock, Shares, Issued, Total (in shares) | 170,712 | |||
Payment in Kind (PIK) Note [Member] | Parent Company [Member] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 11.25% | |||
Extinguishment of Debt, Amount | $ 152,600 | |||
Long-term Debt, Total | 115,000 | |||
Debt Instrument, Accrued Interest | 1,400 | |||
Write off of Deferred Debt Issuance Cost | $ 3,000 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents | $ 81,689 | $ 13,162 | $ 81,700 |
Prepaid expenses | 4,210 | 2,983 | |
Total current assets | 159,268 | 115,596 | |
Other long-term assets | 10,259 | 9,176 | |
Total assets | 740,778 | 762,378 | |
Total current liabilities | 42,903 | 56,476 | |
Total liabilities | 686,995 | 628,594 | |
Common stock | 364 | 355 | |
Additional paid-in capital | 379,917 | 371,311 | |
Retained earnings | (321,412) | (235,474) | |
Accumulated other comprehensive loss | (5,086) | (2,408) | |
Total stockholders’ equity | 53,783 | 133,784 | |
Total liabilities and stockholders’ equity | 740,778 | 762,378 | |
Parent Company [Member] | |||
Cash and cash equivalents | 474 | 282 | |
Intercompany Receivables | 8 | 8 | |
Prepaid expenses | 27 | 26 | |
Total current assets | 509 | 316 | |
Investment in subsidiaries | 54,681 | 134,811 | |
Other long-term assets | 8 | 8 | |
Total assets | 55,198 | 135,135 | |
Intercompany payables | 1,415 | 1,351 | |
Total current liabilities | 1,415 | 1,351 | |
Total liabilities | 1,415 | 1,351 | |
Common stock | 364 | 355 | |
Additional paid-in capital | 379,917 | 371,311 | |
Retained earnings | (321,412) | (235,474) | |
Accumulated other comprehensive loss | (5,086) | (2,408) | |
Total stockholders’ equity | 53,783 | 133,784 | |
Total liabilities and stockholders’ equity | $ 55,198 | $ 135,135 |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue | $ 167,007 | $ 304,714 | $ 285,299 |
Selling, general and administrative | 46,463 | 61,785 | 63,038 |
Total operating expenses | 211,176 | 280,977 | 260,009 |
Loss from operations | (44,169) | 23,737 | 25,290 |
Interest expense | 41,935 | 36,248 | 37,607 |
Loss on extinguishment and modification of debt | (3,102) | 0 | (6,625) |
Other (Expense) Income | (3,226) | (4,622) | (10,488) |
Income tax (expense) benefit | (5,875) | (5,449) | (8,377) |
Net loss attributable to PlayAGS, Inc. | (85,378) | (11,521) | (20,846) |
Foreign currency translation adjustment | (2,678) | 1,366 | 29 |
Total comprehensive loss | (88,056) | (10,386) | (20,817) |
Parent Company [Member] | |||
Intercompany revenue | 0 | 8 | 0 |
Revenue | 0 | 8 | 0 |
Selling, general and administrative | 24 | 25 | 30 |
Total operating expenses | 24 | 25 | 30 |
Loss from operations | (24) | (17) | (30) |
Equity in net loss of subsidiaries | (85,349) | (11,807) | 16,396 |
Interest expense | 0 | 0 | 1,383 |
Loss on extinguishment and modification of debt | 0 | 0 | 3,037 |
Other (Expense) Income | (5) | 72 | 0 |
Loss before income taxes | (85,378) | (11,752) | (20,846) |
Income tax (expense) benefit | 0 | 0 | 0 |
Net loss attributable to PlayAGS, Inc. | (85,378) | (11,752) | (20,846) |
Foreign currency translation adjustment | (2,678) | 1,366 | 29 |
Total comprehensive loss | $ (88,056) | $ (10,386) | $ (20,817) |
Schedule I - Condensed Financ_6
Schedule I - Condensed Financial Information of the Registrant - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net loss | $ (85,378) | $ (11,521) | $ (20,846) |
Amortization of deferred loan costs and discount | 85,722 | 91,474 | 77,535 |
Payment-in-kind interest payments | 0 | 0 | (37,624) |
Write off of Deferred Debt Issuance Cost | 0 | 0 | 3,876 |
Prepaid expenses | (1,264) | 715 | (895) |
Net cash provided by (used in) operating activities | 36,170 | 87,989 | 45,511 |
Net cash (used in) provided by investing activities | (39,283) | (127,932) | (70,114) |
Repurchase of stock | (560) | (1,320) | 0 |
Proceeds from issuance of common stock | 0 | 0 | 176,341 |
Proceeds from stock option exercise | 158 | 685 | 774 |
Net cash (used in) provided by financing activities | 71,643 | (17,683) | 76,066 |
(Decrease) increase in cash and cash equivalents | 68,527 | (57,622) | 51,462 |
Parent Company [Member] | |||
Net loss | (85,378) | (11,752) | (20,846) |
Amortization of deferred loan costs and discount | 0 | 0 | 0 |
Payment-in-kind interest payments | 0 | 0 | (37,624) |
Payment-in-kind interest capitalized | 0 | 0 | 0 |
Write off of Deferred Debt Issuance Cost | 0 | 0 | 3,037 |
Equity income from subsidiaries | 85,349 | 11,807 | 16,396 |
Prepaid expenses | (1) | 23 | 5 |
Intercompany payable/receivable | 64 | 570 | 365 |
Net cash provided by (used in) operating activities | 34 | 648 | (38,667) |
Investment in subsidiaries | 0 | (13,280) | (12,100) |
Distributions received from subsidiaries | 560 | 0 | 0 |
Net cash (used in) provided by investing activities | 560 | (13,280) | (12,100) |
Repayment of seller notes | 0 | 0 | 0 |
Repayment of senior secured credit facilities | 0 | 0 | (115,000) |
Proceeds from employees in advance of common stock issuance | 0 | 0 | 0 |
Repurchase of stock | (560) | (1,320) | 0 |
Proceeds from issuance of common stock | 0 | 0 | 176,341 |
Proceeds from stock option exercise | 158 | 685 | 774 |
Net cash (used in) provided by financing activities | (402) | (635) | 62,115 |
(Decrease) increase in cash and cash equivalents | 192 | (13,267) | 11,348 |
Cash and cash equivalents, beginning of period | 282 | 13,549 | 2,201 |
Cash and cash equivalents, end of period | $ 474 | $ 282 | $ 13,549 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Balance at the beginning of period | $ 41,004 | $ 40,857 | $ 33,774 |
Charged to tax expense/(benefit) | 13,924 | 50 | 6,814 |
Purchase accounting adjustments | 0 | 65 | 269 |
Impact of foreign currency exchange rate | 78 | 32 | 0 |
Balance at the end of period | $ 55,006 | $ 41,004 | $ 40,857 |