Heritage Global (HGBL) 10-Q 10 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	HGBL
Security Exchange Name	NASDAQ
Entity Registrant Name	HERITAGE GLOBAL INC.
Entity Central Index Key	0000849145
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Document Transition Report	false
Title of 12(b) Security	Common stock, $0.01 par value
Entity Incorporation, State or Country Code	FL
Document Quarterly Report	true
Entity Common Stock, Shares Outstanding		36,932,177
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-39471
Entity Tax Identification Number	59-2291344
Entity Address, Address Line One	12625 High Bluff Drive
Entity Address, Address Line Two	Suite 305
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	847-0659

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 17,482	$ 13,622
Accounts receivable (net of allowance for doubtful accounts of $122 in 2022 and 2021)	1,670	2,732
Current portion of notes receivable, net	1,341	2,254
Inventory – equipment	4,822	3,220
Other current assets	1,160	1,456
Total current assets	26,475	23,284
Non-current portion of notes receivable, net	751	1,784
Equity method investments	8,499	4,683
Right-of-use assets	2,933	2,694
Property and equipment, net	1,481	1,471
Intangible assets, net	4,250	4,565
Goodwill	7,446	7,446
Deferred tax assets	3,117	4,488
Other assets	64	49
Total assets	55,016	50,464
Current liabilities:
Accounts payable and accrued liabilities	6,323	4,793
Payables to sellers	5,890	6,451
Current portion of third party debt	531	2,479
Current portion of lease liabilities	714	501
Total current liabilities	13,458	14,224
Non-current portion of third party debt	993	1,352
Non-current portion of lease liabilities	2,293	2,249
Total liabilities	16,744	17,825
Stockholders’ equity:
Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 565 shares of Series N as of June 30, 2022 and December 31, 2021	6	6
Common stock, $0.01 par value, authorized 300,000,000 shares; issued and outstanding 36,734,087 shares as of June 30, 2022 and 36,574,702 shares as of December 31, 2021	369	366
Additional paid-in capital	293,433	293,030
Treasury stock at cost, 71,512 shares as of June 30, 2022 and 0 shares as of December 31, 2021	(296)	0
Accumulated deficit	(255,240)	(260,763)
Total stockholders’ equity	38,272	32,639
Total liabilities and stockholders’ equity	$ 55,016	$ 50,464

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 122	$ 122
Preferred stock, par value (in dollars per share)	$ 10	$ 10
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	565	565
Preferred stock, shares outstanding	565	565
Treasury stock shares	183,699	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	36,932,177	36,574,702
Common stock, shares outstanding	36,932,177	36,574,702

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Total revenues	$ 12,661	$ 5,991	$ 33,083	$ 18,268
Operating costs and expenses:
Selling, general and administrative	5,693	3,494	14,907	11,134
Depreciation and amortization	134	105	400	294
Total operating costs and expenses	10,893	5,374	31,070	16,533
Earnings of equity method investments	1,706	(84)	5,960	(83)
Operating income	3,474	533	7,973	1,652
Interest and other expense, net	(21)	(6)	(96)	6
Income before income tax expense (benefit)	3,453	527	7,877	1,658
Income tax expense (benefit)	1,153	53	2,354	(435)
Net income	$ 2,300	$ 474	$ 5,523	$ 2,093
Weighted average common shares outstanding – basic	36,084,696	35,805,227	36,014,439	35,285,128
Weighted average common shares outstanding – diluted	37,221,430	37,090,294	36,872,977	36,567,713
Net income per share – basic	$ 0.06	$ 0.01	$ 0.15	$ 0.06
Net income per share – diluted	$ 0.06	$ 0.01	$ 0.15	$ 0.06
Services Revenue [Member]
Revenues:
Total revenues	$ 7,349	$ 4,822	$ 16,112	$ 14,020
Operating costs and expenses:
Cost of services revenue and assets sales	2,051	1,100	3,715	3,235
Asset Sales [Member]
Revenues:
Total revenues	5,312	1,169	16,971	4,248
Operating costs and expenses:
Cost of services revenue and assets sales	$ 3,015	$ 675	$ 12,048	$ 1,870

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Treasury stock [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2020	$ 29,943	$ 6	$ 353	$ 293,400		$ (263,816)
Begining Balance (in shares) at Dec. 31, 2020		568	35,281,183
Issuance of common stock from stock option awards	(120)		$ 4	(124)
Issuance of common stock from stock options awards, shares			366,294
Stock-based compensation expense	67			67
Net income	1,032					1,032
Ending Balance at Mar. 31, 2021	30,922	$ 6	$ 357	293,343		(262,784)
Ending Balance (in shares) at Mar. 31, 2021		568	35,647,477
Beginning Balance at Dec. 31, 2020	29,943	$ 6	$ 353	293,400		(263,816)
Begining Balance (in shares) at Dec. 31, 2020		568	35,281,183
Net income	2,093
Ending Balance at Sep. 30, 2021	31,584	$ 6	$ 366	292,935		(261,723)
Ending Balance (in shares) at Sep. 30, 2021		565	36,574,702
Beginning Balance at Mar. 31, 2021	30,922	$ 6	$ 357	293,343		(262,784)
Begining Balance (in shares) at Mar. 31, 2021		568	35,647,477
Issuance of common stock from stock option awards	(670)		$ 6	(676)
Issuance of common stock from stock options awards, shares			611,905
Issuance of restricted common stock	76			76
Issuance of restricted common stock, shares			25,000
Stock-based compensation expense	68			68
Net income	587					587
Ending Balance at Jun. 30, 2021	30,983	$ 6	$ 363	292,811		(262,197)
Ending Balance (in shares) at Jun. 30, 2021		568	36,284,382
Issuance of common stock from stock option awards	25		$ 3	22
Issuance of common stock from stock options awards, shares			290,200
Issuance of common stock due to conversion of Series N Preferred stock		3	(120)
Stock-based compensation expense	102			102
Net income	474					474
Ending Balance at Sep. 30, 2021	31,584	$ 6	$ 366	292,935		(261,723)
Ending Balance (in shares) at Sep. 30, 2021		565	36,574,702
Beginning Balance at Dec. 31, 2021	32,639	$ 6	$ 366	293,030		(260,763)
Begining Balance (in shares) at Dec. 31, 2021		565	36,574,702		0
Issuance of common stock from stock option awards	(23)		$ 1	(24)
Issuance of common stock from stock options awards, shares			103,135
Stock-based compensation expense	106			106
Net income	645					645
Ending Balance at Mar. 31, 2022	33,367	$ 6	$ 367	293,112		(260,118)
Ending Balance (in shares) at Mar. 31, 2022		565	36,677,837		0
Beginning Balance at Dec. 31, 2021	$ 32,639	$ 6	$ 366	293,030		(260,763)
Begining Balance (in shares) at Dec. 31, 2021		565	36,574,702		0
Issuance of common stock from stock options awards, shares	339,125
Net income	$ 5,523
Ending Balance at Sep. 30, 2022	38,272	$ 6	$ 369	293,433	$ (296)	(255,240)
Ending Balance (in shares) at Sep. 30, 2022		565	36,932,177		183,699
Beginning Balance at Mar. 31, 2022	33,367	$ 6	$ 367	293,112		(260,118)
Begining Balance (in shares) at Mar. 31, 2022		565	36,677,837		0
Issuance of common stock from stock option awards	25			25
Issuance of common stock from stock options awards, shares			56,250
Stock-based compensation expense	108			108
Repurchase of common stock, shares					71,512
Repurchase of common stock	(105)				$ (105)
Net income	2,578					2,578
Ending Balance at Jun. 30, 2022	35,973	$ 6	$ 367	293,245	$ (105)	(257,540)
Ending Balance (in shares) at Jun. 30, 2022		565	36,734,087		71,512
Issuance of common stock from stock option awards	20		$ 1	19
Issuance of common stock from stock options awards, shares			83,090
Issuance of common stock, shares			115,000
Stock-based compensation expense	170			170
Repurchase of common stock, shares					112,187
Repurchase of common stock	(191)				$ (191)
Net income	2,300
Ending Balance at Sep. 30, 2022	$ 38,272	$ 6	$ 369	$ 293,433	$ (296)	$ (255,240)
Ending Balance (in shares) at Sep. 30, 2022		565	36,932,177		183,699

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows (used in) provided by operating activities:
Net income	$ 5,523	$ 2,093
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of deferred issuance costs and fees	125	39
Earnings of equity method investments	(5,960)	83
Noncash lease expense	391	408
Depreciation and amortization	400	294
Deferred taxes	1,371	(405)
Stock-based compensation expense	384	313
Changes in operating assets and liabilities:
Accounts receivable	1,062	(1,555)
Inventory – equipment	(1,602)	(26)
Other assets	281	(80)
Accounts payable and accrued liabilities	1,530	(1,582)
Payables to sellers	(561)	(3,308)
Lease liabilities	(373)	(400)
Net cash provided by (used in) operating activities	2,571	(4,126)
Cash flows provided by (used in) investing activities:
Investment in notes receivable	(625)	(5,856)
Payments received on notes receivable	2,446	3,388
Investment in equity method investments	(8,068)	(1,092)
Return of investment in equity method investments	2,945	0
Cash distributions from equity method investments	7,266	82
Purchase of property and equipment	(94)	(1,423)
Acquisition, net of cash acquired	0	(4,318)
Cash received on transfer of notes receivable to partners	0	1,961
Net cash provided by (used in) investing activities	3,870	(7,258)
Cash flows (used in) provided by financing activities:
Proceeds from debt payable to third parties	0	1,300
Repayment of debt payable to third parties	(2,307)	(1,300)
Proceeds from issuance of notes payable to third parties	0	2,000
Proceeds from issuance of common stock from stock option awards	66	221
Payments of tax withholdings related to cashless exercises of stock option awards	(44)	(988)
Repurchase of common stock	(296)	0
Net cash (used in) provided by financing activities	(2,581)	1,233
Net increase (decrease) in cash and cash equivalents	3,860	(10,151)
Cash and cash equivalents as of beginning of period	13,622	23,385
Cash and cash equivalents as of end of period	17,482	13,234
Supplemental cash flow information:
Cash paid for taxes	276	118
Cash paid for interest	106	6
Noncash change in Right-of-use assets	630	2,263
Noncash change in Lease liabilities	$ 630	$ 2,263

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Note 1 –Basis of Presentation These consolidated financial statements include the accounts of Heritage Global Inc. together with its subsidiaries, including Heritage Global Partners, Inc. (“HGP”), National Loan Exchange Inc. (“NLEX”), Heritage Global LLC (“HG LLC”), Heritage Global Capital LLC (“HGC”), and Heritage ALT LLC (“ALT”). These entities, collectively, are referred to as “HGI,” the “Company,” “we” or “our” in these consolidated financial statements. These consolidated financial statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as outlined in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and include the assets, liabilities, revenues, and expenses of all subsidiaries over which HGI exercises control. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company began its asset liquidation operations in 2009 with the establishment of HG LLC. The business was subsequently expanded by the acquisitions of HGP, NLEX, and ALT in 2012, 2014, and 2021 respectively, and the creation of HGC in 2019. As a result, HGI is positioned to provide an array of value-added capital and financial asset solutions: auction and appraisal services, traditional asset disposition sales, and specialty financing solutions. The Company’s reportable segments consist of both its Financial Assets Division and Industrial Assets Division. The Company has prepared the condensed consolidated interim financial statements included herein pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements reflect all adjustments that are necessary to present fairly the results for the interim periods included herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations; however, the Company believes that the disclosures are appropriate. These unaudited condensed consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the SEC on March 17, 2022 (the “Form 10-K”). The results of operations for the three month period ended September 30, 2022 are not necessarily indicative of those operating results to be expected for any subsequent interim period or for the entire year ending December 31, 2022. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2021 has been derived from the audited consolidated balance sheet as of December 31, 2021, contained in the Company’s Form 10-K. COVID-19 The novel coronavirus (“COVID-19”) pandemic had a negative impact on the Company's performance during 2021 due to evolving travel and work restrictions, stimulus payments and credit policies impacting debt sales by financial institutions, and a delay in the typical process for the sale of certain industrial assets by manufacturing companies. Going forward, and subject to the caveat below, the Company does not believe the COVID-19 pandemic will have material negative impacts on its financial performance, as the Company expects that the supply of surplus industrial assets will return to pre-pandemic levels and believes that the continuing disruptions to the global supply chain, particularly those involving industrial assets, will further increase demand for U.S.-based surplus assets. Further, as stimulus payments conclude, the Company expects that the COVID-19 pandemic will have the following positive impacts: • increased activity for NLEX and HGC due to the resurgence of consumer spending, rising delinquency and charge-off rates, and expanding volumes of nonperforming and charged-off consumer loans; and • incremental valuation opportunities for the Company's valuation business as a result of greater focus on collateral on bank balance sheets. Further surges in COVID-19 infection rates could result in the continuation of stimulus payments and the implementation of additional credit policies impacting debt sales that may result in delayed revenues depending on the scope and magnitude of such policies. Public Offering On October 6, 2020, the Company completed a public offering (the “2020 Public Offering”) of 5,462,500 shares of its common stock, at a public offering price of $ 1.75 per share, which included a full exercise of the underwriters’ option to purchase 712,500 additional shares of common stock from the Company. The Company received approximately $ 8.7 million of net proceeds, after deducting underwriting discounts and commissions, but before offering expenses. During 2021 and the nine months ended September 30, 2022, the Company deployed proceeds to fund the ALT acquisition, as well as various principal transactions in both its Financial Assets and Industrial Assets Divisions. Repurchase Program The Company’s Board of Directors authorized a share repurchase program on May 5, 2022 (“2022 Repurchase Program”) which permits the Company to purchase up to an aggregate of $4.0 million in common shares over a three year period ending in June of 2025. As of September 30, 2022, the Company had approximately $3.7 million in remaining aggregate dollar value of shares that may be purchased under the program. There were 0.1 million shares repurchased in the open market for $0.2 million during the three months ended September 30, 2022, and 0.2 million shares repurchased in the open market for $0.3 million during the nine months ended September 30, 2022.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant estimates include the assessment of collectability of revenue recognized and the valuation of accounts receivable and notes receivable, inventory, investments, goodwill and intangible assets, liabilities, deferred income tax assets and liabilities including projecting future years’ taxable income, and stock-based compensation. These estimates have the potential to significantly impact our consolidated financial statements, either because of the significance of the financial statement item to which they relate, or because they require judgment and estimation due to the uncertainty involved in measuring, at a specific point in time, events that are continuous in nature. Reclassifications Certain prior year balances within the consolidated financial statements have been reclassified to conform to current year presentation. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Services revenue generally consists of commissions and fees from providing auction services, appraisals, brokering of sales transactions, secured lending and providing merger and acquisition advisory services. Asset sales revenue generally consists of proceeds obtained through sales of purchased assets. Revenue is recognized for both services revenue and asset sales revenue based on the ASC 606 standard recognition model, which consists of the following: (1) an agreement exists between two or more parties that creates enforceable rights and obligations, (2) the performance obligations are clearly identified, (3) the transaction price has been determined, (4) the transaction price has been properly allocated to each performance obligation, and (5) the entity satisfies a performance obligation by transferring a promised good or service to a customer for each of the entities. All services and asset sales revenue from contracts with customers is considered to be within the asset liquidation business, which consists of two reportable segments, the Industrial Assets Division and the Financial Assets Division. Generally, revenue is recognized in the asset liquidation business at the point in time in which the performance obligation has been satisfied. The exception to recognition at a point in time occurs when certain contracts provide for advance payments recognized over a period of time. Services revenue recognized over a period of time is not material in comparison to total revenues (less than 1 % of total revenues for the three months ended September 30, 2022), and therefore not reported on a disaggregated basis. Further, as certain contracts stipulate that the customer make advance payments, amounts not recognized within the reporting period are considered deferred revenue and the Company’s “contract liability”. As of September 30, 2022, the deferred revenue balance was approximately $ 0.4 million and is recorded as a component of accounts payable and accrued liabilities. The deferred revenue balance is primarily related to customer deposits on ALT asset sales. The Company records receivables related to asset liquidation in certain situations based on timing of payments for asset liquidation transactions held at the end of the reporting period; however, revenue is generally recognized in the period that the Company satisfies the performance obligation. The Company does not record a “contract asset” for partially satisfied performance obligations. For auction services and brokerage sale transactions, funds are typically collected from buyers and are held by the Company on the seller's behalf. The funds are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods. The amount of cash held on behalf of the sellers is recorded as payables to sellers in the accompanying Condensed Consolidated Balance Sheets. The Company evaluates revenue from asset liquidation transactions in accordance with the accounting guidance to determine whether to report such revenue on a gross or net basis. The Company has determined that it acts as an agent for its fee based asset liquidation transactions and therefore reports the revenue from these transactions on a net basis. The Company also earns asset liquidation income through asset liquidation transactions that involve the Company acting jointly with one or more additional purchasers, pursuant to a partnership, joint venture or limited liability company (“LLC”) agreement (collectively, “Joint Ventures”). For these transactions, in which the Company’s ownership share meets the criteria for the equity method investments under ASC 323, the Company does not record asset liquidation revenue or expense. Instead, the Company’s proportionate share of the net income (loss) is reported as earnings of equity method investments. In general, the Joint Ventures apply the same revenue recognition and other accounting policies as the Company. In 2019, the Company began providing specialty financing solutions to investors in charged-off and nonperforming asset portfolios. Fees collected in relation to the issuance of loans includes loan origination fees, interest income, portfolio monitoring fees, and a backend profit share percentage related to the underlying asset portfolio. The loan origination fees are offset with any direct origination costs and are deferred upon issuance of the loan and amortized over the lives of the related loans, as an adjustment to interest income. The interest method is used to arrive at periodic interest income, net of fees and costs, that reflects a constant effective yield on the net investment in the loan receivable. The monitoring fees and the backend profit share are considered a separate earnings process as compared to the origination fees and interest income. Monitoring fees are recorded at the agreed upon rate, and at the moment in which payments are made by the borrower. The backend profit share is recognized in accordance with the agreed upon rate at the time in which the amount is realizable and earned. The recognition policy was established due to the uncertainty of timing of the amount of backend profit share which will be realized. Future accounting pronouncements In 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which applies a current expected credit loss model based on expected losses rather than incurred losses. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from, or added to, the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 eliminates the current accounting model for loans and debt securities acquired with deteriorated credit quality under ASC Topic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, which provides authoritative guidance for the accounting of the Company’s notes receivable. With respect to smaller reporting companies, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company will complete its evaluation on the impact of the new guidance on its consolidated financial statements in the fourth quarter ended December 31, 2022.

Notes Receivable, Net

Notes Receivable, Net	9 Months Ended
	Sep. 30, 2022
Receivables [Abstract]
Notes Receivable, net	Note 3 – Notes Receivable, net The Company’s notes receivable balance consists of loans to buyers of charged-off receivable portfolios. As of September 30, 2022 and December 31, 2021, the Company’s outstanding notes receivables, net of unamortized deferred fees and costs on originated loans, were $ 2.1 million and $ 4.0 million, respectively. During the nine months ended September 30, 2022, the Company issued notes receivable of approximately $ 0.6 million, which was offset by principal payments made by borrowers of approximately $ 2.4 million and adjustments to the deferred fees and costs balance of approximately $ 0.1 million. As of September 30, 2022 and December 31, 2021, the Company did no t record an allowance for credit losses related to notes receivable outstanding.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation	Note 4 – Stock-based Compensation Options As of September 30, 2022, the Company had four stock-based compensation plans, which are described more fully in Note 17 to the audited consolidated financial statements for the year ended December 31, 2021, contained in the Company’s Form 10-K. During the nine months ended September 30, 2022, the Company issued options to purchase 279,500 shares of common stock to certain of the Company's employees. During the same period, the Company cancelled options to purchase 95,625 shares of common stock, of which 55,625 were as a result of employee resignations and 40,000 were options issued to non-employee directors and subsequently canceled. The following summarizes the changes in common stock options for the nine months ended September 30, 2022: Options Weighted Weighted Aggregate Intrinsic Value (In thousands) Outstanding as of December 31, 2021 2,193,288 $ 1.23 Granted 279,500 $ 1.62 Exercised ( 339,125 ) $ 0.50 Forfeited ( 95,625 ) $ 1.77 Outstanding as of September 30, 2022 2,038,038 $ 1.38 7.38 $ 938 Options exercisable as of September 30, 2022 980,163 $ 0.96 6.02 $ 737 The Company recognized stock-based compensation expense related to common stock options of $ 0.3 million for the nine months ended September 30, 2022. As of September 30, 2022, there was approximately $ 1.0 million of unrecognized stock-based compensation expense related to unvested common stock options outstanding, which is expected to be recognized over a weighted average period of 2.8 years. At the Company's 2022 Annual Meeting of Shareholders, the Company's shareholders approved the 2022 Heritage Global Inc. Equity Incentive Plan, which replaces the Heritage Global Inc. 2016 Plan and authorized the issuance of an aggregate of 3.5 million shares of Common Stock for awards made after June 8, 2022. As of September 30, 2022, the Company issued options to purchase 144,500 shares of common stock to certain of the Company's employees under this plan. Restricted Stock Restricted stock awards represent a right to receive shares of common stock at a future date determined in accordance with the participant’s award agreement. There is no exercise price and no monetary payment required for receipt of restricted stock awards or the shares issued in settlement of the award. Instead, consideration is furnished in the form of the participant’s services to the Company. Compensation cost for these awards is based on the fair value of the shares of common stock on the date of grant and recognized as compensation expense on a straight-line basis over the requisite service period. On June 1, 2018, the Company granted 600,000 shares of Company restricted common stock in connection with the Addenda to the Employment Agreements of David Ludwig and Tom Ludwig. The shares are subject to certain restrictions on transfer and a right of repurchase over five years , ending May 31, 2023, and require a continued term of service to the Company. Stock-based compensation expense related to the restricted stock awards, calculated by using the grant date fair value of $ 0.43 per share, was $ 38,700 for the nine months ended September 30, 2022. The unrecognized stock-based compensation expense as of September 30, 2022 was approximately $ 34,400 . On March 30, 2021, the Company and Scott West entered into a Separation Agreement and General Release (the “Separation Agreement”). Under the terms of the Separation Agreement, Mr. West’s separation from the Company was effective on March 31, 2021. On April 8, 2021, the Company granted 25,000 shares of the Company’s restricted common stock, which will be forfeited to the Company during the two years following the effective date of the Separation Agreement in the event Mr. West breaches the terms of the Separation Agreement. In addition, the Separation Agreement provides for customary mutual releases by the Company and Mr. West, and the Separation Agreement includes confidentiality, non-disparagement and other obligations. The full amount of the restricted common stock was expensed as of March 31, 2021. On August 3, 2022, the Company granted 115,000 shares of Company restricted common stock to non-executive directors under the 2022 Heritage Global Inc. Equity Incentive Plan. Of the shares of Company restricted common stock granted during the nine months ended September 30, 2022, 40,000 shares were granted with a vesting term that was completed prior to the grant date due to a delay in the Company’s ability to grant such shares, and the remaining 75,000 shares will vest in full on March 31, 2023. We determined the fair value of the shares awarded by using the closing price of our common stock as of the grant date. Stock-based compensation expense related to the restricted stock awards, calculated by using the grant date fair value of $ 1.58 per share, was $ 92,800 for the nine months ended September 30, 2022. The unrecognized stock-based compensation expense as of for the nine months ended September 30, 2022, was approximately $ 88,900 .

Lessor Arrangement

Lessor Arrangement	9 Months Ended
	Sep. 30, 2022
Lessor Disclosure [Abstract]
Lessor Arrangement	Note 5 – Lessor Arrangement In June 2019, the Company, with certain partners, entered into agreements to lease, with a purchase option, a fully functional manufacturing building, including all machinery and equipment held within. The assets under lease relate to the Company’s purchase, with certain partners, of a pharmaceutical campus in Huntsville, Alabama, as disclosed in the Company’s Form 10-K. The lessee is obligated to make monthly lease payments over a ten-year period, totaling approximately $ 13.2 million for the real estate portion, and monthly lease payments over a six-year period totaling approximately $ 9.7 million for the machinery and equipment. The lessor arrangement is classified as a sales-type lease, and, therefore, the present value of future lease payments was recognized as revenue and a lease receivable as of the effective date. The real estate portion of the lease arrangement is owned by CPFH LLC, the joint venture, and is accounted for under the equity method where the Company’s share in earnings from equity method investments is shown in one line item on the Condensed Consolidated Income Statement. Refer to Note 6 for further information. The machinery and equipment portion of the arrangement is jointly owned by all the partners of CPFH LLC, apart from the joint venture entity. Therefore, the Company has derecognized the leased asset of approximately $ 0.9 million and recognized as revenue approximately $ 1.2 million, which represents the present value of future lease payments and a lease receivable included in the accounts receivable line item on the Condensed Consolidated Balance Sheet, consistent and reflective of its business model for asset sales. The purchase option for both the real estate and machinery and equipment could be exercised at any time on or after December 1, 2019, and before May 31, 2021, for a total purchase price of $ 20.0 million, of which $ 12.0 million and $ 8.0 million are allocated to the real estate and machinery and equipment, respectively. On May 31, 2021, the lessee delivered written notice to exercise the purchase option. The lessee confirmed that its intention was to exercise the option, however, was unable to complete the transaction before the purchase option’s original expiration date of November 30, 2021. CPFH LLC and lessee negotiated an amendment to the purchase option in March of 2022, increasing the purchase price for the real estate to $ 15.0 million. On June 30, 2022, the lessee exercised its purchase option by completing the real estate transaction and terminating the lease.

Equity Method Investments

Equity Method Investments	9 Months Ended
	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Note 6 – Equity Method Investments In November 2018, CPFH LLC, of which the Company holds a 25 % share, was formed to purchase certain real estate assets among partners in a joint venture. In March 2020, HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In April 2022, KNFH LLC, of which the Company holds a 25 % share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. CPFH LLC and KNFH LLC are joint ventures formed in connection with the Company’s Industrial Assets Division, whereas HGC Origination I LLC and HGC Funding I LLC were formed in connection with its Financial Assets Division. The table below details the Company’s joint venture revenues and earnings during the nine months ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Revenues: Oak Grove Asset Acquisitions LP $ — $ 5 CPFH LLC 31,072 350 KNFH LLC 16,882 — HGC Funding I LLC and Origination I LLC 1,611 73 Total revenues $ 49,565 $ 428 Operating (loss) income: Oak Grove Asset Acquisitions LP $ — $ 4 CPFH LLC 15,357 ( 402 ) KNFH LLC 6,915 — HGC Funding I LLC and Origination I LLC 1,589 51 Total operating (loss) income $ 23,861 $ ( 347 ) The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Assets: CPFH LLC 779 11,789 KNFH LLC 2,712 — HGC Funding I LLC and Origination I LLC 31,790 10,476 Total assets $ 35,281 $ 22,265 Liabilities: CPFH LLC 138 6,099 KNFH LLC 43 — HGC Funding I LLC and Origination I LLC — — Total liabilities $ 181 $ 6,099

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Note 7 – Earnings Per Share The Company is required in periods in which it has net income to calculate basic earnings per share (“basic EPS”) using the two-class method. The two-class method is required because the Company’s shares of Series N preferred shares, each of which is convertible to 40 common shares, have the right to receive dividends or dividend equivalents should the Company declare dividends on its common stock. Under the two-class method, earnings for the period are allocated on a pro-rata basis to the common and preferred stockholders. The weighted-average number of common and preferred shares outstanding during the period is then used to calculate basic EPS for each class of shares. For the three and nine months ended September 30, 2022, the earnings allocated to the preferred shares outstanding was not material. In periods in which the Company has a net loss, basic loss per share is calculated by dividing the loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The two-class method is not used in periods in which the Company has a net loss because the preferred stock does not participate in losses. Stock options and other potential common shares are included in the calculation of diluted earnings per share (“diluted EPS”), since they are assumed to be exercised or converted, except when their effect would be anti-dilutive. The table below shows the calculation of the shares used in computing diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, Weighted Average Shares Calculation: 2022 2021 2022 2021 Basic weighted average shares outstanding 36,084,696 35,805,227 36,014,439 35,285,128 Treasury stock effect of common stock options and restricted stock awards 1,136,734 1,285,067 858,538 1,282,585 Diluted weighted average common shares outstanding 37,221,430 37,090,294 36,872,977 36,567,713 For the nine months ended September 30, 2022 and 2021, there were potential common shares of 0.9 million and approximately 0.4 million, respectively, that were excluded from the computation of diluted EPS, as the inclusion of such common shares would have been anti-dilutive. For the three months ended September 30, 2022 and 2021, there were potential common shares of 0.8 million and 0.4 million, respectively, that were excluded.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	Note 8 – Leases The Company leases office and warehouse space primarily in four locations: Del Mar, CA; Hayward, CA; San Diego, CA and Edwardsville, IL. As each contract does not meet any of the four criteria of ASC 842 for financing lease classification, the Company has determined that each lease arrangement should be classified as an operating lease. On October 27, 2020, the Company entered into an agreement (the “Lease”) with Hayward FGHK Industrial, LLC (“Landlord”) pursuant to which the Company leases 30,321 square feet of industrial space in Hayward, California from Landlord. The Lease has a commencement date of April 1, 2021 , and an initial term of ninety ( 90 ) months, unless terminated earlier by either party pursuant to the terms of the Lease. The Lease provides for an initial monthly base rent of $ 27,289 , which increases on an annual basis to $ 33,562 per month in the final year. In addition, the Company is obligated to pay its share of maintenance costs of common areas. On August 12, 2022, the Company entered into an agreement (the “Lease”) with Liberty Industrial Park, LLC (“Landlord”) pursuant to which the Company leases 6,627 square feet of industrial space in San Diego, California from Landlord. The Lease has a commencement date of September 1, 2022. The Lease provides for an initial monthly base rent of $ 11,266 , which increases on an annual basis to $ 13,180 per month in the final year. In addition, the Company is obligated to pay its share of maintenance costs of common areas. The right-of-use assets and lease liabilities for each location are as follows (in thousands): September 30, December 31, Right-of-use assets: 2022 2021 Del Mar, CA $ 371 $ 477 Hayward, CA 1,867 2,064 San Diego, CA 618 — Edwardsville, IL 77 153 $ 2,933 $ 2,694 September 30, December 31, Lease liabilities: 2022 2021 Del Mar, CA $ 398 $ 506 Hayward, CA 1,913 2,089 San Diego, CA 619 — Edwardsville, IL 77 155 $ 3,007 $ 2,750 The Company’s leases generally do not provide an implicit rate, and, therefore, the Company uses its incremental borrowing rate as the discount rate when measuring operating lease liabilities. The incremental borrowing rate represents an estimate of the interest rate the Company would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular currency environment. The Company used its incremental borrowing rate as of January 1, 2019 for operating leases that commenced prior to that date. As of January 1, 2019, the Company’s incremental borrowing rate was 5.25 %. For leases commencing after January 1, 2019 the Company uses its incremental borrowing rate at time of commencement. On April 1, 2021 and September 1, 2022 the Company’s incremental borrowing rate was 4.95 % and 5.5 %, respectively. Lease expense for leases determined to be operating leases is recognized on a straight-line basis over the lease term. For the nine month periods ended September 30, 2022 and 2021, lease expense was approximately $ 0.5 million. As of September 30, 2022, undiscounted future minimum lease payments related to leases that have initial or remaining lease terms in excess of one year are as follows (in thousands): 2022 (remainder of year from October 1, 2022 to December 31, 2022) $ 176 2023 705 2024 675 2025 546 2026 531 Thereafter 808 Total undiscounted future minimum lease payments 3,441 Less imputed interest ( 434 ) Present value of lease liabilities $ 3,007

Intangible Assets and Goodwill

Intangible Assets and Goodwill	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Note 9 – Intangible Assets and Goodwill Identifiable intangible assets The Company’s identifiable intangible assets are associated with its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, as shown in the table below (in thousands except for lives) and are amortized using the straight-line method over their remaining estimated useful lives. The Company’s tradename that was acquired as part of the acquisition of NLEX in 2014 has an indefinite life and therefore is not amortized. Remaining Carrying Value Carrying Value Life December 31, September 30, Amortized Intangible Assets (years) 2021 Amortization 2022 Customer Relationships (HGP) 0.3 $ 30 $ ( 22 ) $ 8 Trade Name (HGP) 2.3 386 ( 96 ) 290 Trade Name (ALT) 18.9 639 ( 24 ) 615 Vendor Relationship (ALT) 3.9 1,073 ( 173 ) 900 Total 2,128 ( 315 ) 1,813 Unamortized Intangible Assets Trade Name (NLEX) NA 2,437 — 2,437 Total 2,437 — 2,437 Total $ 4,565 $ ( 315 ) $ 4,250 Amortization expense during the nine months ended September 30, 2022 and 2021 was $ 0.3 and $ 0.2 million respectively. As of September 30, 2022, the estimated amortization expense for the remainder of the current fiscal year and the next five fiscal years and thereafter is shown below (in thousands): Year Amount 2022 (remainder of year from October 1, 2022 to December 31, 2022) $ 105 2023 391 2024 391 2025 263 2026 186 Thereafter 477 Total $ 1,813 Goodwill The Company’s goodwill is related to its asset liquidation business and is comprised of goodwill from the acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, as shown in the table below (in thousands). There were no additions to goodwill and no impairment losses to the carrying amount of goodwill during the nine months ended September 30, 2022. Acquisition September 30, 2022 December 31, 2021 ALT $ 1,861 $ 1,861 HGP 2,040 2,040 NLEX 3,545 3,545 Total goodwill $ 7,446 $ 7,446

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	Note 10 – Debt Outstanding debt as of September 30, 2022 and December 31, 2021 is summarized as follows (in thousands): September 30, 2022 December 31, 2021 Current: Third party debt $ 531 $ 2,479 Non-current: Third party debt 993 1,352 Total debt $ 1,524 $ 3,831 On May 5, 2021, the Company entered into a promissory note, business loan agreement, commercial security agreement and pledge agreement (the “2021 Credit Facility”) with C3bank, National Association for a $ 10.0 million revolving line of credit. The 2021 Credit Facility matures on May 7, 2023 . The Company is permitted to use the proceeds of the loan solely for its business operations. The 2021 Credit Facility accrues at a variable interest rate, which is based on the rate of interest last quoted by The Wall Street Journal as the “prime rate,” plus a margin of 1.70 % (such rate not to be less than 4.950 % per annum). The Company pays interest on the 2021 Credit Facility in regular monthly payments, which began on June 11, 2021. The 2021 Credit Facility also provides for a minimum fee, which is offset by interest payments. The Company may prepay the 2021 Credit Facility without penalty and may convert up to $ 5.0 million of revolving debt into term debt. The Company is the borrower under the 2021 Credit Facility. The 2021 Credit Facility is secured by a security interest in certain of the Company’s and its certain subsidiaries’ current and future tangible and intangible assets, inventory, chattel paper, accounts, equipment and general intangibles and a pledge of the equity of the direct and indirect subsidiaries of the Company. The availability of additional draws under the 2021 Credit Facility is conditioned, among other things, on the compliance with certain customary representations and warranties, including default, insolvency or bankruptcy, material adverse change in financial condition and any guarantor’s attempt to revise its guarantee. The agreement governing the 2021 Credit Facility also contains customary affirmative covenants regarding, among other things, the maintenance of records, maintenance of certain insurance coverage, compliance with governmental requirements and maintenance of several financial covenants. The 2021 Credit Facility contains certain customary financial covenants and negative covenants that, among other things, include restrictions on the Company’s ability to create, incur or assume indebtedness for borrowed money, including capital leases or to sell, transfer, mortgage, assign, pledge, lease, grant a security interest in, or encumber any of the Company’s assets. The Company had no outstanding balance as of September 30, 2022. On August 23, 2022, the Company entered into a Loan Modification Agreement and Reaffirmation of Loan (the “Modification Agreement”), effective as of April 1, 2022, by and between the Company and C3bank, National Association (the “Lender”). The Modification Agreement modifies and reaffirms that certain promissory note, business loan agreement, commercial security agreement and pledge agreement, dated as of May 5, 2021, by and between the Company and Lender (collectively, the “Loan Agreement”), whereby Lender agreed to make a revolving line of credit to Borrower in the maximum principal amount of $ 10.0 million. The Modification Agreement modifies and amends the Loan Agreement to provide for, among other things, the arrangement of the Loan Agreement’s financial covenants, which remain unchanged, into two categories: (i) financial covenants used to resize the maximum principal amount available to the Company as of the date of determination (as determined by Lender in its sole discretion), and (ii) financial covenants to be maintained by the Company during the term of the Loan Agreement. On August 23, 2021, the Company entered into a $ 2.0 million subordinated promissory note with an interest rate of 3 % per annum and a maturity date of August 23, 2025 (the “ALT Note”) as part of the aggregate purchase price paid to acquire certain assets and liabilities of American Laboratory Trading. The ALT Note requires 48 equal installments of approximately $ 44,000 on the first day of each month, beginning the next month succeeding the closing date of August 23, 2021 with the final payment due on August 23, 2025. The outstanding balance of the ALT Note as of September 30, 2022 was $ 1.5 million.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 11 – Income Taxes As of September 30, 2022, the Company had aggregate tax net operating loss carry forwards of approximately $ 77.8 million ($ 62.2 million of unrestricted net operating tax losses and approximately $ 15.6 million of restricted net operating tax losses). Substantially all of the net operating loss carry forwards expire between 2024 and 2037 . The Company’s utilization of restricted net operating tax loss carry forwards against future income for tax purposes is restricted pursuant to the “change in ownership” rules in Section 382 of the Internal Revenue Code. The reported tax expense varies from the amount that would be provided by applying the statutory U.S. Federal income tax rate to the income from operations before taxes primarily as a result of the impact of state income taxes. The Company records net deferred tax assets to the extent that it believes such assets will more likely than not be realized. As a result of cumulative losses and uncertainty with respect to future taxable income, the Company has provided a partial valuation allowance against its net deferred tax assets as of September 30, 2022 and December 31, 2021.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 12 – Related Party Transactions As part of the operations of NLEX, the Company leases office space in Edwardsville, IL that is owned by David Ludwig, the Company’s President of its Financial Assets Division and a member of its board of directors. The total amount paid to the related party for both nine month periods ended September 30, 2022 and 2021 was approximately $ 83,000 and $ 82,000 respectively, and is included in selling, general and administrative expenses the Condensed Consolidated Income Statements. All lease payments during the nine months ended September 30, 2022 and the year ended December 31, 2021 were made to Mr. Ludwig. On June 1, 2018, the Company amended its lease agreement with David Ludwig to extend the term of the lease to May 31, 2023 and to set the rent amounts for the new term.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2022
Segment Reporting Information, Additional Information [Abstract]
Segment Information	Note 13 – Segment Information The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable segments. The Company manages its business primarily on differentiated revenue streams for services offered. The Company’s reportable segments consist of the Industrial Assets Division and Financial Assets Division. The Industrial Assets Division advises enterprise and financial customers on the sale of industrial assets mostly from surplus and sometimes distressed circumstances while acting as an agent, guarantor or principal in the sale. The Financial Assets Division provides liquidity to issuers of consumer credit that are looking to monetize nonperforming and charged-off loans — loans that creditors have written off as uncollectable. Nonperforming and charged-off loans typically originate from banks that issue unsecured consumer credit. The Company evaluates the performance of its reportable segments based primarily on net operating income. Further, the Company does not utilize segmented asset information to evaluate the performance of its reportable segments and does not include intercompany transfers between segments for management reporting purposes. The following table sets forth certain financial information for the Company's reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Industrial Assets Division: Net operating income $ 3,058 $ 765 $ 7,247 $ 2,538 Financial Assets Division: Net operating income $ 1,566 $ 449 $ 3,480 $ 1,372 Corporate and Other: Net operating loss $ ( 1,150 ) $ ( 681 ) $ ( 2,754 ) $ ( 2,258 ) Consolidated: Net operating income $ 3,474 $ 533 $ 7,973 $ 1,652

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Use of Estimates	Use of estimates The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Management bases its estimates and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results could differ from those estimates. Significant estimates include the assessment of collectability of revenue recognized and the valuation of accounts receivable and notes receivable, inventory, investments, goodwill and intangible assets, liabilities, deferred income tax assets and liabilities including projecting future years’ taxable income, and stock-based compensation. These estimates have the potential to significantly impact our consolidated financial statements, either because of the significance of the financial statement item to which they relate, or because they require judgment and estimation due to the uncertainty involved in measuring, at a specific point in time, events that are continuous in nature.
Reclassifications	Reclassifications Certain prior year balances within the consolidated financial statements have been reclassified to conform to current year presentation.
Revenue Recognition	Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”). Services revenue generally consists of commissions and fees from providing auction services, appraisals, brokering of sales transactions, secured lending and providing merger and acquisition advisory services. Asset sales revenue generally consists of proceeds obtained through sales of purchased assets. Revenue is recognized for both services revenue and asset sales revenue based on the ASC 606 standard recognition model, which consists of the following: (1) an agreement exists between two or more parties that creates enforceable rights and obligations, (2) the performance obligations are clearly identified, (3) the transaction price has been determined, (4) the transaction price has been properly allocated to each performance obligation, and (5) the entity satisfies a performance obligation by transferring a promised good or service to a customer for each of the entities. All services and asset sales revenue from contracts with customers is considered to be within the asset liquidation business, which consists of two reportable segments, the Industrial Assets Division and the Financial Assets Division. Generally, revenue is recognized in the asset liquidation business at the point in time in which the performance obligation has been satisfied. The exception to recognition at a point in time occurs when certain contracts provide for advance payments recognized over a period of time. Services revenue recognized over a period of time is not material in comparison to total revenues (less than 1 % of total revenues for the three months ended September 30, 2022), and therefore not reported on a disaggregated basis. Further, as certain contracts stipulate that the customer make advance payments, amounts not recognized within the reporting period are considered deferred revenue and the Company’s “contract liability”. As of September 30, 2022, the deferred revenue balance was approximately $ 0.4 million and is recorded as a component of accounts payable and accrued liabilities. The deferred revenue balance is primarily related to customer deposits on ALT asset sales. The Company records receivables related to asset liquidation in certain situations based on timing of payments for asset liquidation transactions held at the end of the reporting period; however, revenue is generally recognized in the period that the Company satisfies the performance obligation. The Company does not record a “contract asset” for partially satisfied performance obligations. For auction services and brokerage sale transactions, funds are typically collected from buyers and are held by the Company on the seller's behalf. The funds are included in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. The Company releases the funds to the seller, less the Company's commission and other fees due, after the buyer has accepted the goods. The amount of cash held on behalf of the sellers is recorded as payables to sellers in the accompanying Condensed Consolidated Balance Sheets. The Company evaluates revenue from asset liquidation transactions in accordance with the accounting guidance to determine whether to report such revenue on a gross or net basis. The Company has determined that it acts as an agent for its fee based asset liquidation transactions and therefore reports the revenue from these transactions on a net basis. The Company also earns asset liquidation income through asset liquidation transactions that involve the Company acting jointly with one or more additional purchasers, pursuant to a partnership, joint venture or limited liability company (“LLC”) agreement (collectively, “Joint Ventures”). For these transactions, in which the Company’s ownership share meets the criteria for the equity method investments under ASC 323, the Company does not record asset liquidation revenue or expense. Instead, the Company’s proportionate share of the net income (loss) is reported as earnings of equity method investments. In general, the Joint Ventures apply the same revenue recognition and other accounting policies as the Company. In 2019, the Company began providing specialty financing solutions to investors in charged-off and nonperforming asset portfolios. Fees collected in relation to the issuance of loans includes loan origination fees, interest income, portfolio monitoring fees, and a backend profit share percentage related to the underlying asset portfolio. The loan origination fees are offset with any direct origination costs and are deferred upon issuance of the loan and amortized over the lives of the related loans, as an adjustment to interest income. The interest method is used to arrive at periodic interest income, net of fees and costs, that reflects a constant effective yield on the net investment in the loan receivable. The monitoring fees and the backend profit share are considered a separate earnings process as compared to the origination fees and interest income. Monitoring fees are recorded at the agreed upon rate, and at the moment in which payments are made by the borrower. The backend profit share is recognized in accordance with the agreed upon rate at the time in which the amount is realizable and earned. The recognition policy was established due to the uncertainty of timing of the amount of backend profit share which will be realized.
Future accounting pronouncements	Future accounting pronouncements In 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”), which applies a current expected credit loss model based on expected losses rather than incurred losses. The expected credit losses, and subsequent adjustments to such losses, will be recorded through an allowance account that is deducted from, or added to, the amortized cost basis of the financial asset, with the net carrying value of the financial asset presented on the consolidated balance sheet at the amount expected to be collected. ASU 2016-13 eliminates the current accounting model for loans and debt securities acquired with deteriorated credit quality under ASC Topic 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality, which provides authoritative guidance for the accounting of the Company’s notes receivable. With respect to smaller reporting companies, the amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company will complete its evaluation on the impact of the new guidance on its consolidated financial statements in the fourth quarter ended December 31, 2022.

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Schedule of Changes in Common Stock Options	The following summarizes the changes in common stock options for the nine months ended September 30, 2022: Options Weighted Weighted Aggregate Intrinsic Value (In thousands) Outstanding as of December 31, 2021 2,193,288 $ 1.23 Granted 279,500 $ 1.62 Exercised ( 339,125 ) $ 0.50 Forfeited ( 95,625 ) $ 1.77 Outstanding as of September 30, 2022 2,038,038 $ 1.38 7.38 $ 938 Options exercisable as of September 30, 2022 980,163 $ 0.96 6.02 $ 737

Equity Method Investments (Tabl

Equity Method Investments (Tables)	9 Months Ended
	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Joint Venture Revenues and Net Income (Loss)	The table below details the Company’s joint venture revenues and earnings during the nine months ended September 30, 2022 and 2021 (in thousands): Nine Months Ended September 30, 2022 2021 Revenues: Oak Grove Asset Acquisitions LP $ — $ 5 CPFH LLC 31,072 350 KNFH LLC 16,882 — HGC Funding I LLC and Origination I LLC 1,611 73 Total revenues $ 49,565 $ 428 Operating (loss) income: Oak Grove Asset Acquisitions LP $ — $ 4 CPFH LLC 15,357 ( 402 ) KNFH LLC 6,915 — HGC Funding I LLC and Origination I LLC 1,589 51 Total operating (loss) income $ 23,861 $ ( 347 )
Schedule of the Components of Assets and Liabilities	The table below details the summarized components of assets and liabilities of the Company’s joint ventures, as of September 30, 2022 and December 31, 2021 (in thousands): September 30, December 31, 2022 2021 Assets: CPFH LLC 779 11,789 KNFH LLC 2,712 — HGC Funding I LLC and Origination I LLC 31,790 10,476 Total assets $ 35,281 $ 22,265 Liabilities: CPFH LLC 138 6,099 KNFH LLC 43 — HGC Funding I LLC and Origination I LLC — — Total liabilities $ 181 $ 6,099

Earnings Per Share (Tables)

Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2022
Earnings Per Share [Abstract]
Schedule of Calculation of the Shares Used in Computing Diluted EPS	The table below shows the calculation of the shares used in computing diluted EPS. Three Months Ended September 30, Nine Months Ended September 30, Weighted Average Shares Calculation: 2022 2021 2022 2021 Basic weighted average shares outstanding 36,084,696 35,805,227 36,014,439 35,285,128 Treasury stock effect of common stock options and restricted stock awards 1,136,734 1,285,067 858,538 1,282,585 Diluted weighted average common shares outstanding 37,221,430 37,090,294 36,872,977 36,567,713

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Schedule of Right-of-Use Assets and Lease Liabilities	The right-of-use assets and lease liabilities for each location are as follows (in thousands): September 30, December 31, Right-of-use assets: 2022 2021 Del Mar, CA $ 371 $ 477 Hayward, CA 1,867 2,064 San Diego, CA 618 — Edwardsville, IL 77 153 $ 2,933 $ 2,694 September 30, December 31, Lease liabilities: 2022 2021 Del Mar, CA $ 398 $ 506 Hayward, CA 1,913 2,089 San Diego, CA 619 — Edwardsville, IL 77 155 $ 3,007 $ 2,750
Schedule of Undiscounted Future Minimum Lease Commitments	undiscounted future minimum lease payments related to leases that have initial or remaining lease terms in excess of one year are as follows (in thousands): 2022 (remainder of year from October 1, 2022 to December 31, 2022) $ 176 2023 705 2024 675 2025 546 2026 531 Thereafter 808 Total undiscounted future minimum lease payments 3,441 Less imputed interest ( 434 ) Present value of lease liabilities $ 3,007

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	9 Months Ended
	Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The Company’s identifiable intangible assets are associated with its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, as shown in the table below (in thousands except for lives) and are amortized using the straight-line method over their remaining estimated useful lives. The Company’s tradename that was acquired as part of the acquisition of NLEX in 2014 has an indefinite life and therefore is not amortized. Remaining Carrying Value Carrying Value Life December 31, September 30, Amortized Intangible Assets (years) 2021 Amortization 2022 Customer Relationships (HGP) 0.3 $ 30 $ ( 22 ) $ 8 Trade Name (HGP) 2.3 386 ( 96 ) 290 Trade Name (ALT) 18.9 639 ( 24 ) 615 Vendor Relationship (ALT) 3.9 1,073 ( 173 ) 900 Total 2,128 ( 315 ) 1,813 Unamortized Intangible Assets Trade Name (NLEX) NA 2,437 — 2,437 Total 2,437 — 2,437 Total $ 4,565 $ ( 315 ) $ 4,250
Schedule of Estimated Amortization Expense Intangible Assets	As of September 30, 2022, the estimated amortization expense for the remainder of the current fiscal year and the next five fiscal years and thereafter is shown below (in thousands): Year Amount 2022 (remainder of year from October 1, 2022 to December 31, 2022) $ 105 2023 391 2024 391 2025 263 2026 186 Thereafter 477 Total $ 1,813
Schedule of Goodwill	There were no additions to goodwill and no impairment losses to the carrying amount of goodwill during the nine months ended September 30, 2022. Acquisition September 30, 2022 December 31, 2021 ALT $ 1,861 $ 1,861 HGP 2,040 2,040 NLEX 3,545 3,545 Total goodwill $ 7,446 $ 7,446

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Schedule Of Debt	Outstanding debt as of September 30, 2022 and December 31, 2021 is summarized as follows (in thousands): September 30, 2022 December 31, 2021 Current: Third party debt $ 531 $ 2,479 Non-current: Third party debt 993 1,352 Total debt $ 1,524 $ 3,831

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2022
Segment Reporting Information, Additional Information [Abstract]
Schedule of Financial Information for the Company's Reportable Segments	The following table sets forth certain financial information for the Company's reportable segments (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Industrial Assets Division: Net operating income $ 3,058 $ 765 $ 7,247 $ 2,538 Financial Assets Division: Net operating income $ 1,566 $ 449 $ 3,480 $ 1,372 Corporate and Other: Net operating loss $ ( 1,150 ) $ ( 681 ) $ ( 2,754 ) $ ( 2,258 ) Consolidated: Net operating income $ 3,474 $ 533 $ 7,973 $ 1,652

Basis of Presentation (Details)

Basis of Presentation (Details) - Common Stock [Member] $ / shares in Units, $ in Millions	Oct. 06, 2020 USD ($) $ / shares shares
Number Shares Issuance Public Offering	5,462,500
Public Offering Price Per Share | $ / shares	$ 1.75
Number Of Shares Exercise Of Underwriters Option To Purchase	712,500
Proceeds From Issuance Of Public Offering | $	$ 8.7

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Narrative) (Details) - ASC 606 [Member] $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) Segment
Summary Of Significant Accounting Policies [Line Items]
Number of reporting segment | Segment		2
Deferred revenue | $	$ 0.4	$ 0.4
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of service revenue that is recognized over a period of time against total revenue	1%

Notes Receivable, Net - Narrati

Notes Receivable, Net - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Receivables [Abstract]
Outstanding principal balance	$ 2.1	$ 4
Additional notes issued	0.6
Principal payments received	2.4
Allowance for credit losses	0	$ 0
Deferred fees and costs	$ 0.1

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands					9 Months Ended
	Aug. 03, 2022	Mar. 30, 2021	Mar. 30, 2021	Jun. 01, 2018	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)					279,500
Options cancelled to purchase common stock					95,625
Stock-based compensation expense					$ 384	$ 313
Options, Granted					279,500
Remaining shares are subject to a vesting					980,163
2016 Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)					144,500
Options, Granted					144,500
David Ludwig And Tom Ludwig [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted				600,000
Restricted common stock granted				600,000
Common Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense					$ 300
Unrecognized stock-based compensation					$ 1,000
Unrecognized stock-based compensation, Period for recognition					2 years 9 months 18 days
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense					$ 38,700
Unrecognized stock-based compensation expense					$ 34,400
Restricted Stock [Member] | David Ludwig And Tom Ludwig [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares restriction term of service				5 years
Weighted average grant date fair value					$ 0.43
Restricted Stock [Member] | Scott West [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted			25,000
Shares restriction term of service		2 years
Restricted common stock granted			25,000
Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock shares authorized for issuance under plan					3,500,000
Employees [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)					279,500
Options cancelled to purchase common stock					55,625
Options, Granted					279,500
Non-Employee Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options cancelled to purchase common stock					40,000
Non-Executive Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted common stock granted	115,000
Restricted common stock granted	115,000
Non-Executive Directors [Member] | Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options to purchase, Granted (in shares)					40,000
Stock-based compensation expense					$ 92,800
Weighted average grant date fair value	$ 1.58
Unrecognized stock-based compensation expense					$ 88,900
Options, Granted					40,000
Number of Shares vested in period					75,000

Stock-based Compensation - Sche

Stock-based Compensation - Schedule of Changes in Common Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Options, Outstanding at the beginning of the period	2,193,288
Options, Granted	279,500
Options, Exercised	(339,125)
Option, Forfeited	(95,625)
Options, Outstanding at the end of the period	2,038,038
Options, Exercisable at the end of the period	980,163
Weighted Average Exercise Price, Outstanding at the beginning of the period	$ 1.23
Weighted Average Exercise Price, Granted	1.62
Weighted Average Exercise Price, Exercised	0.50
Weighted Average Exercise Price, Forfeited	1.77
Weighted Average Exercise Price, Outstanding at the end of the period	1.38
Weighted Average Exercise Price, Exercisable at the end of the period	$ 0.96
Options Outstanding Weighted Average Contractual Life (years)	7 years 4 months 17 days
Options Exercisable Weighted Average Contractual Life (years)	6 years 7 days
Aggregate Intrinsic Value, Outstanding	$ 938
Aggregate Intrinsic Value, Exercisable	$ 737

Lessor Arrangement (Narrative)

Lessor Arrangement (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2019	Mar. 31, 2022
Lessor Lease Description [Line Items]
Sale leaseback transaction, date	The purchase option for both the real estate and machinery and equipment could be exercised at any time on or after December 1, 2019, and before May 31, 2021,
Total purchase price	$ 20
Real Estate [Member]
Lessor Lease Description [Line Items]
Lease payments term	10 years
Total monthly lease payments	$ 13.2
Total purchase price	12	$ 15
Machinery and Equipment [Member]
Lessor Lease Description [Line Items]
Total monthly lease payments	9.7
Total purchase price	8
Derecognized lease asset	0.9
Revenue from derecognized lease asset	$ 1.2

Equity Method Investments (Narr

Equity Method Investments (Narrative) (Details)	Apr. 30, 2022	Nov. 14, 2018
CPFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage		25%
KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	25%

Equity Method Investments - Sch

Equity Method Investments - Schedule of Joint Venture Revenues and Net Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule Of Equity Method Investments [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest					$ 5,523	$ 2,093
Operating (loss) income	$ 3,474	$ 533			7,973	1,652
Oak Grove Asset Acquisitions LP [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues					0	5
Operating (loss) income					0	4
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues			$ 49,565	$ 428
Operating (loss) income					23,861	(347)
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | CPFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues			31,072	350
Operating (loss) income					15,357	(402)
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues			16,882	0
Operating (loss) income					6,915	0
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | HGC Funding I LLC and Origination I LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues			$ 1,611	$ 73
Operating (loss) income					$ 1,589	$ 51

Equity Method Investments- Sche

Equity Method Investments- Schedule of the Components of Assets and Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Equity Method Investments [Line Items]
Assets	$ 55,016	$ 50,464
Liabilities	16,744	17,825
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule Of Equity Method Investments [Line Items]
Assets	35,281	22,265
Liabilities	181	6,099
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | CPFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Assets	779	11,789
Liabilities	138	6,099
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Assets	2,712	0
Liabilities	43	0
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | HGC Funding I LLC and Origination I LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Assets	31,790	10,476
Liabilities	$ 0	$ 0

Earnings Per Share (Narrative)

Earnings Per Share (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Convertible Preferred Stock, Shares Issuable upon Conversion			the Company’s shares of Series N preferred shares, each of which is convertible to 40 common shares, have the right to receive dividends or dividend equivalents should the Company declare dividends on its common stock.
Series N preferred stock, each convertible to common shares	40		40
Anti-dilutive common shares	800,000	400,000	900,000	400,000

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Calculation of the Shares Used in Computing Diluted EPS (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	36,084,696	35,805,227	36,014,439	35,285,128
Treasury stock effect of common stock options and restricted stock awards	1,136,734	1,285,067	858,538	1,282,585
Diluted weighted average common shares outstanding	37,221,430	37,090,294	36,872,977	36,567,713

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Thousands			9 Months Ended
	Aug. 12, 2022 USD ($) ft²	Oct. 27, 2020 USD ($) ft²	Sep. 30, 2022 USD ($) Location	Sep. 30, 2021 USD ($)	Sep. 01, 2022	Apr. 01, 2021	Jan. 01, 2019
Number of locations | Location			4
Initial term for lease		90 months
Lessee operating lease, incremental borrowing rate					5.50%	4.95%	5.25%
Lease expense			$ 500	$ 500
Hayward F G H K Industrial L L C
Area of lease | ft²		30,321
Lease commencement date		Apr. 01, 2021
Initial monthly base rent		$ 27,289
Hayward F G H K Industrial L L C | Maximum [Member]
Initial monthly base rent		$ 33,562
Liberty Industrial Park, LLC
Area of lease | ft²	6,627
Initial monthly base rent	$ 11,266
Liberty Industrial Park, LLC | Maximum [Member]
Initial monthly base rent	$ 13,180

Leases - Schedule of Right-of-U

Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lessee Lease Description [Line Items]
Right-of-use assets	$ 2,933	$ 2,694
Lease liabilities	3,007	2,750
Del Mar, CA [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	371	477
Lease liabilities	398	506
Hayward F G H K Industrial L L C
Lessee Lease Description [Line Items]
Right-of-use assets	1,867	2,064
Lease liabilities	1,913	2,089
San Diego, CA
Lessee Lease Description [Line Items]
Right-of-use assets	618	0
Lease liabilities	619	0
Edwardsville, IL [Member]
Lessee Lease Description [Line Items]
Right-of-use assets	77	153
Lease liabilities	$ 77	$ 155

Leases - Schedule of Undiscount

Leases - Schedule of Undiscounted Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, to be Paid [Abstract]
2022 (remainder of year from October 1, 2022 to December 31, 2022)	$ 176
2023	705
2024	675
2025	546
2026	531
Thereafter	808
Total undiscounted future minimum lease payments	3,441
Less imputed interest	(434)
Present value of lease liabilities	$ 3,007	$ 2,750

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended	9 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Finite Lived Intangible Assets [Line Items]
Amortization expense, intangible assets		$ 315
Goodwill, Impairment Loss	$ 0
Identifiable intangible assets [Member]
Finite Lived Intangible Assets [Line Items]
Amortization expense, intangible assets		$ 300	$ 200

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	$ (315)
Amortized Intangible Assets	1,813	$ 2,128
Unamortized intangible assets	2,437	2,437
Intangible assets, net	4,250	4,565
NLEX [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Unamortized intangible assets	2,437	2,437
ALT [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	(24)
Amortized Intangible Assets	$ 615	639
Intangible Assets,Amortization Period	18 years 10 months 24 days
HGP Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	$ (96)
Amortized Intangible Assets	$ 290	386
Intangible Assets,Amortization Period	2 years 3 months 18 days
Customer Relationships
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	$ (315)
Amortized Intangible Assets	1,813
Customer Relationships | H G P
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	22
Amortized Intangible Assets	$ 8	30
Intangible Assets,Amortization Period	3 months 18 days
Vendor Relationships [Member] | ALT [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Amortization	$ (173)
Amortized Intangible Assets	$ 900	$ 1,073
Intangible Assets,Amortization Period	3 years 10 months 24 days

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
2022 (remainder of year from July 1, 2022 to December 31, 2022)	$ 105
2023	391
2024	391
2025	263
2026	186
Thereafter	477
Amortized Intangible Assets	$ 1,813	$ 2,128

Intangible Assets and Goodwil_5

Intangible Assets and Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 7,446	$ 7,446
ALT [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	1,861	1,861
H G P
Finite Lived Intangible Assets [Line Items]
Goodwill	2,040	2,040
NLEX [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 3,545	$ 3,545

Schedule of Debt (Details)

Schedule of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current:
Third party debt	$ 531	$ 2,479
Non-current:
Third party debt	993	1,352
Total debt	$ 1,524	$ 3,831

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)				9 Months Ended
	Aug. 23, 2022	Aug. 23, 2021	May 05, 2021	Sep. 30, 2022
Heritage Global LLC [Member]
Debt Instrument [Line Items]
Line of credit		$ 2,000,000
Debt instrument, Maturity date		Aug. 23, 2025
Interest rate per annum		3%
Litigation settlement installments amount due		$ 44,000
Debt outstanding amount				$ 1,500,000
Wall Street Journal prime rate [Member] | Heritage Global LLC [Member]
Debt Instrument [Line Items]
Interest rate per annum			1.70%
C3bank [Member]
Debt Instrument [Line Items]
Line of credit			$ 10,000,000
Debt instrument, Maturity date			May 07, 2023
Convert From Revolving Debt To Term Debt			$ 5,000,000
C3bank [Member] | Maximum [Member]
Debt Instrument [Line Items]
Interest rate per annum			4.95%
C3bank [Member] | Revolving Line of Credit [Member] | Maximum [Member]
Debt Instrument [Line Items]
Line of credit, drawn amount	$ 10,000,000

Income Taxes (Narrative) (Detai

Income Taxes (Narrative) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Income Taxes [Line Items]
Operating loss carryforwards	$ 77.8
Operating Loss Carryforwards, Expiration Date	Substantially all of the net operating loss carry forwards expire between 2024 and 2037
Operating Loss Carryforwards, Limitations on Use	The Company’s utilization of restricted net operating tax loss carry forwards against future income for tax purposes is restricted pursuant to the “change in ownership” rules in Section 382 of the Internal Revenue Code.The reported tax expense varies from the amount that would be provided by applying the statutory U.S. Federal income tax rate to the income from operations before taxes primarily as a result of the impact of state income taxes.
Unrestricted [Member]
Income Taxes [Line Items]
Operating loss carryforwards	$ 62.2
Restricted [Member]
Income Taxes [Line Items]
Operating loss carryforwards	$ 15.6

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - Senior Officer of NLEX [Member] - Lease Amounts [Member] - Edwardsville, IL [Member] - USD ($)		9 Months Ended
	Jun. 01, 2018	Sep. 30, 2022	Sep. 30, 2021
Related Party Transaction [Line Items]
Related party transaction agreement end date	May 31, 2023
Selling, General and Administrative Expenses [Member]
Related Party Transaction [Line Items]
Payment to related party		$ 83,000	$ 82,000

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Operating Income (Loss)	$ 3,474	$ 533	$ 7,973	$ 1,652
Industrial Assets Division [Member]
Operating Income (Loss)	3,058	765	7,247	2,538
Financial Assets Division [Member]
Operating Income (Loss)	1,566	449	3,480	1,372
Corporate and Other [Member]
Operating Income (Loss)	$ (1,150)	$ (681)	$ (2,754)	$ (2,258)

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details) - C3bank [Member] $ in Millions	May 05, 2021 USD ($)
Subsequent Event [Line Items]
Line of credit	$ 10
Debt instrument, Maturity date	May 07, 2023
Maximum [Member]
Subsequent Event [Line Items]
Interest rate per annum	4.95%