Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 11, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | Inspired Entertainment, Inc. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 23,029,492 | |
Amendment Flag | false | |
Entity Central Index Key | 0001615063 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-36689 | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash | $ 39.9 | $ 29.1 |
Accounts receivable, net | 18.6 | 24.2 |
Inventory, net | 19 | 18.8 |
Prepaid expenses and other current assets | 17 | 23.2 |
Total current assets | 94.5 | 95.3 |
Property and equipment, net | 68.4 | 79.3 |
Software development costs, net | 41 | 46.9 |
Other acquired intangible assets subject to amortization, net | 7.3 | 9.9 |
Goodwill | 75.4 | 80.9 |
Right of use asset | 12.7 | 9.4 |
Investment | 0.6 | |
Other assets | 4 | 5.1 |
Total assets | 303.3 | 327.4 |
Current liabilities | ||
Accounts payable | 21.3 | 22.2 |
Accrued expenses | 26.7 | 31.2 |
Corporate tax and other current taxes payable | 6 | 6.6 |
Deferred revenue, current | 9.2 | 10.1 |
Operating lease liabilities | 3.3 | 3.6 |
Other current liabilities | 1.4 | 1.9 |
Current portion of long-term debt | 24.7 | 2.6 |
Current portion of finance lease liabilities | 0.6 | 0.1 |
Total current liabilities | 93.2 | 78.3 |
Long-term debt | 268.4 | 270.5 |
Long term finance lease liabilities | 0.5 | |
Deferred revenue, net of current portion | 13.9 | 17.7 |
Derivative liability | 1.6 | |
Operating lease liabilities | 9.2 | 5.2 |
Other long-term liabilities | 8.3 | 5.2 |
Total liabilities | 395.1 | 376.9 |
Commitments and contingencies | ||
Stockholders’ deficit | ||
Preferred stock value | ||
Common stock; $0.0001 par value; 49,000,000 shares authorized; 22,405,376 shares and 22,230,768 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | ||
Additional paid in capital | 348.6 | 346.6 |
Accumulated other comprehensive income | 42.7 | 45.1 |
Accumulated deficit | (483.1) | (441.2) |
Total stockholders’ deficit | (91.8) | (49.5) |
Total liabilities and stockholders’ deficit | 303.3 | 327.4 |
Series A Junior Participating Preferred stock | ||
Stockholders’ deficit | ||
Preferred stock value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, authorized | 49,000,000 | 49,000,000 |
Common stock, issued | 22,405,376 | 22,230,768 |
Common stock, outstanding | 22,405,376 | 22,230,768 |
Series A Junior Participating Preferred stock | ||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized | 1,000,000 | 1,000,000 |
Preferred stock, designated | 49,000 | 49,000 |
Preferred stock, issued | ||
Preferred stock, outstanding |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Total revenue | $ 15.6 | $ 26.7 | $ 67.9 | $ 60.4 |
Cost of sales, excluding depreciation and amortization: | ||||
Selling, general and administrative expenses | (10.6) | (12.8) | (39.7) | (27.5) |
Stock-based compensation expense | (1) | (2.3) | (2) | (4.4) |
Acquisition and integration related transaction expenses | (1.2) | (0.7) | (4.4) | (1.6) |
Depreciation and amortization | (13.3) | (9.1) | (25.9) | (18.8) |
Net operating loss | (13.9) | (4.5) | (21.1) | (5.2) |
Other (expense) income | ||||
Interest income | 0.1 | 0.1 | 0.4 | 0.1 |
Interest expense | (8.1) | (4) | (14.2) | (8.5) |
Change in fair value of earnout liability | (2.3) | |||
Change in fair value of derivative liability | (1.3) | (0.1) | ||
Loss from equity method investee | (0.5) | |||
Other finance income (expense) | (2.5) | (0.9) | (6.2) | 0.3 |
Total other expense, net | (10.5) | (6.1) | (20.5) | (10.5) |
Loss before income taxes | (24.4) | (10.6) | (41.6) | (15.7) |
Income tax expense | (0.1) | (0.1) | (0.3) | 0 |
Net loss | (24.5) | (10.7) | (41.9) | (15.7) |
Other comprehensive (loss)/income: | ||||
Foreign currency translation gain | 0.4 | 0.7 | 3.5 | 0.2 |
Change in fair value of hedging instrument | (0.8) | 2.4 | (2.3) | 0.3 |
Reclassification of gain on hedging instrument to comprehensive income | 0.3 | (2.6) | 0.7 | (1.1) |
Actuarial losses on pension plan | (8.7) | (2) | (4.3) | (1.1) |
Other comprehensive loss | (8.8) | (1.5) | (2.4) | (1.7) |
Comprehensive loss | $ (33.3) | $ (12.2) | $ (44.3) | $ (17.4) |
Net loss per common share – basic and diluted (in Dollars per share) | $ (1.09) | $ (0.48) | $ (1.87) | $ (0.73) |
Weighted average number of shares outstanding during the period – basic and diluted (in Shares) | 22,400,107 | 22,193,955 | 22,392,218 | 21,583,648 |
Service | ||||
Revenue: | ||||
Total revenue | $ 15.2 | $ 25.6 | $ 58.4 | $ 56.4 |
Cost of sales, excluding depreciation and amortization: | ||||
Cost of goods and services sold | (3.1) | (5.3) | (9.7) | (10.7) |
Hardware | ||||
Revenue: | ||||
Total revenue | 0.4 | 1.1 | 9.5 | 4 |
Cost of sales, excluding depreciation and amortization: | ||||
Cost of goods and services sold | $ (0.3) | $ (1) | $ (7.3) | $ (2.6) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) $ in Millions | Common stock | Additional paid in capital | Accumulated other comprehensive income | Accumulated deficit | Total |
Balance at Dec. 31, 2018 | $ 329.9 | $ 55.9 | $ (404.2) | $ (18.4) | |
Balance (in Shares) at Dec. 31, 2018 | 20,870,397 | ||||
Foreign currency translation adjustments | (0.5) | 0.5 | |||
Actuarial gains (losses) on pension plan | 0.9 | 0.9 | |||
Change in fair value of hedging instrument | (2.1) | (2.1) | |||
Reclassification of loss on hedging instrument to comprehensive income | 1.5 | 1.5 | |||
Shares issued in earnout | 8.6 | 8.6 | |||
Shares issued in earnout (in Shares) | 1,323,558 | ||||
Stock-based compensation expense | 1.7 | 1.7 | |||
Net loss | (5) | (5) | |||
Balance at Mar. 31, 2019 | 340.2 | 55.7 | (409.2) | (13.3) | |
Balance (in Shares) at Mar. 31, 2019 | 22,193,955 | ||||
Balance at Dec. 31, 2018 | 329.9 | 55.9 | (404.2) | (18.4) | |
Balance (in Shares) at Dec. 31, 2018 | 20,870,397 | ||||
Foreign currency translation adjustments | 0.2 | ||||
Actuarial gains (losses) on pension plan | (1.1) | ||||
Reclassification of loss on hedging instrument to comprehensive income | (1.1) | ||||
Net loss | (15.7) | ||||
Balance at Jun. 30, 2019 | 343.1 | 54.2 | (419.9) | (22.6) | |
Balance (in Shares) at Jun. 30, 2019 | 22,193,955 | ||||
Balance at Mar. 31, 2019 | 340.2 | 55.7 | (409.2) | (13.3) | |
Balance (in Shares) at Mar. 31, 2019 | 22,193,955 | ||||
Foreign currency translation adjustments | 0.7 | 0.7 | |||
Actuarial gains (losses) on pension plan | (2) | (2) | |||
Change in fair value of hedging instrument | 2.4 | 2.4 | |||
Reclassification of loss on hedging instrument to comprehensive income | (2.6) | (2.6) | |||
Conversion of awards previously classified as derivatives | 0.8 | 0.8 | |||
Stock-based compensation expense | 2.1 | 2.1 | |||
Net loss | (10.7) | (10.7) | |||
Balance at Jun. 30, 2019 | 343.1 | 54.2 | (419.9) | (22.6) | |
Balance (in Shares) at Jun. 30, 2019 | 22,193,955 | ||||
Balance at Dec. 31, 2019 | 346.6 | 45.1 | (441.2) | (49.5) | |
Balance (in Shares) at Dec. 31, 2019 | 22,230,768 | ||||
Foreign currency translation adjustments | 3.1 | 3.1 | |||
Actuarial gains (losses) on pension plan | 4.4 | 4.4 | |||
Change in fair value of hedging instrument | (1.5) | (1.5) | |||
Reclassification of loss on hedging instrument to comprehensive income | 0.4 | 0.4 | |||
Shares issued in net settlement of RSUs | |||||
Shares issued in net settlement of RSUs (in Shares) | 166,959 | ||||
Stock-based compensation expense | 1 | 1 | |||
Net loss | (17.4) | (17.4) | |||
Balance at Mar. 31, 2020 | 347.6 | 51.5 | (458.6) | (59.5) | |
Balance (in Shares) at Mar. 31, 2020 | 22,397,727 | ||||
Balance at Dec. 31, 2019 | 346.6 | 45.1 | (441.2) | (49.5) | |
Balance (in Shares) at Dec. 31, 2019 | 22,230,768 | ||||
Foreign currency translation adjustments | 3.5 | ||||
Actuarial gains (losses) on pension plan | (4.3) | ||||
Reclassification of loss on hedging instrument to comprehensive income | 0.7 | ||||
Net loss | (41.9) | ||||
Balance at Jun. 30, 2020 | 348.6 | 42.7 | (483.1) | (91.8) | |
Balance (in Shares) at Jun. 30, 2020 | 22,405,376 | ||||
Balance at Mar. 31, 2020 | 347.6 | 51.5 | (458.6) | (59.5) | |
Balance (in Shares) at Mar. 31, 2020 | 22,397,727 | ||||
Foreign currency translation adjustments | 0.4 | 0.4 | |||
Actuarial gains (losses) on pension plan | (8.7) | (8.7) | |||
Change in fair value of hedging instrument | (0.8) | (0.8) | |||
Reclassification of loss on hedging instrument to comprehensive income | 0.3 | 0.3 | |||
Stock-based compensation expense – ESPP | |||||
Stock-based compensation expense – ESPP (in Shares) | 7,649 | ||||
Stock-based compensation expense | 1 | 1 | |||
Net loss | (24.5) | (24.5) | |||
Balance at Jun. 30, 2020 | $ 348.6 | $ 42.7 | $ (483.1) | $ (91.8) | |
Balance (in Shares) at Jun. 30, 2020 | 22,405,376 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (41.9) | $ (15.7) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 25.9 | 18.8 |
Amortization of right of use asset | 2 | |
Stock-based compensation expense | 2 | 4.4 |
Change in fair value of derivative liability | 0.1 | |
Change in fair value of earnout liability | 2.3 | |
Impairment of investment in equity method investee | 0.7 | |
Foreign currency translation on senior bank debt | 6.6 | 0.3 |
Foreign currency translation on cross currency swaps | (0.6) | |
Reclassification of gain on hedging instrument to comprehensive income | 0.5 | |
Non-cash interest expense relating to senior debt | 1.2 | 0.9 |
Changes in assets and liabilities: | ||
Accounts receivable | 3.7 | 0.8 |
Inventory | (1.4) | (0.5) |
Prepaid expenses and other assets | 5.7 | 4.5 |
Corporate tax and other current taxes payable | 0.1 | (0.5) |
Accounts payable | 0.8 | 4.4 |
Deferred revenues and customer prepayment | (3.8) | (2.1) |
Accrued expenses | 9.3 | 2.4 |
Operating lease liabilities | (1.6) | |
Other long-term liabilities | 0.4 | 0.2 |
Net cash provided by operating activities | 10.2 | 19.7 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (8.8) | (2.2) |
Disposals of property and equipment | 0.2 | |
Purchases of capital software | (6.7) | (7.8) |
Net cash used in investing activities | (15.5) | (9.8) |
Cash flows from financing activities: | ||
Proceeds from issuance of revolver | 22.3 | 9.3 |
Debt fees incurred | (3.1) | |
Repayments of finance leases | (0.6) | (0.3) |
Net cash provided by financing activities | 18.6 | 9 |
Effect of exchange rate changes on cash | (2.5) | (1.2) |
Net increase in cash | 10.8 | 17.7 |
Cash, beginning of period | 29.1 | 16 |
Cash, end of period | 39.9 | 33.7 |
Supplemental cash flow disclosures | ||
Cash paid during the period for interest | 0.4 | 8.2 |
Cash paid during the period for income taxes | 0.1 | |
Cash paid during the period for operating leases | 1.2 | |
Supplemental disclosure of non-cash investing and financing activities | ||
Lease liabilities arising from obtaining right of use assets | (6.1) | |
Adjustment to goodwill arising from adjustment to fair value of assets acquired | (0.3) | |
Capitalized interest payments | 10.6 | |
Property and equipment acquired through finance lease | 1.5 | |
Additional paid in capital reclassified from derivative liability | $ 0.8 |
Nature of Operations, Managemen
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies | 1. Company Description and Nature of Operations Inspired Entertainment, Inc. (the “Company,” “we,” “our,” and “us”) is a global business-to-business gaming technology company, supplying Server Based Gaming (“SBG”) and Virtual Sports (which includes Interactive) systems to regulated lottery, betting and gaming operators worldwide through an “omni-channel” distribution strategy. We provide end-to-end digital gaming solutions on our proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices such as smartphones and tablets and online computer and social applications. Our products can be found in licensed betting offices, adult gaming centers, bingo halls, and through our Acquired Businesses (defined herein), in UK pubs, airports, motorway service areas, and leisure parks. Management Liquidity Plans As of June 30, 2020, the Company’s cash on hand was $39.9 million, and the Company had working capital of $1.3 million. The Company recorded net losses of $41.9 million and $15.7 million for the six months ended June 30, 2020 and 2019, respectively. Net losses include non-cash stock-based compensation of $2.0 million and $4.4 million for the six months ended June 30, 2020 and 2019, respectively. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $10.2 million and $19.7 million for the six months ended June 30, 2020 and 2019, respectively. Working capital of $1.3 million includes a non-cash settled item of $9.2 million of deferred income. Management currently believes that, absent any unanticipated coronavirus (“COVID-19”) impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through August 2021. Our business is being, and will continue to be, adversely affected by the rapidly expanding nature of the COVID-19 pandemic. Whilst the majority of venues offering land-based gaming, including our products, have now re-opened, social distancing measures have impacted the ability of some venues to operate to the same capacity. In addition, the risk of there being a “second wave” or other additional periods of increases or spikes in the number of COVID-19 cases in areas in which we operate, which could see the government re-impose restrictions on, or changes to, our operations up to and including complete or partial closures of retail venues, and the long-term impacts of the pandemic on the global economy, trade relations, consumer behavior, our industry and our business operations, remains. Due to the closure of land-based revenues we saw a significant increase in our online revenues from slots and virtual sports and following the success of this area of the business and the successful re-opening of various revenue streams, the Company repaid £10 million ($12.4 million) of the revolving credit facility subsequent to the end of the period, on July 14, 2020. There is a risk of further shutdowns in certain markets if COVID-19 cases increase. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2019 and 2018. The financial information as of December 31, 2019 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2020. The interim results for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any future interim periods. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 2. Inventory Inventory consists of the following: June 30, December 31, 2019 (in millions) Component parts $ 13.3 $ 12.7 Work in progress 1.5 2.1 Finished goods 4.2 4.0 Total inventories $ 19.0 $ 18.8 Component parts include parts for gaming terminals. Included in inventory are reserves for excess and slow-moving inventory of $1.2 million and $0.9 million as of June 30, 2020 and December 31, 2019, respectively. Our finished goods inventory primarily consists of gaming terminals which are ready for sale. |
Contract Liabilities and Other
Contract Liabilities and Other Disclosures | 6 Months Ended |
Jun. 30, 2020 | |
Contract Liabilities And Other Disclosures [Abstract] | |
Contract Liabilities and Other Disclosures | 3. Contract Liabilities and Other Disclosures The following table summarizes contract related balances: Accounts Unbilled Deferred Customer (in millions) At June 30, 2020 $ 19.7 $ 7.4 $ (24.0 ) $ (0.9 ) At December 31, 2019 $ 24.5 $ 15.3 $ (27.8 ) $ (1.9 ) At December 31, 2018 $ 11.5 $ 11.0 $ (32.0 ) $ (3.6 ) Revenue recognized that was included in the deferred income balance at the beginning of the period amounted to $5.9 million and $9.6 million for the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. |
Long Term and Other Debt
Long Term and Other Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long Term and Other Debt | 4. Long Term and Other Debt On September 27, 2019, the Company, together with certain direct and indirect wholly-owned subsidiaries, entered into a Senior Facilities Agreement (the “SFA”) with Lucid Agency Services Limited, as agent, Nomura International plc and Macquarie Corporate Holdings Pty Limited (UK Branch) as arrangers and/or bookrunners and each lender party thereto (the “Lenders”), pursuant to which the Lenders agreed to provide, subject to certain conditions, two tranches of senior secured term loans (the “Term Loans”), in an original principal amount of £140.0 million ($173.0 million) and €90.0 million ($101.1 million), respectively and a secured revolving facility loan in an original principal amount of £20.0 million ($24.7 million). On June 25, 2020, the Company, certain direct and indirect subsidiaries of the Company, Lucid Agency Services Limited, and Lucid Trustee Services Limited as security agent under the SFA and the Intercreditor Agreement (as defined in the SFA), entered into an Amendment and Restatement Agreement (the “ARA”) with respect to the SFA. The ARA amends the SFA by, among other things, (i) capitalizing certain interest payments that fell due on April 1, 2020, (ii) resetting the leverage and capital expenditure financial covenants applicable under the SFA, removing certain rating requirements under the SFA, (iii) allowing the Company and its subsidiaries to incur additional indebtedness under the UK Coronavirus Large Business Interruption Loan Scheme under a stand-alone facility, which may rank pari passu In consideration for the amendments listed above, the Company agreed to pay the Lenders an amendment fee equal to 1% of the Total Commitments (as defined in the SFA) after giving effect to the capitalization of the interest payment described above. The amendment fee is payable to the Lenders pro rata to their commitments under the SFA. The modification to the SFA is not considered to be substantial in accordance with Topic 470-50 and has therefore not been treated as a debt extinguishment. The amendment fees, amounting to $3.1 million, are associated with the modified debt instrument and will be amortized along with the existing unamortized debt issuance costs. Fees payable to third parties are expensed as incurred, resulting in $1.0 million charged to interest expense for the three months ended June 30, 2020. There were no breaches of the debt covenants in the periods ended June 30, 2020 and December 31, 2019. Outstanding Debt and Finance Leases The following reflects outstanding debt as of June 30, 2020: Principal Unamortized Book value, (in millions) Senior bank debt $ 309.5 $ (16.4 ) $ 293.1 Finance lease liabilities 1.1 — 1.1 Total long-term debt outstanding 310.6 (16.4 ) 294.2 Less: current portion of long-term debt (25.3 ) — (25.3 ) Long-term debt, excluding current portion $ 285.3 $ (16.4 ) $ 268.9 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 5. Derivatives and Hedging Activities On January 15, 2020, the Company entered into two interest rate swaps with UBS AG designed to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the current floating rate debt facilities. The swaps fix the variable interest rate of the current debt facilities and provide protection over potential interest rate increases by providing a fixed rate of interest payment in return. These interest rate swaps are for £95 million at a fixed rate of 0.9255% based on the 6-month LIBOR rate and for €60 million at a fixed rate of 0.102% based on the 6 month EUROLIBOR rate and are effective until maturity on October 1, 2023. Hedges of Multiple Risks The Company’s objectives in using interest rate derivatives are to add stability to interest and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in Accumulated Other Comprehensive Income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $1.5 million will be reclassified as an increase to interest expense. As of June 30, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Number of Notional Interest rate swaps 2 £95 million at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million at a fixed rate of 0.102% based on the 6 month EUROLIBOR rate The table below presents the fair value of the Company’s derivative financial instruments as well as their classification in the consolidated balance sheet as of June 30, 2020. Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Other Current Liabilities and long term Derivative Liability $ (2.1 ) Total derivatives designated as hedging instruments $ — $ (2.1 ) The table below presents the effect of fair value and cash flow hedge accounting on Accumulated Other Comprehensive Income for the six months ended June 30, 2020. Amount of Gain/(Loss) Location of (in millions) (in millions) Interest Rate and Foreign Exchange Products $ (2.3 ) Interest Expense $ (0.7 ) Total $ (2.3 ) $ (0.7 ) The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Operations for the six months ended June 30, 2020. Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 14.2 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.7 ) The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the consolidated balance sheet. The ISDA Master Agreement between Gaming Acquisitions Limited, a wholly-owned subsidiary of the Company, and UBS AG is documented using the 2002 Form and the ISDA standard set-off provision in Section 6(f) of the ISDA Master Agreement apply to both parties and is only modified to include Affiliates of the Payee. There is no CSA and thus there is no collateral posting. Offsetting of Derivative Assets June 30, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — Offsetting of Derivative Liabilities June 30, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ 2.1 $ — $ 2.1 $ — $ — $ — Credit-risk-related Contingent Features The Company has entered into an industry standard ISDA Master Agreement, with a negotiated Scheduled thereto (the “ISDA Agreement”), with the counterparty to its derivative transactions and which ISDA Agreement sets forth various provisions which govern the trading relationship between the Company and its counterparty. Such provisions include certain events which, if triggered by either party, may give rise to an acceleration of the ISDA Agreement, thus triggering the exchange of a breakage payment between the parties. The ISDA Agreement with the Company’s derivative counterparty contains a provision where the Company could be declared in default on its derivative obligations if, among others, its repayment of the underlying indebtedness is accelerated by the lender due to the Company’s default on the indebtedness. The ISDA Agreement can also be accelerated if Lucid Trustee Services Limited requests or requires that the lender terminates or closes-out any Transaction under the ISDA Agreement pursuant to Clause 4.10 of the Intercreditor Agreement between primarily the Company, Lucid Agency Services as Senior Agent and Lucid Trustee Services Limited as Security Agent; in the event of certain refinancing circumstances; and in the event of certain reductions in the principal with respect to amounts loaned under the Senior Facilities Agreement. As of June 30, 2020, the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to the ISDA Agreements was $2.1 million. As of June 30, 2020, the Company has not posted any collateral related to the ISDA Agreement, as no collateral is required under the terms of such ISDA Agreement. If the Company had breached any of the provision under the ISDA Agreement which resulted in an acceleration of the ISDA Agreement at June 30, 2020, it could have been required to settle its obligations under the ISDA Agreement at its termination value of $2.5 million |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset and liability in an orderly transaction between market participants at the measurement date. We estimate the fair value of our assets and liabilities utilizing an established three-level hierarchy. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated with observable market data for substantially the full term of the assets or liabilities. Level 2 inputs also include non-binding market consensus prices that can be corroborated with observable market data, as well as quoted prices that were adjusted for security-specific restrictions. Level 3: Unobservable inputs that are supported by little or no market activity that are significant to the fair value of the asset or liability. Level 3 inputs also include non-binding market consensus prices or non-binding broker quotes that are unable to be corroborated with observable market data. The fair value of our financial assets and liabilities is determined by reference to market data and other valuation techniques as appropriate. We believe the fair value of our financial instruments approximates their recorded values. For each period, derivative financial instrument assets and liabilities measured at fair value on a recurring basis are included in the financial statements as per the table below. June 30, December 31, Level 2020 2019 (in millions) Derivative liability (see Note 5) 2 $ 2.1 $ — Long term receivable (included in other assets) 2 $ 1.3 $ 1.5 Level 3 liabilities are valued using unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the derivative liabilities. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s principal financial officer, who reports to the principal executive officer, determines its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s Principal Financial Officer and approved by the Principal Executive Officer. At June 30, 2020 and December 31, 2019, there were no transfers in or out of Level 3 from other levels in the fair value hierarchy. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | 7. Stock-Based Compensation The Company’s stock-based compensation plans authorize awards of restricted stock units (“RSUs”), stock options and other equity-related awards. In May 2019, in conjunction with the Company’s stockholders approving the 2018 Omnibus Incentive Plan (the “2018 Plan”), which authorizes a total of 2,550,000 shares to be issued pursuant to awards thereunder, the balances available for awards under the Company’s predecessor plans (i.e., the 2016 Long-Term Incentive Plan and the Second Long-Term Incentive Plan) (collectively, the “Prior Plans”) were terminated. Although outstanding awards under the Prior Plans remain governed by the terms of the Prior Plans, no new awards will be granted or become available for grant under the Prior Plans. As of June 30, 2020, there were (i) 2,429,011 shares subject to outstanding awards under the Prior Plans, including 1,092,633 shares subject to market-price vesting conditions, and (ii) 1,139,739 shares subject to outstanding awards under the 2018 Plan, including 100,000 shares subject to performance-based target awards and 241,077 shares subject to awards that were previously subject to performance criteria that were determined to be met in June 2020 (at a level equal to approximately 87% of the target awards) which awards continue to remain subject to a time-based vesting schedule. As of June 30, 2020, there were 1,136,945 shares available for new awards under the 2018 Plan and no shares available for new awards under the Prior Plans. All awards consist of RSUs and Restricted Stock. The Company also has an employee stock purchase plan (“ESPP”) that authorizes the issuance of up to an aggregate of 500,000 shares of common stock pursuant to purchases thereunder by employees. The ESPP, which was approved by stockholders in July 2017, is administered by the Compensation Committee which has discretion to designate the length of offering periods and other terms subject to the requirements of the ESPP. The Company held a twelve-month offering period under the ESPP that began on June 3, 2019 and ended on June 2, 2020. This offering period authorized employees to contribute up to 10% of their base compensation to purchase a maximum of 1,000 shares at a discounted purchase price that would be equal 85% of the lower of: (i) the closing price at the beginning of the offering period and (ii) the closing price at the end of the offering period. A total of 7,649 shares were purchased on the last day of the offering period, June 2, 2020, at a discounted price of $3.2215 per share. As of June 30, 2020, a total of 467,751shares remain available for purchase under the ESPP. A summary of the Company’s RSU activity during the six months ended June 30, 2020 is as follows: Number of Unvested Outstanding at January 1, 2020 1,571,964 Granted 247,405 Forfeited (47,613 ) Vested (198,701 ) Unvested Outstanding at June 30, 2020 1,573,055 In addition, the Company issued a total of 166,959 shares during the six months ended June 30, 2020 in connection with the net settlement of RSUs that vested on December 31, 2019. Stock-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. For performance awards that are contingent upon the Company achieving certain pre-determined financial performance targets, compensation expense is calculated based on the number of shares expected to vest after assessing the probability that the performance criteria will be met. Determining the probability of achieving a performance target requires estimates and judgment. The Company recognized stock-based compensation expense for Restricted Stock and RSUs amounting to $1.0 million and $2.3 million for the three months ended June 30, 2020 and 2019, respectively, and $2.0 million and $4.4 million for the six months ended June 30, 2020 and 2019, respectively. Total unrecognized compensation expense related to unvested stock awards and unvested RSUs at June 30, 2020 amounts to $5.9 million and is expected to be recognized over a weighted average period of 1.7 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss (Income) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Loss (Income) [Abstract] | |
Accumulated Other Comprehensive Loss (Income) | 8. Accumulated Other Comprehensive Loss (Income) The accumulated balances for each classification of comprehensive loss (income) are presented below: Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2020 $ (76.5 ) $ 1.4 $ 30.0 $ (45.1 ) Change during the period (3.1 ) 1.1 (4.4 ) (6.4 ) Balance at March 31, 2020 (79.6 ) 2.5 25.6 (51.5 ) Change during the period (0.4 ) 0.5 8.7 8.8 Balance at June 30, 2020 $ (80.0 ) $ 3.0 $ 34.3 $ (42.7 ) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2019 $ (78.9 ) $ (0.1 ) $ 23.1 $ (55.9 ) Change during the period 0.5 0.6 (0.9 ) 0.2 Balance at March 31, 2019 (78.4 ) 0.5 22.2 (55.7 ) Change during the period (0.7 ) 0.2 2.0 1.5 Balance at June 30, 2019 $ (79.1 ) $ 0.7 $ 24.2 $ (54.2 ) Included within accumulated other comprehensive income is an amount of $0.9 million relating to the change in fair value of discontinued hedging instruments. This amount will be amortized as a charge to income over the life of the original instrument, to August 2021 in accordance with US GAAP. The remaining $2.1 million relates to currently active hedging instruments. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 9. Net Loss per Share Basic loss per share (“EPS”) is computed by dividing net loss available to common stockholders by the weighted average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including stock options, restricted stock, RSUs and warrants, using the treasury stock method, and convertible debt or convertible preferred stock, using the if-converted method. Diluted EPS excludes all dilutive potential of shares of common stock if their effect is anti-dilutive. The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because their inclusion would be anti-dilutive: Three and Six Months Ended 2020 2019 RSUs 2,944,634 3,066,697 Unvested Restricted Stock 624,116 624,116 Stock Warrants 9,539,565 9,539,565 13,108,315 13,230,378 |
Other Finance Income (Costs)
Other Finance Income (Costs) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Other Finance Income (Costs) | 10. Other Finance Income (Costs) Other finance income (costs) consisted of the following for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Pension interest cost $ (0.5 ) $ (0.7 ) $ (1.1 ) $ (1.4 ) Expected return on pension plan assets 0.7 0.9 1.5 1.8 Foreign currency translation on senior bank debt (2.7 ) (3.2 ) (6.6 ) (0.3 ) Foreign currency remeasurement on hedging instrument — 2.1 — 0.2 $ (2.5 ) $ (0.9 ) $ (6.2 ) $ 0.3 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The effective income tax rate for the three months ended June 30, 2020 and 2019 was 0.4% and 0.9%, respectively, resulting in a $0.1 million income tax expense in both periods. The effective income tax rate for the six months ended June 30, 2020 and 2019 was 0.7% and 0.0%, respectively, resulting in a $0.3 million and $0.0 million income tax expense, respectively. The Company’s effective income tax rate has fluctuated primarily as a result of the income mix between jurisdictions. The income tax expense for the three and six months ended June 30, 2020 and 2019 differs from the amount that would be expected after applying the statutory U.S. federal income tax rate primarily due to pre-tax losses for which no tax benefit can be recorded, and foreign earnings being taxed at rates different than the US statutory rate. |
Related Parties
Related Parties | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 12. Related Parties Macquarie Corporate Holdings Pty Limited (UK Branch) (“Macquarie UK”), is an affiliate of MIHI LLC, the beneficial owner of approximately 16.75% of our common stock. Macquarie UK is one of the lending parties with respect to our senior secured term loans and revolving credit facility under our senior facilities agreement dated September 27, 2019, as amended and restated on June 25, 2020 (the “SFA”) (see Note 4). The portion of the total loans of $309.5 million under these facilities held by Macquarie UK at June 30, 2020 was $27.9 million. Interest expense payable to Macquarie UK for the three months ended June 30, 2020 and 2019 amounted to $0.6 million and $0.0 million, respectively, and for the six months ended June 30, 2020 and 2019 amounted to $1.1 million and $0.0 million, respectively. In addition, $0.5 million of a total $6.0 million of accrued interest payable was due to Macquarie UK at June 30, 2020, and Macquarie UK received $0.3 million of the total $3.1 million of SFA amendment fees paid (see Note 4). MIHI LLC, is also a party to a stockholders agreement with the Company and other stockholders, dated December 23, 2016, pursuant to which, subject to certain conditions, MIHI LLC, jointly with Hydra Industries Sponsor LLC, are permitted to designate two directors to be nominated for election as directors of the Company at any annual or special meeting of stockholders at which directors are to be elected, until such time as MIHI LLC and Hydra Industries Sponsor LLC in the aggregate hold less than 5% of the outstanding shares of the Company. The Company held a 40% non-controlling equity interest in Innov8 Gaming Limited (“Innov8”) from October 2019 until April 2020 when the Company disposed of its interest. Revenue earned from Innov8 while a related party for the six months ended June 30, 2020 and 2019 amounted to $0.6 million and $0.0 million, respectively and purchases from Innov8 while a related party for the six months ended June 30, 2020 and 2019 amounted to $0.2 million and $0.0 million, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Leases | 13. Leases The Company is party to leases with third parties with respect to various gaming machines. Gaming machine leases typically include a lease (of the machine) and a non-lease (provision of software services) component. The components of lease income were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Interest receivable from sales type leases $ — $ — $ — $ — Operating lease income — — 1.0 — Variable income from sales type leases — — 0.2 — $ — $ — $ 1.2 $ — |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 14. Commitments and Contingencies Legal Matters From time to time, the Company may become involved in lawsuits and legal matters arising in the ordinary course of business. While the Company believes that, currently, it has no such matters that are material, there can be no assurance that existing or new matters arising in the ordinary course of business will not have a material adverse effect on the Company’s business, financial condition or results of operations. |
Pension Plan
Pension Plan | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension Plan | 15. Pension Plan We operate both defined benefit and defined contributions pension schemes in the UK. The defined contribution scheme assets are held separately from those of the Company in an independently administered fund. The defined benefit section has been closed to new entrants since April 1, 1999 and closed to future accruals for services rendered to the Company for the entire financial statement periods presented. On March 15, 2019, it was agreed that no further deficit reduction contributions shall be made to the scheme, except in the event that the scheme funding level does not progress as expected, in which case contingent contributions would be made subject to an agreed maximum amount. It was determined that contingent contributions of $1.1 million and expense contributions of $0.4 million would be payable during the year ended December 31, 2020, with agreement reached with the trustees of the scheme to defer $0.4 million of the contingent contributions into the year to December 31, 2021 The funding level of the scheme will next be tested against the expected position at December 31, 2020 to determine whether further contingent contributions are payable over the year to December 31, 2021. The total amount of employer contributions paid during the six months ended June 30, 2020 amounted to $0.1 million. The following table presents the components of our net periodic pension benefit cost: Six Months Ended 2020 2019 (in millions) Components of net periodic pension benefit cost: Interest cost $ 1.1 $ 1.4 Expected return on plan assets (1.5 ) (1.8 ) Net periodic benefit $ (0.4 ) $ (0.4 ) The following table sets forth the estimate of the combined funded status of the pension plans and their reconciliation to the related amounts recognized in our consolidated financial statements at the respective measurement dates: June 30, 2020 December 31, (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 110.4 $ 94.1 Interest cost 1.1 2.7 Prior service cost — — Actuarial loss 7.2 14.1 Benefits paid (1.3 ) (4.2 ) Foreign currency translation adjustments (6.9 ) 3.7 Benefit obligation at end of period $ 110.5 $ 110.4 Change in plan assets: Fair value of plan assets at beginning of period $ 107.3 $ 97.4 Actual gain on plan assets 4.0 10.3 Employer contributions 0.1 0.2 Benefits paid (1.3 ) (4.2 ) Foreign currency translation adjustments (6.8 ) 3.6 Fair value of assets at end of period $ 103.3 $ 107.3 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (7.2 ) $ (3.1 ) Net amount recognized $ (7.2 ) $ (3.1 ) |
Segment Reporting and Geographi
Segment Reporting and Geographic Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting and Geographic Information | 16. Segment Reporting and Geographic Information The Company operates its business along three operating segments, which are segregated based on revenue stream: Service Based Gaming, Virtual Sports (which includes Interactive) and Acquired Businesses. The Company believes this method of segment reporting reflects both the way its business segments are managed and the way the performance of each segment is evaluated. The following tables present revenue, cost of sales, excluding depreciation and amortization, selling, general and administrative expenses, depreciation and amortization, stock-based compensation expense and acquisition related transaction expenses, operating profit/(loss), total assets and total capital expenditures for the periods ended June 30, 2020 and 2019, respectively, by business segment. Certain unallocated corporate function costs have not been allocated to the Company’s reportable operating segments because these costs are not allocable and to do so would not be practical. Corporate function costs consist primarily of selling, general and administrative expenses, depreciation and amortization, capital expenditures, cash, prepaid expenses and property and equipment and software development costs relating to corporate/shared functions. Segment Information Three Months Ended June 30, 2020 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 3.6 $ 9.8 $ 1.8 $ — $ — $ 15.2 Hardware 0.4 — — — — 0.4 Total revenue 4.0 9.8 1.8 — — 15.6 Cost of sales, excluding depreciation and amortization: Cost of service (1.0 ) (1.2 ) (0.9 ) — — (3.1 ) Cost of hardware (0.3 ) — — — — (0.3 ) Selling, general and administrative expenses (2.0 ) (1.1 ) (3.6 ) — (3.9 ) (10.6 ) Stock-based compensation expense (0.1 ) (0.1 ) — — (0.8 ) (1.0 ) Acquisition and integration related transaction expenses — — — — (1.2 ) (1.2 ) Depreciation and amortization (6.0 ) (1.4 ) (5.6 ) — (0.3 ) (13.3 ) Segment operating income (loss) (5.4 ) 6.0 (8.3 ) — (6.2 ) (13.9 ) Net operating loss $ (13.9 ) Total assets at June 30, 2020 $ 64.2 $ 64.7 $ 135.7 $ — $ 38.7 $ 303.3 Total goodwill at June 30, 2020 $ — $ 43.4 $ 32.0 $ — $ — $ 75.4 Total capital expenditures for the three months ended June 30, 2020 $ 0.5 $ 2.0 $ 0.5 $ — $ 0.6 $ 3.6 Three Months Ended June 30, 2019 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 16.4 $ 9.2 $ — $ — $ — $ 25.6 Hardware 1.1 — — — — 1.1 Total revenue 17.5 9.2 — — — 26.7 Cost of sales, excluding depreciation and amortization: — — Cost of service (4.4 ) (0.9 ) — — — (5.3 ) Cost of hardware (1.0 ) — — — — (1.0 ) Selling, general and administrative expenses (6.0 ) (2.1 ) — — (4.7 ) (12.8 ) Stock-based compensation expense (0.5 ) (0.3 ) — — (1.5 ) (2.3 ) Acquisition and integration related transaction expenses — — — — (0.7 ) (0.7 ) Depreciation and amortization (7.2 ) (1.4 ) — — (0.5 ) (9.1 ) Segment operating income (loss) (1.6 ) 4.5 — — (7.4 ) (4.5 ) Net operating loss $ (4.5 ) Total assets at December 31, 2019 $ 80.8 $ 66.8 $ 156.7 $ — $ 23.1 $ 327.4 Total goodwill at December 31, 2019 $ — $ 46.4 $ 34.5 $ — $ — $ 80.9 Total capital expenditures for the three months ended June 30, 2019 $ 2.1 $ 1.6 $ — $ — $ 0.5 $ 4.2 Six Months Ended June 30, 2020 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 17.0 $ 18.8 $ 23.2 $ (0.6 ) $ — $ 58.4 Hardware 3.7 — 6.0 (0.2 ) — 9.5 Total revenue 20.7 18.8 29.1 (0.8 ) — 67.9 Cost of sales, excluding depreciation and amortization: Cost of service (4.6 ) (2.1 ) (3.6 ) 0.6 — (9.7 ) Cost of hardware (2.1 ) — (5.2 ) — — (7.3 ) Selling, general and administrative expenses (7.0 ) (2.8 ) (20.5 ) — (9.4 ) (39.7 ) Stock-based compensation expense (0.3 ) (0.2 ) — — (1.5 ) (2.0 ) Acquisition and integration related transaction expenses — — — — (4.4 ) (4.4 ) Depreciation and amortization (12.2 ) (2.8 ) (10.4 ) — (0.5 ) (25.9 ) Segment operating income (loss) (5.5 ) 10.9 (10.5 ) (0.2 ) (15.8 ) (21.1 ) Net operating loss $ (21.1 ) Total capital expenditures for the six months ended June 30, 2020 $ 1.6 $ 3.6 $ 7.3 $ — $ 2.9 $ 15.4 Six Months Ended June 30, 2019 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 37.2 $ 19.2 $ — $ — $ — $ 56.4 Hardware 4.0 — — — — 4.0 Total revenue 41.2 19.2 — — — 60.4 Cost of sales, excluding depreciation and amortization: Cost of service (8.8 ) (1.9 ) — — — (10.7 ) Cost of hardware (2.6 ) — — — — (2.6 ) Selling, general and administrative expenses (12.6 ) (4.3 ) — — (10.6 ) (27.5 ) Stock-based compensation expense (0.9 ) (0.6 ) — — (2.9 ) (4.4 ) Acquisition and integration related transaction expenses — — — — (1.6 ) (1.6 ) Depreciation and amortization (14.9 ) (2.9 ) — — (1.0 ) (18.8 ) Segment operating income (loss) 1.4 9.5 — — (16.1 ) (5.2 ) Net operating loss $ (5.2 ) Total capital expenditures for the six months ended June 30, 2019 $ 5.0 $ 3.0 $ — $ — $ 0.7 $ 8.7 Geographic Information Geographic information for revenue is set forth below: Three Months Ended Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Total revenue UK $ 9.2 $ 15.5 $ 47.6 $ 37.7 Greece 2.6 4.8 7.4 9.6 Italy 1.4 4.2 3.6 8.4 Rest of world 2.4 2.2 9.3 4.7 Total $ 15.6 $ 26.7 $ 67.9 $ 60.4 Geographic information of our non-current assets excluding goodwill is set forth below: June 30, 2020 December 31, (in millions) UK $ 101.9 $ 116.1 Greece 21.4 26.5 Italy 2.2 2.3 Rest of world 7.9 6.3 Total $ 133.4 $ 151.2 Software development costs are included as attributable to the market in which they are utilized. |
Customer Concentration
Customer Concentration | 6 Months Ended |
Jun. 30, 2020 | |
Risks and Uncertainties [Abstract] | |
Customer Concentration | 17. Customer Concentration During the three months ended June 30, 2020, two customers represented at least 10% of the Company’s revenues, accounting for 25% and 18% of the Company’s revenues. The customer that accounted for 25% of the Company’s revenues was served by the Virtual Sports segment, the customer that accounted for 10% of the Company’s revenues was served by both the Server Based Gaming and Virtual Sports segments. During the three months ended June 30, 2019, three customers represented at least 10% of revenues, accounting for 19%, 16% and 10% of the Company’s revenues. All three customers were served by both the Server Based Gaming and Virtual Sports segments. During the six months ended June 30, 2020, one customer represented at least 10% of the Company’s revenues, accounting for 10% of the Company’s revenues. During the six months ended June 30, 2019, three customers represented at least 10% of revenues, accounting for 21%, 15% and 11% of the Company’s revenues. All these customers were served by both the Server Based Gaming and Virtual Sports segments. At June 30, 2020 and December 31, 2019, there were no customers that represented at least 10% of accounts receivable. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the financial statements were issued. Based upon this review, the Company did not identify subsequent events that would have required adjustment or disclosure in the consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Company Description and Nature of Operations | Company Description and Nature of Operations Inspired Entertainment, Inc. (the “Company,” “we,” “our,” and “us”) is a global business-to-business gaming technology company, supplying Server Based Gaming (“SBG”) and Virtual Sports (which includes Interactive) systems to regulated lottery, betting and gaming operators worldwide through an “omni-channel” distribution strategy. We provide end-to-end digital gaming solutions on our proprietary and secure network, which accommodates a wide range of devices, including land-based gaming machine terminals, mobile devices such as smartphones and tablets and online computer and social applications. Our products can be found in licensed betting offices, adult gaming centers, bingo halls, and through our Acquired Businesses (defined herein), in UK pubs, airports, motorway service areas, and leisure parks. |
Management Liquidity Plans | Management Liquidity Plans As of June 30, 2020, the Company’s cash on hand was $39.9 million, and the Company had working capital of $1.3 million. The Company recorded net losses of $41.9 million and $15.7 million for the six months ended June 30, 2020 and 2019, respectively. Net losses include non-cash stock-based compensation of $2.0 million and $4.4 million for the six months ended June 30, 2020 and 2019, respectively. Historically, the Company has generally had positive cash flows from operating activities and has relied on a combination of cash flows provided by operations and the incurrence of debt and/or the refinancing of existing debt to fund its obligations. Cash flows provided by operations amounted to $10.2 million and $19.7 million for the six months ended June 30, 2020 and 2019, respectively. Working capital of $1.3 million includes a non-cash settled item of $9.2 million of deferred income. Management currently believes that, absent any unanticipated coronavirus (“COVID-19”) impact (see below), the Company’s cash balances on hand, cash flows expected to be generated from operations, ability to control and defer capital projects and amounts available from the Company’s external borrowings will be sufficient to fund the Company’s net cash requirements through August 2021. Our business is being, and will continue to be, adversely affected by the rapidly expanding nature of the COVID-19 pandemic. Whilst the majority of venues offering land-based gaming, including our products, have now re-opened, social distancing measures have impacted the ability of some venues to operate to the same capacity. In addition, the risk of there being a “second wave” or other additional periods of increases or spikes in the number of COVID-19 cases in areas in which we operate, which could see the government re-impose restrictions on, or changes to, our operations up to and including complete or partial closures of retail venues, and the long-term impacts of the pandemic on the global economy, trade relations, consumer behavior, our industry and our business operations, remains. Due to the closure of land-based revenues we saw a significant increase in our online revenues from slots and virtual sports and following the success of this area of the business and the successful re-opening of various revenue streams, the Company repaid £10 million ($12.4 million) of the revolving credit facility subsequent to the end of the period, on July 14, 2020. There is a risk of further shutdowns in certain markets if COVID-19 cases increase. |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and pursuant to the instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion, however, that the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the years ended December 31, 2019 and 2018. The financial information as of December 31, 2019 is derived from the audited consolidated financial statements presented in the Company’s Annual Report on Form 10-K filed with the SEC on March 30, 2020. The interim results for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the year ending December 31, 2020 or for any future interim periods. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | June 30, December 31, 2019 (in millions) Component parts $ 13.3 $ 12.7 Work in progress 1.5 2.1 Finished goods 4.2 4.0 Total inventories $ 19.0 $ 18.8 |
Contract Liabilities and Othe_2
Contract Liabilities and Other Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Contract Liabilities And Other Disclosures [Abstract] | |
Schedule of contract related balances | Accounts Unbilled Deferred Customer (in millions) At June 30, 2020 $ 19.7 $ 7.4 $ (24.0 ) $ (0.9 ) At December 31, 2019 $ 24.5 $ 15.3 $ (27.8 ) $ (1.9 ) At December 31, 2018 $ 11.5 $ 11.0 $ (32.0 ) $ (3.6 ) |
Long Term and Other Debt (Table
Long Term and Other Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding debt | Principal Unamortized Book value, (in millions) Senior bank debt $ 309.5 $ (16.4 ) $ 293.1 Finance lease liabilities 1.1 — 1.1 Total long-term debt outstanding 310.6 (16.4 ) 294.2 Less: current portion of long-term debt (25.3 ) — (25.3 ) Long-term debt, excluding current portion $ 285.3 $ (16.4 ) $ 268.9 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding interest rate derivatives that were designated as cash flow hedges | Interest Rate Derivative Number of Notional Interest rate swaps 2 £95 million at a fixed rate of 0.9255% based on the 6-month LIBOR rate and €60 million at a fixed rate of 0.102% based on the 6 month EUROLIBOR rate |
Schedule of fair value of derivative financial instruments | Balance Sheet Asset Balance Sheet Liability (in millions) (in millions) Derivatives designated as hedging instruments: Interest Rate Products Fair Value of Hedging Instruments $ — Other Current Liabilities and long term Derivative Liability $ (2.1 ) Total derivatives designated as hedging instruments $ — $ (2.1 ) |
Schedule of accumulated other comprehensive income | Amount of Gain/(Loss) Location of (in millions) (in millions) Interest Rate and Foreign Exchange Products $ (2.3 ) Interest Expense $ (0.7 ) Total $ (2.3 ) $ (0.7 ) |
Schedule of consolidated income statements | Interest (in millions) Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded $ 14.2 Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 $ (0.7 ) |
Schedule of offsetting of derivative assets | Offsetting of Derivative Assets June 30, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ — $ — $ — $ — $ — $ — |
Schedule of offsetting of derivative liabilities | Offsetting of Derivative Liabilities June 30, 2020 Gross Amounts Not Offset in the Gross Gross Net Amounts Financial Cash Net (in millions) Fair value of hedging instrument $ 2.1 $ — $ 2.1 $ — $ — $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivative financial instrument assets and liabilities measured at fair value on a recurring basis | June 30, December 31, Level 2020 2019 (in millions) Derivative liability (see Note 5) 2 $ 2.1 $ — Long term receivable (included in other assets) 2 $ 1.3 $ 1.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of restricted stock unit activity | Number of Unvested Outstanding at January 1, 2020 1,571,964 Granted 247,405 Forfeited (47,613 ) Vested (198,701 ) Unvested Outstanding at June 30, 2020 1,573,055 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Income) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accumulated other comprehensive (loss) income | Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2020 $ (76.5 ) $ 1.4 $ 30.0 $ (45.1 ) Change during the period (3.1 ) 1.1 (4.4 ) (6.4 ) Balance at March 31, 2020 (79.6 ) 2.5 25.6 (51.5 ) Change during the period (0.4 ) 0.5 8.7 8.8 Balance at June 30, 2020 $ (80.0 ) $ 3.0 $ 34.3 $ (42.7 ) Foreign Currency Translation Adjustments Change in Fair Value of Hedging Instrument Unrecognized Pension Benefit Costs Accumulated Other Comprehensive (Income) (in millions) Balance at January 1, 2019 $ (78.9 ) $ (0.1 ) $ 23.1 $ (55.9 ) Change during the period 0.5 0.6 (0.9 ) 0.2 Balance at March 31, 2019 (78.4 ) 0.5 22.2 (55.7 ) Change during the period (0.7 ) 0.2 2.0 1.5 Balance at June 30, 2019 $ (79.1 ) $ 0.7 $ 24.2 $ (54.2 ) |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of anti-dilutive securities excluded from computation of earnings per share | Three and Six Months Ended 2020 2019 RSUs 2,944,634 3,066,697 Unvested Restricted Stock 624,116 624,116 Stock Warrants 9,539,565 9,539,565 13,108,315 13,230,378 |
Other Finance Income (Costs) (T
Other Finance Income (Costs) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other finance income (costs) | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Pension interest cost $ (0.5 ) $ (0.7 ) $ (1.1 ) $ (1.4 ) Expected return on pension plan assets 0.7 0.9 1.5 1.8 Foreign currency translation on senior bank debt (2.7 ) (3.2 ) (6.6 ) (0.3 ) Foreign currency remeasurement on hedging instrument — 2.1 — 0.2 $ (2.5 ) $ (0.9 ) $ (6.2 ) $ 0.3 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of lease income | Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Interest receivable from sales type leases $ — $ — $ — $ — Operating lease income — — 1.0 — Variable income from sales type leases — — 0.2 — $ — $ — $ 1.2 $ — |
Pension Plan (Tables)
Pension Plan (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans | Six Months Ended 2020 2019 (in millions) Components of net periodic pension benefit cost: Interest cost $ 1.1 $ 1.4 Expected return on plan assets (1.5 ) (1.8 ) Net periodic benefit $ (0.4 ) $ (0.4 ) |
Schedule of pension plans and their reconciliation | June 30, 2020 December 31, (in millions) Change in benefit obligation: Benefit obligation at beginning of period $ 110.4 $ 94.1 Interest cost 1.1 2.7 Prior service cost — — Actuarial loss 7.2 14.1 Benefits paid (1.3 ) (4.2 ) Foreign currency translation adjustments (6.9 ) 3.7 Benefit obligation at end of period $ 110.5 $ 110.4 Change in plan assets: Fair value of plan assets at beginning of period $ 107.3 $ 97.4 Actual gain on plan assets 4.0 10.3 Employer contributions 0.1 0.2 Benefits paid (1.3 ) (4.2 ) Foreign currency translation adjustments (6.8 ) 3.6 Fair value of assets at end of period $ 103.3 $ 107.3 Amount recognized in the consolidated balance sheets: Unfunded status (non-current) $ (7.2 ) $ (3.1 ) Net amount recognized $ (7.2 ) $ (3.1 ) |
Segment Reporting and Geograp_2
Segment Reporting and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information by segment | Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 3.6 $ 9.8 $ 1.8 $ — $ — $ 15.2 Hardware 0.4 — — — — 0.4 Total revenue 4.0 9.8 1.8 — — 15.6 Cost of sales, excluding depreciation and amortization: Cost of service (1.0 ) (1.2 ) (0.9 ) — — (3.1 ) Cost of hardware (0.3 ) — — — — (0.3 ) Selling, general and administrative expenses (2.0 ) (1.1 ) (3.6 ) — (3.9 ) (10.6 ) Stock-based compensation expense (0.1 ) (0.1 ) — — (0.8 ) (1.0 ) Acquisition and integration related transaction expenses — — — — (1.2 ) (1.2 ) Depreciation and amortization (6.0 ) (1.4 ) (5.6 ) — (0.3 ) (13.3 ) Segment operating income (loss) (5.4 ) 6.0 (8.3 ) — (6.2 ) (13.9 ) Net operating loss $ (13.9 ) Total assets at June 30, 2020 $ 64.2 $ 64.7 $ 135.7 $ — $ 38.7 $ 303.3 Total goodwill at June 30, 2020 $ — $ 43.4 $ 32.0 $ — $ — $ 75.4 Total capital expenditures for the three months ended June 30, 2020 $ 0.5 $ 2.0 $ 0.5 $ — $ 0.6 $ 3.6 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 16.4 $ 9.2 $ — $ — $ — $ 25.6 Hardware 1.1 — — — — 1.1 Total revenue 17.5 9.2 — — — 26.7 Cost of sales, excluding depreciation and amortization: — — Cost of service (4.4 ) (0.9 ) — — — (5.3 ) Cost of hardware (1.0 ) — — — — (1.0 ) Selling, general and administrative expenses (6.0 ) (2.1 ) — — (4.7 ) (12.8 ) Stock-based compensation expense (0.5 ) (0.3 ) — — (1.5 ) (2.3 ) Acquisition and integration related transaction expenses — — — — (0.7 ) (0.7 ) Depreciation and amortization (7.2 ) (1.4 ) — — (0.5 ) (9.1 ) Segment operating income (loss) (1.6 ) 4.5 — — (7.4 ) (4.5 ) Net operating loss $ (4.5 ) Total assets at December 31, 2019 $ 80.8 $ 66.8 $ 156.7 $ — $ 23.1 $ 327.4 Total goodwill at December 31, 2019 $ — $ 46.4 $ 34.5 $ — $ — $ 80.9 Total capital expenditures for the three months ended June 30, 2019 $ 2.1 $ 1.6 $ — $ — $ 0.5 $ 4.2 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 17.0 $ 18.8 $ 23.2 $ (0.6 ) $ — $ 58.4 Hardware 3.7 — 6.0 (0.2 ) — 9.5 Total revenue 20.7 18.8 29.1 (0.8 ) — 67.9 Cost of sales, excluding depreciation and amortization: Cost of service (4.6 ) (2.1 ) (3.6 ) 0.6 — (9.7 ) Cost of hardware (2.1 ) — (5.2 ) — — (7.3 ) Selling, general and administrative expenses (7.0 ) (2.8 ) (20.5 ) — (9.4 ) (39.7 ) Stock-based compensation expense (0.3 ) (0.2 ) — — (1.5 ) (2.0 ) Acquisition and integration related transaction expenses — — — — (4.4 ) (4.4 ) Depreciation and amortization (12.2 ) (2.8 ) (10.4 ) — (0.5 ) (25.9 ) Segment operating income (loss) (5.5 ) 10.9 (10.5 ) (0.2 ) (15.8 ) (21.1 ) Net operating loss $ (21.1 ) Total capital expenditures for the six months ended June 30, 2020 $ 1.6 $ 3.6 $ 7.3 $ — $ 2.9 $ 15.4 Server Based Virtual Sports Acquired Businesses Intergroup Corporate Functions Total (in millions) Revenue: Service $ 37.2 $ 19.2 $ — $ — $ — $ 56.4 Hardware 4.0 — — — — 4.0 Total revenue 41.2 19.2 — — — 60.4 Cost of sales, excluding depreciation and amortization: Cost of service (8.8 ) (1.9 ) — — — (10.7 ) Cost of hardware (2.6 ) — — — — (2.6 ) Selling, general and administrative expenses (12.6 ) (4.3 ) — — (10.6 ) (27.5 ) Stock-based compensation expense (0.9 ) (0.6 ) — — (2.9 ) (4.4 ) Acquisition and integration related transaction expenses — — — — (1.6 ) (1.6 ) Depreciation and amortization (14.9 ) (2.9 ) — — (1.0 ) (18.8 ) Segment operating income (loss) 1.4 9.5 — — (16.1 ) (5.2 ) Net operating loss $ (5.2 ) Total capital expenditures for the six months ended June 30, 2019 $ 5.0 $ 3.0 $ — $ — $ 0.7 $ 8.7 |
Schedule of geographic information for revenue | Three Months Ended Six Months Ended June 30, 2020 2019 2020 2019 (in millions) (in millions) Total revenue UK $ 9.2 $ 15.5 $ 47.6 $ 37.7 Greece 2.6 4.8 7.4 9.6 Italy 1.4 4.2 3.6 8.4 Rest of world 2.4 2.2 9.3 4.7 Total $ 15.6 $ 26.7 $ 67.9 $ 60.4 |
Schedule of geographic information non-current assets excluding goodwill | June 30, 2020 December 31, (in millions) UK $ 101.9 $ 116.1 Greece 21.4 26.5 Italy 2.2 2.3 Rest of world 7.9 6.3 Total $ 133.4 $ 151.2 |
Nature of Operations, Managem_2
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Details) - USD ($) $ in Millions | Jul. 14, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Cash | $ 39.9 | $ 33.7 | $ 39.9 | $ 33.7 | $ 29.1 | $ 16 | |||
Cash on hand | 1.3 | 1.3 | |||||||
Net losses | (24.5) | $ (17.4) | (10.7) | $ (5) | (41.9) | (15.7) | |||
Share-based compensation | 2 | 4.4 | |||||||
Cash flows provided by operations | 10.2 | 19.7 | |||||||
Deferred Income, Noncurrent | $ 1.3 | $ 9.2 | $ 1.3 | $ 9.2 | |||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||||||
Nature of Operations, Management's Plans and Summary of Significant Accounting Policies (Details) [Line Items] | |||||||||
Liquidity plan, description | Due to the closure of land-based revenues we saw a significant increase in our online revenues from slots and virtual sports and following the success of this area of the business and the successful re-opening of various revenue streams, the Company repaid £10 million ($12.4 million) of the revolving credit facility subsequent to the end of the period, on July 14, 2020. |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Reserves for excess and slow-moving inventory | $ 1.2 | $ 0.9 |
Inventory (Details) - Schedule
Inventory (Details) - Schedule of inventory - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of inventory [Abstract] | ||
Component parts | $ 13.3 | $ 12.7 |
Work in progress | 1.5 | 2.1 |
Finished goods | 4.2 | 4 |
Total inventories | $ 19 | $ 18.8 |
Contract Liabilities and Othe_3
Contract Liabilities and Other Disclosures (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Revenue recognized deferred income | $ 5.9 | $ 9.6 |
Contract Liabilities and Othe_4
Contract Liabilities and Other Disclosures (Details) - Schedule of contract related balances - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of contract related balances [Abstract] | |||
Accounts Receivable | $ 19.7 | $ 24.5 | $ 11.5 |
Unbilled Accounts Receivable | 7.4 | 15.3 | 11 |
Deferred Income | (24) | (27.8) | (32) |
Customer Prepayments and Deposits | $ (0.9) | $ (1.9) | $ (3.6) |
Long Term and Other Debt (Detai
Long Term and Other Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Sep. 27, 2019 | Jun. 30, 2020 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |||
Long term and other debt, description | On September 27, 2019, the Company, together with certain direct and indirect wholly-owned subsidiaries, entered into a Senior Facilities Agreement (the “SFA”) with Lucid Agency Services Limited, as agent, Nomura International plc and Macquarie Corporate Holdings Pty Limited (UK Branch) as arrangers and/or bookrunners and each lender party thereto (the “Lenders”), pursuant to which the Lenders agreed to provide, subject to certain conditions, two tranches of senior secured term loans (the “Term Loans”), in an original principal amount of £140.0 million ($173.0 million) and €90.0 million ($101.1 million), respectively and a secured revolving facility loan in an original principal amount of £20.0 million ($24.7 million). | (i) capitalizing certain interest payments that fell due on April 1, 2020, (ii) resetting the leverage and capital expenditure financial covenants applicable under the SFA, removing certain rating requirements under the SFA, (iii) allowing the Company and its subsidiaries to incur additional indebtedness under the UK Coronavirus Large Business Interruption Loan Scheme under a stand-alone facility, which may rank pari passu or junior to the facilities under the SFA, in an amount not exceeding £10.0 million ($12.4 million), (iv) removing certain rating requirements under the SFA, (v) limiting the ability of the Company and its subsidiaries to incur additional indebtedness, including by reducing the amount of general indebtedness the Company and its subsidiaries are permitted to incur and removing the ability to incur senior secured, second lien and unsecured indebtedness in an amount not exceeding the aggregate of (A) an unlimited amount, as long as, pro forma for the utilization of such indebtedness, the consolidated total net leverage ratio does not exceed the lower of 3.4:1 and the then applicable ratio with respect to the consolidated total net leverage financial covenant summarized further below, plus (B) an amount equal to the greater of £16.0 million ($19.8 million) and 25% of the consolidated pro forma EBITDA of the Company and its subsidiaries for the relevant period (as defined in the SFA, but disregarding, for the purposes of calculating the usage of such cap, any financial indebtedness applied to refinancing other financial indebtedness, together with any related interest, fees, costs and expenses), (vi) increasing the margin applicable to the Facilities (as defined in the SFA) by 1% and adding an additional payment-in-kind margin of 0.75% payable on any principal amounts outstanding under Facility B (as defined in the SFA) after September 24, 2021 (the “Relevant Date”), (vii) adding an exit fee payable by the Company with respect to any repayment or prepayment of Facility B after the Relevant Date at the time of such repayment or prepayment in an amount equal to 0.75% of the principal amount of Facility B being repaid or prepaid, (viii) removing any ability to carry forward or carry back any unused allowance under the capital expenditure financial covenant in the SFA and (ix) granting certain additional information rights to the Lenders under the SFA, including the provision of a budget, and certain board observation rights until December 31, 2022. All other material terms of the SFA remain unchanged in all material respects. | |
Equal fee,percentage | 1.00% | ||
Unamortized debt issuance costs | $ 3.1 | $ 3.1 | |
Interest expense | $ 1 |
Long Term and Other Debt (Det_2
Long Term and Other Debt (Details) - Schedule of outstanding debt - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Long Term and Other Debt (Details) - Schedule of outstanding debt [Line Items] | ||
Finance lease liabilities | $ 0.6 | $ 0.1 |
Total long-term debt outstanding | (268.4) | (270.5) |
Long-term debt, excluding current portion | 24.7 | $ 2.6 |
Principal [Member] | ||
Long Term and Other Debt (Details) - Schedule of outstanding debt [Line Items] | ||
Senior bank debt | 309.5 | |
Finance lease liabilities | 1.1 | |
Total long-term debt outstanding | 310.6 | |
Less: current portion of long-term debt | (25.3) | |
Long-term debt, excluding current portion | 285.3 | |
Unamortized deferred financing charge [Member] | ||
Long Term and Other Debt (Details) - Schedule of outstanding debt [Line Items] | ||
Senior bank debt | (16.4) | |
Total long-term debt outstanding | (16.4) | |
Long-term debt, excluding current portion | (16.4) | |
Book value [Member] | ||
Long Term and Other Debt (Details) - Schedule of outstanding debt [Line Items] | ||
Senior bank debt | 293.1 | |
Finance lease liabilities | 1.1 | |
Total long-term debt outstanding | 294.2 | |
Less: current portion of long-term debt | (25.3) | |
Long-term debt, excluding current portion | $ 268.9 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | Jan. 15, 2020 | Jun. 30, 2020 |
Derivatives and Hedging Activities (Details) [Line Items] | ||
Business acquisition, description | the Company entered into two interest rate swaps with UBS AG designed to protect the Company against adverse fluctuations in interest rates by reducing its exposure to variability in cash flows on a portion of the current floating rate debt facilities. The swaps fix the variable interest rate of the current debt facilities and provide protection over potential interest rate increases by providing a fixed rate of interest payment in return. These interest rate swaps are for £95 million at a fixed rate of 0.9255% based on the 6-month LIBOR rate and for €60 million at a fixed rate of 0.102% based on the 6 month EUROLIBOR rate and are effective until maturity on October 1, 2023. | |
Cash Flow Hedging [Member] | ||
Derivatives and Hedging Activities (Details) [Line Items] | ||
Increase in derivative interest expense | $ 1.5 | |
ISDA Agreements [Member] | ||
Derivatives and Hedging Activities (Details) [Line Items] | ||
Fair value of derivatives net liability position | 2.1 | |
Termination value | $ 2.5 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Details) - Schedule of outstanding interest rate derivatives that were designated as cash flow hedges - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - Interest Rate Contract [Member] | 6 Months Ended |
Jun. 30, 2020 | |
Derivatives and Hedging Activities (Details) - Schedule of outstanding interest rate derivatives that were designated as cash flow hedges [Line Items] | |
Number of Instruments | 2 |
Notional | 95 million at a fixed rate of 0.9255% based on the 6-month LIBOR rate and 60 million at a fixed rate of 0.102% based on the 6 month EUROLIBOR rate |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Details) - Schedule of fair value of derivative financial instruments - Designated as Hedging Instrument [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Derivative Liability [Member] | Liability Derivatives Fair Value [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of fair value of derivative financial instruments [Line Items] | |
Interest Rate Products | |
Total derivatives | $ (2.1) |
Derivative Liability [Member] | Liability Derivatives Fair Value [Member] | Fair Value Hedging [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of fair value of derivative financial instruments [Line Items] | |
Balance Sheet Classification | Fair Value of Hedging Instruments |
Derivative Liability [Member] | Liability Derivatives Fair Value [Member] | Derivative Liability [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of fair value of derivative financial instruments [Line Items] | |
Balance Sheet Classification | Other Current Liabilities and long term Derivative Liability |
Fair Value Hedging [Member] | Asset Derivatives Fair Value [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of fair value of derivative financial instruments [Line Items] | |
Interest Rate Products | |
Total derivatives | $ (2.1) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Details) - Schedule of accumulated other comprehensive income $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Derivatives and Hedging Activities (Details) - Schedule of accumulated other comprehensive income [Line Items] | |
Interest Rate and Foreign Exchange Products | Interest Expense |
Fair Value and Cash Flow Hedging [Member] | Interest Rate and Foreign Exchange Products [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of accumulated other comprehensive income [Line Items] | |
Amount of Gain Recognized in Other Comprehensive Income on Derivative | $ (2.3) |
Fair Value and Cash Flow Hedging [Member] | Interest Expense [Member] | |
Derivatives and Hedging Activities (Details) - Schedule of accumulated other comprehensive income [Line Items] | |
Location of Gain Reclassified from Accumulated Other Comprehensive Income into Income | $ (0.7) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Details) - Schedule of consolidated income statements - Interest Expense [Member] - Fair Value and Cash Flow Hedging [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Derivatives and Hedging Activities (Details) - Schedule of consolidated income statements [Line Items] | |
Total amounts of income and expense line items presented in the statement of operations and comprehensive loss in which the effects of fair value or cash flow hedges are recorded | $ 14.2 |
Gain/(loss) on cash flow hedging relationships in Subtopic 815-20 | $ (0.7) |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities (Details) - Schedule of offsetting of derivative assets - Fair Value Hedging [Member] | Jun. 30, 2020USD ($) |
Offsetting Assets [Line Items] | |
Gross Amounts of Recognized Assets | |
Gross Amounts Offset in the Statement of Financial Position | |
Net Amounts of Assets presented in the Statement of Financial Position | |
Financial Instruments | |
Cash Collateral Received | |
Net Amount |
Derivatives and Hedging Activ_9
Derivatives and Hedging Activities (Details) - Schedule of offsetting of derivative liabilities - Fair Value Hedging [Member] $ in Millions | Jun. 30, 2020USD ($) |
Derivatives and Hedging Activities (Details) - Schedule of offsetting of derivative liabilities [Line Items] | |
Gross Amounts of Recognized Liabilities | $ 2.1 |
Gross Amounts Offset in the Statement of Financial Position | |
Net Amounts of Liabilities presented in the Statement of Financial Position | 2.1 |
Financial Instruments | |
Cash Collateral Received | |
Net Amount |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of derivative financial instrument assets and liabilities measured at fair value on a recurring basis - Fair Value, Inputs, Level 2 [Member] - Fair Value, Recurring [Member] - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liability (see Note 5) | $ 2.1 | |
Long term receivable (included in other assets) | $ 1.3 | $ 1.5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | May 31, 2019 | |
Stock-Based Compensation (Details) [Line Items] | |||||
Issuance of an aggregate shares of common stock (in Shares) | 500,000 | ||||
Employee stock ownership plan, description | This offering period authorized employees to contribute up to 10% of their base compensation to purchase a maximum of 1,000 shares at a discounted purchase price that would be equal 85% of the lower of: (i) the closing price at the beginning of the offering period and (ii) the closing price at the end of the offering period. A total of 7,649 shares were purchased on the last day of the offering period, June 2, 2020, at a discounted price of $3.2215 per share. As of June 30, 2020, a total of 467,751shares remain available for purchase under the ESPP. | ||||
Remaining shares are purchase (in Shares) | 166,959 | ||||
Stock-based compensation expense | $ 1 | $ 2.3 | $ 2 | $ 4.4 | |
2018 Plan [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Authorized shares to be issued (in Shares) | 2,550,000 | ||||
Outstanding awards plan, description | (i) 2,429,011 shares subject to outstanding awards under the Prior Plans, including 1,092,633 shares subject to market-price vesting conditions, and (ii) 1,139,739 shares subject to outstanding awards under the 2018 Plan, including 100,000 shares subject to performance-based target awards and 241,077 shares subject to awards that were previously subject to performance criteria that were determined to be met in June 2020 (at a level equal to approximately 87% of the target awards) which awards continue to remain subject to a time-based vesting schedule. As of June 30, 2020, there were 1,136,945 shares available for new awards under the 2018 Plan and no shares available for new awards under the Prior Plans. | ||||
Unvested Restricted Stock [Member] | Incentive Plan [Member] | |||||
Stock-Based Compensation (Details) [Line Items] | |||||
Unrecognized compensation expense | $ 5.9 | $ 5.9 | |||
Expected to be recognized over weighted average period | 1 year 255 days |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of restricted stock unit activity - Unvested Restricted Stock [Member] - Incentive Plan [Member] | 6 Months Ended |
Jun. 30, 2020shares | |
Stock-Based Compensation (Details) - Schedule of restricted stock unit activity [Line Items] | |
Unvested Outstanding at January 1, 2020 | 1,571,964 |
Unvested Outstanding at June 30, 2020 | 1,573,055 |
Granted | 247,405 |
Forfeited | (47,613) |
Vested | (198,701) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Income) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Stockholders' Equity Note [Abstract] | |
Change in fair value of discontinued hedging instruments | $ 0.9 |
Currently active hedging instruments | $ 2.1 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Income) (Details) - Schedule of accumulated other comprehensive (loss) income - USD ($) $ in Millions | 3 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Schedule of accumulated other comprehensive (loss) income [Abstract] | ||||
Beginning balance, Foreign Currency Translation Adjustments | $ (79.6) | $ (76.5) | $ (78.4) | $ (78.9) |
Beginning balance, Change in Fair Value of Hedging Instrument | 2.5 | 1.4 | 0.5 | (0.1) |
Beginning balance, Unrecognized Pension Benefit Costs | 25.6 | 30 | 22.2 | 23.1 |
Beginning balance, Accumulated Other Comprehensive (Income) | (51.5) | (45.1) | (55.7) | (55.9) |
Change during the period, Foreign Currency Translation Adjustments | (0.4) | (3.1) | (0.7) | 0.5 |
Change during the period, Change in Fair Value of Hedging Instrument | 0.5 | 1.1 | 0.2 | 0.6 |
Change during the period, Unrecognized Pension Benefit Costs | 8.7 | (4.4) | 2 | (0.9) |
Change during the period, Accumulated Other Comprehensive (Income) | 8.8 | (6.4) | 1.5 | 0.2 |
Ending balance, Foreign Currency Translation Adjustments | (80) | (79.6) | (79.1) | (78.4) |
Ending balance, Change in Fair Value of Hedging Instrument | 3 | 2.5 | 0.7 | 0.5 |
Ending balance, Unrecognized Pension Benefit Costs | 34.3 | 25.6 | 24.2 | 22.2 |
Ending balance, Accumulated Other Comprehensive (Income) | $ (42.7) | $ (51.5) | $ (54.2) | $ (55.7) |
Net Loss per Share (Details) -
Net Loss per Share (Details) - Schedule of anti-dilutive securities excluded from computation of earnings per share - shares | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from computation of earnings per share | 13,108,315 | 13,230,378 |
RSUs [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from computation of earnings per share | 2,944,634 | 3,066,697 |
Unvested Restricted Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from computation of earnings per share | 624,116 | 624,116 |
Stock Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of antidilutive securities excluded from computation of earnings per share | 9,539,565 | 9,539,565 |
Other Finance Income (Costs) (D
Other Finance Income (Costs) (Details) - Schedule of other finance income (costs) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of other finance income (costs) [Abstract] | ||||
Pension interest cost | $ (0.5) | $ (0.7) | $ (1.1) | $ (1.4) |
Expected return on pension plan assets | 0.7 | 0.9 | 1.5 | 1.8 |
Foreign currency translation on senior bank debt | (2.7) | (3.2) | (6.6) | (0.3) |
Foreign currency remeasurement on hedging instrument | 2.1 | 0.2 | ||
Other finance income (costs) | $ (2.5) | $ (0.9) | $ (6.2) | $ 0.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 0.40% | 0.90% | 0.70% | 0.00% |
Income tax expense | $ 0.1 | $ 0.1 | $ 0.3 | $ 0 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Related Parties (Details) [Line Items] | |||||
Secured term loans | $ 309.5 | $ 309.5 | |||
Interest expense | $ 0 | ||||
Accrued interest, description | In addition, $0.5 million of a total $6.0 million of accrued interest payable was due to Macquarie UK at June 30, 2020, and Macquarie UK received $0.3 million of the total $3.1 million of SFA amendment fees paid (see Note 4). | ||||
Percentage of outstanding shares (in Shares) | 0.05 | ||||
Impairment of investments | $ 0.7 | ||||
Macquarie Corporate Holdings Pty Limited [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Percent of investment owns | 16.75% | 16.75% | |||
Secured term loans | $ 27.9 | $ 27.9 | |||
Interest expense | $ 0.6 | $ 0 | $ 1.1 | ||
Revenue earned | 0 | ||||
Innov8 [Member] | |||||
Related Parties (Details) [Line Items] | |||||
Non-controlling equity interest, percentage | 40.00% | ||||
Revenue earned | $ 0.6 | ||||
Purchase related party | $ 0.2 | $ 0 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of lease income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule of lease income [Abstract] | ||||
Interest receivable from sales type leases | ||||
Operating lease income | 1 | |||
Variable income from sales type leases | 0.2 | |||
Total | $ 1.2 |
Pension Plan (Details)
Pension Plan (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Retirement Benefits [Abstract] | |
Description of plan investment policy strategy | It was determined that contingent contributions of $1.1 million and expense contributions of $0.4 million would be payable during the year ended December 31, 2020, with agreement reached with the trustees of the scheme to defer $0.4 million of the contingent contributions into the year to December 31, 2021 The funding level of the scheme will next be tested against the expected position at December 31, 2020 to determine whether further contingent contributions are payable over the year to December 31, 2021. |
Contributions total | $ 0.1 |
Pension Plan (Details) - Schedu
Pension Plan (Details) - Schedule of defined benefit plans - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Components of net periodic pension benefit cost: | ||
Interest cost | $ 1.1 | $ 1.4 |
Expected return on plan assets | (1.5) | (1.8) |
Net periodic benefit | $ (0.4) | $ (0.4) |
Pension Plan (Details) - Sche_2
Pension Plan (Details) - Schedule of pension plans and their reconciliation - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Change in benefit obligation: | ||
Benefit obligation at beginning of period | $ 110.4 | $ 94.1 |
Interest cost | 1.1 | 2.7 |
Prior service cost | ||
Actuarial loss | 7.2 | 14.1 |
Benefits paid | (1.3) | (4.2) |
Foreign currency translation adjustments | (6.9) | 3.7 |
Benefit obligation at end of period | 110.5 | 110.4 |
Change in plan assets: | ||
Fair value of plan assets at beginning of period | 107.3 | 97.4 |
Actual gain on plan assets | 4 | 10.3 |
Employer contributions | 0.1 | 0.2 |
Benefits paid | (1.3) | (4.2) |
Foreign currency translation adjustments | (6.8) | 3.6 |
Fair value of assets at end of period | 103.3 | 107.3 |
Amount recognized in the consolidated balance sheets: | ||
Unfunded status (non-current) | (7.2) | (3.1) |
Net amount recognized | $ (7.2) | $ (3.1) |
Segment Reporting and Geograp_3
Segment Reporting and Geographic Information (Details) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Number of operating segment | 3 |
Segment Reporting and Geograp_4
Segment Reporting and Geographic Information (Details) - Schedule of segment reporting information by segment - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Revenue: | |||||
Total revenue | $ 15.6 | $ 26.7 | $ 67.9 | $ 60.4 | |
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | (10.6) | (12.8) | (39.7) | (27.5) | |
Stock-based compensation expense | (1) | (2.3) | (2) | (4.4) | |
Acquisition and integration related transaction expenses | (1.2) | (0.7) | (4.4) | (1.6) | |
Depreciation and amortization | (13.3) | (9.1) | (25.9) | (18.8) | |
Segment operating income (loss) | (13.9) | (4.5) | (21.1) | (5.2) | |
Net operating loss | (13.9) | (4.5) | (21.1) | (5.2) | |
Total assets | 303.3 | 8.7 | 303.3 | 8.7 | $ 327.4 |
Total goodwill | 75.4 | 75.4 | 80.9 | ||
Total capital expenditures | 3.6 | 4.2 | 15.4 | ||
Server Based Gaming [Member] | |||||
Revenue: | |||||
Total revenue | 4 | 17.5 | 20.7 | 41.2 | |
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | (2) | (6) | (7) | (12.6) | |
Stock-based compensation expense | (0.1) | (0.5) | (0.3) | (0.9) | |
Acquisition and integration related transaction expenses | |||||
Depreciation and amortization | (6) | (7.2) | (12.2) | (14.9) | |
Segment operating income (loss) | (5.4) | (1.6) | (5.5) | 1.4 | |
Total assets | 64.2 | 5 | 64.2 | 5 | 80.8 |
Total goodwill | |||||
Total capital expenditures | 0.5 | 2.1 | 1.6 | ||
Virtual Sports [Member] | |||||
Revenue: | |||||
Total revenue | 9.8 | 9.2 | 18.8 | 19.2 | |
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | (1.1) | (2.1) | (2.8) | (4.3) | |
Stock-based compensation expense | (0.1) | (0.3) | (0.2) | (0.6) | |
Acquisition and integration related transaction expenses | |||||
Depreciation and amortization | (1.4) | (1.4) | (2.8) | (2.9) | |
Segment operating income (loss) | 6 | 4.5 | 10.9 | 9.5 | |
Total assets | 64.7 | 3 | 64.7 | 3 | 66.8 |
Total goodwill | 43.4 | 43.4 | 46.4 | ||
Total capital expenditures | 2 | 1.6 | 3.6 | ||
Acquired Entities [Member] | |||||
Revenue: | |||||
Total revenue | 1.8 | 29.1 | |||
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | (3.6) | (20.5) | |||
Stock-based compensation expense | |||||
Acquisition and integration related transaction expenses | |||||
Depreciation and amortization | (5.6) | (10.4) | |||
Segment operating income (loss) | (8.3) | (10.5) | |||
Total assets | 135.7 | 135.7 | 156.7 | ||
Total goodwill | 32 | 32 | 34.5 | ||
Total capital expenditures | 0.5 | 7.3 | |||
Intergroup Eliminations [Member] | |||||
Revenue: | |||||
Total revenue | (0.8) | ||||
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | |||||
Stock-based compensation expense | |||||
Acquisition and integration related transaction expenses | |||||
Depreciation and amortization | |||||
Segment operating income (loss) | (0.2) | ||||
Total assets | |||||
Total goodwill | |||||
Total capital expenditures | |||||
Corporate Functions [Member] | |||||
Revenue: | |||||
Total revenue | |||||
Cost of sales, excluding depreciation and amortization: | |||||
Selling, general and administrative expenses | (3.9) | (4.7) | (9.4) | (10.6) | |
Stock-based compensation expense | (0.8) | (1.5) | (1.5) | (2.9) | |
Acquisition and integration related transaction expenses | (1.2) | (0.7) | (4.4) | (1.6) | |
Depreciation and amortization | (0.3) | (0.5) | (0.5) | (1) | |
Segment operating income (loss) | (6.2) | (7.4) | (15.8) | (16.1) | |
Total assets | 38.7 | 0.7 | 38.7 | 0.7 | 23.1 |
Total goodwill | |||||
Total capital expenditures | 0.6 | 0.5 | 2.9 | ||
Service [Member] | |||||
Revenue: | |||||
Total revenue | 15.2 | 25.6 | 58.4 | 56.4 | |
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (3.1) | (5.3) | (9.7) | (10.7) | |
Service [Member] | Server Based Gaming [Member] | |||||
Revenue: | |||||
Total revenue | 3.6 | 16.4 | 17 | 37.2 | |
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (1) | (4.4) | (4.6) | (8.8) | |
Service [Member] | Virtual Sports [Member] | |||||
Revenue: | |||||
Total revenue | 9.8 | 9.2 | 18.8 | 19.2 | |
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (1.2) | (0.9) | (2.1) | (1.9) | |
Service [Member] | Acquired Entities [Member] | |||||
Revenue: | |||||
Total revenue | 1.8 | 23.2 | |||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (0.9) | (3.6) | |||
Service [Member] | Intergroup Eliminations [Member] | |||||
Revenue: | |||||
Total revenue | (0.6) | ||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | 0.6 | ||||
Service [Member] | Corporate Functions [Member] | |||||
Revenue: | |||||
Total revenue | |||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | |||||
Hardware [Member] | |||||
Revenue: | |||||
Total revenue | 0.4 | 1.1 | 9.5 | 4 | |
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (0.3) | (1) | (7.3) | (2.6) | |
Hardware [Member] | Server Based Gaming [Member] | |||||
Revenue: | |||||
Total revenue | 0.4 | 1.1 | 3.7 | 4 | |
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (0.3) | (1) | (2.1) | (2.6) | |
Hardware [Member] | Virtual Sports [Member] | |||||
Revenue: | |||||
Total revenue | |||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | |||||
Hardware [Member] | Acquired Entities [Member] | |||||
Revenue: | |||||
Total revenue | 6 | ||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | (5.2) | ||||
Hardware [Member] | Intergroup Eliminations [Member] | |||||
Revenue: | |||||
Total revenue | (0.2) | ||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales | |||||
Hardware [Member] | Corporate Functions [Member] | |||||
Revenue: | |||||
Total revenue | |||||
Cost of sales, excluding depreciation and amortization: | |||||
Cost of sales |
Segment Reporting and Geograp_5
Segment Reporting and Geographic Information (Details) - Schedule of geographic information for revenue - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Total revenue | ||||
Total revenue | $ 15.6 | $ 26.7 | $ 67.9 | $ 60.4 |
UK [Member] | ||||
Total revenue | ||||
Total revenue | 9.2 | 15.5 | 47.6 | 37.7 |
Greece [Member] | ||||
Total revenue | ||||
Total revenue | 2.6 | 4.8 | 7.4 | 9.6 |
Italy [Member] | ||||
Total revenue | ||||
Total revenue | 1.4 | 4.2 | 3.6 | 8.4 |
Rest of World [Member] | ||||
Total revenue | ||||
Total revenue | $ 2.4 | $ 2.2 | $ 9.3 | $ 4.7 |
Segment Reporting and Geograp_6
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill [Line Items] | ||
Total non-current assets excluding goodwill | $ 133.4 | $ 151.2 |
UK [Member] | ||
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill [Line Items] | ||
Total non-current assets excluding goodwill | 101.9 | 116.1 |
Greece [Member] | ||
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill [Line Items] | ||
Total non-current assets excluding goodwill | 21.4 | 26.5 |
Italy [Member] | ||
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill [Line Items] | ||
Total non-current assets excluding goodwill | 2.2 | 2.3 |
Rest of world [Member] | ||
Segment Reporting and Geographic Information (Details) - Schedule of geographic information non-current assets excluding goodwill [Line Items] | ||
Total non-current assets excluding goodwill | $ 7.9 | $ 6.3 |
Customer Concentration (Details
Customer Concentration (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Customer Concentration (Details) [Line Items] | |||||
Number of customers | 2 | 3 | 1 | 3 | |
Accounts Receivable [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 25.00% | 10.00% | 10.00% | 10.00% | |
Customer One [Member] | Accounts Receivable [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 21.00% | ||||
Customer Two [Member] | Accounts Receivable [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 15.00% | ||||
Other Customer [Member] | Accounts Receivable [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% | ||||
Customer Three [Member] | Accounts Receivable [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 11.00% | ||||
Sales Revenue, Net [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% | 10.00% | 10.00% | ||
Sales Revenue, Net [Member] | Customer One [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 25.00% | 19.00% | |||
Sales Revenue, Net [Member] | Customer Two [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 18.00% | 16.00% | |||
Sales Revenue, Net [Member] | Customer Three [Member] | |||||
Customer Concentration (Details) [Line Items] | |||||
Concentration risk, percentage | 10.00% |