Eterna Therapeutics (ERNA) 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 05, 2015
Document And Entity Information
Entity Registrant Name	NTN BUZZTIME INC
Entity Central Index Key	748,592
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
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		92,412,255
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 4,678	$ 7,185
Accounts receivable, net of allowances of $157 and $214, respectively	575	2,190
Site equipment to be installed	3,415	4,755
Prepaid expenses and other current assets	1,001	742
Total current assets	9,669	14,872
Fixed assets, net	4,032	3,400
Software development costs, net of accumulated amortization of $2,134 and $3,110, respectively	1,076	1,634
Deferred costs	1,340	1,092
Goodwill	940	1,084
Intangible assets, net	92	129
Other assets	133	57
Total assets	17,282	22,268
Current Liabilities:
Accounts payable	396	617
Accrued compensation	1,070	749
Accrued expenses	715	969
Sales taxes payable	237	133
Income taxes payable	38	104
Current portion of long-term debt (Note 5)	882	2,176
Current portion of obligations under capital leases	73	28
Deferred revenue	1,983	1,836
Other current liabilities	313	481
Total current liabilities	5,707	7,093
Long-term debt	5,679	3,143
Long-term obligations under capital leases	122	30
Deferred revenue, excluding current portion	413	378
Deferred rent	581	693
Other liabilities	0	7
Total liabilities	12,502	11,344
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, 2015 and December 31, 2014.	1	1
Common stock, $.005 par value, 168,000 shares authorized at September 30, 2015 and December 31, 2014; 92,412 and 92,370 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively.	462	462
Treasury stock, at cost, 503 shares at September 30, 2015 and December 31, 2014, respectively	(456)	(456)
Additional paid-in capital	128,634	128,283
Accumulated deficit	(124,089)	(117,845)
Accumulated other comprehensive income (Note 6)	228	479
Total shareholders' equity	4,780	10,924
Total liabilities and shareholders' equity	$ 17,282	$ 22,268

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts - accounts receivable	$ 157	$ 214
Software accumulated amortization	$ 2,134	$ 3,110
Preferred Stock Series A par value per share	$ 0.005	$ 0.005
Preferred Stock Series A liquidation preference	$ 156	$ 156
Preferred Stock Series A shares authorized	5,000,000	5,000,000
Preferred Stock Series A shares outstanding	156,000	156,000
Preferred stock shares issued	156,000	156,000
Common stock par value	$ .005	$ 0.005
Common stock shares authorized	168,000,000	168,000,000
Common stock shares issued	92,412,000	92,370,000
Common stock shares outstanding	92,412,000	92,370,000
Treasury stock shares	503,000	503,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Subscription revenue	$ 4,268	$ 4,425	$ 12,670	$ 13,617
Sales-type lease revenue	984	889	3,075	3,592
Other revenue	827	691	2,253	2,087
Total Revenue	6,079	6,005	17,998	19,296
Operating expenses:
Direct costs (includes depreciation and amortization of $630 and $544 for the three months ended September 30, 2015 and 2014, respectively, and $1,807 and $1,616 for the six months ended September 30, 2015 and 2014, respectively.)	3,196	2,256	9,224	7,592
Selling, general and administrative	4,076	4,863	14,106	13,808
Impairment of capitalized software (Note 3)	0	0	295	661
Depreciation and amortization (excluding depreciation and amortization included in direct operating costs)	121	161	365	464
Total operating expenses	7,393	7,280	23,990	22,525
Operating loss	(1,314)	(1,275)	(5,992)	(3,229)
Other expense, net	(49)	(19)	(231)	(55)
Loss before income taxes	(1,363)	(1,294)	(6,223)	(3,284)
Benefit (provision) for income taxes	15	(21)	(13)	(28)
Net loss	$ (1,348)	$ (1,315)	$ (6,236)	$ (3,312)
Net loss per common share - basic and diluted	$ (.01)	$ (.01)	$ (.07)	$ (.04)
Weighted average shares outstanding - basic and diluted	91,909,000	91,316,000	91,892,000	86,157,000
Comprehensive loss
Net loss	$ (1,348)	$ (1,315)	$ (6,236)	$ (3,312)
Foreign currency translation adjustment	(140)	(82)	(251)	(78)
Total comprehensive loss	$ (1,488)	$ (1,397)	$ (6,487)	$ (3,390)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Depreciation and amortization - part of Direct operating costs	$ 630	$ 544	$ 1,807	$ 1,616

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows used in operating activities:
Net loss	$ (6,236)	$ (3,312)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,172	2,080
Provision for doubtful accounts	(2)	74
Excess and obsolete site equipment to be installed expense	680	0
Stock-based compensation	341	180
Issuance of common stock to consultant in lieu of cash payment	1	238
Impairment of capitalized software	295	661
Loss from disposition of equipment and capitalized software	28	1
Changes in assets and liabilities:
Accounts receivable	1,610	(273)
Site equipment to be installed	(403)	(3,755)
Prepaid expenses and other assets	(501)	240
Accounts payable and accrued liabilities	(51)	264
Income taxes payable	(57)	(2)
Deferred costs	(252)	(424)
Deferred revenue	183	692
Deferred rent	(112)	(100)
Net cash used in operating activities	(2,304)	(3,436)
Cash flows used in investing activities:
Capital expenditures	(781)	(619)
Software development expenditures	(520)	(607)
Acquisition of software	0	(150)
Proceeds from the sale of equipment	9	0
Net cash used in investing activities	(1,292)	(1,376)
Cash flows provided by financing activities:
Proceeds from public offering of common stock, net	0	6,369
Proceeds from exercise of stock options	1	44
Proceeds from long-term debt	5,638	4,321
Payments on long-term debt	(4,396)	(1,451)
Principal payments on capital leases	(39)	(19)
Tax withholding related to net-share settlements of restricted stock units	0	(33)
Net cash provided by financing activities	1,204	9,231
Net (decrease) increase in cash and cash equivalents	(2,392)	4,419
Effect of exchange rate on cash	(115)	(34)
Cash and cash equivalents at beginning of period	7,185	5,455
Cash and cash equivalents at end of period	4,678	9,840
Supplemental disclosures of cash flow information: Cash paid during the period for:
Interest	311	130
Income taxes	68	32
Supplemental disclosure of non-cash investing and financing activities:
Site equipment transferred to fixed assets	1,055	686
Equipment acquired under capital lease	177	0
Issuance of common stock in lieu of payment of preferred dividends	$ 8	$ 8

1. BASIS OF PRESENTATION

1. BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	Description of Business NTN Buzztime, Inc. (the “Company”) delivers interactive entertainment and innovative dining technology to bars and restaurants in North America. Venues license the Company’s customizable solution to differentiate themselves via competitive fun by offering guests trivia, card, sports and arcade games, nationwide competitions, and self-service dining features including dynamic menus, touchscreen ordering and secure payment. The Company’s platform can improve operating efficiencies, create connections among the players and venues and amplify guests’ positive experiences. The Company generates revenues by charging subscription fees for its service to its network subscribers, by leasing equipment (including tablets used in its BEOND platform and the cases and charging trays for the tablets) to certain network subscribers, by hosting live trivia events, by selling advertising aired on in-venue screens and as part of customized games and from the premium products, such as paid arcade, the Company began offering via its BEOND platform in 2014. Currently, over 2,950 venues in the U.S. and Canada subscribe to the Company’s interactive entertainment network, of which approximately 56% are using its BEOND platform. 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. 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. 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, 2014. The accompanying condensed balance sheet as of December 31, 2014 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, 2015 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2015, or any other period. Reclassifications The Company reclassified the consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2014, and the consolidated statement of cash flows for the nine months ended September 30, 2014 to conform to the 2015 presentation. Reclassifications had no impact on net loss or cash flows.

2. BASIC AND DILUTED EARNINGS P

2. BASIC AND DILUTED EARNINGS PER COMMON SHARE	9 Months Ended
	Sep. 30, 2015
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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) No. 260, Earnings per Share

3. IMPAIRMENT OF CAPITALIZED SO

3. IMPAIRMENT OF CAPITALIZED SOFTWARE	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
IMPAIRMENT OF CAPITALIZED SOFTWARE	The Company capitalizes costs related to certain of its software product development projects in accordance with ASC No. 350, Intangibles – Goodwill and Other

4. STOCK-BASED COMPENSATION

4. STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	The Company’s stock-based compensation plans include the NTN Buzztime, Inc. 2004 Performance Incentive Plan (the “2004 Plan”), the NTN Buzztime, Inc. Amended 2010 Performance Incentive Plan (the “Amended 2010 Plan”) and the NTN Buzztime, Inc. 2014 Inducement Plan (the “2014 Plan”). The Company’s stock-based compensation plans are administered by the Nominating and Corporate Governance/Compensation Committee of the Company’s Board of Directors (the “Committee”), which selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures, if any, and other provisions of the award. The 2004 Plan expired in September 2009. From and after the date it expired, no awards could be granted under that plan and all awards that had been granted under that plan before it expired are governed by that plan until they are exercised or expire in accordance with that plan’s terms. At the Company’s 2015 Annual Meeting of Stockholders, the Company’s stockholders approved an increase in the authorized shares to be issued under the Amended 2010 Plan from 6,000,000 to 12,000,000. The Amended 2010 Plan expires in February 2020. As of September 30, 2015, approximately 7,634,000 share-based awards are available to be granted under the Amended 2010 Plan. The 2014 Plan, which provides for the grant of up to 4,250,000 share-based awards to new employees as an inducement material to the new employee entering into employment with the Company, was approved by the Committee in September 2014 in connection with the appointment of Ram Krishnan as the Company’s Chief Executive Officer. As of September 30, 2015, there were no share-based awards available to be granted under the 2014 Plan. The 2014 Plan expires in September 2024. The Company records stock-based compensation in accordance with ASC No. 718 , Compensation – Stock Compensation Equity – Equity-Based Payments to Non-Employees. 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 nine months ended September 30, 2015 and 2014 under the ASC No. 718 requirements. Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted-average risk-free rate 1.27% 1.42% 1.18% 1.37% Weighted-average volatility 105.50% 79.77% 82.51% 80.27% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected life 5.15 years 4.91 years 4. 3 years 4.86 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 September 30, 2015 and 2014 was $123,000 and $68,000, respectively, and $341,000 and $180,000 for the nine months ended September 30, 2015 and 2014, respectively, and is expensed in selling, general and administrative expenses and credited to additional paid-in-capital. The Company granted stock options to purchase 10,000 and 3,828,000 shares of common stock during the three months ended September 30, 2015 and 2014, respectively, and stock options to purchase 2,115,000 and 5,328,000 shares of common stock during the nine months ended September 30, 2015 and 2014, respectively. Stock options issued under all of the Company’s stock-based compensation plans may be exercised on a net-exercise arrangement, where shares of common stock equal to the value of the amount of the exercise price of the stock options being exercised are withheld as payment of the exercise price instead of cash. During the three months ended September 30, 2015, there were no stock options exercised under net-exercise arrangements or for cash. During the nine months ended September 30, 2015, 82,000 shares of common stock were exercised under net-exercise arrangements, and approximately 18,000 shares of common stock were issued. Also during the nine months ended September 30, 2015, the Company received approximately $1,000 in cash payments for the exercise of options to purchase approximately 2,000 shares. The total intrinsic value of all options exercised during the nine months ended September 30, 2015 was approximately $7,000. For the three and nine months ended September 30, 2014, the Company received approximately $22,000 and $44,000, respectively, in cash payments for the exercise of options to purchase approximately 87,000 and 185,000 shares, respectively. There were no net-exercise arrangements during the three and nine months ended September 30, 2014. The total intrinsic value of options exercised during the three and nine months ended September 30, 2014 was approximately $20,000 and $60,000, respectively.

5. DEBT

5. DEBT	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
DEBT	Revolving Line of Credit In April 2015, the Company entered into a loan and security agreement with East West Bank, pursuant to which, the Company may request advances in an aggregate outstanding amount at any time up to the lesser of $7,500,000, which is referred to as the revolving line, or an amount equal to its borrowing base, in each case, less the aggregate outstanding principal amount of prior advances. So long as there is no event of default, the Company may make a one-time request to increase the revolving line by up to $2,500,000, which the lender may accept or decline. All advances are due on April 14, 2018. The Company’s borrowing base is, as of the date of determination, an amount equal to the product of: (a) the average monthly recurring revenue for the immediately preceding three months; times (b) one plus the Company’s average churn rate for the immediately preceding three months (not to exceed zero); times (c) 300%. The churn rate, with respect to any month, is the quotient of the Company’s monthly net revenue change calculated with respect to such month, divided by its monthly revenue from subscriptions for the month. In addition, under the loan and security agreement, the Company is required to meet a minimum adjusted earnings before interest, taxes, depreciation and amortization, or adjusted EBITDA, target and churn rate targets, in each case, as specified in the loan and security agreement. Adjusted EBITDA is the sum (a) net profit (or loss), after provision for taxes, plus (b) interest expense, plus (c) to the extent deducted in the calculation of net profit (or loss), depreciation expense and amortization expense, plus (d) income tax expense, plus (e) non-cash stock compensation expenses, plus (f) other non-cash expenses and charges, plus (g) to the extent approved by East West Bank, other one-time charges, plus (h) to the extent approved by East West Bank, any losses arising from the sale, exchange, transfer or other disposition of assets not in the ordinary course of business. The adjusted EBITDA target is measured as of the last day of each fiscal quarter with respect to the immediately prior six month period, and the churn rate targets are measured on a monthly and trailing three month basis. The Company met these targets as of the quarter ended, September 30, 2015. Advances bear interest, at the Company’s option, at the rate of either (A) a variable rate per annum equal to the prime rate as set forth in The Wall Street Journal As of September 30, 2015, the Company borrowed a total of $4,500,000, all of which has been advanced as Libor Loans with a 3-month interest period. Each time the interest period expired, the Company elected to renew the advance as another Libor Loan with a 3-month interest period. Interest on the LIBOR Loans has ranged from 4.3125% to 4.3750%. The Company used approximately $3,381,000 of the total amount borrowed to pay down existing indebtedness. See “—Equipment Notes Payable,” below. Pursuant to the loan and security agreement, the Company granted and pledged to the lender a first-priority security interest in all the Company’s existing and future personal property. On the closing date of the loan and security agreement, the Company paid $37,500 to the lender as a facility fee. An additional facility fee (equal to the product of (x) 0.50% of the increase in the revolving line times (y) the quotient of the number of days remaining between the effective date of such increase and April 14, 2018, divided by 1,095) will be due if the revolving line is increased pursuant to the Company’s request. The Company also pays an unused line fee equal to 0.50% per year on the difference between the amount of the revolving line as in effect from time to time and the average monthly balance in each month, which is payable monthly in arrears. The average monthly balance is calculated by adding the ending outstanding balance under the revolving line for each day in the month divided by the number of days in the month. Equipment Notes Payable In May 2013, the Company entered into a financing arrangement with a lender under which the Company may borrow up to $500,000 to purchase certain equipment. Over time, the lender has increased the maximum amount the Company may borrow, and as of September 30, 2015, the maximum amount was $9,853,000. The Company may borrow up to the maximum amount in tranches as needed. Each tranche bears interest at 8.32% per annum. With respect to the first $1,000,000 in the aggregate borrowed, principal and interest payments are due in 36 equal monthly installments. With respect to amounts borrowed in excess of the first $1,000,000 in the aggregate, the first monthly payment will be equal to 24% of the principal amount outstanding, and the remaining principal and interest due are payable in 35 equal monthly installments. The Company granted the lender a first security interest in the equipment purchased with the funds borrowed. Through September 30, 2015, the Company borrowed approximately $8,790,000 of the $9,853,000 maximum amount available. In April 2015, the Company used approximately $3,381,000 of the proceeds received from the East West Bank credit facility to pay down a portion of the principal amount the Company had borrowed under this financing arrangement, accrued interest and a prepayment fee. As of September 30, 2015, approximately $2,061,000 of principal remained outstanding under this financing arrangement, which is recorded as long-term debt on the consolidated balance sheets, and approximately $1,063,000 was available for borrowing. However, the East West Bank credit facility prohibits the Company from having more than $2,500,000 owing under this financing arrangement at any time.

6. ACCUMULATED OTHER COMPREHENS

6. ACCUMULATED OTHER COMPREHENSIVE INCOME	9 Months Ended
	Sep. 30, 2015
Stockholders' Equity Note [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME	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

7. RECENT ACCOUNTING PRONOUNCEM

7. RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	Management has considered all recent accounting pronouncements issued since the last audit of the Company’s consolidated financial statements, and believes that these recent pronouncements will not have a material effect on the Company's consolidated financial statements.

8. CONCENTRATIONS OF RISK

8. CONCENTRATIONS OF RISK	9 Months Ended
	Sep. 30, 2015
Risks and Uncertainties [Abstract]
CONCENTRATIONS OF RISK	Significant Customer For the three months ended September 30, 2015 and 2014, the Company generated approximately $2,708,000 and $2,409,000, respectively, of total revenue from Buffalo Wild Wings corporate-owned restaurants and its franchisees, which represented approximately 45% and 40% of total revenue for those periods, respectively. For the nine months ended September 30, 2015 and 2014, the Company generated approximately $8,008,000 and $8,155,000, respectively, of total revenue from Buffalo Wild Wings corporate-owned restaurants and its franchisees, which represented 44% and 42% of total revenue for those periods, respectively. As of September 30, 2015 and December 31, 2014, approximately $117,000 and $1,558,000, respectively, was included in accounts receivable from Buffalo Wild Wings corporate-owned restaurants and its franchisees. Equipment Suppliers The tablet used in the Company’s BEOND product line is manufactured by one unaffiliated third party, and the Company currently does not have an alternative manufacturer or an alternative device to the tablet. The Company currently purchases the BEOND tablets from various unaffiliated third parties. The Company also currently purchases each piece of the tablet equipment (consisting of cases and charging trays for the tablet) from a different unaffiliated third party with respect to each piece of equipment. A different third party assembles the tablet cases. The Company currently does not have an alternative supply source for the tablet equipment or an alternative tablet case assembler. The Company currently purchases its Classic playmakers from an unaffiliated manufacturer pursuant to a supply agreement, the term of which automatically renews for one year periods unless the agreement is terminated in advance of the automatic renewal by either party. The Company currently does not have an alternative manufacturer for its Classic playmakers. However, the Company does not currently expect to purchase additional Classic playmakers. As of September 30, 2015 and December 31, 2014, approximately $176,000 and $423,000, respectively, were included in accounts payable or accrued expenses for equipment suppliers.

1. BASIS OF PRESENTATION (Polic

1. BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Description of Business	NTN Buzztime, Inc. (the “Company”) delivers interactive entertainment and innovative dining technology to bars and restaurants in North America. Venues license the Company’s customizable solution to differentiate themselves via competitive fun by offering guests trivia, card, sports and arcade games, nationwide competitions, and self-service dining features including dynamic menus, touchscreen ordering and secure payment. The Company’s platform can improve operating efficiencies, create connections among the players and venues and amplify guests’ positive experiences. The Company generates revenues by charging subscription fees for its service to its network subscribers, by leasing equipment (including tablets used in its BEOND platform and the cases and charging trays for the tablets) to certain network subscribers, by hosting live trivia events, by selling advertising aired on in-venue screens and as part of customized games and from the premium products, such as paid arcade, the Company began offering via its BEOND platform in 2014. Currently, over 2,950 venues in the U.S. and Canada subscribe to the Company’s interactive entertainment network, of which approximately 56% are using its BEOND platform. 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.
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. 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, 2014. The accompanying condensed balance sheet as of December 31, 2014 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, 2015 are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2015, or any other period.
Reclassifications	The Company reclassified the consolidated statement of operations and comprehensive loss for the three and nine months ended September 30, 2014, and the consolidated statement of cash flows for the nine months ended September 30, 2014 to conform to the 2015 presentation. Reclassifications had no impact on net loss or cash flows.

4. STOCK-BASED COMPENSATION (Ta

4. STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Weighted-Average Assumptions of Stock Based Compensation	Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Weighted-average risk-free rate 1.27% 1.42% 1.18% 1.37% Weighted-average volatility 105.50% 79.77% 82.51% 80.27% Dividend yield 0.00% 0.00% 0.00% 0.00% Expected life 5.15 years 4.91 years 4. 3 years 4.86 years

2. BASIC AND DILUTED EARNINGS17

2. BASIC AND DILUTED EARNINGS PER COMMON SHARE (Details Narrative) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Earnings Per Share [Abstract]
Options, warrants, convertible preferred stock excluded from per share calculation	13,857,000	14,140,000

3. IMPAIRMENT OF CAPITALIZED 18

3. IMPAIRMENT OF CAPITALIZED SOFTWARE (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Impairment of capitalized software	$ 0	$ 0	$ 295	$ 661

4. STOCK-BASED COMPENSATION (De

4. STOCK-BASED COMPENSATION (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary of weighted-average assumptions used for grants issued
Weighted-average risk-free rate	1.27%	1.42%	1.18%	1.37%
Weighted-average volatility	105.50%	79.77%	82.51%	80.27%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected life	5 years 1 month 24 days	4 years 10 months 28 days	4 years 3 months 18 days	4 years 10 months 10 days

4. STOCK BASED COMPENSATION (De

4. STOCK BASED COMPENSATION (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Based Compensation
Stock-based compensation expense	$ 123	$ 68	$ 341	$ 180
Stock options granted	10,000	3,828,000	2,115,000	5,328,000
Number of options exercised	0		82,000
Common stock issued upon option exercises	2,000		2,000	18,000
Proceeds from options exercised	$ 1	$ 22	$ 1	$ 44
Stock purchased from proceeds of options exercised		87,000		185,000
Intrinsic value exercised		$ 20	$ 7	$ 60
2010 Plan [Member]
Stock Based Compensation
Shares available for grant	7,634,000		7,634,000
Shares authorized under plan	12,000,000		12,000,000
2014 Plan [Member]
Stock Based Compensation
Shares available for grant	0		0
Shares authorized under plan	4,250,000		4,250,000

5. DEBT (Details Narrative)

5. DEBT (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Loan balance at end of period	$ 5,679,000	$ 3,143,000
East West Bank
Maximum borrowing capacity	$ 7,500,000
Advance due date	Apr. 14, 2018
Credit line interest rate	Advances bear interest, at the Company’s option, at the rate of either (A) a variable rate per annum equal to the prime rate as set forth in The Wall Street Journal plus 1.25% or (B) at a fixed rate per annum equal to the LIBOR Rate for the interest period for the advance plus 4.00%.
LIBOR interest rate during period	LIBOR loans ranged from 4.3125% to 4.3750%
Amount borrowed during period	$ 4,500,000
Facility fee to lender	37,500
Equipment Notes Payable
Maximum borrowing capacity	$ 9,853,000
Credit line interest rate	8.32% per annum per tranche
Loan balance at end of period	$ 2,061,000
Amount borrowed during period	8,790,000
Amount remaining	$ 1,063,000

6. ACCUMULATED OTHER COMPREHE22

6. ACCUMULATED OTHER COMPREHENSIVE INCOME (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Foreign currency translation adjustments recorded in accumulated other comprehensive income	$ 228	$ 479

8. CONCENTRATIONS OF RISK (Deta

8. CONCENTRATIONS OF RISK (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts receivable	$ 575		$ 575		$ 2,190
Accounts payable from equipment suppliers	176		176		423
Revenues | One Customer
Revenues	$ 2,708	$ 2,409	$ 8,008	$ 8,155
Concentration risk percentage	45.00%	40.00%	44.00%	42.00%
Accounts Receivable | One Customer
Accounts receivable	$ 117		$ 117		$ 1,558