Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 06, 2023 | Jun. 30, 2022 | |
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 | 2022 | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
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 | 6775 S. Edmond St., Ste #300 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 146,103,692 | ||
Entity Common Stock, Shares Outstanding | 37,795,309 | ||
Auditor Firm ID | 238 | ||
Auditor Name | PricewaterhouseCoopers LLP | ||
Auditor Location | Las Vegas, Nevada |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 37,891 | $ 94,977 |
Restricted cash | 20 | 20 |
Accounts receivable, net of allowance of credit losses $1,974 and $1,993, respectively | 59,909 | 49,426 |
Inventories | 35,394 | 27,534 |
Prepaid expenses | 4,020 | 4,878 |
Deposits and other | 8,930 | 8,240 |
Total current assets | 146,164 | 185,075 |
Property and equipment, net | 82,361 | 74,916 |
Goodwill | 287,680 | 285,546 |
Intangible assets | 142,109 | 160,044 |
Deferred tax asset | 7,893 | 7,333 |
Operating lease assets | 11,198 | 12,503 |
Other assets | 7,346 | 7,394 |
Total assets | 684,751 | 732,811 |
Current liabilities | ||
Accounts payable | 15,244 | 9,439 |
Accrued liabilities | 37,262 | 39,165 |
Current maturities of long-term debt | 6,060 | 6,877 |
Total current liabilities | 58,566 | 55,481 |
Long-term debt | 550,081 | 599,281 |
Deferred tax liability, non-current | 2,048 | 2,653 |
Operating lease liabilities, long-term | 10,413 | 11,871 |
Other long-term liabilities | 14,282 | 21,954 |
Total liabilities | 635,390 | 691,240 |
Commitments and contingencies (Note 12) | ||
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, 2022 and 2021; 37,789,131 and 36,943,770 shares issued and outstanding at December 31, 2022 and 2021, respectively | 378 | 369 |
Additional paid-in capital | 406,436 | 392,161 |
Accumulated deficit | (353,125) | (344,889) |
Accumulated other comprehensive loss | (4,328) | (6,070) |
Total stockholders’ equity | 49,361 | 41,571 |
Total liabilities and stockholders’ equity | $ 684,751 | $ 732,811 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance | $ 1,974 | $ 1,993 |
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) | 37,789,131 | 36,943,770 |
Common stock, shares outstanding (in shares) | 37,789,131 | 36,943,770 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues | ||||
Total revenues | $ 309,436 | $ 259,696 | $ 167,007 | |
Operating expenses | ||||
Selling, general and administrative | 67,728 | 63,749 | 46,463 | |
Research and development | 39,628 | 36,308 | 26,786 | |
Write-downs and other charges | 1,923 | 2,791 | 3,329 | |
Depreciation and amortization | 75,516 | 73,938 | 85,722 | |
Total operating expenses | 271,467 | 239,993 | 211,176 | |
Income (Loss) from operations | 37,969 | 19,703 | (44,169) | |
Other expense (income) | ||||
Interest expense | 40,608 | 44,352 | 41,935 | |
Interest income | (1,059) | (1,064) | (1,179) | |
Loss on extinguishment and modification of debt | 8,549 | 0 | 3,102 | |
Other expense | 131 | 1,185 | 3,226 | |
Loss before income taxes | (10,260) | (24,770) | (91,253) | |
Income tax benefit | 2,225 | 2,198 | 5,875 | |
Net loss | (8,035) | (22,572) | (85,378) | |
Foreign currency translation adjustment | 1,742 | (984) | (2,678) | |
Total comprehensive loss | $ (6,293) | $ (23,556) | $ (88,056) | |
Basic and diluted loss per common share: | ||||
Basic (in dollars per share) | $ (0.22) | $ (0.62) | $ (2.40) | |
Diluted (in dollars per share) | $ (0.22) | $ (0.62) | $ (2.40) | |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 37,275 | 36,688 | 35,639 | |
Diluted (in shares) | 37,275 | 36,688 | 35,639 | |
Gaming Operations [Member] | ||||
Revenues | ||||
Total revenues | $ 223,802 | $ 205,627 | $ 129,150 | |
Operating expenses | ||||
Cost of goods and services | [1] | 42,200 | 38,945 | 32,087 |
Equipment Sales [Member] | ||||
Revenues | ||||
Total revenues | 85,634 | 54,069 | 37,857 | |
Operating expenses | ||||
Cost of goods and services | $ 44,472 | $ 24,262 | $ 16,789 | |
[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] | Total |
Balance (in shares) at Dec. 31, 2019 | 35,534,558 | ||||
Balance at Dec. 31, 2019 | $ 355 | $ 371,311 | $ (235,474) | $ (2,408) | $ 133,784 |
Net loss | 0 | 0 | (85,378) | 0 | (85,378) |
Foreign currency translation adjustment | 0 | 0 | 0 | (2,678) | (2,678) |
Stock-based compensation expense | $ 0 | 8,457 | 0 | 0 | 8,457 |
Vesting of restricted stock (in shares) | 1,034,699 | ||||
Vesting of restricted stock | $ 9 | (9) | 0 | 0 | 0 |
Stock option exercises (in shares) | 15,544 | ||||
Stock option exercises | $ 0 | 158 | 0 | 0 | 158 |
Repurchase of common stock (in shares) | (90,799) | ||||
Repurchase of common stock | $ 0 | 0 | (560) | 0 | (560) |
Balance (in shares) at Dec. 31, 2020 | 36,494,002 | ||||
Balance at Dec. 31, 2020 | $ 364 | 379,917 | (321,412) | (5,086) | 53,783 |
Net loss | 0 | 0 | (22,572) | 0 | (22,572) |
Foreign currency translation adjustment | 0 | 0 | 0 | (984) | (984) |
Stock-based compensation expense | $ 0 | 0 | 0 | 0 | 0 |
Vesting of restricted stock (in shares) | 0 | ||||
Vesting of restricted stock | $ 0 | 12,250 | 0 | 0 | 12,250 |
Stock option exercises (in shares) | 574,954 | ||||
Stock option exercises | $ 6 | (6) | 0 | 0 | 0 |
Repurchase of common stock (in shares) | (125,186) | ||||
Repurchase of common stock | $ (1) | 0 | (905) | 0 | $ (906) |
Balance (in shares) at Dec. 31, 2021 | 36,943,770 | 36,943,770 | |||
Balance at Dec. 31, 2021 | $ 369 | 392,161 | (344,889) | (6,070) | $ 41,571 |
Net loss | 0 | 0 | (8,035) | 0 | (8,035) |
Foreign currency translation adjustment | 0 | 0 | 0 | 1,742 | 1,742 |
Stock-based compensation expense | $ 0 | 11,893 | 0 | 0 | 11,893 |
Vesting of restricted stock (in shares) | 876,265 | ||||
Vesting of restricted stock | $ 9 | (9) | 0 | 0 | $ 0 |
Stock option exercises (in shares) | 0 | ||||
Repurchase of common stock (in shares) | (30,904) | ||||
Repurchase of common stock | $ 0 | 0 | (201) | 0 | $ (201) |
Modification of liability awards to equity | $ 0 | 2,391 | 0 | 0 | $ 2,391 |
Balance (in shares) at Dec. 31, 2022 | 37,789,131 | 37,789,131 | |||
Balance at Dec. 31, 2022 | $ 378 | $ 406,436 | $ (353,125) | $ (4,328) | $ 49,361 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net loss | $ (8,035) | $ (22,572) | $ (85,378) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 75,516 | 73,938 | 85,722 |
Accretion of contract rights under development agreements and placement fees | 6,345 | 6,516 | 7,421 |
Amortization of deferred loan costs and discount | 2,803 | 4,677 | 3,656 |
Writeoff of deferred loan cost and discount | 1,586 | 0 | 0 |
Cash paid for debt prepayment penalties to prior debt holders | 848 | 0 | 0 |
Stock-based compensation expense | 11,893 | 14,643 | 8,457 |
Provision for bad debts | 465 | 235 | 2,694 |
Loss on disposition of long-lived assets | 427 | 590 | 2,399 |
Impairment of assets | 30 | 2,257 | 134 |
Fair value adjustment of contingent consideration | 1,466 | (56) | 796 |
Benefit from deferred income tax | (829) | (175) | (1,671) |
Changes in assets and liabilities related to operations: | |||
Accounts receivable | (10,534) | (8,133) | 16,469 |
Inventories | (6,252) | 1,577 | 10,099 |
Prepaid expenses | 450 | (1,332) | (1,264) |
Deposits and other | (436) | (3,516) | 517 |
Other assets, non-current | 806 | 3,789 | 3,367 |
Accounts payable and accrued liabilities | 1,160 | 5,894 | (17,248) |
Net cash provided by operating activities | 77,709 | 78,332 | 36,170 |
Cash flows from investing activities | |||
Issuance of customer notes receivable | 0 | 0 | (4,690) |
Proceeds from payments on customer notes receivable | 1,867 | 1,362 | 1,087 |
Business acquisitions, net of cash acquired | (4,750) | 0 | 0 |
Purchase of intangible assets | 0 | 0 | (1,756) |
Software development and other expenditures | (21,127) | (15,432) | (11,017) |
Proceeds from disposition of assets | 33 | 35 | 32 |
Purchases of property and equipment | (48,111) | (36,102) | (22,939) |
Net cash used in investing activities | (72,088) | (50,137) | (39,283) |
Cash flows from financing activities | |||
Repayment of long-term debt | (521,215) | (5,387) | (5,387) |
Repayment of revolver | 0 | 0 | (30,000) |
Payment of financed placement fee obligations | (5,253) | (4,959) | (6,933) |
Proceeds from term loans | 569,250 | 0 | 0 |
Borrowing on revolver | 0 | 0 | 30,000 |
Payment of deferred loan costs | (4,838) | (848) | (5,744) |
Payment of debt prepayment penalties to prior debt holders | (848) | 0 | 0 |
Payment of previous acquisition obligation | (514) | (534) | (381) |
Payments on finance leases and other obligations | (1,213) | (1,321) | (1,185) |
Proceeds from stock option exercise | 0 | 0 | 158 |
Repurchase of stock | (201) | (906) | (560) |
Net cash (used in) provided by financing activities | (62,720) | (14,905) | 71,643 |
Effect of exchange rates on cash, cash equivalents and restricted cash | 13 | (2) | (3) |
Net decrease (increase) in cash, cash equivalents and restricted cash | (57,086) | 13,288 | 68,527 |
Cash, cash equivalents and restricted cash, beginning of period | 94,997 | 81,709 | 13,182 |
Cash, cash equivalents and restricted cash, end of period | 37,911 | 94,997 | 81,709 |
Supplemental cash flow information: | |||
Cash paid during the period for interest | 37,208 | 39,268 | 37,749 |
Cash paid during the period for taxes | 814 | 544 | 423 |
Non-cash investing and financing activities: | |||
Leased assets obtained in exchange for new finance lease liabilities | 476 | 317 | 425 |
Leased assets obtained in exchange for new operating lease liabilities | 956 | 4,686 | 84 |
First Lien Credit Facilities [Member] | |||
Cash flows from financing activities | |||
Repayment of long-term debt | (4,313) | 0 | 0 |
Incremental Term Loans [Member] | |||
Cash flows from financing activities | |||
Repayment of long-term debt | (93,575) | (950) | (475) |
Proceeds from term loans | $ 0 | $ 0 | $ 92,150 |
Note 1 - Description of the Bus
Note 1 - Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 Pax S Electronic Gaming Machines Our EGM segment offers a library of proprietary video slot titles developed for the global marketplace, and EGM cabinets which include our premium lease-only cabinets of Orion Starwall Orion Curve Premium Big Red Orion Portrait Orion Slant Orion Curve Orion Upright ICON 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 Interactive We operate a Business-to-Business ( "B2B" 1,000 third AGS also offers Business-to-Consumer ( “B2C” B2C may may 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, 2022 2021 2020 EGM Gaming operations $ 199,274 $ 184,050 $ 114,548 Equipment sales 85,057 53,759 37,241 Total $ 284,331 $ 237,809 $ 151,789 Table Products Gaming operations $ 14,343 $ 11,569 $ 7,353 Equipment sales 577 310 616 Total $ 14,920 $ 11,879 $ 7,969 Interactive Gaming operations (1) $ 10,185 $ 10,008 $ 7,249 Total $ 10,185 $ 10,008 $ 7,249 ( 1 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 and maintenance of gaming equipment content and licensing of table product content. It is earned and recognized primarily on a daily and monthly fixed rate, respectively. 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, 2022 2021 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 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 provides financial information concerning the change in our allowance for credit losses (in thousands): Allowance for Credit Losses, Year ended December 31, 2022 2021 2020 Beginning Balance $ 1,993 $ 2,077 $ 723 Charge-offs (484 ) (319 ) (1,340 ) Provision 465 235 2,694 Ending Balance $ 1,974 $ 1,993 $ 2,077 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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 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) 1 to 5 Other property and equipment (in years) 3 to 5 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 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, 2022 2021 December 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 571,375 $ 539,987 $ 615,743 $ 613,706 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. Our policy is to account for global intangible low-taxed income as a period cost if and when incurred. 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, 2022 2021 not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma, Washington and Texas. For the year ended December 31, 2022 no 10% one December 31, 2021 2020 one December 31, 2022 2021 2020 As of December 31, 2022 December 31, 2021, no 10% December 31, 2022 19 December 31, 2022 . 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 total comprehensive loss in stockholders’ equity. Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2022 2021 2020 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. Recently Issued Accounting Pronouncements In March 2022, No. 2022 02, Financial Instruments - Credit Losses (Topic 326 No. 2022 02 310 40 No. 2022 02 December 15, 2022, not We have not not |
Note 2 - Property and Equipment
Note 2 - Property and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 2. Property and equipment, net consist of the following (in thousands): December 31, 2022 December 31, 2021 Gaming equipment $ 232,244 $ 196,748 Other property and equipment 22,922 23,973 Less: Accumulated depreciation (172,805 ) (145,805 ) Total property and equipment, net $ 82,361 $ 74,916 Gaming equipment and other property and equipment are depreciated over the respective useful lives of the assets ranging from one five December 31, 2022 2021 2020 |
Note 3 - Goodwill and Intangibl
Note 3 - Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 3. Changes in the carrying amount of goodwill are as follows (in thousands): Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2020 $ 278,221 $ 7,821 $ - $ 286,042 Foreign currency adjustments (496 ) - - (496 ) Balance at December 31, 2021 $ 277,725 $ 7,821 $ - $ 285,546 Foreign currency adjustments 904 - - 904 Acquisition - 1,230 - 1,230 Balance at December 31, 2022 $ 278,629 $ 9,051 $ - $ 287,680 ( 1 December 31, 2022 The Company tests for possible impairment of indefinite lived intangible assets at least annually, on October 1. October 1, 2022 October 1, 2021 not not 2020 no Intangible assets consist of the following (in thousands): December 31, 2022 December 31, 2021 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 14,990 (14,722 ) 268 14,870 (14,495 ) 375 Customer relationships 5 - 12 219,146 (167,629 ) 51,517 218,247 (155,140 ) 63,107 Contract rights under development and placement fees 1 - 7 42,395 (23,844 ) 18,551 42,535 (17,639 ) 24,896 Gaming software and technology platforms 1 - 7 198,666 (147,437 ) 51,229 177,686 (126,182 ) 51,504 Intellectual property 10 - 12 21,845 (13,427 ) 8,418 19,345 (11,309 ) 8,036 Total intangible assets $ 509,168 $ (367,059 ) $ 142,109 $ 484,809 $ (324,765 ) $ 160,044 Intangible assets are amortized over their respective estimated useful lives ranging from one twelve December 31, 2022 2021 2020 Management reviews intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not December 31, 2022 December 31, 2021 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, 2022 2021 2020 In March 2019, 2019, four December 31, 2022 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 years ended December 31, Amortization Expense Placement Fee Accretion 2023 $ 35,521 $ 6,182 2024 30,903 5,941 2025 22,573 5,721 2026 11,169 707 2027 6,453 — Thereafter 4,813 — Total $ 111,432 $ 18,551 |
Note 4 - Accrued Liabilities
Note 4 - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. Accrued liabilities consist of the following (in thousands): December 31, 2022 2021 Salary and payroll tax accrual $ 13,255 $ 16,994 Taxes payable 2,903 4,016 Current portion of operating lease liability 2,287 2,137 License fee obligation 1,000 1,000 Placement fees payable 6,314 6,314 Accrued other 11,503 8,704 Total accrued liabilities $ 37,262 $ 39,165 |
Note 5 - Long-term Debt
Note 5 - Long-term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Long-Term Debt [Text Block] | NOTE 5. Long-term debt consists of the following (in thousands): December 31, 2022 2021 First Lien Credit Facilities: Term loans, interest at SOFR, subject to a 0.75 4.0 8.7 15.2 $ 555,453 $ - Term loans, interest at LIBOR or base rate plus 3.5 4.5 4.0 - 517,247 Incremental term loans, interest at LIBOR or base rate plus 13.0 14.0 5.6 - 87,958 Finance Leases 688 953 Total debt 556,141 606,158 Less: Current portion (6,060 ) (6,877 ) Long-term debt $ 550,081 $ 599,281 First Lien Credit Facilities On February 15, 2022, The Borrower is a direct subsidiary of AP Gaming Holdings, LLC, which is a direct subsidiary of AP Gaming, Inc., which is a direct subsidiary of PlayAGS, Inc. These entities between the Borrower and PlayAGS, Inc. are holding companies with no The Amended Credit Agreement provides (i) a senior secured first first Borrowings under the Amended Credit Agreement bear interest at a per annum rate equal to, at the Borrower’s election, either (a) an adjusted term Secured Overnight Financing Rate ("SOFR") for the interest period in effect, subject to a floor of (i) in the case of term loan borrowings, 0.75% one The New Term Loan Facility will mature on February 15, 2029 June 30, 2022, February 15, 2027. may August 15, 2022 June 30, 2022, first 1.00 An additional $17.6 million in loan costs including original issue discount, lender fees, third As of December 31, 2022 no Finance Leases The Company has entered into leases for vehicles and equipment that are accounted for as finance leases, as described in Note 14. 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, 2022 For the year ending December 31, 2023 $ 6,060 2024 5,921 2025 5,843 2026 5,864 2027 5,750 Thereafter 541,938 Total scheduled maturities 571,376 Unamortized debt discount and debt issuance costs (15,235 ) Total debt $ 556,141 |
Note 6 - Stockholders' Equity
Note 6 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 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, 2022 Common Stock Voting Rights The holders of our common stock are entitled to one not Dividend and Distribution Rights All shares of our common stock are entitled to share equally in any dividends and distributions our board of directors may Share Repurchase Program During 2019, August 11, 2023. December 31, 2022 $50.0 |
Note 7 - Write-downs and Other
Note 7 - Write-downs and Other Charges | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Asset Impairment Charges [Text Block] | NOTE 7. 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, 2022 $1.5 $1.2 January 1, 2022. not not no During the year ended December 31, 2022, 3 During the year ended December 31, 2021 3 no 3 During the year ended December 31, 2020, 3 |
Note 8 - Basic and Diluted Loss
Note 8 - Basic and Diluted Loss Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE 8. The Company computes net loss 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 Statements of Operations and Comprehensive Loss. Basic EPS is computed by dividing net loss 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 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 (Note 10. There were no potentially dilutive securities for the years ended December 31, 2022 2021 2020 Excluded from the calculation of diluted EPS for the years ended December 31, 2022 2021 2020 December 31, 2022 2021 not not December 31, 2022 2021 2020 |
Note 9 - Benefit Plans
Note 9 - Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | NOTE 9. The Company has established a 401 “401 401 may April 2020 , 401 January 2021. 401 December 31, 2022 2021 2020 On April 28, 2014, 2014 ten may December 31, 2022 not On January 16, 2018, 2018 may May 8, 2020, 2018 2020 July 1, 2020 2020 On April 28, 2022, 2018 2020 “2022 July 1, 2022 2022 2022 2022 December 31, 2022, |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Share-Based Payment Arrangement [Text Block] | NOTE 10. 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, 2022 We recognize stock-based compensation on a straight-line basis over the vesting period for time based awards and we recognize the expense for awards with market conditions over the service period derived from the related valuation. As of December 31, 2022 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 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, 2022 2021 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, 2022 Number of Options Weighted Average Exercise Price Weighted Average Remaining Contract Term (years) Aggregate Intrinsic Value (in thousands) Options outstanding as of December 31, 2021 1,244,073 $ 9.14 3.4 $ 193 Granted - - - - Exercised - - - - Canceled or forfeited (81,985 ) $ 10.51 - - Options outstanding as of December 31, 2022 1,162,088 $ 9.05 2.4 $ - Exercisable as of December 31, 2022 1,162,088 $ 9.05 2.4 $ - 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, 2022 Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2021 1,934,876 $8.25 Granted 283,229 $5.99 Vested (503,374 ) $10.26 Canceled or forfeited (45,307 ) $8.85 Outstanding as of December 31, 2022 1,669,424 $7.24 Phantom Stock Units Phantom stock units are typically eligible to vest in equal installments of 25% on each of the first four 12 December 31, 2022 may Certain phantom 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 phantom stock outstanding during the year ended December 31, 2022 Shares Outstanding Grant Date Fair Value (per share) Phantom Stock Outstanding as of December 31, 2021 2,253,400 $ 6.47 Granted 881,098 $ 4.88 Vested (423,197 ) $ 6.24 Canceled or forfeited (91,693 ) $ 6.40 Phantom Stock Outstanding as of December 31, 2022 2,619,608 $ 5.98 |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE 11. The components of loss before provision for income taxes are as follows (in thousands): Year ended December 31, 2022 2021 2020 Domestic $ (12,820 ) $ (21,235 ) $ (80,939 ) Foreign 2,560 (3,535 ) (10,314 ) Loss before provision for income taxes $ (10,260 ) $ (24,770 ) $ (91,253 ) The income tax (benefit) expense is as follows (in thousands): Year ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ (1,495 ) State 569 139 262 Foreign (1,957 ) (1,966 ) (3,012 ) Total current income tax (benefit) expense (1,388 ) (1,827 ) (4,245 ) Deferred: Federal (482 ) 342 365 State (123 ) 57 53 Foreign (232 ) (770 ) (2,048 ) Total deferred income (benefit) expense (837 ) (371 ) (1,630 ) Income tax (benefit) expense $ (2,225 ) $ (2,198 ) $ (5,875 ) 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, 2022 2021 2020 Federal statutory rate (21.0 )% (21.0 )% (21.0 )% Foreign rate differential 1.5 % (0.1 )% (0.9 )% State income taxes, net of federal benefit 6.9 % (3.5 )% (2.9 )% U.S. tax on foreign income, net of foreign tax credits 29.2 % 0.6 % 2.8 % Tax indemnification charges — % 1.0 % 1.0 % Stock compensation 4.0 % 1.4 % 1.0 % Other differences 5.4 % 0.1 % 0.6 % Withholding tax 4.3 % 1.2 % 0.2 % Rate changes (3.0 )% (6.4 )% — % Research tax credits (15.5 )% (5.8 )% 0.3 % Uncertain tax positions (16.5 )% (5.8 )% (2.8 )% Valuation allowance (17.0 )% 29.4 % 15.3 % Effective tax rate (21.7 )% (8.9 )% (6.4 )% The components of the net deferred tax assets (liability) consist of the following (in thousands): December 31, 2022 2021 Deferred tax assets: Accrued expenses $ 2,934 $ 4,433 Stock compensation 5,590 4,657 Foreign tax credits 7,660 9,429 Net operating loss carryforwards 32,982 42,433 Research and experimentation 14,568 6,848 Debt 26,057 21,239 Other 2,580 3,102 Total deferred tax assets 92,371 92,141 Valuation allowance (60,114 ) (62,233 ) Deferred tax assets, net of valuation allowance $ 32,257 $ 29,908 Deferred tax liabilities: Prepaid expenses and other $ (714 ) $ (519 ) Intangible assets, net (14,180 ) (15,481 ) Property and equipment, net (11,520 ) (9,228 ) Deferred tax liabilities (26,414 ) (25,228 ) Net deferred tax assets (liabilities) $ 5,843 $ 4,680 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, 2022 December 31, 2022 not no As of December 31, 2022 2023 2032. 2029. not The Company has net operating loss (“NOL”) carryforwards for U.S. federal purposes of $129.7 million, in foreign jurisdictions of $13.7 million and various U.S. states of $74.6 million. The U.S. federal NOL carryforwards begin to expire in 2034, 2023, 2031 not not Utilization of the net operating loss carryforwards and credits may 1986, may 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 2022 2021 December 31, 2022 December 31, 2021 Balance-beginning of year $ 6,519 $ 7,405 Increases based on tax positions of the current year 480 520 Decreases due to lapse of statute (1,287 ) (1,434 ) Increases based on tax positions of the prior years — 77 Currency translation adjustments 40 (49 ) Balance-end of year $ 5,752 $ 6,519 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, 2022 December 31, 2023 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 $1.2 million during 2022. December 31, 2022 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 2022 2017 2022 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 was recorded as an other asset in the financial statements for the year ended December 31, 2020. 2021 zero |
Note 12 - Commitments and Conti
Note 12 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 12. 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. 10 20 1934 2019 August 7, 2019. On August 4, 2020, third first two May 3, 2018). 50% 10 20 2019 11, 12 2 15 1933, August 2018 March 2019 On October 28, 2020, three January 11, 2021, 10 20 May 3, 2018 March 4, 2020), 11, 12 2 15 August 7, 2019, November 7, 2019, March 4, 2020. 303 105 not On February 23, 2021, March 25, 2021 January 26, 2018. May 24, 2021, December 2, 2022, 10 not On January 17, 2023, December 2, 2022 no On March 18, 2022, 10 21D June 9, 2022, January 27, 2023, no At this time, we are unable to estimate the probability or the amount of liability, if any, related to this matter. In January 2021, May 2016 August 2019. We believe that we were not 2023. We have not not not may may August 2019. May 2016 August 2019, December 31, 2022 not no not |
Note 13 - Operating Segments
Note 13 - Operating Segments | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 13. 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. 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: • Write-downs and other include items related to loss on disposal or impairment of long-lived assets and fair value adjustments to contingent consideration; • Depreciation, amortization; • Loss on extinguishment and modification of debt primarily relates to the refinancing of long-term debt, in which deferred loan costs and discounts related to old senior secured credit facilities were written-off; • Other adjustments, which are primarily composed of: • Costs and inventory and receivable valuation charges associated with the COVID- 19 • Acquisition and integration-related costs related to the purchase of businesses and to integrate operations and obtain costs synergies; • Restructuring and severance costs, which primarily relate to costs incurred through the restructuring of the Company’s operations from time to time and other employee severance costs recognized in the periods presented; • Legal and litigation related costs, which consist of payments to law firms and settlements for matters that are outside the normal course of business; • Other non-cash charges are costs related to non-cash charges and losses on the disposition of assets, non-cash charges on capitalized installation and delivery, which primarily includes the costs to acquire contracts that are expensed over the estimated life of each contract and non-cash charges related to accretion of contract rights under development agreements; and • Non-cash stock-based compensation includes non-cash compensation expense related to grants of options, restricted stock, and other equity awards. Revenues in each segment are attributable to 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, 2022 2021 2020 2022 2021 2020 Revenues by segment EGM $ 284,331 $ 237,809 $ 151,789 Table Products 14,920 11,879 7,969 Interactive 10,185 10,008 7,249 Total Revenues 309,436 259,696 167,007 Adjusted EBITDA by segment EGM 127,502 112,817 65,877 Table Products 8,781 6,438 3,360 Interactive 2,360 3,332 2,432 Subtotal 138,643 122,587 71,669 Write-downs and other: Loss on disposal of long lived assets 427 590 2,399 Impairment of long lived assets 30 2,257 134 Fair value adjustments to contingent consideration and other items 1,466 (56 ) 796 Depreciation and amortization 75,516 73,938 85,722 Interest expense, net of interest income and other 39,680 44,473 43,982 Loss on extinguishment and modification of debt 8,549 — 3,102 Other adjustments 2,225 3,119 8,618 Other non-cash charges 9,117 8,393 9,712 Non-cash stock compensation 11,893 14,643 8,457 Loss before income taxes $ (10,260 ) $ (24,770 ) $ (91,253 ) 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, 2022 2021 2020 Year ended December 31, Revenue: 2022 2021 2020 United States $ 272,473 $ 237,396 $ 151,187 Other 36,963 22,300 15,820 Total Revenue $ 309,436 $ 259,696 $ 167,007 Year ended December 31, Long-lived assets: 2022 2021 2020 United States $ 79,137 $ 72,904 $ 76,879 Other 10,570 9,406 13,623 Total long-lived assets $ 89,707 $ 82,310 $ 90,502 |
Note 14 - Leases
Note 14 - Leases | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Lessee, Operating and Finance Leases [Text Block] | NOTE 14. 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 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, 2022 2021 not one The following table discloses the operating and finance assets and liability balances recorded under ASC 842 December 31, 2022 December 31, 2021 As of December 31, 2022 As of December 31, 2021 Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 11,198 $ 12,503 Finance leases Property and equipment, net(b) 597 760 Total leased assets, net $ 11,795 $ 13,263 Liabilities Current: Operating leases Accrued liabilities $ 2,287 $ 2,137 Finance leases Current maturities of long-term debt 322 540 Non-current: Operating leases Operating lease liabilities, long-term 10,413 11,871 Finance leases Long-term debt 366 413 Total lease liability $ 13,388 $ 14,961 (a) December 31, 2022 2021 (b) December 31, 2022 2021 The table below discloses the costs for operating and finance leases for the years ended December 31, 2022 2021 2020 Year Ended December 31, 2022 2021 2020 Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 2,411 $ 2,108 $ 1,519 Operating lease cost - R&D Research and development - - 377 Operating lease cost - warehouses Cost of gaming operations (c) 546 546 553 Total Operating Lease cost: $ 2,957 $ 2,654 $ 2,449 Finance lease cost Depreciation of leased assets Depreciation and amortization $ 435 $ 744 $ 784 Interest on lease liabilities Interest expense 18 29 41 Total Finance Lease cost: 453 773 825 Total Lease Cost $ 3,410 $ 3,427 $ 3,274 (c) Subject to capitalization. PLAYAGS, INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) 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) 2023 $ 2,914 $ 322 $ 3,236 2024 2,900 178 3,078 2025 2,916 97 3,013 2026 2,996 114 3,110 2027 2,341 - 2,341 Thereafter 449 - 449 Total lease payments $ 14,516 $ 711 $ 15,227 Less: interest 1,816 23 1,839 Present value of lease liabilities $ 12,700 $ 688 $ 13,388 The following table sets forth the weighted average of the lease terms and discount rates for operating and finance leases as of December 31, 2022 2021 As of December 31, 2022 As of December 31, 2021 Lease term and discount rate Operating Weighted average remaining lease term (years) 4.9 5.8 Weighted average discount rate 5.4 % 5.4 % Finance Leases Weighted average remaining lease term (years) 2.0 1.2 Weighted average discount rate 2.4 % 2.2 % Other Information The table below discloses cash paid for the amounts included in the measurement of lease liabilities for the years ended December 31, 2022 2021 2020 Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,954 $ 2,747 $ 2,918 Operating cash flows from finance leases $ 18 $ 29 $ 41 Financing cash flows from finance leases $ 422 $ 604 $ 691 |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 15. None. |
Note 16 - Acquisitions
Note 16 - Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | NOTE 16. On January 3, 2022, Our results of operations for the year ended December 31 , 2022 not not not not |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of the Registrant | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 Assets Current assets Cash and cash equivalents $ 4,171 $ 2,931 Intercompany Receivables 8 7 Prepaid expenses 44 32 Total current assets 4,223 2,970 Investment in subsidiaries 50,262 42,454 Other long-term assets - 8 Total assets $ 54,485 $ 45,432 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 5,124 $ 3,861 Total current liabilities 5,124 3,861 Total liabilities 5,124 3,861 Stockholders’ equity: Common stock 378 369 Additional paid-in capital 406,436 392,161 Retained earnings (353,125 ) (344,889 ) Accumulated other comprehensive loss (4,328 ) (6,070 ) Total stockholders’ equity 49,361 41,571 Total liabilities and stockholders’ equity $ 54,485 $ 45,432 PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF OPERATIONS (in thousands) Year ended December 31, 2022 2021 2020 Revenue Intercompany revenue $ - $ - $ - Total Revenue - - — Operating expenses Selling, general and administrative 18 (15 ) 24 Total operating expenses 18 (15 ) 24 Loss from operations (18 ) 15 (24 ) Other expense (income) Equity in net loss of subsidiaries (8,017 ) (22,587 ) (85,349 ) Other (Expense) Income - — (5 ) Loss before income taxes (8,035 ) (22,572 ) (85,378 ) Income tax (expense) benefit - - - Net loss (8,035 ) (22,572 ) (85,378 ) Foreign currency translation adjustment 1,742 (984 ) (2,678 ) Total comprehensive loss $ (6,293 ) $ (23,556 ) $ (88,056 ) PLAYAGS, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS (in thousands, except per share data) Year ended December 31, 2022 2021 2020 Cash flows from operating activities Net loss $ (8,035 ) $ (22,572 ) $ (85,378 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity income from subsidiaries 8,017 22,587 85,349 Changes in assets and liabilities that relate to operations: Prepaid expenses (12 ) — — Intercompany payable/receivable 1,262 2,447 64 Deposits and other assets LT 8 (5 ) (1 ) Net cash provided by (used in) operating activities 1,240 2,457 34 Cash flows from investing activities Distributions received from subsidiaries 201 906 560 Net cash provided by (used in) investing activities 201 906 560 Cash flows from financing activities Repurchase of shares (201 ) (906 ) (560 ) Proceeds from stock option exercise - — 158 Net cash (used in) provided by financing activities (201 ) (906 ) (402 ) Increase (decrease) in cash and cash equivalents 1,240 2,457 192 Cash and cash equivalents, beginning of period 2,931 474 282 Cash and cash equivalents, end of period $ 4,171 $ 2,931 $ 474 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. NOTE 3 The Parent Company charged $11.9 million and $14.6 million of stock-based compensation to additional paid-in capital during the years ended December 31, 2022 2021 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 $ 62,233 $ (1,740 ) $ - $ (379 ) $ 60,114 Year ended December 31, 2021 $ 55,006 $ 7,270 $ - $ (43 ) $ 62,233 Year ended December 31, 2020 $ 41,004 $ 13,924 $ - $ 78 $ 55,006 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 EGM Gaming operations $ 199,274 $ 184,050 $ 114,548 Equipment sales 85,057 53,759 37,241 Total $ 284,331 $ 237,809 $ 151,789 Table Products Gaming operations $ 14,343 $ 11,569 $ 7,353 Equipment sales 577 310 616 Total $ 14,920 $ 11,879 $ 7,969 Interactive Gaming operations (1) $ 10,185 $ 10,008 $ 7,249 Total $ 10,185 $ 10,008 $ 7,249 ( 1 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 and maintenance of gaming equipment content and licensing of table product content. It is earned and recognized primarily on a daily and monthly fixed rate, respectively. 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, 2022 2021 |
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 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 provides financial information concerning the change in our allowance for credit losses (in thousands): Allowance for Credit Losses, Year ended December 31, 2022 2021 2020 Beginning Balance $ 1,993 $ 2,077 $ 723 Charge-offs (484 ) (319 ) (1,340 ) Provision 465 235 2,694 Ending Balance $ 1,974 $ 1,993 $ 2,077 |
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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 |
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) 1 to 5 Other property and equipment (in years) 3 to 5 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 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, 2022 2021 December 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 571,375 $ 539,987 $ 615,743 $ 613,706 |
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. Our policy is to account for global intangible low-taxed income as a period cost if and when incurred. 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, 2022 2021 not Revenue from gaming operations is concentrated in the Class II gaming and casino industry, primarily located in Oklahoma, Washington and Texas. For the year ended December 31, 2022 no 10% one December 31, 2021 2020 one December 31, 2022 2021 2020 As of December 31, 2022 December 31, 2021, no 10% December 31, 2022 19 December 31, 2022 . |
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 total comprehensive loss in stockholders’ equity. |
Advertising Cost [Policy Text Block] | Advertising Costs Advertising costs are expensed as incurred. Advertising costs for the years ended December 31, 2022 2021 2020 |
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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In March 2022, No. 2022 02, Financial Instruments - Credit Losses (Topic 326 No. 2022 02 310 40 No. 2022 02 December 15, 2022, not We have not 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, 2022 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Year ended December 31, 2022 2021 2020 EGM Gaming operations $ 199,274 $ 184,050 $ 114,548 Equipment sales 85,057 53,759 37,241 Total $ 284,331 $ 237,809 $ 151,789 Table Products Gaming operations $ 14,343 $ 11,569 $ 7,353 Equipment sales 577 310 616 Total $ 14,920 $ 11,879 $ 7,969 Interactive Gaming operations (1) $ 10,185 $ 10,008 $ 7,249 Total $ 10,185 $ 10,008 $ 7,249 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Allowance for Credit Losses, Year ended December 31, 2022 2021 2020 Beginning Balance $ 1,993 $ 2,077 $ 723 Charge-offs (484 ) (319 ) (1,340 ) Provision 465 235 2,694 Ending Balance $ 1,974 $ 1,993 $ 2,077 |
Property, Plant and Equipment, Useful Life [Table Text Block] | Gaming equipment (in years) 1 to 5 Other property and equipment (in years) 3 to 5 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis [Table Text Block] | December 31, 2022 December 31, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Long-term Debt $ 571,375 $ 539,987 $ 615,743 $ 613,706 |
Note 2 - Property and Equipme_2
Note 2 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2022 December 31, 2021 Gaming equipment $ 232,244 $ 196,748 Other property and equipment 22,922 23,973 Less: Accumulated depreciation (172,805 ) (145,805 ) Total property and equipment, net $ 82,361 $ 74,916 |
Note 3 - Goodwill and Intangi_2
Note 3 - Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Goodwill [Table Text Block] | Carrying Amount EGM Table Products Interactive(1) Total Balance at December 31, 2020 $ 278,221 $ 7,821 $ - $ 286,042 Foreign currency adjustments (496 ) - - (496 ) Balance at December 31, 2021 $ 277,725 $ 7,821 $ - $ 285,546 Foreign currency adjustments 904 - - 904 Acquisition - 1,230 - 1,230 Balance at December 31, 2022 $ 278,629 $ 9,051 $ - $ 287,680 |
Schedule of Intangible Assets and Goodwill [Table Text Block] | December 31, 2022 December 31, 2021 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 14,990 (14,722 ) 268 14,870 (14,495 ) 375 Customer relationships 5 - 12 219,146 (167,629 ) 51,517 218,247 (155,140 ) 63,107 Contract rights under development and placement fees 1 - 7 42,395 (23,844 ) 18,551 42,535 (17,639 ) 24,896 Gaming software and technology platforms 1 - 7 198,666 (147,437 ) 51,229 177,686 (126,182 ) 51,504 Intellectual property 10 - 12 21,845 (13,427 ) 8,418 19,345 (11,309 ) 8,036 Total intangible assets $ 509,168 $ (367,059 ) $ 142,109 $ 484,809 $ (324,765 ) $ 160,044 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | For the years ended December 31, Amortization Expense Placement Fee Accretion 2023 $ 35,521 $ 6,182 2024 30,903 5,941 2025 22,573 5,721 2026 11,169 707 2027 6,453 — Thereafter 4,813 — Total $ 111,432 $ 18,551 |
Note 4 - Accrued Liabilities (T
Note 4 - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | December 31, 2022 2021 Salary and payroll tax accrual $ 13,255 $ 16,994 Taxes payable 2,903 4,016 Current portion of operating lease liability 2,287 2,137 License fee obligation 1,000 1,000 Placement fees payable 6,314 6,314 Accrued other 11,503 8,704 Total accrued liabilities $ 37,262 $ 39,165 |
Note 5 - Long-term Debt (Tables
Note 5 - Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Long-Term Debt Instruments [Table Text Block] | December 31, 2022 2021 First Lien Credit Facilities: Term loans, interest at SOFR, subject to a 0.75 4.0 8.7 15.2 $ 555,453 $ - Term loans, interest at LIBOR or base rate plus 3.5 4.5 4.0 - 517,247 Incremental term loans, interest at LIBOR or base rate plus 13.0 14.0 5.6 - 87,958 Finance Leases 688 953 Total debt 556,141 606,158 Less: Current portion (6,060 ) (6,877 ) Long-term debt $ 550,081 $ 599,281 |
Schedule of Maturities of Long-Term Debt [Table Text Block] | For the year ending December 31, 2023 $ 6,060 2024 5,921 2025 5,843 2026 5,864 2027 5,750 Thereafter 541,938 Total scheduled maturities 571,376 Unamortized debt discount and debt issuance costs (15,235 ) Total debt $ 556,141 |
Note 10 - Stock-based Compens_2
Note 10 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
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, 2021 1,244,073 $ 9.14 3.4 $ 193 Granted - - - - Exercised - - - - Canceled or forfeited (81,985 ) $ 10.51 - - Options outstanding as of December 31, 2022 1,162,088 $ 9.05 2.4 $ - Exercisable as of December 31, 2022 1,162,088 $ 9.05 2.4 $ - |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Outstanding Grant Date Fair Value (per share) Outstanding as of December 31, 2021 1,934,876 $8.25 Granted 283,229 $5.99 Vested (503,374 ) $10.26 Canceled or forfeited (45,307 ) $8.85 Outstanding as of December 31, 2022 1,669,424 $7.24 |
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, 2021 2,253,400 $ 6.47 Granted 881,098 $ 4.88 Vested (423,197 ) $ 6.24 Canceled or forfeited (91,693 ) $ 6.40 Phantom Stock Outstanding as of December 31, 2022 2,619,608 $ 5.98 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Year ended December 31, 2022 2021 2020 Domestic $ (12,820 ) $ (21,235 ) $ (80,939 ) Foreign 2,560 (3,535 ) (10,314 ) Loss before provision for income taxes $ (10,260 ) $ (24,770 ) $ (91,253 ) |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31, 2022 2021 2020 Current: Federal $ — $ — $ (1,495 ) State 569 139 262 Foreign (1,957 ) (1,966 ) (3,012 ) Total current income tax (benefit) expense (1,388 ) (1,827 ) (4,245 ) Deferred: Federal (482 ) 342 365 State (123 ) 57 53 Foreign (232 ) (770 ) (2,048 ) Total deferred income (benefit) expense (837 ) (371 ) (1,630 ) Income tax (benefit) expense $ (2,225 ) $ (2,198 ) $ (5,875 ) |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year ended December 31, 2022 2021 2020 Federal statutory rate (21.0 )% (21.0 )% (21.0 )% Foreign rate differential 1.5 % (0.1 )% (0.9 )% State income taxes, net of federal benefit 6.9 % (3.5 )% (2.9 )% U.S. tax on foreign income, net of foreign tax credits 29.2 % 0.6 % 2.8 % Tax indemnification charges — % 1.0 % 1.0 % Stock compensation 4.0 % 1.4 % 1.0 % Other differences 5.4 % 0.1 % 0.6 % Withholding tax 4.3 % 1.2 % 0.2 % Rate changes (3.0 )% (6.4 )% — % Research tax credits (15.5 )% (5.8 )% 0.3 % Uncertain tax positions (16.5 )% (5.8 )% (2.8 )% Valuation allowance (17.0 )% 29.4 % 15.3 % Effective tax rate (21.7 )% (8.9 )% (6.4 )% |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2022 2021 Deferred tax assets: Accrued expenses $ 2,934 $ 4,433 Stock compensation 5,590 4,657 Foreign tax credits 7,660 9,429 Net operating loss carryforwards 32,982 42,433 Research and experimentation 14,568 6,848 Debt 26,057 21,239 Other 2,580 3,102 Total deferred tax assets 92,371 92,141 Valuation allowance (60,114 ) (62,233 ) Deferred tax assets, net of valuation allowance $ 32,257 $ 29,908 Deferred tax liabilities: Prepaid expenses and other $ (714 ) $ (519 ) Intangible assets, net (14,180 ) (15,481 ) Property and equipment, net (11,520 ) (9,228 ) Deferred tax liabilities (26,414 ) (25,228 ) Net deferred tax assets (liabilities) $ 5,843 $ 4,680 |
Summary of Income Tax Contingencies [Table Text Block] | December 31, 2022 December 31, 2021 Balance-beginning of year $ 6,519 $ 7,405 Increases based on tax positions of the current year 480 520 Decreases due to lapse of statute (1,287 ) (1,434 ) Increases based on tax positions of the prior years — 77 Currency translation adjustments 40 (49 ) Balance-end of year $ 5,752 $ 6,519 |
Note 13 - Operating Segments (T
Note 13 - Operating Segments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 2022 2021 2020 Revenues by segment EGM $ 284,331 $ 237,809 $ 151,789 Table Products 14,920 11,879 7,969 Interactive 10,185 10,008 7,249 Total Revenues 309,436 259,696 167,007 Adjusted EBITDA by segment EGM 127,502 112,817 65,877 Table Products 8,781 6,438 3,360 Interactive 2,360 3,332 2,432 Subtotal 138,643 122,587 71,669 Write-downs and other: Loss on disposal of long lived assets 427 590 2,399 Impairment of long lived assets 30 2,257 134 Fair value adjustments to contingent consideration and other items 1,466 (56 ) 796 Depreciation and amortization 75,516 73,938 85,722 Interest expense, net of interest income and other 39,680 44,473 43,982 Loss on extinguishment and modification of debt 8,549 — 3,102 Other adjustments 2,225 3,119 8,618 Other non-cash charges 9,117 8,393 9,712 Non-cash stock compensation 11,893 14,643 8,457 Loss before income taxes $ (10,260 ) $ (24,770 ) $ (91,253 ) |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | Year ended December 31, Revenue: 2022 2021 2020 United States $ 272,473 $ 237,396 $ 151,187 Other 36,963 22,300 15,820 Total Revenue $ 309,436 $ 259,696 $ 167,007 Year ended December 31, Long-lived assets: 2022 2021 2020 United States $ 79,137 $ 72,904 $ 76,879 Other 10,570 9,406 13,623 Total long-lived assets $ 89,707 $ 82,310 $ 90,502 |
Note 14 - Leases (Tables)
Note 14 - Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Assets and Liabilities, Lessee [Table Text Block] | As of December 31, 2022 As of December 31, 2021 Leases (in thousands) Classification Assets Operating leases Operating lease assets(a) $ 11,198 $ 12,503 Finance leases Property and equipment, net(b) 597 760 Total leased assets, net $ 11,795 $ 13,263 Liabilities Current: Operating leases Accrued liabilities $ 2,287 $ 2,137 Finance leases Current maturities of long-term debt 322 540 Non-current: Operating leases Operating lease liabilities, long-term 10,413 11,871 Finance leases Long-term debt 366 413 Total lease liability $ 13,388 $ 14,961 |
Lease, Cost [Table Text Block] | Year Ended December 31, 2022 2021 2020 Operating lease costs (in thousands) Classification Operating lease cost - office building Selling, general and administrative $ 2,411 $ 2,108 $ 1,519 Operating lease cost - R&D Research and development - - 377 Operating lease cost - warehouses Cost of gaming operations (c) 546 546 553 Total Operating Lease cost: $ 2,957 $ 2,654 $ 2,449 Finance lease cost Depreciation of leased assets Depreciation and amortization $ 435 $ 744 $ 784 Interest on lease liabilities Interest expense 18 29 41 Total Finance Lease cost: 453 773 825 Total Lease Cost $ 3,410 $ 3,427 $ 3,274 As of December 31, 2022 As of December 31, 2021 Lease term and discount rate Operating Weighted average remaining lease term (years) 4.9 5.8 Weighted average discount rate 5.4 % 5.4 % Finance Leases Weighted average remaining lease term (years) 2.0 1.2 Weighted average discount rate 2.4 % 2.2 % Year Ended December 31, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities (in thousands) Operating cash flows from operating leases $ 2,954 $ 2,747 $ 2,918 Operating cash flows from finance leases $ 18 $ 29 $ 41 Financing cash flows from finance leases $ 422 $ 604 $ 691 |
Lessee, Lease Liability, Maturity [Table Text Block] | Operating Leases Financing Leases Total Maturity of lease liabilities (in thousands) 2023 $ 2,914 $ 322 $ 3,236 2024 2,900 178 3,078 2025 2,916 97 3,013 2026 2,996 114 3,110 2027 2,341 - 2,341 Thereafter 449 - 449 Total lease payments $ 14,516 $ 711 $ 15,227 Less: interest 1,816 23 1,839 Present value of lease liabilities $ 12,700 $ 688 $ 13,388 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of the Registrant (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2022 2021 Assets Current assets Cash and cash equivalents $ 4,171 $ 2,931 Intercompany Receivables 8 7 Prepaid expenses 44 32 Total current assets 4,223 2,970 Investment in subsidiaries 50,262 42,454 Other long-term assets - 8 Total assets $ 54,485 $ 45,432 Liabilities and Stockholders’ Equity Current liabilities Intercompany payables $ 5,124 $ 3,861 Total current liabilities 5,124 3,861 Total liabilities 5,124 3,861 Stockholders’ equity: Common stock 378 369 Additional paid-in capital 406,436 392,161 Retained earnings (353,125 ) (344,889 ) Accumulated other comprehensive loss (4,328 ) (6,070 ) Total stockholders’ equity 49,361 41,571 Total liabilities and stockholders’ equity $ 54,485 $ 45,432 |
Condensed Income Statement [Table Text Block] | Year ended December 31, 2022 2021 2020 Revenue Intercompany revenue $ - $ - $ - Total Revenue - - — Operating expenses Selling, general and administrative 18 (15 ) 24 Total operating expenses 18 (15 ) 24 Loss from operations (18 ) 15 (24 ) Other expense (income) Equity in net loss of subsidiaries (8,017 ) (22,587 ) (85,349 ) Other (Expense) Income - — (5 ) Loss before income taxes (8,035 ) (22,572 ) (85,378 ) Income tax (expense) benefit - - - Net loss (8,035 ) (22,572 ) (85,378 ) Foreign currency translation adjustment 1,742 (984 ) (2,678 ) Total comprehensive loss $ (6,293 ) $ (23,556 ) $ (88,056 ) |
Condensed Cash Flow Statement [Table Text Block] | Year ended December 31, 2022 2021 2020 Cash flows from operating activities Net loss $ (8,035 ) $ (22,572 ) $ (85,378 ) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Equity income from subsidiaries 8,017 22,587 85,349 Changes in assets and liabilities that relate to operations: Prepaid expenses (12 ) — — Intercompany payable/receivable 1,262 2,447 64 Deposits and other assets LT 8 (5 ) (1 ) Net cash provided by (used in) operating activities 1,240 2,457 34 Cash flows from investing activities Distributions received from subsidiaries 201 906 560 Net cash provided by (used in) investing activities 201 906 560 Cash flows from financing activities Repurchase of shares (201 ) (906 ) (560 ) Proceeds from stock option exercise - — 158 Net cash (used in) provided by financing activities (201 ) (906 ) (402 ) Increase (decrease) in cash and cash equivalents 1,240 2,457 192 Cash and cash equivalents, beginning of period 2,931 474 282 Cash and cash equivalents, end of period $ 4,171 $ 2,931 $ 474 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 $ 62,233 $ (1,740 ) $ - $ (379 ) $ 60,114 Year ended December 31, 2021 $ 55,006 $ 7,270 $ - $ (43 ) $ 62,233 Year ended December 31, 2020 $ 41,004 $ 13,924 $ - $ 78 $ 55,006 |
Note 1 - Description of the B_3
Note 1 - Description of the Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory, Raw Materials, Gross | $ 31,000 | $ 24,100 | |
Inventory, Finished Goods, Gross | 4,400 | 3,400 | |
Inventory, Work in Process, Gross | 0 | 0 | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 59,909 | 49,426 | |
Advertising Expense | 100 | $ 300 | $ 300 |
MEXICO | |||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 3,000 | ||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 12% | 15% | |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | MEXICO | |||
Concentration Risk, Percentage | 6% | 5% | 4% |
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 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Total revenues | $ 309,436 | $ 259,696 | $ 167,007 | |
Gaming Operations [Member] | ||||
Total revenues | 223,802 | 205,627 | 129,150 | |
Equipment Sales [Member] | ||||
Total revenues | 85,634 | 54,069 | 37,857 | |
EGM [Member] | ||||
Total revenues | 284,331 | 237,809 | 151,789 | |
EGM [Member] | Gaming Operations [Member] | ||||
Total revenues | 199,274 | 184,050 | 114,548 | |
EGM [Member] | Equipment Sales [Member] | ||||
Total revenues | 85,057 | 53,759 | 37,241 | |
Table Products [Member] | ||||
Total revenues | 14,920 | 11,879 | 7,969 | |
Table Products [Member] | Gaming Operations [Member] | ||||
Total revenues | 14,343 | 11,569 | 7,353 | |
Table Products [Member] | Equipment Sales [Member] | ||||
Total revenues | 577 | 310 | 616 | |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | [1] | $ 10,185 | $ 10,008 | $ 7,249 |
[1]The Interactive gaming operations revenue includes both Social and Real Money Gaming revenue streams that were previously disclosed separately. |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance | $ 1,993 | $ 2,077 | $ 723 |
Charge-offs | (484) | (319) | (1,340) |
Provision for bad debts | 465 | 235 | 2,694 |
Balance | $ 1,974 | $ 1,993 | $ 2,077 |
Note 1 - Description of the B_6
Note 1 - Description of the Business and Summary of Significant Accounting Policies - Property and Equipment Useful Life (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | |
Gaming equipment (in years) (Year) | 1 year |
Maximum [Member] | |
Gaming equipment (in years) (Year) | 5 years |
Gaming Equipment [Member] | Minimum [Member] | |
Gaming equipment (in years) (Year) | 1 year |
Gaming Equipment [Member] | Maximum [Member] | |
Gaming equipment (in years) (Year) | 5 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) | 5 years |
Note 1 - Description of the B_7
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, 2022 | Dec. 31, 2021 |
Long-term Debt, carrying amount | $ 571,376 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Long-term Debt, carrying amount | 571,375 | $ 615,743 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Long-term Debt, fair value | $ 539,987 | $ 613,706 |
Note 2 - Property and Equipme_3
Note 2 - Property and Equipment (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation, Total | $ 39.4 | $ 37.9 | $ 39.5 |
Minimum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 1 year | ||
Maximum [Member] | |||
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Note 2 - Property and Equipme_4
Note 2 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Less: Accumulated depreciation | $ (172,805) | $ (145,805) |
Total property and equipment, net | 82,361 | 74,916 |
Gaming Equipment [Member] | ||
Property and equipment, gross | 232,244 | 196,748 |
Property, Plant and Equipment, Other Types [Member] | ||
Property and equipment, gross | $ 22,922 | $ 23,973 |
Note 3 - Goodwill and Intangi_3
Note 3 - Goodwill and Intangibles (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Amortization of Intangible Assets | $ 36,100 | $ 36,000 | $ 46,200 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | ||
Accretion of Contract Rights Under Development Agreements and Customer Agreements | 6,345 | $ 6,516 | $ 7,421 | |
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 | |||
Financing Receivable, after Allowance for Credit Loss, Total | $ 9,200 | $ 3,400 | ||
Financing Receivable, Term (Year) | 4 years | |||
Minimum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 1 year | |||
Maximum [Member] | ||||
Finite-Lived Intangible Asset, Useful Life (Year) | 12 years | |||
EGM [Member] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | $ 113,400 | |||
Table Products [Member] | ||||
Reporting Unit, Amount of Fair Value in Excess of Carrying Amount | 8,900 | |||
Interactive (Gaming Operations) [Member] | ||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 8,400 |
Note 3 - Goodwill and Intangi_4
Note 3 - Goodwill and Intangibles - Changes in Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | |||
Balance | $ 285,546 | $ 286,042 | ||
Foreign currency adjustments | 904 | (496) | ||
Acquisition | 1,230 | |||
Balance | 287,680 | 285,546 | ||
EGM [Member] | ||||
Balance | 277,725 | 278,221 | ||
Foreign currency adjustments | 904 | (496) | ||
Acquisition | 0 | |||
Balance | 278,629 | 277,725 | ||
Table Products [Member] | ||||
Balance | 7,821 | 7,821 | ||
Foreign currency adjustments | 0 | 0 | ||
Acquisition | 1,230 | |||
Balance | 9,051 | 7,821 | ||
Interactive (Gaming Operations) [Member] | ||||
Balance | 0 | 0 | [1] | |
Foreign currency adjustments | 0 | 0 | [1] | |
Acquisition | [1] | 0 | ||
Balance | $ 0 | $ 0 | ||
[1]Accumulated goodwill impairment charges for the Interactive segment as of September 30, 2022 were $8.4 million. |
Note 3 - Goodwill and Intangi_5
Note 3 - Goodwill and Intangibles - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Indefinite-lived trade names | $ 12,126 | $ 12,126 |
Finite lived, accumulated amortization | (367,059) | (324,765) |
Intangible assets, gross | 509,168 | 484,809 |
Intangible assets, net carrying value | $ 142,109 | 160,044 |
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 | $ 14,990 | 14,870 |
Finite lived, accumulated amortization | (14,722) | (14,495) |
Total, Amortization Expense | $ 268 | 375 |
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 | $ 219,146 | 218,247 |
Finite lived, accumulated amortization | (167,629) | (155,140) |
Total, Amortization Expense | $ 51,517 | 63,107 |
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 | $ 42,395 | 42,535 |
Finite lived, accumulated amortization | (23,844) | (17,639) |
Total, Amortization Expense | $ 18,551 | 24,896 |
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 | $ 198,666 | 177,686 |
Finite lived, accumulated amortization | (147,437) | (126,182) |
Total, Amortization Expense | $ 51,229 | 51,504 |
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 | $ 21,845 | 19,345 |
Finite lived, accumulated amortization | (13,427) | (11,309) |
Total, Amortization Expense | $ 8,418 | $ 8,036 |
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 3 - Goodwill and Intangi_6
Note 3 - Goodwill and Intangibles - Finite-lived Intangible Assets, Future Amortization Expense (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Amortization Expense [Member] | |
2023, Amortization Expense | $ 35,521 |
2024, Amortization Expense | 30,903 |
2025, Amortization Expense | 22,573 |
2026, Amortization Expense | 11,169 |
2027, Amortization Expense | 6,453 |
Thereafter, Amortization Expense | 4,813 |
Total, Amortization Expense | 111,432 |
Placement Fee Accretion [Member] | |
2023, Amortization Expense | 6,182 |
2024, Amortization Expense | 5,941 |
2025, Amortization Expense | 5,721 |
2026, Amortization Expense | 707 |
2027, Amortization Expense | 0 |
Thereafter, Amortization Expense | 0 |
Total, Amortization Expense | $ 18,551 |
Note 4 - Accrued Liabilities -
Note 4 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Total accrued liabilities | $ 37,262 | $ 39,165 |
Accrued Liabilities [Member] | ||
Salary and payroll tax accrual | 13,255 | 16,994 |
Taxes payable | 2,903 | 4,016 |
Current portion of operating lease liability | 2,287 | 2,137 |
License fee obligation | 1,000 | 1,000 |
Placement fees payable | 6,314 | 6,314 |
Accrued other | $ 11,503 | $ 8,704 |
Note 5 - Long-term Debt (Detail
Note 5 - Long-term Debt (Details Textual) $ in Millions | Feb. 15, 2022 USD ($) |
New Term Loan Facility [Member] | Term Loan [Member] | |
Debt Instrument, Face Amount | $ 575 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
Debt Instrument, Interest Rate, Stated Percentage | 1% |
Percentage of Prepayment Premium Or Fee | 1% |
Debt Instrument, Covenant, Maximum Leverage Ratio | 6.70 |
Percentage of Outstanding Comments | 35% |
Debt Issuance Costs, Gross | $ 17.6 |
Extinguishment of Debt, Amount | $ 8.5 |
New Term Loan Facility [Member] | Term Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | |
Debt Instrument, Floor Rate on Variable Rate | 0.75% |
Debt Instrument, Basis Spread on Variable Rate | 4% |
New Term Loan Facility [Member] | Term Loan [Member] | Prime Rate [Member] | |
Debt Instrument, Floor Rate on Variable Rate | 0% |
New Term Loan Facility [Member] | Term Loan [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 0.50% |
New Term Loan Facility [Member] | Term Loan [Member] | Base Rate [Member] | |
Debt Instrument, Basis Spread on Variable Rate | 3% |
Debt Instrument, Quarterly Payment, Percentage of Original Principle Amount | 0.25% |
New Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 5 |
New Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | 40 |
New Revolving Credit Facility [Member] | Letter of Credit [Member] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 7.5 |
Note 5 - Long-term Debt - Sched
Note 5 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | $ 556,141 | $ 606,158 |
Less: Current portion | (6,060) | (6,877) |
Long-term debt | $ 550,081 | 599,281 |
First Lien Credit Facilities [Member] | Term Loan [Member] | ||
Floor rate | 0.75% | |
Long-term debt | $ 555,453 | 0 |
First Lien Credit Facilities [Member] | Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Long-term debt | 0 | 517,247 |
First Lien Credit Facilities [Member] | Incremental Term Loans [Member] | ||
Long-term debt | 0 | 87,958 |
Equipment Long-term Note Payable and Finance Leases [Member] | ||
Long-term debt | $ 688 | $ 953 |
Note 5 - Long-term Debt - Sch_2
Note 5 - Long-term Debt - Schedule of Long-term Debt (Details) (Parentheticals) - First Lien Credit Facilities [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Term Loan [Member] | ||
Floor rate | 0.75% | |
Spread on variable rate | 8.70% | 4% |
Unamortized discount and costs | $ 15.2 | |
Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Spread on variable rate | 3.50% | 4.50% |
Unamortized discount and costs | $ 4 | |
Incremental Term Loans [Member] | ||
Spread on variable rate | 13% | 14% |
Unamortized discount and costs | $ 5.6 |
Note 5 - Long-term Debt - Sch_3
Note 5 - Long-term Debt - Scheduled Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
2023 | $ 6,060 | |
2024 | 5,921 | |
2025 | 5,843 | |
2026 | 5,864 | |
2027 | 5,750 | |
Thereafter | 541,938 | |
Total scheduled maturities | 571,376 | |
Unamortized debt discount and debt issuance costs | (15,235) | |
Long-term debt | $ 556,141 | $ 606,158 |
Note 6 - Stockholders' Equity (
Note 6 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Common Stock, Shares Authorized (in shares) | 450,000,000 | 450,000,000 |
Common Stock, Par or Stated Value Per Share (in dollars per share) | $ 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) | $ 0.01 | $ 0.01 |
Common Stock, Shares, Outstanding, Ending Balance (in shares) | 37,789,131 | 36,943,770 |
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 |
Stock Repurchase Program, Authorized Amount | $ 50 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 47 |
Note 7 - Write-downs and Othe_2
Note 7 - Write-downs and Other Charges (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 1,466 | $ (56) | $ 796 |
Other Cost and Expense, Operating | 1,923 | 2,791 | 3,329 |
Impairment of Long-Lived Assets to be Disposed of | 30 | 2,257 | 134 |
Gain (Loss) on Disposition of Assets, Total | (427) | (590) | (2,399) |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Asset | 800 | ||
Game Titles [Member] | |||
Impairment of Intangible Assets, Finite-Lived | 800 | ||
Placement Fees [Member] | |||
Goodwill, Impairment Loss | $ 1,900 | ||
Discontinued Operations, Disposed of by Sale [Member] | |||
Impairment of Long-Lived Assets to be Disposed of | $ 1,400 | ||
Error Related to the Fair Value of Adjustments to Contingent Consideration [Member] | |||
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 1,200 |
Note 8 - Basic and Diluted Lo_2
Note 8 - Basic and Diluted Loss Per Share (Details Textual) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Number of Shares Outstanding, Diluted, Adjustment, Total (in shares) | 0 | 0 | 0 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 2,106,766 | 1,850,286 | 1,191,944 |
Restricted Stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 1,796,053 | 1,796,053 | |
Share-Based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 19,197 | 273,414 | 32,591 |
Note 9 - Benefit Plans (Details
Note 9 - Benefit Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||||||
Apr. 28, 2022 | May 08, 2020 | Apr. 28, 2014 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Apr. 27, 2022 | May 07, 2020 | |
Defined Contribution Plan, Cost | $ 1.8 | $ 1.5 | $ 0.4 | |||||
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 | 1,607,389 | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) | 3,000,000 | |||||||
The 2020 Plan Amendment [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 9,607,389 | 5,135,730 | 4,607,389 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Additional Shares Authorized (in shares) | 5,000,000 |
Note 10 - Stock-based Compens_3
Note 10 - Stock-based Compensation (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 31, 2018 | |
Share-Based Payment Arrangement, Expense | $ 11,893 | $ 14,643 | $ 8,457 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures, Total (in shares) | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance (in shares) | 1,162,088 | 1,244,073 | 493,104 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 7,300 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 1,700 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 4 months 24 days | |||
Phantom Share Units (PSUs) [Member] | ||||
Share-Based Payment Arrangement, Expense | $ 4,600 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 2,700 | |||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 1 year 9 months 18 days | |||
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% | |||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 0 | |||
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% | |||
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 | |||
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% | |||
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% |
Note 10 - Stock-based Compens_4
Note 10 - Stock-based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Options outstanding, number of options (in shares) | 1,244,073 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.14 | |
Options outstanding, weighted average remaining contract term (Year) | 2 years 4 months 24 days | 3 years 4 months 24 days |
Options outstanding, aggregate intrinsic value | $ 0 | $ 193 |
Granted, number of options (in shares) | 0 | |
Granted, weighted average exercise price (in dollars per share) | $ 0 | |
Granted aggregate intrinsic value | $ 0 | |
Exercised, number of options (in shares) | 0 | |
Exercised, weighted average exercise price (in dollars per share) | $ 0 | |
Canceled or forfeited, number of options (in shares) | (81,985) | |
Canceled or forfeited, weighted average exercise price (in dollars per share) | $ 10.51 | |
Options outstanding, number of options (in shares) | 1,162,088 | 1,244,073 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 9.05 | $ 9.14 |
Exercisable, number of options (in shares) | 1,162,088 | |
Exercisable, weighted average exercise price (in dollars per share) | $ 9.05 | |
Exercisable, weighted average remaining contract term (Year) | 2 years 4 months 24 days | |
Exercisable, aggregate intrinsic value | $ 0 |
Note 10 - Stock-based Compens_5
Note 10 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Balance, shares (in shares) | shares | 1,934,876 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 8.25 |
Granted, shares (in shares) | shares | 283,229 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 5.99 |
Vested, shares (in shares) | shares | (503,374) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 10.26 |
Canceled or forfeited, shares (in shares) | shares | (45,307) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 8.85 |
Balance, shares (in shares) | shares | 1,669,424 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 7.24 |
Note 10 - Stock-based Compens_6
Note 10 - Stock-based Compensation - Phantom Stock Units (Details) - Phantom Share Units (PSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Balance, shares (in shares) | shares | 2,253,400 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 6.47 |
Granted, shares (in shares) | shares | 881,098 |
Granted, grant date fair value (in dollars per share) | $ / shares | $ 4.88 |
Vested, shares (in shares) | shares | (423,197) |
Vested, grant date fair value (in dollars per share) | $ / shares | $ 6.24 |
Canceled or forfeited, shares (in shares) | shares | (91,693) |
Canceled or forfeited, grant date fair value (in dollars per share) | $ / shares | $ 6.40 |
Balance, shares (in shares) | shares | 2,619,608 |
Outstanding, grant date fair value (in dollars per share) | $ / shares | $ 5.98 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Tax Assets, Valuation Allowance | $ 60,114 | $ 62,233 | |
Deferred Tax Assets, Tax Credit Carryforwards, Foreign | 7,660 | 9,429 | |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 8,000 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | 129,700 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 13,700 | ||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 74,600 | ||
Unrecognized Tax Benefits, Ending Balance | 5,752 | $ 6,519 | $ 7,405 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,000 | ||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 900 | ||
Reduced in Income Tax Penalties and Interest | 1,200 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | $ 1,100 | ||
Cadillac Jack [Member] | |||
Business Combination, Indemnification Assets, Amount as of Acquisition Date | $ 800 | ||
Domestic Tax Authority [Member] | |||
Open Tax Year | 2017 2018 2019 2020 2021 2022 | ||
Domestic Tax Authority [Member] | Mexican Tax Authority [Member] | |||
Open Tax Year | 2017 2018 2019 2020 2021 2022 |
Note 11 - Income Taxes - Provis
Note 11 - Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Domestic | $ (12,820) | $ (21,235) | $ (80,939) |
Foreign | 2,560 | (3,535) | (10,314) |
Loss before income taxes | $ (10,260) | $ (24,770) | $ (91,253) |
Note 11 - Income Taxes - Income
Note 11 - Income Taxes - Income Tax (Benefit) Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal | $ 0 | $ 0 | $ (1,495) |
State | 569 | 139 | 262 |
Foreign | (1,957) | (1,966) | (3,012) |
Total current income tax (benefit) expense | (1,388) | (1,827) | (4,245) |
Federal | (482) | 342 | 365 |
State | (123) | 57 | 53 |
Foreign | (232) | (770) | (2,048) |
Total deferred income (benefit) expense | (837) | (371) | (1,630) |
Income tax (benefit) expense | $ (2,225) | $ (2,198) | $ (5,875) |
Note 11 - Income Taxes - Reconc
Note 11 - Income Taxes - Reconciliation of Income Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Federal statutory rate | 21% | 21% | 21% |
Foreign rate differential | 1.50% | (0.10%) | (0.90%) |
State income taxes, net of federal benefit | 6.90% | (3.50%) | (2.90%) |
Tax indemnification charges | 0% | 1% | 1% |
Stock compensation | 4% | 1.40% | 1% |
Other differences | 5.40% | 0.10% | 0.60% |
Withholding tax | 4.30% | 1.20% | 0.20% |
Rate changes | (3.00%) | (6.40%) | 0% |
Research tax credits | (15.50%) | (5.80%) | 0.30% |
Uncertain tax positions | (16.50%) | (5.80%) | (2.80%) |
Valuation allowance | (17.00%) | 29.40% | 15.30% |
Effective tax rate | (21.70%) | (8.90%) | (6.40%) |
Domestic Tax Authority [Member] | |||
U.S. tax on foreign income, net of foreign tax credits | 29.20% | 0.60% | 2.80% |
Note 11 - Income Taxes - Compon
Note 11 - Income Taxes - Components of Net Deferred Tax Assets (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued expenses | $ 2,934 | $ 4,433 |
Stock compensation | 5,590 | 4,657 |
Foreign tax credits | 7,660 | 9,429 |
Net operating loss carryforwards | 32,982 | 42,433 |
Research and experimentation | 14,568 | 6,848 |
Debt | 26,057 | 21,239 |
Other | 2,580 | 3,102 |
Total deferred tax assets | 92,371 | 92,141 |
Valuation allowance | (60,114) | (62,233) |
Deferred tax assets, net of valuation allowance | 32,257 | 29,908 |
Prepaid expenses and other | (714) | (519) |
Intangible assets, net | (14,180) | (15,481) |
Property and equipment, net | (11,520) | (9,228) |
Deferred tax liabilities | (26,414) | (25,228) |
Net deferred tax assets (liabilities) | $ 5,843 | $ 4,680 |
Note 11 - Income Taxes - Unreco
Note 11 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Balance-beginning of year | $ 6,519 | $ 7,405 |
Increases based on tax positions of the current year | 480 | 520 |
Decreases due to lapse of statute | (1,287) | (1,434) |
Increases based on tax positions of the prior years | 0 | 77 |
Currency translation adjustments | 40 | (49) |
Balance-end of year | $ 5,752 | $ 6,519 |
Note 12 - Commitments and Con_2
Note 12 - Commitments and Contingencies (Details Textual) $ in Millions | 1 Months Ended | 3 Months Ended | 39 Months Ended | |
Feb. 23, 2021 | Jan. 31, 2021 USD ($) | Sep. 30, 2019 USD ($) | Dec. 31, 2022 USD ($) | |
Loss Contingency, Claims Dismissed, Number | 5 | |||
Insurance Claims [Member] | ||||
Loss Contingency Accrual, Provision | $ 1.6 | |||
Audit Conducted by Alabama Department of Revenue [Member] | ||||
Loss Contingency, Damages Sought, Value | $ 3.3 | |||
Loss Contingency, Estimate of Maximum Taxable Lease Rental Payments | $ 2.2 |
Note 13 - Operating Segments (D
Note 13 - Operating Segments (Details Textual) | 12 Months Ended |
Dec. 31, 2022 | |
Number of Reportable Segments | 3 |
Note 13 - Operating Segments -
Note 13 - Operating Segments - Financial Information by Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Total revenues | $ 309,436 | $ 259,696 | $ 167,007 | |
Adjusted EBITDA | 138,643 | 122,587 | 71,669 | |
Loss on disposition of long-lived assets | 427 | 590 | 2,399 | |
Impairment of long lived assets | 30 | 2,257 | 134 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 1,466 | (56) | 796 | |
Depreciation and amortization | 75,516 | 73,938 | 85,722 | |
Interest expense, net of interest income and other | 39,680 | 44,473 | 43,982 | |
Loss on extinguishment and modification of debt | 8,549 | 0 | 3,102 | |
Other adjustments | 2,225 | 3,119 | 8,618 | |
Other non-cash charges | 9,117 | 8,393 | 9,712 | |
Share-Based Payment Arrangement, Expense | 11,893 | 14,643 | 8,457 | |
Loss before income taxes | (10,260) | (24,770) | (91,253) | |
Electronic Gaming Machines, EGM [Member] | ||||
Total revenues | 284,331 | 237,809 | 151,789 | |
Adjusted EBITDA | 127,502 | 112,817 | 65,877 | |
Table Products [Member] | ||||
Total revenues | 14,920 | 11,879 | 7,969 | |
Adjusted EBITDA | 8,781 | 6,438 | 3,360 | |
Interactive (Gaming Operations) [Member] | ||||
Total revenues | [1] | 10,185 | 10,008 | 7,249 |
Adjusted EBITDA | $ 2,360 | $ 3,332 | $ 2,432 | |
[1]The Interactive gaming operations revenue includes both Social and Real Money Gaming revenue streams that were previously disclosed separately. |
Note 13 - Operating Segments _2
Note 13 - Operating Segments - Geographic Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 309,436 | $ 259,696 | $ 167,007 |
Long-lived assets | 89,707 | 82,310 | 90,502 |
UNITED STATES | |||
Revenue | 272,473 | 237,396 | 151,187 |
Long-lived assets | 79,137 | 72,904 | 76,879 |
Non-US [Member] | |||
Revenue | 36,963 | 22,300 | 15,820 |
Long-lived assets | $ 10,570 | $ 9,406 | $ 13,623 |
Note 14 - Leases (Details Textu
Note 14 - Leases (Details Textual) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease, Right-of-use Asset, Accumulated Amortization | $ 5.4 | $ 4.4 |
Finance Lease, Right-of-Use Asset, Accumulated Amortization | $ 0.7 | $ 1.8 |
Note 14 - Leases - Operating an
Note 14 - Leases - Operating and Finance Assets and Liability Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Operating leases | $ 11,198 | $ 12,503 | ||
Total leased assets, net | 11,795 | 13,263 | ||
Operating leases | 10,413 | 11,871 | ||
Total lease liability | 13,388 | 14,961 | ||
Operating lease assets [Member] | ||||
Operating leases | 11,198 | [1] | 12,503 | |
Property and Equipment, Net [Member] | ||||
Finance leases | [2] | 597 | 760 | |
Accrued Liabilities [Member] | ||||
Operating leases | 2,287 | 2,137 | ||
Current Maturities of Long-term Debt [Member] | ||||
Finance leases | 322 | 540 | ||
Operating Lease Liabilities, Long-term [Member] | ||||
Operating leases | 10,413 | 11,871 | ||
Long-Term Debt [Member] | ||||
Finance leases | $ 366 | $ 413 | ||
[1]Operating lease assets are recorded net of accumulated amortization of $4.4 million and $2.7 million as of December 31, 2021 and 2020, respectively.[2]Finance lease assets are recorded net of accumulated amortization of $1.8 million and $1.3 million as of December 31, 2021 and 2020, respectively. |
Note 14 - Leases - Lease Cost (
Note 14 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Operating lease cost | $ 2,957 | $ 2,654 | $ 2,449 | ||
Total Finance Lease cost: | 453 | 773 | |||
Total Finance Lease cost: | 825 | ||||
Total Lease Cost | $ 3,410 | $ 3,427 | |||
Total Lease Cost, ASC 840 | 3,274 | ||||
Weighted average remaining lease term (years), operating lease (Year) | 4 years 10 months 24 days | 5 years 9 months 18 days | |||
Weighted average discount rate, operating lease | 5.40% | 5.40% | |||
Weighted average remaining lease term (years) (Year) | 2 years | 1 year 2 months 12 days | |||
Weighted average discount rate | 2.40% | 2.20% | |||
Operating cash flows from operating leases | $ 2,954 | $ 2,747 | 2,918 | ||
Operating cash flows from finance leases | 18 | 29 | |||
Operating cash flows from finance leases, ASC 840 | 41 | ||||
Financing cash flows from finance leases | 422 | 604 | |||
Financing cash flows from finance leases, ASC 840 | 691 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Operating lease cost | 2,411 | 2,108 | 1,519 | ||
Research and Development Expense [Member] | |||||
Operating lease cost | 0 | 0 | 377 | ||
Cost of Gaming Operations [Member] | |||||
Operating lease cost | 546 | [1] | 546 | 553 | [1] |
Depreciation and Amortization [Member] | |||||
Depreciation of leased assets | 435 | 744 | |||
Depreciation of leased assets, ASC 840 | 784 | ||||
Interest Expense [Member] | |||||
Interest on lease liabilities | $ 18 | $ 29 | |||
Interest on lease liabilities, ASC 840 | $ 41 | ||||
[1]Subject to capitalization. |
Note 14 - Leases - Maturity of
Note 14 - Leases - Maturity of Operating and Financing Leases Liabilities (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
2023, operating leases | $ 2,914 |
2023, financing leases | 322 |
2023, operating and financing leases | 3,236 |
2024, operating leases | 2,900 |
2024, financing leases | 178 |
2024, operating and financing leases | 3,078 |
2025, operating leases | 2,916 |
2025, financing leases | 97 |
2025, operating and financing leases | 3,013 |
2026, operating leases | 2,996 |
2026, financing leases | 114 |
2026, operating and financing leases | 3,110 |
2027, operating leases | 2,341 |
2027, financing leases | 0 |
2027, operating and financing leases | 2,341 |
Thereafter, operating leases | 449 |
Thereafter, financing leases | 0 |
Thereafter, operating and financing leases | 449 |
Total lease payments, operating leases | 14,516 |
Total lease payments, financing leases | 711 |
Total lease payments, operating and financing leases | 15,227 |
Less: interest, operating leases | 1,816 |
Less: interest, financing leases | 23 |
Less: interest, operating and financing leases | 1,839 |
Present value of lease liabilities, financing leases | 688 |
Present value of lease liabilities, operating and financing leases | 13,388 |
Accrued liabilities and Operating Lease Liabilities, Long-term [Member] | |
Present value of lease liabilities, operating leases | $ 12,700 |
Note 16 - Acquisitions (Details
Note 16 - Acquisitions (Details Textual) - USD ($) $ in Thousands | Jan. 03, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill, Ending Balance | $ 287,680 | $ 285,546 | $ 286,042 | |
Table Game-related Intangible Assets Under Lucky Lucky Trade Name [Member] | ||||
Business Combination, Consideration Transferred, Total | $ 4,800 | |||
Goodwill, Ending Balance | 1,200 | |||
Finite-Lived Intangible Assets Acquired | $ 3,500 | |||
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life (Year) | 9 years 1 month 6 days |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of the Registrant (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Parent Company [Member] | ||
APIC, Share-Based Payment Arrangement, Option, Increase for Cost Recognition | $ 11.9 | $ 14.6 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of the Registrant - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | $ 37,891 | $ 94,977 |
Prepaid expenses | 4,020 | 4,878 |
Total current assets | 146,164 | 185,075 |
Other long-term assets | 7,346 | 7,394 |
Total assets | 684,751 | 732,811 |
Total current liabilities | 58,566 | 55,481 |
Total liabilities | 635,390 | 691,240 |
Common stock | 378 | 369 |
Additional paid-in capital | 406,436 | 392,161 |
Retained earnings | (353,125) | (344,889) |
Accumulated other comprehensive loss | (4,328) | (6,070) |
Total stockholders’ equity | 49,361 | 41,571 |
Total liabilities and stockholders’ equity | 684,751 | 732,811 |
Parent Company [Member] | ||
Cash and cash equivalents | 4,171 | 2,931 |
Intercompany Receivables | 8 | 7 |
Prepaid expenses | 44 | 32 |
Total current assets | 4,223 | 2,970 |
Investment in subsidiaries | 50,262 | 42,454 |
Other long-term assets | 0 | 8 |
Total assets | 54,485 | 45,432 |
Intercompany payables | 5,124 | 3,861 |
Total current liabilities | 5,124 | 3,861 |
Total liabilities | 5,124 | 3,861 |
Common stock | 378 | 369 |
Additional paid-in capital | 406,436 | 392,161 |
Retained earnings | (353,125) | (344,889) |
Accumulated other comprehensive loss | (4,328) | (6,070) |
Total stockholders’ equity | 49,361 | 41,571 |
Total liabilities and stockholders’ equity | $ 54,485 | $ 45,432 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue | $ 309,436 | $ 259,696 | $ 167,007 |
Selling, general and administrative | 67,728 | 63,749 | 46,463 |
Total operating expenses | 271,467 | 239,993 | 211,176 |
Loss from operations | 37,969 | 19,703 | (44,169) |
Other (Expense) Income | (131) | (1,185) | (3,226) |
Loss before income taxes | (10,260) | (24,770) | (91,253) |
Income tax (expense) benefit | (2,225) | (2,198) | (5,875) |
Net loss | (8,035) | (22,572) | (85,378) |
Foreign currency translation adjustment | 1,742 | (984) | (2,678) |
Total comprehensive loss | (6,293) | (23,556) | (88,056) |
Parent Company [Member] | |||
Intercompany revenue | 0 | 0 | 0 |
Revenue | 0 | 0 | 0 |
Selling, general and administrative | 18 | (15) | 24 |
Total operating expenses | 18 | (15) | 24 |
Loss from operations | (18) | 15 | (24) |
Equity in net loss of subsidiaries | (8,017) | (22,587) | (85,349) |
Other (Expense) Income | 0 | 0 | (5) |
Loss before income taxes | (8,035) | (22,572) | (85,378) |
Income tax (expense) benefit | 0 | 0 | 0 |
Net loss | (8,035) | (22,572) | (85,378) |
Foreign currency translation adjustment | 1,742 | (984) | (2,678) |
Total comprehensive loss | $ (6,293) | $ (23,556) | $ (88,056) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net loss | $ (8,035) | $ (22,572) | $ (85,378) |
Prepaid expenses | 450 | (1,332) | (1,264) |
Deposits and other | (436) | (3,516) | 517 |
Net cash provided by (used in) operating activities | 77,709 | 78,332 | 36,170 |
Net cash provided by (used in) investing activities | (72,088) | (50,137) | (39,283) |
Repurchase of stock | (201) | (906) | (560) |
Proceeds from stock option exercise | 0 | 0 | 158 |
Net cash (used in) provided by financing activities | (62,720) | (14,905) | 71,643 |
Increase (decrease) in cash and cash equivalents | (57,086) | 13,288 | 68,527 |
Parent Company [Member] | |||
Net loss | (8,035) | (22,572) | (85,378) |
Equity income from subsidiaries | 8,017 | 22,587 | 85,349 |
Prepaid expenses | (12) | 0 | 0 |
Intercompany payable/receivable | 1,262 | 2,447 | 64 |
Deposits and other | 8 | (5) | (1) |
Net cash provided by (used in) operating activities | 1,240 | 2,457 | 34 |
Distributions received from subsidiaries | 201 | 906 | 560 |
Net cash provided by (used in) investing activities | 201 | 906 | 560 |
Repurchase of stock | (201) | (906) | (560) |
Proceeds from stock option exercise | 0 | 0 | 158 |
Net cash (used in) provided by financing activities | (201) | (906) | (402) |
Increase (decrease) in cash and cash equivalents | 1,240 | 2,457 | 192 |
Cash and cash equivalents, beginning of period | 2,931 | 474 | 282 |
Cash and cash equivalents, end of period | $ 4,171 | $ 2,931 | $ 474 |
Schedule II - Valuation and Q_3
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Balance at the beginning of period | $ 62,233 | $ 55,006 | $ 41,004 |
Charged to tax expense/(benefit) | (1,740) | 7,270 | 13,924 |
Purchase accounting adjustments | 0 | 0 | 0 |
Impact of foreign currency exchange rate | (379) | (43) | 78 |
Balance at the end of period | $ 60,114 | $ 62,233 | $ 55,006 |