Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | SPYR, Inc. | |
Entity Central Index Key | 829,325 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
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 | 160,507,026 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,017 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 2,296,000 | $ 3,204,000 |
Accounts receivable, net | 48,000 | 44,000 |
Other receivable | 100,000 | 200,000 |
Inventory | 8,000 | 12,000 |
Prepaid expenses | 52,000 | 50,000 |
Trading securities, at market value | 44,000 | 59,000 |
Total Current Assets | 2,548,000 | 3,569,000 |
Property and equipment, net | 184,000 | 211,000 |
Intangible assets, net | 17,000 | 18,000 |
Capitalized licensing rights, net | 38,000 | 40,000 |
Other assets | 22,000 | 22,000 |
TOTAL ASSETS | 2,809,000 | 3,860,000 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 222,000 | 176,000 |
Total Current Liabilities | 222,000 | 176,000 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of March 31, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of March 31, 2017 and December 31, 2016 | 13 | 13 |
Common Stock, $0.0001 par value, 250,000,000 shares authorized 160,447,026 and 157,637,026 shares issued and outstanding as of March 31, 2017 and December 31, 2016 | 16,044 | 15,763 |
Additional paid-in capital | 37,111,943 | 34,752,224 |
Accumulated deficit | (34,541,000) | (31,084,000) |
Total Stockholders' Equity | 2,587,000 | 3,684,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 2,809,000 | 3,860,000 |
Class A Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of March 31, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of March 31, 2017 and December 31, 2016 | 11 | 11 |
Total Stockholders' Equity | 11 | 11 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 11 | 11 |
Class E Preferred Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of March 31, 2017 and December 31, 2016; 20,000 Class E shares issued and outstanding as of March 31, 2017 and December 31, 2016 | 2 | 2 |
Total Stockholders' Equity | 2 | 2 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2 | $ 2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value per share | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 160,447,026 | 157,637,026 |
Common stock, shares outstanding | 160,447,026 | 157,637,026 |
Class A Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 107,636 | 107,636 |
Preferred stock, shares outstanding | 107,636 | 107,636 |
Class E Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 20,000 | 20,000 |
Preferred stock, shares outstanding | 20,000 | 20,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 364,000 | $ 332,000 |
Cost of sales | 99,000 | 97,000 |
Gross Margin | 265,000 | 235,000 |
Expenses | ||
Labor and related expenses | 1,493,000 | 553,000 |
Rent | 99,000 | 104,000 |
Depreciation and amortization | 30,000 | 38,000 |
Professional fees | 1,592,000 | 219,000 |
Research and development | 113,000 | 75,000 |
Other general and administrative | 383,000 | 210,000 |
Total Operating Expenses | 3,710,000 | 1,199,000 |
Operating Loss | (3,445,000) | (964,000) |
Other Income (Expense) | ||
Interest and dividend income | 3,000 | 5,000 |
Unrealized (loss) gain on trading securities | (15,000) | 101,000 |
Gain on sale of marketable securities | 49,000 | |
Total Other (Expense) Income | (12,000) | 155,000 |
Loss from continuing operations | (3,457,000) | (809,000) |
Loss on discontinued operations | (4,000) | |
Net Loss | $ (3,457,000) | $ (813,000) |
Loss from continuing operations | ||
Basic and Diluted earnings per share | $ (0.02) | $ (0.01) |
Loss on discontinued operations | ||
Basic and Diluted earnings per share | ||
Net Loss | ||
Basic and Diluted earnings per share | $ (0.02) | $ (0.01) |
Weighted Average Common Shares | ||
Basic and Diluted | 159,333,637 | 152,289,857 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) - 3 months ended Mar. 31, 2017 - USD ($) | Class A Preferred Stock [Member] | Class E Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance preferred stock, shares at Dec. 31, 2016 | 107,636 | 20,000 | ||||
Balance common stock, shares at Dec. 31, 2016 | 157,637,026 | 157,637,026 | ||||
Balance, value at Dec. 31, 2016 | $ 11 | $ 2 | $ 15,763 | $ 34,752,224 | $ (31,084,000) | $ 3,684,000 |
Fair value of common stock issued for employee compensation, shares | 1,250,000 | |||||
Fair value of common stock issued for employee compensation, value | $ 125 | 846,875 | 847,000 | |||
Fair value of common stock issued for professional fees, shares | 1,560,000 | |||||
Fair value of common stock issued for professional fees, value | $ 156 | 1,064,844 | 1,065,000 | |||
Vesting of options and warrants granted for services | 402,000 | 402,000 | ||||
Vesting of shares of common stock issued for services | 46,000 | 46,000 | ||||
Net loss | (3,457,000) | $ (3,457,000) | ||||
Balance preferred stock , shares at Mar. 31, 2017 | 107,636 | 20,000 | ||||
Balance common stock, shares at Mar. 31, 2017 | 160,447,026 | 160,447,026 | ||||
Balance, value at Mar. 31, 2017 | $ 11 | $ 2 | $ 16,044 | $ 37,111,943 | $ (34,541,000) | $ 2,587,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash Flows From Operating Activities: | ||
Net loss for the period | $ (3,457,000) | $ (813,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on discontinued operations | (4,000) | |
Depreciation and amortization | 30,000 | 38,000 |
Fair value of vesting warrants and options | 402,000 | |
Common stock issued for employee compensation | 847,000 | 200,000 |
Common stock issued for professional fees | 1,065,000 | 52,000 |
Vesting of shares of common stock issued for services | 46,000 | 6,000 |
Unrealized loss on trading securities | (15,000) | 101,000 |
(Gain) loss on sale of trading securities | 49,000 | |
(Increase) decrease in accounts receivables | 4,000 | 20,000 |
Decrease (Increase) in other receivables | (100,000) | |
Decrease in inventory | (4,000) | (3,000) |
(Increase) decrease in prepaid expenses | 2,000 | (15,000) |
Increase (decrease) in accounts payable and accrued liabilities | 46,000 | 34,000 |
Decrease in related party accounts payable | (8,000) | |
Net Cash Used in Operating Activities from Continuing Operations | (908,000) | (639,000) |
Net Cash Used in Operating Activities from Discontinued Operations | (4,000) | |
Net Cash Used in Operating Activities | (908,000) | (643,000) |
Cash Flows From Investing Activities: | ||
Purchase of licensing rights | 10,000 | |
Purchases of trading securities | 510,000 | |
Proceeds from sale of trading securities | 189,000 | |
Purchase of property and equipment | 40,000 | |
Net Cash (Used in) Provided by Investing Activities | (371,000) | |
Net decrease in Cash | (908,000) | (1,014,000) |
Cash and cash equivalents at beginning of period | 3,204,000 | 6,904,000 |
Cash and cash equivalents at end of period | 2,296,000 | 5,890,000 |
Supplemental Disclosure of Interest and Income Taxes Paid: | ||
Interest paid during the period | ||
Income taxes paid during the period |
Organization And Summary Of Sig
Organization And Summary Of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Organization And Summary Of Significant Accounting Policies | |
Organization and Summary of Significant Accounting Policies | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim 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, 2016 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2016 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results. Organization The Company was incorporated as Conceptualistics, Inc. on January 6, 1988 in Delaware. Subsequent to its incorporation, the Company changed its name to Eat at Joe’s, Ltd. In February 2015, the Company changed its name to SPYR, Inc. and adopted a new ticker symbol “SPYR” effective March 12, 2015. Nature of Business The primary focus of SPYR, Inc. (the “Company”) is to act as a holding company and develop a portfolio of profitable subsidiaries, not limited by any particular industry or business. We currently own three subsidiaries, two in the digital technology industry and, one in the restaurant industry, each having their own particular focus. Through our wholly owned subsidiaries, SPYR APPS, LLC and SPYR APPS Oy, we operate our mobile games and applications business. The focus of the SPYR APPS subsidiaries is the development and publication of our own mobile games as well as the publication of games developed by third-party developers. Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017 and will not be renewed. Concurrent with expiration of the lease the restaurant closed. The Company’s plan is to divest itself from its restaurant division and is considering spinning off the business, and issue a stock dividend to its shareholders; however, there is no assurance this can be completed. The Company is also exploring opportunities to license or franchise the name “Eat at Joe’s” as well as merger and acquisition targets of other food related businesses. Principles of Consolidation The consolidated financial statements include the accounts of SPYR, Inc. and its wholly-owned subsidiaries, SPYR APPS, LLC, a Nevada Limited Liability Company, and SPYR APPS, Oy, a Finnish Limited Liability Company, and E.A.J.: PHL, Airport Inc., a Pennsylvania corporation. Intercompany accounts and transactions have been eliminated. Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2017, the Company recorded a net loss from continuing operations of $3,457,000 and utilized cash in continuing operations of $908,000. As of March 31, 2017, our cash balance was $2,296,000 and we had trading securities of $44,000. The Company’s restaurant, Eat At Joes closed in April 2017, concurrent with the expiration of the lease. We estimate the Company currently has sufficient cash and liquidity to meet its anticipated working capital for the next twelve months. Historically, we have financed our operations primarily through private sales of our trading securities or through sales of our common stock. If our sales goals for our products do not materialize as planned, we believe that the Company can reduce its operating and product development costs that would allow us to maintain sufficient cash levels to continue operations. However, if we are not able to achieve profitable operations at some point in the future, we may have insufficient working capital to maintain our operations as we presently intend to conduct them or to fund our expansion, marketing, and product development plans. There can be no assurance that we will be able to obtain such financing on acceptable terms, or at all. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions used by management affected impairment analysis for fixed assets, intangible assets, amounts of potential liabilities and valuation of issuance of equity securities. Actual results could differ from those estimates. Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (EPS) includes basic and diluted EPS. Basic EPS is calculated by dividing the Company’s net income (loss) available to common stockholders by the weighted average number of common shares during the period. Diluted EPS reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. In computing diluted EPS, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. The basic and fully diluted shares for the three months ended March 31, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 150,775, Options – 5,970,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended March 31, 2017. The basic and fully diluted shares for the three months ended March 31, 2016 are the same because the inclusion of the potential shares (Non-vested Common – 241,667, Class A – 26,909,028, Class E – 696,767) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended March 31, 2016. Software Licensing and Publication Costs Software licensing and publishing costs pertain to non-refundable payments made to independent gaming software developers pursuant to licensing agreements. The payments are intended to assist gaming software developers in the marketing and further development of gaming software applications. Software licensing and publication costs were $147,000 and $15,000 for the three months ended March 31, 2017 and 2016, respectively, and was reflected as part of Other general and administrative expenses on the accompanying condensed consolidated statements of operations. Capitalized Licensing Rights Capitalized licensing rights represent fees paid to intellectual property rights holders for use of their trademarks, copyrights, software, technology, music or other intellectual property or proprietary rights in the development of our products. Depending upon the agreement with the rights holder, we may obtain the right to use the intellectual property in multiple products over a number of years, or alternatively, for a single product. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if management makes different judgments or utilizes different estimates in evaluating these qualitative factors. In a prior period, the Company capitalized $50,000 as a result of the acquisition of licensing rights of one gaming applications. The Company estimates that the gaming application will have an estimated life of five years, which approximates the term of the license. As of March 31, 2017 and December 31, 2016, the unamortized capitalized licensing rights amounted to $38,000 and $40,000 respectively. Research and Development Costs Costs incurred for research and development are expensed as incurred. During the three months ended March 31, 2017 and 2016, the Company incurred $113,000 and $75,000 in research and development costs paid to an independent gaming software developer for the Pocket Starships game. Reclassifications During the period ended March 31, 2016, the Company incurred $75,000 The reclassification had no effect on total assets, total shareholder's equity, net loss or cash flows as previously presented. Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |
Trading Securities
Trading Securities | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Trading Securities | NOTE 2 - TRADING SECURITIES The Company’s securities investments are bought and held principally for the purpose of selling them in the short term and are classified as trading securities. Trading securities are recorded at fair value based on quoted market prices (level 1) on the balance sheet in current assets, with the change in fair value during the period included in earnings as unrealized gains or losses in the statement of operations. Gains from the sales of such securities will be utilized to fund payment of obligations and to provide working capital for operations and to finance future growth, including, but not limited to: conducting our ongoing business, conducting strategic business development, marketing analysis, due diligence investigations into possible acquisitions, and research and development and implementation of the Company’s business plans generally. Investments in securities are summarized as follows: Fair Value at Year Beginning of Year Purchases Proceeds from Sale Gain on Sale Unrealized Loss Fair Value at March 31, 2017 2017 $ 59,000 $ — $ — $ — $ (15,000 ) $ 44,000 Realized gains and losses are determined on the basis of specific identification. During the three months ended March 31, 2017 and 2016, sales proceeds and gross realized gains and losses on trading securities were: March 31, March 31, Sales proceeds $ — $ 189,000 Gross realized (losses) $ — $ — Gross realized gains — 49,000 Gain (loss) on sale of trading securities $ — $ 49,000 The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs March 31, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 44,000 $ 44,000 $ - $ - Money market funds 36,000 36,000 - - Total $ 80,000 $ 80,000 $ - $ - Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Trading securities $ 59,000 $ 59,000 $ - $ - Money market funds 36,000 36,000 - - Total $ 95,000 $ 95,000 $ - $ - The fair value of the Company’s trading securities is determined by reference to quoted market prices (level 1). During the three months ended March 31, 2017, the Company recorded $15,000 in unrealized losses to account for the changes in fair value of its trading securities. During the three months ended March 31, 2016, the Company recorded $101,000 in unrealized gains to account for the changes in fair value of its trading securities. |
Property And Equipment
Property And Equipment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: March 31, December 31, (Unaudited) Equipment $ 150,000 $ 151,000 Furniture & fixtures 116,000 116,000 Leasehold improvements 381,000 381,000 647,000 648,000 Less: accumulated depreciation and amortization (463,000 ) (437,000 ) Property and Equipment, Net $ 184,000 $ 211,000 Depreciation and amortization expense for the three months ended March 31, 2017 and 2016 was $27,000 and $29,000, respectively. |
Equity Transactions
Equity Transactions | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Equity Transactions | NOTE 4 – EQUITY TRANSACTIONS Common Stock: During the three months ended March 31, 2017, the Company issued an aggregate of 1,250,000 shares of common stock to employees with a total fair value of $847,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $847,000 upon issuance. The shares issued were valued at the date earned under the respective agreements. During the three months ended March 31, 2017, the Company issued an aggregate of 1,560,000 shares of restricted common stock to consultants with a total fair value of $1,065,000. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $1,065,000 upon issuance. The shares issued were valued at the date earned under the respective agreements. Common Stock with Vesting Terms: The following table summarizes common stock with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2016 20,833 $ 0.50 Granted — — Vested (20,833) 0.50 Forfeited — — Non-vested, March 31, 2017 — $ — In February 2015, the Company granted and issued 500,000 shares of its restricted common stock to a consultant pursuant to a consulting agreement. The 500,000 shares are forfeitable and are deemed earned upon completion of service over a period of twenty-four months. The Company recognizes the fair value of these shares as they vest. As of December 31, 2016, 479,167 of these shares had vested. During the three months ended March 31, 2017, the remaining 20,833 of these shares vested and as a result, the Company recognized compensation cost of $46,000. As of March 31, 2017, there were no unvested shares and no unearned compensation costs to be recorded. When calculating basic net income (loss) per share, these shares are included in weighted average common shares outstanding from the time they vest. When calculating diluted net income per share, these shares are included in weighted average common shares outstanding as of their grant date. Options The following table summarizes common stock options activity: Weighted Average Options Exercise Price December 31, 2016 12,900,000 $ 2.83 Granted 570,000 1.00 Exercised — — Cancelled — — Forfeited (7,500,000) 3.97 Outstanding, March 31, 2017 5,970,000 3.32 Exercisable, March 31, 2017 4,585,000 $ 3.43 During the period ended March 31, 2017, the Company granted stock options to consultants to purchase a total of 570,000 shares of common stock. A total of 185,000 options vested upon grant while the remaining 385,000 options will vest through February 2018 at a rate of 35,000 shares per month. The options are exercisable at $1.00 per share and will expire over 4 years. The fair values of the options are recorded at their respective grant dates computed using the Black-Scholes Option Pricing Model. During the three months ended March 31, 2017, the Company recognized $111,000 in compensation expense based upon the vesting of outstanding options. As of March 31, 2017 the unamortized compensation expense for unvested options was $231,000 which will be recognized over the vesting period. The weighted average exercise prices, remaining lives for options granted, and exercisable as of March 31, 2017, were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $1.00 1,720,000 0.75 – 3.86 $1.00 1,335,000 $1.00 $2.50 1,250,000 1.75 $2.50 750,000 $2.50 $5.00 3,000,000 2.75 $5.00 2,500,000 $5.00 5,970,000 $3.32 4,585,000 $3.43 At March 31, 2017, the Company’s closing stock price was $0.65 per share. As all outstanding options had an exercise price greater than $0.65 per share, there was no intrinsic value of the options outstanding at March 31, 2017. Warrants: The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price December 31, 2016 200,000 $ 0.50 Granted 1,000,000 1.75 Exercised — — Cancelled — — Forfeited — — Outstanding, March 31, 2017 1,200,000 $ 1.54 Exercisable, March 31, 2017 1,200,000 $ 1.54 In March 2017, pursuant to an employee separation agreement, the Company granted warrants to purchase a total of 1,000,000 shares of restricted common stock with an exercise price of $1.50 and $2.00 which will expire December 31, 2018. The warrants are fully vested and exercisable upon grant. Total fair value of the warrants at grant date amounted to $291,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant. The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of March 31, 2017, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $0.50 200,000 0.6 $1.50 500,000 1.75 $2.00 500,000 1.75 1,200,000 At March 31, 2017, the Company’s closing stock price was $0.65 per share and the aggregate intrinsic value of the warrants outstanding at March 31, 2017 was $30,000. The table below represents the average assumptions used in valuing the stock options and warrants granted in fiscal 2017: Three-Months Ended March 31, 2017 Expected life in years 1.75 – 3.92 Stock price volatility 127% - 158% Risk free interest rate 1.26 % - 1.60% Expected dividends - Forfeiture rate - The assumptions used in the Black Scholes models referred to above are based upon the following data: (1) the contractual life of the underlying non-employee options is the expected life. The expected life of the employee option is estimated by considering the contractual term of the option, the vesting period of the option, the employees’ expected exercise behavior and the post-vesting employee turnover rate. (2) The expected stock price volatility was based upon the Company’s historical stock price over the expected term of the option. (3) The risk-free interest rate is based on published U.S. Treasury Department interest rates for the expected terms of the underlying options. (4) The expected dividend yield was based on the fact that the Company has not paid dividends to common shareholders in the past and does not expect to pay dividends to common shareholders in the future. (5) The expected forfeiture rate is based on historical forfeiture activity and assumptions regarding future forfeitures based on the composition of current grantees. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 5 – SEGMENT REPORTING The Company operated in two segments: Digital Media and Restaurant, which provide different products or services. Digital Media Segment Restaurant Segment - Our lease in the Philadelphia Airport expired in April 2017 and will not be renewed. Concurrent with expiration of the lease the restaurant closed. The Company’s plan is to divest itself from its restaurant division and is considering spinning off the business, and issue a stock dividend to its shareholders; however, there is no assurance this can be completed. The Company is also exploring opportunities to license or franchise the name “Eat at Joe’s®” as well as merger and acquisition targets of other businesses in the food service industries. Pursuant to current accounting guidelines, the Company will report the restaurant segment as a discontinued operations starting in April 2017. Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses, interest income, interest expense, gains and losses on trading or marketable securities and income taxes are managed on a total company basis. Information related to these segments is as follows: REPORTABLE SEGMENTS THREE MONTHS ENDED MARCH 31, 2017 (Unaudited) Digital Media Restaurants Corporate Consolidated Revenues $ 52,000 $ 312,000 $ — $ 364,000 Cost of sales — 99,000 — 99,000 Research and development 113,000 — — 113,000 General and administrative 751,000 233,000 2,583,000 3,567,000 Depreciation and amortization 3,000 15,000 12,000 30,000 Operating loss $ (815,000 ) $ (35,000 ) $ (2,595,000 ) $ (3,445,000 ) Current assets $ 316,000 $ 378,000 $ 1,854,000 $ 2,548,000 Property and equipment, net 6,000 15,000 163,000 184,000 Intangible assets — — 17,000 17,000 Other non-current assets 38,000 17,000 5,000 60,000 Total assets $ 360,000 $ 410,000 $ 2,039,000 $ 2,809,000 REPORTABLE SEGMENTS THREE MONTHS ENDED MARCH 31, 2016 (Unaudited) Digital Media Restaurants Corporate Consolidated Revenues $ 35,000 $ 297,000 $ — $ 332,000 Cost of sales — 97,000 — 97,000 Research and development 75,000 — — 75,000 General and administrative 258,000 239,000 589,000 1,086,000 Depreciation and amortization 8,000 19,000 11,000 38,000 Operating income (loss) $ (306,000 ) $ (58,000 ) $ (600,000 ) $ (964,000 ) Current assets $ 137,000 $ 245,000 $ 6,463,000 $ 6,845,000 Property and equipment, net — 78,000 208,000 286,000 Intangible assets — — 20,000 20,000 Other non-current assets — 17,000 6,000 23,000 Total assets $ 137,000 $ 340,000 $ 6,697,000 $ 7,174,000 |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 – COMMITMENTS AND CONTINGENCIES We are involved in certain legal proceedings that arise from time to time in the ordinary course of our business. Except for income tax contingencies, we record accruals for contingencies to the extent that our management concludes that the occurrence is probable and that the related amounts of loss can be reasonably estimated. Legal expenses associated with the contingency are expensed as incurred. A material legal proceeding that is currently pending is as follows: On October 14, 2015, the Company was named as a defendant in a case filed in the United States District Court for the District of Delaware case: Zakeni Limited v. SPYR, Inc., f/k/a Eat at Joe’s., Ltd. The suit relates to the Company’s issuance of two convertible debentures in the aggregate principal amount of $1,500,000 in 1998. The plaintiff is seeking payment or conversion of said convertible debentures together with accrued interest and unspecified damages. The Company believes the claim is not a valid debt and is vigorously defending this lawsuit. On December 4, 2015, the Company filed a motion to dismiss the suit based on the statute of limitations. In evaluating a motion to dismiss, the Court is only allowed to view the allegations set forth in the plaintiff’s complaint and documents referenced therein, must assume that those allegations are true, and must construe all evidence contained in the referenced documents in a light most favorable to the plaintiff. On August 24, 2016, under this standard, the Court determined that the legal requirements to grant the motion to dismiss had not been fully satisfied and denied the Company’s Motion to Dismiss. Accordingly, no final determinations regarding liability have been made, the case will proceed to be litigated in the normal course, and, if the Company elects, it will have the ability to again present its arguments for dismissal prior to trial through a motion for summary judgment, which will allow for a determination to be made based on a legal standard that is slightly less favorable to the plaintiff. If that motion is denied, the Company will still have the opportunity to present all of its arguments and defenses at trial, at which Zakeni will have to prove its case by a preponderance of the evidence. The case is scheduled for trial on January 8, 2018. Based upon available information at this very early stage of litigation, it is still the belief of management and opinion of in-house counsel that the Company will obtain a favorable ruling and no amount will be awarded to the plaintiff in this action. Accordingly, Management believes the likelihood of material loss resulting from this lawsuit to be remote. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Subsequent Events | NOTE 7 – SUBSEQUENT EVENTS Subsequent to March 31, 2017, the Company issued an aggregate of 60,000 shares of common stock to third party service providers with a total fair value of $38,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. |
Organization And Summary Of S14
Organization And Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization And Summary Of Significant Accounting Policies Policies | |
Interim Financial Statements | Interim Financial Statements The accompanying condensed consolidated financial statements are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Accordingly, these interim 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, 2016 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2016 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including notes, required by GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods reflected. Except as noted, all adjustments contained herein are of a normal recurring nature. Results of operations for the fiscal periods presented herein are not necessarily indicative of fiscal year-end results. |
Organization | Organization The Company was incorporated as Conceptualistics, Inc. on January 6, 1988 in Delaware. Subsequent to its incorporation, the Company changed its name to Eat at Joe’s, Ltd. In February 2015, the Company changed its name to SPYR, Inc. and adopted a new ticker symbol “SPYR” effective March 12, 2015. |
Nature of Business | Nature of Business The primary focus of SPYR, Inc. (the “Company”) is to act as a holding company and develop a portfolio of profitable subsidiaries, not limited by any particular industry or business. We currently own three subsidiaries, two in the digital technology industry and, one in the restaurant industry, each having their own particular focus. Through our wholly owned subsidiaries, SPYR APPS, LLC and SPYR APPS Oy, we operate our mobile games and applications business. The focus of the SPYR APPS subsidiaries is the development and publication of our own mobile games as well as the publication of games developed by third-party developers. Through our other wholly owned subsidiary, E.A.J.: PHL Airport, Inc., we owned and operated the restaurant “Eat at Joe’s®,” which was located in the Philadelphia International Airport since 1997. Our lease in the Philadelphia Airport expired in April 2017 and will not be renewed. Concurrent with expiration of the lease the restaurant closed. The Company’s plan is to divest itself from its restaurant division and is considering spinning off the business, and issue a stock dividend to its shareholders; however, there is no assurance this can be completed. The Company is also exploring opportunities to license or franchise the name “Eat at Joe’s” as well as merger and acquisition targets of other food related businesses. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of SPYR, Inc. and its wholly-owned subsidiaries, SPYR APPS, LLC, a Nevada Limited Liability Company, and SPYR APPS, Oy, a Finnish Limited Liability Company, and E.A.J.: PHL, Airport Inc., a Pennsylvania corporation. Intercompany accounts and transactions have been eliminated. |
Liquidity | Liquidity The accompanying financial statements have been prepared under the assumption that the Company will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2017, the Company recorded a net loss from continuing operations of $3,457,000 and utilized cash in continuing operations of $908,000. As of March 31, 2017, our cash balance was $2,296,000 and we had trading securities of $44,000. The Company’s restaurant, Eat At Joes closed in April 2017, concurrent with the expiration of the lease. We estimate the Company currently has sufficient cash and liquidity to meet its anticipated working capital for the next twelve months. Historically, we have financed our operations primarily through private sales of our trading securities or through sales of our common stock. If our sales goals for our products do not materialize as planned, we believe that the Company can reduce its operating and product development costs that would allow us to maintain sufficient cash levels to continue operations. However, if we are not able to achieve profitable operations at some point in the future, we may have insufficient working capital to maintain our operations as we presently intend to conduct them or to fund our expansion, marketing, and product development plans. There can be no assurance that we will be able to obtain such financing on acceptable terms, or at all. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates and assumptions used by management affected impairment analysis for fixed assets, intangible assets, amounts of potential liabilities and valuation of issuance of equity securities. Actual results could differ from those estimates. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company’s computation of earnings (loss) per share (EPS) includes basic and diluted EPS. Basic EPS is calculated by dividing the Company’s net income (loss) available to common stockholders by the weighted average number of common shares during the period. Diluted EPS reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the net income (loss) of the Company. In computing diluted EPS, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. The basic and fully diluted shares for the three months ended March 31, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 150,775, Options – 5,970,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended March 31, 2017. The basic and fully diluted shares for the three months ended March 31, 2016 are the same because the inclusion of the potential shares (Non-vested Common – 241,667, Class A – 26,909,028, Class E – 696,767) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended March 31, 2016. |
Software Licensing and Publication Costs | Software Licensing and Publication Costs Software licensing and publishing costs pertain to non-refundable payments made to independent gaming software developers pursuant to licensing agreements. The payments are intended to assist gaming software developers in the marketing and further development of gaming software applications. Software licensing and publication costs were $147,000 and $15,000 for the three months ended March 31, 2017 and 2016, respectively, and was reflected as part of Other general and administrative expenses on the accompanying condensed consolidated statements of operations. |
Capitalized Licensing Rights | Capitalized Licensing Rights Capitalized licensing rights represent fees paid to intellectual property rights holders for use of their trademarks, copyrights, software, technology, music or other intellectual property or proprietary rights in the development of our products. Depending upon the agreement with the rights holder, we may obtain the right to use the intellectual property in multiple products over a number of years, or alternatively, for a single product. Significant management judgments and estimates are utilized in assessing the recoverability of capitalized costs. In evaluating the recoverability of capitalized costs, the assessment of expected product performance utilizes forecasted sales amounts and estimates of additional costs to be incurred. If revised forecasted or actual product sales are less than the originally forecasted amounts utilized in the initial recoverability analysis, the net realizable value may be lower than originally estimated in any given quarter, which could result in an impairment charge. Material differences may result in the amount and timing of expenses for any period if management makes different judgments or utilizes different estimates in evaluating these qualitative factors. In a prior period, the Company capitalized $50,000 as a result of the acquisition of licensing rights of one gaming applications. The Company estimates that the gaming application will have an estimated life of five years, which approximates the term of the license. As of March 31, 2017 and December 31, 2016, the unamortized capitalized licensing rights amounted to $38,000 and $40,000 respectively. |
Research and Development Costs | Research and Development Costs Costs incurred for research and development are expensed as incurred. During the three months ended March 31, 2017 and 2016, the Company incurred $113,000 and $75,000 in research and development costs paid to an independent gaming software developer for the Pocket Starships game. |
Reclassifications | Reclassifications During the period ended March 31, 2016, the Company incurred $75,000 The reclassification had no effect on total assets, total shareholder's equity, net loss or cash flows as previously presented. |
Recent Accounting Standards | Recent Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |
Trading Securities (Tables)
Trading Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Trading Securities Tables | |
Schedule of Change in Investment in Securities | Investments in securities are summarized as follows: Fair Value at Year Beginning of Year Purchases Proceeds from Sale Gain on Sale Unrealized Loss Fair Value at March 31, 2017 2017 $ 59,000 $ — $ — $ — $ (15,000 ) $ 44,000 |
Schedule of Gross Realized Gain\Loss on Securities | During the three months ended March 31, 2017 and 2016, sales proceeds and gross realized gains and losses on trading securities were: March 31, March 31, Sales proceeds $ — $ 189,000 Gross realized (losses) $ — $ — Gross realized gains — 49,000 Gain (loss) on sale of trading securities $ — $ 49,000 |
Schedule of Fair Value of Assets Measured on Recurring Basis | The following table discloses the assets measured at fair value on a recurring basis and the methods used to determine fair value: Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs March 31, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 44,000 $ 44,000 $ - $ - Money market funds 36,000 36,000 - - Total $ 80,000 $ 80,000 $ - $ - Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2016 (Level 1) (Level 2) (Level 3) Trading securities $ 59,000 $ 59,000 $ - $ - Money market funds 36,000 36,000 - - Total $ 95,000 $ 95,000 $ - $ - |
Property And Equipment (Tables)
Property And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: March 31, December 31, (Unaudited) Equipment $ 150,000 $ 151,000 Furniture & fixtures 116,000 116,000 Leasehold improvements 381,000 381,000 647,000 648,000 Less: accumulated depreciation and amortization (463,000 ) (437,000 ) Property and Equipment, Net $ 184,000 $ 211,000 |
Equity Transactions (Tables)
Equity Transactions (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Transactions Tables | |
Summarizes Common Stock with Vesting Terms Activity | The following table summarizes common stock with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2016 20,833 $ 0.50 Granted — — Vested (20,833) 0.50 Forfeited — — Non-vested, March 31, 2017 — $ — |
Summarizes Common Stock Options Activity | The following table summarizes common stock options activity: Weighted Average Options Exercise Price December 31, 2016 12,900,000 $ 2.83 Granted 570,000 1.00 Exercised — — Cancelled — — Forfeited (7,500,000) 3.97 Outstanding, March 31, 2017 5,970,000 3.32 Exercisable, March 31, 2017 4,585,000 $ 3.43 |
Schedule of Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for options granted, and exercisable as of March 31, 2017, were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $1.00 1,720,000 0.75 – 3.86 $1.00 1,335,000 $1.00 $2.50 1,250,000 1.75 $2.50 750,000 $2.50 $5.00 3,000,000 2.75 $5.00 2,500,000 $5.00 5,970,000 $3.32 4,585,000 $3.43 |
Summarizes Common Stock Warrants Activity | The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price December 31, 2016 200,000 $ 0.50 Granted 1,000,000 1.75 Exercised — — Cancelled — — Forfeited — — Outstanding, March 31, 2017 1,200,000 $ 1.54 Exercisable, March 31, 2017 1,200,000 $ 1.54 |
Schedule of Warrants Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of March 31, 2017, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $0.50 200,000 0.6 $1.50 500,000 1.75 $2.00 500,000 1.75 1,200,000 |
Schedule of Assumptions Used in Valuing the Stock Options and Warrants | The table below represents the average assumptions used in valuing the stock options and warrants granted in fiscal 2017: Three-Months Ended March 31, 2017 Expected life in years 1.75 – 3.92 Stock price volatility 127% - 158% Risk free interest rate 1.26 % - 1.60% Expected dividends - Forfeiture rate - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting | Information related to these segments is as follows: REPORTABLE SEGMENTS THREE MONTHS ENDED MARCH 31, 2017 (Unaudited) Digital Media Restaurants Corporate Consolidated Revenues $ 52,000 $ 312,000 $ — $ 364,000 Cost of sales — 99,000 — 99,000 Research and development 113,000 — — 113,000 General and administrative 751,000 233,000 2,583,000 3,567,000 Depreciation and amortization 3,000 15,000 12,000 30,000 Operating loss $ (815,000 ) $ (35,000 ) $ (2,595,000 ) $ (3,445,000 ) Current assets $ 316,000 $ 378,000 $ 1,854,000 $ 2,548,000 Property and equipment, net 6,000 15,000 163,000 184,000 Intangible assets — — 17,000 17,000 Other non-current assets 38,000 17,000 5,000 60,000 Total assets $ 360,000 $ 410,000 $ 2,039,000 $ 2,809,000 REPORTABLE SEGMENTS THREE MONTHS ENDED MARCH 31, 2016 (Unaudited) Digital Media Restaurants Corporate Consolidated Revenues $ 35,000 $ 297,000 $ — $ 332,000 Cost of sales — 97,000 — 97,000 Research and development 75,000 — — 75,000 General and administrative 258,000 239,000 589,000 1,086,000 Depreciation and amortization 8,000 19,000 11,000 38,000 Operating income (loss) $ (306,000 ) $ (58,000 ) $ (600,000 ) $ (964,000 ) Current assets $ 137,000 $ 245,000 $ 6,463,000 $ 6,845,000 Property and equipment, net — 78,000 208,000 286,000 Intangible assets — — 20,000 20,000 Other non-current assets — 17,000 6,000 23,000 Total assets $ 137,000 $ 340,000 $ 6,697,000 $ 7,174,000 |
Trading Securities (Schedule Of
Trading Securities (Schedule Of Change In Investment In Securities) (Details) - Trading Securities [Member] | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value at Beginning of Year | $ 59,000 |
Purchases | |
Proceeds from Sale | |
Gain on Sale | |
Unrealized Loss | (15,000) |
Fair Value at March 31, 2017 | $ 44,000 |
Trading Securities (Schedule 20
Trading Securities (Schedule Of Gross Realized Gain/Loss) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Trading Securities Schedule Of Gross Realized Gainloss Details | ||
Sales proceeds | $ 189,000 | |
Gross realized (losses) | ||
Gross realized gains | 49,000 | |
Gain (loss) on sale of trading securities | $ 49,000 |
Trading Securities (Schedule 21
Trading Securities (Schedule Of Fair Value Of Assets) (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 44,000 | $ 59,000 |
Fair Value Measurements At Reporting Date Using Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 44,000 | 59,000 |
Money market funds | 36,000 | 36,000 |
Total | 80,000 | 95,000 |
Fair Value Measurements At Reporting Date Using Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | ||
Money market funds | ||
Total | ||
Fair Value Measurements At Reporting Date Using Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | ||
Money market funds | ||
Total | ||
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 44,000 | 59,000 |
Money market funds | 36,000 | 36,000 |
Total | $ 80,000 | $ 95,000 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 |
Property And Equipment Details | |||
Equipment | $ 150,000 | $ 151,000 | |
Furniture and fixtures | 116,000 | 116,000 | |
Leasehold improvements | 381,000 | 381,000 | |
Property and Equipment, Gross | 647,000 | 648,000 | |
Less: accumulated depreciation and amortization | 463,000 | 437,000 | |
Property and Equipment, Net | $ 184,000 | $ 211,000 | $ 286,000 |
Equity Transactions (Summarizes
Equity Transactions (Summarizes Common Stock With Vesting Terms Activity) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Number of Shares | |
Non-vested balance at the beginning | shares | 20,833 |
Granted | shares | |
Vested | shares | (20,833) |
Forfeited | shares | |
Non-vested balance at the end | shares | |
Weighted Average Grant Date Fair Value | |
Non-vested balance at the beginning | $ / shares | $ 0.50 |
Granted | $ / shares | |
Vested | $ / shares | 0.50 |
Forfeited | $ / shares | |
Non-vested balance at the end | $ / shares |
Equity Transactions (Summariz24
Equity Transactions (Summarizes Common Stock Options Activity) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Options | |
Outstanding, December 31, 2016 | shares | 12,900,000 |
Granted | shares | 570,000 |
Exercised | shares | |
Cancelled | shares | |
Forfeited | shares | (7,500,000) |
Outstanding, March 31, 2017 | shares | 5,970,000 |
Exercisable, March 31, 2017 | shares | 4,585,000 |
Weighted Average Exercise Price | |
Outstanding, December 31, 2016 | $ / shares | $ 2.83 |
Granted | $ / shares | 1 |
Exercised | $ / shares | |
Cancelled | $ / shares | |
Forfeited | $ / shares | 3.97 |
Outstanding, March 31, 2017 | $ / shares | 3.32 |
Exercisable, March 31, 2017 | $ / shares | $ 3.43 |
Equity Transactions (Schedule O
Equity Transactions (Schedule Of Weighted Average Excerise Price Range) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 5,970,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 3.32 |
Exercisable Options, Shares | shares | 4,585,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 3.43 |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 1,720,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 1 |
Exercisable Options, Shares | shares | 1,335,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 1 |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Life (Years) | 9 months |
Stock Options [Member] | Exercise Price Per Share $1.00 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Life (Years) | 3 years 10 months 10 days |
Stock Options [Member] | Exercise Price Per Share $2.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 1,250,000 |
Outstanding Options, Life (Years) | 1 year 9 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 2.50 |
Exercisable Options, Shares | shares | 750,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 2.50 |
Stock Options [Member] | Exercise Price Per Share $5.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 3,000,000 |
Outstanding Options, Life (Years) | 2 years 9 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 5 |
Exercisable Options, Shares | shares | 2,500,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 5 |
Equity Transactions (Summariz26
Equity Transactions (Summarizes Common Stock Warrants Activity) (Details) - Warrants [Member] - $ / shares | 1 Months Ended | 3 Months Ended |
Mar. 31, 2017 | Mar. 31, 2017 | |
Warrants | ||
December 31, 2016 | 200,000 | |
Granted | 1,000,000 | 1,000,000 |
Exercised | ||
Cancelled | ||
Forfeited | ||
Outstanding, March 31, 2017 | 1,200,000 | 1,200,000 |
Exercisable, March 31, 2017 | 1,200,000 | |
Weighted Average Exercise Price | ||
December 31, 2016 | $ 0.50 | |
Granted | 1.75 | |
Exercised | ||
Cancelled | ||
Forfeited | ||
Outstanding, March 31, 2017 | $ 1.54 | 1.54 |
Exercisable, March 31, 2017 | $ 1.54 |
Equity Transactions (Schedule27
Equity Transactions (Schedule Of Warrants Weighted Average Excerise Price Range) (Details) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Warrants, Shares | 5,970,000 |
Warrants [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Warrants, Shares | 1,200,000 |
Warrants [Member] | Exercise Price Per Share $0.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Warrants, Shares | 200,000 |
Outstanding Warrants, Life (Years) | 7 months |
Warrants exercise price, per share | $ / shares | $ 0.50 |
Warrants [Member] | Exercise Price Per Share $1.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Warrants, Shares | 500,000 |
Outstanding Warrants, Life (Years) | 1 year 9 months |
Warrants exercise price, per share | $ / shares | $ 1.50 |
Warrants [Member] | Exercise Price Per Share $2.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Warrants, Shares | 500,000 |
Outstanding Warrants, Life (Years) | 1 year 9 months |
Warrants exercise price, per share | $ / shares | $ 2 |
Equity Transactions (Schedule28
Equity Transactions (Schedule Of Assumptions Used In Valuing The Stock Options And Warrants) (Details) - Stock Options And Warrants [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Assumptions - Black Scholes Model: | |
Expected dividends | |
Forfeiture rate | |
Minimum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 1 year 9 months |
Stock price volatility | 127.00% |
Risk free interest rate | 1.26% |
Maximum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 3 years 11 months 1 day |
Stock price volatility | 158.00% |
Risk free interest rate | 1.60% |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues | $ 364,000 | $ 332,000 | |
Cost of sales | 99,000 | 97,000 | |
Research and Development | 113,000 | 75,000 | |
General and administrative | 3,567,000 | 1,086,000 | |
Depreciation and amortization | 30,000 | 38,000 | |
Operating loss | (3,445,000) | (964,000) | |
Current assets | 2,548,000 | 6,845,000 | $ 3,569,000 |
Property and equipment, net | 184,000 | 286,000 | 211,000 |
Intangible assets | 17,000 | 20,000 | 18,000 |
Other non-current assets | 60,000 | 23,000 | |
Total assets | 2,809,000 | 7,174,000 | $ 3,860,000 |
Operating Segments [Member] | Digital Media [Member] | |||
Revenues | 52,000 | 35,000 | |
Cost of sales | |||
Research and Development | 113,000 | 75,000 | |
General and administrative | 751,000 | 258,000 | |
Depreciation and amortization | 3,000 | 8,000 | |
Operating loss | (815,000) | (306,000) | |
Current assets | 316,000 | 137,000 | |
Property and equipment, net | 6,000 | ||
Intangible assets | |||
Other non-current assets | 38,000 | ||
Total assets | 360,000 | 137,000 | |
Operating Segments [Member] | Restaurants [Member] | |||
Revenues | 312,000 | 297,000 | |
Cost of sales | 99,000 | 97,000 | |
Research and Development | |||
General and administrative | 233,000 | 239,000 | |
Depreciation and amortization | 15,000 | 19,000 | |
Operating loss | (35,000) | (58,000) | |
Current assets | 378,000 | 245,000 | |
Property and equipment, net | 15,000 | 78,000 | |
Intangible assets | |||
Other non-current assets | 17,000 | 17,000 | |
Total assets | 410,000 | 340,000 | |
Operating Segments [Member] | Corporate [Member] | |||
Revenues | |||
Cost of sales | |||
Research and Development | |||
General and administrative | 2,583,000 | 589,000 | |
Depreciation and amortization | 12,000 | 11,000 | |
Operating loss | (2,595,000) | (600,000) | |
Current assets | 1,854,000 | 6,463,000 | |
Property and equipment, net | 163,000 | 208,000 | |
Intangible assets | 17,000 | 20,000 | |
Other non-current assets | 5,000 | 6,000 | |
Total assets | $ 2,039,000 | $ 6,697,000 |
Organization And Summary Of S30
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 3 Months Ended | 36 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
One Gaming Applications [Member] | |||
Capitalized licensing rights, additions | $ 50,000 | ||
Capitalized licensing rights | $ 38,000 | $ 40,000 | |
Estimated useful life of gaming applications | 5 years | ||
Other General And Administrative Expense [Member] | |||
Software licensing and publication cost | $ 147,000 | $ 15,000 | |
Class A Preferred Stock [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 26,909,028 | 26,909,028 | |
Class E Preferred Stock [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 150,775 | 696,767 | |
Stock Options [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 5,970,000 | ||
Warrants [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 1,200,000 | ||
Non-Vested Common [Member] | |||
Antidilutive shares excluded from computation of basic earnings per share | 241,667 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expenses | $ 30,000 | $ 38,000 |
Property And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and amortization expenses | $ 27,000 | $ 29,000 |
Equity Transactions (Narrative)
Equity Transactions (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Feb. 28, 2015 | Mar. 31, 2017 | Dec. 31, 2016 | |
Stock issued for employee for services, value | $ 847,000 | |||
Stock issued to consultants for services, value | $ 1,065,000 | |||
Stock options granted | ||||
Stock Options [Member] | ||||
Stock options terms | All outstanding options had an exercise price greater than $0.65 per share. | |||
Closing stock price | $ 0.65 | $ 0.65 | ||
Intrinsic value of stock price | $ 0 | $ 0 | ||
Warrants [Member] | ||||
Recognized compensation expense | $ 291,000 | |||
Stock options terms | The Company granted warrants to purchase a total of 1,000,000 shares of restricted common stock with an exercise price of $1.50 and $2.00 which will expire December 31, 2018. | |||
Closing stock price | $ 0.65 | $ 0.65 | ||
Intrinsic value of stock price | $ 30,000 | $ 30,000 | ||
No of warrants granted | 1,000,000 | 1,000,000 | ||
Consultants [Member] | Stock Options [Member] | ||||
Stock options granted | 570,000 | |||
No of shares vested | 185,000 | |||
Recognized compensation expense | $ 111,000 | |||
Unvested compensation costs not yet recognized | $ 231,000 | $ 231,000 | ||
Stock options terms | A total of 185,000 options vested upon grant while the remaining 385,000 options will vest through February 2018 at a rate of 35,000 shares per month. The options are exercisable at $1.00 per share. | |||
Stock options expire period | 4 years | |||
Consulting Agreement [ Member] | ||||
No of shares vested | 20,833 | 479,167 | ||
Recognized compensation expense | $ 46,000 | |||
Unvested compensation shares not yet recognized | 0 | 0 | ||
Unvested compensation costs not yet recognized | $ 0 | $ 0 | ||
Common Stock [Member] | ||||
Stock issued for employee for services, shares | 1,250,000 | |||
Stock issued for employee for services, value | $ 125 | |||
Stock issued to consultants for services, shares | 1,560,000 | |||
Stock issued to consultants for services, value | $ 156 | |||
Common Stock [Member] | Employees [Member] | ||||
Stock issued for employee for services, shares | 1,250,000 | |||
Stock issued for employee for services, value | $ 847,000 | |||
Restricted Common Stock [Member] | Consultants [Member] | ||||
Stock issued to consultants for services, shares | 1,560,000 | |||
Stock issued to consultants for services, value | $ 1,065,000 | |||
Restricted Common Stock [Member] | Consulting Agreement [ Member] | ||||
Stock options granted | 500,000 | |||
Stock or warrants vesting period | 24 months |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - Suit Relates To Issuance Of Convertible Debentures [Member] | Oct. 14, 2015USD ($) |
Loss Contingencies [Line Items] | |
Defendant name | SPYR, Inc., f/k/a Eat at Joes., Ltd |
Plaintiff name | Zakeni Limited |
Domicile of litigation | Case filed in the United States District Court for the District of Delaware case |
Sought damages value | $ 1,500,000 |
Sought damages description | The plaintiff is seeking payment or conversion of said convertible debentures together with accrued interest and unspecified damages. |
Trial commencement month and year | 2018-01 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
May 15, 2017 | Mar. 31, 2017 | |
Subsequent Event [Line Items] | ||
Stock issued for services, value | $ 1,065,000 | |
Common Stock [Member] | ||
Subsequent Event [Line Items] | ||
Stock issued for services, shares | 1,560,000 | |
Stock issued for services, value | $ 156 | |
Subsequent Event [Member] | Common Stock [Member] | Third Party Service Providers [Member] | ||
Subsequent Event [Line Items] | ||
Stock issued for services, shares | 60,000 | |
Stock issued for services, value | $ 38,000 |