Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 14, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | SPYR, Inc. | |
Entity Central Index Key | 829,325 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity's Reporting Status Current? | Yes | |
Is Entity Emerging Growth Company? | false | |
Elected Not To Use the Extended Transition Period | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding | 199,140,231 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Cash and cash equivalents | $ 42,000 | $ 86,000 |
Accounts receivable, net | 83,000 | |
Prepaid expenses | 26,000 | |
Trading securities, at market value | 12,000 | |
Total Current Assets | 163,000 | |
Property and equipment, net | 103,000 | 134,000 |
Capitalized gaming assets and licensing rights, net | 716,000 | |
Intangible assets, net | 10,000 | |
Other assets | 6,000 | |
TOTAL ASSETS | 998,000 | |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 901,000 | |
Related party short-term advances | 180,000 | |
Related party line of credit | 1,052,000 | |
Convertible note payable, net | 302,000 | |
Litigation settlement liability | ||
Current liabilities of discontinued operations | 22,000 | |
Total Current Liabilities | 2,457,000 | |
Non-current related party line of credit | ||
Total Liabilities | 2,457,000 | |
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 13 | |
Common Stock, $0.0001 par value, 750,000,000 shares authorized 198,545,231 and 181,128,950 shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 19,854 | |
Additional paid-in capital | 53,311,133 | |
Accumulated deficit | (54,790,000) | |
Total Stockholders' (Deficit) | (1,459,000) | (2,262,000) |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | 998,000 | |
Restated [Member] | ||
Current Assets: | ||
Cash and cash equivalents | 86,000 | |
Accounts receivable, net | 4,000 | |
Prepaid expenses | 35,000 | |
Trading securities, at market value | 48,000 | |
Total Current Assets | 173,000 | |
Property and equipment, net | 134,000 | |
Capitalized gaming assets and licensing rights, net | 743,000 | |
Intangible assets, net | 12,000 | |
Other assets | 16,000 | |
TOTAL ASSETS | 1,078,000 | |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 528,000 | |
Related party short-term advances | ||
Related party line of credit | ||
Convertible note payable, net | ||
Litigation settlement liability | 1,983,000 | |
Current liabilities of discontinued operations | 22,000 | |
Total Current Liabilities | 2,533,000 | |
Non-current related party line of credit | 807,000 | |
Total Liabilities | 3,340,000 | |
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 13 | |
Common Stock, $0.0001 par value, 750,000,000 shares authorized 198,545,231 and 181,128,950 shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 18,112 | |
Additional paid-in capital | 46,561,875 | |
Accumulated deficit | (48,842,000) | |
Total Stockholders' (Deficit) | (2,262,000) | |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | 1,078,000 | |
Class A Preferred Stock [Member] | ||
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 11 | |
Total Stockholders' (Deficit) | 11 | 11 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | 11 | |
Class A Preferred Stock [Member] | Restated [Member] | ||
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 11 | |
Total Stockholders' (Deficit) | 11 | |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | 11 | |
Class E Preferred Stock [Member] | ||
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 2 | |
Total Stockholders' (Deficit) | 2 | 2 |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | $ 2 | |
Class E Preferred Stock [Member] | Restated [Member] | ||
STOCKHOLDERS' (DEFICIT) | ||
Preferred stock, $0.0001 par value, 10,000,000 shares authorized 107,636 Class A shares issued and outstanding as of September 30, 2018 and December 31, 2017; 20,000 Class E shares issued and outstanding as of September 30, 2018 and December 31, 2017 | 2 | |
Total Stockholders' (Deficit) | 2 | |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | $ 2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par value per share | $ 0.0001 | |
Common stock, shares authorized | 750,000,000 | |
Common stock, shares issued | 198,545,231 | |
Common stock, shares outstanding | 198,545,231 | |
Restated [Member] | ||
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par value per share | $ 0.0001 | |
Common stock, shares authorized | 750,000,000 | |
Common stock, shares issued | 181,128,950 | |
Common stock, shares outstanding | 181,128,950 | |
Class A Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 107,636 | |
Preferred stock, shares outstanding | 107,636 | 107,636 |
Class A Preferred Stock [Member] | Restated [Member] | ||
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 107,636 | |
Preferred stock, shares outstanding | 107,636 | |
Class E Preferred Stock [Member] | ||
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 20,000 | |
Preferred stock, shares outstanding | 20,000 | 20,000 |
Class E Preferred Stock [Member] | Restated [Member] | ||
Preferred stock, par value per share | $ 0.0001 | |
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 20,000 | |
Preferred stock, shares outstanding | 20,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Game Revenues | $ 116,000 | $ 26,000 | $ 143,000 | $ 110,000 |
Related Party Service Revenues | 80,000 | 80,000 | ||
Gross Margin | 196,000 | 26,000 | 223,000 | 110,000 |
Expenses | ||||
Labor and related expenses | 191,000 | 387,000 | 1,312,000 | 2,065,000 |
Rent | 37,000 | 51,000 | 125,000 | 138,000 |
Depreciation and amortization | 28,000 | 44,000 | 85,000 | 89,000 |
Professional fees | 445,000 | 2,000,000 | 3,519,000 | 4,892,000 |
Research and development | 137,000 | 542,000 | 590,000 | 1,202,000 |
Other general and administrative | 154,000 | 118,000 | 381,000 | 426,000 |
Total Operating Expenses | 992,000 | 3,142,000 | 6,012,000 | 8,812,000 |
Operating Loss | (796,000) | (3,116,000) | (5,789,000) | (8,702,000) |
Other Income (Expense) | ||||
Interest and dividend income | 4,000 | |||
Interest Expense | 135,000 | 239,000 | ||
Gain on cancellation of shares | 5,000 | 118,000 | ||
Unrealized loss on trading securities | (7,000) | (10,000) | (36,000) | (37,000) |
Total Other Expense | (137,000) | (10,000) | (157,000) | (33,000) |
Loss from continuing operations | (933,000) | (3,126,000) | (5,946,000) | (8,735,000) |
Loss on discontinued operations | (28,000) | (2,000) | (132,000) | |
Net Loss | $ (933,000) | $ (3,154,000) | $ (5,948,000) | $ (8,867,000) |
Loss from continuing operations | ||||
Basic and Diluted earnings per share | $ (0.02) | $ (0.03) | $ (0.05) | |
Loss on discontinued operations | ||||
Basic and Diluted earnings per share | ||||
Net Loss | ||||
Basic and Diluted earnings per share | $ (0.02) | $ (0.03) | $ (0.05) | |
Weighted Average Common Shares | ||||
Basic and Diluted | 198,811,004 | 166,052,129 | 192,273,878 | 162,287,753 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Changes In Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2018 - 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 (Restated) at Dec. 31, 2017 | 107,636 | 20,000 | ||||
Balance common stock, shares (Restated) at Dec. 31, 2017 | 181,128,950 | |||||
Balance, value (Restated) at Dec. 31, 2017 | $ 11 | $ 2 | $ 18,112 | $ 46,561,875 | $ (48,842,000) | $ (2,262,000) |
Common stock issued to related party for cash, shares | 500,000 | |||||
Common stock issued to related party for cash, value | $ 50 | 49,950 | 50,000 | |||
Common stock issued for cash, shares | 6,200,000 | |||||
Common stock issued for cash, value | $ 620 | 854,380 | 855,000 | |||
Fair value of common stock issued for employee compensation, shares | 1,250,000 | |||||
Fair value of common stock issued for employee compensation, value | $ 125 | 624,875 | 625,000 | |||
Fair value of common stock, options and warrants issued for services, shares | 6,608,781 | |||||
Fair value of common stock, options and warrants issued for services, value | $ 661 | 2,349,339 | 2,350,000 | |||
Vesting of options and warrants granted for services | 743,000 | 743,000 | ||||
Common stock cancelled on termination of service agreement, shares | (642,500) | |||||
Common stock cancelled on termination of service agreement, value | $ (64) | (117,936) | (118,000) | |||
Fair value of common stock and warrants issued for litigation settlement, shares | 3,500,000 | |||||
Fair value of common stock and warrants issued for litigation settlement, value | $ 350 | 1,982,650 | 1,983,000 | |||
Debt discount on convertible notes payable | 263,000 | 263,000 | ||||
Net loss | (5,948,000) | $ (5,948,000) | ||||
Balance preferred stock , shares at Sep. 30, 2018 | 107,636 | 20,000 | ||||
Balance common stock, shares at Sep. 30, 2018 | 198,545,231 | 198,545,231 | ||||
Balance, value at Sep. 30, 2018 | $ 11 | $ 2 | $ 19,854 | $ 53,311,133 | $ (54,790,000) | $ (1,459,000) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows From Operating Activities: | ||
Net loss for the period | $ (5,948,000) | $ (8,867,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Loss on discontinued operations | (2,000) | (132,000) |
Depreciation and amortization | 85,000 | 90,000 |
Common stock issued for employee compensation | 625,000 | 999,000 |
Common stock, options and warrants issued for services | 2,350,000 | 3,518,000 |
Vesting of options and warrants granted for services | 743,000 | 647,000 |
Gain on cancellation of common stock | 118,000 | |
Vesting of shares of common stock issued for services | 46,000 | |
Debt discount on convertible notes payable | 147,000 | |
Unrealized loss on trading securities | (36,000) | (37,000) |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accounts receivables | 79,000 | (19,000) |
Decrease in other receivables | (100,000) | |
Decrease (increase) in prepaid expenses | (9,000) | 31,000 |
Decrease (increase) in other assets | (10,000) | 11,000 |
Increase in accounts payable and accrued liabilities | 373,000 | 68,000 |
Increase in accrued interest on short-term advances - related party | 2,000 | |
Increase in accrued interest on line of credit - related party | 45,000 | |
Increase in accrued interest on convertible notes payable | (18,000) | |
Net Cash Used in Operating Activities from Continuing Operations | (1,700,000) | (3,253,000) |
Net Cash Used in Operating Activities from Discontinued Operations | (2,000) | (66,000) |
Net Cash Used in Operating Activities | (1,702,000) | (3,319,000) |
Cash Flows From Investing Activities: | ||
Purchase of licensing rights | 25,000 | 100,000 |
Net Cash Used in Investing Activities | (25,000) | (100,000) |
Cash Flows From Financing Activities: | ||
Proceeds from sale of common stock | 905,000 | 300,000 |
Proceeds from short-term advances - related party | 178,000 | |
Proceeds from line of credit - related party | 200,000 | 200,000 |
Proceeds from convertible notes payable | 400,000 | |
Net Cash Provided by Financing Activities | 1,683,000 | 500,000 |
Net Decrease in Cash | (44,000) | (2,919,000) |
Cash and cash equivalents at beginning of period | 86,000 | 3,204,000 |
Cash and cash equivalents at end of period | 42,000 | 285,000 |
Supplemental Disclosure of Interest and Income Taxes Paid: | ||
Interest paid during the period | ||
Income taxes paid during the period | ||
Supplemental Disclosure of Non-cash Investing and Financing Activities: | ||
Reclassification of other assets to capitalized licensing rights | $ 100,000 |
Organization And Summary Of Sig
Organization And Summary Of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
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/A for the fiscal year ended December 31, 2017 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2017 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. Through our wholly owned subsidiary, SPYR APPS, LLC we operate our mobile games and applications business. The focus of the SPYR APPS subsidiary 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. Concurrent with expiration of the lease the restaurant closed. Pursuant to current accounting guidelines, the assets and liabilities of EAJ as well as the results of its operations were presented in these financial statements as discontinued operations. 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, E.A.J.: PHL, Airport Inc., a Pennsylvania corporation (discontinued operations, see Note 7), and Branded Foods Concepts, Inc., a Nevada corporation. Intercompany accounts and transactions have been eliminated. Going Concern 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, however, the issues described below raise substantial doubt about the Company’s ability to do so. As shown in the accompanying financial statements, for the nine months ended September 30, 2018, the Company recorded a net loss from continuing operations of $5,946,000 and utilized cash in continuing operations of $1,700,000. As of September 30, 2018, our cash balance was $42,000 and we had trading securities of $12,000. These issues raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to expand its mobile games and application development and publishing activities, such as Pocket Starships and Steven Universe Historically, we have financed our operations primarily through private sales of our trading securities, through sales of our common stock, and through related party loans. 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. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements and expansion of its operations. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations through the next twelve months. However, management cannot make any assurances that such financing will be secured. 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 trading securities, fixed assets, intangible assets, capitalized licensing rights, 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 nine months ended September 30, 2018 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 412,099, Options – 13,740,000, Warrants – 8,800,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2018. The basic and fully diluted shares for the three months ended September 30, 2018 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 412.099, Options – 13,740,000, Warrants – 8,800,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended September 30, 2018. The basic and fully diluted shares for the nine months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2017. The basic and fully diluted shares for the three months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended September 30, 2017. Capitalized Gaming Assets and Licensing Rights Capitalized gaming assets and licensing rights represent costs to acquire 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. On October 23, 2017, the Company completed the acquisition of all assets that refer, relate or pertain to the real—time cross-platform MMO game commonly known and referred to as “Pocket Starships,” including but not limited to all intellectual property, know how, “urls,” websites, game engines, game store accounts, prior versions, company names and trade names, business plans, financial reports, financial data, employee data, customer lists, forecasts, strategies, and all other business information; manufacturing or other technical or scientific know-how, specifications, technical drawings, drawings, artwork, music, diagrams, schematics, technology, processes, and any other trade secrets, discoveries, ideas, concepts, know-how, techniques, materials, formulae, compositions, information, data, results, plans, surveys and/or reports of a technical nature; and software programs (including all forms of code), software documentation, software development kits, game design documents, and formulae related to the current, future and proposed products and services, including any additions, enhancements or modifications to the foregoing or derivatives thereof after the date hereof. As consideration for the acquisition, the Company issued eight million shares of the Company’s restricted common stock valued at $3,200,000, options to purchase up to eight million shares of the Company’s restricted common stock valued at $2,452,000 and assumed liabilities of $210,000 for a total purchase price of $5,862,000. The options are fully vested, exercisable at a price per share of $0.50 and will expire starting August 31, 2020. The acquisition of “Pocket Starships” was reported as part of capitalized gaming assets and licensing rights valued at $481,000 based upon discounted cash flows. The difference between purchase price and the capitalized value was recorded as loss on write down on assets during 4 th Further, the options previously issued pursuant to a purchase option agreement dated June 25, 2016, which provided for the option to purchase up to three million, seven hundred and fifty thousand shares of Registrant’s common stock, are fully vested and remain in effect in accordance with the terms of the purchase option agreement. During 2017, the Company capitalized $175,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from various STAR TREK During the August 2018, the Company capitalized $25,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from Steven Universe Steven Universe Steven Universe In addition, we also acquired the game titled Battlewack: Idle Lords for $100,000, pursuant to settlement with the game owner and developer. Battlewack: Idle Lords requires additional development before it can be released. During the three and nine months ended September 30, 2018, the Company recorded amortization expense of $19,000 and $53,000, respectively. As of September 30, 2018 and December 31, 2017, the unamortized capitalized gaming assets and licensing rights amounted to $716,000 and $743,000 respectively. Software Development Costs Costs incurred for software development are expensed as incurred. During the nine months ended September 30, 2018 and 2017, the Company incurred $590,000 and $1,202,000 in software development costs paid to independent gaming software developers. During the three months ended September 30, 2018 and 2017, the Company incurred $137,000 and $542,000 in software development costs paid to independent gaming software developers. Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers We adopted this new revenue recognition standard along with is related amendments on January 1, 2018 and have updated our accounting policy for revenue recognition. As expected, at our current level of revenue, the adoption of this new standard did not impact our financial position or results of operations operating cash flows. We determine revenue recognition by: (1) identifying the contract, or contracts, with our customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to performance obligations in the contract; and (5) recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. Game Revenues Through our wholly owned subsidiary SPYR APPS, LLC, d/b/a SPYR GAMES, we develop, publish and co-publish mobile games, and then generate revenue through those games by way of advertising and in-app purchases. The Company’s dedicated mobile gaming applications can be downloaded through the app stores maintained by Apple and Google. The Company’s cross platform gaming application, which can be played on personal computers, Facebook and mobile devices, can be downloaded from the internet and Facebook as well as through the app stores maintained by Apple, Google and Amazon. We operate our games as live services that allow players to play for free. Within these games players can purchase virtual items to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. For revenue earned through app stores, players utilize the app store’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on these app store platforms, the app store remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. We recognize revenue net of the amounts retained by the app stores for platform and payment processing fees. Service Revenues We recently offered professional legal and accounting services to a related Limited Liability Company (see note 4). Our professional services arrangements are either fixed-fee billing or time-and-material billing arrangements. In fixed-fee billing arrangements, we agree to a predetermined fee for a predetermined set of professional services. We set the fee based upon our estimate of the time and costs necessary to complete the engagements. Under time-and-materials billing arrangements, the fee is based on the number of hours worked at the agreed upon billing rates. We recognized service revenue upon completion of the service and billing of the client. Recent Accounting Standards In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases In July 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. (“ASU 2017-11”). ASU 2017-11 allows companies to exclude a down round feature when determining whether a financial instrument is considered indexed to the entity’s own stock. As a result, financial instruments with down round features are no longer classified as liabilities and embedded conversion options with down round features are no longer bifurcated. For equity-classified freestanding financial instruments, such as warrants, an entity will treat the value of the effect of the down round, when triggered, as a dividend and a reduction of income available to common shareholders in computing basic earnings per share. For convertible instruments with embedded conversion options that have down round features, an entity will recognize the intrinsic value of the feature only when the feature becomes beneficial. The guidance in ASU 2017-11 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We early adopted ASU 2017-11 effective January 1, 2018 without a material impact on our consolidated financial statements. 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 | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Trading Securities | NOTE 2 - TRADING SECURITIES Investments in securities are summarized as follows: Fair Value at Gain on Unrealized Fair Value at Year Beginning of Year Sale Loss September 30, 2018 2018 $ 48,000 $ — $ (36,000 ) $ 12,000 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 September 30, 2018 (Level 1) (Level 2) (Level 3) Trading securities $ 12,000 $ 12,000 $ — $ — Money market funds 1,000 1,000 — — Total $ 13,000 $ 13,000 $ — $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 48,000 $ 48,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 84,000 $ 84,000 $ — $ — Generally, for all trading securities and available-for-sale securities, fair value is determined by reference to quoted market prices (level 1). |
Property And Equipment
Property And Equipment | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | NOTE 3 – PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, 2018 December 31, 2017 Equipment $ 28,000 $ 28,000 Furniture & fixtures 114,000 114,000 Leasehold improvements 107,000 107,000 249,000 249,000 Less: accumulated depreciation and amortization (146,000 ) (115,000 ) Property and Equipment, Net $ 103,000 $ 134,000 Depreciation expense for the nine months ended September 30, 2018 and 2017 was $31,000 and $35,000, respectively. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Related Party Transactions | NOTE 4 - RELATED PARTY TRANSACTIONS On September 5, 2017, the Company obtained a revolving line of credit from Berkshire Capital Management Co., Inc. Berkshire is controlled by Joseph Fiore, majority shareholder and former chairman of the board of directors of the Company. The line of credit allows the Company to borrow up to $1,000,000 with interest at 6% per annum. The loan is secured by a first lien on all the assets of the Company and its wholly owned subsidiary SPYR APPS, LLC. Repayment on the loan is due February 28, 2019. As of September 30, 2018, the Company has borrowed $1,000,000 and accrued interest of $52,000. During the nine months ended September 30, 2018, the Company received an additional $180,000 in the form of short-term advances from Berkshire Capital Management Co., Inc. The $180,000 short-term advances are due upon demand. During the nine months ended September 30, 2018, the Company issued 500,000 shares of restricted common stock to the father of an executive officer of the Company for cash of $50,000. During the nine months ended September 30, 2018, the Company, received $80,000 in revenue for professional services rendered to a related Limited Liability Company whose mangers are also officers of SPYR, Inc. and whose majority owner is Berkshire Capital Management Co., Inc. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Convertible Notes | NOTE 5 – CONVERTIBLE NOTES On April 20, 2018, (modified May 22, 2018) the Company issued a $165,000 (originally $158,000) convertible note with original issue discount (OID) of $15,000 and bearing interest at 8% per annum. The note matures on April 20, 2019 and is convertible on or after October 17, 2018 into the Company’s restricted common stock at $0.20 per share at the holder’s request. The OID is recorded as a discount to the debt agreement. The Company has determined the note to contain a beneficial conversion feature valued as $104,000 based on the intrinsic per share value of the conversion feature. This beneficial conversion feature is recorded as a discount to the debt agreement. The noteholder was also granted detachable 3-year warrants to purchase 200,000 shares of the company’s restricted common stock at an exercise price of $0.375 per share, 200,000 shares of the company’s restricted common stock at an exercise price of $0.50 per share, and 100,000 shares of the company’s restricted common stock at an exercise price of $0.625 per share. The warrants were valued at $126,000 using the Black-Scholes pricing model and were recorded as a discount to the debt agreement. The noteholder was also issued 116,000 shares of the company’s restricted common stock valued at $34,000 based upon the closing price of the Company stock on the date of the modified agreement and recorded as a discount to the debt agreement. During the nine months ended September 30, 2018 the Company has accrued interest for this note in the amount of $6,000. At September 30, 2018, the principal balance together with total accrued interest of $6,000 is recorded on the Company’s consolidated balance sheets net of discounts of $80,000. On May 22, 2018, the Company issued a $275,000 convertible note with original issue discount (OID) of $25,000 and bearing a one-time interest charge at 8%. The note matures on January 22, 2019 and is convertible into the Company’s restricted common stock at $0.25 per share at the holder’s request. The OID is recorded as a discount to the debt agreement. The Company has determined the note to contain a beneficial conversion feature valued as $40,000 based on the intrinsic per share value of the conversion feature. This beneficial conversion feature is recorded as a discount to the debt agreement. The noteholder was also granted detachable 5-year warrants to purchase 500,000 shares of the company’s restricted common stock at an exercise price of $2.00 per share. The warrants were valued at $45,000 using the Black-Scholes pricing model and were recorded as a discount to the debt agreement. The noteholder was also issued 200,000 shares of the company’s restricted common stock valued at $58,000 based upon the closing price of the Company stock on the date of the agreement and recorded as a discount to the debt agreement. During the nine months ended September 30, 2018 the Company has accrued interest for this note in the amount of $12,000. At September 30, 2018, the principal balance together with total accrued interest of $12,000 is recorded on the Company’s consolidated balance sheets net of discounts of $222,000. The following table summarized the Company's convertible notes payable as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Beginning Balance $ — $ — Proceeds from the issuance of convertible notes, net of issuance discounts 137,000 — Repayments — — Conversion of notes payable into common stock — — Amortization of discounts 147,000 — Accrued Interest 18,000 — Ending Balance $ 302,000 $ — Convertible notes, short term $ 440,000 $ — Debt discounts $ 156,000 $ — |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 6 – COMMITMENTS AND CONTINGENCIES Legal Proceedings 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. On July 12, 2018, the court approved a Joint Motion for Order Approving Settlement Agreement. Pursuant to the settlement, the Company will issue 3,500,000 common shares valued at $1,050,000, warrants to purchase 1,000,000 common shares at $0.25 per share valued at $276,000, warrants to purchase 1,500,000 common shares at $0.50 per share valued at $398,000, and warrants to purchase 1,000,000 common shares at $0.75 per share valued at $259,000. The total value of the settlement, $1,983,000 was computed using the Black-Scholes Option Pricing Model and was recorded as litigation settlement liability on the accompanying consolidated balance sheet as of December 31, 2017 and recognized on the settlement date as a reduction to the litigation settlement liability. There is no further litigation settlement liability on the accompanying consolidated balance sheets as of September 30, 2018. On June 18, 2018 the Company was named as a defendant in a case filed in the United States District Court for the Southern District of New York: Securities and Exchange Commission vs. Joseph A. Fiore, Berkshire Capital Management Co., Inc., and Eat at Joe’s, Ltd. n/k/a SPYR, Inc. Joseph A. Fiore was the Chairman of our Board of Directors and is a significant shareholder. Mr. Fiore resigned from his positions as Chairman of the Board and as a Director of the Company effective August 1, 2018. The suit alleges that Mr. Fiore, during 2013 and 2014, while he was the Company’s Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors, engaged in improper conduct on behalf of the defendants named in the case related to the Company’s sales of securities in Plandai Biotechnology, Inc. The Commission alleges that Mr. Fiore and the Company unlawfully benefited through the sales of those securities. The Commission also alleges that from 2013 to 2014, the Company’s primary business was investing and that it failed to register as an investment company, resulting in an alleged violation of Section 7(a) of the Investment Company Act of 1940. The suit seeks to disgorge Joseph A. Fiore, Berkshire Capital Management Co., Inc., and the Company of alleged profits on the sale of the securities and civil fines related to the Company’s failure to register as an investment company with the Commission. The Company vehemently denies any wrongdoing. The allegations demonstrate a fundamental misunderstanding of existing precedent and a mischaracterization of the facts and transactions at issue, which were not violative of any securities laws, rules or regulations. On November 2, 2018, counsel for Defendants filed a joint motion to dismiss the SEC’s suit in its entirety, primarily on the basis that the SEC’s complaint fails to allege facts sufficient to state viable causes of action. All three defendants assert that the SEC has failed to satisfy its heightened pleadings requirement for stating viable claims for market manipulation. All three Defendants also sought dismissal based upon the expiration of the applicable statute of limitations and based upon the SEC’s alleged failure to file suit within the statutory deadline for doing so as codified under the Dodd-Frank Act of 2010. This failure, Defendants argue, deprives the SEC of jurisdiction to pursue its claims against all Defendants. In addition to the foregoing, the Company further moved for dismissal of the alleged Section 7(a) Investment Company Act violation based upon the SEC’s failure to establish that the Company fit the statutory definition of an Investment Company, as that term is defined under the Investment Company Act; i.e., the Company met one of the statutory exceptions to what is and is not an Investment Company for purposes of having to register as such under the Act. The Company does not expect a decision on its motion to dismiss for at least two to four months. The Company is being represented by Alex Spiro, Esq., a partner with the firm of Quinn Emmanuel, Urquhart & Sullivan, LLP and Marc S. Gottlieb, Esq., a partner with the firm of Ortoli Rosenstadt LLP. Employment Agreements Pursuant to employment agreements entered in December 2014 and October 2015, the Company agreed to compensate three officers with a base salary in the aggregate of $450,000 per year through 2020. In addition, as part of the employment agreement, the Company also agreed to grant these officers an aggregate of 1.55 million shares of common stock at the beginning of each employment year. Game Development Agreements The Company is party to various game development agreements. Payments are contingent upon the developer(s) meeting specified milestones and game performance. Pursuant to these agreements, the Company has agreed to pay up to $265,000 during the period from October 2018 through March 2019. Common Stock To Be Issued The Company is party to various third-party service agreements to be paid through the issuance of the company’s restricted common stock. Contingent upon the third parties providing the agreed upon services, the Company will issue up to 725,000 restricted common shares and 200,000 common stock warrants at various intervals during the period from October 2018 through October 2019. The shares will be recorded at fair value on the date earned under the respective agreements. |
Equity Transactions
Equity Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Equity Transactions | NOTE 7 – EQUITY TRANSACTIONS Common Stock: Nine Months Ended September 30, 2018: During the nine months ended September 30, 2018, the Company issued 500,000 shares of restricted common stock to the father of an executive officer of the Company for cash of $50,000. During the nine months ended September 30, 2018, the Company issued an aggregate of 6,200,000 shares of restricted common stock to third parties for cash of $855,000. During the nine months ended September 30, 2018, the Company issued an aggregate of 1,250,000 shares of restricted common stock to employees with a total fair value of $625,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $625,000 upon issuance. The shares issued were valued at the date earned under the respective agreement based upon closing market price of the Company’s common stock. During the nine months ended September 30, 2018, the Company issued an aggregate of 6,608,781 shares of restricted common stock to consultants with a total fair value of $2,350,000. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $2,350,000 upon issuance. The shares issued were valued at the date earned under the respective agreements based upon closing market price of the Company’s common stock. During the nine months ended September 30, 2018, the Company cancelled an aggregate of 625,000 shares of restricted common stock on termination of a third-party service agreement with a total fair value on the date of termination of $207,000. The Company recorded a gain on cancellation of $113,000 for the portion of shares (375,000) issued during 2017 and reversed expenses of $94,000 for the portion of shares (250,000) issued during 2018. The shares issued were valued at the termination date of the agreement based upon closing market price of the Company’s common stock. During the nine months ended September 30, 2018, the Company cancelled an aggregate of 17,500 shares of restricted common stock due to the violation of certain gating provisions of a third-party service agreement. The total fair value on the date of termination was $5,000 based upon closing market price of the Company’s common stock. The Company recorded a gain on cancellation of $5,000. On July 12, 2018, the court approved a Joint Motion for Order Approving Settlement Agreement. Pursuant to the settlement, the Company issued 3,500,000 common shares valued at $1,050,000. The shares issued were valued at the July 12, 2018 court approval date based upon closing market price of the Company’s common stock. Total fair value of the shares was computed using the Black-Scholes Option Pricing Model and was fully recognized on the issuance date as a reduction to the litigation settlement liability on the accompanying consolidated balance sheets as of September 30, 2018. Options: The following table summarizes common stock options activity: Weighted Average Exercise Options Price December 31, 2017 13,320,000 $ 1.74 Granted 420,000 1.00 Exercised — — Forfeited — — Outstanding, September 30, 2018 13,740,000 $ 1.72 Exercisable, September 30, 2018 13,065,000 $ 1.60 During the year ended December 31, 2017, the Company granted stock options to a consultant to purchase a total of 420,000 shares of common stock. During the nine months ended September 30, 2018, the Company renewed the contract for an additional year and granted the consultant an additional 420,000 stock options with a total fair value of $115,000. A total of 350,000 vested during 2017, 315,000 options vested during the nine months ended September 30, 2018 while the remaining 175,000 options will vest through February 2019 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 nine months ended September 30, 2018, the Company recognized $109,000 in compensation expense based upon the vesting of outstanding options. As of September 30, 2018, the unamortized compensation expense for unvested options was $48,000 which will be recognized over the vesting period. The weighted average exercise prices, remaining lives for options granted, and exercisable as of September 30, 2018 were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $0.50 8,000,000 1.92 $0.50 8,000,000 $0.50 $1.00 1,490,000 1.07 – 3.36 $1.00 1,315,000 $1.00 $2.50 1,250,000 .25 $2.50 1,250,000 $2.50 $5.00 3,000,000 1.25 $5.00 2,500,000 $5.00 13,740,000 $1.72 13,065,000 $1.60 At September 30, 2018, the Company’s closing stock price was $0.24 per share. As all outstanding options had an exercise price greater than $0.24 per share, there was no intrinsic value of the options outstanding at September 30, 2018. The following table summarizes options granted with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2017 70,000 $ 1.00 Granted 420,000 1.00 Vested (315,000) 1.00 Forfeited — — Non-vested, September 30, 2018 175,000 $ 1.00 Warrants: The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price Outstanding, December 31, 2017 1,700,000 $ 1.06 Granted 7,100,000 0.55 Exercised — — Forfeited — — Outstanding, September 30, 2018 8,800,000 $ 0.65 Exercisable, September 30, 2018 8,800,000 $ 0.65 In January 2018, pursuant to a services agreement, the Company granted warrants to purchase a total of 1,200,000 shares of restricted common stock with an exercise price of $0.40 and will expire 36 months after date of grant. The warrants are fully vested and exercisable upon grant. Total fair value of the warrants at grant date amounted to $383,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant. In March 2018, pursuant to a stock purchase agreement, the Company granted warrants to purchase a total of 700,000 shares of restricted common stock with an exercise price of $0.50 and will expire March 18, 2023. The warrants are fully vested and exercisable upon grant. Total fair value of the options at grant date amounted to $234,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant. In April 2018, in combination with a 12-month convertible promissory note, the Company granted warrants to purchase a total of 500,000 shares of restricted common stock with exercise prices ranging from $0.375 to $0.625 and will expire April 20, 2021. The warrants are fully vested and exercisable upon grant. The proceeds of the note were allocated between the note and the warrants based on the relative fair values which resulted in proceeds of $61,000 allocated to the warrants and recorded as paid in capital and debt discount. The debt discount will be amortized over the life of the note as interest expense. During the nine months ended September 30, 2018, the Company recognized $27,000 of debt discount interest. As of September 30, 2018, the unamortized debt discount was $34,000 which will be recognized over the life of the note. In May 2018, in combination with an 8-month convertible promissory note, the Company granted warrants to purchase a total of 200,000 shares of restricted common stock with an exercise prices of $2.00 and will expire May 22, 2023. The warrants are fully vested and exercisable upon grant. The proceeds of the note were allocated between the note and the warrants based on the relative fair values which resulted in proceeds of $32,000 allocated to the warrants and recorded as paid in capital and debt discount. The debt discount will be amortized over the life of the note as interest expense. During the nine months ended September 30, 2018, the Company recognized $17,000 of debt discount interest. As of September 30, 2018, the unamortized debt discount was $15,000 which will be recognized over the life of the note. In May 2018, pursuant to a stock purchase agreement, the Company granted warrants to purchase a total of 1,000,000 shares of restricted common stock with exercise prices ranging from $0.50 to $1.00 and will expire May 29, 2021. The warrants are fully vested and exercisable upon grant. Total fair value of the options at grant date amounted to $184,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant. On July 12, 2018, pursuant to a court approved Joint Motion for Order Approving Settlement Agreement, the Company issued warrants to purchase a total of 3,500,000 shares of common stock with exercise prices ranging from $0.25 to $0.75 and will expire July 11, 2023. The warrants are fully vested and exercisable upon grant. Total fair value of the options at grant date amounted to $933,000 computed using the Black-Scholes Option Pricing Model and was fully recognized on the date of grant as a reduction to the litigation settlement liability on the accompanying consolidated balance sheets as of September 30, 2018. The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of September 30, 2018, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $ 0.01 600,000 2.25 $ 0.25 1,000,000 4.78 $ 0.375 200,000 2.56 $ 0.40 1,200,000 2.28 $ 0.50 3,000,000 0.08 – 4.78 $ 0.625 100,000 2.56 $ 0.75 1,250,000 2.66 – 4.78 $ 1.00 250,000 2.66 $ 1.50 500,000 0.25 $ 2.00 700,000 0.25 – 4.64 8,800,000 At September 30, 2018, the Company’s closing stock price was $0.24 per share. The Company had 600,000 warrants outstanding with exercise prices less than $0.24 with an intrinsic value of $138,000 at September 30, 2018. The table below represents the average assumptions used in valuing the stock options and warrants granted in fiscal 2018: Nine Months Ended September 30, 2018 Expected life in years 3.00 – 5.00 Stock price volatility 138% - 153% Risk free interest rate 2.12 % - 2.9% 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. Shares Reserved: At September 30, 2018, the Company has reserved 30,000,000 shares of common stock in connection with 2 convertible notes with detachable warrants and 3,500,000 shares of common stock in connection with the court approves settlement agreement for a total of 33,500,000 reserved shares of common stock. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 8 – DISCONTINUED OPERATIONS Restaurant 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. Concurrent with expiration of the lease the restaurant closed. Pursuant to current accounting guidelines, the restaurant segment is reported as discontinued operations. The following table summarizes the assets and liabilities of our discontinued restaurant segment's discontinued operations as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Assets: Total Assets $ — $ — Liabilities: Accounts payable and accrued liabilities $ 22,000 $ 22,000 Total Liabilities $ 22,000 $ 22,000 The following table summarizes the results of operations of our discontinued restaurant for the three and nine months ended September 30, 2018 and 2017 and is included in the consolidated statements of operations as discontinued operations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ — $ — $ — $ 421,000 Cost of sales — — — 134,000 Gross Margin — — — 287,000 Expenses Labor and related expenses — — — 178,000 Rent — — 1,000 82,000 Depreciation and amortization — — — 20,000 Professional fees — 23,000 — 26,000 Other general and administrative — 5,000 1,000 94,000 Total Operating Expenses — 28,000 2,000 400,000 Operating Income (Loss) — (28,000 ) (2,000 ) (113,000 ) Other Income (Expense) Loss on disposal of assets — — — (19,000 ) Income (Loss) on discontinued operations $ — $ (28,000 ) $ (2,000 ) $ (132,000 ) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Subsequent Events | NOTE 9 – SUBSEQUENT EVENTS Subsequent to September 30, 2018, the Company issued 295,000 shares of common stock pursuant to various third-party service agreements. On October 16, 2018, the Company issued 300,000 restricted common shares as part of the base salary pursuant to an employment contract with one officer of the Company. |
Organization And Summary Of S_2
Organization And Summary Of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Organization And Summary Of Significant Accounting Policies Policies Abstract | |
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/A for the fiscal year ended December 31, 2017 filed with the SEC. The condensed consolidated balance sheet as of December 31, 2017 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. Through our wholly owned subsidiary, SPYR APPS, LLC we operate our mobile games and applications business. The focus of the SPYR APPS subsidiary 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. Concurrent with expiration of the lease the restaurant closed. Pursuant to current accounting guidelines, the assets and liabilities of EAJ as well as the results of its operations were presented in these financial statements as discontinued operations. |
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, E.A.J.: PHL, Airport Inc., a Pennsylvania corporation (discontinued operations, see Note 7), and Branded Foods Concepts, Inc., a Nevada corporation. Intercompany accounts and transactions have been eliminated. |
Going Concern | Going Concern 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, however, the issues described below raise substantial doubt about the Company’s ability to do so. As shown in the accompanying financial statements, for the nine months ended September 30, 2018, the Company recorded a net loss from continuing operations of $5,946,000 and utilized cash in continuing operations of $1,700,000. As of September 30, 2018, our cash balance was $42,000 and we had trading securities of $12,000. These issues raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to expand its mobile games and application development and publishing activities, such as Pocket Starships and Steven Universe Historically, we have financed our operations primarily through private sales of our trading securities, through sales of our common stock, and through related party loans. 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. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements and expansion of its operations. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations through the next twelve months. However, management cannot make any assurances that such financing will be secured. |
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 trading securities, fixed assets, intangible assets, capitalized licensing rights, 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 nine months ended September 30, 2018 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 412,099, Options – 13,740,000, Warrants – 8,800,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2018. The basic and fully diluted shares for the three months ended September 30, 2018 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 412.099, Options – 13,740,000, Warrants – 8,800,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended September 30, 2018. The basic and fully diluted shares for the nine months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the nine months ended September 30, 2017. The basic and fully diluted shares for the three months ended September 30, 2017 are the same because the inclusion of the potential shares (Class A – 26,909,028, Class E – 318,654, Options – 6,270,000, Warrants – 1,200,000) would have had an anti-dilutive effect due to the Company generating a loss for the three months ended September 30, 2017. |
Capitalized Gaming Assets and Licensing Rights | Capitalized Gaming Assets and Licensing Rights Capitalized gaming assets and licensing rights represent costs to acquire 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. On October 23, 2017, the Company completed the acquisition of all assets that refer, relate or pertain to the real—time cross-platform MMO game commonly known and referred to as “Pocket Starships,” including but not limited to all intellectual property, know how, “urls,” websites, game engines, game store accounts, prior versions, company names and trade names, business plans, fnancial reports, financial data, employee data, customer lists, forecasts, strategies, and all other business information; manufacturing or other technical or scientific know-how, specifications, technical drawings, drawings, artwork, music, diagrams, schematics, technology, processes, and any other trade secrets, discoveries, ideas, concepts, know-how, techniques, materials, formulae, compositions, information, data, results, plans, surveys and/or reports of a technical nature; and software programs (including all forms of code), software documentation, software development kits, game design documents, and formulae related to the current, future and proposed products and services, including any additions, enhancements or modifications to the foregoing or derivatives thereof after the date hereof. As consideration for the acquisition, the Company issued eight million shares of the Company’s restricted common stock valued at $3,200,000, options to purchase up to eight million shares of the Company’s restricted common stock valued at $2,452,000 and assumed liabilities of $210,000 for a total purchase price of $5,862,000. The options are fully vested, exercisable at a price per share of $0.50 and will expire starting August 31, 2020. The acquisition of “Pocket Starships” was reported as part of capitalized gaming assets and licensing rights valued at $481,000 based upon discounted cash flows. The difference between purchase price and the capitalized value was recorded as loss on write down on assets during 4 th Further, the options previously issued pursuant to a purchase option agreement dated June 25, 2016, which provided for the option to purchase up to three million, seven hundred and fifty thousand shares of Registrant’s common stock, are fully vested and remain in effect in accordance with the terms of the purchase option agreement. During 2017, the Company capitalized $175,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from various STAR TREK During the August 2018, the Company capitalized $25,000 pursuant to a licensing agreement for the non-exclusive, limited right to incorporate certain intellectual property (IP) from Steven Universe Steven Universe Steven Universe In addition, we also acquired the game titled Battlewack: Idle Lords for $100,000, pursuant to settlement with the game owner and developer. Battlewack: Idle Lords requires additional development before it can be released. During the three and nine months ended September 30, 2018, the Company recorded amortization expense of $19,000 and $53,000, respectively. As of September 30, 2018 and December 31, 2017, the unamortized capitalized gaming assets and licensing rights amounted to $716,000 and $743,000 respectively. |
Software Development Costs | Software Development Costs Costs incurred for software development are expensed as incurred. During the nine months ended September 30, 2018 and 2017, the Company incurred $590,000 and $1,202,000 in software development costs paid to independent gaming software developers. During the three months ended September 30, 2018 and 2017, the Company incurred $137,000 and $542,000 in software development costs paid to independent gaming software developers. |
Revenue Recognition | Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers We adopted this new revenue recognition standard along with is related amendments on January 1, 2018 and have updated our accounting policy for revenue recognition. As expected, at our current level of revenue, the adoption of this new standard did not impact our financial position or results of operations operating cash flows. We determine revenue recognition by: (1) identifying the contract, or contracts, with our customer; (2) identifying the performance obligations in the contract; (3) determining the transaction price; (4) allocating the transaction price to performance obligations in the contract; and (5) recognizing revenue when, or as, we satisfy performance obligations by transferring the promised goods or services. Game Revenues Through our wholly owned subsidiary SPYR APPS, LLC, d/b/a SPYR GAMES, we develop, publish and co-publish mobile games, and then generate revenue through those games by way of advertising and in-app purchases. The Company’s dedicated mobile gaming applications can be downloaded through the app stores maintained by Apple and Google. The Company’s cross platform gaming application, which can be played on personal computers, Facebook and mobile devices, can be downloaded from the internet and Facebook as well as through the app stores maintained by Apple, Google and Amazon. We operate our games as live services that allow players to play for free. Within these games players can purchase virtual items to enhance their game-playing experience. Our identified performance obligation is to display the virtual items within the game. Payment is required at time of purchase and the purchase price is a fixed amount. Players can purchase our virtual items through various widely accepted payment methods offered in the games, including Apple iTunes accounts, Google Play accounts, Facebook local currency payments, PayPal and credit cards. Payments from players for virtual items are non-refundable and relate to non-cancellable contracts that specify our obligations. For revenue earned through app stores, players utilize the app store’s local currency-based payments program to purchase virtual items in our games. For all payment transactions on these app store platforms, the app store remits to us 70% of the price we request to be charged to the player for each transaction, which represents the transaction price. We recognize revenue net of the amounts retained by the app stores for platform and payment processing fees. Service Revenues We recently offered professional legal and accounting services to a related Limited Liability Company (see note 4). Our professional services arrangements are either fixed-fee billing or time-and-material billing arrangements. In fixed-fee billing arrangements, we agree to a predetermined fee for a predetermined set of professional services. We set the fee based upon our estimate of the time and costs necessary to complete the engagements. Under time-and-materials billing arrangements, the fee is based on the number of hours worked at the agreed upon billing rates. We recognized service revenue upon completion of the service and billing of the client. |
Recent Accounting Standards | Recent Accounting Standards In February 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases In July 2017, the FASB issued Accounting Standards Update (ASU) No. 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. (“ASU 2017-11”). ASU 2017-11 allows companies to exclude a down round feature when determining whether a financial instrument is considered indexed to the entity’s own stock. As a result, financial instruments with down round features are no longer classified as liabilities and embedded conversion options with down round features are no longer bifurcated. For equity-classified freestanding financial instruments, such as warrants, an entity will treat the value of the effect of the down round, when triggered, as a dividend and a reduction of income available to common shareholders in computing basic earnings per share. For convertible instruments with embedded conversion options that have down round features, an entity will recognize the intrinsic value of the feature only when the feature becomes beneficial. The guidance in ASU 2017-11 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We early adopted ASU 2017-11 effective January 1, 2018 without a material impact on our consolidated financial statements. 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) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Investment In Marketable Securities Tables Abstract | |
Schedule of Change in Investment in Securities | Investments in securities are summarized as follows: Fair Value at Gain on Unrealized Fair Value at Year Beginning of Year Sale Loss September 30, 2018 2018 $ 48,000 $ — $ (36,000 ) $ 12,000 |
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 September 30, 2018 (Level 1) (Level 2) (Level 3) Trading securities $ 12,000 $ 12,000 $ — $ — Money market funds 1,000 1,000 — — Total $ 13,000 $ 13,000 $ — $ — Fair Value Measurements at Reporting Date Using Quoted Prices Significant Significant in Active Other Unobservable Fair Value at Markets Observable Inputs Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Trading securities $ 48,000 $ 48,000 $ — $ — Money market funds 36,000 36,000 — — Total $ 84,000 $ 84,000 $ — $ — |
Property And Equipment (Tables)
Property And Equipment (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: September 30, 2018 December 31, 2017 Equipment $ 28,000 $ 28,000 Furniture & fixtures 114,000 114,000 Leasehold improvements 107,000 107,000 249,000 249,000 Less: accumulated depreciation and amortization (146,000 ) (115,000 ) Property and Equipment, Net $ 103,000 $ 134,000 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Convertible Notes Narrative Details Abstract | |
Summarized Convertible Notes Payable | The following table summarized the Company's convertible notes payable as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Beginning Balance $ — $ — Proceeds from the issuance of convertible notes, net of issuance discounts 137,000 — Repayments — — Conversion of notes payable into common stock — — Amortization of discounts 147,000 — Accrued Interest 18,000 — Ending Balance $ 302,000 $ — Convertible notes, short term $ 440,000 $ — Debt discounts $ 156,000 $ — |
Equity Transactions (Tables)
Equity Transactions (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Common Stock Transactions Tables Abstract | |
Summarizes Common Stock Options Activity | Options: The following table summarizes common stock options activity: Weighted Average Exercise Options Price December 31, 2017 13,320,000 $ 1.74 Granted 420,000 1.00 Exercised — — Forfeited — — Outstanding, September 30, 2018 13,740,000 $ 1.72 Exercisable, September 30, 2018 13,065,000 $ 1.60 |
Schedule of Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for options granted, and exercisable as of September 30, 2018 were as follows: Outstanding Options Exercisable Options Options Weighted Weighted Exercise Price Life Average Exercise Average Exercise Per Share Shares (Years) Price Shares Price $0.50 8,000,000 1.92 $0.50 8,000,000 $0.50 $1.00 1,490,000 1.07 – 3.36 $1.00 1,315,000 $1.00 $2.50 1,250,000 .25 $2.50 1,250,000 $2.50 $5.00 3,000,000 1.25 $5.00 2,500,000 $5.00 13,740,000 $1.72 13,065,000 $1.60 |
Summarizes Options Granted With Vesting Terms Activity | The following table summarizes options granted with vesting terms activity: Weighted Average Number of Grant Date Shares Fair Value Non-vested, December 31, 2017 70,000 $ 1.00 Granted 420,000 1.00 Vested (315,000) 1.00 Forfeited — — Non-vested, September 30, 2018 175,000 $ 1.00 |
Summarizes Common Stock Warrants Activity | The following table summarizes common stock warrants activity: Weighted Average Exercise Warrants Price Outstanding, December 31, 2017 1,700,000 $ 1.06 Granted 7,100,000 0.55 Exercised — — Forfeited — — Outstanding, September 30, 2018 8,800,000 $ 0.65 Exercisable, September 30, 2018 8,800,000 $ 0.65 |
Schedule of Warrants Weighted Average Excerise Price Range | The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of September 30, 2018, were as follows: Outstanding and Exercisable Warrants Warrants Exercise Price Life Per Share Shares (Years) $ 0.01 600,000 2.25 $ 0.25 1,000,000 4.78 $ 0.375 200,000 2.56 $ 0.40 1,200,000 2.28 $ 0.50 3,000,000 0.08 – 4.78 $ 0.625 100,000 2.56 $ 0.75 1,250,000 2.66 – 4.78 $ 1.00 250,000 2.66 $ 1.50 500,000 0.25 $ 2.00 700,000 0.25 – 4.64 8,800,000 |
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 2018: Nine Months Ended September 30, 2018 Expected life in years 3.00 – 5.00 Stock price volatility 138% - 153% Risk free interest rate 2.12 % - 2.9% Expected dividends — Forfeiture rate — |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure Discontinued Operations Tables Abstract | |
Summarizes the Assets and Liabilities and Operations of Segment Discontinued Operations | The following table summarizes the assets and liabilities of our discontinued restaurant segment's discontinued operations as of September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Assets: Total Assets $ — $ — Liabilities: Accounts payable and accrued liabilities $ 22,000 $ 22,000 Total Liabilities $ 22,000 $ 22,000 The following table summarizes the results of operations of our discontinued restaurant for the three and nine months ended September 30, 2018 and 2017 and is included in the consolidated statements of operations as discontinued operations: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2018 2017 2018 2017 Revenues $ — $ — $ — $ 421,000 Cost of sales — — — 134,000 Gross Margin — — — 287,000 Expenses Labor and related expenses — — — 178,000 Rent — — 1,000 82,000 Depreciation and amortization — — — 20,000 Professional fees — 23,000 — 26,000 Other general and administrative — 5,000 1,000 94,000 Total Operating Expenses — 28,000 2,000 400,000 Operating Income (Loss) — (28,000 ) (2,000 ) (113,000 ) Other Income (Expense) Loss on disposal of assets — — — (19,000 ) Income (Loss) on discontinued operations $ — $ (28,000 ) $ (2,000 ) $ (132,000 ) |
Trading Securities (Schedule Of
Trading Securities (Schedule Of Change In Investment In Securities) (Details) - Trading Securities [Member] | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value at Beginning of Year | $ 48,000 |
Gain on Sale | |
Unrealized Loss | (36,000) |
Fair Value at September 30, 2018 | $ 12,000 |
Trading Securities (Schedule _2
Trading Securities (Schedule Of Fair Value Of Assets Measured On Recurring Basis) (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | $ 12,000 | |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading securities | 12,000 | $ 48,000 |
Money market funds | 1,000 | 36,000 |
Total | 13,000 | 84,000 |
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 | 12,000 | 48,000 |
Money market funds | 1,000 | 36,000 |
Total | 13,000 | 84,000 |
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 |
Property And Equipment (Details
Property And Equipment (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Property And Equipment | ||
Equipment | $ 28,000 | $ 28,000 |
Furniture and fixtures | 114,000 | 114,000 |
Leasehold improvements | 107,000 | 107,000 |
Property and Equipment, Gross | 249,000 | 249,000 |
Less: accumulated depreciation and amortization | 146,000 | 115,000 |
Property and Equipment, Net | $ 103,000 | $ 134,000 |
Convertible Notes (Details)
Convertible Notes (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Short-term Debt [Line Items] | |||
Proceeds from the issuance of convertible notes, net of issuance discounts | $ 400,000 | ||
Amortization of discounts | 147,000 | ||
Accrued Interest | (18,000) | ||
Ending Balance | 302,000 | ||
Convertible Notes Payable [Member] | |||
Short-term Debt [Line Items] | |||
Beginning Balance | |||
Proceeds from the issuance of convertible notes, net of issuance discounts | 137,000 | ||
Repayments | |||
Conversion of notes payable into common stock | |||
Amortization of discounts | 147,000 | ||
Accrued Interest | 18,000 | ||
Ending Balance | 302,000 | ||
Convertible notes, short term | 440,000 | ||
Debt discounts | $ 156,000 |
Equity Transactions (Summarizes
Equity Transactions (Summarizes Common Stock Options Activity) (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Options | |
Outstanding, balance at beginning | shares | 13,320,000 |
Granted | shares | 420,000 |
Exercised | shares | |
Forfeited | shares | |
Outstanding, balance at end | shares | 13,740,000 |
Exercisable, at the end | shares | 13,065,000 |
Weighted Average Exercise Price | |
Outstanding, balance at beginning | $ / shares | $ 1.74 |
Granted | $ / shares | 1 |
Exercised | $ / shares | |
Forfeited | $ / shares | |
Outstanding, balance at end | $ / shares | 1.72 |
Exercisable, balance at end | $ / shares | $ 1.60 |
Equity Transactions (Schedule O
Equity Transactions (Schedule Of Weighted Average Excerise Price Range) (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 13,740,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 1.72 |
Exercisable Options, Shares | shares | 13,065,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 1.60 |
Stock Options [Member] | Exercise Price Per Share $0.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding Options, Shares | shares | 8,000,000 |
Outstanding Options, Life (Years) | 1 year 11 months 1 day |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 0.50 |
Exercisable Options, Shares | shares | 8,000,000 |
Exercisable Options, Weighted Average Exercise Price | $ / shares | $ 0.50 |
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 | 1,490,000 |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 1 |
Exercisable Options, Shares | shares | 1,315,000 |
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) | 1 year 25 days |
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 4 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) | 3 months |
Outstanding Options, Weighted Average Exercise Price | $ / shares | $ 2.50 |
Exercisable Options, Shares | shares | 1,250,000 |
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) | 1 year 3 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 (Summariz_2
Equity Transactions (Summarizes Options Granted With Vesting Terms Activity) (Details) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Number of Shares | |
Balance at the beginning | shares | 70,000 |
Granted | shares | 420,000 |
Vested | shares | (315,000) |
Forfeited | shares | |
Balance at the end | shares | 175,000 |
Weighted Average Grant Date Fair Value | |
Balance at the beginning | $ / shares | $ 1 |
Granted | $ / shares | 1 |
Vested | $ / shares | 1 |
Forfeited | $ / shares | |
Balance at the end | $ / shares | $ 1 |
Equity Transactions (Summariz_3
Equity Transactions (Summarizes Common Stock Warrants Activity) (Details) - Warrants [Member] | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Warrants | |
Balance at the beginning | shares | 1,700,000 |
Granted | shares | 7,100,000 |
Exercised | shares | |
Forfeited | shares | |
Balance at the end | shares | 8,800,000 |
Exercisable, at the end | shares | 8,800,000 |
Weighted Average Exercise Price | |
Balance at the beginning | $ / shares | $ 1.06 |
Granted | $ / shares | 0.55 |
Exercised | $ / shares | |
Forfeited | $ / shares | |
Balance at the end | $ / shares | 0.65 |
Exercisable, at the end | $ / shares | $ 0.65 |
Equity Transactions (Schedule_2
Equity Transactions (Schedule Of Warrants Weighted Average Excerise Price Range) (Details) | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 13,740,000 |
Warrants [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 8,800,000 |
Warrants [Member] | Exercise Price Per Share $0.01 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 600,000 |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 3 months |
Warrants Exercise Price, Per Share | $ / shares | $ 0.01 |
Warrants [Member] | Exercise Price Per Share $0.25 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 1,000,000 |
Outstanding and Exercisable Warrants, Life (Years) | 4 years 9 months 11 days |
Warrants Exercise Price, Per Share | $ / shares | $ 0.25 |
Warrants [Member] | Exercise Price Per Share $0.375 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 200,000 |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 6 months 22 days |
Warrants Exercise Price, Per Share | $ / shares | $ 0.375 |
Warrants [Member] | Exercise Price Per Share $0.40 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 1,200,000 |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 3 months 11 days |
Warrants Exercise Price, Per Share | $ / shares | $ 0.40 |
Warrants [Member] | Exercise Price Per Share $0.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 3,000,000 |
Warrants Exercise Price, Per Share | $ / shares | $ 0.50 |
Warrants [Member] | Exercise Price Per Share $0.50 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 29 days |
Warrants [Member] | Exercise Price Per Share $0.50 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 4 years 9 months 11 days |
Warrants [Member] | Exercise Price Per Share $0.625 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 100,000 |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 6 months 22 days |
Warrants Exercise Price, Per Share | $ / shares | $ 0.625 |
Warrants [Member] | Exercise Price Per Share $0.75 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 1,250,000 |
Warrants Exercise Price, Per Share | $ / shares | $ 0.75 |
Warrants [Member] | Exercise Price Per Share $0.75 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 7 months 28 days |
Warrants [Member] | Exercise Price Per Share $0.75 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 4 years 9 months 11 days |
Warrants [Member] | Exercise Price Per Share $1.00 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 250,000 |
Outstanding and Exercisable Warrants, Life (Years) | 2 years 7 months 28 days |
Warrants Exercise Price, Per Share | $ / shares | $ 1 |
Warrants [Member] | Exercise Price Per Share $1.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Shares | 500,000 |
Outstanding and Exercisable Warrants, Life (Years) | 3 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 and Exercisable Warrants, Shares | 700,000 |
Warrants Exercise Price, Per Share | $ / shares | $ 2 |
Warrants [Member] | Exercise Price Per Share $2.00 [Member] | Minimum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 3 months |
Warrants [Member] | Exercise Price Per Share $2.00 [Member] | Maximum [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Outstanding and Exercisable Warrants, Life (Years) | 4 years 7 months 20 days |
Equity Transactions (Schedule_3
Equity Transactions (Schedule Of Assumptions Used In Valuing The Stock Options And Warrants) (Details) - Stock Options And Warrants [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Assumptions - Black Scholes Model: | |
Expected dividends | |
Forfeiture rate | |
Minimum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 3 years |
Stock price volatility | 138.00% |
Risk free interest rate | 2.12% |
Maximum [Member] | |
Assumptions - Black Scholes Model: | |
Expected life in years | 5 years |
Stock price volatility | 153.00% |
Risk free interest rate | 2.90% |
Discontinued Operations (Summar
Discontinued Operations (Summarizes the Assets and Liabilities and Operations of Segment Discontinued) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Assets: | |||||
Total Assets | $ 998,000 | $ 998,000 | |||
Liabilities: | |||||
Accounts payable and accrued liabilities | 901,000 | 901,000 | |||
Total Liabilities | 2,457,000 | 2,457,000 | |||
Revenues | 116,000 | $ 26,000 | 143,000 | $ 110,000 | |
Gross Margin | 196,000 | 26,000 | 223,000 | 110,000 | |
Expenses | |||||
Labor and related expenses | 191,000 | 387,000 | 1,312,000 | 2,065,000 | |
Rent | 37,000 | 51,000 | 125,000 | 138,000 | |
Depreciation and amortization | 28,000 | 44,000 | 85,000 | 89,000 | |
Professional fees | 445,000 | 2,000,000 | 3,519,000 | 4,892,000 | |
Other general and administrative | 154,000 | 118,000 | 381,000 | 426,000 | |
Total Operating Expenses | 992,000 | 3,142,000 | 6,012,000 | 8,812,000 | |
Operating Income (Loss) | (796,000) | (3,116,000) | (5,789,000) | (8,702,000) | |
Other Income (Expense) | |||||
Income (Loss) on discontinued operations | (933,000) | (3,126,000) | (5,946,000) | (8,735,000) | |
Discontinued Operations From Former Restaurant Segment [Member] | |||||
Assets: | |||||
Total Assets | |||||
Liabilities: | |||||
Accounts payable and accrued liabilities | 22,000 | 22,000 | 22,000 | ||
Total Liabilities | 22,000 | 22,000 | $ 22,000 | ||
Revenues | 421,000 | ||||
Cost of sales | 134,000 | ||||
Gross Margin | 287,000 | ||||
Expenses | |||||
Labor and related expenses | 178,000 | ||||
Rent | 1,000 | 82,000 | |||
Depreciation and amortization | 20,000 | ||||
Professional fees | 23,000 | 26,000 | |||
Other general and administrative | 5,000 | 1,000 | 94,000 | ||
Total Operating Expenses | 28,000 | 2,000 | 400,000 | ||
Operating Income (Loss) | (28,000) | (2,000) | (113,000) | ||
Other Income (Expense) | |||||
Loss on disposal of assets | (19,000) | ||||
Income (Loss) on discontinued operations | $ (28,000) | $ (2,000) | $ (132,000) |
Organization And Summary Of S_3
Organization And Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | Oct. 23, 2017 | Aug. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Non-Exclusive Limited Right To Incorporate Intellectual Property [Member] | |||||||
Assets aquired in aqusition | $ 100,000 | ||||||
Estimated useful life of gaming assets and licensing rights | 4 years 5 months 1 day | 1 year 7 months 6 days | |||||
Capitalized licensing rights, additions | $ 25,000 | $ 175,000 | |||||
Capitalized Gaming Asset And Licensing Rights [Member] | |||||||
Capitalized licensing rights, amortization | $ 19,000 | $ 53,000 | |||||
Unamortized capitalized licensing rights | $ 716,000 | $ 716,000 | $ 743,000 | ||||
Stock Options [Member] | |||||||
Stock option terms | <font style="font: 10pt Times New Roman, Times, Serif">As all outstanding options had an exercise price greater than $0.24 per share, there was no intrinsic value of the options outstanding at September 30, 2018.</font></p>" id="sjs-F10"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As all outstanding options had an exercise price greater than $0.24 per share, there was no intrinsic value of the options outstanding at September 30, 2018.</font></p> | ||||||
Acquisition Of Assets - Pocket Starships [Member] | |||||||
Liabilities assumed in aquisition | $ 210,000 | ||||||
Total purchase price of acquisition | 5,862,000 | ||||||
Assets aquired in aqusition | $ 481,000 | ||||||
Amortization method of gaming assets and licensing rights | A straight-line basis</font></p>" id="sjs-B15"><p><font style="font-size: 10pt">A straight-line basis</font></p> | ||||||
Acquisition Of Assets - Pocket Starships [Member] | Minimum [Member] | |||||||
Estimated useful life of gaming assets and licensing rights | 7 years | ||||||
Acquisition Of Assets - Pocket Starships [Member] | Maximum [Member] | |||||||
Estimated useful life of gaming assets and licensing rights | 10 years | ||||||
Acquisition Of Assets - Pocket Starships [Member] | Restricted Common Stock [Member] | |||||||
Shares issued for acquisition, shares | 8,000,000 | ||||||
Shares issued for acquisition, value | $ 3,200,000 | ||||||
Acquisition Of Assets - Pocket Starships [Member] | Stock Options [Member] | |||||||
Purchase of options authorized for acquisition, shares | 8,000,000 | ||||||
Purchase of options authorized for acquisition, value | $ 2,452,000 | ||||||
Stock option terms | The options are fully vested, exercisable at a price per share of $0.50</font></p>" id="sjs-B26"><p><font style="font-size: 10pt">The options are fully vested, exercisable at a price per share of $0.50</font></p> | ||||||
Stock option expire date | Aug. 31, 2020 | ||||||
Class A Preferred Stock [Member] | |||||||
Antidilutive shares excluded from computation of basic earnings per share | 26,909,028 | 26,909,028 | 26,909,028 | 26,909,028 | |||
Class E Preferred Stock [Member] | |||||||
Antidilutive shares excluded from computation of basic earnings per share | 412,099 | 318,654 | 412,099 | 318,654 | |||
Stock Options [Member] | |||||||
Antidilutive shares excluded from computation of basic earnings per share | 13,740,000 | 6,270,000 | 13,740,000 | 6,270,000 | |||
Warrants [Member] | |||||||
Antidilutive shares excluded from computation of basic earnings per share | 8,800,000 | 1,200,000 | 8,800,000 | 1,200,000 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Property And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expenses | $ 31,000 | $ 35,000 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) | Sep. 05, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 |
Short-term Debt [Line Items] | ||||||
Proceeds from line of credit | $ 200,000 | $ 200,000 | ||||
Proceeds from short-term advances - related party | 178,000 | |||||
Stock issued for cash, value | 855,000 | |||||
Related Party Service Revenues | $ 80,000 | 80,000 | ||||
Berkshire Capital Management Co., Inc. - A Company Controlled By Joseph Fiore, Majority Shareholder And Former Chairman Of The Board Of Directors [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Proceeds from short-term advances - related party | $ 180,000 | |||||
Debt instrument description | The $180,000 short-term advances are due upon demand.</font></p>" id="sjs-E10"><p><font style="font: 10pt Times New Roman, Times, Serif">The $180,000 short-term advances are due upon demand.</font></p> | |||||
Berkshire Capital Management Co., Inc. - A Company Controlled By Joseph Fiore, Majority Shareholder And Former Chairman Of The Board Of Directors [Member] | Revolving Line Of Credit Dated September 05, 2017 [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Line of credit borrowing capacity | $ 1,000,000 | |||||
Line of credit interest rate | 6.00% | |||||
Line of credit collateral security | <font style="font-size: 10pt">The loan is secured by a first lien on all the assets of the Company and its wholly owned subsidiary SPYR APPS, LLC.</font></p>" id="sjs-B15"><p style="margin: 0"><font style="font-size: 10pt">The loan is secured by a first lien on all the assets of the Company and its wholly owned subsidiary SPYR APPS, LLC.</font></p> | |||||
Line of credit due date | Feb. 28, 2019 | |||||
Proceeds from line of credit | $ 1,000,000 | |||||
Accrued interest | $ 52,000 | $ 52,000 | $ 52,000 | |||
Father Of An Executive Officer [Member] | Restricted Common Stock [Member] | ||||||
Short-term Debt [Line Items] | ||||||
Stock issued for cash, shares | 500,000 | |||||
Stock issued for cash, value | $ 50,000 | |||||
A Related Limited Liablity Company - A Company Related To Officers Of The Company And Majority Owner Is Berkshire Capital Management Co, Inc | ||||||
Short-term Debt [Line Items] | ||||||
Related Party Service Revenues | $ 80,000 |
Convertible Notes (Narrative) (
Convertible Notes (Narrative) (Details) - USD ($) | May 22, 2018 | Apr. 20, 2018 | May 31, 2018 | Apr. 30, 2018 | Sep. 30, 2018 |
Short-term Debt [Line Items] | |||||
Convertible notes payable | $ 302,000 | ||||
Stock issued during the period in connection with debt, value | $ 50,000 | ||||
Warrants [Member] | |||||
Short-term Debt [Line Items] | |||||
Award terms | <font style="font: 10pt Times New Roman, Times, Serif">The Company had 600,000 warrants outstanding with exercise prices less than $0.24 with an intrinsic value of $138,000 at September 30, 2018.</font></p>" id="sjs-F7"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company had 600,000 warrants outstanding with exercise prices less than $0.24 with an intrinsic value of $138,000 at September 30, 2018.</font></p> | ||||
No of stock or warrants granted | 7,100,000 | ||||
Warrants [Member] | Exercise Price Per Share $2.00 [Member] | |||||
Short-term Debt [Line Items] | |||||
Exercise price of warrants | $ 2 | ||||
Convertible Note Dated April 20, 2018 [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt instrument face amount | $ 158,000 | ||||
Unamortized debt discount | $ 15,000 | $ 80,000 | |||
Debt instrument interest rate | 8.00% | ||||
Debt maturity date | Apr. 20, 2019 | ||||
Debt instrument conversion terms | Convertible on or after October 17, 2018 into the Company’s restricted common stock at $0.20 per share at the holder’s request.</font></p>" id="sjs-C18"><p><font style="font: 10pt Times New Roman, Times, Serif">Convertible on or after October 17, 2018 into the Company’s restricted common stock at $0.20 per share at the holder’s request.</font></p> | ||||
Debt instrument beneficial conversion feature | $ 104,000 | ||||
Accrued interest | 6,000 | ||||
Convertible notes payable | 6,000 | ||||
Convertible Note Dated April 20, 2018 [Member] | Warrants [Member] | |||||
Short-term Debt [Line Items] | |||||
Unamortized debt discount | 34,000 | ||||
Award terms | <p>The noteholder was also granted detachable 3-year warrants to purchase 200,000 shares of the company’s restricted common stock at an exercise price of $0.375 per share, 200,000 shares of the company’s restricted common stock at an exercise price of $0.50 per share, and 100,000 shares of the company’s restricted common stock at an exercise price of $0.625 per share.</p> | ||||
No of stock or warrants granted | 500,000 | ||||
Fair value of warrants | $ 126,000 | ||||
Convertible Note Dated April 20, 2018 [Member] | Warrants [Member] | Exercise Price Per Share $0.375 [Member] | |||||
Short-term Debt [Line Items] | |||||
No of stock or warrants granted | 200,000 | ||||
Exercise price of warrants | $ 0.375 | ||||
Convertible Note Dated April 20, 2018 [Member] | Warrants [Member] | Exercise Price Per Share $0.50 [Member] | |||||
Short-term Debt [Line Items] | |||||
No of stock or warrants granted | 200,000 | ||||
Exercise price of warrants | $ 0.50 | ||||
Convertible Note Dated April 20, 2018 [Member] | Warrants [Member] | Exercise Price Per Share $0.625 [Member] | |||||
Short-term Debt [Line Items] | |||||
No of stock or warrants granted | 100,000 | ||||
Exercise price of warrants | $ 0.625 | ||||
Convertible Note Dated April 20, 2018 [Member] | Restricted Common Stock [Member] | |||||
Short-term Debt [Line Items] | |||||
Stock issued during the period in connection with debt, shares | 116,000 | ||||
Stock issued during the period in connection with debt, value | $ 34,000 | ||||
Convertible Note Dated May 22, 2018 [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt instrument face amount | $ 165,000 | ||||
Convertible Note Dated May 22, 2018 [Member] | |||||
Short-term Debt [Line Items] | |||||
Debt instrument face amount | 275,000 | ||||
Unamortized debt discount | $ 25,000 | 222,000 | |||
Debt instrument interest rate | 8.00% | ||||
Debt maturity date | Jan. 22, 2019 | ||||
Debt instrument conversion terms | Convertible into the Company’s restricted common stock at $0.25 per share at the holder’s request.</font></p>" id="sjs-B53"><p><font style="font: 10pt Times New Roman, Times, Serif">Convertible into the Company’s restricted common stock at $0.25 per share at the holder’s request.</font></p> | ||||
Debt instrument beneficial conversion feature | $ 40,000 | ||||
Accrued interest | 12,000 | ||||
Convertible notes payable | 12,000 | ||||
Convertible Note Dated May 22, 2018 [Member] | Warrants [Member] | |||||
Short-term Debt [Line Items] | |||||
Unamortized debt discount | $ 15,000 | ||||
Award terms | <p>The noteholder was also granted detachable 5-year warrants to purchase 500,000 shares of the company’s restricted common stock at an exercise price of $2.00 per share.</p> | ||||
No of stock or warrants granted | 200,000 | ||||
Exercise price of warrants | $ 2 | ||||
Fair value of warrants | $ 45,000 | ||||
Convertible Note Dated May 22, 2018 [Member] | Warrants [Member] | Exercise Price Per Share $2.00 [Member] | |||||
Short-term Debt [Line Items] | |||||
No of stock or warrants granted | 500,000 | ||||
Exercise price of warrants | $ 2 | ||||
Convertible Note Dated May 22, 2018 [Member] | Restricted Common Stock [Member] | |||||
Short-term Debt [Line Items] | |||||
Stock issued during the period in connection with debt, shares | 200,000 | ||||
Stock issued during the period in connection with debt, value | $ 58,000 |
Commitments And Contingencies (
Commitments And Contingencies (Narrative) (Details) - USD ($) | Jul. 12, 2018 | Oct. 14, 2015 | Sep. 30, 2018 | Oct. 31, 2015 |
Other Commitments [Line Items] | ||||
Litigation settlement liability | ||||
Commitment For Employment Agreement [Member] | Three Officers [Member] | ||||
Other Commitments [Line Items] | ||||
Agreement description | Pursuant to employment agreements entered in December 2014 and October 2015, the Company agreed to compensate three officers with a base salary in the aggregate of $450,000 per year through 2020. In addition, as part of the employment agreement, the Company also agreed to grant these officers an aggregate of 1.55 million shares of common stock at the beginning of each employment year.</p>" id="sjs-E6"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Pursuant to employment agreements entered in December 2014 and October 2015, the Company agreed to compensate three officers with a base salary in the aggregate of $450,000 per year through 2020. In addition, as part of the employment agreement, the Company also agreed to grant these officers an aggregate of 1.55 million shares of common stock at the beginning of each employment year.</p> | |||
Commitment For Game Development Agreements [Member] | ||||
Other Commitments [Line Items] | ||||
Agreement description | <font style="font: 10pt Times New Roman, Times, Serif">The Company is party to various game development agreements. Payments are contingent upon the developer(s) meeting specified milestones and game performance. Pursuant to these agreements, the Company has agreed to pay up to $265,000 during the period from October 2018 through March 2019</font></p>" id="sjs-D9"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company is party to various game development agreements. Payments are contingent upon the developer(s) meeting specified milestones and game performance. Pursuant to these agreements, the Company has agreed to pay up to $265,000 during the period from October 2018 through March 2019</font></p> | |||
Commitment For Third-Party Service Agreements [Member] | ||||
Other Commitments [Line Items] | ||||
Agreement description | <font style="font: 10pt Times New Roman, Times, Serif">Contingent upon the third parties providing the agreed upon services, the Company will issue up to 725,000 restricted common shares and 200,000 common stock warrants at various intervals during the period from October 2018 through October 2019. The shares will be recorded at fair value on the date earned under the respective agreements.</font></p>" id="sjs-D12"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Contingent upon the third parties providing the agreed upon services, the Company will issue up to 725,000 restricted common shares and 200,000 common stock warrants at various intervals during the period from October 2018 through October 2019. The shares will be recorded at fair value on the date earned under the respective agreements.</font></p> | |||
Suit Relates To Issuance Of Convertible Debentures [Member] | ||||
Other Commitments [Line Items] | ||||
Defendant name | SPYR, Inc., f/k/a Eat at Joes., Ltd</p>" id="sjs-C15"><p style="font: 10pt Times New Roman, Times, Serif">SPYR, Inc., f/k/a Eat at Joe’s., Ltd</p> | |||
Plaintiff name | Zakeni Limited</p>" id="sjs-C16"><p style="font: 10pt Times New Roman, Times, Serif">Zakeni Limited</p> | |||
Domicile of litigation | Case filed in the United States District Court for the District of Delaware case</p>" id="sjs-C17"><p style="font: 10pt Times New Roman, Times, Serif">Case filed in the United States District Court for the District of Delaware case</p> | |||
Sought damages value | $ 1,500,000 | |||
Settlement agreement date | July 12, 2018 | |||
Settlement agreement terms | <font style="font: 10pt Times New Roman, Times, Serif">Pursuant to the settlement, the Company will issue 3,500,000 common shares valued at $1,050,000, warrants to purchase 1,000,000 common shares at $0.25 per share valued at $276,000, warrants to purchase 1,500,000 common shares at $0.50 per share valued at $398,000, and warrants to purchase 1,000,000 common shares at $0.75 per share valued at $259,000. The total value of the settlement, $1,983,000 was computed using the Black-Scholes Option Pricing Model and was recorded as litigation settlement liability on the accompanying consolidated balance sheet as of December 31, 2017 and recognized on the settlement date as a reduction to the litigation settlement liability. There is no further litigation settlement liability on the accompanying consolidated balance sheets as of September 30, 2018.</font></p>" id="sjs-B20"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Pursuant to the settlement, the Company will issue 3,500,000 common shares valued at $1,050,000, warrants to purchase 1,000,000 common shares at $0.25 per share valued at $276,000, warrants to purchase 1,500,000 common shares at $0.50 per share valued at $398,000, and warrants to purchase 1,000,000 common shares at $0.75 per share valued at $259,000. The total value of the settlement, $1,983,000 was computed using the Black-Scholes Option Pricing Model and was recorded as litigation settlement liability on the accompanying consolidated balance sheet as of December 31, 2017 and recognized on the settlement date as a reduction to the litigation settlement liability. There is no further litigation settlement liability on the accompanying consolidated balance sheets as of September 30, 2018.</font></p> | |||
Litigation settlement liability | $ 1,983,000 |
Equity Transactions (Common Sto
Equity Transactions (Common Stock Issued In Period 2018) (Narrative) (Details) - USD ($) | Jul. 12, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Stock issued for cash, value | $ 855,000 | ||||
Stock issued to employees for services, value | 625,000 | ||||
Share based compensation | 625,000 | $ 999,000 | |||
Stock issued to consultants for services, value | 2,350,000 | ||||
Value of shares cancelled | (118,000) | ||||
Gain on cancellation of shares | $ 5,000 | 118,000 | |||
Stock and warrants issued for litigation settlement, value | $ 1,983,000 | ||||
Common Stock [Member] | |||||
Stock issued for cash, shares | 6,200,000 | ||||
Stock issued for cash, value | $ 620 | ||||
Stock issued to employees for services, shares | 1,250,000 | ||||
Stock issued to employees for services, value | $ 125 | ||||
Stock issued to consultants for services, shares | 6,608,781 | ||||
Stock issued to consultants for services, value | $ 661 | ||||
No of shares cancelled | (642,500) | ||||
Value of shares cancelled | $ (64) | ||||
Stock and warrants issued for litigation settlement, shares | 3,500,000 | ||||
Stock and warrants issued for litigation settlement, value | $ 350 | ||||
Common Stock [Member] | Order Approving Settlement Agreement [Member] | |||||
Stock and warrants issued for litigation settlement, shares | 3,500,000 | ||||
Stock and warrants issued for litigation settlement, value | $ 1,050,000 | ||||
Third Party Service Agreement [Member] | |||||
Gain on cancellation of shares | $ 113,000 | ||||
No of shares for which gain on cancellation recorded | 375,000 | ||||
Expenses reversed | $ 94,000 | ||||
No of shares for which expenses reversed | 250,000 | ||||
Third Party Service Agreement [Member] | |||||
Gain on cancellation of shares | $ 5,000 | ||||
Restricted Common Stock [Member] | Third Party Service Agreement [Member] | |||||
No of shares cancelled | 625,000 | ||||
Value of shares cancelled | $ 207,000 | ||||
Restricted Common Stock [Member] | Third Party Service Agreement [Member] | |||||
No of shares cancelled | 17,500 | ||||
Value of shares cancelled | $ 5,000 | ||||
Restricted Common Stock [Member] | Consultant [Member] | |||||
Share based compensation | $ 2,350,000 | ||||
Stock issued to consultants for services, shares | 6,608,781 | ||||
Stock issued to consultants for services, value | $ 2,350,000 | ||||
Restricted Common Stock [Member] | Third Parties [Member] | |||||
Stock issued for cash, shares | 6,200,000 | ||||
Stock issued for cash, value | $ 855,000 | ||||
Restricted Common Stock [Member] | Employees [Member] | |||||
Stock issued to employees for services, shares | 1,250,000 | ||||
Stock issued to employees for services, value | $ 625,000 | ||||
Share based compensation | $ 625,000 |
Equity Transactions (Options) (
Equity Transactions (Options) (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Share based compensation | $ 625,000 | $ 999,000 | |
Stock Options [Member] | |||
Stock options granted | 420,000 | ||
No of options vested | (315,000) | ||
Award terms | <font style="font: 10pt Times New Roman, Times, Serif">As all outstanding options had an exercise price greater than $0.24 per share, there was no intrinsic value of the options outstanding at September 30, 2018.</font></p>" id="sjs-B7"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">As all outstanding options had an exercise price greater than $0.24 per share, there was no intrinsic value of the options outstanding at September 30, 2018.</font></p> | ||
Share price | $ 0.24 | ||
Stock Options [Member] | Consultant [Member] | |||
Stock options granted | 420,000 | 420,000 | |
Fair value of stock option at grant date | $ 115,000 | ||
No of options vested | 315,000 | 350,000 | |
Vesting terms | <font style="font: 10pt Times New Roman, Times, Serif">A total of 350,000 vested during 2017, 315,000 options vested during the nine months ended September 30, 2018 while the remaining 175,000 options will vest through February 2019 at a rate of 35,000 shares per month.</font></p>" id="sjs-B13"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">A total of 350,000 vested during 2017, 315,000 options vested during the nine months ended September 30, 2018 while the remaining 175,000 options will vest through February 2019 at a rate of 35,000 shares per month.</font></p> | ||
Award terms | The options are exercisable at $1.00 per share and will expire over 4 years.</font></p>" id="sjs-B14"><p><font style="font: 10pt Times New Roman, Times, Serif">The options are exercisable at $1.00 per share and will expire over 4 years.</font></p> | ||
Share based compensation | $ 109,000 | ||
Unvested compensation expense for unvested options | $ 48,000 |
Equity Transactions (Warrants)
Equity Transactions (Warrants) (Narrative) (Details) - USD ($) | Jul. 12, 2018 | May 22, 2018 | Apr. 20, 2018 | May 31, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Jan. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 |
Amortization of debt discount | $ 147,000 | ||||||||
Stock and warrants issued for litigation settlement, value | $ 1,983,000 | ||||||||
Shares reserved in conncetion with 2 convertible notes with detachable warrants | 30,000,000 | ||||||||
Convertible Note Dated April 20, 2018 [Member] | |||||||||
Unamortized debt discount | $ 15,000 | $ 80,000 | |||||||
Convertible Note Dated May 22, 2018 [Member] | |||||||||
Unamortized debt discount | $ 25,000 | $ 222,000 | |||||||
Warrants [Member] | |||||||||
No of stock or warrants granted | 7,100,000 | ||||||||
Share price | $ 0.24 | ||||||||
Warrants outstanding | 600,000 | ||||||||
Intrinsic value of warrants | $ 138,000 | ||||||||
Award terms | <font style="font: 10pt Times New Roman, Times, Serif">The Company had 600,000 warrants outstanding with exercise prices less than $0.24 with an intrinsic value of $138,000 at September 30, 2018.</font></p>" id="sjs-I14"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">The Company had 600,000 warrants outstanding with exercise prices less than $0.24 with an intrinsic value of $138,000 at September 30, 2018.</font></p> | ||||||||
Description of shares reserved with court approves settlement | <font style="font: 10pt Times New Roman, Times, Serif">3,500,000 shares of common stock in connection with the court approves settlement agreement for a total of 33,500,000 reserved shares of common stock.</font></p>" id="sjs-I15"><p style="margin: 0"><font style="font: 10pt Times New Roman, Times, Serif">3,500,000 shares of common stock in connection with the court approves settlement agreement for a total of 33,500,000 reserved shares of common stock.</font></p> | ||||||||
Warrants [Member] | Order Approving Settlement Agreement [Member] | |||||||||
Warrants expiration date | Jul. 11, 2023 | ||||||||
Stock and warrants issued for litigation settlement, shares | 3,500,000 | ||||||||
Stock and warrants issued for litigation settlement, value | $ 933,000 | ||||||||
Warrants [Member] | Minimum [Member] | Order Approving Settlement Agreement [Member] | |||||||||
Exercise price of warrants | $ 0.25 | ||||||||
Warrants [Member] | Maximum [Member] | Order Approving Settlement Agreement [Member] | |||||||||
Exercise price of warrants | $ 0.75 | ||||||||
Warrants [Member] | Convertible Note Dated April 20, 2018 [Member] | |||||||||
No of stock or warrants granted | 500,000 | ||||||||
Warrants expiration date | Apr. 20, 2021 | ||||||||
Proceeds allocated to warrants and recorded as paid in capital and debt discount | $ 61,000 | ||||||||
Amortization of debt discount | $ 27,000 | ||||||||
Unamortized debt discount | 34,000 | ||||||||
Award terms | <p>The noteholder was also granted detachable 3-year warrants to purchase 200,000 shares of the company’s restricted common stock at an exercise price of $0.375 per share, 200,000 shares of the company’s restricted common stock at an exercise price of $0.50 per share, and 100,000 shares of the company’s restricted common stock at an exercise price of $0.625 per share.</p> | ||||||||
Warrants [Member] | Convertible Note Dated April 20, 2018 [Member] | Minimum [Member] | |||||||||
Exercise price of warrants | $ 0.375 | ||||||||
Warrants [Member] | Convertible Note Dated April 20, 2018 [Member] | Maximum [Member] | |||||||||
Exercise price of warrants | $ 0.625 | ||||||||
Warrants [Member] | Convertible Note Dated May 22, 2018 [Member] | |||||||||
No of stock or warrants granted | 200,000 | ||||||||
Exercise price of warrants | $ 2 | ||||||||
Warrants expiration date | May 22, 2023 | ||||||||
Proceeds allocated to warrants and recorded as paid in capital and debt discount | $ 32,000 | ||||||||
Amortization of debt discount | 17,000 | ||||||||
Unamortized debt discount | $ 15,000 | ||||||||
Award terms | <p>The noteholder was also granted detachable 5-year warrants to purchase 500,000 shares of the company’s restricted common stock at an exercise price of $2.00 per share.</p> | ||||||||
Services Agreement [Member] | Warrants [Member] | |||||||||
No of stock or warrants granted | 1,200,000 | ||||||||
Exercise price of warrants | $ 0.40 | ||||||||
Stock or warrants vesting period | 36 months | ||||||||
Fair value of stock or warrants at grant date | $ 383,000 | ||||||||
Stock Purchase Agreement [Member] | Warrants [Member] | |||||||||
No of stock or warrants granted | 1,000,000 | 700,000 | |||||||
Exercise price of warrants | $ 0.50 | ||||||||
Fair value of stock or warrants at grant date | $ 184,000 | $ 234,000 | |||||||
Warrants expiration date | May 29, 2021 | Mar. 8, 2023 | |||||||
Stock Purchase Agreement [Member] | Warrants [Member] | Minimum [Member] | |||||||||
Exercise price of warrants | $ 0.50 | ||||||||
Stock Purchase Agreement [Member] | Warrants [Member] | Maximum [Member] | |||||||||
Exercise price of warrants | $ 1 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) - shares | Oct. 16, 2018 | Nov. 14, 2018 | Sep. 30, 2018 |
Common Stock [Member] | |||
Subsequent Event [Line Items] | |||
Stock issued for services, shares | 6,608,781 | ||
Subsequent Event [Member] | Restricted Common Stock [Member] | Employment Contract With One Officer Of The Company [Member] | |||
Subsequent Event [Line Items] | |||
Shares issued for compensation | 300,000 | ||
Subsequent Event [Member] | Common Stock [Member] | Third Party Service Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Stock issued for services, shares | 295,000 |