Eterna Therapeutics (ERNA) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document And Entity Information	'	'
Entity Registrant Name	'NTN BUZZTIME INC	'
Entity Central Index Key	'0000748592	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	71,793,844
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets:	'	'
Cash and cash equivalents	$2,168	$2,721
Accounts receivable, net of allowances of $134 and $226, respectively	533	610
Prepaid expenses and other current assets	1,192	898
Total current assets	3,893	4,229
Broadcast equipment and fixed assets, net	3,227	3,783
Software development costs, net of accumulated amortization of $2,155 and $1,774, respectively	2,343	1,980
Deferred costs	395	600
Goodwill (Note 3)	1,222	1,265
Intangible assets, net (Note 3)	259	579
Other assets	310	220
Total assets	11,649	12,656
Current Liabilities:	'	'
Accounts payable and accrued expenses	995	1,087
Accrued compensation	813	598
Sales taxes payable	141	197
Income taxes payable	71	79
Obligations under capital lease - current portion	25	100
Deferred revenue	515	919
Other current liabilities	345	408
Total current liabilities	2,905	3,388
Obligations under capital leases, excluding current portion	64	67
Deferred revenue, excluding current portion	248	188
Deferred rent	861	949
Other liabilities	329	170
Total liabilities	4,407	4,762
Commitments and contingencies (Note 8)	'	'
Shareholders' Equity:	'	'
Series A 10% cumulative convertible preferred stock, $.005 par value, $156 liquidation preference, 5,000 shares authorized; 156 shares issued and outstanding at September 30, 2013 and December 31, 2012	1	1
Common stock, $.005 par value, 168,000 and 84,000 shares authorized on September 30, 2013 and December 31, 2012, respectively (Note 14); 71,773 and 71,123 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	359	355
Treasury stock, at cost, 503 shares at September 30, 2013 and December 31, 2012	-456	-456
Additional paid-in capital	119,077	118,956
Accumulated deficit	-112,440	-111,730
Accumulated other comprehensive income (Note 9)	701	768
Total shareholders' equity	7,242	7,894
Total shareholders' equity and liabilities	$11,649	$12,656

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Statement of Financial Position [Abstract]	'	'
Allowance for doubtful accounts - accounts receivable	$134	$226
Software accumulated amortization	$2,155	$1,774
Preferred Stock Series A 10% par value per share	$0.01	$0.01
Preferred Stock Series A liquidation preference	$156	$156
Preferred Stock Series A shares authorized	5,000	5,000
Preferred Stock Series A shares outstanding	156	156
Preferred stock shares issued	156	156
Common stock par value	$0.01	$0.01
Common stock shares authorized	168,000	84,000
Common stock shares issued	71,773	71,123
Common stock shares outstanding	71,773	71,123
Treasury stock shares	503	503

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Revenues	$5,526	$6,050	$17,174	$18,131
Operating expenses:	'	'	'	'
Direct operating costs (includes depreciation and amortization of $495 and $542 for the three months ended September 30, 2013 and 2012, respectively, and $1,599 and $1,650 for the nine months ended September 30, 2013 and 2012, respectively.)	1,532	1,519	5,017	4,690
Selling, general and administrative	4,053	4,257	12,318	14,442
Depreciation and amortization (excluding depreciation and amortization included in direct operating costs)	177	175	556	540
Total operating expenses	5,762	5,951	17,891	19,672
Operating (loss) income	-236	99	-717	-1,541
Other income (expense), net	5	-23	31	-57
(Loss) income before income taxes	-231	76	-686	-1,598
Provision for income taxes	-3	-22	-16	-26
Net (loss) income	($234)	$54	($702)	($1,624)
Net (loss) income per common share - basic	$0	$0	($0.01)	($0.02)
Net (loss) income per common share - diluted	$0	$0	($0.01)	($0.02)
Weighted average shares outstanding - basic	71,202	70,876	71,043	68,537
Weighted average shares outstanding - diluted	71,202	71,373	71,043	68,537

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Income Statement [Abstract]	'	'	'	'
Depreciation and amortization - part of Direct operating costs	$495	$542	$1,599	$1,650

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012
Cash flows provided by operating activities:	'	'
Net loss	($702)	($1,624)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation and amortization	2,155	2,190
Provision for doubtful accounts	3	101
Stock-based compensation	87	163
Issuance of common stock to consultant in lieu of cash payment	39	0
Loss from disposition of equipment and capitalized software	115	1
Changes in assets and liabilities:	'	'
Accounts receivable	73	-437
Prepaid expenses and other assets	-384	-200
Accounts payable and accrued expenses	-83	-34
Income taxes payable	-6	32
Deferred costs	204	422
Deferred revenue	-344	160
Deferred rent	-88	220
Net cash provided by operating activities	1,069	994
Cash flows provided by (used in) investing activities:	'	'
Capital expenditures	-521	-966
Software development expenditures	-1,222	-1,061
Acquisitions	0	-50
Changes in restricted cash	0	50
Net cash used in investing activities	-1,743	-2,027
Cash flows provided by (used in) financing activities:	'	'
Proceeds from rights offering, net	0	2,310
Proceeds from notes payable	290	0
Payments on note payable	-41	-29
Principal payments on capital lease	-94	-247
Tax withholding related to net-share settlements of restricted stock units	-10	-1
Net cash provided by financing activities	145	2,033
Net (decrease) increase in cash and cash equivalents	-529	1,000
Effect of exchange rate on cash	-24	31
Cash and cash equivalents at beginning of period	2,721	1,374
Cash and cash equivalents at end of period	2,168	2,405
Supplemental disclosures of cash flow information: Cash paid during the period for:	'	'
Interest	15	35
Income taxes	26	45
Supplemental disclosure of non-cash investing and financing activities:	'	'
Equipment acquired under capital lease	23	0
Issuance of common stock in lieu of payment of preferred dividends	8	8
Issuance of common stock in connection with acquisition	$1	$0

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION	'
	Description of Business
	NTN Buzztime, Inc. (the “Company”) was incorporated in Delaware in 1984 as Alroy Industries and changed its corporate name to NTN Communications, Inc. in 1985. The Company changed its name to NTN Buzztime, Inc. in 2005 to better reflect the growing role of the Buzztime consumer brand.
	The Company provides marketing services through interactive game content for hospitality venues that offer the games free to their patrons. The Company has evolved from a content developer and distributor to an interactive entertainment network provider that helps the hospitality venues that subscribe to the Company’s network acquire, engage and retain their patrons. The Company primarily generates revenues by charging subscription fees for its service to its network subscribers and from the sale of advertising aired on in-venue screens as well as in conjunction with customized games. The Company’s games are currently available in over 3,200 locations in the U.S. and Canada.
	Basis of Accounting Presentation
	The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments that are necessary, which are of a normal and recurring nature, for a fair presentation for the periods presented of the financial position, results of operations and cash flows of the Company and its wholly-owned subsidiaries: IWN, Inc., IWN, L.P., Buzztime Entertainment, Inc., NTN Wireless Communications, Inc., NTN Software Solutions, Inc., NTN Canada, Inc., and NTN Buzztime, Ltd., all of which, other than NTN Canada, Inc., are dormant subsidiaries. All significant intercompany transactions have been eliminated in consolidation.
	These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2012. The accompanying condensed balance sheet as of December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2013, or any other period.
	The United States dollar is the Company’s functional currency, except for its operations in Canada where the functional currency is the Canadian dollar. The financial position and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. In accordance with ASC No. 830, Foreign Currency Matters, revenues and expenses of the Company’s foreign subsidiaries have been translated into U.S. dollars at weighted average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded as a separate component of shareholders’ equity, unless there is a sale or complete liquidation of the underlying foreign investments. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. For the three months ended September 30, 2013 and 2012, the Company recorded $8,000 and $13,000 in foreign currency losses, respectively, and for the nine months ended September 30, 2013 and 2012, the Company recorded $7,000 in foreign currency gains and $18,000 in foreign currency losses, respectively. These foreign currency gains and losses were due to settlements of intercompany transactions, re-measurement of intercompany balances with the Company’s Canadian subsidiary and other non-functional currency denominated transactions, which are included in other income (expense), net in the accompanying statements of operations. Exchange rate fluctuations between the United States dollar and Canadian dollar may affect the Company’s results of operations and period-to-period comparisons of its operating results. The Company does not currently engage in hedging or similar transactions to reduce these risks. For the three and nine months ended September 30, 2013, the net impact to the Company’s results of operations from the effect of exchange rate fluctuations was immaterial when compared to the exchange rates for the three and nine months ended September 30, 2012.

2_BASIC_AND_DILUTED_EARNINGS_P

2. BASIC AND DILUTED EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
BASIC AND DILUTED EARNINGS PER COMMON SHARE	'
	The Company computes basic and diluted earnings per common share in accordance with the provisions of ASC No. 260, Earnings per Share. Basic earnings per share excludes the dilutive effects of options, warrants and other convertible securities. Diluted earnings per share reflects the potential dilution of securities that could share in our earnings. Total options, warrants, convertible preferred stock and deferred stock units that were excluded from computing diluted net loss per common share represented approximately 7,567,000 and 6,555,000 shares of the Company’s common stock for the three months ended September 30, 2013 and 2012, respectively, and 7,567,000 and 7,346,000 shares of the Company’s common stock for the nine months ended September 30, 2013 and 2012, respectively, as their effect was anti-dilutive.
		Three months ended					Nine months ended
		September 30,					September 30,
		2013			2012		2013			2012
	Numerator:
	Net (loss) income	$	(234	)	$	54	$	(702	)	$	(1,624	)
	Denominator:
	Weighted average common shares outstanding - basic		71,202			70,876		71,043			68,537
	Effects of diluted common share equivalents		–			497		–			–
	Weighted average common shares outstanding - diluted		71,202			71,373		71,043			68,537
	Net (loss) income per common share - basic	$	(0.00	)	$	0	$	(0.01	)	$	(0.02	)
	Net (loss) income per common share - diluted	$	(0.00	)	$	0	$	(0.01	)	$	(0.02	)

3_GOODWILL_AND_OTHER_INTANGIBL

3. GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
GOODWILL AND OTHER INTANGIBLE ASSETS	'
	Goodwill
	The Company’s goodwill balance relates to the purchase of NTN Canada. The Company performed its quarterly qualitative assessment of goodwill impairment for NTN Canada as of June 30, 2013 and determined that there were no indications of impairment.
	Other Intangible Assets
	The Company has other intangible assets comprised predominantly of developed technology, trivia databases, trademarks, and acquired customer relationships. All intangible assets are amortized on a straight line basis. The useful lives of the assets reflect the estimated period of time and method by which the underlying intangible asset benefits will be realized. Amortization expense relating to all intangible assets totaled $105,000 and $94,000 for the three months ended June 30, 2013 and 2012, respectively, and $215,000 and $187,000 for the six months ended June 30, 2013 and 2012, respectively.

4_SOFTWARE_DEVELOPMENT_COSTS

4. SOFTWARE DEVELOPMENT COSTS	9 Months Ended
	Sep. 30, 2013
Software Development Costs	'
SOFTWARE DEVELOPMENT COSTS	'
	The Company capitalizes costs related to the development of certain of its software products in accordance with ASC No. 350, Intangibles – Goodwill and Other. Amortization expense relating to capitalized software development costs totaled $205,000 and $173,000 for the three months ended June 30, 2013 and 2012, respectively, and $450,000 and $330,000 for the six months ended June 30, 2013 and 2012, respectively. As of June 30, 2013 and December 31, 2012, approximately $808,000 and $156,000, respectively, of capitalized software costs were not subject to amortization as the development of various software projects was not complete.
	The Company performed its quarterly review of software development projects for the three and six months ended June 30, 2013, and determined to abandon various software development projects that it concluded were no longer a current strategic fit or for which the Company determined that the marketability of the content had decreased due to obtaining additional information regarding the specific purpose for which the content was intended. As a result, the Company recognized an impairment loss of $27,000 and $92,000 for the three and six months ended June 30, 2013, which is included in selling, general and administrative expenses. There were no impairment losses recognized for the three and six months ended June 30, 2012.

5_FAIR_VALUE_OF_FINANCIAL_INST

5. FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	ASC No. 820, Fair Value Measurements and Disclosures, applies to certain assets and liabilities that are being measured and reported on a fair value basis.  Broadly, the ASC No. 820 framework requires fair value to be determined based on 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 or liability in an orderly transaction between market participants.  ASC No. 820 also establishes a fair value hierarchy for ranking the quality and reliability of the information used to determine fair values. This hierarchy is as follows:
	Level 1: Quoted market prices in active markets for identical assets or liabilities.
	Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
	Level 3: Unobservable inputs that are not corroborated by market data.
	Assets and Liabilities that are Measured at Fair Value on a Recurring Basis:
	The Company does not have assets or liabilities that are measured at fair value on a recurring basis.
	Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis:
	Certain assets are measured at fair value on a non-recurring basis and are subject to fair value adjustments only in certain circumstances. Included in this category are goodwill written down to fair value when determined to be impaired, acquired assets and long-lived assets including capitalized software that are written down to fair value when they are held for sale or determined to be impaired.  The valuation methods for goodwill, assets and liabilities resulting from acquisitions, and long-lived assets involve assumptions concerning interest and discount rates, growth projections, and/or other assumptions of future business conditions.  As all of the assumptions employed to measure these assets and liabilities on a nonrecurring basis are based on management’s judgment using internal and external data, these fair value determinations are classified in Level 3 of the valuation hierarchy.
	There were no transfers between fair value measurement levels during the three or six months ended June 30, 2013.

6_STOCKBASED_COMPENSATION

6. STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
STOCK-BASED COMPENSATION	'
	The Company records stock-based compensation in accordance with ASC No. 718, Compensation – Stock Compensation.  The Company estimates the fair value of stock options using the Black-Scholes option pricing model. The fair value of stock options granted is recognized as expense over the requisite service period. Stock-based compensation expense for all share-based payment awards is recognized using the straight-line single-option method.
	The Company uses the historical stock price volatility as an input to value its stock options under ASC No. 718. The expected term of stock options represents the period of time options are expected to be outstanding and is based on observed historical exercise patterns of the Company, which the Company believes are indicative of future exercise behavior. For the risk-free interest rate, the Company uses the observed interest rates appropriate for the term of time options are expected to be outstanding. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts.
	The following weighted-average assumptions were used for grants issued during the three and six months ended June 30, 2013 and 2012 under the ASC No. 718 requirements.
		Three months ended June 30,		Six months ended June 30,
		2013	2012	2013	2012
	Weighted-average risk-free rate	0.55%	0.55%	0.56%	0.67%
	Weighted-average volatility	79.47%	96.21%	79.80%	96.10%
	Dividend yield	0.00%	0.00%	0.00%	0.00%
	Expected life	4.92 years	5.38 years	4.82 years	6.11 years
	ASC No. 718 requires forfeitures to be estimated at the time of grant and revised if necessary in subsequent periods if actual forfeiture rates differ from those estimates. Forfeitures were estimated based on historical activity for the Company. Stock-based compensation expense for the three months ended June 30, 2013 and 2012 was $27,000 and $60,000, respectively, and $53,000 and $137,000 for the six months ended June 30, 2013 and 2012, respectively, and is expensed in selling, general and administrative expenses and credited to additional paid-in-capital. The Company granted 798,000 and 60,000 stock options during the three months ended June 30, 2013 and 2012, respectively, and 1,128,000 and 110,000 stock options during the six months ended June 30, 2013 and 2012, respectively.

7_NOTES_PAYABLE_AND_CAPITAL_LE

7. NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS	9 Months Ended
	Sep. 30, 2013
Debt Disclosure [Abstract]	'
NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS	'
	Notes Payable
	In May 2013, the Company entered into a financing agreement with a lender under which the Company may borrow up to $500,000 to purchase certain equipment. In August 2013, the maximum amount the Company may borrow was increased to $1,000,000. The Company may borrow amounts in tranches as needed. Each tranche bears interest at 8.32% and is payable in 36 equal monthly installments. The lender has a first security interest in the equipment purchased with the funds borrowed under the agreement. As of June 30, 2013, the Company borrowed approximately $128,000, which is recorded in other current liabilities and other liabilities on the accompanying consolidated balance sheet. As of June 30, 2013, $128,000 remained outstanding.
	In July 2011, the Company entered into an equipment financing agreement with a bank in the amount of $123,000, which is recorded in other current liabilities and other liabilities in the accompanying consolidated balance sheet. The amounts borrowed were used to finance certain equipment purchases and other services related to the relocation of the Company’s Carlsbad, California office. The amount borrowed bears interest at 5.85% and is collateralized by a first priority security interest in the equipment purchased. The amount borrowed is payable over a 36 month period in equal payments of $3,705, which includes interest, until fully paid in August 2014. As of June 30, 2013, approximately $50,000 remained outstanding.
	Capital Lease Obligations
	The Company has capital lease obligations, one of which is a $1,000,000 equipment lease facility entered into with an equipment leasing company in October 2009. The terms of this agreement allowed for use of the facility for 24 months and for use of the facility in multiple tranches with each individual tranche having a 24 month term. As of June 30, 2013, the Company had utilized $743,000 of this facility, which has been accounted for as a capital lease. As of June 30, 2013, $17,000 remained outstanding for those tranches that have not yet expired under this facility. Pursuant to the terms of the agreements related to this facility, the Company has given the equipment leasing company notice of its intent to terminate each individual lease that was reaching the 24 month term as well as its intent to purchase the equipment under the expiring lease at fair market value.

8_COMMITMENTS_AND_CONTINGENCIE

8. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS AND CONTINGENCIES	'
	Sales and Use Tax
	From time to time, state tax authorities will make inquiries as to whether or not a portion of the Company’s services require the collection of sales and use taxes from customers in those states. Many states have expanded their interpretation of their sales and use tax statutes to subject more activities to tax. The Company evaluates such inquiries on a case-by-case basis and has favorably resolved the majority of these tax issues in the past without any material adverse consequences.
	The Company is involved in ongoing sales tax inquiries with certain states and provinces. As a result of those inquiries, the Company recorded a total net liability of $29,000 and $70,000 as of June 30, 2013 and December 31, 2012, respectively, which is included in the sales taxes payable balance in the accompanying consolidated balance sheets. Based on the guidance set forth by ASC No. 450, Contingencies, management has deemed the likelihood as reasonably possible that it will be required to pay all or part of these assessments.

9_ACCUMULATED_OTHER_COMPREHENS

9. ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
ACCUMULATED OTHER COMPREHENSIVE INCOME	'
	Accumulated other comprehensive income includes the accumulated gains or losses from foreign currency translation adjustments. The Company translated the assets and liabilities of its Canadian statement of financial position into U.S. dollars using the period end exchange rate. Revenue and expenses were translated using the weighted-average exchange rates for the reporting period. As of June 30, 2013 and December 31, 2012, $662,000 and $768,000 of foreign currency translation adjustments were recorded in accumulated other comprehensive income, respectively

10_RECENT_ACCOUNTING_PRONOUNCE

10. RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2013
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]	'
RECENT ACCOUNTING PRONOUNCEMENTS	'
	In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2013-11, Income Taxes (Topic 740). This update improves the reporting for unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The update is expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist. The update is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013, which for the Company is January 1, 2014. The Company does not anticipate that adopting this update will have a material impact on its consolidated financial statements.
	In April 2013, the FASB issued ASU No. 2013-07, Presentation of Financial Statements (Topic 205) - Liquidation Basis of Accounting. This update addresses the requirements and methods of applying the liquidation basis of accounting and the disclosure requirements within ASC Topic 205 for the purpose of providing consistency among liquidating entities reporting under U.S. GAAP. Generally, this update provides guidance for the preparation of financial statements and disclosures when liquidation is imminent. This update is effective for periods beginning after December 15, 2013, which for the Company is January 1, 2014. The Company does not anticipate that adopting this update will have a material impact on its consolidated financial statements.
	In March 2013, FASB issued ASU No. 2013-05, Foreign Currency Matters. The amendments in this update resolve the diversity in practice about whether current literature applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. In addition, the amendments in this update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This update is effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013, which for the Company is January 1, 2014. The Company does not anticipate that adopting this update will have a material impact on its consolidated financial statements.
	In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. The amendments in this update require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amount being reclassified is required under GAAP to be reclassified in its entirety to net income. For other amounts that are not required under GAAP to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference other disclosures required under GAAP that provide additional detail about those amounts. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is reclassified to a balance sheet account instead of directly to income or expense in the same reporting period. This update was effective on a prospective basis for reporting periods beginning after December 15, 2012, which for the Company was January 1, 2013. Adopting this update did not have a material impact on the Company’s consolidated financial statements.

11_CONCENTRATIONS_OF_RISK

11. CONCENTRATIONS OF RISK	9 Months Ended
	Sep. 30, 2013
Risks and Uncertainties [Abstract]	'
CONCENTRATIONS OF RISK	'
	Significant Customer
	Buffalo Wild Wings together with its franchisees is a significant customer of the Company. For the three months ended June 30, 2013 and 2012, approximately 27% and 23%, respectively, of the Company’s total revenue was generated from this national chain. For the six months ended June 30, 2013 and 2012, approximately 25% and 23%, respectively, of the Company’s revenue was generated from this chain. As of June 30, 2013 and December 31, 2012, approximately $108,000 and $123,000, respectively, was included in accounts receivable from this customer.
	Single Source Playmaker Supplier
	The Company currently purchases its Classic playmakers from an unaffiliated manufacturer located in Taiwan pursuant to a supply agreement dated April 23, 2007, the term of which automatically renews for one year periods. The Company purchases certain next generation, or Next-Gen, playmaker tablet equipment from an unaffiliated manufacturer located in China, and it purchases its Next-Gen playmaker tablets from another unaffiliated manufacturer. The Company currently does not have alternative sources for its Classic or Next-Gen playmakers or its Next-Gen playmaker equipment. Management believes other manufacturers could be identified to produce the playmaker, playmaker tablets and playmaker equipment on comparable terms. A change in manufacturers, however, could cause delays in supply and may have an adverse effect on the Company’s operations. As of June 30, 2013 and December 31, 2012, approximately $28,000 and $15,000, respectively, were included in accounts payable or accrued expenses for these suppliers.

12_GEOGRAPHICAL_INFORMATION

12. GEOGRAPHICAL INFORMATION	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
GEOGRAPHICAL INFORMATION	'
	Geographic breakdown of the Company’s revenue for the three and six months ended June 30, 2013 and 2012 is as follows:
		Three months ended				Six months ended
		June 30,				June 30,
		2013		2012		2013		2012
	United States	$	5,213,000	$	5,640,000	$	10,984,000	$	11,316,000
	Canada		319,000		375,000		664,000		765,000
	Total revenue	$	5,532,000	$	6,015,000	$	11,648,000	$	12,081,000
	Geographic breakdown of the Company’s long-term tangible assets as of June 30, 2013 and December 31, 2012 is as follows:
		June 30,		December 31,
		2013		2012
	United States	$	3,291,000	$	3,767,000
	Canada		14,000		16,000
	Total assets	$	3,305,000	$	3,783,000

13_RIGHTS_OFFERING

13. RIGHTS OFFERING	9 Months Ended
	Sep. 30, 2013
Rights Offering	'
RIGHTS OFFERING	'
	In February 2012, the Company completed a rights offering to its stockholders of record as of February 2, 2012. The Company issued a total of 2,070,719 shares of its common stock at a subscription price of $0.25 per share. In connection with the rights offering, the Company entered into an investment agreement with Matador Capital Partners, LP, or Matador. Mr. Jeffrey A. Berg, one of the Company’s directors and its Interim Chief Executive Officer, is the managing member of the general partner of Matador. Under the terms of the investment agreement, upon expiration of the rights offering, Matador purchased for $0.25 per share 8,000,000 shares of the Company’s common stock not subscribed for and purchased by holders upon exercise of their subscription rights. The Company received gross proceeds of $2.5 million from the rights offering and under the investment agreement.

14_CAPITAL_STOCK

14. CAPITAL STOCK	9 Months Ended
	Sep. 30, 2013
Shareholders' Equity:	'
CAPITAL STOCK	'
	At the Company's 2013 annual meeting of stockholders held on June 7, 2013, the Company’s stockholders approved an amendment to the Company’s restated certificate of incorporation to increase the number of total authorized shares from 94,000,000 to 178,000,000 and to increase the number of authorized shares of common stock from 84,000,000 to 168,000,000. The Company filed a certificate of amendment of the restated certificate of incorporation of the Company with the Delaware Secretary of State on June 11, 2013 to effect such amendment and it was effective on that same date.

1_BASIS_OF_PRESENTATION_Polici

1. BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Description of Business	'
	Description of Business
	NTN Buzztime, Inc. (the “Company”) was incorporated in Delaware in 1984 as Alroy Industries and changed its corporate name to NTN Communications, Inc. in 1985. The Company changed its name to NTN Buzztime, Inc. in 2005 to better reflect the growing role of the Buzztime consumer brand.
	The Company provides marketing services through interactive game content for hospitality venues that offer the games free to their patrons. The Company has evolved from a content developer and distributor to an interactive entertainment network provider that helps the hospitality venues that subscribe to the Company’s network acquire, engage and retain their patrons. The Company primarily generates revenues by charging subscription fees for its service to its network subscribers and from the sale of advertising aired on in-venue screens as well as in conjunction with customized games. The Company’s games are currently available in over 3,200 locations in the U.S. and Canada.
Basis of Accounting Presentation	'
	Basis of Accounting Presentation
	The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial statements and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the accompanying condensed consolidated financial statements include all adjustments that are necessary, which are of a normal and recurring nature, for a fair presentation for the periods presented of the financial position, results of operations and cash flows of the Company and its wholly-owned subsidiaries: IWN, Inc., IWN, L.P., Buzztime Entertainment, Inc., NTN Wireless Communications, Inc., NTN Software Solutions, Inc., NTN Canada, Inc., and NTN Buzztime, Ltd., all of which, other than NTN Canada, Inc., are dormant subsidiaries. All significant intercompany transactions have been eliminated in consolidation.
	These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2012. The accompanying condensed balance sheet as of December 31, 2012 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2013, or any other period.
	The United States dollar is the Company’s functional currency, except for its operations in Canada where the functional currency is the Canadian dollar. The financial position and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. In accordance with ASC No. 830, Foreign Currency Matters, revenues and expenses of the Company’s foreign subsidiaries have been translated into U.S. dollars at weighted average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded as a separate component of shareholders’ equity, unless there is a sale or complete liquidation of the underlying foreign investments. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. For the three months ended September 30, 2013 and 2012, the Company recorded $8,000 and $13,000 in foreign currency losses, respectively, and for the nine months ended September 30, 2013 and 2012, the Company recorded $7,000 in foreign currency gains and $18,000 in foreign currency losses, respectively. These foreign currency gains and losses were due to settlements of intercompany transactions, re-measurement of intercompany balances with the Company’s Canadian subsidiary and other non-functional currency denominated transactions, which are included in other income (expense), net in the accompanying statements of operations. Exchange rate fluctuations between the United States dollar and Canadian dollar may affect the Company’s results of operations and period-to-period comparisons of its operating results. The Company does not currently engage in hedging or similar transactions to reduce these risks. For the three and nine months ended September 30, 2013, the net impact to the Company’s results of operations from the effect of exchange rate fluctuations was immaterial when compared to the exchange rates for the three and nine months ended September 30, 2012.

2_BASIC_AND_DILUTED_EARNINGS_P1

2. BASIC AND DILUTED EARNINGS PER COMMON SHARE (Table)	9 Months Ended
	Sep. 30, 2013
Basic And Diluted Earnings Per Common Share Table	'
Schedule of basic and diluted earnings per common share	'
		Three months ended					Nine months ended
		September 30,					September 30,
		2013			2012		2013			2012
	Numerator:
	Net (loss) income	$	(234	)	$	54	$	(702	)	$	(1,624	)
	Denominator:
	Weighted average common shares outstanding - basic		71,202			70,876		71,043			68,537
	Effects of diluted common share equivalents		–			497		–			–
	Weighted average common shares outstanding - diluted		71,202			71,373		71,043			68,537
	Net (loss) income per common share - basic	$	(0.00	)	$	0	$	(0.01	)	$	(0.02	)
	Net (loss) income per common share - diluted	$	(0.00	)	$	0	$	(0.01	)	$	(0.02	)

6_STOCKBASED_COMPENSATION_Tabl

6. STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Weighted-Average Assumptions of Stock Based Compensation	'
	The following weighted-average assumptions were used for grants issued during the three and six months ended June 30, 2013 and 2012 under the ASC No. 718 requirements.
		Three months ended June 30,		Six months ended June 30,
		2013	2012	2013	2012
	Weighted-average risk-free rate	0.55%	0.55%	0.56%	0.67%
	Weighted-average volatility	79.47%	96.21%	79.80%	96.10%
	Dividend yield	0.00%	0.00%	0.00%	0.00%
	Expected life	4.92 years	5.38 years	4.82 years	6.11 years

12_GEOGRAPHICAL_INFORMATION_Ta

12. GEOGRAPHICAL INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2013
Segment Reporting [Abstract]	'
Geographic breakdown of revenue	'
	Geographic breakdown of the Company’s revenue for the three and six months ended June 30, 2013 and 2012 is as follows:
		Three months ended				Six months ended
		June 30,				June 30,
		2013		2012		2013		2012
	United States	$	5,213,000	$	5,640,000	$	10,984,000	$	11,316,000
	Canada		319,000		375,000		664,000		765,000
	Total revenue	$	5,532,000	$	6,015,000	$	11,648,000	$	12,081,000
Geographic breakdown of long-term tangible assets	'
	Geographic breakdown of the Company’s long-term tangible assets as of June 30, 2013 and December 31, 2012 is as follows:
		June 30,		December 31,
		2013		2012
	United States	$	3,291,000	$	3,767,000
	Canada		14,000		16,000
	Total assets	$	3,305,000	$	3,783,000

1_BASIS_OF_PRESENTATION_Detail

1. BASIS OF PRESENTATION (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accounting Policies [Abstract]	'	'	'	'
Gain (Loss) on foreign currency	($8,000)	($13,000)	$7,000	($18,000)

2_BASIC_AND_DILUTED_EARNINGS_D

2. BASIC AND DILUTED EARNINGS (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Numerator:	'	'	'	'
Net (loss) income	($234)	$54	($702)	($1,624)
Denominator:	'	'	'	'
Weighted average common shares outstanding - basic	71,202	70,876	71,043	68,537
Effects of diluted common share equivalents	'	497	'	'
Weighted average common shares outstanding - diluted	71,202	71,373	71,043	68,537
Net (loss) income per common share - basic	$0	$0	($0.01)	($0.02)
Net (loss) income per common share - diluted	$0	$0	($0.01)	($0.02)

2_BASIC_AND_DILUTED_EARNINGS_P2

2. BASIC AND DILUTED EARNINGS PER COMMON SHARE (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Earnings Per Share [Abstract]	'	'	'	'
Options, warrants, convertible preferred stock and restricted stock units excluded from per share calculation	7,567,000	6,555,000	7,567,000	7,346,000

3_GOODWILL_AND_OTHER_INTANGIBL1

3. GOODWILL AND OTHER INTANGIBLE ASSETS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'
Amortization expense relating to all intangible assets	$104,000	$93,000	$319,000	$280,000

4_SOFTWARE_DEVELOPMENT_COSTS_D

4. SOFTWARE DEVELOPMENT COSTS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Software Development Costs	'	'	'	'	'
Amortization expense related to capitalized software development costs	$198,000	$162,000	$648,000	$492,000	'
Capitalized software costs were not subject to amortization	808,000	'	808,000	'	156,000
Software Impairment losses	$23,000	'	$115,000	'	'

6_STOCKBASED_COMPENSATION_Deta

6. STOCK-BASED COMPENSATION (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Summary of weighted-average assumptions used for grants issued	'	'	'	'
Weighted-average risk-free rate	1.00%	0.49%	0.60%	0.54%
Weighted-average volatility	77.61%	95.08%	79.58%	95.33%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life	'4 years 8 months 23 days	'5 years 7 months 2 days	'4 years 9 months 22 days	'5 years 8 months 19 days

6_STOCK_BASED_COMPENSATION_Det

6. STOCK BASED COMPENSATION (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Based Compensation	'	'	'	'
Stock-based compensation expense	$34,000	$26,000	$87,000	$163,000
Stock options granted	127,000	335,000	1,255,000	445,000

7_NOTES_PAYABLE_AND_CAPITAL_LE1

7. NOTES PAYABLE AND CAPITAL LEASE OBLIGATIONS (Details Narrative) (USD $)	Sep. 30, 2013
Financing Agreement	'
Note payable	$280,000
Equipment Financing	'
Note payable	40,000
Capital Lease	'
Equipment lease facility	1,000,000
Capital lease outstanding	$743,000

8_COMMITMENTS_AND_CONTINGENCIE1

8. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Commitments and Contingencies Disclosure [Abstract]	'	'
Sales tax payable increase	$29,000	$70,000

9_ACCUMULATED_OTHER_COMPREHENS1

9. ACCUMULATED OTHER COMPREHENSIVE INCOME (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Stockholders' Equity Note [Abstract]	'	'
Foreign currency translation adjustments recorded in accumulated other comprehensive income	$701,000	$768,000

11_CONCENTRATIONS_OF_RISK_Deta

11. CONCENTRATIONS OF RISK (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
In Thousands, unless otherwise specified			One Customer	One Customer	One Customer	One Customer	One Customer	One Customer
			Accounts Receivable	Accounts Receivable	Revenues	Revenues	Revenues	Revenues
Concentration risk percentage	'	'	'	'	28.00%	22.00%	28.00%	23.00%
Accounts receivable from customer	$533	$610	$99	$123	'	'	'	'
Purchase commitment	'	$15	'	'	'	'	'	'

12_GEOGRAPHICAL_INFORMATION_De

12. GEOGRAPHICAL INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	$5,526	$6,050	$17,174	$18,131
United States	'	'	'	'
Revenue	5,216	5,678	16,200	16,993
Canada	'	'	'	'
Revenue	$310	$372	$974	$1,138

12_GEOGRAPHICAL_INFORMATION_De1

12. GEOGRAPHICAL INFORMATION (Details 1) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Long-term tangible assets	$3,227	$3,783
United States	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Long-term tangible assets	3,214	3,767
Canada	'	'
Revenues from External Customers and Long-Lived Assets [Line Items]	'	'
Long-term tangible assets	$13	$16