Heritage Global (HGBL) 10-K 24 Mar 23 2022 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Mar. 01, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2022
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 Shell Company	false
Entity Common Stock, Shares Outstanding			36,932,177
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Entity Public Float			$ 42.3
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Entity File Number	001-39471
Entity Tax Identification Number	59-2291344
ICFR Auditor Attestation Flag	false
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	847-0659
Entity Incorporation, State or Country Code	FL
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 Interactive Data Current	Yes
Title of 12(g) Security	Common stock, $0.01 par value
Document Annual Report	true
Document Transition Report	false
Trading Symbol	HGBL
Security Exchange Name	NASDAQ
Documents Incorporated by Reference	Portions of the Registrant’s definitive Proxy Statement for its 2023 Annual Meeting of Stockholders are incorporated by reference into Part III hereof.
Auditor Name	UHY LLP	BAKER TILLY US, LLP
Auditor Location	West Des Moines, Iowa	San Diego, California
Auditor Firm ID	1195	23

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 12,667	$ 13,622
Accounts receivable (net of allowance for doubtful accounts of $122 in 2022 and 2021)	988	2,732
Current portion of notes receivable, net	4,505	2,254
Inventory – equipment	4,619	3,220
Other current assets	1,113	1,456
Total current assets	23,892	23,284
Non-current portion of notes receivable, net	4,245	1,784
Equity method investments	13,973	4,683
Right-of-use asset	2,776	2,694
Property, plant and equipment, net	1,571	1,471
Intangible assets, net	4,144	4,565
Goodwill	7,446	7,446
Deferred tax assets	9,449	4,488
Other assets	64	49
Total assets	67,560	50,464
Current liabilities:
Accounts payable and accrued liabilities	8,924	4,793
Payables to sellers	3,188	6,451
Current portion of third party debt	3,411	2,479
Current portion of lease liabilities	703	501
Total current liabilities	16,226	14,224
Non-current portion of third party debt	871	1,352
Non-current portion of lease liabilities	2,164	2,249
Total liabilities	19,261	17,825
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock, $10.00 par value, authorized 10,000,000 shares; issued and outstanding 565 Series N shares at December 31, 2022 and 568 shares at December 31, 2021; with liquidation preference over common stockholders equivalent to $1,000 per share	6	6
Common stock, $0.01 par value, authorized 300,000,000 shares; issued and outstanding 36,932,177 shares at December 31, 2022 and 36,574,702 shares at December 31, 2021	369	366
Additional paid-in capital	293,589	293,030
Accumulated deficit	(245,270)	(260,763)
Treasury stock at cost, 243,468 shares as of December 31, 2022 and 0 shars as of December 31, 2021	(395)	0
Total stockholders’ equity	48,299	32,639
Total liabilities and stockholders’ equity	$ 67,560	$ 50,464

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 100	$ 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
Preferred stock liquidation preference	$ 1,000	$ 1,000
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
Treasury stock at cost	243,468	0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenues:
Total revenues	$ 46,914	$ 25,792
Operating costs and expenses:
Selling, general and administrative	21,326	14,811
Depreciation and amortization	536	460
Total operating costs and expenses	42,772	22,699
Earnings of equity method investments	6,978	(79)
Operating income	11,120	3,014
Interest expense, net	(113)	(22)
Income before income tax benefit	11,007	2,992
Income tax benefit	(4,486)	(61)
Net income	$ 15,493	$ 3,053
Weighted average common shares outstanding – basic	36,016,619	35,458,938
Weighted average common shares outstanding – diluted	37,097,270	36,901,390
Net income per share – basic	$ 0.43	$ 0.09
Net income per share – diluted	$ 0.42	$ 0.08
Services Revenue [Member]
Revenues:
Total revenues	$ 23,419	$ 19,954
Operating costs and expenses:
Cost of services revenue and assets sales	4,654	4,499
Asset Sales [Member]
Revenues:
Total revenues	23,495	5,838
Operating costs and expenses:
Cost of services revenue and assets sales	$ 16,256	$ 2,929

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS 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)
Beginning Balance (in shares) at Dec. 31, 2020		568	35,281,183
Issuance of common stock from stock option awards	$ (765)		$ 13	(778)
Issuance of common stock from stock options awards, shares	1,895,437		1,268,399
Issuance of restricted common stock	$ 76			76
Issuance of restricted common stock, shares			25,000
Issuance of common stock due to conversion of Series N Preferred stock, shares		(3)	120
Stock-based compensation expense	332			332
Net income	3,053					3,053
Ending Balance at Dec. 31, 2021	32,639	$ 6	$ 366	293,030		(260,763)
Ending Balance (in shares) at Dec. 31, 2021		565	36,574,702
Issuance of common stock from stock option awards	$ 22		$ 2	20
Issuance of common stock from stock options awards, shares	339,125		242,475
Issuance of restricted common stock	$ 134		$ 1	133
Issuance of restricted common stock, shares			115,000
Stock-based compensation expense	406			406
Repurchase of common stock	(395)				$ (395)
Repurchase of common stock, shares					243,468
Net income	15,493					15,493
Ending Balance at Dec. 31, 2022	$ 48,299	$ 6	$ 369	$ 293,589	$ 395	$ (245,270)
Ending Balance (in shares) at Dec. 31, 2022		565	36,932,177		243,468

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows (used in) provided by operating activities:
Net income	$ 15,493	$ 3,053
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of deferred issuance costs and fees	279	141
Earnings of equity method investments	(6,978)	79
Noncash lease expense	548	532
Depreciation and amortization	536	460
Deferred taxes	(4,961)	(86)
Stock-based compensation expense	540	408
Changes in operating assets and liabilities:
Accounts receivable	1,744	(826)
Inventory – equipment	(1,399)	(2,487)
Other assets	328	(749)
Accounts payable and accrued liabilities	4,129	(557)
Payables to sellers	(3,263)	(2,538)
Lease liabilities	(513)	(61)
Net cash provided by (used in) operating activities	6,483	(2,631)
Cash flows used in investing activities:
Investment in notes receivable	(8,435)	(8,039)
Payments received on notes receivable	3,446	3,984
Investment in equity method investments	(14,612)	(2,603)
Return of investment in equity method investments	5,309	0
Cash distributions from equity method investments	6,991	243
Purchase of property, plant and equipment	(215)	(1,425)
Acquisition, net of cash acquired	0	(4,318)
Cash received on transfer of notes receivable to partners	0	1,961
Net cash used in investing activities	(7,516)	(10,197)
Cash flows provided by financing activities:
Proceeds from debt payable to third parties	2,880	5,248
Repayment of debt payable to third parties	(2,429)	(1,417)
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)	(987)
Repurchase of common stock	(395)	0
Net cash provided by financing activities	78	3,065
Net decrease in cash and cash equivalents	(955)	(9,763)
Cash and cash equivalents at beginning of year	13,622	23,385
Cash and cash equivalents at end of year	12,667	13,622
Supplemental cash flow information:
Cash paid for taxes	297	116
Cash paid for interest	103	22
Noncash change in Right-of-use assets	630	2,263
Noncash change in Lease liabilities	$ 630	$ 2,263

Description of Business and Pri

Description of Business and Principles of Consolidation	12 Months Ended
	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Principles of Consolidation	Note 1 – Description of Business and Principles of Consolidation 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 “HG,” the “Company,” “we” or “our” in these consolidated financial statements. These consolidated financial statements were prepared in conformity with generally accepted accounting principles 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 HG exercises control. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company began its 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, HG 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 Auction and Liquidation, through HPG, Refurbishment & Resale, through ALT, Brokerage, through NLEX and Specialty Lending, through HGC. COVID-19 While 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, it did not have a material negative impact on the Industrial Assets Division during 2022, as the supply of surplus industrial assets largely returned to pre-pandemic levels and the continuing disruptions to the global supply chain, particularly those involving industrial assets, increased demand for U.S. based surplus assets. COVID-19’s potentially negative impact on the Financial Assets Division in 2022 from reduced charged-off receivable portfolio volumes was offset by an increase in business volume and an influx of new clients for the NLEX brokerage business as a result of adaptive changes made during 2021. Going forward, the Company does not believe the COVID-19 pandemic will have material negative impacts on its financial performance, as it expects that supply and demand will remain robust in the Industrial Assets Division and increasing consumer spending and rising delinquency and charge-off rates will result in expanding volumes of nonperforming and charged-off consumer loans, which will benefit the Financial Assets Division. 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 December 31, 2022, the Company had approximately $3.6 million in remaining aggregate dollar value of shares that may be purchased under the program. There were 243,468 shares repurchased in the open market for approximately $0.4 million during 2022.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 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. Nature of Business The Company earns revenue both from commission or fee-based services, and from the sale of distressed or surplus assets. With respect to the former, revenue is recognized as the services are provided. With respect to the latter, the majority of the asset sale transactions are conducted directly by the Company and the revenue is recognized in the period in which the asset is sold. Fee based revenue is reported as services revenue, and the associated direct costs are reported as cost of services revenue. At the balance sheet date, any unsold assets which the Company owns are reported as inventory, any outstanding accounts receivable are included in the Company’s accounts receivable, and any associated liabilities are included in the Company’s accrued liabilities. Equipment inventory is expected to be sold within a year and is therefore classified as a current asset. The remaining asset sale transactions involve the Company acting jointly with one or more additional purchasers or lenders, pursuant to a partnership, joint venture or limited liability company agreement (collectively, “Joint Ventures”). Transactions in which the Company’s ownership share meets the criteria for the equity method investments under ASC Topic 323, Equity Method and Joint Ventures (“ASC 323”), are accounted for as equity method investments, and, accordingly, the Company’s proportionate share of the net income (loss) is reported as earnings of equity method investments. At each balance sheet date, the Company’s investments in these Joint Ventures are reported in the consolidated balance sheet as equity method investments. These investments are classified on the balance sheet as non-current assets due to the uncertainties relating to the timing of resale of the underlying assets as a result of the Joint Venture relationship. The Company monitors the value of the Joint Ventures’ underlying assets and liabilities and records a write down of its investments if the Company concludes that there has been a decline in the value of the net assets. As the activity of the Joint Ventures involves asset purchase/resale transactions, which is similar in nature to the Company’s other activities, the earnings (losses) of the Joint Ventures are included in the operating income in the accompanying consolidated income statements. Through HGC, a wholly owned subsidiary of HG, the Company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents with financial institutions in the United States. These accounts may from time to time exceed federally insured limits. The Company has not experienced any losses on such accounts. Accounts receivable, net The Company’s accounts receivable primarily relate to the operations of its asset liquidation business. They generally consist of three major categories: (1) fees, commissions and retainers relating to appraisals and auctions, (2) receivables from asset sales, and (3) receivables from Joint Venture partners. The initial value of an account receivable corresponds to the fair value of the underlying goods or services. To date, a majority of the receivables have been classified as current and, due to their short-term nature, any decline in fair value would be due to issues involving collectability. At each financial statement date the collectability of each outstanding account receivable is evaluated, and an allowance is recorded if the book value exceeds the amount that is deemed collectable. See Note 11 for more detail regarding the Company’s accounts receivable. Notes receivable, net The Company’s notes receivable balance consists of loans to buyers of charged-off and nonperforming receivable portfolios, which is considered the only loan category or segment to be reported under the applicable accounting guidance. These loans are measured at historical costs and reported at their outstanding principal balances net of any unamortized deferred fees and costs on originated loans. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. As of December 31, 2022, the Company has no t recorded an allowance for credit losses related to notes receivable outstanding. In order to evaluate the need for an adjustment to the receivable balance related to credit losses, or impairment, the Company performs a review of all outstanding loan receivables on a quarterly basis to determine if any indicators exist that suggest the loan will not be fully recoverable. Inventory - Equipment The Company’s inventory consists of assets acquired for resale, which are normally expected to be sold within a one-year operating cycle. All inventory is recorded at the lower of cost or net realizable value. Employee Retention Credit On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit ("ERC"), which is a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. As an employer that carried on a trade or business during calendar year 2020 and whose gross receipts were less than 80 % in relation to comparable periods in 2019, the Company is eligible for the refundable ERC under the Cares Act for the quarters ended June 30, 2021 and September 30, 2021. As the Company has incurred certain employment taxes during 2021 and have yet to receive the refundable ERC, the Company has accounted for the credit as a loss recovery under ASC Topic 410, Asset Retirement and Environmental Obligations (by analogy), which indicates that a claim for recovery should be recognized only when the claim is probable as it is defined in ASC Topic 450, Contingencies . The Company has determined that the claim is in alignment with applicable regulatory criteria, the amounts are known and realizable, and refundable ERC is probable. As of both December 31, 2022 and 2021, the Company recorded a $ 0.6 million receivable classified in other current assets on its consolidated balance sheet. Equity Method Investments As noted above, the Company conducts a portion of its business through Joint Ventures. Transactions in which the ownership share meets the criteria for the equity method investments under ASC 323 are accounted for using the equity method of accounting whereby the Company's proportionate share of the Joint Venture’s net income (loss) is reported in the consolidated income statement as earnings of equity method investments. At the balance sheet date, the Company's investments in these Joint Ventures are reported in the consolidated balance sheet as equity method investments. The Company monitors the value of each Joint Ventures’ underlying assets and liabilities, and records a write down of the investments should the Company conclude that there has been a decline in the value of the net assets. These investments have historically been classified as non-current in the Company's consolidated financial statements due to the uncertainties relating to the timing of resale of the underlying assets as a result of the Joint Venture relationship. See Note 6 for further detail. Fair value of financial instruments The fair value of financial instruments is the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. At December 31, 2022 and 2021, the carrying values of the Company’s cash and cash equivalents, accounts receivable, other assets, and accounts payable approximate fair value given the short term nature of these instruments. The Company’s notes receivable and debt obligations approximate fair value as a result of the interest rate on the receivable or debt obligation approximating prevailing market rates. There are three levels within the fair value hierarchy: Level 1 – quoted prices in active markets for identical assets or liabilities; Level 2 – significant other observable inputs; and Level 3 – significant unobservable inputs. At December 31, 2022 and 2021, the Company had no material financial instruments requiring fair value measurement on a recurring basis. Business combinations Acquisitions are accounted for under ASC Topic 805, Business Combinations (“ASC 805”), which requires that assets acquired and liabilities assumed that are deemed to be a business are recorded based on their respective acquisition date fair values. ASC 805 further requires that separately identifiable intangible assets be recorded at their acquisition date fair values and that the excess of consideration paid over the fair value of assets acquired and liabilities assumed (including identifiable intangible assets) should be recorded as goodwill. In August 2021 the Company acquired American Laboratory Trading for approximately $ 5.6 million. The Company's purchase price allocation was based on an evaluation of the appropriate fair values and represents management's best estimate. Intangible assets Intangible assets are recorded at fair value upon acquisition. Those with an estimated useful life are amortized, and those with an indefinite useful life are unamortized. Subsequent to acquisition, the Company monitors events and changes in circumstances that require an assessment of intangible asset recoverability. Indefinite-lived intangible assets are assessed at least annually to determine both if they remain indefinite-lived and if they are impaired. The Company assesses whether or not there have been any events or changes in circumstances that suggest the value of the asset may not be recoverable. Amortized intangible assets are not tested annually, but are assessed when events and changes in circumstances suggest the assets may be impaired. If an assessment determines that the carrying amount of any intangible asset is not recoverable, an impairment loss is recognized in the income statement, determined by comparing the carrying amount of the asset to its fair value. All of the Company’s identifiable intangible assets at December 31, 2022 have been acquired as part of the acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, and are discussed in more detail in Note 10. No impairment charges were necessary during 2022 and 2021. Goodwill Goodwill, which results from the difference between the purchase price and the fair value of net identifiable tangible and intangible assets acquired in a business combination, is not amortized but, in accordance with GAAP, is tested at least annually for impairment. The Company performs its annual impairment test as of October 1. In testing goodwill, the Company initially uses a qualitative approach and analyzes relevant factors to determine if events and circumstances have affected the value of the goodwill. If the result of this qualitative analysis indicates it is more likely than not that the value has been impaired, the Company then applies a quantitative approach to calculate the difference between the goodwill’s recorded value and its fair value. An impairment loss is recognized to the extent that the recorded value exceeds its fair value. Goodwill, in addition to being tested for impairment annually, is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired. All of the Company’s goodwill relates to its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, and is discussed in more detail in Note 10. Deferred income taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. In 2014, as a result of incurring losses in previous years, the Company recorded a valuation allowance against all of its net deferred tax assets. In the fourth quarter of 2022, the Company recorded a reduction to the valuation allowance resulting in a net deferred tax asset balance of approximately $ 9.4 million as it is more likely than not that a significant portion our net operating loss carryforwards will be utilized. For further discussion of our income taxes, see Note 14. Liabilities and contingencies The Company is involved from time to time in various legal matters arising out of its operations in the normal course of business. On a case by case basis, the Company evaluates the likelihood of possible outcomes for this litigation. Based on this evaluation, the Company determines whether a loss accrual is appropriate. If the likelihood of a negative outcome is probable, and the amount can be reasonably estimated, the Company accounts for the estimated loss in the current period. See Note 13 for further discussion. Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) and ASC Topic 310, Receivables (“ASC 310”). Services revenue generally consists of commissions and fees from providing auction services, appraisals, brokering of sales transactions, and secured lending. Asset sales revenue generally consists of proceeds obtained through sales of purchased assets. With the exception of revenue generated within our Specialty Lending segment, 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 consists of three reportable segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. Generally, revenue is recognized at the point in time in which the performance obligation has been satisfied and full consideration is received. 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 year ended December 31, 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 December 31, 2022, the deferred revenue balance was approximately $ 0.4 million. The deferred revenue balance is primarily related to customer deposits on asset sales within the Refurbishment & Resale segment. The Company records receivables in certain situations based on timing of payments for Auction and 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 and cash is collected. 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 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 Consolidated Balance Sheets. The Company evaluates revenue from Auction and Liquidation and Brokerage segment 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 transactions and therefore reports the revenue from transactions in which the Company acts as an agent on a net basis. The Company also earns income through transactions that involve the Company acting jointly with one or more additional purchasers or lenders, 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 Topic 323, Equity Method and Joint Ventures (“ASC 323”), the Company does not record 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. Through our Specialty Lending segment, the Company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios. The Company recognizes revenue generated by lending activity in accordance with ASC 310. 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 a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period. 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. Cost of services revenue and asset sales Cost of services revenue generally includes the direct costs associated with generating commissions and fees from the Company’s auction and appraisal services, merger and acquisition advisory services, and brokering of charged-off receivable portfolios. The Company recognizes these expenses in the period in which the revenue they relate to is recorded. Cost of asset sales generally includes the cost of purchased inventory and the related direct costs of selling inventory. The Company recognizes these expenses in the period in which title to the inventory passes to the buyer, and the buyer assumes the risk and reward of the inventory. Stock-based compensation The Company’s stock-based compensation is primarily in the form of options to purchase common shares. The grant date fair value of stock options is calculated using the Black-Scholes option pricing model. The determination of the fair value of the Company’s stock options is based on a variety of factors including, but not limited to, the price of the Company’s common stock, the expected volatility of the stock price over the expected life of the award, and expected exercise behavior. The grant date fair value of the awards is subsequently expensed over the vesting period, net of estimated forfeitures. The provisions of the Company’s stock-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the option awards as equity. See Note 17 for further discussion of the Company’s stock-based compensation. Advertising The Company expenses advertising costs in the period in which they are incurred. Advertising and promotion expense included in selling, general and administrative expense for both years ended December 31, 2022 and 2021, was $ 0.4 million. 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 which is a new impairment 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 currently expects the adoption of ASU 2016-13 will result in an adjustment to retained earnings on January 1, 2023 between $ 0.3 million and $ 0.4 million, in order to establish an expected credit loss reserve against our receivables related to loans outstanding, including those held within equity method investments. The Company is currently finalizing the execution of its implementation controls and processes, the ultimate impact of the adoption of ASU 2016-13 as of January 1, 2023 could differ from our current expectation. The expected increase is a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Business Combinations	Note 3 – Business Combinations The Company has determined that the acquisition of certain assets and liabilities of American Laboratory Trading, ("ALT") constitutes a business acquisition as defined by ASC Topic 805, Business Combinations ("ASC 805"). Accordingly, the assets acquired and liabilities assumed in the transaction were recorded at their estimated acquisition fair values, while transaction costs associated with the acquisition were expensed as incurred pursuant to the purchase method of accounting in accordance with ASC 805. The Company’s purchase price allocation was based on an evaluation of the appropriate fair values and represents management’s best estimate based on available data. Fair values are determined based on the requirements of ASC Topic 820, Fair Value Measurement (“ASC 820”). On August 23, 2021, the Company acquired (the “Transaction”) certain assets and liabilities of American Laboratory Trading pursuant to the terms and conditions of an Asset Purchase Agreement (the “Asset Purchase Agreement”), dated August 18, 2021, among the Company, American Laboratory Trading and certain individuals named therein. The aggregate purchase price paid to American Laboratory Trading was approximately $ 5.6 million, consisting of $ 2.3 million in cash, as adjusted for American Laboratory Trading's working capital, the promissory note dated August 23, 2021 of $ 2.0 million (the "ALT Note") and acquired real property of $ 1.3 million. The Asset Purchase Agreement contains customary representations and warranties and covenants by each party. The Company and ALT are obligated, subject to certain limitations, to indemnify the other under the Asset Purchase Agreement for losses arising from certain breaches of the Asset Purchase Agreement and for certain other liabilities, subject to applicable limitations set forth in the Asset Purchase Agreement. HG has guaranteed the obligations of ALT under the terms of the Asset Purchase Agreement and the ALT Note. On August 23, 2021, in connection with the Transaction, a wholly-owned subsidiary of HG (“RE Purchaser”), acquired the real property used in ALT’s business (the “Property”) pursuant to a Purchase and Sale Agreement (the “Real Estate Purchase Agreement” and together with the Purchase Agreement, the “Agreements”), dated August 18, 2021, between 12 Colton Road, LLC and RE Purchaser. The purchase price for the Property was $ 1.3 million. The Real Estate Purchase Agreement contains customary representations and warranties and covenants by each party. The parties to the Real Estate Purchase Agreement are obligated, subject to certain limitations, to indemnify the other under the Real Estate Purchase Agreement for losses arising from certain breaches of the Real Estate Purchase Agreement and other liabilities, subject to applicable limitations set forth in the Real Estate Purchase Agreement. ALT is a supplier of refurbished lab equipment and a provider of surplus asset services for the life sciences industry. The acquisition enhances the Company’s position in the biotech sector. Acquisition-related costs consisted of external fees for advisory, legal, and other professional services and totaled approximately $ 0.2 million for the year ended December 31, 2021. The major classes of assets and liabilities to which the Company has allocated the purchase price were as follows (in thousands): Accounts receivable $ 410 Inventory – equipment 498 Property, plant and equipment 1,315 Intangible assets 1,800 Goodwill 1,861 Other assets 8 Accounts payable and accrued liabilities ( 274 ) Purchase price $ 5,618 The $ 1.8 million of intangible assets are attributable to $ 1.2 million of vendor relationships that will be amortized over a period of five years and $ 0.7 million for the American Laboratory Trading trade name, which will be amortized over a period of 20 years . The excess of the consideration transferred over the fair values of assets acquired and liabilities assumed was recorded as goodwill, which was primarily attributed to increased synergies that are expected to be achieved from the acquisition. Goodwill is expected to be deductible for income tax purposes. The financial results of ALT have been included in the Company's consolidated financial statements since the date of the acquisition and have been reported as part of the Company's Industrial Assets Division under Refurbishment & Resale. Unaudited Pro Forma Financial Information The unaudited pro forma financial information presented in the table below (in thousands) is provided for illustrative purposes only and summarizes the combined results of operations of the Company and ALT. For purposes of this pro forma presentation, the acquisition of ALT is assumed to have occurred on January 1, 2021. The pro forma financial information for all periods presented also includes the estimated business combination accounting effects resulting from this acquisition, notably amortization expense from the acquired intangible assets, interest expense from the ALT Note, and certain other integration related impacts. This unaudited pro forma financial information should not be relied upon as being indicative of the historical results that would have been obtained if the acquisition had actually occurred on January 1, 2021, nor of the results of operations that may be obtained in the future. Year Ended December 31, 2021 Pro forma revenues $ 29,788 Pro forma net income $ 3,285 Pro forma net income per share - basic $ 0.09 Pro forma net income per share - diluted $ 0.09

Notes Receivable, Net

Notes Receivable, Net	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Notes Receivable, net	Note 4 – Notes Receivable, net The Company’s notes receivable balance consists its investments in loans to buyers of charged-off and nonperforming receivable portfolios, which resulted in a total balance of approximatel y $ 8.8 million, net of unamortized deferred fees and costs on originated loans. The activity during 2022 includes the additional investment in notes receivable of approximately $ 8.4 million, principal payments made by borrowers of approximately $ 3.4 million, and adjustments to the deferred fees and costs balance of approximately $ 0.4 million. The table below shows the Company’s lending activity: 2022 2021 Notes receivable, beginning of year $ 4,172 $ 2,079 Investment in notes receivable 8,435 8,039 Transfer of notes — ( 1,961 ) Principal repayments ( 3,446 ) ( 3,985 ) Notes receivable, end of year 9,161 4,172 Deferred financing fees and costs, net ( 411 ) ( 134 ) Notes receivable, net, end of year $ 8,750 $ 4,038 As of December 31, 2022 and 2021, the Company has no t recorded an allowance for credit losses related to notes receivable outstanding.

Lessor Arrangement

Lessor Arrangement	12 Months Ended
	Dec. 31, 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, which was finalized in the fourth quarter of 2018. 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 has been recognized as revenue and a lease receivable as of the effective date. The real estate portion of the arrangement is held 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 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 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	12 Months Ended
	Dec. 31, 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. In December 2022, DHC8 LLC, of which the Company holds a 13.33 % share was formed to provide funding and receive principal and interest payments as a result of the initial investment. CPFH LLC, KNFH LLC, and DHC8 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 (in thousands): Year Ended December 31, 2022 2021 Revenues: CPFH LLC $ 31,072 $ 473 KNFH LLC 22,183 — DHC8 LLC — — HGC Funding I LLC and Origination I LLC 2,665 238 Total revenues $ 55,920 $ 711 Operating (loss) income: CPFH LLC $ 15,357 $ ( 548 ) KNFH LLC 9,930 — DHC8 LLC — — HGC Funding I LLC and Origination I LLC 2,645 212 Total operating (loss) income $ 27,932 $ ( 336 ) The table below details the summarized components of assets and liabilities of the Company’s joint ventures (in thousands): December 31, December 31, 2022 2021 Assets: CPFH LLC — 11,789 KNFH LLC — — DHC8 LLC 8,561 — HGC Funding I LLC and Origination I LLC 53,385 10,476 Total assets $ 61,946 $ 22,265 Liabilities: CPFH LLC — 6,099 KNFH LLC 47 — DHC8 LLC 1,028 — HGC Funding I LLC and Origination I LLC 1,504 — Total liabilities $ 2,579 $ 6,099

Earnings per Share

Earnings per Share	12 Months Ended
	Dec. 31, 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 stock, 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 2022 and 2021, the earnings allocated to the preferred shares outstanding were 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: Year Ended December 31, Weighted Average Shares Calculation: 2022 2021 Basic weighted average shares outstanding 36,016,619 35,458,938 Treasury stock effect of common stock options and restricted stock awards 1,080,651 1,442,452 Diluted weighted average common shares outstanding 37,097,270 36,901,390 For 2022 and 2021 there were potential common shares totaling approximately 0.8 million and 0.3 million, respectively, that were excluded from the computation of diluted EPS as the inclusion of such shares would have been anti-dilutive.

Leases

Leases	12 Months Ended
	Dec. 31, 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 criteria for financing lease classification, the Company has determined that each lease arrangement should be classified as an operating lease. 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): December 31, December 31, Right-of-use assets: 2022 2021 Del Mar, CA $ 336 $ 477 Hayward, CA 1,800 2,064 San Diego, CA 590 — Edwardsville, IL 50 153 Total right-of-use assets $ 2,776 $ 2,694 December 31, December 31, Lease liabilities: 2022 2021 Del Mar, CA $ 360 $ 506 Hayward, CA 1,852 2,089 San Diego, CA 605 — Edwardsville, IL 50 155 Total lease liabilities $ 2,867 $ 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. The weighted average remaining lease term for operating leases is 5.0 years and the weighted average discount rate is 5.1 %. Lease expense for leases determined to be operating leases is recognized on a straight-line basis over the lease term. For 2022 and 2021, lease expense was approximately $ 0.7 million and $ 0.5 million respectively. The lease expense for each location are as follows (in thousands): December 31, December 31, 2022 2021 Del Mar, CA $ 163 $ 163 Hayward, CA 361 271 San Diego, CA 48 — Edwardsville, IL 109 109 Total $ 681 $ 543 As of December 31, 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): 2023 $ 704 2024 674 2025 546 2026 531 2027 496 Thereafter 312 Total undiscounted future minimum lease payments 3,263 Less imputed interest ( 396 ) Present value of lease liabilities $ 2,867

Property and Equipment, net

Property and Equipment, net	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment, net	Note 9 – Property and Equipment, net Property and equipment are recorded at historical cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives on a straight-line basis. The life of the building acquired in connection of the ALT purchase transaction was determined to be 25 years. Leasehold improvements are amortized over the useful life of the asset or the lease term, whichever is shorter. Estimated service lives are five years for furniture, fixtures and office equipment and three years for software and technology assets. Expenditures for repairs and maintenance not considered to substantially lengthen the life of the asset or increase capacity or efficiency are charged to expense as incurred. The following summarizes the components of the Company’s property and equipment (in thousands): December 31, 2022 December 31, 2021 Building $ 985 $ 985 Land 397 397 Furniture, fixtures and office equipment 223 97 Software and technology assets 173 84 Vehicles 11 11 1,789 1,574 Accumulated depreciation ( 218 ) ( 103 ) Property and equipment, net $ 1,571 $ 1,471 Depreciation expense related to property and equipment was $ 0.1 million for both the years ended December 31, 2022 and 2021.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Note 10 – Intangible Assets and Goodwill Intangible assets The details of identifiable intangible assets as of December 31, 2022 and 2021 are shown below (in thousands except for lives): Original Remaining Carrying Value Carrying Value Life Life December 31, Intangible Assets December 31, Amortized Intangible Assets (years) (years) 2021 Acquired Amortization 2022 Customer Relationships (HGP) 12 — $ 30 $ — $ ( 30 ) $ — Trade Name (HGP) 14 2.0 386 — ( 129 ) 257 Trade Name (ALT) 20 18.7 639 — ( 33 ) 607 Vendor Relationship (ALT) 5 3.7 1,073 — ( 230 ) 843 Total 2,128 — ( 422 ) 1,707 Unamortized Intangible Assets Trade Name (NLEX) N/A N/A 2,437 — — 2,437 Total $ 4,565 $ — $ ( 422 ) $ 4,144 Original Remaining Carrying Value Carrying Value Life Life December 31, Intangible Assets December 31, Amortized Intangible Assets (years) (years) 2020 Acquired Amortization 2021 Customer Relationships (HGP) 12 1.0 $ 62 $ — $ ( 32 ) $ 30 Trade Name (HGP) 14 3.0 513 — ( 128 ) 386 Customer Relationships (NLEX) 7.6 — 111 — ( 110 ) — Trade Name (ALT) 20 19.7 — 650 ( 11 ) 639 Vendor Relationship (ALT) 5 4.7 — 1,150 ( 77 ) 1,073 Total 686 1,800 ( 358 ) 2,128 Unamortized Intangible Assets Trade Name (NLEX) N/A N/A 2,437 — — 2,437 Total $ 3,123 $ 1,800 $ ( 358 ) $ 4,565 Amortization expense during each of 2022 and 2021 was $ 0.4 million. No significant residual value is estimated for these intangible assets. The estimated amortization expense during future years is shown below (in thousands): Year Amount 2023 $ 391 2024 391 2025 263 2026 186 2027 32 Thereafter 444 Total $ 1,707 Goodwill Goodwill consisted of the following at December 31, 2022 and 2021 (in thousands): Acquisition December 31, 2022 December 31, 2021 ALT $ 1,861 $ 1,861 HGP 2,041 2,041 NLEX 3,544 3,544 Total goodwill $ 7,446 $ 7,446 The Company performed its annual impairment test for the year ended December 31, 2022 and 2021, and determined that no additional impairment charges were necessary.

Accounts Receivable and Account

Accounts Receivable and Accounts Payable	12 Months Ended
	Dec. 31, 2022
Accounts Receivable And Accounts Payable [Abstract]
Accounts Receivable and Accounts Payable	Note 11 – Accounts Receivable and Accounts Payable Accounts receivable, net As described in Note 2, the Company’s accounts receivable are primarily related to the operations of its business. With respect to auction proceeds and asset dispositions, including NLEX’s brokerage transactions, the assets are not released to the buyer until payment has been received. The Company, therefore, is not exposed to significant collectability risk relating to these receivables. Given this experience, together with the ongoing business relationships between the Company and its joint venture partners, the Company has not historically required a formal credit quality assessment in connection with these activities. The Company has not experienced any significant collectability issues with its accounts receivable. As the Company’s business expands, more comprehensive credit assessments may be required. The Company's allowance for doubtful accounts was approximately $ 0.1 million as of December 31, 2022 and 2021. Accounts payable and accrued liabilities Accounts payable and accrued liabilities consisted of the following, (in thousands): 2022 2021 Remuneration and benefits 4,660 1,904 Accrued auction and liquidation expenses 2,573 1,327 Due to Joint Venture partners 793 402 Deferred Revenue 279 407 Sales and other taxes 220 177 Accounting, auditing and tax consulting 204 184 Other 195 392 Total accounts payable and accrued liabilities $ 8,924 $ 4,793

Debt

Debt	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Debt	Note 12 – Debt Outstanding debt is summarized as follows (in thousands): December 31, 2022 December 31, 2021 Current: Third party debt $ 3,411 $ 2,479 Non-current: Third party debt 871 1,352 Total third party debt $ 4,282 $ 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 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. As of December 31, 2022 the Company had an outstanding balance of $2.9 million. 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 December 31, 2022 was $ 1.4 million.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 13 – Commitments and Contingencies At December 31, 2022 HG does not expect any potential contingent liabilities, individually or in the aggregate, to have a material adverse effect on its assets or results of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 14 – Income Taxes In 2014 the Company recorded a valuation allowance against its deferred tax assets, reducing the carrying value of those assets to zero as a result of historical losses. The following table summarizes the change in the valuation allowance during 2021 and 2022, (in thousands): Balance as of December 31, 2020 $ 13,097 Change during 2021 ( 855 ) Balance as of December 31, 2021 12,242 Change during 2022 ( 7,813 ) Balance as of December 31, 2022 $ 4,429 As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. At December 31, 2021, no additional reduction of the valuation allowance was determined necessary related to the potential utilization of net operating loss carryforwards in future periods, however a reduction of the valuation allowance was made related to the potential realization of certain state net operating loss carryforwards. At December 31, 2022, and due primarily to the performance of the Company, management determined that there is sufficient positive evidence to conclude that is it more likely than not that additional deferred taxes of $ 7.1 million are realizable. The Company therefore reduced the valuation allowance accordingly. At December 31, 2022, the Company has aggregate federal net operating loss carry forwards of $ 64.9 million ($ 61.6 million of unrestricted net operating tax losses and $ 3.3 million of restricted net operating tax losses). These net operating loss carry forwards begin to expire in 2024. 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. These rules, in general, provide that an ownership change occurs when the percentage shareholdings of 5% direct or indirect stockholders of a loss corporation have, in aggregate, increased by more than 50 percentage points during the immediately preceding three years. Restrictions in net operating loss carry forwards occurred in 2001 as a result of the acquisition of the Company by Street Capital. Pursuant to Section 382 of the Internal Revenue Code, the annual usage of the Company’s net operating loss carry forwards was limited to approximately $2.5 million per annum until 2008 and $1.7 million per annum thereafter. There is no certainty that the application of these “change in ownership” rules may not recur, resulting in further restrictions on the Company’s income tax loss carry forwards existing at a particular time. In addition, further restrictions, reductions in, or expiration of net operating loss and net capital loss carry forwards may occur through future merger, acquisition and/or disposition transactions or failure to continue a significant level of business activities. Any such additional limitations could require the Company to pay income taxes on its future earnings and record an income tax expense to the extent of such liability, despite the existence of such tax loss carry forwards. All loss taxation years remain open for audit pending the application of the respective tax losses against income in a subsequent taxation year. In general, the statute of limitations expires three years from the date that a company files a tax return applying prior year tax loss carry forwards against income for tax purposes in the later year. The 2019 through 2021 taxation years remain open for audit. The Company is subject to state income tax in multiple jurisdictions. In most states, the Company does not have tax loss carry forwards available to shield income attributable to a particular state from being subject to tax in that particular state. 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 before income tax expense for the following reasons in each of the years ended December 31, (in thousands): 2022 2021 Expected federal statutory tax expense $ 2,311 $ 628 Increase (reduction) in taxes resulting from: State income taxes 470 43 Non-deductible expenses (permanent differences) ( 179 ) ( 707 ) Change in valuation allowance ( 7,813 ) ( 855 ) Other 725 830 Income tax benefit $ ( 4,486 ) $ ( 61 ) The components of the net deferred tax assets as of December 31, 2022 and 2021 are as follows in (thousands): 2022 2021 Deferred tax assets: Net operating loss carry forwards $ 14,097 $ 16,824 Stock based compensation 317 1,095 Operating lease liabilities 742 719 Other 280 262 Total gross deferred tax assets 15,436 18,900 Deferred tax liabilities: Trade names ( 686 ) ( 734 ) Customer relationships ( 27 ) ( 7 ) Equity method investments — ( 479 ) Operating lease right-of-use assets ( 718 ) ( 704 ) Other ( 127 ) ( 246 ) Total gross deferred tax liabilities ( 1,558 ) ( 2,170 ) Total deferred tax assets 13,878 16,730 Less: valuation allowance ( 4,429 ) ( 12,242 ) Deferred tax assets, net of valuation allowance $ 9,449 $ 4,488 The Inflation Reduction Act (“IRA”) was enacted on August 16, 2022. The company does not expect the IRA will have a material impact to the Company’s financial statements when it becomes effective for the tax years after December 31, 2022. Uncertain Tax Positions The accounting for uncertainty in income taxes requires a more-likely-than-not threshold for financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. Upon adoption of this principle in 2007, the Company derecognized certain tax positions that, upon examination, more likely than not would not have been sustained as a recognized tax benefit. As a result of derecognizing uncertain tax positions, the Company has recorded a cumulative reduction in its deferred tax assets of approximately $ 4.4 million associated with prior years’ tax benefits, which are not expected to be available primarily due to change of control usage restrictions, and a reduction in the rate of the tax benefit associated with all of its tax attributes. Due to the Company’s historic policy of applying a valuation allowance against its deferred tax assets, the effect of the above was an offsetting reduction in the Company’s valuation allowance. Accordingly, the above reduction had no net impact on the Company’s financial position, operations or cash flow. As of December 31, 2022, the total unrecognized tax benefit has been determined to be $ 4.4 million. In the unlikely event that these tax benefits are recognized in the future, the amount recognized at that time should result in a reduction in the Company’s effective tax rate. The Company’s policy is to recognize accrued interest and penalties related to unrecognized tax benefits in income tax expense. Because the Company has tax loss carry forwards in excess of the unrecognized tax benefits, the Company did not accrue for interest and penalties related to unrecognized tax benefits either upon the initial derecognition of uncertain tax positions or in the current period. It is possible that the total amount of the Company’s unrecognized tax benefits will significantly increase or decrease within the next 12 months. These changes may be the result of future audits, the application of “change in ownership” rules leading to further restrictions in tax losses arising from changes in the capital structure of the Company, reductions in available tax loss carry forwards through future merger, acquisition and/or disposition transactions, failure to continue a significant level of business activities, or other circumstances not known to management at this time. At this time, an estimate of the range of reasonably possible outcomes cannot be made.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Note 15 – Related Party Transactions As part of the operations of NLEX, the Company leases office space in Edwardsville, IL that is owned by the President of NLEX, David Ludwig. The total amount paid to the related party was approximately $ 0.1 million for both years ended December 31, 2022 and 2021, and is included in selling, general and administrative expenses in the consolidated income statement. All of the payments in both 2022 and 2021 were made to David Ludwig.

Legal Proceedings

Legal Proceedings	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	Note 16 – Legal Proceedings The Company is involved in various legal matters arising out of its operations in the normal course of business, none of which are expected, individually or in the aggregate, to have a material adverse effect on the Company.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Stockholders' Equity	Note 17 – Stockholders’ Equity Capital Stock The Company’s authorized capital stock consists of 300,000,000 common shares with a par value of $ 0.01 per share and 10,000,000 preferred shares with a par value of $ 10.00 per share. During 2022 and 2021 the Company issued 242,475 and 1,268,399 shares of common stock, respectively, pursuant to the exercise of stock options. 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 and there was no remaining unrecognized stock-based compensation expense as of December 31, 2022. Each share of Series N preferred stock has a voting entitlement equal to 40 common shares, votes with the common stock on an as-converted basis and is senior to all other preferred stock of the Company. Dividends, if any, will be paid on an as-converted basis equal to common stock dividends. The conversion value of each share of Series N preferred stock is $ 1,000 , and each share is convertible to 40 common shares at the rate of $ 25.00 per common share. The holders of shares of Series N preferred stock are entitled to liquidation preference over common stockholders equivalent to $ 1,000 per share. During 2021, three shares of the Company’s Series N preferred stock were converted into 120 shares of the Company’s common stock. No shares of the Company’s Series N preferred stock were converted during 2022. Stock-Based Compensation Plans At December 31, 2022, the Company had four active stock-based compensation plans which are described below. The fourth of these plans received approval at the Company’s 2022 Annual Meeting of Shareholders, and replaces the 2016 Plan for awards made after June 8, 2022. 2010 Non-Qualified Stock Option Plan In 2010, the Company’s Board approved the 2010 Non-Qualified Stock Option Plan (the “2010 Plan”) to induce certain key employees of the Company or any of its subsidiaries who are in a position to contribute materially to the Company’s prosperity to remain with the Company, to offer such persons incentives and rewards in recognition of their contributions to the Company’s progress, and to encourage such persons to continue to promote the best interests of the Company. The Company reserved 1,250,000 shares of common stock (subject to adjustment under certain circumstances) for issuance or transfer upon exercise of options granted under the 2010 Plan. Options may be issued under the 2010 Plan to any key employees or consultants selected by the Company’s Board (or an appropriately qualified committee). Options may not be granted with an exercise price less than the fair market value of the common stock of the Company as of the day of the grant. Options granted pursuant to the plan are subject to limitations on transfer and execution and may be issued subject to vesting conditions. Options may also be forfeited in certain circumstances. During 2022 and 2021 options to purchase 100,000 and 50,000 shares respectively were granted to the Company’s executive and independent directors as part of their annual compensation. 2010 Plan 2022 2021 Options outstanding, beginning of year 331,250 1,100,000 Options granted 100,000 50,000 Options exercised ( 147,500 ) ( 793,750 ) Options forfeited ( 40,000 ) ( 25,000 ) Options outstanding, end of year 243,750 331,250 The outstanding options vest over four years at exercise prices ranging from $ 0.40 to $ 2.77 per share. Other Options Issued In 2021, the Company’s Board approved the issuance of options to purchase 150,000 shares at an exercise price of $ 1.78 to certain accredited personnel. In 2020, the Company’s Board approved the issuance of options to purchase 90,000 shares at an exercise price of $ 1.41 to certain accredited personnel. Shares issued upon exercise of these options are not registered for public sale. No awards under this plan were granted during 2022. Other Options 2022 2021 Options outstanding, beginning of year 404,375 344,375 Options issued — 150,000 Options exercised ( 21,250 ) ( 22,500 ) Options forfeited — ( 67,500 ) Options outstanding, end of year 383,125 404,375 The outstanding options vest over four years at exercise prices ranging from $0.70 to $1.78 per share. Heritage Global Inc. 2016 Stock Option Plan In 2016, the Company adopted the Heritage Global Inc. 2016 Stock Option Plan (the “2016 Plan”) which provided for the issuance of incentive stock options and non-qualified stock options up to an aggregate of 3,150,000 shares of common stock (subject to adjustment in the event of stock dividends, stock splits, and other similar events). Options may not be granted with an exercise price less than the fair market value of the common stock of the Company as of the day of the grant. Options granted pursuant to the plan are subject to limitations on transfer and execution and may be issued subject to vesting conditions. Options may also be forfeited in certain circumstances. On June 8, 2022 the 2016 plan was replaced by the 2022 Heritage Global Inc. Equity Incentive Plan. 2016 Plan 2022 2021 Options outstanding, beginning of year 1,457,663 2,071,850 Options granted 35,000 522,500 Options exercised ( 170,375 ) ( 1,079,187 ) Options forfeited ( 66,313 ) ( 57,500 ) Options outstanding, end of year 1,255,975 1,457,663 The outstanding options under the 2016 Plan vest over four years at exercise prices ranging from $ 0.45 to $ 3.33 per share. 2022 Heritage Global Inc. Equity Incentive Plan In 2022, 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 December 31, 2022, the Company issued options to purchase 144,500 shares of common stock to certain of the Company's employees under this plan. 2022 Plan 2022 Options outstanding, beginning of year — Options granted 144,500 Options outstanding, end of year 144,500 The outstanding options under the 2022 Plan vest over four years at exercise prices ranging from $ 1.60 to $ 1.87 per share. Stock-Based Compensation Expense Total compensation cost related to stock options in both 2022 and 2021 was $ 0.4 million. These amounts were recorded in selling, general and administrative expense in both years. During 2022 and 2021, options to purchase 339,125 and 1,895,437 shares were exercised, respectively. The tax benefit recognized by the Company related to these option exercises was approximately $ 0.5 million in 2022, as compared to $ 1.0 million recognized in 2021. In connection with the stock option grants during 2022 and 2021, the fair value of each option grant was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions: 2022 2021 Risk-free interest rate 2 % - 3 % 0 % - 1 % Expected life (years) 6 6.6 Expected volatility 70 % 80 % Expected dividend yield Zero Zero The risk-free interest rates are those for U.S. Treasury constant maturities for terms matching the expected term of the option. The expected life of the options is calculated according to the simplified method for estimating the expected term of the options, based on the vesting period and contractual term of each option grant. Expected volatility is based on the Company’s historical volatility. The Company has never paid a dividend on its common stock and therefore the expected dividend yield is zero. The following summarizes the changes in common stock options: 2022 2021 Options Weighted Options Weighted Outstanding at beginning of year 2,193,288 $ 1.23 3,516,225 $ 0.63 Granted 279,500 $ 1.62 722,500 $ 2.28 Exercised ( 339,125 ) $ 0.50 ( 1,895,437 ) $ 0.48 Forfeited ( 106,313 ) $ 1.79 ( 150,000 ) $ 1.61 Outstanding at end of year 2,027,350 $ 1.38 2,193,288 $ 1.23 Options exercisable at year end 1,023,975 $ 0.97 978,350 $ 0.60 Weighted-average fair value of options granted $ 1.62 $ 1.59 As of December 31, 2022, the Company had unvested options for the purchase of 1,003,375 shares with a weighted average grant date fair value of $ 1.80 per share. As of December 31, 2021, the Company had unvested options for the purchase of 1,214,938 shares with a weighted average grant date fair value of $ 0.96 per share. As of December 31, 2022, the total unrecognized stock-based compensation expense related to unvested stock options was $ 1.0 million, which is expected to be recognized over a weighted-average period of 2.6 years. The total fair value of options vesting during both 2022 and 2021 was $ 0.4 million and $ 0.2 million, respectively. The unvested options have no associated performance conditions. In general, the Company’s employee turnover is low, and the Company expects that the majority of the unvested options will vest according to the standard four-year timetable. The following table summarizes information about all stock options outstanding as of December 31, 2022: Exercise price Options Weighted (years) Weighted Number Weighted Weighted $ 0.40 to $ 0.53 503,100 4.4 $ 0.45 495,600 4.3 $ 0.45 $ 0.70 to $ 0.95 354,875 6.8 $ 0.79 240,125 6.8 $ 0.79 $ 1.37 to $ 1.90 877,500 8.7 $ 1.66 196,375 8.2 $ 1.63 $ 2.77 to $ 3.33 291,875 8.4 $ 2.85 91,875 8.3 $ 2.84 2,027,350 1,023,975 At December 31, 2022 and 2021, the aggregate intrinsic value of exercisable options was $ 1.5 million and $ 1.3 million, respectively. 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 $ 51,600 for the year ended December 31, 2022. The unrecognized stock-based compensation expense as of December 31, 2022 was approximately $ 21,500 . 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 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 $ 124,600 for the year ended December 31, 2022. The unrecognized stock-based compensation expense as of December 31, 2022, was approximately $ 44,000 .

Segment Information

Segment Information	12 Months Ended
	Dec. 31, 2022
Segment Reporting Information, Additional Information [Abstract]
Segment Information	Note 18 – 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 Auction and Liquidation segment, Refurbishment & Resale segment, Brokerage segment, and Specialty Lending segment. The Auction and Liquidation segment, through HGP, operates as a global full-service auction, appraisal and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment. The Refurbishment & Resale segment, through ALT, acquires, refurbishes and supplies specialized laboratory equipment. The Brokerage segment, through NLEX, brokers charged-off receivables in the U.S. and Canada on behalf of financial institutions. The Specialty Lending segment, through HGC, provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios. The Company evaluates the performance of its reportable segments based primarily on operating income. Notwithstanding the foregoing, the reported segment operating income for ALT and HGC represents incremental costs for managing these segments as part of their sister segments (HGP for ALT and NLEX for HGC). As such, the reported operating income for ALT and HGC does not represent their true standalone contribution, as the Company does not attempt to allocate existing fixed divisional overhead costs of the sister divisions to the newer segments. Similarly, corporate overhead cost is not allocated to the operating divisions for management reporting purposes. 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 operating income information for the Company's reportable segments (in thousands): Year Ended December 31, 2022 2021 Industrial Assets Division: Auction and Liquidation $ 7,979 $ 3,467 Refurbishment & Resale 1,187 ( 41 ) Total divisional operating income 9,166 3,426 Financial Assets Division: Brokerage 4,709 1,731 Specialty Lending 1,213 293 Total divisional operating income 5,922 2,024 Corporate & other operating loss ( 3,968 ) ( 2,436 ) Consolidated operating income $ 11,120 $ 3,014

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 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.
Nature of Business	Nature of Business The Company earns revenue both from commission or fee-based services, and from the sale of distressed or surplus assets. With respect to the former, revenue is recognized as the services are provided. With respect to the latter, the majority of the asset sale transactions are conducted directly by the Company and the revenue is recognized in the period in which the asset is sold. Fee based revenue is reported as services revenue, and the associated direct costs are reported as cost of services revenue. At the balance sheet date, any unsold assets which the Company owns are reported as inventory, any outstanding accounts receivable are included in the Company’s accounts receivable, and any associated liabilities are included in the Company’s accrued liabilities. Equipment inventory is expected to be sold within a year and is therefore classified as a current asset. The remaining asset sale transactions involve the Company acting jointly with one or more additional purchasers or lenders, pursuant to a partnership, joint venture or limited liability company agreement (collectively, “Joint Ventures”). Transactions in which the Company’s ownership share meets the criteria for the equity method investments under ASC Topic 323, Equity Method and Joint Ventures (“ASC 323”), are accounted for as equity method investments, and, accordingly, the Company’s proportionate share of the net income (loss) is reported as earnings of equity method investments. At each balance sheet date, the Company’s investments in these Joint Ventures are reported in the consolidated balance sheet as equity method investments. These investments are classified on the balance sheet as non-current assets due to the uncertainties relating to the timing of resale of the underlying assets as a result of the Joint Venture relationship. The Company monitors the value of the Joint Ventures’ underlying assets and liabilities and records a write down of its investments if the Company concludes that there has been a decline in the value of the net assets. As the activity of the Joint Ventures involves asset purchase/resale transactions, which is similar in nature to the Company’s other activities, the earnings (losses) of the Joint Ventures are included in the operating income in the accompanying consolidated income statements. Through HGC, a wholly owned subsidiary of HG, the Company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios.
Cash and cash equivalents	Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents with financial institutions in the United States. These accounts may from time to time exceed federally insured limits. The Company has not experienced any losses on such accounts.
Accounts receivable, net	Accounts receivable, net The Company’s accounts receivable primarily relate to the operations of its asset liquidation business. They generally consist of three major categories: (1) fees, commissions and retainers relating to appraisals and auctions, (2) receivables from asset sales, and (3) receivables from Joint Venture partners. The initial value of an account receivable corresponds to the fair value of the underlying goods or services. To date, a majority of the receivables have been classified as current and, due to their short-term nature, any decline in fair value would be due to issues involving collectability. At each financial statement date the collectability of each outstanding account receivable is evaluated, and an allowance is recorded if the book value exceeds the amount that is deemed collectable. See Note 11 for more detail regarding the Company’s accounts receivable.
Notes receivable, net	Notes receivable, net The Company’s notes receivable balance consists of loans to buyers of charged-off and nonperforming receivable portfolios, which is considered the only loan category or segment to be reported under the applicable accounting guidance. These loans are measured at historical costs and reported at their outstanding principal balances net of any unamortized deferred fees and costs on originated loans. Loan origination fees and certain direct origination costs are deferred and recognized as adjustments to interest income over the lives of the related loans. As of December 31, 2022, the Company has no t recorded an allowance for credit losses related to notes receivable outstanding. In order to evaluate the need for an adjustment to the receivable balance related to credit losses, or impairment, the Company performs a review of all outstanding loan receivables on a quarterly basis to determine if any indicators exist that suggest the loan will not be fully recoverable.
Inventory - Equipment	Inventory - Equipment The Company’s inventory consists of assets acquired for resale, which are normally expected to be sold within a one-year operating cycle. All inventory is recorded at the lower of cost or net realizable value.
Employee Retention Credit	Employee Retention Credit On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law providing numerous tax provisions and other stimulus measures, including the Employee Retention Credit ("ERC"), which is a refundable tax credit against certain employment taxes. The Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the American Rescue Plan Act of 2021 extended and expanded the availability of the ERC. As an employer that carried on a trade or business during calendar year 2020 and whose gross receipts were less than 80 % in relation to comparable periods in 2019, the Company is eligible for the refundable ERC under the Cares Act for the quarters ended June 30, 2021 and September 30, 2021. As the Company has incurred certain employment taxes during 2021 and have yet to receive the refundable ERC, the Company has accounted for the credit as a loss recovery under ASC Topic 410, Asset Retirement and Environmental Obligations (by analogy), which indicates that a claim for recovery should be recognized only when the claim is probable as it is defined in ASC Topic 450, Contingencies . The Company has determined that the claim is in alignment with applicable regulatory criteria, the amounts are known and realizable, and refundable ERC is probable. As of both December 31, 2022 and 2021, the Company recorded a $ 0.6 million receivable classified in other current assets on its consolidated balance sheet.
Equity Method Investments	Equity Method Investments As noted above, the Company conducts a portion of its business through Joint Ventures. Transactions in which the ownership share meets the criteria for the equity method investments under ASC 323 are accounted for using the equity method of accounting whereby the Company's proportionate share of the Joint Venture’s net income (loss) is reported in the consolidated income statement as earnings of equity method investments. At the balance sheet date, the Company's investments in these Joint Ventures are reported in the consolidated balance sheet as equity method investments. The Company monitors the value of each Joint Ventures’ underlying assets and liabilities, and records a write down of the investments should the Company conclude that there has been a decline in the value of the net assets. These investments have historically been classified as non-current in the Company's consolidated financial statements due to the uncertainties relating to the timing of resale of the underlying assets as a result of the Joint Venture relationship. See Note 6 for further detail.
Fair value of financial instruments	Fair value of financial instruments The fair value of financial instruments is the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. At December 31, 2022 and 2021, the carrying values of the Company’s cash and cash equivalents, accounts receivable, other assets, and accounts payable approximate fair value given the short term nature of these instruments. The Company’s notes receivable and debt obligations approximate fair value as a result of the interest rate on the receivable or debt obligation approximating prevailing market rates. There are three levels within the fair value hierarchy: Level 1 – quoted prices in active markets for identical assets or liabilities; Level 2 – significant other observable inputs; and Level 3 – significant unobservable inputs. At December 31, 2022 and 2021, the Company had no material financial instruments requiring fair value measurement on a recurring basis.
Business combinations	Business combinations Acquisitions are accounted for under ASC Topic 805, Business Combinations (“ASC 805”), which requires that assets acquired and liabilities assumed that are deemed to be a business are recorded based on their respective acquisition date fair values. ASC 805 further requires that separately identifiable intangible assets be recorded at their acquisition date fair values and that the excess of consideration paid over the fair value of assets acquired and liabilities assumed (including identifiable intangible assets) should be recorded as goodwill. In August 2021 the Company acquired American Laboratory Trading for approximately $ 5.6 million. The Company's purchase price allocation was based on an evaluation of the appropriate fair values and represents management's best estimate.
Intangible assets	Intangible assets Intangible assets are recorded at fair value upon acquisition. Those with an estimated useful life are amortized, and those with an indefinite useful life are unamortized. Subsequent to acquisition, the Company monitors events and changes in circumstances that require an assessment of intangible asset recoverability. Indefinite-lived intangible assets are assessed at least annually to determine both if they remain indefinite-lived and if they are impaired. The Company assesses whether or not there have been any events or changes in circumstances that suggest the value of the asset may not be recoverable. Amortized intangible assets are not tested annually, but are assessed when events and changes in circumstances suggest the assets may be impaired. If an assessment determines that the carrying amount of any intangible asset is not recoverable, an impairment loss is recognized in the income statement, determined by comparing the carrying amount of the asset to its fair value. All of the Company’s identifiable intangible assets at December 31, 2022 have been acquired as part of the acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, and are discussed in more detail in Note 10. No impairment charges were necessary during 2022 and 2021.
Goodwill	Goodwill Goodwill, which results from the difference between the purchase price and the fair value of net identifiable tangible and intangible assets acquired in a business combination, is not amortized but, in accordance with GAAP, is tested at least annually for impairment. The Company performs its annual impairment test as of October 1. In testing goodwill, the Company initially uses a qualitative approach and analyzes relevant factors to determine if events and circumstances have affected the value of the goodwill. If the result of this qualitative analysis indicates it is more likely than not that the value has been impaired, the Company then applies a quantitative approach to calculate the difference between the goodwill’s recorded value and its fair value. An impairment loss is recognized to the extent that the recorded value exceeds its fair value. Goodwill, in addition to being tested for impairment annually, is tested for impairment at interim periods if an event occurs or circumstances change such that it is more likely than not that the carrying amount of goodwill may be impaired. All of the Company’s goodwill relates to its acquisitions of HGP in 2012, NLEX in 2014 and ALT in 2021, and is discussed in more detail in Note 10.
Deferred income taxes	Deferred income taxes The Company recognizes deferred tax assets and liabilities for temporary differences between the tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted tax rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. In 2014, as a result of incurring losses in previous years, the Company recorded a valuation allowance against all of its net deferred tax assets. In the fourth quarter of 2022, the Company recorded a reduction to the valuation allowance resulting in a net deferred tax asset balance of approximately $ 9.4 million as it is more likely than not that a significant portion our net operating loss carryforwards will be utilized. For further discussion of our income taxes, see Note 14.
Liabilities and contingencies	Liabilities and contingencies The Company is involved from time to time in various legal matters arising out of its operations in the normal course of business. On a case by case basis, the Company evaluates the likelihood of possible outcomes for this litigation. Based on this evaluation, the Company determines whether a loss accrual is appropriate. If the likelihood of a negative outcome is probable, and the amount can be reasonably estimated, the Company accounts for the estimated loss in the current period. See Note 13 for further discussion.
Revenue Recognition	Revenue recognition The Company recognizes revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”) and ASC Topic 310, Receivables (“ASC 310”). Services revenue generally consists of commissions and fees from providing auction services, appraisals, brokering of sales transactions, and secured lending. Asset sales revenue generally consists of proceeds obtained through sales of purchased assets. With the exception of revenue generated within our Specialty Lending segment, 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 consists of three reportable segments: Auction and Liquidation, Refurbishment & Resale, and Brokerage. Generally, revenue is recognized at the point in time in which the performance obligation has been satisfied and full consideration is received. 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 year ended December 31, 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 December 31, 2022, the deferred revenue balance was approximately $ 0.4 million. The deferred revenue balance is primarily related to customer deposits on asset sales within the Refurbishment & Resale segment. The Company records receivables in certain situations based on timing of payments for Auction and 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 and cash is collected. 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 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 Consolidated Balance Sheets. The Company evaluates revenue from Auction and Liquidation and Brokerage segment 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 transactions and therefore reports the revenue from transactions in which the Company acts as an agent on a net basis. The Company also earns income through transactions that involve the Company acting jointly with one or more additional purchasers or lenders, 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 Topic 323, Equity Method and Joint Ventures (“ASC 323”), the Company does not record 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. Through our Specialty Lending segment, the Company provides specialty financing solutions to investors in charged-off and nonperforming asset portfolios. The Company recognizes revenue generated by lending activity in accordance with ASC 310. 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 a periodic interest cost (including amortization) that will represent a level effective rate on the sum of the face amount of the debt and (plus or minus) the unamortized premium or discount and expense at the beginning of each period. 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. Cost of services revenue and asset sales Cost of services revenue generally includes the direct costs associated with generating commissions and fees from the Company’s auction and appraisal services, merger and acquisition advisory services, and brokering of charged-off receivable portfolios. The Company recognizes these expenses in the period in which the revenue they relate to is recorded. Cost of asset sales generally includes the cost of purchased inventory and the related direct costs of selling inventory. The Company recognizes these expenses in the period in which title to the inventory passes to the buyer, and the buyer assumes the risk and reward of the inventory.
Stock-based compensation	Stock-based compensation The Company’s stock-based compensation is primarily in the form of options to purchase common shares. The grant date fair value of stock options is calculated using the Black-Scholes option pricing model. The determination of the fair value of the Company’s stock options is based on a variety of factors including, but not limited to, the price of the Company’s common stock, the expected volatility of the stock price over the expected life of the award, and expected exercise behavior. The grant date fair value of the awards is subsequently expensed over the vesting period, net of estimated forfeitures. The provisions of the Company’s stock-based compensation plans do not require the Company to settle any options by transferring cash or other assets, and therefore the Company classifies the option awards as equity. See Note 17 for further discussion of the Company’s stock-based compensation.
Advertising	Advertising The Company expenses advertising costs in the period in which they are incurred. Advertising and promotion expense included in selling, general and administrative expense for both years ended December 31, 2022 and 2021, was $ 0.4 million.
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 which is a new impairment 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 currently expects the adoption of ASU 2016-13 will result in an adjustment to retained earnings on January 1, 2023 between $ 0.3 million and $ 0.4 million, in order to establish an expected credit loss reserve against our receivables related to loans outstanding, including those held within equity method investments. The Company is currently finalizing the execution of its implementation controls and processes, the ultimate impact of the adoption of ASU 2016-13 as of January 1, 2023 could differ from our current expectation. The expected increase is a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio.

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2022
Business Combinations [Abstract]
Schedule of Major Classes of Assets and Liabilities Preliminarily Allocated to Purchase Price	The major classes of assets and liabilities to which the Company has allocated the purchase price were as follows (in thousands): Accounts receivable $ 410 Inventory – equipment 498 Property, plant and equipment 1,315 Intangible assets 1,800 Goodwill 1,861 Other assets 8 Accounts payable and accrued liabilities ( 274 ) Purchase price $ 5,618
Unaudited Pro Forma Information	Year Ended December 31, 2021 Pro forma revenues $ 29,788 Pro forma net income $ 3,285 Pro forma net income per share - basic $ 0.09 Pro forma net income per share - diluted $ 0.09

Notes Receivable, Net (Tables)

Notes Receivable, Net (Tables)	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Schedule of Company's Lending Activity	The table below shows the Company’s lending activity: 2022 2021 Notes receivable, beginning of year $ 4,172 $ 2,079 Investment in notes receivable 8,435 8,039 Transfer of notes — ( 1,961 ) Principal repayments ( 3,446 ) ( 3,985 ) Notes receivable, end of year 9,161 4,172 Deferred financing fees and costs, net ( 411 ) ( 134 ) Notes receivable, net, end of year $ 8,750 $ 4,038

Equity Method Investments (Tabl

Equity Method Investments (Tables)	12 Months Ended
	Dec. 31, 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 (in thousands): Year Ended December 31, 2022 2021 Revenues: CPFH LLC $ 31,072 $ 473 KNFH LLC 22,183 — DHC8 LLC — — HGC Funding I LLC and Origination I LLC 2,665 238 Total revenues $ 55,920 $ 711 Operating (loss) income: CPFH LLC $ 15,357 $ ( 548 ) KNFH LLC 9,930 — DHC8 LLC — — HGC Funding I LLC and Origination I LLC 2,645 212 Total operating (loss) income $ 27,932 $ ( 336 )
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 (in thousands): December 31, December 31, 2022 2021 Assets: CPFH LLC — 11,789 KNFH LLC — — DHC8 LLC 8,561 — HGC Funding I LLC and Origination I LLC 53,385 10,476 Total assets $ 61,946 $ 22,265 Liabilities: CPFH LLC — 6,099 KNFH LLC 47 — DHC8 LLC 1,028 — HGC Funding I LLC and Origination I LLC 1,504 — Total liabilities $ 2,579 $ 6,099

Earnings per Share (Tables)

Earnings per Share (Tables)	12 Months Ended
	Dec. 31, 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: Year Ended December 31, Weighted Average Shares Calculation: 2022 2021 Basic weighted average shares outstanding 36,016,619 35,458,938 Treasury stock effect of common stock options and restricted stock awards 1,080,651 1,442,452 Diluted weighted average common shares outstanding 37,097,270 36,901,390

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 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): December 31, December 31, Right-of-use assets: 2022 2021 Del Mar, CA $ 336 $ 477 Hayward, CA 1,800 2,064 San Diego, CA 590 — Edwardsville, IL 50 153 Total right-of-use assets $ 2,776 $ 2,694 December 31, December 31, Lease liabilities: 2022 2021 Del Mar, CA $ 360 $ 506 Hayward, CA 1,852 2,089 San Diego, CA 605 — Edwardsville, IL 50 155 Total lease liabilities $ 2,867 $ 2,750
Lease expense	The lease expense for each location are as follows (in thousands): December 31, December 31, 2022 2021 Del Mar, CA $ 163 $ 163 Hayward, CA 361 271 San Diego, CA 48 — Edwardsville, IL 109 109 Total $ 681 $ 543
Schedule of Undiscounted Future Minimum Lease Commitments	As of December 31, 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): 2023 $ 704 2024 674 2025 546 2026 531 2027 496 Thereafter 312 Total undiscounted future minimum lease payments 3,263 Less imputed interest ( 396 ) Present value of lease liabilities $ 2,867

Property and Equipment, net (Ta

Property and Equipment, net (Tables)	12 Months Ended
	Dec. 31, 2022
Property, Plant and Equipment [Abstract]
Schedule of Property, Plant and Equipment	The following summarizes the components of the Company’s property and equipment (in thousands): December 31, 2022 December 31, 2021 Building $ 985 $ 985 Land 397 397 Furniture, fixtures and office equipment 223 97 Software and technology assets 173 84 Vehicles 11 11 1,789 1,574 Accumulated depreciation ( 218 ) ( 103 ) Property and equipment, net $ 1,571 $ 1,471

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	12 Months Ended
	Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The details of identifiable intangible assets as of December 31, 2022 and 2021 are shown below (in thousands except for lives): Original Remaining Carrying Value Carrying Value Life Life December 31, Intangible Assets December 31, Amortized Intangible Assets (years) (years) 2021 Acquired Amortization 2022 Customer Relationships (HGP) 12 — $ 30 $ — $ ( 30 ) $ — Trade Name (HGP) 14 2.0 386 — ( 129 ) 257 Trade Name (ALT) 20 18.7 639 — ( 33 ) 607 Vendor Relationship (ALT) 5 3.7 1,073 — ( 230 ) 843 Total 2,128 — ( 422 ) 1,707 Unamortized Intangible Assets Trade Name (NLEX) N/A N/A 2,437 — — 2,437 Total $ 4,565 $ — $ ( 422 ) $ 4,144 Original Remaining Carrying Value Carrying Value Life Life December 31, Intangible Assets December 31, Amortized Intangible Assets (years) (years) 2020 Acquired Amortization 2021 Customer Relationships (HGP) 12 1.0 $ 62 $ — $ ( 32 ) $ 30 Trade Name (HGP) 14 3.0 513 — ( 128 ) 386 Customer Relationships (NLEX) 7.6 — 111 — ( 110 ) — Trade Name (ALT) 20 19.7 — 650 ( 11 ) 639 Vendor Relationship (ALT) 5 4.7 — 1,150 ( 77 ) 1,073 Total 686 1,800 ( 358 ) 2,128 Unamortized Intangible Assets Trade Name (NLEX) N/A N/A 2,437 — — 2,437 Total $ 3,123 $ 1,800 $ ( 358 ) $ 4,565
Schedule of Estimated Amortization Expense, Intangible Assets	The estimated amortization expense during future years is shown below (in thousands): Year Amount 2023 $ 391 2024 391 2025 263 2026 186 2027 32 Thereafter 444 Total $ 1,707
Schedule of Goodwill	Goodwill consisted of the following at December 31, 2022 and 2021 (in thousands): Acquisition December 31, 2022 December 31, 2021 ALT $ 1,861 $ 1,861 HGP 2,041 2,041 NLEX 3,544 3,544 Total goodwill $ 7,446 $ 7,446

Accounts Receivable and Accou_2

Accounts Receivable and Accounts Payable (Tables)	12 Months Ended
	Dec. 31, 2022
Payables and Accruals [Abstract]
Schedule of Accounts Payable and Accrued Liabilities	Accounts payable and accrued liabilities consisted of the following, (in thousands): 2022 2021 Remuneration and benefits 4,660 1,904 Accrued auction and liquidation expenses 2,573 1,327 Due to Joint Venture partners 793 402 Deferred Revenue 279 407 Sales and other taxes 220 177 Accounting, auditing and tax consulting 204 184 Other 195 392 Total accounts payable and accrued liabilities $ 8,924 $ 4,793

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
Schedule of Debt	Outstanding debt is summarized as follows (in thousands): December 31, 2022 December 31, 2021 Current: Third party debt $ 3,411 $ 2,479 Non-current: Third party debt 871 1,352 Total third party debt $ 4,282 $ 3,831

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Summary of Change in Valuation Allowance	The following table summarizes the change in the valuation allowance during 2021 and 2022, (in thousands): Balance as of December 31, 2020 $ 13,097 Change during 2021 ( 855 ) Balance as of December 31, 2021 12,242 Change during 2022 ( 7,813 ) Balance as of December 31, 2022 $ 4,429
Schedule of Components of Income Tax Expense (Benefit)	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 before income tax expense for the following reasons in each of the years ended December 31, (in thousands): 2022 2021 Expected federal statutory tax expense $ 2,311 $ 628 Increase (reduction) in taxes resulting from: State income taxes 470 43 Non-deductible expenses (permanent differences) ( 179 ) ( 707 ) Change in valuation allowance ( 7,813 ) ( 855 ) Other 725 830 Income tax benefit $ ( 4,486 ) $ ( 61 )
Schedule of Deferred Tax Assets and Liabilities	The components of the net deferred tax assets as of December 31, 2022 and 2021 are as follows in (thousands): 2022 2021 Deferred tax assets: Net operating loss carry forwards $ 14,097 $ 16,824 Stock based compensation 317 1,095 Operating lease liabilities 742 719 Other 280 262 Total gross deferred tax assets 15,436 18,900 Deferred tax liabilities: Trade names ( 686 ) ( 734 ) Customer relationships ( 27 ) ( 7 ) Equity method investments — ( 479 ) Operating lease right-of-use assets ( 718 ) ( 704 ) Other ( 127 ) ( 246 ) Total gross deferred tax liabilities ( 1,558 ) ( 2,170 ) Total deferred tax assets 13,878 16,730 Less: valuation allowance ( 4,429 ) ( 12,242 ) Deferred tax assets, net of valuation allowance $ 9,449 $ 4,488 The Inflation Reduction Act (“IRA”) was enacted on August 16, 2022. The company does not expect the IRA will have a material impact to the Company’s financial statements when it becomes effective for the tax years after December 31, 2022.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Class Of Stock [Line Items]
Schedule of Assumptions for Fair Value of Option Grant	In connection with the stock option grants during 2022 and 2021, the fair value of each option grant was estimated on the date of the grant using the Black-Scholes option pricing model with the following assumptions: 2022 2021 Risk-free interest rate 2 % - 3 % 0 % - 1 % Expected life (years) 6 6.6 Expected volatility 70 % 80 % Expected dividend yield Zero Zero
Schedule of Changes in Common Stock Options	The following summarizes the changes in common stock options: 2022 2021 Options Weighted Options Weighted Outstanding at beginning of year 2,193,288 $ 1.23 3,516,225 $ 0.63 Granted 279,500 $ 1.62 722,500 $ 2.28 Exercised ( 339,125 ) $ 0.50 ( 1,895,437 ) $ 0.48 Forfeited ( 106,313 ) $ 1.79 ( 150,000 ) $ 1.61 Outstanding at end of year 2,027,350 $ 1.38 2,193,288 $ 1.23 Options exercisable at year end 1,023,975 $ 0.97 978,350 $ 0.60 Weighted-average fair value of options granted $ 1.62 $ 1.59
Schedule of Information about All Stock Options Outstanding	The following table summarizes information about all stock options outstanding as of December 31, 2022: Exercise price Options Weighted (years) Weighted Number Weighted Weighted $ 0.40 to $ 0.53 503,100 4.4 $ 0.45 495,600 4.3 $ 0.45 $ 0.70 to $ 0.95 354,875 6.8 $ 0.79 240,125 6.8 $ 0.79 $ 1.37 to $ 1.90 877,500 8.7 $ 1.66 196,375 8.2 $ 1.63 $ 2.77 to $ 3.33 291,875 8.4 $ 2.85 91,875 8.3 $ 2.84 2,027,350 1,023,975
Other Options Issued [Member]
Class Of Stock [Line Items]
Schedule of Stock Options and Other Stock Options Issued	Other Options 2022 2021 Options outstanding, beginning of year 404,375 344,375 Options issued — 150,000 Options exercised ( 21,250 ) ( 22,500 ) Options forfeited — ( 67,500 ) Options outstanding, end of year 383,125 404,375 The outstanding options vest over four years at exercise prices ranging from $0.70 to $1.78 per share.
2010 Non-Qualified Stock Option Plan [Member]
Class Of Stock [Line Items]
Schedule of Stock Options and Other Stock Options Issued	2010 Plan 2022 2021 Options outstanding, beginning of year 331,250 1,100,000 Options granted 100,000 50,000 Options exercised ( 147,500 ) ( 793,750 ) Options forfeited ( 40,000 ) ( 25,000 ) Options outstanding, end of year 243,750 331,250
2016 Stock Option Plan [Member]
Class Of Stock [Line Items]
Schedule of Stock Options and Other Stock Options Issued	2016 Plan 2022 2021 Options outstanding, beginning of year 1,457,663 2,071,850 Options granted 35,000 522,500 Options exercised ( 170,375 ) ( 1,079,187 ) Options forfeited ( 66,313 ) ( 57,500 ) Options outstanding, end of year 1,255,975 1,457,663
2022 Stock Option Plan [Member]
Class Of Stock [Line Items]
Schedule of Stock Options and Other Stock Options Issued	2022 Plan 2022 Options outstanding, beginning of year — Options granted 144,500 Options outstanding, end of year 144,500

Segment Information (Tables)

Segment Information (Tables)	12 Months Ended
	Dec. 31, 2022
Segment Reporting Information, Additional Information [Abstract]
Schedule of Financial Information for the Company's Reportable Segments	The following table sets forth operating income information for the Company's reportable segments (in thousands): Year Ended December 31, 2022 2021 Industrial Assets Division: Auction and Liquidation $ 7,979 $ 3,467 Refurbishment & Resale 1,187 ( 41 ) Total divisional operating income 9,166 3,426 Financial Assets Division: Brokerage 4,709 1,731 Specialty Lending 1,213 293 Total divisional operating income 5,922 2,024 Corporate & other operating loss ( 3,968 ) ( 2,436 ) Consolidated operating income $ 11,120 $ 3,014

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Aug. 31, 2021 USD ($)	Dec. 31, 2022 USD ($) Segment	Dec. 31, 2021 USD ($)	Jan. 01, 2023 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Allowance for credit losses related to notes receivable outstanding		$ 0
Accounts receivable		600	$ 600
Intangible assets impairment charges		0	0
Goodwill impairment charges		0
Deferred tax assets		9,449	4,488
Selling, General and Administrative Expenses [Member]
Summary Of Significant Accounting Policies [Line Items]
Advertising and promotion expense		$ 400	$ 400
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Percentage of service revenue that is recognized over a period of time against total revenue		80%
Adjustment to retained earnings				$ 400
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Adjustment to retained earnings				$ 300
American Laboratory Trading [Member]
Summary Of Significant Accounting Policies [Line Items]
Stock Issued During Period, Value, Acquisitions	$ 5,600
ASC 606 [Member]
Summary Of Significant Accounting Policies [Line Items]
Deferred revenue		$ 400
Number of reporting segment | Segment		3
ASC 606 [Member] | 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%

Business Combinations (Narrativ

Business Combinations (Narrative) (Details) - USD ($) $ in Thousands		12 Months Ended
	Aug. 23, 2021	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Intangible Assets		$ 4,144	$ 4,565
Real Estate Purchase Agreement [Member]
Business Acquisition [Line Items]
Purchase price of the Property	$ 1,300
ALT [Member]
Business Acquisition [Line Items]
Purchase price paid	5,600
Businesses acquisition, payment by cash	2,300
Business acquisition, as ALT note	2,000
Purchase price of the Property	$ 1,300
Acquisition related costs			$ 200
Intangible Assets		1,800
ALT [Member] | Vendor Relationships [Member]
Business Acquisition [Line Items]
Intangible Assets		$ 1,200
Intangible Assets, Amortization Period		5 years	3 years 8 months 12 days	4 years 8 months 12 days
ALT [Member] | Trade Name [Member]
Business Acquisition [Line Items]
Intangible Assets		$ 700
Intangible Assets, Amortization Period		20 years

Business Combinations - Schedul

Business Combinations - Schedule of Major Classes of Assets and Liabilities Preliminarily Allocated to Purchase Price (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Accounts receivable	$ 600	$ 600
Goodwill	7,446	7,446
ALT [Member]
Business Acquisition [Line Items]
Accounts receivable	410
Inventory - equipment	498
Property, plant and equipment	1,315
Intangible assets	1,800
Goodwill	1,861	$ 1,861
Other assets	8
Accounts payable and accrued liabilities	(274)
Purchase price	$ 5,618

Business Combinations - Unaudit

Business Combinations - Unaudited Pro Forma Financial Information (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) $ / shares
Business Combinations [Abstract]
Pro forma revenues | $	$ 29,788
Pro forma net income | $	$ 3,285
Pro forma net income per share - basic | $ / shares	$ 0.09
Pro forma net income per share - diluted | $ / shares	$ 0.09

Notes Receivable, Net - Narrati

Notes Receivable, Net - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Outstanding principal balance	$ 9,161,000	$ 4,172,000	$ 2,079,000
Outstanding principal balance	8,800,000
Additional investment in notes receivable	8,400
Principal payments received	3,400,000
Deferred fees and costs	400,000
Allowance for credit losses	$ 0	$ 0

Notes Receivable, Net - Schedul

Notes Receivable, Net - Schedule of Company's Lending Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Accounts Notes And Loans Receivable [Line Items]
Notes receivable , beginning of year	$ 4,172	$ 2,079
Investment in notes receivable	8,435	8,039
Transfer of notes		(1,961)
Principal repayments	(3,446)	(3,985)
Notes receivable, end of year	9,161	4,172
Deferred financing fees and costs, net	(411)	(134)
Notes receivable, net, end of year	$ 8,750	$ 4,038

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]
Lease payments term	6 years
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)	Dec. 31, 2022	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%
DHC8 LLC [member]
Schedule Of Equity Method Investments [Line Items]
Equity method investment, ownership percentage	13.33%

Equity Method Investments - Sch

Equity Method Investments - Schedule of Joint Venture Revenues and Net Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Equity Method Investments [Line Items]
Net operating income (loss)	$ 11,120	$ 3,014
Net income	15,493	3,053
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues	55,920	711
Net operating income (loss)	27,932	(336)
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | CPFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues	31,072	473
Net operating income (loss)	15,357	(548)
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Revenues	22,183	0
Net operating income (loss)	9,930	0
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | DHC8 LLC [member]
Schedule Of Equity Method Investments [Line Items]
Revenues	0	0
Net operating income (loss)	0	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	2,665	238
Net operating income (loss)	$ 2,645	$ 212

Equity Method Investments - S_2

Equity Method Investments - Schedule of the Components of Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Schedule Of Equity Method Investments [Line Items]
Assets	$ 67,560	$ 50,464
Liabilities	19,261	17,825
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member]
Schedule Of Equity Method Investments [Line Items]
Assets	61,946	22,265
Liabilities	2,579	6,099
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | CPFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Assets		11,789
Liabilities		6,099
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | KNFH LLC [Member]
Schedule Of Equity Method Investments [Line Items]
Assets
Liabilities	47
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | DHC8 LLC [member]
Schedule Of Equity Method Investments [Line Items]
Assets	1,028
Liabilities	8,561
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	53,385	10,476
Liabilities	$ 1,504

Earnings per Share (Narrative)

Earnings per Share (Narrative) (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Convertible Preferred Stock, Shares Issuable upon Conversion	the Company’s shares of Series N preferred stock, 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	120
Anti-dilutive common shares	800,000	300,000

Earnings per Share - Schedule o

Earnings per Share - Schedule of Calculation of the Shares Used in Computing Diluted EPS (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Earnings Per Share [Abstract]
Basic weighted average shares outstanding	36,016,619	35,458,938
Treasury stock effect of common stock options and restricted stock awards	1,080,651	1,442,452
Diluted weighted average common shares outstanding	37,097,270	36,901,390

Leases (Narrative) (Details)

Leases (Narrative) (Details) $ in Thousands		12 Months Ended
	Aug. 12, 2022 USD ($) ft²	Dec. 31, 2022 USD ($) Location	Dec. 31, 2021 USD ($)	Sep. 01, 2022	Apr. 01, 2021	Jan. 01, 2019
Lessee Lease Description [Line Items]
Number of locations | Location		4
Lessee operating lease, incremental borrowing rate				5.50%	4.95%	5.25%
Weighted average remaining lease term		5 years
Weighted average discount rate		5.10%
Lease expense		$ 681	$ 543
Liberty Industrial Park, LLC [Member]
Lessee Lease Description [Line Items]
Area of lease | ft²	6,627
Initial monthly base rent	$ 11,266
Liberty Industrial Park, LLC [Member] | Maximum [Member]
Lessee Lease Description [Line Items]
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	Dec. 31, 2022	Dec. 31, 2021
Lessee Lease Description [Line Items]
Right-of-use asset	$ 2,776	$ 2,694
Lease liabilities	2,867	2,750
Del Mar, CA [Member]
Lessee Lease Description [Line Items]
Right-of-use asset	336	477
Lease liabilities	360	506
Hayward F G H K Industrial L L C [Member]
Lessee Lease Description [Line Items]
Right-of-use asset	1,800	2,064
Lease liabilities	1,852	2,089
Edwardsville, IL [Member]
Lessee Lease Description [Line Items]
Right-of-use asset	50	153
Lease liabilities	50	$ 155
San Diego Ca [Member]
Lessee Lease Description [Line Items]
Right-of-use asset	590
Lease liabilities	$ 605

Lease - Summery of Lease Expens

Lease - Summery of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Lessor, Lease, Description [Line Items]
Lease expense	$ 681	$ 543
Del Mar, CA [Member]
Lessor, Lease, Description [Line Items]
Lease expense	163	163
Hayward, CA [Member]
Lessor, Lease, Description [Line Items]
Lease expense	361	271
San Diego Ca [Member]
Lessor, Lease, Description [Line Items]
Lease expense	48
Edwardsville, IL [Member]
Lessor, Lease, Description [Line Items]
Lease expense	$ 109	$ 109

Leases - Schedule of Undiscount

Leases - Schedule of Undiscounted Future Minimum Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Lessee, Operating Lease, Liability, to be Paid [Abstract]
2023	$ 704
2024	674
2025	546
2026	531
2027	496
Thereafter	312
Total undiscounted future minimum lease payments	3,263
Less: imputed interest	(396)
Present value of lease liabilities	$ 2,867	$ 2,750

Property and Equipment, net (Na

Property and Equipment, net (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Depreciation expense	$ 0.1	$ 0.1
Building
Property Plant And Equipment [Line Items]
Estimated service life	25 years
Furniture, fixtures and office equipment [Member]
Property Plant And Equipment [Line Items]
Estimated service life	5 years
Software and technology assets [Member]
Property Plant And Equipment [Line Items]
Estimated service life	3 years

Property and Equipment, net - S

Property and Equipment, net - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,789	$ 1,574
Accumulated depreciation	(218)	(103)
Property, plant and equipment, net	1,571	1,471
Building
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	985	985
Land
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	397	397
Furniture, fixtures and office equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	223	97
Software and technology assets [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	173	84
Vehicle
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 11	$ 11

Schedule of Intangible Assets (

Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Total net amortized intangible assets	$ 1,707	$ 2,128	$ 686
Intangible assets acquired	0	1,800
Amortization	(422)	(358)
Intangible assets acquired	0	1,800
Total net intangible assets	4,144	4,565	3,123
NLEX [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Unamortized intangible assets	2,437	$ 2,437	$ 2,437
Intangible assets acquired	0
ALT [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Finite-Lived intangible asset, useful life		20 years	20 years
Finite-Lived intangible assets, remaining amortization period		18 years 8 months 12 days	19 years 8 months 12 days
Total net amortized intangible assets	607	$ 639
Intangible assets acquired	0	650
Amortization	(33)	$ (11)
Customer Relationships [Member] | HGP [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Finite-Lived intangible asset, useful life		12 years	12 years
Finite-Lived intangible assets, remaining amortization period			1 year
Total net amortized intangible assets	0	$ 30	$ 62
Intangible assets acquired	0
Amortization	(30)	(32)
Customer Relationships [Member] | NLEX [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Total net amortized intangible assets			$ 111
Customer Relationships [Member] | NLEX [Member] | Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Finite-Lived intangible asset, useful life			7 years 7 months 6 days
Amortization		$ (110)
HGP Trade Name [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Finite-Lived intangible asset, useful life		14 years	14 years
Finite-Lived intangible assets, remaining amortization period		2 years	3 years
Total net amortized intangible assets	257	$ 386	$ 513
Intangible assets acquired	0
Amortization	$ (129)	$ (128)
Vendor Relationships [Member] | ALT [Member]
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items]
Finite-Lived intangible asset, useful life		5 years	5 years
Finite-Lived intangible assets, remaining amortization period	5 years	3 years 8 months 12 days	4 years 8 months 12 days
Total net amortized intangible assets	$ 843	$ 1,073
Intangible assets acquired	0	1,150
Amortization	$ (230)	$ (77)

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Amortization expense, intangible assets	$ 422	$ 358
Residual value intangible assets	0
Goodwill	7,446	7,446
Impairment of goodwill	0
HGP [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	2,041	2,041
NLEX [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	3,544	3,544
ALT [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 1,861	$ 1,861

Intangible Assets- Schedule of

Intangible Assets- Schedule of Estimated Amortization Expense (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2023	$ 391
2024	391
2025	263
2026	186
2027	32
Thereafter	444
Total	$ 1,707

Intangible Assets- Schedule o_2

Intangible Assets- Schedule of Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 7,446	$ 7,446
HGP [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	2,041	2,041
NLEX [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	3,544	3,544
ALT [Member]
Finite Lived Intangible Assets [Line Items]
Goodwill	$ 1,861	$ 1,861

Accounts Receivable and Accou_3

Accounts Receivable and Accounts Payable (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounts Receivable And Accounts Payable [Abstract]
Allowance for doubtful accounts	$ 100	$ 122

Schedule of Accounts Payable an

Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Payables and Accruals [Abstract]
Remuneration and benefits	$ 4,660	$ 1,904
Accrued auction and liquidation expenses	2,573	1,327
Due to Joint Venture partners	793	402
Deferred Revenue	279	407
Sales and other taxes	220	177
Accounting, auditing and tax consulting	204	184
Other	195	392
Total accounts payable and accrued liabilities	$ 8,924	$ 4,793

Schedule of Debt (Details)

Schedule of Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current
Third party debt	$ 3,411	$ 2,479
Non-current:
Third party debt	871	1,352
Total third party debt	$ 4,282	$ 3,831

Debt (Narrative) (Details)

Debt (Narrative) (Details) - USD ($)				12 Months Ended
	Aug. 22, 2022	Aug. 23, 2021	May 05, 2021	Dec. 31, 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				$ 1,400,000
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			$ 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) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2019	Dec. 31, 2014
Income Taxes [Line Items]
Deferred tax assets, net of valuation allowance	$ 9,449	$ 4,488		$ 0
Change during the period	(7,813)	$ (855)
Additional deferred taxes realizable amount	7,100
Operating loss carryforwards	$ 64,900
Operating Loss Carryforwards, Expiration Date	These net operating loss carry forwards begin to expire in 2024.
Open Tax Year		2021	2019
Reduction in Deferred Tax Assets	$ 4,400
Total Unrecognized Tax Benefits	4,400
Unrestricted [Member]
Income Taxes [Line Items]
Operating loss carryforwards	61,600
Restricted [Member]
Income Taxes [Line Items]
Operating loss carryforwards	$ 3,300

Summary of Change in Valuation

Summary of Change in Valuation Allowance (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Beginning balance	$ 12,242	$ 13,097
Change during the period	(7,813)	(855)
Ending balance	$ 4,429	$ 12,242

Schedule of Components of Incom

Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Expected federal statutory tax expense	$ 2,311	$ 628
Increase (reduction) in taxes resulting from:
State income taxes	470	43
Non-deductible expenses (permanent differences)	(179)	(707)
Change in valuation allowance	(7,813)	(855)
Other	725	830
Income tax benefit	$ (4,486)	$ (61)

Schedule of Deferred Tax Assets

Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2014
Deferred tax assets:
Net operating loss carry forwards	$ 14,097	$ 16,824
Stock based compensation	317	1,095
Operating Lease Liabilities	742	719
Other	280	262
Gross deferred tax assets	15,436	18,900
Deferred tax liabilities:
Equity method investments	0	(479)
Operating leaase right-of-use assets	(718)	(704)
Other	(127)	(246)
Gross deferred tax liabilites	(1,558)	(2,170)
Net deferred tax assets	13,878	16,730
Less: valuation allowance	(4,429)	(12,242)	$ (13,097)
Deferred tax assets, net of valuation allowance	9,449	4,488		$ 0
Trade Name [Member]
Deferred tax liabilities:
Trade names and customer relationships	(686)	(734)
Customer Relationships [Member]
Deferred tax liabilities:
Trade names and customer relationships	$ (27)	$ (7)

Related Party Transactions (Nar

Related Party Transactions (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Senior Officer of NLEX [Member] | Lease Amounts [Member] | Edwardsville, IL [Member] | Selling, General and Administrative Expenses [Member]
Related Party Transaction [Line Items]
Payment to related party	$ 0.1	$ 0.1

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($)						12 Months Ended
	Aug. 03, 2022	Apr. 08, 2021	Jun. 01, 2018	Dec. 31, 2016	Dec. 31, 2010	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Class Of Stock [Line Items]
Common stock, shares authorized						300,000,000	300,000,000
Common stock, par value						$ 0.01	$ 0.01
Preferred stock, shares authorized						10,000,000	10,000,000
Preferred stock, par value						$ 10	$ 10
Options, Exercised (in shares)						339,125	1,895,437
Convertible Preferred Stock, Shares Issuable upon Conversion						the Company’s shares of Series N preferred stock, 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 shares, conversion price per share						$ 1,000
Series N preferred stock, each convertible to common shares						40	120
Series N preferred stockholders to liquidation preference, conversion price per share						$ 1,000	$ 1,000
Conversion of series N preferred stock to shares of common stock						0
Number of Shares Authorized for Stock-Based Compensation Plan						4
Term of Stock-Based Compensation Plan						6 years	6 years 7 months 6 days
Options to purchase, Granted (in shares)		25,000				279,500	722,500
Exercise Price, Outstanding						$ 1.38	$ 1.23	$ 0.63
Exercise price, options granted in period						$ 1.62	$ 2.28
Number of Shares Authorized for Stock-Based Compensation Plan						4
Stock-based compensation expense						$ 540,000	$ 408,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares						1,003,375	1,214,938
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value						$ 1.80	$ 0.96
Unrecognized stock-based compensation						$ 1,000,000
Unrecognized stock-based compensation, Period for recognition						2 years 7 months 6 days
Fair Value of Options Vested in Period						$ 400,000	$ 200,000
Aggregate intrinsic value of exercisable options						$ 1,500,000	$ 1,300,000
Other Options Issued [Member]
Class Of Stock [Line Items]
Options, Exercised (in shares)						21,250	22,500
Options to purchase, Granted (in shares)							150,000	90,000
Exercise price, options granted in period							$ 1.78	$ 1.41
Restricted Stock [Member]
Class Of Stock [Line Items]
Options to purchase, Granted (in shares)	40,000
Stock-based compensation expense						$ 124,600
Shares restriction term of service		2 years
Weighted average grant date fair value						$ 1.58
Unrecognized stock-based compensation expense						$ 44,000
Weighted average vesting shares	75,000
Annual Compensation Plan [Member] | Stock Options [Member]
Class Of Stock [Line Items]
Tax benefit recognized						500,000	$ 1,000,000
Annual Compensation Plan [Member] | Stock Options [Member] | Selling, General and Administrative Expenses [Member]
Class Of Stock [Line Items]
Stock-based compensation expense						$ 400,000	$ 400,000
2010 Non-Qualified Stock Option Plan [Member]
Class Of Stock [Line Items]
Options, Exercised (in shares)						147,500	793,750
Number of Shares Authorized for Stock-Based Compensation Plan					1,250,000
Options to purchase, Granted (in shares)						100,000	50,000
Stock Option Award Vesting Period					4 years
Number of Shares Authorized for Stock-Based Compensation Plan					1,250,000
2010 Non-Qualified Stock Option Plan [Member] | Minimum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding					$ 0.40
2010 Non-Qualified Stock Option Plan [Member] | Maximum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding					$ 2.77
2010 Non-Qualified Stock Option Plan [Member] | Directors [Member]
Class Of Stock [Line Items]
Options to purchase, Granted (in shares)						100,000	50,000
2016 Stock Option Plan [Member]
Class Of Stock [Line Items]
Options, Exercised (in shares)						170,375	1,079,187
Number of Shares Authorized for Stock-Based Compensation Plan				3,150,000
Options to purchase, Granted (in shares)						35,000	522,500
Stock Option Award Vesting Period				4 years
Number of Shares Authorized for Stock-Based Compensation Plan				3,150,000
2016 Stock Option Plan [Member] | Minimum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding				$ 0.45
2016 Stock Option Plan [Member] | Maximum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding				$ 3.33
2022 Stock Option Plan [Member]
Class Of Stock [Line Items]
Number of Shares Authorized for Stock-Based Compensation Plan						3,500,000
Options to purchase, Granted (in shares)						144,500
Stock Option Award Vesting Period						4 years
Number of Shares Authorized for Stock-Based Compensation Plan						3,500,000
Stock Option Issued under 2022 Heritage Global Inc. Equity Incentive Plan						144,500
2022 Stock Option Plan [Member] | Minimum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding						$ 1.60
2022 Stock Option Plan [Member] | Maximum [Member]
Class Of Stock [Line Items]
Exercise Price, Outstanding						$ 1.87
2022 Stock Option Plan [Member] | Directors [Member] | Restricted Stock [Member]
Class Of Stock [Line Items]
Options to purchase, Granted (in shares)	115,000
Common Stock [Member]
Class Of Stock [Line Items]
Options, Exercised (in shares)						242,475	1,268,399
Issuance of restricted common stock (in shares)		25,000
Series N preferred stockholders to liquidation preference, conversion price per share						$ 1,000
Preferred Stock [Member]
Class Of Stock [Line Items]
Convertible Preferred Stock, Shares Issuable upon Conversion						Each share of Series N preferred stock has a voting entitlement equal to 40 common shares, votes with the common stock on an as-converted basis and is senior to all other preferred stock of the Company. Dividends, if any, will be paid on an as-converted basis equal to common stock dividends. The conversion value of each share of Series N preferred stock is $1,000, and each share is convertible to 40 common shares at the rate of $25.00 per common share. The holders of shares of Series N preferred stock are entitled to liquidation preference over common stockholders equivalent to $1,000 per share.
Share price						$ 25
David Ludwig And Tom Ludwig [Member]
Class Of Stock [Line Items]
Issuance of restricted common stock (in shares)			600,000
Stock-based compensation expense						$ 51,600
Unrecognized stock-based compensation						$ 21,500
Weighted average grant date fair value						$ 0.43

Stockholders' Equity - Schedule

Stockholders' Equity - Schedule of 2010 Non-Qualified Stock Option Plan (Details) - shares		12 Months Ended
	Apr. 08, 2021	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year		2,193,288	3,516,225
Restricted Stock Options granted with a vesting term	25,000	279,500	722,500
Options exercised		(339,125)	(1,895,437)
Options forfeited		(106,313)	(150,000)
Options outstanding, end of year		2,027,350	2,193,288
2010 Non-Qualified Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year		331,250	1,100,000
Restricted Stock Options granted with a vesting term		100,000	50,000
Options exercised		(147,500)	(793,750)
Options forfeited		(40,000)	(25,000)
Options outstanding, end of year		243,750	331,250

Stockholders' Equity - Schedu_2

Stockholders' Equity - Schedule of Other Stock Options Issued (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year	2,193,288	3,516,225
Options exercised	(339,125)	(1,895,437)
Options forfeited	(106,313)	(150,000)
Options outstanding, end of year	2,027,350	2,193,288
Other Options Issued [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year	404,375	344,375
Options issued	0	150,000
Options exercised	(21,250)	(22,500)
Options forfeited	0	(67,500)
Options outstanding, end of year	383,125	404,375

Stockholders' Equity - Schedu_3

Stockholders' Equity - Schedule of Heritage Global Inc. 2016 Stock Option Plan (Details) - shares		12 Months Ended
	Apr. 08, 2021	Dec. 31, 2022	Dec. 31, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year		2,193,288	3,516,225
Restricted Stock Options granted with a vesting term	25,000	279,500	722,500
Options exercised		(339,125)	(1,895,437)
Options forfeited		(106,313)	(150,000)
Options outstanding, end of year		2,027,350	2,193,288
2016 Stock Option Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding, beginning of year		1,457,663	2,071,850
Restricted Stock Options granted with a vesting term		35,000	522,500
Options exercised		(170,375)	(1,079,187)
Options forfeited		(66,313)	(57,500)
Options outstanding, end of year		1,255,975	1,457,663

Stockholders' Equity - Schedu_4

Stockholders' Equity - Schedule of Heritage Global Inc. 2022 Stock Option Plan (Details) - shares		12 Months Ended
	Apr. 08, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding, beginning of year		2,193,288	3,516,225
Restricted Stock Options granted with a vesting term	25,000	279,500	722,500
Options outstanding, end of year		2,027,350	2,193,288
2022 Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Options outstanding, beginning of year		0
Restricted Stock Options granted with a vesting term		144,500
Options outstanding, end of year		144,500	0

Stockholders' Equity - Schedu_5

Stockholders' Equity - Schedule of Assumptions for Fair Value of Option Grant (Details)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate (Minimum)	2%	0%
Risk-free interest rate (Maximum)	3%	1%
Expected life (years)	6 years	6 years 7 months 6 days
Expected volatility	70%	80%
Expected dividend yield	0%	0%

Stockholders' Equity - Schedu_6

Stockholders' Equity - Schedule of Changes in Common Stock Options (Details) - $ / shares		12 Months Ended
	Apr. 08, 2021	Dec. 31, 2022	Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]
Options outstanding, beginning of year		2,193,288	3,516,225
Restricted Stock Options granted with a vesting term	25,000	279,500	722,500
Options, Exercised		(339,125)	(1,895,437)
Options, Forfeited		(106,313)	(150,000)
Options outstanding, end of year		2,027,350	2,193,288
Options exercisable at year end		1,023,975	978,350
Weighted Average Exercise Price, Outstanding at beginning of year		$ 1.23	$ 0.63
Weighted Average Exercise Price, Granted		1.62	2.28
Weighted Average Exercise Price, Exercised		0.50	0.48
Weighted Average Exercise Price, Forfeited		1.79	1.61
Weighted Average Exercise Price, Outstanding at end of year		1.38	1.23
Weighted Average Exercise Price, Options exercisable at end of year		0.97	0.60
Weighted-average fair value of options granted during the year		$ 1.62	$ 1.59

Stockholders' Equity - Schedu_7

Stockholders' Equity - Schedule of Information about All Stock Options Outstanding (Details) - $ / shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding	2,027,350	2,193,288	3,516,225
Options Outstanding, Weighted Average Exercise Price	$ 1.38	$ 1.23	$ 0.63
Number Exercisable	1,023,975	978,350
Number Exercisable, Weighted Average Exercise Price	$ 0.97	$ 0.60
Exercise Price $0.40 to $0.53 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding	503,100
Options Outstanding, Weighted Average Remaining Life (years)	4 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 0.45
Number Exercisable	495,600
Number Exercisable, Weighted Average Remaining Life (years)	4 years 4 months 24 days
Number Exercisable, Weighted Average Exercise Price	$ 0.45
Exercise Price $0.70 to $0.95 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding	354,875
Options Outstanding, Weighted Average Remaining Life (years)	6 years 9 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 0.79
Number Exercisable	240,125
Number Exercisable, Weighted Average Remaining Life (years)	6 years 9 months 18 days
Number Exercisable, Weighted Average Exercise Price	$ 0.79
Exercise Price $1.37 to $1.90 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding	877,500
Options Outstanding, Weighted Average Remaining Life (years)	8 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price	$ 1.66
Number Exercisable	196,375
Number Exercisable, Weighted Average Remaining Life (years)	8 years 8 months 12 days
Number Exercisable, Weighted Average Exercise Price	$ 1.63
Exercise Price $2.77 to $3.33 [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options Outstanding	291,875
Options Outstanding, Weighted Average Remaining Life (years)	8 years 3 months 18 days
Options Outstanding, Weighted Average Exercise Price	$ 2.85
Number Exercisable	91,875
Number Exercisable, Weighted Average Remaining Life (years)	8 years 4 months 24 days
Number Exercisable, Weighted Average Exercise Price	$ 2.84

Segment Information - Schedule

Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net operating income (loss)	$ 11,120	$ 3,014
Industrial Assets Division [Member]
Net operating income (loss)	9,166	3,426
Auction and Liquidation
Net operating income (loss)	7,979	3,467
Refurbishment & Resale
Net operating income (loss)	1,187	(41)
Financial Assets Division [Member]
Net operating income (loss)	5,922	2,024
Brokerage
Net operating income (loss)	4,709	1,731
Specialty Lending
Net operating income (loss)	1,213	293
Corporate and Other [Member]
Net operating income (loss)	(3,968)	(2,436)
Consolidated [Member]
Net operating income (loss)	$ 11,120	$ 3,014